68 COMMISSION OF CONSERVATION 



Each tenant society joining the federation must pay 



The Federation . , . . J '-TT ' . . *\/ 



of up share capital in the federation proportionate to its 



Co-Partnership assets, the amount required at present being 10 for 

 each 1,000 of property. It is intended that a sub- 

 stantial share of any profit made by the Federation, after paying five 

 per cent, on shares, will be first allocated to a Reserve Fund, after 

 which the remainder will be divided amongst its Tenant Society 

 members in proportion to the use they make of the Federation. 

 The Federation is governed by a Board, the members of which are 

 drawn from the Boards of the societies in membership with it. 

 It has: 



(1) A Finance Department for raising money either by issuing 

 shares, loan stock, or mortgaging, to meet the cost of building on the 

 various estates, and for advising societies on all matters of finance in 

 developing estates. 



(2) An Accountancy Department for giving advice to societies 

 in the membership, concerning the best method of keeping accounts 

 and for periodically seeing that the method is adhered to. 



(3) A Buying Department through which orders are pooled for 

 material and the best terms secured for cash and large dealings. 



(4) A Surveying, Planning and Building Supervision Depart- 

 ment, which is at the service of societies in laying out their estates 

 and planning and building their houses, the experience and plans of 

 one society being utilized as far as possible and desirable for others. 



It is intended at an early date to undertake the insurance of the 

 property of its members against fire. 



There are at present in the Federation some fourteen societies 

 owning an area of 615 acres, with 6,225 houses. The estimated cost, 

 when completed, will be 2,105,990. The assets of the societies 

 proper in the Federation on December 31st, 1909, was 524,300. 



The methods adopted insures that the value of the completed 

 property is represented in the books of the society as the cost of 

 materials and labour without any addition for builders', contractors' 

 or financiers' profit. The cottages, as soon as ready, are generally 

 occupied by the members who, in addition to paying the usual mar- 

 ket rent for the premises, increase their shareholding by small 

 periodic payments until their investment reaches 50. Economy 

 in construction is followed by economy in administration. Each 

 tenant is required to pay for internal repairs apart from structural 

 ones; thus they naturally keep down the cost of such work as much 

 as possible. The society undertakes the external and structural re- 

 pairs. The surplus profits being applicable to paying rent bonuses, 

 each tenant is thus encouraged to do his best to help the society 

 financially by recommending suitable tenants for new or unlet 



