- NEWSDAY.CO.TT - A la Une - 17/Aug 03:05

Debt and doom on Tobago estates

DR RITA PEMBERTON From the start of the 19th century, it became clear that Tobago could not be considered a successful plantation colony. Except for plantation owners who remained expectant for positive change, hopes faded for the economic improvement of the island after the instability caused by the 12-year French occupation between 1781 and 1793 and the additional French capture in 1802, which resulted in serious disruption to the island’s plantation operations from which some never recovered. The problem occurred because estates were indebted to mortgagee and suppliers in England and Europe from whom provisions were obtained. The French administration prohibited any financial transactions between residents of Tobago and entities in the United Kingdom; trade was redirected to French operators, and heavy taxes were imposed on plantations in Tobago. Since it was clear that France had not given up ambitions of repossessing Tobago, the prevailing state of uncertainty over possession of the island put a damper on investor interest and stimulated sales of estates as owners sought to cut their losses and get rid of non-profitable enterprises. The problem was complicated by the fact that estates’ organisation made them dependent on suppliers for various items, and many estates were indebted to the web of companies that provided essential provisioning and supplies. [caption id="attachment_1172580" align="aligncenter" width="255"] Dr Rita Pemberton -[/caption] There were three levels of estate indebtedness; to the person, company or companies which financed the purchase of the estate: those persons or companies which provided essential supplies on credit to the estates (these could be local as well as foreign-based); and to those who provided professional services on the estates. The growing number of advertisements for the sales of estates alarmed the island’s administration both because of the numbers and the extent of the practice of transactions being made without arrangements to settle the outstanding debts, which was particularly disadvantageous to the local suppliers of services. One notable case occurred when Lucy Campbell, widow of James Campbell, who owned Argyle and Lucy Vale estates, took her matter to court. At the death of her husband, his creditors, JA and DH Rucker, took over the estates and appointed attorneys to administer them. She challenged this action, claiming the estate generated enough money to cover its expenses, while the creditors asserted that since 1805 the estates earning were only able to cover the external debts leaving local suppliers unpaid. The issue was not lost in the debate over enslavement, when the pro-slavery argument articulated by the island’s pro-slavery governor was that debt-ridden estates would have a negative impact on the enslaved labour force which was essential for estate operations. Profitable estates would support a happy labour force, so the onus was on the authorities to provide more support for the indebted planters. So, it was planter debt and the unpredictability of estate expenses that caused the problems that were encountered by the enslaved population and not the desire of plantation owners. This argument was dismissed by the anti-slavery group. This case stimulated prompt action by Governor Sir William Young, who decided to take action to control the activity out of concern for the service providers on the island. It was noted that some plantations were sold without any provision for settling outstanding debts, and the new owners refused to pay debts they had not incurred. It was a frequent occurrence that people such as attorneys, managers, overseers, medical practitioners, bookkeepers and tradesmen had to endure delayed payments or in some instances were not paid at all. In addition, there were also cases in which merchant suppliers in Europe were owed significant sums of money. Under a law of December 3, 1811, “An act for more effectively securing the payment of certain debts contracted for the use and Benefit of the Estates and Plantations of the island and its Dependencies against the effect of sales or disposal thereof or Change of property therein or death of the Proprietor,” all supplies ordered and furnished to estates from Europe and all salaries charged for 12 months preceding the sale or change of ownership of the estate would have first preference (referred to as a preferable lien) to any mortgage, debt of record or encumbrance whatsoever against the property. Claims for service provided 12 months before the death or change of ownership were to be made within 12 months of the change. This law established a pattern that was followed by similar laws in the rest of the Caribbean by the mid-1920s – Grenada, Jamaica, Antigua, St Kitts, Nevis, Tortola, Trinidad and Demerara. After roughly 11 years of the operation of the 1811 law in Tobago, a need was felt for tightening it because the situation was still unsatisfactory. The old law was repealed, and a new law instituted in 1822. This law stressed the importance to proprietary mortgagors and others interested in estates that every security would be afforded to those who might have been induced to furnish the supplies needed for the support of the negroes, stock and general cultivation, and that such might be furnished for the space of 12 months or salaries chargeable thereof during the period without restricting such securities in the event of a change in the ownership of such properties. All stores from Europe and supplies furnished in the colony and salaries of any description due from any estate in the island were to be a preferable lien against such property to any mortgage, debt of record or encumbrance, provided that those furnishing such supplies from Europe or any claims for salary made their claims within six months after the expiration of the 12-month period to take legal action to recover their costs. They were then entitled to recovery granted by the act to such creditors as in the event of a sale or change of ownership of such property. This law was passed on July 11, 1822 and proclaimed on July 22, 1822. Despite these efforts, the pace of estates becoming indebted increased across the century and the need for the law was overtaken by the increase of estate insolvency and abandonment during the second half of the 19th century.   The post Debt and doom on Tobago estates appeared first on Trinidad and Tobago Newsday.