I laid the plan before Mr. Ruskin, who entered into it most warmly. He at once came forward with all the money necessary, and took the whole risk of the undertaking upon himself. He showed me, however, that it would be far more useful if it could be made to pay; that a working man ought to be able to pay for his own house; that the outlay upon it ought, therefore, to yield a fair percentage on the capital invested. Thus empowered and directed, I purchased three houses in my own immediate neighborhood. They were leasehold, subject to a small ground-rent. The unexpired term of the lease was for fifty-six years; this we purchased for £750. We spent £78 additional in making a large room at the back of my own house, where I could meet the tenants from time to time. The plan has now been in operation about a year and a half; the financial result is that the scheme has paid five per cent. interest on all the capital,[1] has repaid £48 of the capital; sets of two rooms have been let for little more than the rent of one, the houses have been kept in repair, all expenses have been met for taxes, ground-rent, and insurance. In this case there is no expense for collecting rents, as I do it myself, finding it most important work; but in all the estimates I put aside the usual percentage for it, in case hereafter I may require help, and also to prove practically that it can be afforded in other cases. It should be observed that well-built houses were chosen, but they were in a dreadful state of dirt and neglect. The repairs required were mainly of a superficial and slight character: slight in regard to expense--vital as to health and comfort. The place swarmed with vermin; the papers, black with dirt, hung in long strips from the walls; the drains were stopped, the water supply out of order. All these things were put in order, but no new appliances of any kind were added, as we had determined that our tenants should wait for these until they had proved themselves capable of taking care of them. A regular sum is set aside for repairs, and this is equally divided between the three houses; if any of it remains, after breakage and damage have been repaired, at the end of the quarter, each tenant decides in turn in what way the surplus shall be spent, so as to add to the comfort of the house. This plan has worked admirably; the loss from carelessness has decreased to an amazing extent, and the lodgers prize the little comforts which they have waited for, and seem in a measure to have earned by their care, much more than those bought with more lavish expenditure. The bad debts during the whole time that the plan has been in operation have only amounted to £2 11_s._ 3_d._ Extreme punctuality and diligence in collecting rents, and a strict determination that they shall be paid regularly, have accomplished this; as a proof of which it is curious to observe that £1 3_s._ 3_d._ of the bad debts, accumulated during two months that I was away in the country.