with the proprietor, who undertook the actual settlement of new holders, the Board's direct interest in the scheme being confined to the provision of funds for the necessary works of adaptation and equipment. Twenty-one new holdings have been formed on the land embraced in the scheme, which extends to 496 acres, and the holdings vary in extent from 4 to 5 acres of enclosed land with 390 acres of common pasture. The selected applicants were given entry during the year and have been registered as landholders.

Langash Deer Forest (North Uist).-By agreement with the landlord and tenant an area of about 550 acres of this Forest was made available as from Martinmas 1926, for enlargement of the holdings of 12 existing holders in the township of Locheport.

Claigan (Skye).-A scheme was carried out during the year providing for the settlement of 14 new holders on an area of about 5400 acres on this farm, which forms part of the Macleod estate. The necessary works of adaptation and equipment on the scheme were in progress at the close of the year.

NOTE ON CULREOCH (WIGTOWNSHIRE).

In 1924 the Board, with the consent of the Secretary for Scotland, issued an Order confirming a scheme for the constitution of seven small holdings on the farm of Culreoch (Wigtownshire). The Order was of special interest in that the fair rents fixed therein covered the annual value both of the land and of the existing buildings allocated to the holdings. The competency of the Board's Order was challenged by the landlords, and a Special Case was presented for the opinion of the Court of Session. On the competency of the Order being upheld by the Court a claim for compensation was lodged by the landlords with the Scottish Land Court.

By Order dated 8th December 1926 the Court assessed the amount of compensation for damage or injury done to the landlords in consequence of and directly attributable to the constitution of new holdings on the farm at the sum of £846. 10s., with interest at 5 per cent. per annum from the term of Martinmas 1923. The Court gave effect to the Board's contention that as the annual value of the buildings was included in the fair rents no capital sum could competently be awarded in respect of them as claimed.

The amounts claimed and awarded under the various heads of the claim were :

Award.

Claim.
£5,249 17 10

Nil.

(3) Depreciation of Shoot

....

cost

of

PROGRESS OF SETTLED HOLDERS.

On the whole the progress of holders during the year has been satisfactory and the standard of cultivation has been well maintained. The recovery from the severe fall in agricultural values that occurred after the war is proving slow, and considering that most of the holders had little or no reserve of capital to fall back upon, they have come through the trying period of the last few years with credit. Many of the settlers who took entry to their holdings before the break in prices and engaged in cattle breeding and dairying had to be content with stock of inferior quality purchased from various sources, but this defect is gradually being overcome by the introduction into their herds of stock of a higher quality.

There have been exceptions to the general rule of steady progress, but, as was indicated in the Board's last Report, the percentage of unsuccessful holders is very small having regard to all the circumstances of post-war settlement. Most of the failures have been found among the ex-service holders who before settlement gave every promise of success, but from weakness of character or other causes, lacked application when settled. The holdings vacated by them were usually left in a dirty and weedy state, and it is a testimony to the general quality of applicants that others have been found ready to take over the holdings and to tackle with energy and success the problem of cleaning the land and restoring its fertility.

On holdings of a very small type suitable mainly for poultry, pigs and fruit-growing, progress has been well maintained. It has been a good year for poultry-farming, and the success of holders specialising in this line has tended to shake the general belief that poultry-keeping is an unprofitable occupation. The success of the smaller poultry holdings has attracted the attention of the tenants of larger holdings, and many of the latter are now adopting poultry-farming as a side line. This tendency deserves encouragement, since the poultry stock gives a steady income at times of the year when the holder has little of other produce for sale, and thus provides him with ready money for household expenses and other sundries.

It may be mentioned that rabbit-breeding for fur production has aroused the interest of holders on a number of schemes, but there appears to be a lack of the skill and experience necessary to initiate the industry on sound lines.

The sugar beet factory which has been established near Cupar is conveniently situated with respect to four of the Board's schemes, viz. :-Dysart and Thirdpart in Fifeshire, Castle Huntly in Perthshire, and Gagie in Forfarshire. Some of the holders are testing the possibilities of growing sugar beet in a small way and the presence of the factory will encourage the development of this crop if the results of the tests are satisfactory.

Co-operation amongst small holders is of slow growth. Where local markets are good the best and most progressive holders, the inclusion of whom in any co-operative enterprise is essential,

are inclined to believe that they can achieve better results by marketing their own produce than by selling through a society. There is a tendency, however, for these holders to have an understanding with each other in connection with their marketing, while in some cases joint purchases and deliveries in bulk are arranged each holder being responsible for payment of his own share. It may be expected that as confidence increases among the holders co-operation in a recognised form will ultimately develop in a natural way as a result of these activities. This development is being helped in many districts by the organisation of small holders' shows, ploughing-matches and other social events which by engendering a sense of joint effort and friendly rivalry tend to increase the growth of a mutual understanding and respect amongst the holders.

IV. LOANS.

LOANS TO EXISTING LANDHOLDERS UNDER SECTION 9 OF THE ACT OF 1911.

During the year the Board approved 211 loans to landholders amounting to a total of £26,533. These loans were given for the erection of 94 new dwelling-houses, the improvement of 91 existing dwelling-houses, the erection of 15 new steadings, the improvement of 15 existing steadings and the installation of a water supply in four dwelling-houses. In five of these cases the loans were made for the improvement of dwelling-house and steading; in two cases for the improvement of dwelling-house, including the installation of a water supply; and in one case for the improvement of dwelling-house and the erection of new steading.

Seventy-two of the new dwelling-houses will qualify for subsidy under the Housing, etc., Act, 1923. In these cases an assignation of the subsidy is accepted by the Board in part repayment of the loan.

The following table shows the proceeds from the sales of building materials at the Board's stores during the year :

The store at Lochinver was closed in October and at the end of the year arrangements were being made for the transfer of the store at Stockinish to Tarbert.

LOANS TO CROFTERS UNDER SECTION 5 (4) OF THE CONGESTED DISTRICTS (SCOTLAND) ACT, 1897.

During 1926 the Board approved loans amounting to £655 to seven holders on the Glendale Estate (Skye) for the erection of four new dwelling-houses (one of which will qualify for subsidy) and the improvement of three existing dwelling-houses.

LOANS TO FISHERMEN UNDER SECTION 4 (1) (e) OF THE CONGESTED DISTRICTS (SCOTLAND) ACT, 1897.

A loan of £170 was granted to a fisherman feuar in the county of Sutherland to enable him to erect a new dwelling-house of a type qualifying for subsidy.

Seven loans, amounting to a total of £1,410, were granted to holders on the Knock and Cross Skigersta fishermen's holdings schemes in Lewis. These loans were given for the erection of six new dwelling-houses which will qualify for subsidy, and the improvement of one existing dwelling-house.

LOANS UNDER SECTION 29 OF THE LAND SETTLEMENT (SCOTLAND) ACT, 1919, FOR THE PURCHASE OF LIVE STOCK, SEEDS, FERTILISERS AND IMPLEMENTS.

Individual Loans.-Section 29 of the Land Settlement (Scotland) Act, 1919, ceased to have effect at 31st March 1926, and the Board have now no authority to advance loans to individual small holders for the purchase of live stock, seeds, etc.

The following summary of proceedings under this Section may be of interest as an indication of the extent of the demand from small holders for assistance towards stocking their holdings :(1) Approved loans in respect of which advances have been made.

Number of loans approved
Total amount approved

Total amount advanced

....

85

£8,851 1 8 £7,495 8 10

(2) Approved loans not taken up by holders for various reasons.

The Board's experience leads them to the view that the best type of small holder prefers to enter his holding without having to seek assistance for stocking purposes, and that the facilities available under Section 29 of the Act have been sought, generally speaking, by men of more limited experience and ability.

As

has been indicated in previous Reports of the Board, the conditions on which these loans have been granted, stipulating for repayment within a very short period of years, have tended to impose upon the holders heavy burdens in the early vital years of their tenancy when many of them find difficulty in making ends meet. In the circumstances the Board have found it impossible always to secure payment of instalments as they fell due, and in 25 cases arrears were outstanding at the close of the year. The arrears of capital in these cases amounted to £1,567. 2s. 7d. in respect of total loans of £2,677. 11s. 2d.

Each case is being considered on its merits in an endeavour to secure repayment, if necessary by instalments over a period of years, without recourse to legal action which might have the effect of forcing the holders into bankruptcy.

In addition to the cases referred to above, the Board have been forced to write off from time to time a total sum of £1,036. 15s. 10d. as irrecoverable in 9 cases in which the holder became bankrupt or vacated his holding. The total loans advanced in these cases amounted to £1,431. 9s. 6d.

Loans for the purchase of Sheep Stocks.-Up to the end of the year a total sum of £102,672. 14s. 8d. had been advanced by the Board to enable holders to purchase or to take over sheep stocks on land settlement schemes. Of this sum £15,791. 13s. 1d. consisted of loans to individual holders or to groups of holders, while £86,881. 1s. 7d. had been advanced to 29 co-operative credit societies registered under the Industrial and Provident Societies Acts. Excluded from these figures are 7 loans amounting to £2,180. 10s. which have been fully redeemed by the holders before the expiry of the normal period of repayment.

The Board are able to report that for the most part the club stocks continue to be successfully managed. The stocks generally are maintained, as regards both numbers and quality, at as high a standard as when taken over by the holders.

V. DISPOSAL OF VACANT HOLDINGS.

During the year there were reported to the Board 203 cases in which landholders' holdings had fallen or were about to fall

vacant.

Six of these holdings were exposed for sale and the Board ascertained that the new proprietors had purchased them for the purpose of personal residence. In two cases the Board were not satisfied with the conditions on which the holdings had been relet and correspondence in the matter was being carried on at the close of the year. In another case the Board ascertained that a landholder's holding, on falling vacant, had been let to a new tenant on lease for a period of nineteen years. The Board communicated with the landlord, pointing out the irregularity of the let and asking for an assurance that application would be made to the Scottish Land Court for the registration of the