The marvellous land of Snergs

The Marvellous Land of Snergs is a children's fantasy, written by Edward Wyke-Smith and illustrated by the Punch cartoonist George Morrow. It was originally published in Britain by Ernest Benn in September 1927, and later published in the U.S. in 1928 by Harper & Brothers. It is notable as an inspiration source for J. R. R. Tolkien's The Hobbit. (This summary is from Wikipedia.)