Up to the end of the year, 1,417 new holdings and 340 enlargements of existing holdings had been formed on properties in the ownership of the Board.

SETTLEMENTS UNDER THE SMALL LANDHOLDERS (SCOTLAND) ACTS, 1886-1919.

Appendix No. 2 gives particulars of settlements effected by the Board in terms of the Small Landholders (Scotland) Acts, 1886-1919, on properties in private ownership. Up to the end of the year, 1,457 new holdings and 1,301 enlargements of existing holdings had been formed on a total area of 297,328

acres.

During the past year 29 new holdings and 15 enlargements of existing holdings were formed. The principal schemes carried out were as follows:

Ribigill (Sutherland).-An area of 330 acres on this farm has been allocated to 16 crofters in Tongue as an enlargement of their holdings. The land is occupied in common as a horse park.

Rhifail (Sutherland).—The Board obtained entry at Whitsunday 1923 to part of this farm extending to 10,376 acres, but difficulties arose which prevented the settlement of applicants until 1927. Six new holdings have now been formed, total area of 223 acres being held individually by the holders. and the remaining 10,153 acres as a common grazing.

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Howes (Dumfries).-By arrangement with the landlord the Board have carried out a scheme for the formation of 14 new holdings on the Howes portion of the farm of Howes and Holms, together with certain other lands, extending in all to 341 acres. The farm is situated within a mile of Annan, and has been' subdivided into six dairy holdings varying in size from 37 to 45 acres, and eight smaller holdings each from 4 to 17 acres in area suitable for pig and poultry rearing.

Bay (Skye).-A scheme forming five new holdings was carried out by the Congested Districts Board in 1901 on lands at Bay. The settlement was not successful, and early in the year 1927 the position was reached that three of the holders had migrated to better holdings, while a fourth was renouncing his tenancy at Whitsunday. The sheep stock had reverted to the landlord. Following on representations by the landlord the Board agreed to undertake a scheme of re-settlement, and at Whitsunday entry was given to the four holdings formed under the new scheme. The sheep stock remaining on the ground was transferred to the holders for cash, while the Board provided loans to enable the buildings as valued by the Scottish Land Court to be taken over and adapted by the holders.

WATERNISH (SKYE).

The Board have carried to an advanced stage preparations for putting into effect at Whitsunday 1928 a scheme to provide

22 new holdings and 40 enlargements of existing holdings on this farm.

In connection with the transfer of the lands to the Board's management, it was thought that a convenient method of determining the price to be paid for the sheep stock to be taken over by the Board would be to ask the Scottish Land Court to value it when visiting the ground for the purpose of assessing the amount of compensation which the Board were liable to pay to the landlord for loss attributable to the scheme. The Court agreed to act. Their award was £5. 5s. 4d. and £3. 17s. 7d. per Cheviot and Blackface ewe and lamb respectively.

VALUATION OF BUILDINGS AND FIXING OF FAIR RENTS OF HOLDINGS CONSTITUTED DURING THE FOUR YEARS ENDING AT MARTINMAS 1922.

In their Report for the year 1925 the Board gave particulars of the revisions effected by the Scottish Land Court, with the consent of the Treasury, in order to afford a measure of relief to the tenants of holdings formed during this period of high prices. It was also indicated that in the event of a revision being asked for by any holder settled during that period who had refused or neglected the opportunity of joining in the original application to the Court, the Board were authorised to carry out such revision in the light of the Court's awards in the case of other holdings on the same scheme. Up to 31st December 1927 the Board had under this authority fixed the fair rents and the value of the buildings on 28 holdings, the annual burdens on the holders in respect of rent and building loan annuity being reduced from £1,376. 13s. 8d. to £1,146. Os. 6d. Further revisions in respect of 16 holdings, which would result in a reduction of annual burdens from £350. 11s. 4d. to £336. 13s. 2d., had been approved at the end of the year.

TALISKER MIGRATION SCHEME.-HOUSING.

In their Report for the year 1924 the Board referred at length to the position of the scheme carried out at North Talisker (Skye) for the accommodation of migrants from the Outer Hebrides. It was then stated that the most serious problem was that of housing and it may be of interest to narrate the progress since made in this direction. At first the Board provided wooden dwelling-huts in order to allow the settlers to make a start on their holdings, and pressed the holders to proceed with the erection of suitable permanent houses as soon as their circumstances permitted them to do so. As an incentive the Board agreed to make available loans of £100 per holder, and further agreed that in cases in which permanent buildings were erected within two years (i.e. by Whitsunday 1925) the price of the wooden huts would be reduced by one-half. At first little progress was made with house-building. The holders were mainly employed on the equipment works on the scheme (road-making, etc.) and in bringing their holdings into a state of cultivation.

Further, it was found that the loans offered were insufficient to provide satisfactory stone houses. To meet these difficulties the Board approved a composite type of house with stone gables, corrugated iron sides, and asbestos-slated roofs, increased the amount of loans to £150, and agreed to convey the materials to the holdings free of charge to the holders, while the period during which the erection of a permanent house would earn a reduction in the price of the temporary huts was extended to Whitsunday 1928. The holders now began to make real progress with building, doubtless influenced to some extent by the fact that the Local Authority looked with disfavour on the continued occupancy of the temporary huts and in some cases threatened to issue closing orders. At the end of the year the position was fairly satisfactory. Of the 68 holders on the settlement, two are accommodated in existing farm buildings, 33 have completed the erection of permanent houses, 7 have houses almost completed, and 10 have houses in the earlier stages of erection, while 8 have signed bonds but have not so far begun to build. The remaining 8 holders have taken no steps to provide improved accommodation.

CHURCH OF SCOTLAND (PROPERTY AND ENDOWMENTS) ACT, 1925. During the year the Board, as owners of landed property throughout the country, have been concerned with claims by the General Trustees of the Church of Scotland against the heritors of various parishes for repairs required to ecclesiastical buildings prior to transfer to the Trustees in terms of the Church of Scotland (Property and Endowments) Act, 1925.

Following on negotiations with the Trustees, agreement has been reached in several cases for the adjustment of the claims against the heritors, and up to the end of the year payments amounting to £648. 4s. 3d. had been made by the Board, representing their share of the amounts involved in the settlements.

IV. LOANS.

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

During the year the Board approved 170 loans to landholders amounting to a total of £20,279. These loans were given for the erection of 75 new dwelling-houses, the improvement of 62 existing dwelling-houses, the erection of 20 new steadings, the improvement of 17 existing steadings, and the installation of a water supply in two dwelling-houses. In three of these cases the loans were made for the improvement of dwelling-house and steading; in one case for the improvement of dwelling-house, including the installation of a water supply; and in two cases for the improvement of dwelling-house and the erection of new steading.

Sixty-six of the new dwelling-houses will qualify for subsidy under the Housing, etc., Act, 1923. In these cases an assignation

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of the subsidy is accepted by the Board in part repayment of the loan.

Powers are conferred upon Local Authorities by the Housing (Rural Workers) Act, 1926, to promote schemes for the making of grants in respect of approved expenditure on the improvement of houses, and it is provided in the Act that assistance under such schemes may be given to landholders. Up to the close of the year, however, very few of the Local Authorities in the crofting areas had adopted schemes under the Act, and all the loans made by the Board for the improvement of houses were applied for by landholders in districts in which no schemes under the Act were in operation.

The proceeds of the sales of building materials at the Board's stores during the year are shown in the following table :—

The store for the sale of building materials to landholders in Harris was transferred in January from Stockinish to Tarbert. The store at Lochboisdale was closed in August.

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

During 1927 the Board granted loans amounting to £305 to seven holders on the Glendale Estate (Skye) for the erection of two new dwelling-houses, the improvement of five dwellinghouses, and the improvement of one steading. In one case the loan was made for the improvement of dwelling-house and steading.

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

Particulars were given in previous Reports of schemes undertaken by the Board for the provision of house sites and allotments on portions of the common grazings at Lower Bayble, Cross Skigersta and Knock in Lewis. Arrangements were completed before the close of 1927 for the promotion of a similar scheme for the relief of congestion in the township of Leurbost in the Island. A portion, extending to 35-4 acres, of the common

pasture of the township was resumed by the proprietor with the authority of the Land Court, and was taken over on feu by the Board for the formation of twelve allotments with suitable house sites. Loans will be made by the Board to the applicants approved for settlement on the scheme to assist them in building dwelling-houses.

Five loans amounting to a total of £895 were granted during the year to holders on the Cross Skigersta fishermen's holdings scheme. These loans were given for the erection of four new dwelling-houses of a standard qualifying for subsidy, and for the improvement of an existing dwelling-house.

A loan of £150 was made to a fisherman feuar in the county of Argyll for the erection of a new dwelling-house qualifying for subsidy.

LOANS UNDER SECTION 29 OF THE LAND SETTLEMENT (SCOTLAND) ACT, 1919, FOR THE PURCHASE OF SHEEP STOCKS.

Up to the end of the year a total of £107,822. 14s. 8d. had been advanced by the Board to enable holders to take over sheep stocks on land settlement schemes. Of this total £89,388. 12s. 7d. had been advanced to 33 co-operative credit societies registered under the Industrial and Provident Societies Acts, and £11,181. 8s. 4d. had been advanced to groups of holders not forming registered societies, while the balance of £7,252. 13s. 9d. had been advanced to individual holders.

Additional sheep stocks to the value of £9,433 10s. had been handed over to holders, but as bonds had not been signed up to the end of the year, this sum has been excluded from the total of £107,822. 14s. 8d. given above.

It is clear that in a few cases the holders find it difficult to pay the annual instalments of their loans as they fall due, especially those who have taken over sheep stock in recent years, when there has been a steady fall in sheep stock values and in the price of wool, etc. In general there is no question of mismanagement on the part of the holders, since reports received by the Board show that in the main the stocks continue to be efficiently looked after and to be fairly well maintained as regards both numbers and quality. The Board have considered the circumstances of certain of the clubs, and with a view to affording a measure of relief have in two cases obtained the consent of the Treasury to an extension of the period of the loan from 10 to 15 years, with consequent reduction of the amount of annual instalment payable.

Considering the difficulties experienced by the holders, the position with regard to repayment of the loans is not unsatisfactory. Of the total of £107,822. 14s. 8d. referred to above, loans amounting to £2,783. 10s. have been repaid in full before the normal expiry of the period of repayment. Of the balance of £105,039. 4s. 8d. repayments of capital made amount to £40,211. 6s. 2d., while the total of arrears at the