UNSANITARY HOUSING 57 



The methods adopted are briefly as follow: A society pur- 

 chases an estate of land in the suburb of a growing town and plants 

 or lays out the same so as to provide (a) suitable playing sites for the 

 tenants and their children; (b) reasonable limitation of the number 

 of houses to the acre, so that each house may have a private garden; 

 (c) pleasing architectural effects, both in the grouping and design- 

 ing of the houses. 



Substantially built houses, provided with good sanitary and 

 other arrangements for the convenience of shareholders desiring to 

 become tenants, are let at ordinary rents as soon as erected. The 

 rent charged is sufficient to pay a moderate rate of interest on capital, 

 usually five per cent, on share and five per cent, on loan stock, the 

 surplus profits (after providing for expenses, repairs, and sinking 

 fund) are divided among the tenant members in proportion to the 

 rents paid by them. Each tenant member's share of profits is 

 credited to him in capital instead of being paid in cash, until he holds 

 the value of the house tenanted by him, after which all dividends 

 may be withdrawn in cash. 



In such societies, it will be seen that an individual can obtain 

 practically all the economic advantages which would arise from the 

 ownership of his own house. Capital is obtained at a rate of interest 

 below which the individual could usually borrow to build or buy his 

 own house, while the preliminary and other expenses are less than 

 under the individual system. By taking as his security scrip for 

 shares in an Association of tenant owners, instead of a deed of a 

 particular site and house, the tenant averages the risk of removal 

 with his co-partners in the tenancy of the estate. The value of his 

 accumulated savings is therefore kept up and can be transferred if 

 desired, at less cost than land or house property of the same value. 

 The results of a workman's thrift are in this way mobile as well as 

 his labour; and this is important if he is to get the maximum reward 

 for his knowledge and industry. Further, tenants having a substan- 

 tial share in the capital of the society administering the property, are 

 interested not only in securing good results while they are tenants, 

 but also after they cease to be tenants, in keeping up the permanent 

 value of their capital. 



The objects of these societies are: 



(a) To provide expert advice, based on accumulated ex- 

 perience of how to buy, lay out, and develop an estate. 



(b) To raise capital for such societies as join the Federa- 

 tion and accept its advice. 



(c) To pool orders where practicable so that the benefits of 



wholesale dealing in building material shall be secured 

 to the societies joining the Federation. 



