they both felt much better in health, and the housewife was obviously delighted with the change.

Another feature connected with a good many of the houses included in the scheduled areas is the amount which tenants have to pay for artificial light during the day time. The figures given to me varied from 4d. to 7d. per day over and above the charge for light during the normal hours of darkness."

Other Schemes.

Besides Edinburgh and Glasgow, the Local Authorities of the following burghs, at the close of the year, were in course of erecting new houses to replace existing insanitary houses which are to be closed and demolished, viz., Airdrie, Buckhaven, Dumbarton, Dumfries, Greenock, Leven, Milngavie, Stirling and Tranent. In addition to the above, the Local Authority of the burgh of Kirkwall were proceeding with the reconstruction of an existing building for the purpose of providing rehousing accommodation.

With our approval these Local Authorities proceeded to provide houses under their general powers contained in Part III. of the Housing of the Working Classes Act, 1890. In authorising them so to proceed, we reminded them of the necessity for considering concurrently with the erecting of new houses the procedure they proposed to adopt in dealing with the insanitary houses, and explained to them the various methods which they might adopt, either an improvement scheme under Part I. of the 1890 Act, or a reconstruction scheme under Part II. of that Act, or Closing and Demolition Orders under Sections 17 and 18 of the Housing, Town Planning, etc. Act, 1909.

Assessment of Compensation in respect of premises compulsorily acquired by Local Authorities under schemes under Part I. or Part II. of 1890 Act.

Arising out of the Edinburgh (Cowgate, Grassmarket, etc.) Improvement Scheme, the question arose whether, in the event of the scheme being confirmed by us, the Official Arbiter, in assessing compensation in respect of lands and buildings included in the areas defined in the scheme as unhealthy areas, was entitled, and indeed bound, to investigate the sanitary condition of every property within the unhealthy area, and if of opinion that any such property was not insanitary or dangerous or injurious to health, to assess compensation otherwise than on the basis prescribed in Section 8 of the Housing, Town Planning, etc. (Scotland) Act, 1919.

We submitted the point to the Lord Advocate, who expressed the opinion that, in assessing compensation, the Official Arbiter was not bound to treat all properties within an area specified in a Part I. or Part II. Scheme as an unhealthy area, as themselves insanitary or dangerous or prejudicial to health and so subject to the provisions of Section 8 of the 1919 Act; that while an area might properly be scheduled as an unhealthy area, the premises in which consisted of separate premises occupying the same site, but some of which were insanitary and others not-for example, a tenement building consisting of a shop on the ground floor, which is not insanitary, and several

K

flatted houses above, which were all insanitary-the claim of the owner of the shop for compensation would not be affected by the provisions of Section 8 of the Act of 1919, in respect that, although the land was included because of the insanitary condition of some of the premises thereon, his premises were not "premises thereon which are in an insanitary condition or are dangerous or prejudicial to health as aforesaid "; and that it would be for the Official Arbiter to decide, in the event of dispute, whether or not the premises, in respect of which the claim was made, did fall within the description just quoted.

The effect of the above interpretation of Section 8 of the 1919 Act meant that, in all cases where a local authority were unable to come to an agreement with the owner as to the amount of compensation to be paid for the acquisition of his premises, the owner would be entitled to appear before the Official Arbiter and to argue that his property was not insanitary or dangerous or prejudicial to health, notwithstanding that this point might, and most probably would, have already been argued before the Commissioner appointed by us to hold the public inquiry prescribed by the Act before a scheme made under Part I. or Part II. of the 1890 Act can be confirmed. In order to avoid unnecessary duplication of enquiry, Section 8 of the 1919 Act has been amended by Section 23 (15) of the Housing, etc. Act, 1923, and premises which are said to be "in an insanitary condition or dangerous or prejudicial to health" must now be specified as such in the scheme. In schemes made after the passing of the 1923 Act, the duty of the Arbiter in respect of properties so specified will be limited to assessing the amount of compensation on the basis laid down in Section 8 of the 1919 Act.

Proceedings taken by Local Authorities under the Housing (Scotland) Acts, 1909-1919.

We obtained from local authorities returns shewing action taken by them during the year under the Housing Acts for the purpose of remedying or closing defective houses, together with information as to the provision of water supply to houses in county areas, provision of water closets or earth closets for houses in these areas, and the extent to which houses of less than three apartments had been erected. These returns have been summarised and the appropriate particulars are printed in Appendix XIV.

Provision of Houses by Private Persons.

SUBSIDY TO PRIVATE BUILDERS.

Reference was made in our last Report to certain outstanding payments of subsidy for houses erected under the Housing (Financial Assistance to Builders) Scheme (Scotland), 1920. These payments have now been completed, the total number of houses erected in conformity with the conditions of the scheme being 2228. The

total amount of subsidy paid in respect of these houses was £540,076, 13s. 4d.

Particulars of the nature of construction and size of these houses were given in our last Report.

SUBSIDY TO CROFTERS.

The statutory period for the completion of houses under the Housing (Financial Assistance to Crofters) Scheme (Scotland), 1921, expired on the 23rd October, 1923. Notwithstanding the fact that all applicants to whom we had issued certificates of approval of plans were given timely warning that failure to complete their houses within the specified period would entail loss of subsidy, there were 19 houses in an uncompleted state on the 23rd October. For these we were compelled to withhold the subsidy. The actual number of houses completed at that date was 96, of which 43 were of 3 apartments, 34 of 4 apartments, and 19 of 5 apartments. The total amount payable by way of subsidy for these houses was £10,220, and of this sum £9930, representing the subsidy on 93 houses, had actually been paid by the 31st December, 1923.

The small number of houses provided under this scheme may be attributed to circumstances which are inseparable from outlying crofting areas, where the limited means of the crofters, combined with abnormal conditions for transport, labour and the supply of materials, make the provision of new houses very difficult. While the number of houses erected under the scheme is not sufficient to raise appreciably the general level of housing in crofting districts, we are satisfied that the new houses will tend to set a higher standard of amenity and comfort in these areas, and may tend to stimulate further effort for the improvement of existing conditions.

As explained in previous Reports, the Housing (Financial Assistance to Crofters) Scheme was carried out in co-operation with the Board of Agriculture for Scotland, who advanced loans to the crofters. under the Small Landholders (Scotland) Acts, and included in such loans the amount of subsidy payable by us on completion of the house. In view of the termination of the above scheme, the Board of Agriculture indicated their willingness to include in future loans the amount of any subsidy that local authorities of crofting areas may offer for the erection of houses by private enterprise under the Housing, etc. Act, 1923. We drew the attention of the local authorities concerned to this offer and asked them to give special. consideration to measures which would facilitate the participation by crofters in the benefits of any subsidy offered in terms of the Act. We are keeping in touch with the Board of Agriculture in this matter in order that crofters may be given every possible encouragement to proceed with the erection of further houses.

Public Utility Societies.

PROGRESS OF SCHEMES.

During the course of the year the Joppa Building Society resolved to restrict their State-assisted scheme to the erection of 10 houses as

compared with the 31 houses for which they had received our approval to proceed. The Kinlochleven Village Improvement Society, owing to difficulties encountered in raising the necessary capital, decided to proceed with only 24 houses instead of 52. In consequence of these decisions the total number of houses included in the approved schemes to be carried out by public utility societies in Scotland was reduced from 468 to 419. Of these 419 houses, 231 had been completed at the 31st December, 1923, and 159 were in course of construction.

Tenders were approved during the year for 81 houses. The total estimated cost of these houses amounted to £48,198. The following table shews the estimated cost of different types of houses for which tenders were approved :

The above figures are somewhat higher than the average cost of similar types of houses built by local authorities, details of which are given in another part of the Report. As explained last year, however, Exchequer subsidy in respect of houses erected by public utility societies is payable only on such cost as we would have approved for similar houses erected by local authorities. For the houses erected by the Kinlochleven Village Improvement Society at Kinlochmore we made due allowance in fixing the amount to be charged against the subsidy for additional cost which was involved owing to the isolated nature of the site.

FINANCIAL ASSISTANCE TO PUBLIC UTILITY SOCIETIES-
AMENDED REGULATIONS.

Section 6 (2) of the Housing, etc. Act, 1923, enacts that the Public Utility Societies (Financial Assistance) Regulations shall be amended so as to provide that the percentage of the annual loan charges payable to societies by way of Exchequer subsidy shall be increased after the 31st March, 1927, from 30 to 40 per cent. Accordingly, with the approval of the Treasury, we issued the necessary amending regulations (S.R. & O., 1923, No. 1248/S.68),

which, however, stipulated that the increase from 30 to 40 per cent. shall be subject to the following conditions:

(1) The society shall have paid all debts owing to the Crown in respect of materials supplied by the Department of Building Materials Supply; and

(2) In any case in which we are satisfied that some person, firm or body corporate carrying on business was instrumental in promoting the society for the purpose of providing houses for persons employed in such business, such person, firm or body corporate shall, if we so require, guarantee by way of collateral security the repayment of any loan advanced by the Public Works Loan Commissioners and payment of interest thereon.

SALE OF HOUSES BY PUBLIC UTILITY SOCIETIES.

On the sale of houses erected by societies under the State-assisted scheme, we may pay to a creditor who holds a heritable security over the houses sold a sum equal to the capitalised value at the date of sale of the Exchequer subsidy applicable to such houses. During the year we gave our consent to the sale of 34 houses erected by societies and paid over the capitalised subsidy. The societies concerned in these sales were the following:

Scottish Garden City Housing Society, Limited, 2 houses;
Barnton Public Utility Society, 10 houses;

Joppa Building Society, 2 houses;

Burntisland Public Utility Society, 20 houses.

In the case of Burntisland Public Utility Society it was found that, owing to the abnormally high cost of building at the time the Society's scheme was carried out, the income from the rents of the houses together with the annual Exchequer subsidy was not sufficient to meet the annual charges on the capital cost of the scheme. It was accordingly arranged, with the consent of the Treasury, that the houses should be sold, the sum derived from the sale, together with the capitalised subsidy, to be applied to the repayment of the Society's capital liabilities. This arrangement was duly carried out, and at the end of the year arrangements were being proceeded with for dissolving the Society.

INTEREST ON SHARE OR LOAN CAPITAL RAISED BY PUBLIC

UTILITY SOCIETIES.

Section 31 of the Housing, Town Planning, etc. (Scotland) Act, 1919, as amended by Section 8 of the Housing (Scotland) Act, 1920, limits the interest or dividend payable in respect of any share or loan capital issued by a public utility society to a rate not exceeding "the rate for the time being prescribed by the Treasury." By Treasury Minute date the 5th February, 1921, the rate was for the time being fixed at 61 per cent., and this rate continued in force until the 16th August of this year, when, by a further Treasury Minute, the rate was reduced to 6 per cent. It was provided,