the remarkably small loss that arises from, the non-payment of rent. One would imagine that owing to various causes there would be frequent instances in which the rent would not be paid. But in reality the loss from this cause is very small. In the case of the Metropolitan Association the gross rent receivable amounted to 12,2571l. 5s., and the rent actually received was 12,082l. 11s. And that difference of 1741. includes the loss arising from rooms empty during repairs or removals. These are very remarkable facts.[1]
And now I come to an important point, and it is one which can be spoken to with special authority by my hon, friend, the member for Maidstone. The question is whether the erection of these buildings is so profitable an investment as to tempt builders to step in? Will these sites be taken up by people who desire to make profit on buildings for the working classes or not? I say most confidently they will, because my hon. friend, the member for Maidstone, and others have set the example, and have shown that it is profitable to build these classes of dwellings.
Let me state what the dividends are. In the case of the Metropolitan Association the dividends have been kept down. They were pioneers in the work, and all honour to them. But owing to this circumstance experiments were tried and mistakes made which naturally affected the dividends. But in spite of these experiments and the losses which were incurred, they are now paying 4½ per cent. They hope very soon to be able to pay 5 per cent. The Strand Buildings Company pays 5 per cent, and the London Labourers' Dwellings Society 5 per cent. I am told that one or two of the blocks erected by the Peabody Trustees pay 4 per cent. The Improved Industrial Dwellings Company, the Company presided over by my hon. friend, the member for Maidstone, pays 5 per cent., and has done so from the very commencement. The dwellings built by the Corporation of the City of London pay 4 per cent., and those erected or improved by Mr. Ruskin, Lady Ducie, and the other persons whose good work is managed by Miss Octavia Hill, pay 5 per cent. Some companies, it must be admitted, have been failures: others have paid very little; but when wisely managed they have set an example which private individuals and speculators may follow, for they show that dividends at the rate of 5 per cent. can be obtained.
- ↑ I am indebted to Mr. Charles Gatliff, the Secretary of the Metropolitan Association, for many of the statements I quoted, as well as for his guidance when I visited various model buildings.
