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apparently amounts to £468 13s. 4d., and it is expected that four-fifths
of this will be re-imbursed by the Local Government Board.
As regards the estimated cost of the Dispensary, shown in the
statement enclosed with Dr. Sykes' letter of the 27th September last, the
grounds on which it is considered equitable to charge the Tuberculosis
Dispensary with two-thirds of the total cost are that the expenses of the
new premises and the equipment have been incurred specially for the
purpose of providing the Tuberculosis Department with an up-to-date
establishment and organisation which were not necessary for the original
Dispensary, and because it was thought that the Board would not be
satisfied with anything less complete or efficient. It was not contemplated
originally that the X ray apparatus and the laboratory fittings
should be used for any other purposes than for tuberculosis, but with the
approval of the Board, if so used they could also be apportioned as to
two thirds of the cost instead of the whole cost. For the simplification
and uniformity of the Capital Amount, the whole amount apportioned to
the Tuberculosis Department might then be reduced to two-thirds, so
that the total proportion would then stand at £1,218 13s. 4d. In the
Maintenance Account the cost of an "Annual Sinking Fund " has been
so entered in error, and should have been entered in the form of
" Rental," as the lease was not purchased with borrowed money, but
with cash derived from the sale of securities, and if it is to remain entirely
the property of the original St. Pancras Dispensary the sum of £750
should be deducted from the original capital expenditure of £1218 13s. 4d.
and it would then stand at £468 13s. 4d.
The last sentence of the Board's letter refers to the Financial
recommendations in the penultimate group of paragraphs of the Interim
Report of the Departmental Committee oil Tuberculosis. There, under
the head of Capital the first paragraph recommends that Capital grants
should be made up to four-fifths of the amount required. With a view toarriving
at a practical adjustment of the Capital Expenditure it appears
that if the Board would indicate the amount that they would be prepared
to contribute, the Committee of the St. Pancras Dispensary could ascertain
what amount would still be available for Capital Expenditure, as the
original St. Pancras Dispensary is coming to the end of its resources and
incurring debts beyond them in order to finance the Tuberculosis
Dispensary, facilitate the working of the National Insurance Act, and
assist the Local Government Board and the Borough Council in providing
for sufferers from Tuberculosis.
I am to add, on behalf of the Council, and in reply to the fifth
paragraph of your letter of the 25th October last, that the Borough
Council is prepared to enter into an agreement with the authorities of
the dispensary that the tuberculosis dispensary should be handed over to
the Borough Council and maintained by them to the satisfaction of the
Board in the event of the authorities of the dispensary failing to do so
provided that satisfactory terms and conditions can be arranged."