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HD '1'ouomo UXIVEBE‘ITY STUDIES
4423
IN
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POIJI'I'IOAL SCIENCE
M
W. J. A S H LE Y, Editor.

FIRST SERIES. No.11.
MUNICIPAL MONOPOLIES
AN 1) TH ElR MANAGEMENT
,2;-
A. H- SINCLAIR, B- .A.-,
II.
University College, Toronto.


TORONTO :
f PRINTED BY WARWICK 85 SONS, 68 AND 70 FRONT STREET WEST.
' 1891.


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TORONTO UNIVERSITY STUDIES
IN
POLITICAL SCIENCE
W. J. ASHLEY, Editor.
FIRST SERIES. No- II.
MUNICIPAL MONOPOLIES
AND THEIR MANAGEMENT
BY
A- H. SINCLAIR, 13.. A-,
University College, Toronto.


TORONTO .'
@RINTED BY WARWICK 8n SONS, 68 8: 70 FRONT STREET WEST.
1891.

Copies of thzs Essrl'y may be obtains? on application to the Education Dep'wtmentfo'r Ontam'o,
Toronto.

TABLE OF CONTENTS.
PAGEi,
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
MUNICIPAL Monoromns AND THEIR MANAGEMENT—
Chapter I.—-M'u,n'icipal Monopolies t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section I.—-On Certain Requisites of Modern City L~fe . . _ . . . . . . . i . . . . . . . . . . . . . 7
l. Waterworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. '7
2. Street-cars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8
3. Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10
II.-—Their Relation to Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
III—The Monopolistic Character of the Several Industries . . . . . . . . . . . . . 15
1. Street Railways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2. Waterworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16
3. Gas Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l7
4. Electric Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18
Chapter Il.—Comparison of Public and Private Management of Municipal Monopolivs. 20
Sec'ion I.——Some Abstract Financial and Economic Considerations . . . . . . . . . . . . 21
II —Relative Efﬁciency of Public and Private Servants . . . . . . . . i . . . . . . . 24
TIL—Some Comparative Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
1. Waterworks . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . 27
2. Gas Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3. Electric Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34
4. Street-cars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 35
lV.-—Some Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 36
P'
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
PREFACE.

The due relation between civic Government and certain industries, which,
while of ﬁrst consequence to the inhabitants of cities, are yet necessarily monop-
olistic in their character, is a question of urgent importance. The present position
of affairs in the chief city of Ontario has suggested to the Editor the desirability
of devoting to the consideration of this topic the second of the Toronto University
Studies in Political Science.
The earlier portion of Mr. Sinclair’s Essay is occupied with a statement of
the conditions affecting the industries in question, and a discussion of the various
considerations which have to be taken into account in the determination of muni-
cipal'policy. Herein he is, to a large extent, traversing ground already examined
by others; and such usefulness as the Essay will possess will be derived from its
comparative completeness and its systematic arrangement. The later part of the
Essay, however, is, in my opinion, of higher value; for it is, as far as I know,
the ﬁrst impartial attempt that has yet been made to compare the ﬁnancial
position of public with that of private undertakings. This comparison ought to
do somewhat to moderate the ardour of extremists on either side.
Into the detail of Mr. Sinclair’s argument it is not desirable to enter in this
note. But there are two aspects of the subjects which he has not touched, and
upon which some observations may not be out of place.
An enlargement of municipal action in relation to monopolistic industries
has been very widely supported, especially in the United States, in the belief,
which has been freely expressed, that it would be a step in the direction
of Socialism, or “ Nationalism.”~ Such advocacy can scarcely be regarded as
altogether wise. In the ﬁrst place, it implies that we can formulate a much more
deﬁnite~ conception of the future organization of society than is permitted by an
intelligent belief in social evolution. In the second place, it arouses the opposi-
tion of men who would otherwise be ready to assist in a practical reform ; and
allows those who are struggling to retain in their own hands the advantages of
monopoly to shelter themselves behind the principle of industrial freedom-
It would be at once more scientiﬁc and more expedient, if the advocates of muni-
cipal action would allow that, as the world is now constituted, individual enter-
prise has obvious advantages, and then go on to point out that in the
case of certain city industries these advantages cannot be obtained, since, from
the nature of the case, competition is there impossible. What the common sense
citizen has to understand is this, that to try to maintain individual enter-- _
prise in a ﬁeld where it cannot be allowed with advantage, is to discredit
individual enterprise even in ﬁelds where it is desirable.


The other aspect of the subject to which Mr. Sinclair has not adverted, is its
relation to the labour employed. The desire to secure improved conditions for
labour is the chief motive for the English agitation for municipalization, for
instance in the case of the London docks and tramways. In America this con-
sideration is seldom heard of ; and it is the ﬁnancial advantage to the city that
is put in the foreground. But it is evident that this is a question which will
force itself upon public attention, even if it is not raised by philanthropy. Where
large bodies of comparatively unskilled labourers are employed, there is always
especial danger of labour disputes ; as is sufficiently evidenced by the street car
strikes in New York, Vienna, Toronto, and indeed in most great cities. But labour
disputes involving a cessation in the supply of water or gas or street car service
more immediately affect public safety and convenience than any other similar
diﬁculties, and call more loudly for a remedy. It is difﬁcult to believe that the
present anarchy can long continue. In the interest of the users of the service,
if not in that of the labourers, some method of public regulation must, sooner or
later, he arrived at. But whether direct municipal management would be an
immediate and satisfactory way out of the difﬁculty may well be doubted. The
solution of the problem must depend on the circumstances of each place. In the
present condition of municipal politics in most American cities, to add greatly to
-.the number of voters in the pay of the corporation would certainly be dangerous.
w. J. A.
MUNICIPAL MONOPOLIES AND THEIR MANAGEMENT

CHAPTER I.-—MUNICIPAL MONOPOLIES.
Section J.——On Certain Requisites 01‘ .Modern City Life.
This is an age of great cities. They have swept over their old boundaries; and
adjacent towns and even counties have been absorbed. In the United States a hundred
years ago, there were only 13 cities numbering more than 5,000 inhabitants; not one
had more than 40,000; and of the total population of the country only per cent.
lived in cities of more than 8,000. In 1880 there were 494 cities of more than 5,000.
In 1890 there are 74 of more than 40,000; 28 of more than 100,000 ; and nine times
as large a percentage (29.11) of the total population live in cities of more than 8,000 in-
habitants.
This tendency to aggregation has not been conﬁned to new countries.* The
capitals of Great Britain, France, Germany and Austria have each increased in population
ﬁvefold since 1800, and their example has been followed by the provincial cities. In
England and Wales, during the ten years 1871-81, the population of city districts
increased 19.63 per cent, while that of country districts increased only 7.36 per cent.
With this rapid growth of cities, which forms so striking a characteristic of the
present century, new and unforeseen difﬁculties have sprung into existence. Old forms
of civic government, on being subjected to the severer strain, have not stood it well.
They seem to have been out-grown, as the circle of their inﬂuence widened ; and, in the
face of new conditions, all the great municipalities of the world are striving to solve the
tremendous problems they find confronting them.
What are some of the necessities of modern city life, that give rise to these
problems?
Accompanying the increasing importance of cities, partially the cause, but much
more largely the result of that development, is the attempt to protect their inhabitants
from the manifest evils shewn in some of the existing cities of the Old World to be the
result of crowding a large population into a small area. The latest discoveries of physical
science have been called into service ; and it has been found that cleanliness is a necessary
precaution against the epidemics that attend the ﬁlth and squalor of Eastern plague-
swept cities. Of the good that can be accomplished in this direction an eXcellent ex-
ample is presented in the case of Liverpool, which “comprises an area of 5,210 acres,
with an estimated population of 599,738, or 115 people per acre, being the most densely
populated city in Great Britain. The total number of deaths during the year 1889
was 12,159, equal to 20.3 per 1,000--a reduction of 6.9 per 1,000 since 1880. The
total number is 1,847 less than in 1887, and 2,000 below the average of the last ten years
——notwithstanding the increase in population—which is attributed to the good sanitary
work of the health committee.”1-
WATERWORKS.——F0r cleanliness an abundant supplyr of water is absolutely necessary.
It would, no doubt, be possible in most cities to obtain sufﬁcient water for this pur-
pose from wells; but health demands that the water used should be of a purer quality

w. —v-——~-.- m ~~p ‘
* A comparison between an old and a new country in this respect is interesting--~
In Germany - 28 per cent. of the people live in cities of more than 5,000 inhabitants.
In the United States 26 “ “ “ “ L , “
But in “ “ 18 “ “ 100 cities of more than 20,000 “
While in Germany - 16 “ “ 116 “ 20, 000 “
So that in the United States (as compared with Germany ), the large cities have grown at the expense
of the small.—May0 Smith, Statistics and Economics, p. 31. (Pub. Amer. Econ. Assoc., Vol. III.)
1‘ Mr. Sherman in United States Consular Reports, June, 1890.


than can be obtained from the soil of cities, impregnated as it ust be withthe
germs of disease. In order to be pure, the water supply must. therefore be brought--
from beyond the reach of this contaminating inﬂuence. It must bebrought from:
its source either in mains or by aqueduct, and distributed throughout the city by a“
system of pipes. Whatever method be adopted, it is evidently a matter involving a very
great outlay of capital. This cost is greatly enhanced by the fact that in order t0~
supply high buildings, and to give “ a head ” of water in case of ﬁre, it is desirable to
keep a much greater pressure of water in the mains than would otherwise be necesSary.
A far better and more costly piping is essential in order to stand the strain of this pressure ;
and the loss of water by leakages becomes important, since the amount of a ﬂuid passing
through an oriﬁce in a given time varies directly with the force behind it. A system of
water-works is thus a necessity for a city.
The groWt-h in the number of water-works in the United States and in Canada is
illustrated by the following table * shewing the number of works operating in the years.
mentioned :-— ‘ ' I
- 1800. 1850. 1875. 1885. 1889.
United States . . . . . . . . 5 69 535 1,037 1,960
Canada . . . . . . . . . . . . . . . 0 6 20 46 87
In Great Britain and Ireland in 1880, there were 120 companies operating with a
capital of £7,000,000, (exclusive 01:8 in London with a capital of £12,000,000), and as '
number of municipal plants in Glasgow, Birmingham, Manchester, etc. 'l‘ .
STREET (Inns—Another necessity arising from modern conditions of city life is some
mode of cheap and speedy transportation from place to place within the city limits.
Not Only is this essential as a mode of communication between the business sections
of a city, but, by enabling artizans to live farther from their work, it also acts as a safety
valve to relieve the congested districts of population from the strain that would other,
wise come upon them.
This strain is far too great already, but under existing conditions it must grow
greater. In the new County of London there are 118 square miles, which have
an average of 32,500 inhabitants to the square mile! In the more densely populated.
central sections, e.g., \Vhitechapel, the number will. of course be vastly greater. Apart
from the duty of the community to relieve the misery and prevent the evils resulting
from such segregation, its mere presence is a very real menace to the safety of the city. .
All great cities have somewhat similar districts: Paris, Berlin, Glasgow, Birmingham,
New York, Chicago, have them 5 and it they are not quite as wretched or nearly so large
as those of London, it is only because these cities have not reached in point of numbers
the “ bad eminence ” she has attained. If the density ofsuch sections could be reduced
to one-half by doubling the area of a city, the greatest difﬁculty would be overcome ;.
light and fresh air for children, and a certain degree of seclusion would then be pes-
sible. But this increased area involves living at a greater distance from the scene'of
One’s daily employment. 80 that some mode of transportation is essential ;\ and if it
were only cheap enough, and speedy enough, it would meet the requirements of the case.
This need, so far as it has been met at all, is met in all European towns, by elabor-
ate systems of omnibuses, which ply on the principal streets at regular intervals. A 4
moderate rate is. charged, usually varying according to the distance travelled. These
omnibuses are the direct descendantsof the old stage coach, and are better adapted to
traﬂic on narrow and crowded streets, than the street railway systems. which take their
place in American cities. These last are a very modern institution indeed, the ﬁrst
street railway having been built about 1855. Their development seems, however, to have ,
kept pace with that of municipalities 5 and there are now, as nearly as may be, 957 street
railways on this continent, having 8,818 miles of track, and worth in the neighborhood
of $150,000,000. I ‘ I '
Compiled from tables in Mr. M. N. Baker’s American Waterwm'ks'ManuaZ for 1889-90. (Engineering
News OﬂZce, New York.) -|- Sir T. H. Farrer, State in, Relation to Trade. (Eng. Citizen Series). p. 93.
1' Electrical W orld, N ov. 22nd, 1890. The writer has reduced the values given by the various com-
panies about one-tenth. ‘

These aredivided as follows :— _


5'89 roads, 5,718 miles of track, run by horses,
' Valued at 854,000,000 5 cost of running 5.7c. per mile, for each car.*
49 roads, 527 miles of track, run by cable, .
valued at $44,000,000 5 cost of running 2.50. per mile “ “
246 roads. 2,024 miles of track, run by electricity,
valued at. 844,000,000 5 cost of running 2 20. per mile “ “
4'3 roads, 554 miles of track, run by steam,
valued at $7,000,000 5 cost of running 5.00. per mile “ “'
So that “ horse” roads do more than half the trafﬁc. This is to be expected from the.
circumstance under which street railways have developed. A “ horse ” road is the easiest
and cheapest to build 5 although it is said to cost more to “run” than the others. 'The
objections to it are: let, Its slowness eSpecially for suburban traﬂic, where all the others
are greatly its superior in this respect. 2nd, It requires a large staff of unskilled
employees. 3rd, Its stables must be in a central part, and usually constitute a nuisance 5
while the excreta of so many additional animals contributes largely to the uncleanliness
0f the streets. ‘
_ Electricity stands second, although it is so new an element in motive powered and
has won its way to popularity in medium-sized towns. It is in a transitional state, im~
proveents- being continually made in it 5 so that a plant that may be very good to-day
may be quite ancient in a year. The larger cities recognise this, and have been cautious
in investing large sums in the enterprise. It is however becoming more stable every
“ year, and more important roads are adopting it. The largest electric railway is in
Boston, where the “ West End System,” with 284 miles of track, has 60 miles of it elec~~
Ftrically equipped. ~
There are two kindsI‘,‘ of electric street car : one in which the power is carried in the
. car, which is called the “ storage battery” system 5 and another which obtains its power
from a wire overhead, connected with the car by a trolley or arm fastened'to the car,
and having on its upper end a pulley which runs on the wire, thus completing the circuit.
j The advocates of the two systems wage enthusiastic war upon each other. The latter
- seems so far to be rather the more successful 5 notwithstanding the disadvantage it labors
under, of being obliged to string, its wires upon poles which makes it necessary that the
track should be by the side of the road, and in case of double tracks, one on each side of
the road 5 or else that the poles should be placed in the roadway in the space between the
tracks. In either case‘the obstruction to trafﬁcis considerable.
Both systems have the following disadvantages : 1st, They are affected by electrical
changes in the atmosphere. 2nd, They are often damaged by lightning. 3rd, The track
must be kept perfectly clear of snow in winter. 4th, The cogs are often stripped from
i the gearing in connection with the dynamo, leaving the car helpless on the street.§ 5th,
They are unable to ascend very heavy grades. Their limit in this last direction would seem
to be ascertained by the following examples 2—Mi1waukee has an electric railway working
successfully over a 10 per “cent. grade. Lynn (Mass) has a system whose cars succeed in
‘ Climbing a grade lat-13.2 per cent. In Tacoma an electric railway was started 5'but it was
found, unable to master a rise of 1 in 7, and it“ has been replaced by a cable line.

1 - 7 . l , w
7* For comparison with this may be noticed the following estimate of cost of construction of a ten mile
- road- with htteen earstas given by a committee of the Am. Street Railway Asseciatiou in Sept, 1800 :—
‘Cable systei'n——Cost or cable construction, $700,000; cars, $15,000; power 1.>£ant, $120,000; total, $840,000.
Electric overhead w-ire system—Cost of roadbed, 870.000; wiring, 830,000; cars, 800,000; power plant,
$30,000 5 total, $190,000. Storage battery system—Cost of roadbed, 870,000; cars, 875,000; power plant,
830,000; total, $170,000. ~.
_ ’l‘ The ﬁrst electrical street railway began running in Cleveland, 0., in 1884.
» third variety, where the wire is'in a conduit beneath the track, has been tried in Boston and in
> Denver, but at such cost as to be out of the count.
~ .. '3 ‘§ ‘1"? From live minutes to three years,” was the reply of an electrical expert to a question "as to the life
. of these. gearings. . > _ ~
10 [54


Electric systems have great advantages however :—
1st. They secure speed (from 3 to 20 miles per hour being obtainable at the will of
the eonductor)-a great consideration, especially in suburban districts.
End. In case of danger, electric cars can stop more quickly (owing to the dynamo
being reversible) than either horse or cable cars.
3rd. They are cheap? and, with the rapid improvements made in electrical science
will probably soon become cheaper still.
The cable system, though cheap to operate. is very costly to establish; and is adopted
~=only where there is great trafﬁc in large cities, or where there are steep inclines to sur-
maount. The cars are propelled by an endless chain, running in a tunnel beneath the track,
and connected with the car by a clutch which passes from the latter through ah'groove
into the tunnel. The chain is kept in motion by a central engine. Should the clutch
catch on an inequality of the chain, it sometimes becomes impossible for the conductor to
release it. The car then runs amuck, till it smashes against some obstruction, or till the
(central station can be communicated with, and the chain stopped. This of course stops
:all the other cars on that line.
Steam as a motive power for street cars, is not popular for obvious reasons. It is
mused on the elevated railway of New York, and the underground railway of London.
in the former case its noise and ﬁlth constitute a nuisance to the inhabitants of the
“districts traversed, and in the latter to the travellers themselves.
LIeHT1NG.—The lighting of public thoroughfares early recommended itself not
rmerely as a convenience but also as a necessary precaution for the safety of the inhabitants
and their property. “A gas light is as good as a policeman,” is a common saying,
and the state of affairs so graphically portrayed by Macaulayj as existing in English
cities of the 17th century would no longer be endurable. “ When the evening closed in,
the difficulty and danger of walking about London became serious indeed. Falls, bruises
and broken bones were of constant occurrence. For, till the last year. of the reign of
“Charles the Second, most of the streets were left in profound darkness. Thieves and
robbers plied their trade with impunity; yet they were hardly so terrible to peaceable
citizens as another class of rufﬁans. It was a favorite amusement of dissolute young
gentlemen to swagger by night about the town, breaking windows, upsetting sedans,
beating quiet men and offering rude caresses to pretty women. . . . The machinery
-for keeping the peace was utterly contemptible. . . . It ought to be noticed that
in the last year of the reign of Charles the Second began a great change in the police
of London, a change which has perhaps added as much to the happiness of the great
‘body of the people as revolutions of much greater fame. An ingenious projector named
Edward Heming obtained letters patent, conveying to him, for a term of years, the
exclusive right of lighting up London. He undertook for a moderate consideration to
place a light before every tenth door on moonless nights, from Michaelmas to Lady Day
and from six to twelve of the clock. Those who now see the capital all the year, from
dusk to dawn, blazing with a splendor compared with which the illuminations for
‘La Hogue and Blenheim would have looked pale, may perhaps smile to think of
Heming’s lanterns which glimmered feebly before one house in ten during a small part
of one night in three. But such was not the feeling of his contemporaries. His scheme
was enthusiastically applauded and furiously attacked. . . . Many years after the
date of Heming’s patent there were extensive districts in which no lamp was seen.”
Progress in lighting has kept pace with other improvements 3 1 and even Macaulay’s
'London of ﬁfty years agof‘ blazing with splendor” would probably appear but poorly

*Tnis cheapness is largely the result of their speed. If a road can run its cars half as fast again as
‘those of another, two-thirds the number of cars will sufﬁce.
i‘ Hist/my of England, vol. I., ch. 3.
T111 1882, in Great Britain and Ireland there were $350,000,000 engaged in the business ; in 1889 the
mapital had increased to £60, 000,000.
55] 11


lit as compared with the average city of to-day. The importance of thorough lighting is
being more and more recognized. In Glasgow the municipal authorities compel the
iighting of stairways in tene'nent houses, and pay part of the cost. They can afford to
do so out of what is saved in the cost of preserving order. Oil is of course no longer used for
street lighting. From the advantages gas offers in the way of convenience and safety
over oil lamps, they are being rapidly displaced by it as an illuminant for private use as
well, especially in manufactories or where large quantities may be used.
Apart from its lighting properties its applications are manifold. It has been found
useful as a heating agent on either a large or a small scale ; in the former to drive steam
engines, in the latter for domestic purposes. It is obvious that coal can be more
cheaply handled in large quantities at gas-works than when distributed in small
quantities throughout a city. Moreover in gas-works the by-products of the coal are
almost all utilized, scarcely any waste occurring in the production of gas. In the
burning of gas it is estimated that 80 per cent. of the heat-producing power may be
rutilized, while in coal stoves 10 to 20 per cent. is obtained and in a grate ﬁre only
3 per cent.*
As a motive power gas would do away with that bane of great cities, the smoke
nuisance, whose far-reaching results for evil upon the physical and moral constitution of
citizens are being more fully appreciated? If the price of gas could be reduced it would
help in all the above-mentioned reforms. It would be much more largely used, and in
consequence could be produced still more cheaply. It is also held by some that, if it could
be obtained at a sufficiently low price, its utilization as a motive power to drive small gas
engines would tend to do away with the concentration of industry at local centres rendered
necessary by the introduction of the steam engine at the beginning of the century]:
In lighting, as in street railway trafﬁc, electricity is rapidly assuming a very im-
portant place. In America it is estimated that there are 300,000 arc, and £000,000 in-
candescent lamps in use, requiring the employment of 300.000 men, and the investment
of 300 millions of dollars.§ It has thus become a great rival of gas as an illuminant.
Their peculiarities seem, however, to map out different spheres of usefulness for each,
The great brilliancy of the are light ﬁts it for places where an intense light is called for,
or where it commands a long distance, e. g., a ship, a lighthouse, or a leading city
thoroughfare ; while gas, being more divisible, is therefore the cheaper alternative where
only a small space requires lighting. So that for city streets a system combining
electricity and gas is best ; using the latter for suburbs where very clear illumination is
not so necessary, for courts or for wooded avenues, where several gas-lights at short
intervals are much more eﬁicacious than one are lamp. As the electric light does not
take oxygen from the air as gas does, and as it produces but little heat, it is especially
adapted for public halls, underground railways, inner rooms of buildings, etc., where
ventilation presents diﬁiculties. The incandescent lamp, being entirely protected from
the atmosphere, is available for many places, e. g., mines, where gas cannot safely be
introduced.
Section 2.-—Thei'r Relation to Government.
It will be observed that all these industries have developed their present import-
ance since 1850. This period marks the triumph of the “ laissez faire ” theory of politics
by which the duties of government are conﬁned to the narrowest possible limits; individual
freedom of action being considered all in all and competition the natural ruling factor in
every industry.
*Prof. James, The Relation of the Jlfodwn [Municipality to the Gas Supply, p. 11.
13411 interesting adaptation of the heating power of a gas jet is shewn in the thorough ventilation
obtained in an otherwise stagnant-aired room by keeping a jet burning in the ventilating ﬂue.
ilt has not yet been obtained cheap enough. however; and whether this result would follow is per-
haps also doubtful. The same claim is raised on behalf of electricity. Lord Salisbury, in a recent speech,
said, “ Electricity will scatter the present unhealthy aggregation of labor.” The truth of this is questioned
by the Electroteclmischer Anzciger which holds that it will annihilate small industries. In any event it
seems scarcely likely that when so many conditions vitally affecting industry have changed within 100
years, that the state of things then existing could be returned to by simply eliminating what was at that
time the disturbing element, \'1z., the steam engine. Whether, under the new regime that would result,
the working man would be better Situated than at present remains to be proved.
Mr. M. J. Francisco, in a paper read before the National Electric Light Association, Aug. 19, 1890
12 ' [56;


The principle of laissez faire was itself a rebellion against an earlier system of
minute and manifold regulation of private enterprise on the part of government. While
it was not ill adapted for the age in which it had its rise, that system had lost its use-I
fulness under changed conditions. Instead of being a protection to the weak, as it was
intended to be, it had become a bar to their progress, an instrument for their oppression.
The paternal theory of the state was still largely affecting English industry, when Adam
Smith wrote his “Wealth of Nations.” He opened the way for its overthrow ; and, in
view of the injustice arising from its practical working, it is not surprising that he should
have gone to the opposite extreme in advocating individualism. Self interest he held to
be the great bond of society, and competition the natural, sole and universal regulator of
every industry. His book was written in 1776 ,' but it was not till the repeal of the Corn
Laws that the principle he advocated attained its full triumph. Conditions had again.
changed in the interval, however ; and some considerations which had been wholly over-
looked by Smith had become matters of ﬁrst-rate importance.
Only by slow degrees have men come to see that, under some circumstances, alet~
alone policy may permit the strong to oppress the weak ; and that a carefully considered
interference by the authorities with the free action of the individual may be necessary
for the moral and material welfare of the nation. “Competition we have learnt is-
neither good nor evil in itself ; it is a force which has to be studied and controlled 3 it
may be compared to a stream whose strength and direction have to be observed, that
embankments may be thrown up within which it may do its work harmlessly and bene-
ﬁcially. But at the period we are considering it came to be believed in. as a gospel, and,
the idea of necessity being superadded, economic laws deduced from the assumption of
universal. unrestricted competition were converted into practical precepts, from which it
was regarded as little short of immoral to depart.” * '
One of the ﬁrst examples of legal interference becoming necessary was in connection
with parents’ control of their families. The Factory Laws have deprived parents of one
means of support, viz., the earnings of their young children ; and masters have, at the same
time, had closed to them one source of cheap labor. WVhile the employment of dearer
adult labor has not resulted in the increased price prophesied for it, still the cost of some;
manufactured products has probably been enhanced. The change brought a certain amount
of suffering as every change must do. Yet, weighing the evils against the beneﬁts obtained,
everyone must concede that it was better that the difficulties entailed by the change-
should be endured than that children. should be allowed to grow up with the physical,~
mental and moral diseases invariably accompanying the older system.
But, in the revulsion from the restrictive policy that had so long stood in the way of
real progress, the scale of opinion. had naturally swung _ so far to the opposite
extreme that it was not to be brought back to the balance by such an example of the
beneﬁts to be derived from occasional interference as the preceding. That was in
behalf of children. ﬁlm were considered able to look atter themselves. An example is
seen in the conﬂict between labor and capital. When a laborer grumbled at having his
wages reduced he was represented as being very unreasonable; for could he not stop
work it'he liked? YVere there not others ready to take his place at the new wages,
and should not competition and freedom of contract rule in all such matters? But the
labor er saw that while theie might be competition between himself and other laborers,
there could be no freedom of contract between himself and his employer. He had a
family depending on his earnings, to whom a day’s loss of wages meant privation, and!
the time spent in looking for a new place starvation. His master could wait for months
if necessary, but usually had a huge number of applicants for the vacancy from whom to-
choose. The laborer was ad vised to submit patiently to his lot, which was natural and there-
fore right. To make the persuasion eﬁectual, rigid laws against combinations of employees
were enforced. Smarting with a sense of injustice, workmen combined in spite of the laws
and were successful. In this period arose the resentment of employees against employer,

*Arnold Toynbee, The Industrial Revolution, p. 87.
57] 13


The bitter antagonism lasted for a generation, laid the foundation of Socialism, and even
now when the worst evils have been remedied may still be met with from time to time.
This struggle of capital and labor had an educative effect. It emphasized the fact
that competition could be free only among equals. The idea that men could, by combin-
ing themselves together, produce something resembling this equality with their employers
was a new one. t showed. economists that they had been wrong in estimating the con-
ditions of competition. The whole ground has been gone over again, and the conclusion
drawn from the last twenty years’ experience may be stated as follows :
WVhile competition may be a very good and useful thing in itself, still it must very
seldom occur that additional circumstances do not so enter into the consideration of any
particular industry as to make absolutely free and equal competition in it an impossibility.
Thus, turning to the question immediately before us, and asking how far a useful
and eﬁ'ective competition between those engaging in the same business is really possible,
it will be found that industries run through the gamut from those in which competition
is by far the greatest factor to those at the other extreme whose naturally monopolistic
features overshadow their competitive ones, in some instances destroying them almost
entirely. ' At the latter end of the scale will be found those industries whose remarkable
development and peculiar position as necessities of city life have been described in
Section I., viz. \Vaterworks, Street railways, Gas and Electric Lighting and Telephone
service.
I They were not dealt with by Adam Smith because they were not in existence in his
‘day. Among the ﬁrst to touch upon their monopolistic characteristics was John Stuart
Mill.*
But why should these industrial undertakings be monopolies Z It is evident that their
monopolistic character is not of the same kind as that of the artiﬁcial monopolies granted
by Elizabeth, James I., and Charles L, in which an ordinary business was conﬁned to
stated persons by the crown authority, in return for annual payments to the treasury.
Nor are they akin to those undertakings, such as inventions, or the establishing of new
industries in a country requiring them, on whose behalf government may step in and re-
strain competition by granting patents, or by imposing a protective tariff. In fact they are
diametrically opposed to the last mentioned in the particular that governments, whether
general or local, have attempted to create competition in them, and in spite of the attempt
they have become monopolies.
In what then do they differ so widely from other pursuits ’5
Some of their characteristics given by Sir T. H. Farrer in his book “ The State in
Relation to Trade” are as follows : -
f‘ 1. What they supply is a necessary.
“ '2. They occupy peculiarly favored spots or lines of land.
“ 3. The article or convenience they supply is used at the place where and in con-
‘nection with the plant or machinery by which it is supplied.
“ 4. This article or convenience can in general be largely if not indeﬁnitely increased
without proportionate increase in plant and capital.
“ 5. Certainty and harmonious arrangement, which can only be attained by unity, are
paramount considerations.”
No one of these peculiarities seems at all sufﬁcient to constitute any of the industries
under consideration a monopoly.
1. Their character as necessaries has already been dealt with in Section I. ; but they
are not more necessary to city life than, say a dry-goods store or a bakery, and these are
industries clearly open to competition. '
2. Here we meet a much more important difference lwtwven thom and such a, bmi.
ness as the sale of dry goods. lv Obminiug‘ :1 gm “I hiH' r' -r ||\~'. sf, m», 1),," the come,- Hf


_~_
* He notices them brieﬂy in his Political Economy, buuli v., chap. iii, s. 11.
it C. [5s]

two leading thoroughfares, a merchant obtains an advantage over his rivals, but cannot
shut them out. But all the industries with which we are dealing occupy the public streets
themselves for their business 3 so that competition is, of necessity, limited to a small num-
ber of companies by the physical impossibility of crowding an indeﬁnite number of street
car tracks, gas and water mains, electric light, telegraph and telephone wires upon one
street, whether upon the surface, beneath, or above it. The number might be greater if
the streets were wholly given up to them ; but that is hardly what streets are for. Their
use of the streets is a great inconvenience to the general public; and each additional track
or main or pole increases the annoyance and obstruction in a far greater ratio than its
proportion to those already “located” would at ﬁrst sight lead us to expect.
\Vhile the people may be complacent under the breaking up of a street for two or
three weeks in a season by the operation of laying or repairing the water mains of a
company, and may be able to endure having the nuisance increased to twice that length of
time by the incursion of a second company; still, if a third company appear on the scene with
the same demand, it is evident that an increase of only 50 per cent. in the time during
which the difﬁculty lasts will be viewed by the ordinary citizen as an increase of at least
100 per cent. in the annoyance. Is there not a point at which human patience must give
way ’1 With the appearance of a fourth company will not that point be reached, although
the increase in time asked for be but one-third? The trouble is not in any way lessened
by all the companies carrying on their repairs at once, for that would stop trafﬁc on the
street entirely. Granting all this, however, it does not prove an absolute monopoly of ad.
the industries, for there isroom on each street for at least two competing companies, with
the exception of street cars; and these might be given adjacent parallel streets or allowed
to use the one line in common as a means of access to important business sections, as is done
in many American cities. So that the most that can be said for this second consideration
of physical necessity, apart from other considerations, is that it limits competition to a
comparatively small number.
3. Their third or local characteristic is also an important one in connection with some
of these industries, If gas could be easily solidiﬁed or reduced to a small bulk, so as to
admit, like cotton or sugar, of transportation to distant places, it would make all the
difference in the way in which it could be supplied. Competition would at once be
extended to all gas-producing companies within an area, great or small, according to the
cost of freight on the article sent. The same is true of waterworks. If a street car
ticket possessed the inherent property on being torn of conveying its holder to his destina- _
tion all companies in the world could compete in supplying the tickets, though they should
cost the companies as much as the present service does.
In the above cases of street car, water and gas supply, competition must be local in its
character; since, from the nature of things,the plant supplying a town must be placed within
the town or near it, so that business is restricted to one city on the part of any company.
The local character of the supply, as a cause limiting competition, applies but in a slight
degree to telephone companies, and to telegraph companies scarcely at all, since e‘lec-I
tricity, the form of force used in them, is so easily transferred over long. distances.
4. By an industry of “increasing returns ” we mean one in which if we invest $510,000~
we may obtain a net return of $500 a year, but if we invest $20,000 we obtain a net '
return of more than $1,000, i.e., by investing just twice the original amount we obtain
more than twice the gain. ,
Now, those we are considering are typical industries of that kind, but they are not
the only ones. In fact almost any business partakes of that nature up to a certain point,
6,9. the large piano manufacturer usually has a great advantage over his rival who works on
a small scale, from the fact that the former is enabled to buy materials in. larger lots and so
get reduced rates. He is enabled to employ specialists, etc. Still this, as we kuow, does
not destroy competition among such manufacturers. One reason is that there comes a
point beyond which, from the nature of the industry, the advantages of increasing the '
capital involved become less and less. -
59]: 15


While in the case of street railways, gas, etc., this point may not be so quickly
reached as in most others, it is ﬁnally found; and extension beyond that point can be-
carried on only at a loss. This fourth reason is not, then, suﬁicient in itself to constitute:
them monopolies.
5. As to the last reason given, viz., the great advantage of certainty and harmonious?
arrangement which can only be attained by unity, this advantage is especially marked im-
the case of the telephone, where its utility largely depends on being able to communicate
with any of the services in the city. It is more easy to arrange a system of transfers; .
between lines of street cars if they belong to one company, If there be a break in the
water or gas mains or defect in telephone wires one company cannot cast the blame upon.
another, if there be but one company in a district. That company must at once shoulder."
the responsibility and attend to the defect. '
But theseare not the only industries where the same element of certainty is an advan~
tage. As a matter of fact, a family seldom change their butcher or grocer, because -
they know what to expect of him 3 and yet these are callings not at all monopolistic in their-
character.
We have now examined the ﬁve conditions and ﬁnd that no one of them is present»-
in such a way as to constitute street car trafﬁc, waterworks, gas or electric light, or tele-
phone service a monopoly.
But if we consider these ﬁve conditions, taken together, the result is quite different...
The ﬁrst ensures a demand, the second narrows competition to two or three companies 011
a thoroughfare, the third conﬁnes competition to one town, the fourth makes the prize OE
obtaining a monopoly so great as to change competition into a war to the death, in which:
the weaker company must be “absorbed ” ; while the ﬁfth makes it a matter of public:
convenience that there should not be competition in these industries.
Section 3.——The illonopolistic Character 0/ the Several Industries.
1. Street Railways—Since it is physically impossible to have more than one double
track on a street, the only way in which competition becomes at all possible is
(1) To allow competing companies running powers over a common line of rails, or:
(2) To let them use adjacent streets for their tracks.
Of the two methods the former is clearly the better; for in the latter case, the cost.
of laying and maintaining an extra track (from $1,200 to $90,000 per mile)* is so-
great that the company could afford to give better service, if the money wasted in.
building the second track, could be saved and expended in that way. Moreovor,
the impediment to trafﬁc offered by street car lines, and the constant annoyance-
they present in residential quarters would be sufﬁcient reason, apart from ﬁnancial con--
siderations, for conﬁning them to the smallest number of streetspossible.
So that, dismissing the case of competing on adjacent streets as wasteful and as at-
multiplication of an unnecessary annoyance, we have remaining the ﬁrst named method, or
that in which the same track is used in common by competing companies. This plan,~
with various modiﬁcations, is adopted in many American cities 1‘; where it is usual;_- ‘
for a number of companies to have running powers over common tracks in the “ down:
town” or business sections of the city, and outside these to have their individual-
private tracks.
Now the chief considerations in a street car service are : (1) That it should take us;
to our destination with as little walking as possible ; That we should be able to get.
there as quickly, (3) as comfortably, and Q4) as cheaply as possible.
Over that part of the road which is private property there can be no competition ; foir-
if roads are on alternate streets, the disadvantages in the way of wastefulness and annoy- -
ance dealt with above make themselves felt. If, on the c0ntrary, they diverge to a.

* Toronto Street Railway Arbitration. + E. g., Cleveland, Ohio.
y
16 [so


distance from each other so as to catch a local traﬁic, as is almost always the case, com-
petition is at once destroyed, for no one will walk even two blocks farther than he need
in order to patronize a rival company’s line ; more especially as the time lost in so doing
will usually more than match any gain in speed or fare on the part of the more distant
company’s cars. Now, it is only for those taking a long ride that the item of comfort
becomes important; but in taking a long ride the traveller is obliged to approach the
suburbs where railways are far apart, and, as we have just seen, in such a case the para-
mount considerations are nearness and speed.
Although competition is thus so powerless as a regulator of street railway trafﬁc, the
faith that has been reposed in it by American cities is remarkable. From a list in the
Street Railway Journal of July, 1890, the following ﬁgures have been computed :
468 American cities and towns have 878 street railways. Of these 335 have but one
railway, 65 have 2, 23 have 3, 15 have 4, 8 have 5, 3 have 6, 4 have 7, 3 have 8, 2 have
9, one has 10 railways, one 11, one 12, one 13, and one 15. San Franscisco has 16,
St. Louis 19, New York 19, Philadelphia 21, and Pitsburg rejoices in the possession of 24.
The attempt to produce competition as shown in these ﬁgures has not been attended
with any marked success. In fact, in face of the difﬁculties that have been sketched
above, it would be very surprising indeed if it had been. In Philadelphia a syndicate
has been formed, which controls most of the roads in that city. When the elevated roads
of New York were built, an effort was made to keep the three lines distinct ,' but this
effort was defeated, and they quickly amalgamated. The street railways of Newark, N. J.,
have been consolidated, and Boston, Detroit, Buffalo, Rochester and Columbus, Ohio,
have recently followed the example. The Toronto City Council, after considering various
proposals to introduce competing lines, have also, recently decided in favor of “ an
exclusive right to operate street railways in the city.”
Mr. O. E. Stump, Vice'President of the Street Railway Publishing Company, New
York, under date of Jan. 12th, 1891, writes: “ It is impossible to tell how many lines
are being controlled by syndicates, as lines are continually being bought up. Where the
lines of a city are not all under control of a syndicate, those which are retain their
individual name. The railroads of New York city are controlled by the Metropolitan
Traction Company.” Mr. Freeman, 0f the Detroit Street Railway, says : “ Agreements
usually exist between the street railways not to interfere with one another, and to run
on common agreements.” ‘
So that it is'evidcnt that competition among street railways exists only in name,
and that if the American cities in the list from which the writer obtained the above
general ﬁgures granted charters on the supposition that they were going to obtain com»
petition, they made a mistake. .
The sooner that attempts to regulate this industry by competition are utterly aban-
doned, the better. Let us face the inevitable; and avoid the useless waste of capital
involved in such efforts, by recognizing the true character of street railway trafﬁc as a
monopoly, and by dealing with it as such.
2. Waterworks—The monopolistic features of waterworks are so apparent that they
have been more clearly seen and more generally acted upon than ~in the case of any other
of the industries mentioned. The necessity/of water supply is so evident ; the cost of
providing it is so great; the public annoyance from the breaking-up of streets in the
laying of mains, etc., so considerable; the immediate attention necessary in case of a,
break so unavoidable for the safety of the surroundings ; in short, the whole industry
is so intimately connected with civic interests, that very few American cities have
attempted to create more than one system—far fewer than have duplicate systems- in gas,
or electric lighting, or street car serV1ce.
In Europe the movement is clearly in the same direction. Most of the Cities pmvme
their own waterworks ; and, where this duty has been delegated to mme than 0...), mm-
pany, the resulting inconvenience has been so great that there is an agitation in most
places to abate the nuisance.
461] ' 17

London has 8 water companies supplying 5,650,000 people. One charges £2 4s for
what another charges £3 17s, and for the same service that the Glasgow waterworks,
which are owned by the municipality, charge £1 9s 2d 3 with the further difference that
Glasgow provides 50 gallons per day, and the London companies provide only 30
gallons per head of a population seven times as great. The London companies
charge rates according to the rentals of the houses that they supply. These rentals
have trebled since 1855, have doubled since 1868, and have increased 25% since
1880; and yet the companies though charging these increased rates, actually supply
less water per house than they did 10 years ago. The value of their stock doubled in
the years from 1871 to 1883. Some of the companies had a maximum dividend of 100/0
provided for in their charter 3 this limit two of the companies have reached. One com-
pany having no legal limit to its dividends pays 12%.9/0, and the lowest pays 6°/o,
The total value of the waterworks in the city is £33,000,000, and after deducting running
expenses, etc., it is estimated that they repay their owners $500,000 a year over the current
rates 'of interest. In so vital a matter to the city, moreover, as protection against con-
lﬁagrations, the Fire Brigade ﬁnds itself continually hampered by the lack of pressure and
scarcity of water under the present system. In February, 1890, a committee was
appointed 'by the London County Council, to consider the taking over of the various
waterworks This committee has reported in favor of the scheme and the Imperial
Parliament is being asked for the necessary powers.
3. Gas Supply—In this industry the tendency to monopoly is scarcely less marked.
The difﬁculties of attempting to regulate it by competition and the beneﬁts of managing
it as a recognised monopoly, are so clearly proven by the past experience of American
and European cities that a reference to some of them will here be made.
In London, Ehgland, the principle of assigning each company a distinct territory
which had been in vogue for 20 years was abandoned in 1842 and competition encouraged,
As a result, six different companies laid mains in Oxford Street. During the pandemo-
nium that ensued, such little incidents as waste in leakage resulting from a change of
service hastily made, the connecting of a house service with the mains of a wrong com-
pany, or even the connecting of two different companies" mains together, passed unnoticed
in the clamor for customers. In the war of rates that ensued, consumers obtained
gas for one-sixth the price of production, while, through the jealous secrecy main-
tained by the companies, some obtained their gas for nothing by representing them-
selves as taking from some other company than the one demanding payment.
This state of things could not long endure. The tearing up Of the Streets for the
frequent changes of service presented such an obstacle to trafﬁc, and the escape of gas
became so dangerous as well as disagreeable, that the authorities had to interfere.
In addition to the public inconvenience, the companies suffered severely and several
became virtually bankrupt. In 1853 the '13 companies came to terms with one
another, divided the city into districts each taking one, ceased competition and each
adopted one uniform rate for the whole of its district. Prices were greatly increased,
and it was evident thatthe consumers would now have to pay f0]? the unnecessary
mains, etc., that had been buried during the enthusiastic period of competition.
Notwithstanding the public outcry a Parliamentary inquiry, after careful consideration,
indorsed this action, and provided a system of regulations. Amalgamation of the
companies followed, and by 1883 the thirteen companies had become three. Their stocks
now sell at from two and a half to three times their nominal value and their owners
receive from 12 to 18 per cent. interest per annum. In the English provincial towns
and on the continent, much the same result was obtained more quickly, a9 , in Paris the
.pompanies were “ districted ” in 1839, and consolidated in 1853.
The same experience has been passed through by upwards of a score of American
cities and always with the same result. The case of Detroit is a typical one. The
mayor, Mr. H. S. Pingree, writes as follows :--~
“ A franchise was granted to a second company to do away with the monopoly of
the ﬁrst. One of the conditions of the grant was that there should never be any com-
2 (M.)
1s [62

bination, or. division of territory under penalty of the forfeiture of the franchise, and- of:
a heavy bond, which was entered into at the time of the grant. Within two years, as I
remember it, the companies divided territory, each taking one-half of the city, exchanged
property according to location, and immediately put the price of gas up to the old
ﬁgure before competition commenced. The city fought the case in the courts, but was
eventually beaten, and the companies have been going along in their own way ever
since.”
A Congressional Committee has reported that “it is bad policy to permit more than
one gas company in the same part of the city.” “Competition involves at least two
or three and even more works where one would be sufﬁcient. It means two or
three or even more mains where one would be ample. It necessitates a correspond-
ing number of different services in each house, and an enormously large number
of inspectors and collectors, and all for what? Cheaper gas? By no means. .The
enormous sums of capital which such a system wastes will certainly try to earn
dividends in some way or other, and the only means is in high prices of gas, or else what
amounts to much the same thing, in a poorer quality. “Then the public is ﬁnally
compelled to take hold of the matter in earnest, to remedy the abuse, as it always must
sooner or later, the large sums of wasted capital are always put forward as entitled to'
some consideration in ﬁxing the rates.”*
Whether cities have learned lessons from history, or whatever the reason, fewer
attempts at competition in the gas industry have been made of late years than formerly,
and the business may now safely be set down as an absolute monopoly.
4. The Electric Lighting industry is so young that it has scarcely yet been sufﬁciently"
studied to be relegated to a ﬁnal position. _ From a comparison with the characteristics
given on page 13 as peculiar to municipal monopolies, it may fairly be included in the
number, as it possesses them all to a very considerable degree. It has become anecessity ;‘
it occupies favored tracts of land 3 the plant must be in or very near the place supplied;
it is an industry of increasing returns 5 and requires certainty and harmony in its
workings. Of the Telephone service much the same may be said. The last named-
consideration, however, that of certainty and harmony of arrangement, becomes far more:
important. A prime necessity in the use of the telephone, is the certainty that from any
one instrument any other in the city may be reached through the one central ofﬁce. A
choice of lines would be no less confusing than would be the necessity of choosing one
of half-a-dozen alternative routes when mailing a letter. One would always be possessed!
of the exasperating fear that he had chosen a wrong one, and that his message would,
after all, fail to reach its destination. '
Probably the most characteristic feature, both of electric lighting and of telephone
service is their occupation of the public streets, either above or below ground, for their
wires. One has but to look about to see the undesirability of increasing the unsightly
maze of wires above our heads. On the ﬁrst appearance of these industries, almost"
every town, carried away with enthusiasm, gave some company untrammelled rights,
trusting that, if it abused its privileges, some other company would readily enter-
into competition with it, as in ordinary undertakings. From their peculiar monopolistic
nature, this expectation could not be realized ; and where competition did ensue, it was-
of the deadly character previously mentioned, giving the consumer a short ecstatic
period of cut prices, but ending in the ruin of one company or its consolidation with its-
rival. In either case the survivor would not forget to charge sufﬁcient- to make up the-
loss it has sustaincd. So, too, it often happens that in the aerial labyrinth there are
some “ dead wires ” of defunct companies left there when the smash came. These go to-
swell the constantly increasing number of overhead wires. It is evident that this can- .
not go on for ever. The public cannot Consent to have their sidewalks fenced' off from
the roadway by a palisade of more or less ungainly poles. .
Not only this, but the multiplication of wires constitutes a very real menace to public
safety. The following, from a recent Chicago paper illustrates a common occurrence :—
1
'*Prof. James, The lielati'on of the Modern Municipality to the Gas Supply.
63] 19

“The ﬁre-alarm wires became crossed and tangled with those of the telegraph and
telephone companies, out by the ﬁremen. The result of this was to render useless the
gongs and bells in the police stations and newspaper ofﬁ ms. The great gong in the city
hall got out of order at midnight, and refused to record an alarm. In the otﬁaes the
bells, the connecting wires of which were crossed with telephone wires, rang almost in~
cessantly.” ~
It is evident that quite apart from ﬁnancial considerations, the sudden disa
organization of the system of communication upon which the order and safety of a city
are based, is a very serious matter. The advantages of reducing the wires to the least
number possible, when strung overhead, are manifest. \Vhen stretched in subways the
advantages of limiting the number are of another kind. Here cost becomes the ruling
factor, and increases with the number of wires, so that a vast and unnecessary outlay of
capital must accompany any attempt at competition, such as we saw to be the case with
the gas monopoly.
When electricity was ﬁrst introduced as a lighting agent, it was opposed by gas
companies, who claimed by their charters a monopoly. In Great Britain and Ireland an
Imperial Act (45 & 46 Via, c. 56), established that what they possessed was a priority,
not of lighting, but only of gas supply. Electric companies at once entered into com-
petition with gas ; and this competition has had a very considerable effect upon prices.
As previously pointed out,* however, each seems to be specially ﬁtted for some kind of
illumination 3 and it is a signiﬁcant fact, that in the United States, more than 300 com-_
panies are operating electric lights in connection with their gas works, and that during
the year from March 1889-90, the gas companies increased their ownership of electric
lights by almost 50 per centj
\Vhere competition is attempted in telephone service the kind of warfare that characw
terizes these monopolies is shewn in a couple of Canadian instances. In Montreal the
Bell Telephone Co. is opposed by the Federal Telephone Co. Mr. Size, the President of-
_the former Company, says :—
“ Of course the business in that city (Montreal) is being operated at a loss, but we
are doing ﬁve-sixths of the business there.” Of Peterborough, Ont, where the Bell Co.
is also opposed, he says :——“ We are now supplying instruments free of charge to kill
opposition.”i . '
Before leaving the subject of electrical operations it is necessary to point out that
one undertaking is often considerably impeded by the near presence of another; and
that their reciprocal action one upon the other is often productive of serious and unex~
pected results. Thus where an electric street railway is in operation, the “ return cur-.
rent ” from the car always interferes with the telephone service to a greater or less
degree. And again, when an electric light wire touches a telephone wire the latter-
immediately suffers, often burning out the instruments, and becoming a source of
danger to the neighborhood. '
An attempt has been made in the preceding pages to prove that some industries
necessary to city life, e.g., water supply, street railways, gas and electric lighting, and
telephone service, are, from their nature, incapable of regulation by competition. § If
this be true, and competition is attempted, it can only be carried on at great loss of
capital and public convenience. If the monopoly be partially recognized, as where

* Page 11.
tThe electric street railway company, the gas company, and the electric light company have recently
amalgamated 1n Danvﬂle, Ill. In two Canadian towns, Sherbrooke, Qua, and Moncton, N.B., the electric
light, gas and waterworks are the property of one company, with good ﬁnancial results in each case,
according to all accounts.
“ 1 Quoted in The Monetary Times, Toronto, January 16th, 1891.
§ “ A new corporation invariably joins with the old, andjthethumbscrews of the double monopoly are
turned up tighter.” Inaugural Address of the Mayor of New Haven, Conn., J an., 1891.
20 - [64
a
each company is conﬁned to one district of the city, all the advantage of carrying
on abusiness on a large scale, e.g., a minute division of labor, and with it a more
"thorough classiﬁcation and harmony of management is lost. The city, instead of reaping
the tremendous advantages arising from its dimensions, is virtually split up into a
number of small towns, requiring entirely separate plants for each, suited to its size,
thus involving a great waste of capital. So that all the chances for possible cheapness lie
Jon the side of a monopoly, absolute and undivided. The true way to deal with these
industries then, is to recognize fully their monopolistic nature, discountenance any at-
tempt at competition or partitioning the city- into districts, and maintain each franchise
intact.
As the ordinary means of keeping these industries within proper limits, viz., com'
petition, has failed, and as human nature is not yet free f ro-m selﬁshness, we must ﬁnd some
method by which we may secure the body politic from the inconveniences that will result
'if the supply of such services is left to private initiative free from controlling conditions.
Nowhere is there a more absolute break-down of the premise on which is reared the
,policy of lctissesfair‘e, viz. : that what is most for the interest of the individual, is also
most for the interest of the community.
YVhere shall we obtain the power to compel the carrying on of these undertakings
in a manner not antagonistic to the interests of the general~ public? There can be but
one answer, viz., in the power of control vested in the municipal or the central authorities.
“The only question that can arise is, How far shall public control extend, and how
‘large a domain may best be left to private enterprise? A thousand'considerations must
enter into the determination of each individual case 3 and according to where the line is
drawn will the management of any monopoly be assigned its place in one or other of
these two divisions :
1. Management by private enterprise, whether coupled with (a) private ownership,
~(b) private ownership with right of public expropriation, (0) public ownership.
2. Management by a salaried staff of public ofﬁcials, the municipality owning the
.plant and carrying on the industry.

"CHAPTER II.-—COMPARISON OF PUBLIC AND PRIVATE MANAGEMENT
OF MUNICIPAL MONOPOLIES.
In deciding whether any given municipality should assume full control of any one of
"these monopolies, or if not, how far it should go in imposing restrictions upon the
private parties carrying on the monopoly, so many questions peculiar to the locality
and the people interested must be taken into consideration, that any attempt at the
drafting of absolute rules must be abandoned as hopeless. The greatest of these
disturbing elements, and one which must be a factor in the question everywhere, is the
dishonesty of public ofﬁcials. This must of course vary in every town, according to
the public sentiment and the morality of people and oiﬁcials, the carefulness of the in-
spection given, the proportion that the salary of public servants bears to the. expenses of
"the style of living they are presumed to adopt, and a hundred other things. Now it
would seem that if we could free ourselves from this most difﬁcult element, and
‘neglect it for a time, we might be able to arrive at some general conclusions near
enough to the truth to be of value, which would admit of qualiﬁcations to suit the
"different degrees of faithfulness met with in the different administrators of public affairs.
65] 21


Section I.-—Sorne Abstract Financial and Economic Considerations. ‘
Bearing in mind, then, that for the present we are leaving this question of the
relative efﬁciency of public and Private service on one side, let us look at some of the
ﬁnancial and economic considerations that must be taken into account in deciding for-
. public or for private control. I
7 Three cases arise :
ISt. Where the monopoly fails to pay expenses.
2nd. Where its earning power is near the border line of expenses, either above or
below.
3rd. Where it is yielding large returns.
1. In the ﬁrst case, where the monopoly is clearly a losing game, it is evident that the-
' less the municipality has to do with it in the way of assuming the property the better.
A town must reach a certain size before those industries we are considering can be made
proﬁtable, eg., to have a street railway in an ordinary town of less than 5,000 people
is a folly for which some one must pay,*
Accordingly we ﬁnd that it has been a general rule for the ﬁrst street railway com.-
pany established in a town to go under in the course of a few years. The plant is then
bought up by some other company at a fraction ofits cost ,"tand the earnings which were a loss.
to the ﬁrst company may bring a surplus to the second, owing to the less amount of capital.v
they have invested. When the municipality begins to think of assuming the business,
it is also a general rule for the second company to urge the hardships undergone by the
ﬁrst, as if that were a reason why they should be paid more, when they have already-
proﬁted by the disaster of their predecessors.
Great caution must be exercised to determine the true condition of aﬁ'airs. In.
representing the returns of the business, if a good shewing is desired to be made, it is not.
uncommon to leave out of account such items as interest on the capital expended, any
percentage for sinking fund or deterioration in value, etc. On the other hand, com-
panies may ﬁnd it advantageous to conceal their real- proﬁts, under the cloak of
secrecy which many of them are still unfortunately able to cast o'ver their proceedings.
There is a shrewd suspicion abroad that the huge masses of stock upon which some
of them reckon dividends have been obtained mainly by the addition of large quan_.
tities of water. One of the great difﬁculties attending this subject in its considera-
tion, either by municipal authorities or economists, is the almost insuperable obstacles.
in the way of obtaining reliable statistics. This has prevented investigation in this.
ﬁeld 5 for if there is one thing more discouraging than another, more likely to cause
paralysis of action, it is to ﬁnd utterly conﬂicting ﬁgures given on the one hand by
those who have all the means of knowing but whose interest it would be to suppress.
the truth, and on the other by those who, though honest enough, have no means of ascer-
taining whether the estimates they give are more than mere guesses. Some more adequate.
returns should be insisted upon than are at present obtainable from these monopolies in.
most of the cities of the’United States and Canada. It is clearly an advantage to have ,
the power of appointing an auditor to go over the books of the gas company in
Toronto, rather than to have no such power as in Montreal, or as in the cases of the
street railway companies of both cities. This information might be given to the public
“or it might not 3 but in any case it should be known to the authorities of the munici-

*How closely the prosperity of a street railway corresponds with the growth of the city it is in, is she-Wm
by the followmg ﬁgures given by the Toronto Street Railway Co. during the recent arbitration :~—
Trips per-
‘ Passengers head of
Year. Population. carried. population._
1870 - - - - - - - - h- - - ~ - - - 50, 516 616,460 12.2
1880 ~ - - - - - - - - - - ~ - - - 75,110 2,869,664 38.2
1885 - - ~ ‘ - - - - - - - - ~ ~ ~ - 105,211 7,386,208 70.2
1890 - ~ - - - - - - 160,141 16,310,444 101.8
+ In St. Thomas, Ont., the Street Railway that cost $14,000 to build was recently sold for $2,300.,
22‘ " [66


pality. It would not be any injustice to the 'owners of the monopoly; for, as the business
is one not susceptible of competition, it cannot be injured by the outside world coming
into possession of the knowledge. The only way in which it could result in away detre-
mental to the owners would be by its being taken advantage of by the urban authorities,
who, from the intimate connection between these monopolies and the public interests,
have a right to the information 3 and if it were granted by the owners it would at once
free them from that “ carping criticism, unreasoning hostility and base suspicion”
under which they groan so bitterly, and which is no doubt, in very many cases, quite
uncalled for. The remedy, however, lies in their own hands.
This right of secrecy was no doubt granted when these undertakings were ﬁrst set
on foot, in the carelessness born of novelty, enthusiasm and ignorance of results. But it
is high time the public authorities disposed of this unfair advantage.
Our municipal authorities themselves have been scarcely guiltless ; and the book-
keeping of some American cities in regard to those monopolies over which they have had
even full control, has been done in a manner mystic, wonderful, which none should ridi-
cule, for surely none can understand. '
2. “There the earning power is upon the border llne of expenses, it may be advant-
ageous for the municipality-to acquire the industry in the following cases :
((1.) Where a town is growing, so that, its future being assured, a surplus may be
relied upon in time. -
(6) Where the town already owns one such monopoly, and can economically manage
another in connection with the ﬁrst, e. g., by utilizing for electric light the power
necessary for waterworks. In such a case care should be taken to keep the accounts
of each perfectly distinct.
(0) Where a municipal corporation can use its credit to borrow money at a consider-
ably smaller rate of interest than a private company and this difference is sufﬁcient
to turn a deﬁcit into a surplus at the end of the year.
The position is not changed by the company using its own money instead of borrow-
ing 3 for its members will hardly enter into an undertaking offering lower interest than is
obtained from, say, ﬁrst mortgage bonds, upon which there is no risk. The rate of interest
upon such bonds is almost always more than that yielded by city debentures. The con-
stitutional limit placed to the borrowing power of cities in the United States, although use-
ful as a check to rash speculation, has in some instances been an obstacle to progress. It
has hindered the attainment of necessary property which was rapidly increasing in value,
so that when at last the city has ﬁnally obtainedwhat it needed it has had to pay many times
what would at ﬁrst have been necessary. A case in point is the taking over by the
City of New York of the lands required for straightening streets. Another is the
difﬁculty met with by many cities of the Central and Western States in the assumption
of their gas and waterworks, etc. The limit should at any rate be more elastic. The
attainment of a valuable and necessary asset in return for the money borrowed to Win it,
need scarcely be looked upon as a menace to a city’s future.
(d) Where the management of the private company is so inefﬁcient that the muni-
cipal authorities can certainly improve upon it, so as to make the investment a lucrative
one. This is a state of affairs that, according to the advocates of private initiative in:
business matters, can never occur.
Social considerations. A company, under the terms of their charter, sometimes can-
not be compelled to conform to the wishes of the municipal government, 6.9., in the
matter of extending their system to sparsely settled suburbs, or the giving of such con-
veniences as the transfer of passengers from one route to another. If the change pro-
posed is ﬁnancially expedient for the company it will, of course, usually be ready enough
to comply; but it would often not pay the company to do so. If the municipality is
obliged to subsidize the company to get it to carry out the improvements, it is clear,
'67]. ' 23


from the nature of things, that since the company must be better able to tell the ,real cost
‘ of such improvement than the city ofﬁcials can be, and since there can be no competition
with the established company, the city must always pay very dearly indeed for the
improvement. In such a case the exercise of the right of the community to take over
the company’s franchise, if the municipality possesses the right, may be a convenient
way out of the difﬁculty.
Indeed, it is the duty of the city government to provide for the free extension of
city limits; and, 'by securing for the people of the suburbs sure and easy access to
the centre, together with the ordinary amenities of city life, to relieve the central parts
of that excess of population which is now its curse. Not only this, but it is the duty
of the community to provide for those who cannot otherwise afford them at less than
cost, and even free where necessary, those essentials to a decent life, such as abundant
pure water, light, etc.,.which have been dwelt upon in the beginning of this paper.
Private companies cannot be expected to drain their pockets to accomplish this
result. It is as much the work of the community as is the free public school system of
which America is so proud, and should go hand in hand with it. The intimate connec-
tion between ﬁlth, disease and the commoner kinds of crime is becoming more clearly
understood. Glasgow supplies free fountains for the use of the poorest classes to draw
supplies for domestic purposes, and the hospitals and charities of the city are supplied
gratuitously with water. The city also pays part of the cost of lighting the stairs of
tenement houses with gas; and it arranges with the street car company for certain,
“runs” much used by workmen at the rate of a penny for a “ run ” of considerably more
than a mile, while morning and evening cars are put on at a charge of about a cent per
mile.*
It is said that in London, England, the sanitary improvements of the last few years
have lowered the mortality rates by a thirds}~ Although this is probably an over-esti-
mate,1 still a great improvement has undoubtedly taken place in the mortality rate, and,
as an accompanying result, probably a still greater decrease in the amount of sickness,
for which there are no statistics. All this points to an increasing attention being paid
by cities to their sanitary condition.
“ A solemn duty exists to treat cleanliness and police and drainage and water supply
as questions 'of business and philanthropy to be settled on their own merits, from which
there is for honest and humane men no escape. In this lies the solution of the great
municipal problem. ' There is no other way in which great cities can be saved.”§
Whether one of these industries will reap for the city a rich ﬁnancial harvest is not the
ﬁrst or only question which should be taken into consideration. How they can be best
used for the general well-being of the citizens is a more important question. That this
consideration varies in importance as applied to the various industries we are considering
is of course apparent. Sewers are necessary though they yield no ﬁnancial return.
Sufﬁcient water supply and a certain amount of street lighting are not less essential;
although for the latter, gas as providing a less brilliant, more divisible and, therefore, less
expensive light than electricity, is more of an essential and less of a luxury than it.
In very large cities cheap transportation is an essential, in small cities it is not.
And we have not yet arrived at the point, nor probably ever shall, when telephone communi-
‘ cation will exert such an inﬂuence upon the people at large that its character will be
changed from being a luxury to being an essential.

* But although Glasgow has extended her parental policy to the providing of public picture galleries
for the middle classes, and public laundries and cooking stoves for those at the lowest end of the social
ladder, she still empties her sewerage directly into her dock-bordered river, a fact which anyone who has
had occasion to travel upon the Clyde has distinct cause to remember.
1' A. Shaw in the Century Magazine, Nov. 1890.
iSee Statistics and Economics, by R. M. Smith, in Vol. III. of the Publications of the American
Economic Association.
§ Municipal Government of New York, in the North American Review, October, 1890.
24 [68


3. \Vhere a large surplus is being earned by one of these city monopolies, it is plainly
better that the gain should go into the civic treasury than that it should ﬁnd its way _
into the pockets of the holders of the monopoly. This is especially true in view' of the
difﬁculties in the way of an equitable mode of levying taxes in city communities. These
difﬁculties have presented themselves so strongly to writers upon taxation that some of
them have seized upon the apparent solution or partial solution of the problem of city
taxation presented by the revenues which these monopolies can be made to yield. They
would turn this money into the city coffers and lower general taxation =
But this is merely putting in the place of direct taxation with its easily seen cases
of injustice, a mode of indirect taxation which though not less unjust is more difﬁcult to
trace, and therefore more difficult to rectify. Like indirect taxes in general, this may be
paid with less outcry than a direct tax would be, because those paying it do not know
that they are being taxed, but it is not less unfair on that account and but little less
injurious in its effect. Raising funds for civic necessities in this way has, of course, the
incidental advantages possessed by all indirect taxes, c.g., that they are collected in com-
paratively small sums, and are therefore not so much felt by the consumer as a direct a
tax payable in large amounts would be. But rates for water and lighting paid quarterly,
amount to sums sufﬁciently large to be seriously felt bythe' ordinary householder ; and
the case of street railway trafﬁc, to which the above rule of small payments would
particularly apply, presents a fatal objection in the fact that a tax upon it is a tax upon
the lower and middle classes only. The cars of a street railway are Scarcely used at all
by the very wealthy who have their own horses and carriages. This, then, is not a
solution to the great problem of ﬁnding an equitable mode of taxation for American ,
cities.
The lesson from the preceeding is, that when a city assumes control of one of its
monopolies, whatever mode of future management may be decided upon, whether public
or private, that management should be based on the principle that only a very moderate
surplus, if any, should be Obtained, and that the conditions attached to the franchise and
the prices exacted from consumers should be ﬁxed in order to bring about such a result.
Section 2.--Relati'vc Efﬁciency of Public and Private Servants.
This is probably the most important as well as the most difﬁcult subject to consider
in connection with the management of Municipal Monopolies.
It is cliﬁicult, from the state of affairs never being precisely the same in different
localities, and from the manifest obstacles in the way of arriving at truth when the only
persons who could give the desired information are those who are interested, who will
give us only such returns as they see ﬁt, for business purposes, to publish, unaccompanied
by any guarantee of their accuracy.
It is important, from the fact that, in the ordinary city, the industries we are con-
sidering do not yield such unlimited revenues that an incapable management cannot change
a paying concern into one with a deﬁcit; while an administration that is capable, but ~
corrupt, may so use the funds derived from their control of public industries as to intrench
themselves almost impregnably against the attacks of honest citizens. A notorious
example of this is furnished by the gas ring of Philadelphia.* Successful crime is the
most contagious of all diseases ; so that in such a case, the most important consideration
to be regarded is not the direct ﬁnancial loss, great as that may be.
Waterworks, street railways, etc., have attained their importance during the last
half century, thesame period that has witnessed the triumph of democratic principles of
government. We should, therefore, expect to ﬁnd, where the management of these
industries has been taken over by the municipality, that that management will partake
of the evil characteristics as well as of the good, belonging to “government by the
people.” This form of government is supposed to reﬂect very closely in the rulers,

* See Bryce’s American Commonwealth, Part v., Chap. 89.
69] ' , v 25

‘H ,1 m
the moral peculiarities of the ruled, Now, it may probably be set down with perfect
safety that the body of British electors, or the residents of British cities-are neither
more intelligent, more honest, nor less democratic than their compeers on this continent.
Yet it is generally conceded that British cities are more fortunate in their selection of
magistrates than are those of the United States or Canada. Why should this be so ’2
The piquant frankness with which American newspapers are wont to explain to
public servants their present and past failings is not calculated to inspire capable men
with much enthusiasm for civic honors. But what is probably of more importance
than this in determining the personel of our city councils as compared with those of
England, is our lack .of a wealthy class, who, having the time to devote to the manage-
ment of public affairs, enter- political life without any desire to make an income by it,
and thus maintain a comparatively high standard throughout the whole of public life.
Capable Americans are too busy making money to spend time in the unappreciated
labors of city management. In Germany, on the other hand, where a bureaucratic-
system calls the best men into public service, we ﬁnd public affairs better attended to-
than private. It would seem that in this matter “ we cannot spend our penny and keep
it.” In America, there has been an excessive application of intellect and ability to the
furtherance of private interests, and public interests have suffered accordingly.
As a result of this selﬁshness of the capable (with, of course, the usual honorable
exceptions) a poorer class comes to the front. This would not be so serious were it not
that upon the character of the head of a department depends so much of its efﬁciency.
The ordinary paid subordinate sees before him no very high or lucrative situation to be
atttained by exceptional brilliancy. It is not the custom to pay any civic servant such
a remuneration as for example many bank managers obtain , and while there may be but
few very good positions in private business, yet every employee feels that he may reach
one, and the chance nerves him to higher endeavor, and makes him satisﬁed with
smaller wages at ﬁrst. It thus happens that private concerns pay less salaries to
begin with and offer greater prizes in the end than public departments.
Besides the difference in possible remuneration, there is the difference in the way in
which advancement is to be obtained. The public servant knows that what his principal
desires of him is the quiet performance of his duties in such a way as not to attract
public notice, and the criticism which is pretty sure to accompany it. Nothing new is ‘
wanted ; above all, no experiments. In the routine of ofﬁce work, the public employee
sees more and more clearly as time goes by, the motto before him :
“ All hope abandon ye who enter here,” 7
and he relapses into a vegetative existence, waiting for his superiors to die that the way
to his advancement may be cleared. But this is not the only mode of clearing the way ;
and when he observes the potency of outside pressure upon his chief, he may give up
the attempt to rise by merit and may direct his attention to the procuring of the neces-
sary inﬂuence.
The private employee knows he is being watched closely by his principal ; a man who
understands the intricacies of the business, and whose repulse to a requisition for
increased salary is ﬁnal, until it is revoked by a conviction of the increased value of the
services rendered. With a knowledge of the absoluteness of this decision, the private
emplOyee sets himself to earn the increase instead of manipulating wires.
When civic ofﬁcials are exposed to dangers and temptations such as these, the with-
drawal of capable men from public life as representatives of the people, is the more to be
deplored. The public service is surely not less a duty calling for unselﬁsh action by those
competent to'manage its affairs, than would be its defence if physically assailed. In the
meantime, municipal politicians may very often be placed in one of two classes,‘ the honest
incapable, and the dishonest incapable.
26 ’ , ‘ [70

A!
The dishonest incapable goes into politics “forthe money in it,” and is the legiti-
mate result of the excessively wide franchise which has been very generally granted in
America with no guarantee for its intelligent use. This, and the extent to which federal
politics are carried into municipal affairs make the United States city his recognized
home. As a “ ward politician ” he is thoroughly in his element 3 and representing a small
constituency, he makes it his “ business” to know everyone in it. The honest, he can
often ,neglect 5 for they show their disgust of the way things are managed, and their
contempt for him and his ways by “not taking any interest in municipal matters ,”
precisely the course he would have them pursue. With those “ward heelers” who
sympathise with his view that “the city is made for the aldermen,” he has more difﬁ-
culty. ‘ But, by the long discipline he undergoes before he has reached the top, he has
learned the system of “give and take,” which is necessary to prevent “ unpleasantness ”
among his friends.
Another result of the long training he has undergone with the prize of the spoils
before him as an incentive in the race, is an experience which makes him more than a
match for the honest incapable who has .been placed in the council by a passing wave
of public interest produced by some impropriety more glaring than usual. As a result
of their combined efforts, we have the American system of municipal book-keeping.
Under circumstances in which truth is so hard to discover for the average citizen,
and he knows not whom to believe where anyone may be interested, it is important that
the central power should take steps to obtain accurate returns. And yet in the census
reports both of the United States, and of Canada, nothing of importance is shown in this
department. In Great Britain, the sessional papers give closer and more accurate figures;
but on this continent it is still possible for ofﬁcials to charge the expenses of one depart-
ment to such other department as is best suited for their purpose, e.g., the expense con-
nected with running electric light plant is sometimes put to the debit side of water works /
account, and cost of reﬁtting carbons, etc., to ﬁre alarm department.*
Now, it is evident that this outlay must be entered in the books somewhere, and it
just as evident that if there is no check upon him, the head of two departments, one
paying, the other losing capital, may render the unproﬁtable one less unpopular by
charging its deﬁciency to the former.
This may be done in all honesty, Where an electric light plant is being run at night
by the same engines as supply the water works during the day 3 a great saving is
effected, and who shall say exactly how much coal, labor, and wear and tear of machi-
nery should be ascribed to the cost of electric lighting and how much to waterworks?
This is a question for technical experts to settle, and there is evidently a consider-
able margin for honest disagreement. But if we ﬁnd that under such circumstances
none of the expense is charged to the electric lighting department and all to the water-
works, we may be tolerably sure there is some “mistake,” and to accept results so
obtained as the happy result of municipal control of electric light as compared with
private management is most unfair to the latter. '
Again, in the case of municipal waterworks, the city generally arranges a
schedule of rates calculated to just meet expenses and no more. What are expenses?
Should interest on the cost of construction be reckoned in the list? If so, what
rate of interest? (a) That paid on the construction bonds, of say ten years ago, when
money was dear, or (b) that paid on present cheaper loans effected by the city? There
are reasons for adopting either of the two methods and according to the rate decided
upon will the water rate be placed at a higher or lower ﬁgure.
But if we ﬁnd a city where the waterworks debt has all been paid, say by taxation,
and where accordingly there is no interest at all to pay, or, as is the general rule, part
of the debt is paid and part unpaid; if, in the ﬁrst case, no interest is taken into
account at all, and, in the second, only that paid on the still outstanding debt, it is evi-
dent that the water rate charged citizens will be less than if these interest items were

* See the statements of Mr. Francisco at the Electric Light Convention at Cape May, N.J., Aug. 19, 1890.
71] 27


debited 'to the waterworks account, as a private company would be obliged to debit
' _ them in order to make both ends meet. Where the citizens have thus taxed themselves in
order to obtain low water rates, it is scarcely fair to regard such reduced rates as a
triumph for municipal management.
Under any system of management, breakages must be accounted for when they
occur. But how about deterioration in value? A buried gas pipe has a life of so
many years, at the end of which it is useless. Some account should be taken of
this, and, as each year contributes to the destruction, so should there be an annual
estimate of the loss put by as a sinking fund to replace the pipe when necessary.
Companies take this into consideration and charge accordingly. The city ofﬁcial
does not always do so. Hoping it may not occur in his time, and desirous of pleasmg
his constituents by reducing the gas or water bills that always seem so large, he puts
off the evil day, on the principle “After me the Deluge.”
While considering the advantages that civic ofﬁcials have, or take for themselves,
as compared with the servants of a private company in rendering their accounts and
estimates, we must not neglect one great disadvantage. When the municipality owns
and controls one of the monopolies, it is the custom not to charge the city with the
amount of service it requires of that department, e.g. : if a city owns its waterworks,
it does not usually pay for water required for street sprinkling or ﬁre purposes ; while,
if a private company were carrying them on, the city would be obliged to pay for
both. _
Section 3.—-Some Comparative Statistics.
I How a system has worked in the past is perhaps the very best criterion of its value.
But to form an absolutely accurate estimate of past experience, we must be in possession
‘ of full information regarding it. This is evidently impossible. We can never know a
period in the history of an individual fully; for to do so, it would be necessary to
penetrate his thoughts; and even he could not enlighten us, for there are num-
berless outside inﬂuences continually at work upon him of which he is himself un-
' conscious. If impossible in the case of an individual, how much more so when we
consider an industry, a city or a nation. But the fact that we cannot hope to arrive at
absolute truth is surely no reason for ceasing our endeavors to approach it more
closely. ‘ The more uncertain our statistics, the more rough must be our conclusions
drawn from them. The science of the statistician is one of comparatively recent origin.
Its importance is becoming more clearly seen every year; more accurate methods are
being arrived at 3 and each succeeding Government census embraces many new depart
ments.
In the British “Parliamentary papers,” reasonably reliable ﬁgures may be found ;
but in America these municipal monopolies have not as yet been reached.* We must
therefore depend upon private enterprise for such knowledge as we possess regarding
their working in America, except in a few States having special Boards of Gas and
Electric Lighting Commissioners.
lVaterworks—Jn this department, credit is due to the very complete descriptions
and ﬁgures given in the “ Manual of American Waterworks” from which the following
facts are gleaned :—
Of the 1,960 waterworks in the United States, 818, or 41.7 per cent. are owned by
public corporations, and 1,106, or 56.4 per cent. by private companies; re
mainder unknown.
Of the 83 waterworks in Canada, 48, or 57.8 per cent. are owned by public corpora~
tions, and 35, or 42.2 per cent. by private companies 5 remainder unknown.
But although more than half the works are inthe hands of private individuals, yet,
owing to the large cities almost invariably owning their own water supply, the popula—
tion served by private works is only about one-half that served by public works.

* With the exception of a short notice of telephone service in the United States census of 1880.
28 ' ['72

Coming now to the prices charged for equal service by public and by private water-
works respectively, the editor of the “ Manual” ﬁnds the following differences :—
The average total family rate for 318 public works is $21.55 per year.
“ “ “ 430 private “ $30.80 “
so that the private charge is 43 per cent. more than the public charge.
In Canada the above charges are, public $521.07, private $31.43.
In Ontario “ “ “ $21.12, “ $25.01.
In Canada as a whole and in Ontario by itself, therefore, the private charge is 50
per cent. and 20 per cent. respectively, more than the public charge.
But if a system has cost more it is only fair that it should charge more for what it
supplies; but
In the United States, including the Paciﬁc States, the cost of private works per
family was 15 per eent. more, while they charge 43 per cent. more than public.
In the United States, excluding the Paciﬁc States,* the cost of private works per
family was per cent. less and they charge, 3133'; per cent. more than
public.
In Canada, the cost of private works is 42 per cent. less per family, and they charge
50 per cent. more than public.
In Ontario, the cost of private works is 35 per cent. less per family, and they charge
20 per cent. more than public.
In regard to the above ﬁgures, which shew so great a triumph for public, as com-
pared with private ownership of waterworks, the objection might be urged that they are
the returns for rich men’s requirements, and that the ordinary citizen does not require
water for a horse, or to wash a carriage, which are, it may be remarked, included in the
editor’s estimate of family consumption. A close examination of charges shews, however,
that little change in the above results would be eﬁected by taking into account the price
of the ﬁrst water tap merely.
Applying the criticisms of public management given on pp. 26-27, the advocates of
private control will immediately claim that these ﬁgures are of no value, since munici-
palities do not expect to meet interest on the whole cost of the waterworks, nor yet do they
provide a sinking fund for deterioration in value, that the plant must undergo from year
to year; and, therefore, that to the charges of public works, should be added yearly
a certain percentage of the cost price. As a matter of' fact, however, this is far from
correct. In sixteen towns and cities of Ontario, having public waterworks, 98%
per cent. of their cost is still unpaid; and an examination of American city ﬁnances
shew that we are perfectly safe in estimating the debt on public waterworks as
over 90 per cent. of their cost. The charges on water are usually placed high
enough to cover interest on actual debt 3 as a result, the only advantage possessed
by public works over private, in this matter of unpaid interest, is the interest on this
10 per cent. of the cost price; which at 5 per cent. would amount to one-half of one
per cent. per annum. A sinking fund is not often provided by civic administrators, the
cost of repairs being counted when they occur. On the other hand, however, many
cities are in the habit of raising part of their revenue from a surplus water rateﬂL so
that the charges of public works are thus higher than they need otherwise be.

* The reason for excluding the Paciﬁc States is that large irrigating projects are combined with the
water supply of towns. The difference there is six times as great as in any other group of states, the cost
of public works being 862 per family, and for private $275
1' Toronto has raised $290,000 in this manner during the past six years.
‘73] 29
ﬂ“
In favour of public charges also, is the greater sum paid by a city for the water
required for public purposes, 6.9., street sprinkling and ﬁre supply, where a private
company supplies the water, when compared with what is paid when the city owns its
own works. In the latter case but a paltry sum is charged to general taxation, often
nothing, seldom more than one-half of one per cent. on cost of the works. When
obtained from a private company, this water is charged for; the annual charge varying
from 1 per cent. on the cost price of the works, to 6 per cent. 3* the usual amount being
about per cent.
These additional advantages and defects of municipal waterworks, as compared
with private works, (a comparison which we are not able to institute with entire satis-
faction, partly because of the defective way in which civic departmental accounts are
rendered, and partly from the absence of collected statistics), might probably be set off
against one another. If so, the tremendous advantage of public over private ownership
of waterworks, regarding their cost and. the prices charged is evident from the ﬁgures
just given.
If the charges of public waterworks bore the same proportion to those of private
companies, as their cost bears to the cost of private works, the cities and towns of the
United States might on the average put by 5 per cent. of the cost of their works
annually as a surplus or sinking fund, those of Ontario, 11 per cent., and those of Canada,
25 per cent,’i‘ over and above any provision that they now make. The advantages of
public ownership are much more apparent in large cities than in small. The majority of
American cities, havinga population of more than 10,000, own their own waterworks. In
Great Britain also the large cities adopt the same policy, particularly those where a
reform in municipal government has recently been effected, e. (1., Birmingham, Glasgow
and Liverpool. From an early recognition of the intimate relation between the
general development of a city and its water supply, these cities have usually applied any
surplus arising from its management to a further reduction in the price. The Public
Health Act (Imp. Stat, 1875) permits local authorities to provide a water supply, if
they have none ; or, if the supply is inadequate, they may undertake the construction of
works by obtaining the consent of the Board of Trade.
Gets—According to returns given in an English Parliamentary Paper, there were,
in 1889, in the United Kingdom, 405 gas works owned by private companies, operating
with a capital of £38,000,000, and 173 owned by municipalities, worth £2l,600,000.
The average production, in cubic feet, of gas was, for the private works about 147 mil-
lions, for the public 171%— millions, or one-tenth more,-—z' 6. public works are larger than
private. From each ton of coal used the private companies get 10842 cubic feet of gas,
while the public works get 9,975. This difference may arise from the different grades of
coal used, or from the different processes used in extracting the gas. A process which
extracts more gas from coal leaves the residuals less valuable for the purposes to which '
they are now applied, 6.9., the production of dyes, ammonia, etc. ,and it is a question how
far the baking process should be carried in order to give the best ﬁnancial results. The
difference in policy pursued in this respect seems to have been decided upon some years ago;
as the average since 1881 has been for private works 10,235 cubic feet of gas, per ton of
coal, and for public works 9,986 cubic feet. A matter of much more importance, as
showing the comparative efﬁciency of public and private management, is the amount of
gas actually consumed, as compared with that made, the difference representing the leak-
age that occurs. The private companies delivered 92; per cent. of the amount made, the
public 91% per cent., the private companies having the advantage of about 3-5ths of one
per cent. in the efﬁciency of their systems in preventing loss of gas. Both private and
public are gaining in this particular, as the average for the last 8 years has been 91.92
per cent., and 91.08 per cent. respectively, or a gain on the part of the private companies
of g of one per cent., and on the public of one per cent. The public works are thus
coming up to the private in this respect.


* The latter is the charge in Brantford, Ontario.
'1‘ Calculated from the ﬁgures given in the “ Manual ” before referred to.
30 [74.


This greater loss through leakage experienced in the public gas works may neces-
sarily accompany a division of the supply among a greater number of consumers, and the
increased number of ﬁttings rendered necessary by such minute subdivision. The average
number of consumers on private works is 2,787 5 the average number of consumers on
public works is 6,646 3 so that the average amount used by each customer on private
works is 52,800 cubic feet, while the average amount used by each customer on public
works is 27,500 cubic feet. With the same sized families, etc., the public works will
require almost twice as many services as the private. The public works seem to be
administered as effectively as they would be if they were under private management,
judging by these results. Further, the public provision of gas has had the effect of mak-
ing its use in small quantities much more general than where private companies provide
the supply. Recognising the importance in city life of this extension of the use of gas,
Birmingham is completing a system by which it can be delivered in as small quantities as
one pennyworth at a time.*
The cost of private works was about £80,000 each. Public works each cost half as
much again, while, as we have seen, dividing one-tenth more gas among twice as many
people. \Vhether this greater cost of the municipal works was necessary under the cir-
cumstances is a question for experts.
The public works, in addition to covering expenses and establishing a fund of 412- per
cent. to 5 per cent. per annum to pay the interest on loans, annuities, sinking fund, etc.,
have poured into the civic treasuries in eight years the sum of £3,550,000, or seventeen
and three-quarter millions of dollars, as a surplus, which has gone to the lessening of the
burden of general taxation in their respective cities. But the price of gas in municipal-
ities providing their own supply is necessarily enhanced by this method of raising money,
which is virtually a tax on coal.
Notwithstanding the increase in the price of gas supplied by the municipalities in
order to obtain this surplus, and also the fact that in many places the authorities provide
the public lighting free, the price of gas from the public undertakings is less than that
charged by the companies, as the following returns for the years mentioned shew :—
A'verage't receipts per thousand cubic feet of gas sold.
1889 1888 1887
s. d. s. d. s. d.
Companies... . . . . . . . . . . . 3 7.42 3 7.9 3 8.52
Local authorities . . . . . . . . 3 3.67 3 3.12 3 3.34
Companies’ overcharge. . . . 3.75 4.78 5.18
If the expenses of municipalities in managing their works are less than those of
companies, it may be a valid excuse for the latter to charge more. Let us then compare
expenses :—
Ewpenses per thousand cubic feet of gas.
1889 1888 1887
s. d. s. d. s. at.
Companies 2 6.74 2 5.65 2 6.68
Local authorities . . . . . . . . 2 4.4 2 3.14? 2 3.67
Companies’ over-expense. . 2.34 2.51 3.01
s. d. s. d. 8. cl.
Companies’ proﬁts . ....... .. 1 0.68 1 2.25 1 1.84
Authorities’ do . . . . . 11.27 11.98 11.67
From their proﬁts, companies paid average dividends of £8 11s. 0%d., per £100,
During the previous year they paid £8 10s. llg-d.


*Journal of Gas Lighting, Dec. 9th, 1890.
'l'Lowest price of private gas was 1s. 9d. at Plymouth, where a dividend of 12;]; per cent. was also made
“ “ public “ 1s. 10d. at Leeds, “ surplus of £796 “ “
Highest “ private “ 7s. 6d., and of public 6s. 3d. per 1000 cubic feet.
75] ' 31

.‘L
100 companies paid 10 per cent. dividends 3 and 61 companies paid 10%;--17% pe
cent.*, the higher dividend usually accompanying a lower price, according to the “ slid
ing scale ” plan, to be subsequently described. The highest percentages under a sliding
scale were 16 per cent. by the Harrowgate Compan y, and 14% per cent. by the South
Metropolitan Company.
In 12 cities the public gas works yielded a surplus of £290,000. In Manchester it is
proposed to turn the large gas surplus over to the water works committee to meet out-
lays by that department. In view of the fact that there are 50,000 people in Manchester
who do not use gas, while everyone uses water, it seems a peculiar way to pay for water-
works. The gas consumers may, however, console themselves with the knowledge that
their municipal gas works are to be put on a thorough business basis regarding expenses,
etc., so that they will know exactly how much their special tax is.
Of 19 English city companies the average charge for gas is cents per thousand,
and the cost of manufacturing is estimated to be 37% cents.
In America, of 1,000 gas undertakings, only ﬁve are under municipal control.
Of 683 gas companies in the United States, the charge per thousand cubic feet was
as follows :—+ i
7 companies charge $1.00 32 companies charge $1.50
24 “ “ $1.75 148 “ “ $2 00
57 “ “ $2.25 145 “ “ $2.50
20 ‘ “ “ $2.75 86 “ “ $3.00
26 ~ “ “ $3.50 19 “ “ $4.00
120 companies charge intervening prices.
It is evident that the cost of gas, being largely dependent upon local conditions, must
vary greatly in different localities. Is it not, then, somewhat remarkable that so many
companies should have such gracefully symmetrical prices ’5 Probably “round numbers ”
are set for ease in calculation, irrespective of the price of production 5 and, as companies
are not prone to sell at a losing price, customers must wait for a reduction till production
k price is clearly below the next lower “notch ” of 25 or 50 cents per thousand.
According to the Report for 1889 of the Board of Gas and Electric Light Commis~
sioners of Massachusetts,i the cost in that State, of making coal gas is 40—57 cents per
thousand cubic feet, and of water gas, 46—55 cents, representing the cost in the holder
in each case. An increase of 50 cents per ton in coal, or of one cent per gallon in oil,
makes an increase of ten per cent. in the cost of coal gas and water gas, respectively.
In Massachusetts, the average§ price charged in 1886 was $1.7 2 3 in 1887, $1.66 1.
in 1888, $1.56 3 and in 1889, $1.49,]; per thousand, showing a gradual decrease.
During 1889—
203 million cubic feet were sold at $1.00 per thousand.
“ "' u
14 u 7 cc a u
n u u cc
n 4c M ' u
c. u “ ' u
u u (6 s4
During the year, June 1888-89, these companies accounted for 91.65 per cent. of the
gas made 3 the leakage being thus very nearly the same as with the En
and municipalities before referred to.
The company in N ewburyport charged an average price of $1.98 per thousand, pay-
ing stockholders a dividend of 18 per cent. on their invested capital ; although to do so
meant an increase of $1.45 per thousand over production price.
glish companies
1821*0ghe latter percentage was paid by the Company at Kingston-upon-Avon, operating under the Act of
'1‘ C. W. Baker : Monopolz'es and the People, 64.
Iﬁ‘ifth Annual Report. ]_?ublic Document 0. 35. Boston. 1890.
§ In 1889, eleven companies paid no dividends, and seven paid from surplus of previous years.
s2 [76
In Pittsﬁeld, the company graciously lowered the price from $1.99 to $1.96. They
still made a proﬁt of 16 per cent, 3 to obtain which they charged 78 cents more than the
production price.
In Taunton, the shareholders, in order to give themselves 15 per cent. dividends,
charge $1.52 ; which is 36 cents above cost of production.
The Adams Co. charge $2.39 per thousand, when they might charge 62% cents less,
\did they not pay a yearly dividend of 20 per cent.
The taxes paid by the companies in the State amounted in 1889 to $269,300, an
average of 9.68 cents per thousand cubic feet sold. This was an increase over the
,previous year of about $3,000, while at the same time it was a decrease of one cent per
thousand feet sold. r ~
The several companies increased their net earnings from $1,498,000 in 1888, to
$1,625,000 in 1889. After paying dividends of $941,400 in 1888, and $1,021,800 in
1889, there was left a net surplus of $547,000 in 1888, and $603,500 in 1889. Some
of the gains that permitted this were '—an increase of $83,000 in the gas sold,96
the net cost of coal and residuals? remaining about the same; the receipt of $54,000 for
electric lighting, in place of $23,000 the previous year 5 a reduction of $10,000 in oﬁ‘icers’
salaries, $20,000 in wages of meter-takers, collectors, etc., and $14,000 in wages at works.
This great reduction in wages marks a further difference between the systems pur~
sued by public and by private managers. In public works, higher wages are usually paid
than in private. for the rougher kinds of work. In some cities, a minimum wage per day
is ﬁxed by the Council, e.g., in Chicago a by-law exists, making $2 per day the least wage
to be paid by the lighting commissioners. Companies, of course, get as cheap labor as
they can.
A comparison has been instituted between the Boston Gas Company’s works and the
Municipal Gas works of Philadelphia, which is not supposed to end in confusion for the
latter.
The output of Philadelphia was 2,173 million feet in 1880, and 3,150 million feet in
1889—an increase of 45 per cent. The output of Boston was 7122L million feet in 1880,
and 1,312 million feet in 1889—~an increase of 853],» per cent.
Each charged $2, in 1880; in 1889 Philadelphia charged $1.50 and Boston $1.30.
Philadelphia provided free gas for publcc purposes ; which, if paid for, would have
amounted to 26%0. per thousand on all the gas made in 1889, and to 26ic. in 1890. The
surplus that the works earned for the city amounted in 1889 to $807,000, or 25%0. per
thousand feet sold; and in 1890 it was $893,000, or 270. per thousand.
Thus the Municipal works charged 51-50. in 1889 and in 1890 530. per thousand more
than cost price; which was therefore 98%0. in 1889 and in 1890 about 970. per thou-
sand cubic feet. If they had to add to this a tax of 60. per'thousand (the amount paid by
the Boston Company),the public works of Philadelphia would still have been able to sell
gas at $1.05 in 1889, and $1.03 in 1890. The difference between this and the
price they actually charge, is. so much gain to the city treasury.
In Boston the company paid its shareholders dividends during 1889 of $267,800, and
wrote off a construction charge of $111,000.j"_ These items together are over 280. per
thousand on the gas they made during the year. It would seem therefore that the Boston
Company could afford to reduce the price to the neighborhood of $1.00 per thousand.
‘The difference between this and the price charged goes into the pockets of the share-
holders instead of into the municipal coffers as in Philadelphia.
What the advocates of private ownership must prove is not that private management
is more economical than public, so far as the cost price of gas is concerned, although even

*There was an increase of $127,000 in the amount of gas sold to private parties, but a decrease of $44,
000 in the amount of gas sold for public lamps. 1
i
+ Residuals left from the gas making were sold foré the cost of the cal, etc., used in 1888; and in
1889, they7 were sold for 36 per cent. of the cost.
12 Fifth Annual Report of Gas and Electric Light Board for, Massachusetts p. 122.
77] as


this seems not clearly proven. They must shew that the service rendered to the ordinary
citizen is as cheap by the one method as the other. YVhen the Philadelphia citizen pays
$1.50 for a thousand feet of gas he pays 500. of it as a tax which makes his other taxes
that much less ,' but when the Boston man pays $1.30 his other taxes are not decreased at
all, except perhaps to the extent of the 60. just mentioned. The result is that the latter
really pays for his gas $1.24 where the former pays $1-05- It is idle to Claim that the
190. difference is due to greater cost in Boston, in view of the balances shown by the com-
pany. It is equally unsatisfactory to explain it by the greater efﬁciency of the company’s
servants, when we observe the results of British experience in gas and American experi-
ence in waterworks previously quoted. If the charge of the private company were but a
few cents more than that of the municipality, and some system of keeping it at that point
could be devised, it would seem more advantageous that the whole matter should be re-
moved from the sphere of local poiitics. It can never be wholly removed, however, for
the charter must be renewed periodically, and the longer the periods that elapse, the more
can the company afford to spend in securing the return of its supporters in the particular
year when the charter falls in, although a lengthened absence from the political arena
must make such an object more difﬁcult to accomplish.
In the French capital, the gas company in 1855 got a charter for 50 years, which
ﬁxed the price of gas at a certain point. The improvements in manufacturing soon greatly
lowered the cost of production upon which the old price was based; and during the
troubles of 1870, the shareholders were obliged to recast the agreement so as to divide
with the city all proﬁts above 11,000,000 francs per year. Commercial causes have again
cheapened gas, and the company now offers to lower the price of gas by one-sixth, and to
accept a lower annual proﬁt, on condition that the concession is renewed to them for forty
years, and that they may employ if they choose, electric light. The objection to this plan
is that it would involve the retention for forty years of the price now ﬁxed.
A better system is that known as the sliding scale,* by which the percentage proﬁts
of the shareholders may increase, but only in proportion as the price is lowered. It thus
becomes the interest of the company to supply the gas at the lowest possible rate.
In this simple form it has been adopted by the British Parliament in ﬁxing the
charters of many companies ; the usual arrangement being that, for each reduction of one
penny per thousand feet of gas, the company may increase its dividends one quarter of
one per cent. over a certain stated dividend. By this means the average price of gas in
London which was $1.08 per thousand was lowered to 640. in 1885. Of course the difﬁ-
culty in carrying out such a scheme lies in the necessity of obtaining accurate statistics
from the company, with whom there is always a tendency to over-capitalization. Some
advocate municipal arrangement as a refuge from this difﬁculty ; but the Board of Trade
returns which are given in Great Britain, seem to possess tolerable accuracy.
In Massachusetts a different method is pursued. The Act of the Legislature, es-
tablishing the Board of Gas Commissioners (Acts of 1885, ch. 314, s. 9), provided that
“ upon the complaint in writing of a mayor of a city in which a gas company is located,
or of twenty customers of such company, either of the quality or price of the gas sold
and delivered by such company, the board shall notify the company of such complaint,
and shall, after notice, give a public hearing to such petitioner and such company, and
after said hearing, may order, if they deem just and proper, any reduction in the price
of gas or improvement in quality thereof.” Their decision is ﬁnal, unless specially
reversed by the State Legislature. These wonderfully wide powers seem to have been
exercised with moderation ,' and while apparently giving general satisfaction, have
settled many difﬁcult questions that have arisen since the organization of the commission
in 1885.
The commission consists of three members appointed for three years by the State
Governor, subject to approval by the Council. The returns required annually from

_ * A sliding scale of prices dependent on the price of coal was adopted by Congress in its agreement
With the WVashmgton gas company ; but the company soon reduced its prices to a considerably lower rate
than that called for.
3 (M.)
34 [78


each company include the amount of its authorized capital, its indebtedness and ﬁnancial
condition on Jan 1st, and a statenient of its income and expenses during the preceding
year, together with its dividends, paid or declared, and a list containing the names of all
its salaried ofﬁcers with the annual salary paid to each; the return to be signed and
sworn to by the president and treasurer of each company, and a majority of its directors?‘<
In Ontario, the Revised Statutes (1885, ch. 164), provide that any ﬁve or more
persons may form a company for supplying gas, water, or both, to any municipality by
obtaining the consent of the municipal council. The municipal authorities may take
stock in such company, thus securing representation on the Board of, Directors, an im-
portant provision for the safe-guarding of city interests. The period set as the outside
limit of the company’s existence is 50 years, and the municipal authorities may at any time
acquire the works of any company incorporated after March, 1882, by paying such com-
pany the actual value thereof as determined by arbitration, “ having regard to What the
same would cost if the works should then be constructed, or the property then bought,
making due allowance for deterioration, wear and tear, and making all other proper
allowances, and shall increase the amount so ascertained by 10 per centum thereof, which
increased sum the arbitrators shall award to the company.”
Electric Lighting—There are about 1,350 electric lighting plants in America, of
which at least 50 are owned by municipal authorities. In spite, however, of the
abundant discussion in recent years as to the relative merits of municipal and private
management, the data with which we are presented for the purpose of forming an opinion
are less satisfactory than in any of the other industries we are now considering. The
returns of cost, etc., seldom take account of interest on money invested in the plant, or
mention any appropriatiOn for deterioration in value, or for the purposes of a sinking
fund; yet to make any useful comparison, these must be estimated. In Chicago, the
electric lights were said to cost $73 each, per year, burning every night all the night
through. At an Electric Light Convention, the superintendent of the city works was
charged with arriving at these results by “ neglecting taxes, water rent, interest on invest-
ment, insurance, repairs, depreciation or renewal of plant in general, and by charging
the wages of the electric light linemen to the ﬁre alarm telegraph department.” It was
argued that, if these were properly accounted for, the cost would be $190.63 per year per
lamp. The superintendent, though present, had too severe a cold to reply. In answer
to the writer’s application for information, one month later he was “preparing a reply 5 ”
but half-a-year afterwards, when another enquiry was made, he “ regretted that the mayor
had forbidden the heads of departments from giving statistics regarding municipal mat-
ters, except what is given in the annual reports.” Many other places seemed to have
arrived at about the same degree of accuracy.
Where lighting plant can be supplied with power from works already owned by the
city, as in Ypsilanti, Michigan, where they are managed in connection with the city water
works, evidently they can be run more economically than would be possible in a separate
establishment. Judging by the returns of the Massachusetts Gas and Electric Light
Commissioners, the business in that State is not exceedingly lucrative. Fourteen com-
panies in the State paid dividends averaging about ﬁve per cent., and only twenty-one
companies out of sixty paid any dividends at all. There are no municipal plants in Mass-
H.ChUSGttS,'l' so that it is not possible to institute a comparison. Indeed the whole electric
light bUSiness has hitherto been developing so rapidly, with ever-changing conditions, that
scarcely any of the estimates of cost in the past are of use for the future. The air is
already clearing, however; and it will not be long before more adequate material will
be afforded. In the meantime, municipalities should avoid any action that would tie their
hands for the future.

* A statement of the form in which the information is required from Gas Companies may be found at
the close of the Annual Report of Jan. 1887, and from Electric Light Companies in the report of 1889.
1- An Act to permit cities and towns to provide their gas or electric light has repeatedly been brought
before the State Legislature, and will probably pass sooner or later. It provides that if two-thirds of the
city Council for two succeeding years, the mayor for two years, and a public meeting of citizens favor such
action, that bonds may be issued for not more than 20 years, and to the extent of not more than 5 per cent.
of the ratable property of the town, I
79] . 35
W

In Great Britain, the Electric Lighting Act of 1882, (45 8t 46 Vict. c. 56), provides
that the Board of Trade may license local authorities or private companies, with the con-
sent of the local authorities, (and without it, if unreasonable opposition is offered), to
provide electric light, but it cannot confer an exclusive right, as the district may be again
granted to another. The undertakers of the enterprise must annually publish such
returns as the Board of Trade calls for. See. 27 provides that the local authorities may
require a private company to sell the plant, etc. , at its market value, “ but without any
addition in respect of compulsory purchase, or of good will. or of any proﬁts which may
or might have been or be made from the undertaking.” Such requisition to sell can
be enforced only at the end of forty-two years from the granting of the company’s
charter, and at the end of every subsequent period of ten years,* unless shorter periods
are speciﬁed in the charter. The value is determined by arbitration. Secs. 13 and 14 give
local authorities a veto on the stringing of wires, breaking up of streets, etc., subject to
an appeal to the Board of Trade. Private initiative has had the ﬁeld almost to itself
during the two years since the recent amendments, and it is signiﬁcant that during 1890
not one municipal plant was started. 1'
Street Cara—In Great Britain, out of 31 municipalities which own their street cars—-
with a quarter of the total mileage in the kingdom—23 administer their own property.
Where the road has been leased to a company, the city in granting its charter has usually
paid more attention to the obtaining of an eﬁ‘ective service than to great ﬁnancial gain.
In Glasgow, the city built the road in 1872, and leased it for twenty-two years to a com-
pany on condition of paying interest on the city’s investment, establishing a sinking fund
sufﬁcient to pay the expense of building by 1894, and the payment of 4 per cent. of income
to keep tracks in repair, together with a rent of £750 per mile of street in the centre of
the city. For new lines in the more sparsely settled outskirts, much less is paid. Since
1880 the company has done well. The charges were to be not more than one penny per
mile, and some runs of much more than a mile used by labouring men and artizans were
also to be a penny. Morning and evening cars for workmen run for about one cent per
mileJL.
In Birmingham, “the city builds the street railways in order to keep control of its
streets_”§ In Liverpool, the company leasing the track pays about 10 per cent. of its
cost, as a rental. In all these cities the tracks are laid and kept in repair by the corpo
ration, and of all may justly be said as the city engineer of Liverpool reports of his city.
“The tramways do not form the slightest impediment to trafﬁc, even to the narrowest
wheeled vehicles.” The difference between their cities and ours in this respect is very
striking, and the attention of American municipal and street railway authorities is
respectfully directed for the millionth time to the subject.
In America, there are no street railways operated by local authorities. In Toronto,
in 1861, a franchise was granted to a company for thirty years, at the end of which
time the city could assume the property on payment of its value to be determined by
arbitration. The city decided to take over the road in 1890; but while the future
action of the city has not been deﬁnitely settled, the franchise will probably be again
leased for a percentage of the gross receipts. This is the best form of lease; and is
becoming more and more general in its adoption by American cities. In 1884 the New
York Legislature passed an Act permitting such compensation if the franchise was sold
by auction. In the city of New York the aldermen knew how to dispose of the Broad_
way franchise in a better way, and the result was that the city got nothing. This led
to the passage of a State Act (Laws of 1886, Cap. 65 H) making it compulsory that the
sale of any street railway franchise should be “ at public auction to the bidder who will'

*In the Act of 1882, the period of taking over was at the end of 21 years, and every subsequent 7 year;
This seems to have been considered too short, and by an Act of 1888, the periods were changed to those
given in the text.
1‘ Journal of Gas Lighting, Dec. 30th, 1890.
1 Glasgow, (1. llfum'ctpat Study ; Albert Shaw, in The Century Ilfagazz‘ne, March, 1890.
§ Julian Ralph, in Harper’s, June, 1890.
\| With amending Acts of 1886, ch. 642, and of 1889, ch. 564,
36' [so


agree to give the largest percentage per annum of the gross receipts,” and ““ the said
bidder, who may build and operate the road, shall keep accurate books of account of its
earnings, which books shall at all times be subject to the inspection of the local authori-
ties.” Under these provisions,* franchises have been sold for as high as 27 per cent. of
the gross receipts. This plan, by which receipts from the road are spread over the years
during which the franchise runs, seems preferable to the mode adopted in New Orleans
where a lump sum was accepted]L The great difﬁculty with the “percentage of gross
returns system,” is, of course, the unwillingness of a company to extend their line into
suburban districts where an extension is necessary, but will not pay very well, or perhaps a t
all. As has been previously shown it is difﬁcult and unwise to introduce a new company ;
and the city authorities are thus at the mercy of the company in possession, which may,
by its refusal to accept reasonable proﬁts, paralyze the city’s growth. \Vhat can the city
do but make any terms the company requires? This would be as unfair as to give the
city power to compel the company to extend its lines. 011 the other hand, if the street
railway shareholders own property in a suburb which they are desirous to “boom,” they
may attract inhabitants by special rates. \Vhen they have sold out their properties
they may withdraw the service, to the ruin of the citizens who have removed there. It
has been well observed that the fact that this has not occurred more frequently is an encour-
aging example of commercial'probity. Some sort of government commission is evidently -
necessary to regulate such matters, as well as to exercise a general supervision over this
rapidly developing industry. It may be that the difﬁculties arising from the determining
of earnings, the inspection of books, the employment of labour, or the reduction of fares,
etc., may lead to an assumption by municipalities of this industry as the easiest way
out of the difﬁculty.i
Section I V.-—Some Conclusions.
The ﬁnancial results of such comparison as we have been able to institute seem then
to indicate :-—- ‘ _
1. That water supply is an undertaking in which municipal management has been
eminently successful, both in America and in Europe, and in both has yielded large
ﬁnancial returns, which have been used to lighten the burden of general taxation 5 but
that there should, if possible, be a lowering of rate required from the more needy, by, if
necessary, a higher charge for such additional services as are practically luxuries.
2. That while the municipal direction of street railways has been attempted but sel-
dom in Europe and never in America, street car service is a source whence large
revenues might be derived by great and growing cities, revenues which may be obtained
either through the power of control rendered necessary by their public character, or by their
direct operation on the part of the city. This latter course may be rendered necessary by
the difﬁculties in the way of the former; but in any event street railways should not be
operated with a view to avery large surplus as this would involve a special tax on a class
not the most able to support it.

3. That the gas industry, where undertaken by the municipal authorities, has been as
successful as when in private hands, and has, in addition, provided large sums for the
local treasury. The tax on consumers is perhaps not more inequitably distributed than
is ordinary taxation, but an attempt should be made to furnish a certain amount of the
service cheap enough to be within the reach of all.
* Additional provisions exist prohibiting the sale of a street railway franchise in a city of more than
250,000 for a less yearly payment into the treasury than 3 per cent. of the gross receipts for the ﬁrst ﬁve
years after the commencement of operation, and 5 per cent. thereafter.
+ The company maintaining the entire paving of the streets traversed by its lines, however.
i The rapid increase in street railway proﬁts is illustrated by the following ﬁgures for the State of
New York: Net income 1889, 5.89 per cent., 1890, 6.24 per cent. on capital stock ; dividends in 1889,
4.41 per cent., 1890, 4.67 per cent. ; surp1us,'1889 $518,000, in 1890, $596,000 ; net earnings per passenger,
1.18 cents in 1889, in 1890, 1.27 cents; net earnings per mile of road, 1889 $7,319, in 1890, $8,013, Report
of Railroad- Oonwntssioners, Vol. II, p. 70. 1890. . ‘ ‘
811 _ . 37

a; h_n_' L
4. That electric lighting is still in too unsettled a stage for us to be able to draw
deﬁnite conclusions regarding it. There are indications that under ordinary conditions
it will pay a town better to lease the franchise, but Where the industry can readily be
joined to one already in the possession of the municipality it can often be managed more
economically than by private enterprise.
5. That of telephone service so little is yet known that though its peculiarities call
for‘more than the ordinary amount of public control, it would be unwise to attempt
municipal management.
The above are but general conclusions, and would, in their application to any particular
place, be modiﬁed by disturbing local conditions which may be so different from those
that are usual as utterly to destroy their validity. N o absolute rule can be laid down,
and what has been said is said only in the hope of making the determination of these
problems more easy. That 'even general results may be helpful cannot be doubted, and
the writer regrets that these cannot be rendered more accurate owing to the paucity of
reliable statistics. This lack of statistics is the result of the newness of the con-
ditions involved, and must continue till there is fuller recognition of the importance of
these industries. They have passed the bounds at which private attempts at collecting
information can be at all effectual. Detailed governmental returns are absolutely
necessary.*

BIBLIOGRAPHY.
A.--Rnron'rs, are.
Brantford, Ont. —-Waterworks By-laws.
Boston, Mass—Waterworks Report, 1889.
“ -—Report of the Special Committee on the Use of Streets, 189 .
“ -Inaugural address of Mayor Matthews, 1891.
Chatham, Ont.—\Vaterworks By-laws.
Detroit, Mich—Annual Reports, Financial, etc.
Dundas, Ont—Waterworks Bylaws.
Hamilton Ont—Street Railway By-laws.
“ --\Vaterworks Report, 1889.
Kingston, Ont.—-Waterworks By-laws.
London, Eng.--Report of the County Purposes Committee (water supply), 1890.
“ --Review of the First Year’s work of the County Council (by the
Chairman), 1890. '
Massachusetts—First six Reports of the Gas and Electric Light Commissioners,
Boston, 1886-1891.
Montreal, Que—Annual Reports, Financial, etc., 1888.
“ —-Street Railway By-laws.
“ --Waterworks Reports, 1889.
New Haven, Conn—Inaugural address of Mayor Sargent, J an. 1st, 1891,
New Orleans, La.--Comptroller’s Reports, 1888, 1889.
“ ——Street Railway Charters.
New York State Railroad Commission, First and Eighth Annual Reports. Albany,
1884-1891.
Ontario Commission on Municipal Institutions, Reports of, 1888, 1889.
Philadelphia.--Annual Financial Report, for 1889.
Reports from Consuls of the United States, June, 1890.


*The writer wishes to acknowledge the courtesy and ready response he has met with in his search for
information, and particularly to thank the followmg gentlemen for the trouble they have taken :~—VV. S,
Allen, clerk of Board of Gas and ElectricLightmg Commissioners, Mass; M. J. Francisco, president
Electric Light Co., Rutland, Vt. ; W. HZLIIIlltOIl,‘ superintendent Toronto Water ‘Works; R. J. McGowan,
secretary Fire Department, Toronto ; and C. It. Stump, vice-president Street Railway Pub. (30., New
York ; and also to acknowledge his debt to Professor Ashley for hints received during the preparation of
the essay and care bestowed upon the correction of the proof.
4 (in)
38 [82

A.—-—REPORTS, Era—Continued.
Toronto.-—-Street Railway Charter, Statutes and Agreements, 1861-1889.
“ --Street Railway Arbitration.
“ —Street Railways, Report of Deputation to American Cities, 1890.
“ ~Treasurer’s Reports, 1888, 1889.
“ -—Waterworks Reports, 187 8—1889.
Ypsilanti, Mich.--Council Proceedings and Report of Water Commissioners, 1890.
B.--—PER10D10ALs, MAGAZINES AND TRADE JOURNALS.
American Gas Light Journal, New York.
Economist, London, Eng.
Electrical World, New York.
Electrician, London, Eng.
Engineering Record, New York.
Journal of Gas Lighting, Water Supply, etc., London, Eng.
Journal of the English Board of Trade, London, Eng.
Monetary Times, Toronto, Ont.
Street Railway Journal, New York.
C.——PAMPHLETs AND MONOGRAPHS.
Fabian Tracts. Facts for Londoners. 1889.
Foote, A. R. Municipal ownership of Industries. \Vashington, 1891.
Francisco, M. J. Municipal Lighting. Rutland, Vt., 1890.
Godkin, M. 'Municipal Government of New York. North Am. Review, Oct. 1890.
Low, Hon. Seth, The Problem of City Government. [Notes supplementary to Johns
Hopkins Studies, N o. 4]. Baltimore, 1889.
Marshall, Prof. Alfred. Some Aspects of Competition. London, 1890.
Ralph, Julian. Birmingham, the Best Governed City in the World. Harpers’,
June, 1890.
Shaw, Albert. Glasgow, a Municipal Study. Century Magazine, March, 1890,
“ London. Century Magazine, Nov., 1890. ,1
Whipple, F. H. Municipal Lighting. Detroit, 1888. ‘
J
D.-——BOOKS.
Adams, H. C. Relation of the State to Industrial Action. Publications of Am.
Econ. Assoc, vol. I. Baltimore, 1887. e
“ Public Debts, (Part III, Chapters 3 and 4). New York, 1887.
Baker, M. N. Manual of American Waterworks. New York, 1889-90. 5
Baker, 0. W. Monopolies and the People (Chapter 5). New York, 1889.?
Bryce, J. The Arggrican Commonwealth (Chapters 50, 51, 52, 88, 89).* London
18 . ’
Ely, R. T. Taxation in American Cities. New York, 1888.
“ Questions of Today. New York, 1888.
Farrer, Sir T. H. The State in its Relation to Trade (Chapter 10). London, 1883,
Howells, W. D. A Hazard of New Fortunes. A novel. (Part V, Chapters 3 and 5
a pgigture of New York during a street car strike). New York,
18 . ’
James, E. _J . The Relation of the Modern Municipality to the Gas Supply. Pub-
lioations of Am. Econ. Assoc, Vol. I. Baltimore, 1886. ’
Leroy-Beaulieu, Paul. Traité ole la Science des Finances (4th ed., Vol. 1., pp. 108-
110. 751-2). Paris, 1888.
Mill, J. S. Political Economy (Book V, Chapter 11, Section 11).
Roscher, W. System der Finanzwissenschaft 158, pp. 662-665). 2nd ed
Stuttgart, 1886. .
Toynbee, Arnold. The Industrial Revolution (pp. 1-27, 72 ~125). London 1887
Wagner, A. Volkswirthschaftslehre, Erster 'l‘heil, Grundlegung (2nd ed., §§ 14:6 152.
171, 177). Leipzig, 1879. ’ ’
“ Finanzwissenschaft, Erster Theil (3rd ed., §§ 201, 267). Leipzie 1883,
.. “ Zweiter Theil (1st ed., § 301). Leipzig, 1881i.
wearer, ear remark?
new is “9"”
PUBLICATIONS or
Tan AMERICAN ACADEMY or POLITICAL AND SOCIAL Solemn,
No. 229.

Issued Fortnightly. July 12, 1898.
."i 1 e '
F‘ . .e .9 _ 1- , " \
I 1 1,44” '7 If . J is" ‘ e' 3 1! “NJ.
,4" d "
,4 II I (i! .5 A .2 .
3"s i. ‘ ' .‘ Web-4,4.- . ~’
W H .1 y
. . - . eerie» .e’ ,
The Mummpahty and the Gas Supply,
As' Illustrated by the Experience of Philadelphia.
' BY ,.
L. S. ROWE, PH. D. -
Assistant Professor bf Municipal Government at the University or Psennylvania.

A PAPER SUBMITTED TO THE
AMERICANACADEMYOF POLITICAL AND SOCIAL SCIENCE

* PHILADELPHIA :
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. 0N , t I
MUNICIPAL QUESTIONS
The Municipality and the Gas Supply as Illustrated by the Experience of Philad
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The Greater New York Charter - _ ' {5
By JAMES W. PRYOR, Esq., Secretary of New York City Club. A
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American Academy of Political and Social Science #
STATION B, PHILADELPHIA
__ THE
MUNICIPALITY AND THE GAs SUPPLY,
AS ILLUSTRATED BY THE EXPERIENCE OF PHILADELPHIA

The recent decision of the mayor and councils of Phila-
delphia to lease the gas works to a private company marks a
change of policy of more than local importance. That the
third largest city in the United States should decide to
relinquish the control of one of its public works, after over
forty years of quasi—municipal management and ten years
of complete municipal ownership and operation, will natu-
rally be construed as a confession of the inability of public
authorities to administer public works successfully, or at least
as an acknowledgment of the superiority of private over pub-
lic management. For this reason, if for no other, the con-
ditions under which the change has taken place deserve
,more than passing notice. A further element of interest
presents itself in the fact that the abandonmcntof municipal
management illustrates, with great clearness, the attitude
of the population of our large cities towards municipal
affairs.
The friends, as well as the opponents of the lease were
generally agreed that the results of municipal management


[301]
2 ANNALs OF THE AMERICAN ACADEMY.


of the gas works were not encouraging. This conclusion
was reached, however, without a careful examination of
the history of this municipal enterprise. It was deeme
suﬂicient to point out one or two manifest shortcomin‘
to settle the question. This attitude of many who we
opposed to leasing, contributed greatly to strengthen the A
hands of the corporation bidding for the franchise.
To form a correct opinion of the success or failure of any
municipal undertaking is by no means a simple operation. It
involves an insight into the past and a discounting of
the future; rare in any community, particularly in those
in which the interest in public affairs is undeveloped. Fac-
tors of great future importance but minor present interest must
be considered. A constant comparison of the relative advan—
tages and disadvantages of public and private management
must be made, and the tendencies manifested by each kept in
mind.
It is not surprising, therefore, that the immediate advan-
tages connected with the company’s offer, should have proven
an irresistible temptation to the people of Philadelphia. The
comparatively weak active opposition encountered by the
leasing proposition, is regarded by many as one of the most
discouraging symptoms in our civic life. It would be diﬂi-
cult to justify this criticism. The interest of the population
in the administration of the gas works is limited to the
quality and price of the gas supplied. As regards the
former, there had been just cause for complaint. Although
gradually improving, the illuminating force had not risen
above nineteen candle power. To ascertain the real causes
of this defect required more careful study and discrimination,
than are usually lavished upon public affairs, where the
population is concerned with results rather than with causes-
Results are tangible, and furnish the basis for an easy judg-
ment of existing conditions; the ascertainment of causes
requires careful analysis and far more time and thought
than the average citizen feels can be taken from his private
[302]
THE MUNICIPALITY AND THE GAs SUPPLY. 3
r L AW $1 5 / ‘3? ,a' a! 8 f ‘4
a» " w- < w Iii" IMP? 3/ ﬂay _--V W" I
(W a. f rl" in“?
aﬁ'airs. It is true, that the opposition to the lease, carried
on by a few public-spirited men, had begun to arouse the
public to a consciousness of the fact, that motives, other than
the mere desire to escape from the shortcomings of city
management, should determine the granting of the franchise.
This feeling was not given time to express itself. The lease
was hurried through councils, discussion was systematically
blocked and the ordinance was signed by the mayor without
a moment’s delay. Within a week of the signing of the
ordinance the whole question had practically dropped from
the public view.
The questiOn ﬁrst to be considered, is whether the period
of municipal management was really characterized by failure.
The answer to this necessitates a review of certain facts
in the history of the works. By far the most important
fact to be noted is that Philadelphia has had but
ten years of responsible. municipal management of the
gas works. When the city, in 183 5, ﬁrst embarked upon
the manufacture of illuminating gas, it was in the form of a
combination of public and private ownership and manage-
ment. In 1841 the city became sole owner, but the man-
agement was entrusted to a board elected by councils, which
was to have full charge of the property and funds, and to act
as trustees of the gas loan. No part of the proﬁts from the
works was paid into the city treasury. Soon after the crea-
tion of this body, which was known as the “Gas Trust,” a
conﬂict arose with the city councils. The trustees denied
the right of councils to interfere with their management of
the works. In this they were sustained by the courts,
which held,* that neither councils nor any other city
authority could interfere with the trust’s management until
the maturity and payment of all the gas bonds placed under
their charge. Not until July, 188 5, was it possible to free
the works from this irresponsible body, for not until then
did these bonds mature.
* Western Savings Fund Co. vs. Philadelphia, 3: Pa. State Reports, :75.
[303]
4 ANNALS OF THE AMERICAN AcADisMY. '
The period of responsible city management may be said to
begin 'with the new city charter, known as the Bullittk Bill,
which went into eﬂect on the ﬁrst of April, 1887. By the
ordinance of April 4, 1887, councils organized the Bureau
of Gas as a part of the Department of Public Works, thus
placing this service under the control of an oﬂicial, directly
responsible to and removable by the mayor. The era of
gas trust administration is of importance in judging the
period of responsible city management, for it throws con-
siderable light on the nature of the difﬁculties with which
the city authorities have had to deal. The various investi-
gations into the administration of the gas works, notably that
of 1881, have thrown a ﬂood of light upon the corruption,
fraud and mismanagement which ﬂourished under gastrust
control. During the closing years of this irresponsible body,
especially between 1875 and 1885, the plant was permitted
to deteriorate; improved methods of production were ignored, I
mains and service pipes were allowed to rust and rot, and
no attempt was made to adapt the plan of distribution to the
increase in production and consumption. The works had
gradually become ﬁlled and overﬁlled with the political
subordinates and henchmen of the board. ' It Was shown
by the attorneys of the Committee of One Hundred, a body
which aided the city in the prosecution of the trustees,
that the superﬁcial area of the property of the works, was
not suﬂicient. to accommodate those on the pay-rolls, even
when placed shoulder to shoulder.
In 1887, the city fell heir to this mass of systematized cor-
ruption, together with a gas plant which was antiquated
and dilapidated. The tests of eﬂiciency in the public man-
agement of the works, must in fairness be restricted to the
period since that date. That municipal management started
out under the worst possible conditions is a fact not to be
overlooked in judging of its success or failure.
The ten years between 1887 and 1897 give evidence of
continuous and concerted effort to overcome the obstacles
[304]
THE MUNICIPALITY AND THE GAs SUPPLY. 5
to improvement which the period of gas trust management
had accumulated. In the face of these diﬂiculties the proﬁts
steadily increased, notwithstanding the fact that the city
was no longer paying for the gas used in public lighting, as
had been the case prior to 1887. In 1894, the price of
gas was reduced from $1.50 to $1.00 per thousand cubic
feet, which caused a sudden decline in gross proﬁts. That
the amount consumed in public lighting was by no means
insigniﬁcant is shown by the following table:


Amgunt of dGas Valuetaé cEstti;
Year. Pggfilémiigliiﬁ value {figment 1Igl :1 oed u cotsi 021
ing, 2'. (2., Gas and Distribu-
unpaid for. tion.
1887 . - - - - - - - 506,499,881 $759,749-82 8683,774-84
1888 . . . . . . . 536,158,081 804,237.12 723,813.41
1889 . . . . . . . 521,401,101 782,101.65 702,891.49
1890 - - - - - - - 551,459,572 827.189-36 744,470-42
1891 . . . . . . . 587,398,328 881,097.49 792,987.44
_ I892 - - - - . - - 594,203,605 891,305-41 793,174-87
1893 . . . -. . . . 602,392,714 903,589.17 813,230.25
1894 . . . . . . . 623,313,751 623,313.75 488,651.00
1895 . . . . . . 638,494,005 638,494.01 480,795.20
1896 . . . . . . . 674,031,512 674,031.51 1 539,225.21

Furthermore, the relative amount expended for salaries
and wages, was being gradually reduced by the city author-
ities. Thus, in 1870, in the manufacture of 1,240,485,000
cubic feet of gas $941,740.40 was expended in salaries and
wages, in other words, nearly seventy-six cents per thousand
feet. By 1890 the amount had been reduced to twenty-
seven cents per thousand, and in 1896 to twenty-two cents.
An examination of the reports during this period give
unmistakable evidence of improvement in organization
and business-like administration, within the comparatively
narrow limits in which such improvement was possible. We
are here brought face to face with the real source of weak-
ness in the municipal management of the gas-works, viz.,
the policy of councils. In this respect, Philadelphia fur-
nishes a striking instance of a governmental weakness
[305]
6 ANNALs on THE 'AMERICAN ACADEMY.
characteristic of American cities. The universal experience
has been, that if local representative bodies are permitted to
direct the details of administrative policy, unbusiness-like'
methods are sure to result. With each new city charter, we
ﬁnd the power of councils further restricted until, in cities
like the Greater New York, the local assembly is reduced to
an insigniﬁcant position in the city government. In Phila-
delphia, the local assembly still retains complete control
over the city’s ﬁnances, which enables it to interfere in the
details of departmental administration. If, under these cir-
cumstances, councils allows itself to be guided by the recom-
mendations of the technically trained heads of departments
—where such exist—there is still a possibility of business-
like management. Otherwise, two powerful inﬂuences are
sure to assert themselves: ﬁrst, the desire to reduce the rate
of taxation, regardless of the needs of municipal industrial
enterprises; secondly, the temptation to use the control
over public works for political purposes. Both of these
inﬂuences showed themselves during the ten years of munici-
pal management, although the latter was by no means as
strong as during the gas trust administration. It is gener-
ally supposed, however, that the attempt to use the works
for political purposes, 2'. e., to have friends of councilmen
placed upon the pay-roll, was the most serious obstacle
to eﬂiciency. As a matter of fact, this was a small evil com-
pared with the short-sighted ﬁnancial policy of councils.
As we shall have occasion to see later on, the amount
expended in wages and salaries was excessive. But
while this evil was gradually being remedied, the ﬁnan-
cial policy of councils gave but little evidence of improve-
ment. The most elementary business principles were
disregarded. In every well-managed manufacturing enter-
prise, it is the custom to charge a certain amount each year
to depreciation. This involves the expenditure of a certain
percentage of gross proﬁts to prevent actual deterioration.
In any well-ordered account this constitutes a ﬁxed charge
[306]
’A'Iddfls svg @1111 (HIV ALI'IVéIIOINﬂN HHL
L


Excess of Exten-
510118 and Im-


‘m 1887 . . . . $ 684,356 90 $ 93,175 00 $ 85,021 82 $ 81,322 07 $ 424,838 01 . . . . . .
1888 . . . . 781,012 80 128,568 32 163,576 36 91,059 71 397,808.41 . . . . . .
1889. . . 1,240,403 15 276,386 39 140,848 59 96,779 68 726,388 49 . . . .
1890. . . . 1,331,019 41 136,642 17 258,150 63 105,580 70 830,645 91 . . . . .
1891 , . . . 1,441,308 61 91,550 68 256,121 30 100,675 83 992,960 80 . . . .
1892 . . . . 1,425,789 12 133,629 00 149,305 34 100,932 40 1,041,922 38 . . . . . .
1893 _ 1,459,069 37 202,243 47 111,608 51 107,575 03 1,037,642 36 . . . . . .
1894 . 192,310 81* 324,616 12 102,364 97 118,905 52 . . , . . . $353,575 80
1396_ , , . 352,988 80 242,309 53 80,637 88 117,981 87 . . . . . . 87,940 48
Totals . . $9,192,848 53 $1,632,220 68 $1,463,408 43 $1,034,685 92 $5,504,049 78 $441,516 28


Expenditure for
Permanent Im-
Expenditure for Extensions.
Excess of Proﬁts
1895 . . . . 284,589 56 3,100 00 115,773 03 113,873 11 51,843 42 . . . . . .
During the decade 1887—97 the excess of gross proﬁts over expenditures for improvements and extensions was $5,010,890.08.
* Price reduced from $1.50 to $1.00.
[409]
8 ANNALs OF THE AMERICAN ACADEMY.
to be met before gross, not to speak of net proﬁts can be
said to exist. In the case of the Philadelphia gas works,
however, gross proﬁts have been used to diminish the tax
rate, rather than maintain the works at a given standard of
efﬁciency. Between 1887 and 1897 nearly eight million
dollars would have been available for the improvement of the
plant. Hardly a sixth was used for this purpose. Year after
year, the Director of Public Works urged upon councils the
necessity of improved methods of production and distribution.
With equal regularity, councils continued to use the proﬁts
from gas-making to defray general city expenses. The
accompanying table on page 7 clearly illustrates this ﬁnan-
cial policy. The inevitable consequences of such business
methods soon made themselves felt both in the manufacturing
and in the distributing departments. The former showed an
unusually high cost of production; the latter an inordinately
high percentage of leakage. While the estimates of the
cost of production, exclusive of the cost of distribution,
differ somewhat, it is certain that it was not below forty-ﬁve
cents per thousand, and probably nearer ﬁfty. It was compara-
tively easy for private companies to oﬂ°er gas to the city at a
price far below this ﬁgure. The great improvements in the
production of water gas have led the large companies in
most cities to abandon the production of coal gas, or at all
events to make water gas the most important part of the
total output. A mixture of coal and water gas gives the
most satisfactory results. The cost of production of the
latter is comparatively low, owing mainly to the relatively
low expenditure for labor. Instead of developing this more
proﬁtable part of the gas industry the city entered into con-
tracts with the Philadelphia Gas Improvement Company to
furnish water gas at thirty-seven cents per thousand cubic
feet. These purchases, small at ﬁrst, gradually increased
until, in 1896, over 38 per cent of total gas used was pur-
chased from the company. The purchases for each year
have been as follows: '
[308]
TPIE MUNICIPALITY AND THE GAs SUPPLY 9


Coal Gas Manufac- Water Gas, Cubic Amount Expended
tured, Cubic feet. feet. for Water Gas.
1889 1,310,869,000 919,640,000 $299,985 64
1890 . . . . . . . 2,042,059,000 1,134,922,000 425,283 75
1891 . . . . . . . 2,065,444,000 1,326,443,000 490,784 08
1892 . . . . . . . 2,233,238,000 1,351,351,000 500,000 00
1893 . . . . . . . 2,261,550,000 1,541,756,000 570,449 96
1894 . . . . . . . 2,803,838,000 1,306,563,000 557,428 38
1895 . . _ . . . . 2,538,065,000 1,699,687,000 600,000 00
1896 . . . . . . . 3,021,570,000 1,891,891,000 700,000 00


While at ﬁrst thought, the purchase of gas at thirty-seven
cents seems advantageous to the city, the real effect was to
retard improvement. The increased consumption of each
year was being met, largely through purchase of water gas
from a private company, thus removing the greatest incen-
tive, to improvement. Furthermore, as was shown by expert
testimony before the committee to which the question of
leasing had been committed, water gas can be manufactured
at twenty-ﬁve cents per thousand, which means‘that the city
was paying to the gas company a clear proﬁt of ﬁfty per
cent on the gas thus purchased.
Another direct result of the failure to expend a certain
percentage of gross proﬁts on improvements, is shown in the
cost and conditions of distribution. The Chief of the Bureau
of Gas repeatedly called the attention of councils to the fact
that the gas holders were not suﬂiciently numerous, nor
were they so distributed as to secure the best results. In
order to carry the gas to great distances, it was necessary to
force it through the pipes at high pressure. The resulting
friction robbed it of a part of its illuminating power, caused
condensation and greatly increased leakage. The evil was
further aggravated by the fact that the mains had not been
enlarged to accommodate the increased volume of gas. It
is not surprising, therefore, that the item “ gas unaccounted
for” increased with each year, until, in 1896, it amounted to
nearly one-fourth the total amount manufactured. This
alone meant an annual loss of over a million dollars.
[309]
10 ANNALs 0E THE AMERICAN ACADEMY.
Comparison with a few well-managed city or private enter-
prises, for which ﬁgures are obtainable, is of interest in
this connection:


Amount of Gas
Manulféagcgured. Lgglégggugigi 3:5 Percentage.
Philadelphia 4,913,461,000 * 1,132,646, 138 23.9
Manchester . 3,762,570,000 116,560,000 3.1
Glasgow . . . . . 4,525,000,000 425,500,000 IO
Boston Gas Co. . . 1,130,189,700 32,692,630 2.89
Brookline Gas Co. . 753,824,000 58,590,067 7.77
Lowell Gas Co. . . 315,073,000 20,232,700 6.42

Further evidence of the unfortunate inﬂuence of councils
upon the administration of the gas works is to be found in
the abnormal annual expenditure for wages and salaries.
We have already seen that this constituted one of the great
abuses during the period of gas trust management.
Although the worst evils were remedied under responsible
city control, much still remained to be done. In the ﬁrst
place councils had ﬁxed a rate of wages far above the market
rate. The Director of Public Works published a statement
that instead of paying the 1700 laborers $1.75 per day, he
could obtain equally competent men for $1.2 5. Whatever
may be said in favor of “ trades-union wages” in city
employment, it must be remembered that this excess of ﬁfty
cents per day above the market rate involved an additional
annual outlay of nearly $27 5,000. The pay-roll was further
increased through the addition of many laborers under the
elastic account of “ repairs.” Comparison with the accounts
of private and municipal gas works will show the drain of
this item upon the resources of the Philadelphia works.
While, therefore, it is evident that the real weakness in
city management lay in the policy of councils, there are
distinct indications of minor evils due to the internal
administration of the works. The most important of these
' Including water gas purchased from Philadelphia Gas Improvement Company.
[3 IO]
'Aqaans svQ 3H1 ‘ (INV ALI'IVJIOINIIW HHJ,
EXPENDITURES
FOR WAGES IN MUNICIPAL GAS WORKS.

Amount of Gas

I""l
(.9
H
gonsrtmed rig Péice Of T t I , d-t Expenditure for
1V8. e a -as CT
WORKS- PflbliC Light- M. cgbic Expegdaiture. hxosxéolalfre wagqs and
ing. feet Salaries.
Cubic feet.
[:4 Philadelphia (1896) . . 3,619,427,312 $1 00 *$2,852,103 11 $1,049,969 29 $1,194,191 00
6181511011 (1896)' ' - - - 4,062,500,000 52% 2.449.553 47 1.320.300 22 622.393 00
Manchester ((1896) 4,300,165,000 54% 2,222,903 00 1,120,058 47 473,890 00
Birmingham (1896) . 4,152,652,000 T 54% 1,054,862 91 463,350 00


2.364.238 93


Expendi-
ture for
Wages
and Sal-
aries er
. M. on ic
' feet
Relation
of Wages
and Sal-
aries ~to
total ex-
peuse.
Per cent.

$0 321%
0 151811
0 11
0 11116


41.8
25.4
21.3
19. 6

. * Exclusive of $700,000 expended in purchase of gas from private company.
1 Seventy-four cents for small quantities.
12 ANNALs OF THE AMERICAN ACADEMY.
relate (1) to the purchase of materials, and (2) to the
receipts from residual products.
During recent years the city has been paying between
$3.11 and $3.14 per ton for coal, whereas it is a well-estab-
lished fact that responsible ﬁrms were prepared to furnish
the same quality at $2.95. For some reason, which the
Chief of the Bureau of the Gas has never satisfactorily
explained, the bids of the ﬁrms oﬂering coal at $2.95
were invariably ignored. In this one item alone, the
department could have effected an annual saving of between
seventy-ﬁve and one hundred thousand dollars.
The failure fully to utilize residual products affected even
more unfavorably the proﬁt and loss account. The receipts
from this source have averaged, within the last few years,
about 30.6 per cent of the cost of coal—the main item in
the expense account. That this percentage is far below the
amount which careful business management would give, is
shown by comparisons with private companies in the United
States and with municipal gas works in England. The
report of the Massachusetts Board of Gas and Electric Light
Commissioners for 1896, gives full information on this point
for the companies within that state. In the larger companies
the percentage of the cost of coal realized through the sale
of residual products ranges from 45 to 51 per cent. The
average of forty-seven companies is 43.89 per cent. In the
gas works of the cities of Manchester, Glasgow and Bir-
mingham the percentage ranges from 43 per cent in the
former to 56.2 per cent in the latter. Compared with these
ﬁgures, the 30.6 per cent obtained in the Philadelphia works
makes but a poor showing. The real cause of the diﬂiculty
is to be found in the fact that certain persons, either council-
men or for other reasons inﬂuential in local politics, enjoyed
the monopoly of purchasing residual products at prices below
market rates. Here, as in so many other cases, the inﬂu-
ence of the local assembly is at the root of the difﬁculty.
It is to be noted, however, that the period of responsible
[312]
THE MUNICIPALITY AND THE GAs SUPPLY. 13
municipal management gives evidence of increasing economy
in the utilizationof by-products as compared with the “ gas
trust” period. In 1870 the percentage was but 15.4; in
1875, 17; in 1880, 21.9; in 1896, 30.6 per cent.
Our analysis, thus far, tends to prove that the most
serious defects connected with city management are traceable
to evils inherited from a period which cannot give us a fair
test of municipal eﬂiciency. During the decade of responsible
city control, we ﬁnd abundant indication of improvement
in every direction. That such improvement has not been
more rapid is to be attributed to the short-sighted policy of
councils rather than to defects in the administration of the
gas department.
Before entering upon a discussion of the broader questions
of public policy which are involved in the relation of the
municipality to the gas supply, it will be well to consider
the conditions under which the lease was effected.
Some years before the expiration of the gas trust period1
combinations of capitalists began to speculate on the possi-
bility of obtaining a monopoly of the gas supply. In 1883
the ﬁrst deﬁnite offer was made;——$10,000,000 for the plant
and an exclusive franchise. During subsequent years new
offers were forthcoming, which usually met with vigorous
opposition in councils, as well as with the public. When in
September, 1897, the mayor transmitted to councils the
offer of the United Gas Improvement Company, it soon
became evident from the attitude of the press, as well as the
disposition of councils to stiﬂe discussion and hasten action,
that the plans of the leasing company had been carefully
laid. It is not our purpose to enter into an analysis of the
inﬂuences set at work by the company, as it would carry us
too far aﬁeld in the discussion of corruption in local politics.
It must be said, however, that whatever the nature of these
forces, they were greatly aided by the attitude of a large por-
tion of the business community. The prospect of securing
gas of a better quality at a lower price, overshadowed for
[313]
I 14 ANNALS OF THE AMERICAN ACADEMY.
the time being all other considerations. As a result, the
permanent interests of the city were lost sight of. The
gas works were handed over to that corporation whose
proposals alone received serious consideration from coun—
cils, notwithstanding that other and more favorable offers
had been made by responsible parties. In granting an
exclusive privilege to this corporation the most elementary
business principles were disregarded. It seems a common-
place to say that the consideration in return for a franchise
should be determined on the basis of the value of the
privilege. In this case, however, the only question which
seemed to interest councils—and in this they were at one
with the mass of the population—was whether the company
was prepared to give better gas at a lower ﬁgure than the
city, if so, no further conditions seemed necessary to
(safeguard the interests of the city. Had the terms of the
lease been formulated with referenCe to the possibilities of
proﬁts to a company enjoying a monopoly of the gas supply,
the results would have been very different. There was
evidence on all sides that the population. was gradually
awakening to this fact; but so rapidly was the lease hurried
through councils, that no opportunity was given to make
such awakening eﬂective.
The lease as ﬁnally signed gives to the company a
monopoly of the gas-supply for a period of thirty years.
At any time prior to July I, 1907, the city may terminate
the lease, on condition of reimbursing the company for all
improvements, plus six percentum simple interest on the
amounts thus expended. It is quite clear that the option
thus given is one which the city will hardly be able to exer-
cise. Taking the cost of extensions and improvements which
the company has agreed to make during the ﬁrst ﬁve years,
the minimum price which the city will have to pay will
be $8,796,000. If similar improvements are made during
the next ﬁve years of the lease the price will be over
$15,000,000. With the city debt close to the constitutional
[314]
THE MUNICIPALITY AND THE GAs SUPPLY. 15
limit, it is hardly likely that the option will be exercised.
Unless exercisedwithin the ﬁrst ten years it is provided that
the company shall have possession during the full term of
thirty years. In return for the privilege the company
agrees:
First—To furnish gas of twenty-two candle-power at one dollar
per thousand cubic feet.
Second—To pay into the city treasury upon all gas sold prior to
January I, 1908, all sums received in excess of ninety cents per thou-
sand cubic feet; after December 1, 1907, and prior to January I, 1913,
all sums in excess of eighty-ﬁve cents per thousand; from December
31, 1912, to January I, 1918, all sums in excess of eighty cents per
thousand, and from that time until the expiration of the lease (Decem-
ber 31, 1927) all sums in excess of seventy-ﬁve cents. Councils is
given the power to reduce the price at the dates above mentioned to
ninety, eighty-ﬁve, eighty and seventy-ﬁve cents respectively, in which
»case the city will receive no money rental.
T kiwi—To light, free of charge, all public buildings and lamps, and
'to provide for the lighting of three hundred additional lamps each
year. All public lamps to be lighted, extinguished, cleaned and
repaired at the expense of the company.
Fourth—To expend within three years ﬁve million dollars in alter-
.ations, improvements and extensions, and at least ﬁfteen millions
for the same purpose during the thirty years of the lease.
Fiﬁflz.—At the expiration of the lease, December 31, 1927, the city
“is to receive the works “ without Charge or cost in the condition of
alteration, improvement and change in which the same shall then
exist, and the same shall be so maintained as to be then in ﬁrst-class
order and condition.”
It would seem, at ﬁrst glance, that these provisions assure
'to the city a large return for the franchise. To judge of
this, however, one must enter upon an examination of the
possibilities of proﬁt which the company enjoys. It is to
be noted, that if the price of gas is successively reduced
from one dollar until it reaches seventy—ﬁve cents, the city
“will receive nothing from the company except free light for
public lamps, and the plant at the expiration of the lease.
'With the present increasing rate of consumption for public
lighting the city will soon be paying large sums into the
[315]
16 ANNALs OF THE AMERICAN ACADEMY.
company’s treasury. During the year 1896 the city erected’.
1739 additional gas lamps. With this rate of increase the
city will be compelled to pay for the lighting of many
thousand lamps within a few years. The contract, there-
fore, amounts to this: the city places the gas works in
the hands of a private company for thirty years, in return
for which the city is to receive a certain amount of gas
for public lighting free of charge. During this period
the population will be compelled to pay one dollar per
thousand for ten years, eighty-ﬁve cents for ﬁve years,
eighty cents for ﬁve years, and seventy-ﬁve cents for ten
years. The agreement to expend ﬁfteen million dollars in.
extensions and improvements cannot be regarded as a burden.
upon the company, as it represents nothing more than a.
proﬁtable investment of capital, such as every business man.
would be compelled to make in order fully to utilize the
opportunities of his business.
In the discussions in councils and in the public press, the
price which the citizens of Philadelphia will have to pay for"
gas during the next thirty years has been largely lost sight of.
An examination of these rates will show the great value of
the franchise to the company, as well as the inadequacy of
the return to the city. One of the most striking facts in the"
history of gas-making has been the great improvements in.
methods of production that have taken place during recent
years. Within ﬁve years the price of gas under city man--
agement was reduced from $1.50 to $1.00 per thousand.
There is not the slightest reason to doubt that changes of '
equal importance will take place in the near future. In.
this connection, the experience of English cities is of interest.
In Glasgow the gas works came under municipal control‘
in 1869. During the ﬁrst ﬁve years of city management
the price was gradually reduced from $1.35 to $1.14 per"
thousand cubic feet. With each improvement in production
the price was lowered until, at present, gas of twenty-four-
candle power is offered at 52% cents. Manchester began tm
[316]
' THE MUNICIPALITY AND THE GAs SUPPLY. 17
manufacture its own gas as early as 1807, and is now charg-
ing 54% cents per thousand. The same price obtains in
Birmingham, where the city took over the gas supply in
1874. In almost every case, whether at home or abroad, a
reduction of from 33% to 50 per cent has taken place during
the last twenty years. Compared with these ﬁgures the
price which the Philadelphia company will receive is
excessive. Unless the company does it voluntarily, it will
be impossible to effect a reduction of more than 25 per
cent during the next thirty years. At the end of that
period, viz., December 31, 1927, the price will still be
50 per cent above the present price in English cities.
But, it will be said, English cities are able to offer gas
at a low price because of cheaper materials and the lower
rate of wages. As regards the former, the price paid for
coal is about 20 per cent below that paid in Philadelphia.
A comparison of the rate of wages will show, that while
the average wage was 30 per cent higher under municipal
management in Philadelphia than in Glasgow, Birmingham,
or Manchester, the difference was due largely, if not wholly,
to the fact that councils had ﬁxed the wages of
employes far above the market rate. From testimony of
the Director of Public Works of Philadelphia, as to the
cost of labor, it is safe to say that the rate paid by the
present company will not average 10 per cent above the
English rate. It is to be noted, furthermore, that the
Philadelphia management was paying an unusually high
price for coal, which the United Gas Improvement Company
will undoubtedly reduce. -'What is still more pr0bable is
that water gas will gradually replace coal gas, thus per-
mitting the substitution of oil for coal; a raw material which
may be obtained more cheaply in Philadelphia than in Glas-
gow or Birmingham.
It is clear, therefore, that there is no such great differ-
ence in the cost of production as is generally supposed.
With the price of gas nearly ﬁfty per cent lower than in
[317]
18
ANNALs OF THE AMERICAN ACADEMY.
Philadelphia, the proﬁts of municipal gas works of English
cities in 1896 were as follows :


Gross Proﬁt Amount paid
Price of Gas exclusive of to Sinking
per thousand amt.debited Fund to 111- Net Proﬁts.
cubic feet. to deprecia- quidate gas
tion. loan.
Glasg0w- - - . 52%0011t2 $880.692 97 $334053 55 8545.939 42
Manchester 54% cents 555,222 26 221,293 72 333,928 54
Blrmingham- . 54%0011t5 756.775 84 504.430 50 252.345 34


If the proﬁts reached such ﬁgures with the price at 521.2;
and 54%- cents, it is of some interest to estimate the probable
proﬁts with gas at 90 cents per thousand,—the rate which
the United Gas Improvement Company will receive from
the citizens of Philadelphia until December 31, 1907.>*<
Proﬁts at 90 cts. per thousand.
Glasgow . . . . . . . . . . . . . . . . $2 374,098 03
Birmingham . . . . . . . . . . . . . . 2,143,157 42
Manchester . . . . . . . . - . . . . . . 1,888,273 50
In this comparison our object has been to arrive at some
conclusion as to the possibilities of proﬁt in a monopoly of
the gas-supply, which should be the guiding principle in
the granting of a franchise of this kind. We have seen
that, according to the terms of the lease, the people are
debarred from participating in the beneﬁts of improved pro-
duction during the next three decades. The testimony of
experts before the ﬁnance committee of councils was
to the effect, that it was possible at the present time to manu-
facture gas of- twenty-two candle power at twenty-ﬁve cents
per thousand, and that the cost of distribution should not
exceed ten cents. The possibilities of proﬁt at ninety or
even seventy-ﬁve cents, without taking into consideration
future improvements further cheapening the process, have
been shown in the ﬁgures from English cities. 8 It is
beside the question to say that Philadelphia was not able
*In this calculation we have assumed the present rate of consumption.
[518]
THE MUNICIPALITY AND THE GAs SUPPLY. 19
to produce gas at this price. In determining the return for
the grant of a franchise, what the city can or cannot do in
performing the same service, is a question of secondary im-
portance. The only sound basis of negotiation is the value
of the franchise to the party seeking it, in other words, the
possibilities of proﬁt which the company will enjoy.
Having examined the lease as a purely business relation
between the city and the company, there still remains to be
considered the abandonment of this municipal function from
the broader standpoint of general municipal policy. The
' attitude of the population to this phase of the question may
be regarded as typical of our American communities and
furnishes a striking instance of the lack of civic ideals in
our city life. Throughout the discussions of the subject, little
thought was given to the inﬂuence of such a curtailing of-
city functions upon the civic life of the community; Nor
was the possible social function which the city might per-
form in the administration 0f the gas service considered
worthy of attention. This attitude of the population
accounts for the feebleness of the opposition and the bold-
ness of councils in stiﬂing discussion.
We have already seen, that ﬁ'om a purely ﬁnancial point
of view, the contract with the United Gas Improvement
Company can hardly be said to have given due recognition
to the interests of the city, nor to those of the population as
consumers. Furthermore, that the ten years of municipal
management, far from giving evidence of ﬁnancial failure,
show steady improvement in organization and management.
Such shortcomings as existed were due to clearly assignable
causes that might readily have been remedied. In aban—
doning the controlof the gas-works, the valuable experience
acquired during the period of municipal management has
been practically thrown away. There is no easy and direct
road to efﬁcient public administration. In every depart-
ment, efﬁciency is gradually attained through slow and
laborious accretions of small improvements. When therefore,
..[3I9]
20 ANNALs OF THE AMERICAN ACADEMY.
thirty years hence, the city again comes into possession
of the gas works, it will be compelled to meet difﬁculties
equal to, if not greater, than those of the last ten years.
Furthermore, in parting with the gas works the city
deprives itself of the power of performing an important
social service. Until recently, ﬁnancial considerations have
ruled supreme in determining the sphere of municipal
activity beyond the minimum of protection to life and prop-
erty. We are beginning to see that social standards should
be given some weight in municipal policy. The many
points at which municipal activity touches our industrial
and social life gives it a far-reaching inﬂuence in elevating
or degrading this life. In the relation of the gas-supply to
the standard of life and the industrial efﬁciency of the pop-
ulation we have a most conspicuous instance of the inﬂuence
the municipality can exert. Here again, we must turn to
the English cities for enlightenment.
That the use of gas is playing an important part in the
economy of modern life requires no demonstration. Neither
will any one doubt that it is destined to play an increasingly
important part for some years to come.
At the time the gas works were placed under municipal
control in Glasgow, and the same statement applies to the
other cities of Great Britain, the use of gas was limited to
the well-to-do classes. After careful study and inquiry, the
municipal authorities came to the conclusion that to intro-
duce its use for cooking and illuminating purposes by the
working classes, particularly in the thickly settled tenement
districts, would work radical changes in their mode of life.
The wastefulness of the coal stove and the comparatively
high cost of its maintenance, had given to uncooked foods
an important place in the standard of life of these classes, a
fact that seriously affected their industrial efﬁciency and
physical vigor. The widespread use of alcoholic liquors was
largely to be explained by the crude diet of the poorer
classes. It was evident that the introduction of a new
[320]
THE MUNICIPALITY AND THE GAs SUPPLY. 21
element into the standard of life could only be effected
by the city through a temporary subordination of ﬁnancial
considerations. In order to facilitate the use of gas for
illuminating purposes, automatic penny-in—the-slot meters
were introduced. For two cents a large burner could be
supplied for a period of ﬁve hours. Furthermore, the city
inaugurated the policy of renting gas stoves, making all
connections free of charge. At ﬁrst, the use of automatic
meters was small, but with each year the number has in—
creased until at the present time we ﬁnd over thirteen thou-
sand in use in Manchester. With each year the number of
gas stoves rented by the city is increasing. In 1896 Glas-
gow rented 12,762 and Manchester 9403.
The inﬂuence of this more general use of gas upon the
standard of life is strongly evident to anyone examining the
standard of life of the working classes in the English cities.
'The use of cooked foods is far more general than was
the case ten years ago. That this change has had an
inﬂuence upon the health and industrial eﬂiciency of the
population is attested by the testimony of health ofﬁcers.
Furthermore, through the low price of gas, the city has
been able to exert an inﬂuence upon industrial conditions.
The introduction of the gas engine to replace the steam engine
has given a new lease of life to the small manufacturer.
In pursuing this policy in the gas administration, the
English cities have been carrying out a general principle
which pervades the management of all their quasi-public
works. The municipal street railway systems are being
used to effect a more equable distribution of population; the
municipal water supply furnishes hydraulic power at low
rates; and the municipal gas supply is contributing to the
improvement of the standard of life and of the industrial
efﬁciency of the population. The municipality, for this
reason, represents a far more positive force in English city
life than in the United States. That American munici-
palities must, in time, perform the same functions is evident
[521]
22 ANNALs on THE AMERICAN ACADEMY.
to anyone who has followed the course of municipal develop
ment in this country. To relinquish public works means
simply to postpone the period when such service is to be
performed.
From whatever point of view the change of policy in
Philadelphia be examined, the conclusion that it marks a.
retrograde movement, is unavoidable. This is particularly
true when it is looked at from the standpoint of civic pro-v
gress. The recent history of American ~ municipalities has-
shown that the inability of our city governments to maintain
control over private corporations performing quasi~public
functions constitutes the greatest danger to American local
institutions. It is scarcely an exaggeration 'to say that these
corporations have succeeded in intrenching themselves as.
the real power behind the constituted authorities, in. all.
matters affecting their interests.
We usually take for granted that the most effective
means of eliminating corruption is to reduce to a minimum.
the functions which the municipality performs and are sur-
prised to ﬁnd that this method, in reality, increases the evil.
The cause lies on the surface. With every diminution of city
functions we increase the inﬂuence of irresponsible corPorate-
bodies. The real problem before us is to eliminate such cor,
porate inﬂuenCe. Until this is done, all efforts for more efﬁ-
cient administration are almost certain to fail of their purpose.
In those very classes that should furnish leaders, in our civic
life, we ﬁnd waging the conﬂict between private interest and
public welfare which usually results in the triumph of the
former. Attachment to the city is not sufﬁciently strong"
in American communities to withstand the temptation of
private gain. The absence .of city ideals makes the citizen
feel that responsibility for the safeguarding of public interests.
rests with the constituted authorities rather than. With him:
self. To those who have studied the growth of our large
cities, the introduction of a new and powerful corporation
into the public life of the community means another Obstacle-
[322]
THE MUNICIPALITY AND THE Gas SUPPLY. 23
to civic advance: As regards Philadelphia, the danger is
increased by the fact that the monopoly of the street railway
and the gas. and electric light service is vested in the same
combination of individuals.
At a time when the true relation between municipal
activity and social progress is ﬁnding acceptance with a
constantly increasing percentage of our population, it
seems peculiarly unfortunate that Philadelphia should
offer so discouraging an example to American cities. In
England and Scotland s0me 168, in Germany over 335
municipalities own and operate their gas works, with an
eﬂiciency which private corporations would ﬁnd difﬁcult to
equal and certainly could not surpass. Whether the cities
of the United States will develop an equally efﬁcient admin-
istration remains to be seen. Upon their ability to do so
depends the future of our democratic institutions. What-
ever be the steps in the process, it is certain that no
single and sudden change will effect the desired end. The
population must be prepared to meet temporary discourage-
ments and to withstand the temptation to throw off the
burden of public service in favor of private agencies.
Until this is done, until we are able to discriminate more
clearly between the temporary and permanent interests of our
municipalities, the road to good city government will remain
closed. Though logical deduction and & pn'orz' reasoning
may furnish all sorts of simple remedies; the order of his-
torical development is more complex; encountering diﬂiculties
that must be consciously met by every progressive society.
Temporary expedients may postpone but cannot avoid the
vital problems of governmental activity. Their successful
solution soon becomes the requisite for civic advance.
University of Pennsylvania. L. ROWE.
THE ACADEMY AND ITS WORK.
THE AMERICAN ACADEMY OF POLITICAL AND SocIAL SCIENCE was
formed in Philadelphia, December 4, 1889, for the purpose of promoting
the Political andSocial Sciences, and was incorporated February 14, 1891.
While it does not exclude any portion of the ﬁeld indicated in its title,
yet its chief object is the development of those aspects of the Political and
Social Sciences which are .either entirely omitted from the programs of
other societies, or which do not at present receive the attention they deserve.
Among such objects may be mentioned: Sociology, Comparative Constitu-
tional and Administrative Law, Philosophy of the State, Municipal Govern-
ment, and such portions of the ﬁeld of Politics, including Finance and
Banking, as are not adequately cultivated by existing organizations.
In prosecuting the objects of its foundation, the Academy has held
meetings and engaged extensively in publication.
MEETINGS.
Public meetings have been held from time to time at which the members
of the Academy and others interested might listen to papers and addresses
touching upon the political and social questions of the day. The meetin s
have been addressed by leading men in academic and practical life, a wi e
range of topics has been discussed, and the papers have generally been sup-
sequently published by the Academy.
The ﬁrst scientiﬁc session of the Academy was held on March 14, 1890;
three other sessions were held in 1890; seven in 1891 ; ﬁve in 1892; ﬁve in
1893; six in 1894; four in 1895; six in 1896; and six in 1897, or forty-three in all.
PUBLICATIONS.
Since the foundation of the Academy, a series of publications has been
maintained, known as the ANNALS of the American Academy of Political
and Social Science and the Supplements thereto. These publications have
brought home to members accurate information and carefully considered
discussions of' all the questions embraced within the ﬁeld of the Academy’s
interests. The ANNALS is sent to all members of the Academy.
ANNALS.
The ANNALS OF THE AMERICAN ACADEMY was ﬁrst issued four times
a year, but since the second volume six issues annually have been given.
At the present time they constitute two. volumes annually. The ten vol-
umes thus far issued comprise 43 numbers, constituting with the supplements
7,625 pages of printed matter which have been distributed to the members
of the Academy.
Besides the larger papers contributed by many eminent scholars both at
home and abroad, especial attention has been directed to the departments.
All important books are carefully reviewed or noticed by specialists. The
department of Personal Notes keeps the reader informed of movements in
the academic and scientiﬁc world. Notes upon Municipal Government and
Sociology preserve a careful record of events and other matters of interest
in these departments, which at the present time claim so large a share of
public attention.
The following statement shows the growth of the publishing activity
of the Academy:
1890-91 ANNALS. 754 PP- Supplements. 363 PP-
1891-92 “ 896 pp. ‘
1892-93 “ 852 PP- " 148 pp.
1893-94 “ 10I6 PP- “ 314 PP-
1894-95 “ 1049 PP- “ 178 PP-
1895-96 “ 1146 pp. “ 191 pp.
1896-97 “ 1122 pp. “ 84 pp.

The price of Vols. I. -V., including supplements, is $6.00 a volume, and
of Vols. VI.- X., $3.00 each. Special rates to Libraries and members of the
Academy: Vols. I.-V., $5.00 each; Vols. VI.-X., $2.50 each. Price of
separate numbers, except No. I of Vol. 1., $1.00 each. NO. I 01' V01. I 18
mm onlv in orders for the Volume. "
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AND THE
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A new Monograph by Prof. Amos S. Hershey
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A defense of Intervention by the United States. Intervention and its relation
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AND THE
Monroe Doctrine
By Prof. L. NI. Kcaabey, Bryn Mawr College
Price, Paper, 25 cents
An outline of the diplomatic controversy between the United States and England,
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issue of that larger struggle, which has been going on between Great Britain and the
United States ever since the days of our political independence, for dominion of the
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The Nicaragua Canal
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American Academy of Political and Social Science
STATION B, PHILADELPHIA
The American Academy ~
OF
POLITICAL AND SOCIAL SCIENCE
PHILADELPHIA.

' President,
EDMUND J. JAMES, Pa. D., University of Chicago.
Vz'ce-B'esz'dents,
PROF. SAMUEL M. LINDSAY, PH. D.,
University of Pennsylvania.
’-
PROF. F. H. GIDDINGS, PB. D.,
' Columbia University.
PROF. WOODROW WILSON, PH. D.,
Princeton University.
Secretaries.
Corresponding Sec’y,
H. R. SEAGER, PH. D.,
37th and Locust Street.
General Secretary,
JOHN QUINCY ADAMS, PB. D.
37th and Locust Street.
Recording Sec’ ,
CLINTON ROGERS WOODRUFF,
514 Walnut Street.
Treasurer,
STUART WOOD,
400 Chestnut Street.
Librarian;
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Manual Training School.

GENERAL ADVISORY COMMITTEE.
RT. HON. ARTHUR J'.dBALFOUR, M. P.,
London, Englan .
PROF. C. F. BASTABLE,
Dublin University.
PROF. F. W. BLACKMAR,
University of Kansas.
J. G. BOURINOT, C.M.G., PH.D., D.C.L.,
Ottawa, Canada.
PROF. R._T. ELY,
Wisconsin University.
PROF. HENRY W. FARNAM,
Yale University.
PROF. w._w. FOLWELL,
University of Minnesota.
HON. LYMAN J. GAGE,
Washington, D. C.
DR. KARL T. VON INAMA-STERNEGG,
Vienna, Austria.
PROF. QHN K. INGRAM. LL.D.,
nnity College, Dublin.
PROF. J. W. JENKS,
Cornell University.
DR. WM. PRESTON OHNSTON,
President of ulane University.
VERY REV. JOHN J. KEANE, D. D.,
Rome, Italy.
PROF. E. LEVASSEUR,
Paris, France.
PROF. AUGUST MEITZEN,
' University of Berlin.
PROF. BERNARD MOSES,
University of California.
PROF. J. s. NICHOLSON, M. A.,
Edinburgh University.
DR. HENRY WADE ROGERS, _
President Northwestern University.
PROF. HENRY SIDGWIQK,
Cambridge University.
PROF. WILLIAM SMART.
Queen Margaret College, Glasgow. J
SIMON STERNE, ESQ,
New York City.
HON. HANNIS TAYLOR, LL. 1).,
Mobile, Ala.
PROF. LESTER F. WARD,
Washington, D. C.
44923


me 2’?
{MUNICIPAL TRADING IN ENGLAND
AND THE UNITED STATES.

AN ADDRESS
Tim» '
THE HON. ROBERT PJ/PORTERQQ
( United States Commissioner),
Delivered at'a Complimentary Dinner in his honour
on the 31st October, 1901.
W 1TH
OTHER SPEECHES ON THE SAME OCCASION.
_ Issued under the Authority of the TVI’ZIVZ‘ICQMLZ
Trading Committee of the L0nd012.‘0ha,mber
of Commerce.
LONDON: 10, EASTOHEAP, EC.
1901.
MUNICIPAL TRADING IN
. ENGLAND AND T E UNITED STATES.

L


Porter was given by the Municipal Trading Com-
mittee of the London Chamber of Commerce (Incor-
porated) on Thursday, October 31, 1901, at the Trocadero
Restaurant, London. Mr. Sydney Morse (Chairman of the
Committee) occupied the chair, and there were also present
the Right Hon. Lord Claud Hamilton (chairman of the Great
Eastern Railway Company), Sir C. Rivers Wilson, G.C.M.G.,
, C.B., Sir Israel Hart, General C. G. Sawtell, Col. J. Roper
Parkington, Sir Hiram S. Maxim, Mr. Atherley Jones,
K.C., M.P., Mr. E. Garcke, Major S. Flood Page, Mr. E. J.
Gillespie, Mr. L. R. Wynter, Mr. Charles Charleton, Mr. H.
Snowden Ward, Mr. Dixon H. Davies, Mr. C. T. Yerkes, Mr.
C. H. W. Biggs, Mr. William Ivey, and about ﬁfty others.
The Chairman proposed the toasts of “ The King” and of
“The President of the United States,” which were duly
honoured.
The CHAIRMAN, in proposing the toast of “ Our
Guest,” said they met under the auspices of the London
Chamber of Commerce, which generally looked after the
trade of their city to the best of its ability. When a few
years ago it was found that the municipalities and local
authorities throughout the kingdom were anxious to enter
into the arena of trade in competition with their ratepayers
—-with money raised on the security of the rates these traders
A COMPLIMENTARY dinner to the Hon. Robert P.
4
paid—it was felt that a time had arrived when a special com-
mittee of the Chamber should be appointed to endeavour to
deal with the question. The Committee had been doing what it
could in a small and unpretentious way ; it even ventured to
risk a general battle with the representatives of the muni-
cipal traders, by getting the Government to appoint a Joint
Committee of both Houses, and although that Joint Com-
mittee made no report, and came to no deﬁnite decision, it
collected a great deal of valuable evidence which had now
been published. He had the authority of their guest for
saying that that report had been of great value to our friends
in America. The question was really of immense import-
ance. Few of them realised fully the extent to which
municipal trading, if it was allowed to have its full sway,
would interfere, not only with traders, but with the comfort ~
of everyone in the country, if it did not in the end interfere
with the Government of the country in a disastrous manner
They had it on the authority of representatives of municipal
trading that in their opinion there was no ﬁnality in it.
The latter already owned and worked tramways and light
railways, and according to Mr. Burns there was nothing
which did not reasonably and properly come within the
purview of municipal trading. If that came to pass where ’
would they be if the London County Council were the owner of
of all the railways and tramways in the County of London, but
not outside, where even the gauges might be different, and
the working of the lines constructed on a different principle.
Who were those bodies who desired to have this controlling
inﬂuence over their trades P Were they the great traders ?
No! They were the representatives elected for the good
government of a particular district, large or small, as the
case might be. They were only elected for three years, and
yet they considered that they were competent to deal in
millions, and to carry on any trade, even if it was a trade
requiring the utmost care and greatest knowledge, simply
because they were members of a body elected by the rate-
5
payers. And what was the cry? That the traders had made a
proﬁt, and why should not that proﬁt be taken away from the
traders and put into their own pockets ! It struck at the root
of good government when those who governed were not
simply ﬁlled with the desire to beneﬁt those whom they
governed. This was not a new subject, because they found
great writers—John Stuart Mill and others—agreeing with
the same views. The Committee were not trying to put
forward a vain and foolish idea, because it was an axiom
that no one could carry on a proﬁtable business unless he
gave that which the public wanted at a price which they
were able to pay for it. What an opportunity the local
authorities had lost ! If those authorities had insisted upon
every trade being carried out for the beneﬁt of all ; if they
had seen that all the sanitary arrangements were perfect and
properly kept, and insisted upon the best possible public
service being given at the cheapest possible rate ; if, in eﬁect,
they had continued to control the trades, but not absorb them,
they would have fulﬁlled one of the most important func-
tions of the State. Mr. Porter had come that evening to give
them the beneﬁt of his advice, and he asked those present
to welcome him as an expert on this question, and to drink
his health in that sense. ’
Mr. ROBERT P. PORTER said that he feared the reference
of the Chairman to the effect that he (the speaker) “ thought
in schedules” would have a disquieting effect upon those
assembled. A bombardment of “ tabulated statements ” and
“ statistical exhibits ” after an excellent dinner was hardly a
fair return for such generous hospitality as had been accorded
him. He wished to thank the Chairman for the kind things
he had said about him, and to express his gratitude at the
undeserved compliments—~(No, no)——which had been given
him that night. It was true that he had been largely con-
cerned in statistical inquiry in the United States, and in 1890
he had taken the census of that country. Previous to that
6
—~in 1880——he had charge of the railway statistics, and it fell
to his lot to make the ﬁrst Federal report ever made in rela-
tion to street and steam railways. By reason of this he had
become interested in the subject, and perhaps it gave him a
right to speak on the question so capably and interestingly
put forward by the Chairman.
There were a few facts which he thought it was right and
proper should be impressed upon them, and after some
humorous reference to the system of reading papers at public
gatherings in England, Mr. Porter proceeded to speak as
follows :—
The discussion of municipal trading in England savours
a little of locking the stable door after the ho se is stolen.
In America we are trying to put the fastenings in order
before misfortune overtakes us. Whatever afﬂiction the
American invasion may have brought upon the Mother
Country, it must plead not guilty in this case. Municipal
trading, as understood here, is not a Yankee notion. We
have had some unhappy experiences in lending local and
State credit to private enterprise in the days when the people
of a new country were anxious to extend railways and
canals. We enjoyed our little whirl, and we had to pay the
piper. In the forties and ﬁfties an epidemic for helping
private enterprise with public funds passed over the land,
and the wildest schemes pushed by unscrupulous promoters
secured" the credit of the municipal, county, and State
Governments. The invariable result followed. Millions
and millions of dollars’ worth of bonds were issued by public
authorities, most of them to become a burden upon the un-
fortunate taxpayer. In a large number of instances these
ventures brought bankruptcy and even repudiation upon
cities, counties, and states, and thousands of your own
countrymen who had loaned their money as was thought
upon governmental securities, suffered severe losses. Again,
soon after our civil war, a craze set in for municipal im-
provements, and as a result local indebtedness and taxes in-
7
creased so rapidly that in many instances the burden upon
taxpayers became almost unbearable, and in important cities
repudiation was openly advocated. It fell to my lot over
twenty years ago to write the ofﬁcial report of the history of
this period, and the lamentable results of throwing
private enterprise upon the rates may be studied to
advantage in that volume? These experiences carried with
them useful lessons, and, as we shall see, has put a brake on
the enthusiastic American municipalist who, fresh from the
Mecca of Spring Gardens or the shrine of Saint Mungo,
demands municipal ownership and operation of public utili-
ties. In these demands he has been met at almost every turn
with the “ constitutional debt limit,” as we term it. You
will easily guess that the Genesis of the “ debt limit ” may
be found in the ﬁscal disasters resulting from our early
attempts in using public funds and public credit in enter-
prises which should unquestionably ,be left to individual
effort. In seeking a remedy for evils ensuing from the
ﬁscal madness which overtook us before the civil war, and
again in a slightly modiﬁed form immediately following
the war, the constitutional limitation of debt was hit upon.
In some of the more ﬂagrant instances, that of the State
of Michigan for example, the people went even further, and
declared that the State must not be “ a party to, or interested
in, any work of internal improvement.” So bitter, has been
the results of the experiments of this State in a theory of
government foreign to the sound maxim that “ the country
is governed the best which is governed the least,” that the
Municipalists have never been able to secure a repeal of
this provision. I have not introduced thus prominently the
“debt limitation ” theory because I believe it ﬁts your case,
but for the purpose of showing its effect with us in
checking the impetuosity of the American municipalist. Go

*_ Report on Valuation, Taxation, and Public Indebtedness in the
United States, and returned at the Tenth Census (June 1, 1880) by
Robert P. Porter, Special Agent.
\ 8
whichever way he may, he is constantly running up against
this prohibitory sign. It has blocked his game in all sorts‘
of ways. In the case of Michigan, for instance, after the
city of Detroit had purchased a street railway, the Supreme
Court compelled the private owners to take it back again.
This, too, after clever ﬁnanciers had unloaded their system on
a conﬁding and unsuspecting council of municipalists at
a splendid proﬁt to themselves. In short, so obnoxious have
these limitations become that the ﬁrst number on the
municipalist programme in the United States is the repeal of
all such constitutional barriers. So far these endeavours
have not met with success, and the American taxpayer has
remained deaf to the stories of great proﬁts in public
utilities, and stupidly impervious to the tempting accounts of
how the taxpayer has become, in some of the British cities,
as extinct as the dodo, or the pudamonk, while the cities are
running themselves qn the proﬁts of their gas, electric
plants, and tramways. Should these alluring arguments
prevail, the debt limit be removed, and full swing given to
municipal ownership experiments, the American taxpayers
will, in my opinion, invite ﬁnancial catastrophes far more
sweeping than any they have heretofore experienced.
The progress of municipal trading in America has not
been checked by lack of rhetorical ability or activity on the
part of its advocates. Mr. Bryan, who twice contested the
Presidency on the Free Silver issue, is one of its vehement
supporters, and the idea has become ﬁrmly incorporated in
the National Democratic Platform. Mr. Richard Croker,
whose studies during his residence in England have perhaps
been directed more to the British Turf than to the beneﬁcent
results of municipal trading, is an advocate of the expansion
of municipal industry, and Tammany is not unwilling
to share in its proﬁts. To these powerful political factors
we may add a number of excellent and well-meaning
college professors and quasi-economists, who have con-
fused what Mr. Garcke so aptly calls the “higher and
he
9
nobler municipal enterprises ” with the more sordid
desire of proﬁt-making, and are vigorously urging our
city councils to follow England in these hazardous enter-
prises. In support of these ideas we have continuously been
told of the success of these undertakings, when managed by
capable, upright, and experienced town clerks and aldermen
ofx England. The picture, I do assure you, has been painted
with none too ﬁne a brush, and the pigment, in places, laid
on pretty thick. It is not over-ﬂattering to ourselves.
While the city corporations of England were reaping
enormous proﬁts in gas, in electric light, in efﬁcient tram-
ways, in running omnibus lines, in selling supplies, and
the Government rolling in wealth in the telegraph and tele-
phone business, your short-sighted kin beyond the sea were
being insufﬁciently supplied with those public utilities at a
high price by private companies who were using the streets
free of cost and otherwise imposing on the public. So widely
have these arguments been disseminated in America that those
who have opposed the absorption of private industry by public
ofﬁcials have been obliged to entera demurrer in the English
case. I have been obliged to enter a demurrer. I think that
means practically “ what of it P ” It means an admission of
fact. We simply said, “We are so bad that we cannot do
what the English do,” so on the demurrer we had to rest.
That is, we have met this avalanche of oratory and rhetoric
with the “ what of it ” of the lawyer, and taken the ground
that, if all that is claimed is true of the success of municipal
trading in England, the conditions were so different with
ns—Tammany, Crokerism, and so forth—that such experi-
ments would be both unwise and dangerous. I recall the fact
that Professor Albert Shaw, the American Columbus of many
of these daring British municipal experiments, and whose
admirable volumes on the subject are well known, when
asked by a commission appointed by the State of New York
to investigate the question, if he would be willing to see his
theory of municipal ownership of tramways and gasworks
A 2
10
applied to the City of New York, promptly replied, “.I have
never dreamed of advocating municipal ownership in New
York.” Here, then, has been our difﬁculty. After dilating
to”the extent of hundreds, nay, I would not exaggerate
if I said thousands of pamphlets and volumes on the beauti'
ful but dangerous course your municipalists have adopted
in England, the more far-seeing and responsible of our own
economists—especially if they happen to be ratepayers-—
hesitate when it is demanded they shall put their theories
‘into practice in their own city. “Try it,” they say, “in
some other city or in some other country, but we want no.
expansion of municipal industry in our own city.” It is the
old story of the doctor’s unwillingness to take his own
physic. Up to within a few years ago this was the situation
with us. Municipal ownership made an excellent class-
room topic, and the men who discussed its advance in
England, as an abstract question, had little to say about its
practical adoption in the United States. Here and there a
city owned a gasworks, notably Philadelphia, but in that
particular case the management was so abominable and.
scandalous that when it was turned over some four years
ago to an enterprising and responsible company, all decent
citizens rejoiced. Since then Philadelphia has had better
gas, and the city is making a handsome income on the
franchise it has granted to the private company. A few
other examples of municipal electric plants and gasworks
might be quoted. Two of the most important municipal
gasworks—those of Toledo and Columbus—last month
were sold to private companies after a sad history of loss to
the ratepayer and scandal in respect of the municipal
government of the cities. In a report made by the
Department of Labour two (2) years ago, I ﬁnd that
in about one hundred and ﬁfty (150) of our principal
cities and towns, more than two-thirds (2-3), includ-
ing all the large cities, own and operate their own water-
works. A glance at the column relating to gasworks and
11
electric plants reveals the fact that only two or three
cities own their own gasworks, and about a dozen their own
electric plants, while no city is reported as owning its
tramway. This may be substantially regarded as the
condition of affairs at the present time. We seem to have
been more successful than you in drawing the boundary
line, as it were, between legitimate and illegitimate municipal
undertakings. Rightly or wrongly, we have drawn that line
on‘w‘aterworks, on the ground that the water supply of a city
is closely allied to its sanitary conditions, and that there is
no injustice in levying tribute relative to the ability to pay
for a good and sufﬁcient water supply. In the cases where
the water supply is in the hands of private companies the
cities have either been unenterprising or perhaps the debt
limit may have prevented the purchase of the waterworks.
The tendency, I think, is for cities to take over the water»
works, and there seems to be no objection from any quarter.
The statistics found in the current issue of the “English
Municipal Year Book” show you have been more erratic
than we in dealing with this problem. You have dashed
ahead along some lines that we should regard as extremely
hazardous, and in other directions, the control of waterworks
for example, you have taken the opposite course. Thus one
is surprised to ﬁnd the London County Council running omni-
bus lines, erecting small but expensive electric plants to supply
limited areas of street-lamps, building tramways, planning
extensive subways from Westminster to the Bank, while the
water supply of the greatest modern city is in the hands of
private companies. I am aware of the eﬁorts made to pur-
chase the London waterworks, and of the obstacles in the path,
but think that the desired result could have better been
obtained had the County Council concentrated its energies
instead of going into too many iridescent schemes. The
trouble with that body, as it appears to an outsider, is that it
scatters too much. The tendency to scatter or spread out
into too many things is dangerous to a business man—it is
12
ruinous to a public body. There is no constitutional limit
to the debt-creating power of London County Council, but
the price of its securities suggests that a large increase of
those bonds might not be practicable.’“e Looking over the
entire ﬁeld, I ﬁnd about half the capital invested in your
tramways owned by municipal authorities ; about one-third
of the capital in gasworks; by far the largest portion of
the capital in electric light plants, but only half the munici-
pal boroughs of England seem to own their'own water-
works. These general facts indicate the diﬁiculty you will
have in deﬁning where municipal enterprise in such matters
should rightly end and private enterprise begin. On this
point, as has been shown, we have plainer sailing in America
than you have here.
Within the last few years a change seems to have come
over this municipal dream of yours. While we, as I have
said, have been obliged to argue our case in the United
States on a demurrer so far as England’s experiences were
concerned, there has arisen within the very shadow of Spring
Gardens a perverse generation which has set about the
demolition of the idols we have been told to bow down to and
worship. The attack on the temple of municipal trading
has been sharp and decisive, and the ediﬁce is almost rent in
twain. Having accomplished its partial destruction your-
selves, aided as you have been by your own Chambers of
Commerce, by the Society of Arts debate, by the Royal
Statistical Society’s investigations of the ﬁnancial side of the
question, by the Parliamentary Committee, by numerous
able pamphlets, and more recently by that powerful ally
the London Times, you must not ask us foreigners to gaze
upon what is left of the ediﬁce and pronounce it complete

* The average discount rate at which the most recent loan works
out at the comparatively high ﬁgure of £3 9s. 1d. per cent., or rather
less than the quotation in Lombard~street for six months’ ﬁnepaper.
which hardened this week to 3k g per cent. Conditions have indeed
changed since the Spring Gardens authority could market Two and a
Half per Cent. Stock above par.
13
and satisfactory. We are more likely to enter the sacred
precincts through the aperture you have made in it and
endeavour to solve the mystery of its departed power. We
may even be encouraged to compare the cost of some of
these boasted achievements with similar undertakings of our
own. We might be tempted to ascertain if under a different
method we have been able, by utilising individual effort and
private capital, to give the public as cheap and as efﬁcient
service. You, gentlemen, are too familiar with the short—
comings of municipal trading to need even a recapitulation
to—night. You found it did not ﬁt in with the extension
of modern enterprise. You wanted to distribute your
electrical power and sell it cheaply for all sorts of purposes,
and you were blocked by a combination of town clerks.
There was a demand for cheap PI‘OdllCK‘l'S, gas for use
in the gas engine, the latest and cheapest invention for
motor power, and you were held up by municipalities \VllOSv
business interests prompted them to oppose cheap power.
So it was with light—electric and gas—and with the exten-
sion of tramways and light railways. Then it was that you
discovered that these towns and cities, with their retinue of
ofﬁcials, had been merely nibbling at the electrical industry.
Private enterprise was being dampened and dwarfed by
hold-ups in the shape of provisional orders. Meantime
England was behind even Italy in an industry in which she
should, by right of priority of practical application, have led
Europe, and been side by side with the United States. YVhen
these facts were fully established, your British ire was
thoroughly aroused. Whatever may be the ﬁnal outcome,
and whether you ever come to any understanding with these
authorities, as to boundary lines, or not, you have weakened
their power. If they still, as is probable, cling tenaciously
to that which they have, they will have to ﬁght harder
for that which they may in future wish to appropriate. The
municipal traders may preach “no ﬁnality to municipal
trading,” but Parliament, the limitation of the debt creating
14
power, the patience of the ratepayer, and the necessity of
encouraging British industry will prevent its being carried
out. Still more disastrous will be the trap which Mr. Garcke
has set for the municipalists, and into which Mr. Donald,
editor of the .Municz'pal Journal, recently precipitated him-
self.
As I have said, until the severe attacks on municipal
trading referred to above, we had been given to understand
in America that in England wonderful success had attended
the efforts of municipalities to monopolise individual
endeavour or enterprise. The appeal, however, was chiefly
made on the exceedingly fallacious ground that the “ proﬁts ”
thus extracted from the pockets of the capable and enterpris-
ing, the energetic and far-sighted, the ingenious and the
inventive were enabling the rest of the community to live
free of taxation. Herein lay its chief attraction. Mr.
Donald disposes of this point himself, and thus denudes the
whole theory of “ no ﬁnality to municipal enterprise ” of its
principal charm to American municipalities, by the following
der-laration :—“ It would be preferable in all cases that
municipalities ceased to make proﬁts from their undertakings
-—whether water, gas, electricity, or tramways.” Here we
have an advocate of municipal trading in England abandon-
ing the very essence of the argument of his co-labourers
across the Atlantic. The bait of lower taxation is the
luscious morsel which the Bryanite orator and American
college professor have been dangling before our taxpayers.
Without it the subject will not prove permanently attractive,
and hardly command respectful attention.
The Parliamentary Committee on Municipal Trading has
given the British public full information on the merits and
demerits of municipal trading. Much of the work done by
your English cities deserves nothing but the highest
commendation from the American side of» the Atlantic. It
is a pleasure for me to be able to inform you that here and
there we are endeavouring to follow in your footsteps in all
\
is
,matters that contribute to a higher civic life. At this
moment we are, as you know, making a united and non-
partisan ﬁght to rescue New York from the evil inﬂuence of
Tammany.”“ Municipal government in the United States
is not so bad as it/is sometimes painted, and in many of
our cities of medium size we enjoy capable and honest
government. Nevertheless, we are willing to follow your
municipalities in the higher and nobler work they are doing,
providing it does not take us along the dangerous river of
municipal trading into the unknown sea of Socialism. The
expansion of the functions of municipal government for
the protection of public safety and public health is legitimate,
and should be encouraged. The question you gentlemen
must solve is: “ Must the economic and idealistic functions
of municipal government expand in like manner?” We
have gone around the circle, and here we are back to the
old issue which marks the parting of the ways. You will
have more diﬁiculty in ﬁnding the safe road here in
England than we shall have in the United States——
that is, if we can only hold municipal ambition down to
the non-proﬁt producing undertakings. My esteemed friend
John Boyd Thatcher, Mayor of Albany, once said when
speaking on this subject :-—“ If the city may do those things
for the individual which he cannot do for himself, may it
do for him those things which he ﬁnds it inconvenient to do
for himself ? If it may care for his safety and health, may
it also care for his morals and his comforts P If it may build
him an academy to educate a sound mind, may it build him
a gymnasium to develop a sound body P If it build him a
gymnasium to .train his muscles, may it erect an arena to
test his prowess? If it publish police rules and regulations
for his conduct, may it establish an ethical college to teach
him the foundation of obligation? If it may teach him
* Since the date of the delivery of this address the Tammany forces
have been defeated, and as we may hope, for a more honest govern-
ment of New York. ‘
16
ethics, may it teach him religion ? And may all these things
be done at public expense P Here our vessel breaks from its
moorings and drifts toward the beautiful but dangerous coast
of paternal government.” These words are quoted because
they summarise the arguments which you gentlemen meet
with every day. Those who believe in and want paternal
government and Socialism, frankly tell you they favour the
whole socialistic programme, that a city should conduct all
functions from the worship of the Almighty down to the
manufacture of tooth brushes. Those who do not believe in
Socialism, and yet persist in enlarging the sphere of municipal
trading, should realise that by the destruction of individual
eﬁort they are rapidly undermining the very'foundation of
their country’s strength and greatness.
If the State or city takes away one after another the
opportunities for proﬁtable employment of private capital,
and brains (the latest proposal being ﬁre insurance), the
logical result is that other occupations become overcrowded,
the struggle for existence gets harder, and an increasing
number of persons must come upon the State or city for
support. The State’s function is to give every man an
opportunity to do business under a stable government. The
question will be asked, Is it safe to trust municipalities to
do all these things at public expense P in spite of the cry,
“ N o ﬁnality to municipal enterprise,” there will be a ﬁnality
when, as Mr. Thatcher suggests, the vessel of municipal
trading “breaks from its moorings, and drifts towards the
alluring but dangerous coast of paternal government.”\
Germany has lately set her face against municipal ownership
and operation of public utilities, for the simple reason that
she had carried ofﬁcialism as far as it was prudent to go.
The Government employees tended always to increase ; and
there, as in England and America, it was found that
employment by the Government signiﬁed much which did
not at once appear. The line had to be drawn somewhere,
even in Germany ; it was not considered expedient to add to
17
the number already existing, the numerous ofﬁcials and
employees of all the street railway systems in the empire.
That State or municipal ownership deadens enterprise
there can be no sort of doubt. That the timid policy of your
Parliament in tying these great'modern enterprises to the
apron-strings of local political boards by such legislation as
the Tramway Act, the various Lighting Acts, and now the
Telephone Act of 1899, has had much to do with the back-
ward condition of the electrical and other great industries, is
proved by the testimony before the Select Committee. In a
like manner the over-zealous corporation, in thwarting
company enterprise, because of its own investments in these
undertakings, has soaked the activity out of private capital,
and kept it back from channels which it would otherwise
have sought, 'to the beneﬁt of the kingdom at large. In
short, it has chilled enterprise. In the United States capital
in these industries has had a freer headway—not a go-
as-you-please, as some seem to imagine—than in England;
and, in my opinion, the results have been more satisfactory.
Private enterprise may need curbing a bit, and this work our
various State Legislatures seem fully competent to perform.
Better let such undertakings become proﬁtable, and reward
individual endeavour and enterprise, than by unjust impedi-
ments and State and local “jay-hawking,” leave them in a
moribund condition.
Perhaps, in conclusion, you will pardon me for saying a
word on what we have accomplished in the United States in
certain branches of industry which your municipalities seem
to watch over so zealously. Take, for example, our twenty
thousand (20,000) miles of street railways, not a mile of
which is under the fostering care of a town clerk—though
some of it may be in the hands of a Receiver-—-“ better that,”
I hear you say, “ than on the rates.” The private capital
involved in this industry—almost brought into existence
since the introduction of electricity as a motor—is variously
estimated from three hundred million pounds ($500,990,000)
A
18
to four hundred million (£400,000,000). Our gasworks and
electric light plants have gone on increasing side by side.
When electric light was ﬁrst introduced, gas stocks went
down, but private capital soon rallied, and individual
courage invented new methods to make gas cheaper, and new
avenues for its use—power producing, cooking, &c., so that
the consumption of gas has doubled and trebled while electric ‘
lights are being strung up all over the country. To-day I
am told by one of our greatest experts that the best,
steadiest, and cheapest electric light can be made with the
aid of gas. Yet some of your municipalities are snapping at
private capital and holding up provisional orders for electric
plants because they own and operate gas plants, and
are doing all sorts of other queer and antiquated things
based, I believe, on the theory that gas and electricity are
rivals. Why, they don’t show the enterprise of a little
American train boy I once heard‘ of, who asked an irascible
old gentleman to buy a box of sweets. “Can’t you see I
have no teeth?” said the old man, crossly. “Gum drops,
ten cents a package,” replied the smart American lad. That
is good business. If people don’t want gas, give them electric
light. If they don’t want municipal light, give them private
company light. There is too much of the spirit of “You
must have what we have got ” about this municipal trading
idea to make it popular in the United States. If private
capital wants to take the risk to give a community cheaper
transportation, cheaper or better gas, to encourage its use for
cooking or for manufacturing purposes, by distribution over
large areas, by all means let them do it. If individual effort
and private capital want to start electric-light plants, or dis-
tributing power houses, the way will be found in an
American city. You won’t ﬁnd energy'of this sort in
America hopelessly knocking at the city gates, as you do in
some of the modern walled municipalities of England.
“ That is all very well,” I hear my municipal friends say,
"‘ but we must keep out these tramways and gas, and electric
19
and telephone and telegraph companies, for they spoil our
streets and run their rails and mains‘ and poles and elevated
structures and tunnels and subways in every direction, and
the public gets nothing in return.” While I do not propose
to be enticed into a defence of all the private company
iniquity of the United States, and while there has been and
is now much that is reprehensible in their actions, we
are still obliged to admit that the general result has been
satisfactory. Public ofﬁcials are giving more attention to
these matters, and the rights of the public are much more
carefully guarded than heretofore. A municipal trading city
may make a proﬁt on its transportation, its gas supply, and
its electric lighting. It is for you to demand how that
proﬁt compares with the amount of money which our private
companies annually pay into the city and State treasury for
the right to use the streets for various purposes. Mr. Garcke
has given us, I think, nine sound principles which should
be strictly adhered to, in making ﬁscal comparisons between
corporation and company undertakings. Prominent among
these should be an estimate of the taxes which amuncipalised
city loses by owning and operating its own proﬁt-making
undertakings. One of my municipalistic friends saidto me the
other day, that the city was entitled to every penny of the
proﬁt from such enterprises. Suppose, for argument sake,
we admit this assumption. Having done so, can we not
conceive of a condition wherein private enterprise, with its
greater experience, its scientiﬁc experts, and with its bolder
operation, might bring better results, in a given ﬁeld, and
while yielding a proﬁt for its own capital and a reward for
its own enterprise and experience—which should not be
given grudgingly~—~still pay a greater sum into the city
treasury, and at the same time serve the public more cheaply
and more efﬁciently. There, for example, is the Brooklyn
Rapid Transit Company paying over £200,000 annually as
taxes. It has worked up a big business in transportation,
has consolidated smaller tramways, pays the city nearly
20
£40,000 annually for the privilege of carrying passengers
from New York free across the Brooklyn Bridge, and, if you
wish, will carry you twenty-two miles at good speed for the
modest fare of ﬁve cents (212-d.). Then, again, we have the
Metropolitan Street Railway of New York, carrying nearly
200,000,000 passengers on transfers, free of cost—£2,000,000
thrown away, some people contend. Surely here we can match
your municipalists’ halfpenny fares, of which we hear so
much. On the contrary, this bold stroke of free transfers
brings business just as it would if some great central company
secured the underground and tubular railways of London,
electriﬁed the roads, uniﬁed the fares, and sent the passen-
gers night and morning in whichever direction they wished
without thought of so much fare for so many miles, or
of class, for a distance of ten or ﬁfteen or even twenty
miles around London. This same New York Metropolitan
Railway has just scrap—heaped a good cable plant worth
over a million sterling because it stood in the way of
electric progress. The same company last year paid
nearly £200,000 in taxes, without counting the value of
paving and street cleaning, and removal of snow which is
done for the city, and is charged in with operating expenses
of the tramway company. The Union Traction Company of
Philadelphia have made me an estimate of their taxes, and
including the cost of the maintenance of paving, removal of
snow and ice, and the interest on the original £2,800,000, the
cost of improved pavements laid by the company at the time
the franchise was granted, this aggregates over £400,000
annually. These would seem goodly sums, and certainly
dispose of the assertions that the American street railway
companies use the streets free. The ofﬁcial report from
Massachusetts shows on gross receipts of about £4,600,000
for all the street railways of the State, taxes of £270,000—a
triﬂe over 6 per cent. of gross earnings. These companies
also pay an enormous sum for injuries and damages. Our
Courts are severe on the railways, and the juries liberal to
21
the injured passenger. The Brooklyn Rapid Transit paid
last year £160,000 ; the Metropolitan Railway of New York,
£67,000 ; and the street railways of Massachusetts, £120,000.
The Manhattan Elevated Railway of New York, besides its
‘ very heavy annual taxes, has paid since its existence,
£2,500,000 in claims for damages, and has an equal
number of claims still pending. , Here and there large
fortunes have been made out of these ventures, but the
street railway companies of the United States, when the
enormous items of expenditure as above indicated are de-
ducted, are not making as much money as the municipal
trader seems to think. The same holds true of the Com-
panies supplying gas, electricity, telephone communication,
and telegraph service. The British Government is losing
heavily, I understand, on its telegraph business. We have
two competing companies which give us a good and cheap
telegraph service, and both seem to make reasonable dividends
in spite of the inroads of the telephone. The unhappy story
of your telephone industry, divided now under three heads——
Governmental, Municipal, and Private—is too familiar to
this gathering to require more than a passing reference. A
strong company, if given a fair chance, would have, in my
opinion, served both the public and State more satisfactorily.
The telephone is of real value in the United States because
it works well, the connections are quickly made, and it is
easily reached. In our large cities, public telephones may
be found on almost every block. Our telephone parlours in
some cities are places of luxury where you may read the
newspapers and smoke while waiting, and, as your calls are
answered, do business all over the United States. Sharp-
witted and quick American girls serve you with civility and
promptitude. If you do not get the person you want, you
do not pay. The trouble that some of these operators take
to connect the proper exchanges, and get the right people to
the telephone, would astonish the coolly indiﬁerent operators
in British postal or trunk-line exchanges. It is private
““I
22
business, you see, and in many instances competing business.
It pays to push it. And it is vigorously pushed.
You will appreciate that these few facts are not sub-
mitted in a boasting spirit. We have by no means solved
these problems, and have much to learn in dealing with them.
Again conditions differ so widely that what may be suitable
for us might not be practicable in England. We have begun
much of this work with a clean sheet of paper before
us, and have worked out our plans without the numerous
obstacles which your older civilisation places in the way. If
I have been able to show that we are not quite so foolish in
dealing with these franchises, and conducting these extensive
business operations, as some of your municipalists seem to
imagine, I shall be very happy. If our experience will help
you to a greater development in these industries, I shall have
accomplished all I could possibly hope to do. The London
Chamber of Commerce has done excellent work in exposing
the fallacies of municipal trading, and whenever opportunity
is afforded you I am sure you will continue to demonstrate
the great fundamental fact that individual enterprise can not
only conduct these industries better, but yield larger results
for the relief of the ratepayer for any rights or privileges
which may be granted to individuals by the City: We are
at this moment constructing a subway the entire length of
Manhattan Island, much of the way through solid rock. It
is admittedly the greatest work of rapid transit yet executed.
The contract has been let to a private contractor, under a
heavy bond to construct and operate. It will probably
necessitate the outlay of £10,000,000 sterling before the
railway is equipped and running. It will, as I have said,
be leased thereafter for a term of years to the contractor
under the strictest rules and regulations. The interest of
the city and the public have been most carefully looked
after in this contract, and ultimately the city will come
into possession of the subway. At the same time itaffords
abundant opportunity to private enterprise. Thinking an
-
23
arrangement so satisfactory was in line with the views of
one of , your London municipalists, I submitted to this
gentleman the other day a summary of the contract, agree-
ment, and lease. He said no, he did not believe in it at
all. If there was any proﬁt in it, the city should get it all.
This spirit is death to all kinds of enterprise, and you are
justiﬁed in ﬁghting it as vigorously as possible.
In conclusion, Mr. Porter said : I want to thank you very
much indeed for suffering this inﬂiction in such a pleasant
manner, and for the very kind and altogether too generous
reception you have given me. (Cheers)
The CHAIRMAN said he had to report letters of regret
from Mr. Alban Gibbs, MP. for the City of London, and
Mr. Carnegie, the latter gentleman stating that “he was
glad to hear that his friend Porter was to receive deserved
recognition.”
Sir CHARLES RIVERS WILSON, G.O.M.G., O.B., said
that Mr. Porter in the admirable paper he had just read
had covered really the whole of the question. Nothing
surprised him more than the grasp which he had
obtained of all the facts of this complicated and difﬁcult
matter, which, to a certain degree, must have been
unfamiliar to him until he came over here. He seemed
to have got every point of importance. He could not
perceive a single flaw or inaccuracy in any of his
statements 'with one exception. They would agree that
Mr. Porter had been insufﬁciently informed when he said that ,
the temple of municipal trading had almost been com-
pletely riven in twain. That was not the case. The battle
had not been won, by any manner of means. The Cham-
ber of Commerce had done gallant service, and put them-
selves in the forefront of the battle; but it was not to be
expected they would conquer in the ﬁght unless they
received more support from the Government, the public
generally, and Parliament; and it is in that direction that
24
all the eﬁorts of those interested in this question should be
applied. He urged them to try and form popular ,opinion
on this subject, and it could be done by disseminating,
information and arguments such as they had listened to
that night. He hoped that the interesting and important
document contributed by Mr. Porter would be printed and
circulated and given the widest publicity. Coming as it did
from the representative of a neighbouring friendly and pro-
gressive country, he trusted it would give a stimulus to their
lethargical, indifferent, and perhaps interested legislators.
The battle would have to be fought again next year. He
thanked Mr. Porter extremely for the service he had
rendered them, which was worthy of his great reputation.
Mr. YERKES said he had noted down in his mind various
things that he wished to say, all of which had been touched
upon by the chairman and Mr. Porter. The question of
municipal ownership—as they called it in America—was a
matter that had been very near to his heart. He had had to
do with municipalities, with corporations, municipal
corporations, and he had had the fortune, whether good
or bad, of always being opposed to them. It had
been rather a rocky road sometimes, but they had
got through. There seemed to be an idea in the
minds of some people that the municipality should
own everything ; if not everything, at least a great deal, and
if not a great deal, at least something. They started with
the waterworks—in England they had not been so unfortu-
nate. He believed that private corporations should own
everything which pertained to the work of a municipality,
and that the municipalist, or whatever they might call him,
had plenty to do to look after the education, the health, and
the good conduct of the city. For him to enter into business
of any kind was to enter a realm that he knew nothing
of. What was wanted was experience. They did not
want a shipmaker to build a house; neither did they
1
25
want 'a mason to make a watch ; they wanted every
Jack to his trade, and the trade of the municipalist was
not in running railways, gasworks, or anything that pertained
to the industries of a State. When it came to keeping shops
or running an omnibus line or anything of that kind, it was
simply ridiculous. This meant “ hunting around” for some
way to get power and spend money. If he would let these
things alone, attend to the cleanliness of the city, its good
conduct, the education of the people, the welfare of thepoor,
and many things of that kind, he would ﬁnd he would more
than have his hands full. He fully and sincerely believed
that the fact that they had private corporations in the United
States had been the salvation of the people. If the Govern-
ment had owned the railways, the street cars, and the gas-
works, they would not have as prosperous a country as they
had to-day. Look at the countries of Europe where the
Government owned these things. Let them say how many
miles of railroad they had ; notice the manner in which
those railroads were run. Why, they were simply nothing
as compared with those in the United States, where they had
tens of thousands of miles in good condition, controlled
by men who had been brought up to it from boyhood.
He thought the men who were working in shops, who
had been brought up to business from the time they
ﬁrst knew what business was, were the kind of men to make
progress. It was not the Government ofﬁcial who was only
giving a little of his time and hiring a lot of clerks to do his
work ; those were not the men that were progressive. Looking
a municipal ownerships in the United States—and fortunately
they were extremely few—there was an instance that stood
out beyond all others ; he did not know of another instance
in the whole world that was equal to it, and that was the
experience of the city of Philadelphia. He was a resident
there for a great many years, until he was forty years of
age. Everything was arranged in the very early days, before
he was born, in fact, in such' a manner that the city could
26 ‘
some day own the gasworks subject to municipal control.
The city of Philadelphia was more like London than any
other American city. It was originally composed of a
number of townships. First there was the city itself,
which was very small, then there was the district of
the Southern Liberties, the district of Kensington, the
district of Southwark, and other districts. They were
all combined to make the city of Philadelphia, and
they were practically the county of Philadelphia. When
the gasworks were organised they were placed under
an Act of Legislature which provided that these different
districts should buy the gasworks located therein. When he
was quite a lad there was a party formed, and they concluded
they would consolidate the city of Philadelphia, and an Act
of Consolidation was passed which joined together all these
different districts with all these various gasworks. This
same party obtained a controlling interest, and concluded
they would buy the gasworks of ,the City of Philadelphia as
it then was. They bought these gasworks, and they were
organised according to law in a Trust, and there were a
lot of trustees who were appointed by the council—a sort
of common council of the city of Philadelphia. In that
way the city council appointed, not elected, but they
got together the dominant party, and they appointed so
many gas trustees. He believed there were twelve, who
were then empowered to go ahead and buy the gasworks.
According to law there were three appraisers appointed—
one by the gas company, one by the city, and one chosen
by the two. The gas companies, of course, took into
their conﬁdence the politicians; the politicians appointed
the gentlemen that they asked them to appoint, and the city
of Philadelphia paid 75 per cent. more for the gasworks
than they were worth. This operation extended over a
period of about a year, and during that year there were no
improvements made to the gasworks but, on the contrary,
lots of big bills were run up. The city came into possession
27
of the gasworks; they were run by the trustees, who were
appointed by the City Council. After’they had fairly got
under weigh the gas trustees making coal gas employed
thousands of men, and when election time came round,
thousands of men would be employed by these gas trustees,
and would really control the election, and, instead of
the City Council appointing the gas trustees, no
man could be nominated for a position on the Council
unless he had passed through the ordeal of the gas
trustees. They ran the whole city, and they did it for
twenty-ﬁve years. He warned them that if the British
Parliament sanctioned any such powers as that, they would
ﬁnd that the Municipal Councils would have a broad, strong
grip on Parliament. That was the past exempliﬁcation of
how_the thing worked as regards municipal control in
American cities. If they had the railroads and tramways
controlled entirely by the County Council, the County
Council would have thousands and thousands of men on the
roads, and the people who were in power to-day would be
in power next year, the year after, and continually. He
did not think the thing would work; and when it came
to their keeping shops and going into mercantile business,
why, the idea of the County Council running a mercantile
establishment was absurd. It would not do at all. It was
a spirit of socialism that had got hold of the people, and that
was what they were running to.
Lord CLAUD HAMILTON endorsed the remarks of Sir C. R.
Wilson on the admirable paper read by Mr. Porter. It
showed a wide knowledge of our institutions, and of the
difficulties to be faced which might in the future, as at
present, affect legislative commercial enterprise. He believed
he was the only railway chairman present. Now, if anyone
in the kingdom was aﬁected by municipal trading it was the
railway companies, and the shareholders they represented.
Between 11 and 12 hundred millions sterling were invested
28
in British railways. During the past two years they had
experienced a period of very great difﬁculty. As a body, and
as representing a greater body of shareholders, the railway
companies were opposed tooth and nail to municipal enter—
prise, as it was understood and endeavoured to be under-
taken by various municipal bodies in this country. Why
were they assembled to make this protest? It happened
that he had the advantage of entering Parliament a very
long time ago, in the year 1865, and for twenty-three years
he remained in Parliament, and though he was a very
simple, retiring member, he still kept his eyes open, and
often asked himself why was the Board of Trade—a Govern-
ment institution on which so much depended—always a
second-rate Government department? He agreed that by the
dissemination of information, and especially the circulation
of the most admirable paper which had been read by
Mr. Porter, some good might be done, but Englishmen
and Scotsmen were slow-thinking people; they did not act
so quickly as their American cousins. Mr. Porter asked
whether they were afraid of American competition? Per-
sonally he valued their presence amongst them as an
incentive to activity, but what was wanted was not only the
dissemination of information, but the formation of local
bodies who would assist in the dissemination. As a case in
point, the company he represented had its works at Strat-
ford, in Essex. They paid £30,000 a year in rates, and up
to two years ago there was a most Socialistic and Radical
corporation at West Ham. He found it necessary to dismiss
a servant of the Great Eastern Railway who was a member
of that corporation, and this was resented by those who
thought with him. A proposition was actually brought
forward that the Great Eastern Railway should be boycotted,
that all traders in the borough of West Ham who had goods
to send, should not send them by the Great Eastern Railway.
That showed the spirit of thos gentlemen, whose views, if
carried into general effect, would in time ruin the trade of
29
the United Kingdom. What did they do ? They thought it
desirable to stem the torrent of Socialism in West Ham,
and so they started a Ratepayers’ Association on a non-
political basis. The result of the establishment of that
association was that at the last election the Socialistic
majority/ was swept away, and an ordinarily sensible pro-
gressive majority established in its stead. This could only
be done by active work within the particular constituencies
while this cancer existed. If such ratepayers’ associa-
tions were started in those boroughs where this spirit was
most rampant, and where it should be checked, they
would be doing more to carry out the views they held
than in any other way. The railway companies were fully
alive to the dangers which were threatening, and would
gladly co-operatewith the London Chamber of Commerce and
other bodies in opposing the extension of municipal trading.
Mr. Alderman WM. IVEY (late Mayor of West Ham) said
that Lord Claud Hamilton had not exaggerated the facts.
Lord \Claud represented the Great Eastern Railway—their
largest ratepayer—and they were assessed for the West Ham
rates to the tune of about £120,000 gross. They had been
badly treated, and had been long suffering. Any man who
had gone into municipal life should take apride in municipal
government in its best sense; but they found that many
men only obtained positions on local authorities for the sake
of power and of voting away other people’s money, without
exercising the same regard for, and judicious business ability
they displayed in, their own private affairs. In West Ham,
for instance, a man was elected to a body representing
300,000 people, a rateable value of over a million, and
46,000 assessments. About 43,000 were assessed at less than
£20. or under, and the remainder over. On every cottage
at less than this assessment they lost money, on
every factory they had to ﬁnd the deﬁcit caused by
the cottages. What was the result? A man who was
30
not good enough to be employed by a contractor or a
public company at 24s. a week, might be elected on the
Council, and his voting might turn hundreds of thousands
of pounds this way or that. Was that the spirit in which
municipal governments should be carried on in this
country? Personally he had had twelve years of it, and
was going to retire. He had proved how difﬁcult it was
for a municipal authority in this country to conduct its
business on the same lines as a man would carry it on for
either a company or his own personal advancement. He
agreed with the whole of Mr. Porter’s paper with one
exception. He said that he thought the water supply was
one question with which the municipal authority
.should deal. For years past the London County Council
had tried to promote a Bill in the House of Commons
on the water question, and they had been bitterly
opposed by the other local authorities in and around
London. Hundreds of thousands of pounds had been
thrown away on a useless ﬁght. He believed that the
Government were about to bring in a Bill enabling them-
selves to become the water authority of Greater London.
That was the scheme, and in his opinion the only possible
scheme for Greater London. There were eight companies
which supplied the whole of Greater London, and out-
side that area every town might have its own water supply,
but as it was absolutely impossible to get all the local
authorities to agree on the water question, the Government
ought to be the water authority for Greater London. As
regards municipal enterprise and trading, the Government
ought to impose a limitation beyond which it should not be
allowed to go. That was the only possible safeguard while
local bodies were being ﬁlled with men whose one object
was the keeping of their positions.
Mr. ATHERLEY JONES, K.C., M.P., said they were glad
to observe the lion of Municipalism lying down side by side
31
with the lamb of railway capitalism. He was also glad
to~see that there was no hostility in principle to the develop-
ment of healthy municipalism, because they honoured and
treasured the great municipal institutions of this country.
At the same time they felt this, and it was the crux of the
situation, that they were going through in England that
period of spasmodic and sporadic municipal enterprise which
was witnessed in America in the decade between 1840 and
1850. Mr. Porter told them that Americans ran amuck in
those years, and, as a consequence, a violent reaction, from
which they had not yet recovered, had set in. Since the
Reform Act of 1885 political parties catered for the franchise
of constituencies on the principle of which could give the
most, and they were taking large steps in advance without
having consolidated municipal institutions to enable them to
bear the heavier burdens which they were seeking to impose
upon them. But in this country also they were interested
in the solution of the extraordinarily interesting problems
of municipal trams, electric trams, steam trams, electric
lighting, and other developments. They found, however,
that municipalities endeavoured to retard those who were
willing to do those things which municipalities were unable
to do. There was no reason why private enterprise should
be retarded. They all knew that in their attempts t0"
deal with the extension of electric traction, and in-
deed electric lighting, they were met by the multiplied
hostility of a variety of independent units. It was
against that that they desired to contend, not in any
spirit of hostility, but in a spirit of conciliation and with the
desire to assist municipalities to realise that private enter-
prise could eﬁect in that direction far more than municipal
eﬁort; the competition of private enterprise was the most
effective safeguard of public security and public utility. He
concluded with an acknowledgment of the able speech of
Mr. Porter, and shared his general sentiments in desiring to
realise all that was best in the municipal institutions of this
32
country and in that great and magniﬁcent Republic across
the seas. ’
Mr. BASSETT HOPKlNS said he felt, with every other
speaker, that the paper which commenced the discussion
was an extremely instructive one, whatever point of view they
might adopt. He could not be expected to coincide with
everything that had fallen from previous speakers, or to
admit that it was impossible for a railway run by a State to
be as efﬁcient as one which was run by private owners. He
would rather travel, under many conditions, upon a Belgian
railway than upon some of the suburban lines which lay“/
between the metropolis and the town of Chatham. He was
not aware that the public had been able to see a report from
the Committee of the Chamber of Commerce on municipal
trading which they might use as a basis of thought and con-
sideration. He ventured to suggest that if they would
formulate certain deﬁnite propositions they would be more
likely to influence the ratepayers of the country, and through
them the governing bodies which had the control of the
municipal affairs of London, than by extreme propositions
which would rather repel than attract conﬁdence.
Mr. DIXON H. DAVIES welcomed the remark of Mr.
Bassett Hopkins, that those who took the view that some
restriction should be imposed upon action in the direction
of trading by the municipalities were actuated by no hos-
tility to those very desirable institutions. He did not think
Mr. Porter was quite correct in assuming that this country
had no experience of the mischievous interference of the
municipal authority in the direction of trade. Prior to
1833 the whole of the municipal government of this country
was constituted by the trades societies, the places on the
municipal body were ﬁlled up by co-option and by the elec-
tion of the guilds representing the different trades. The result
of this was that the whole of the powers of the municipalities
33
were operated for the purpose of serving the selﬁsh interests
of the particular trades represented by those guilds. The
ﬁrst act of the Reformed Parliament in 1833 was to alter the
constitution of the municipalities so far as it was based
upon trade, and consequently to prevent the power of
the town being applied as an engine of provincial
protection. Those who brought about that reform
were actuated in doing so by no spirit of hostility to
municipal institutions in this country, for the freeing of the
municipal institutions from the grasp of the guilds resulted
in an extraordinary development of population, resources
and of power in the great towns in this country, besides
encouraging principles of free trade. What was happening
now might be compared to the dog returning to his own
vomit, as they found muncipalities imposing restrictions
upon enterprise which were exactly comparable to those
of 1830, and the evil which was pointed out then had always
been the result of Governmental competition in the domain
of trade. He was struck by the ﬁgures that were men—
tioned of the vast stock which the railway companies of
this country had charge of. Even in these bad times
under the commercial management of the railway direc-
tors that great property produced a proﬁt of forty millions
sterling per annum. Compare that with the ﬁgure which was
mentioned in the Times that morning regarding only a portion
of the railways of France (instituted under Government
auspices and dependent for their returns on the aid of the
State), on account of which a deﬁcit of forty million francs
would be charged in the Budget of France next year. Let them
compare the two—in this country forty millions proﬁt, in
France forty-eight million francs deﬁcit. That was only
one indication of the failure of enterprise when it was sub-
jected to Governmental interference. Railway men knew of
many expansions of their systems, which would be desirable
from every point of view, and which were forbidden by
the municipalities. He could mention towns where
34
great railway companies had for years been projecting
important extensions, and which they had been pre-
vented from carrying out because those towns have
started municipal tramways, and because they believed the
railways would take away the trade from those tramways.
It was said of Cobden and Bright, when they undertook that
great agitation which freed the ports of this country, that
they were acting selﬁshly because they would be, in their
private capacity, the ﬁrst to beneﬁt by that freedom, but
that was not the entire effect of their action. He had not
the least faith, as a practical man, in the remedy suggested
by Mr. Bassett Hopkins. His own view was that the
remedy was ﬁnancial restriction. They must limit the
taxing power of these bodies. Mr. Porter had told them
that all over the United States of America there was a
deﬁnite limit. It was impossible for the authorities there
to levy a greater ﬁnancial burden than was represented by
a deﬁnite percentage of the values to be taxed. It was
of the highest importance they should do so. It was of
great importance that all that large amount of capital
which necessarily found its investment in Governmental
securities should not be absorbed by these municipal
authorities, and be frittered away in the advancement of
municipal industries which (as Mr. Porter had shown from
the experience of the United States) could be better achieved
by private association.
Mr. E. GAROKE proposed the health of Mr. Morse, the
chairman. ‘ He said Mr. Morse had done excellent service in
this cause. He had made very great sacriﬁces in order to
give effect .to his convictions upon this question. The
manner in which he organised the evidence which was
given before the Joint Committee of the two Houses last
year was worthy of their utmost- appreciation, and was
deserving of the gratitude of all those who took a deep
interest in this question.
35
Mr. PORTER said the reason he drew the line at the water-
works was that he thought everyone was entitled to that
free, without any proﬁt. Now if these gentlemen were
willing to give the gas over and the tramways over, that
was all right, but the idea of drawing the line on ~water was
for that reason and no other.
Mr. MORSE, in returning thanks, said that his share of the
work of the Committee had been done from a conviction
that they were right. There was no doubt whatever that the
work of the Municipal Trading Committee took up a great
deal of time. They had been very highly honoured in having
Mr. Porter amongst them, and his paper would be an epic
in their records, and would do great good throughout the
country. They were also obliged to Mr. Yerkes for his
remarks. The Municipal Trading Committee were not
opposed to municipalities doing the work for which they
were created, but objected to their taking up matters outside
their proper functions. John Stuart Mill had put the
matter very clearly when he said that :-—“ The true reason
in favour of leaving to voluntary associations all such
things as they are competent to perform would exist in equal
strength if it were certain that the work would be as well
or better done by public ofﬁcers.”
y
rm 3 Z
4413 CONFIDENTIAL TILL SEPTEMBER 12, 1902.
. 2.7

ADDRESS
DELIVERED BY
HoN.aoBERTraroRrER.
BEFORE THE
BRITISH ASSOCIATION,
BELFAST, SEPTEMBER 12a, 1902.

1 IAJIIIXJII:
PRINTED AT THE BEDFORD PRESS, 20 8t. 21, BEDFORDBURY, W.C.
___-
1902.
MUNICIPAL TRADING.

HAVE been requested by the President of the
Economic Section of the British Association
to submit a paper on “Municipal Trading,” a subject
which of late years has entered widely into economic
discussion, both in Great Britain and in the United
States. While this title conveys a precise meaning
and clear limitation of the question intended to be
discussed to the British economist and statistician,
we should express what is here intended a little
differently in America, namely .——“Municipal Owner-
ship of Public Utilities” or, to be still more brief,
“ Municipal Ownership.” The cities and towns of
the United Kingdom have exhibited much greater
activity in what may be called business ventures than
our cities in America, therefore, so far as actual
experience is concerned, I am afraid my observa-
tions will be extremely disappointing. The funda-
mental idea of the founders of the Republic was a
form of Government that would interfere as little
as possible with individual effort and enterprise; and
as a result, our railway systems and large city
undertakings of all kinds were left—so far as the
Federal Government was concerned—to make their
advent with as few restrictions and obstacles as
4
possible. In the early part of the last century the
various State Governments entered into ﬁnancial
partnership with the promoters of canals; and later,
when steam railways were introduced, states and
cities, and towns and counties, were alike appealed
to for assistance in building railways. Nor was
the appeal unheeded, for in the ’forties and ’ﬁfties
an epidemic, very similar to the present fever for
municipal trading in England, literally swept over
the country, and ended in bankruptcy and ruin, not
only of cities and towns, but of important States.
Bonds issued by State and local authorities for
the promotion of railways went in default; while
the unhappy taxpayers, deluded by the belief that
these were “productive,” not “unproductive,’7 under-
takings, were simply unable to stand up under the
burdens imposed upon them.
These and kindred experiences taught us the
useful lesson that there was a limit to State and
municipal credit; and though, as I have said, it
occurred before municipal trading was a known art,
it has had much to do with the hesitancy on the
part of the United States to plunge into experi-
mental municipal industries. The taxpayers of those
times, who saw their property practically conﬁscated
to pay for enterprises which should have been left
entirely to individual endeavour or private specu-
lators, invented a device known to us as “the debt
limit clause ;” and this clause, in some form or other,
has been inserted in nearly every State constitution
drawn and adopted since those days of ﬁnancial
5
disaster and destruction of State and local credit.
In some States, so deep were the scars that ad—
ditional clauses were inserted, prohibiting the use of
public funds in any industrial enterprise whatever.
The Supreme Court of the State of Michigan
recently, in construing this clause in the constitu-
tion of that State, compelled the city of Detroit
to return to a company a street railway which
that municipality had purchased, and was about
to operate. The debt limitation ranges from
10 per cent. of the assessed value of property
returned for taxation in New York to 5 per
cent. in many of the Western States, and in one
State to as low as two per cent. The method
of assessing property for taxation in America is
based on the capitalized value, and not on the
rental value, as in England. Thus, assuming the
assessed value of taxable property in New York
City is £600,000,000, the limit of its indebtedness
would be £60,000,000. In returning property for
taxation, some States assess the value much higher
than others, so a ﬁve per cent. debt limit in a
State where the assessment is very low, may work
out about the same as a ten per cent. debt limit
in a State where the assessed value of property more
nearly approaches its real value. The period for
repayment of local loans in America is much shorter
than in England, extending generally about twenty-
five years. This seems to give our cities sufﬁcient
borrowing powers for their legitimate needs, but
not latitude enough for a full swing in the fasci-
6.
nating arena of municipal trading. Partially
because of the debt limitation, and partially
because private enterprise has been allowed a freer
headway in such undertakings as the supply of gas,
electric lighting, tramways, and telephones, we ﬁnd
in the United States no city owning and operating
its own tramways and street railways, probably less
than half-a-dozen manufacturing gas, a very few
engaged in supplying electric light, and, I think,
not one engaged in the telephone business. Ameri-
can cities, however, are well supplied with all such
utilities. We have at least 20,000 miles of very
good street railways, nearly all propelled by electric
traction, and, as a rule, planned to take the popula-
tion from the congested districts quickly into the
suburbs at a moderate uniform fare. The distance
one can travel on these electric tramways for 2%d.
ranges from 5 miles to 15 miles. The companies
pay annually large sums, aside from the regular
taxes on capital, for the use of the streets; and so far
as these amounts are comparable, I ﬁnd they bring
as much net revenue to the municipal treasury as
the proﬁts of your best-managed municipal enter-
prises. The public on both sides of the Atlantic
seem to be equally well served, according to their
respective requirements. In America we believe in
the cheap, quick, long-distance haul, enabling the
wage7earner to have a small home beyond the
bricks and mortar and smoke of our modern centres
of industrial energy. In England I ﬁnd those who
favour IlluﬁlClllml trading put especial emphasis on
7
the short penny, and even halfpenny, fares. The
quick short distance and lower-priced haul is un-
doubtedly growing in favour in the United Kingdom.
The workman, I am told, does not like to be too
far away, as living near enables his family—boys
and girls—often to earn a living. This may be better
for England, but whichever policy be pursued,
private companies would be as likely to ﬁnd out
and adopt the most expedient and proﬁtable
method as municipal authorities.
Our cities are well supplied with good quality
of gas, at prices generally regulated by the State
legislatures. In many cities, competition has
brought down the price below legal rate, and it has
been found difﬁcult, if not impossible, to put it up
again. The few experiences we can point to in which
cities have undertaken to supply their own gas
have been melancholy failures. Some few of the
smaller towns have undertaken municipal electric
lighting; but where comparisons are possible, the cost
is found to be relatively higher. We have had no
experience in municipal telephoning. Since the
expiration of the original patents, competition has
not only greatly increased the efﬁciency and reduced
the cost, but in some States where the laws have
effectually regulated these monopolies, established a
service that would be difﬁcult to excel. I need only
mention the State of Indiana: population, two-and-a
half millions, with ﬁfty-ﬁve thousand exchanges
belonging to one company and twenty-two thousand
to another—in all, for the State, seventy-seven

8
thousand eXchanges. The cost for unlimited use in
business in Indianapolis is £8 per year; for residence
less than £5. In the smaller exchanges, the prices
range from 4s. to, 8s. per month. One-ﬁfth of the
whole number of exchanges are in farmhouses.
Without for a moment assuming that we
have solved the difﬁcult problem of the manage-
ment and restriction of public utilities, a study
of the history of the several industries above
mentioned, in the United States, will, I think,
show that our progress has been on the whole
satisfactory, and that public requirements have been
fairly looked after. We have about £400,000,000
invested in street railways, and as much more
in gas, electric lighting and telephoning: an esti-
mated total of, say, £800,000,000. We may be
thankful that this huge sum has not been added
to our municipal debts, even if it may properly be
placed in that seductive column the municipal
trader has christened “productive debt.” Produc-
tive or non-productive, we have an inherent
antipathy to debt, National, State, or local, in
America, and hesitate to shunt it off upon posterity.
Immediately after the Civil War, we vigorously
attacked our immense National Debt, and would
have wiped it out in one generation, had it not
been for the Spanish war. State debts which
were once burdensome have been similarly reduced;
our municipal indebtedness shows a great pro-
portionate decrease between 1880 and 1890, when
compared with the increase of taxable values; and,
9
I think, an actual diminution will be shown during
the decade ended 1900.
Municipal trading is rapidly increasing munici-
pal debt in England, and serious complaints may be
heard on all sides in consequence of the increase of
local taxation. The answer is that the debt is
“productive,” and that the proﬁts of these in-
dustrial undertakings will be used to reduce the
taxes. If the object of all this municipal trading
was proﬁt, it would be simpler to exact adequate
compensation from private companies for the occu-
pation or use of the streets. Or, in the case of
tramways, build the tracks; or, as in the case of
the cities of New York and Boston, construct the
subways and lease them to private companies;
thus avoiding the responsibility of operation, and
practically remove the transaction from the domain
of speculative industry. But the object is not proﬁt,
we are told by those who rank high in the counsels
of English municipalists, and many go so far as to
advocate no proﬁts for municipal undertakings.
While theoretically occupying the high ground of
“no profits,” I have yet to examine the budget of
a city or town engaged in proﬁt-making industries
where a distinction is not made between the pro-
ductive and unproductive undertakings, and in
which the authorities do not congratulate the rate-
payers on the surplus (when there is any) from the
tramway, gas, or electric-lighting accounts. Indeed,
it is a regrettable fact that municipal book-keeping
not infrequently shows proﬁts which vanish when
B
10
the stern test of a shareholder’s dividend warrant is
applied to them. The municipalists, who have
acquired the tramways on the ground that the poor
man is entitled to a halfpenny fare, and that the
wage-earner’s pennies support these industries, are
apt, later on, to point with conscious pride to the
large proﬁts from this undertaking which has gone '
to reduce rates—thus the well-to-do and even rich
landowner is beneﬁted by the proﬁts obtained from
those who patronise the tramways. The other day,
I noticed that a large Yorkshire textile town in-
creased its city tax rate 6d. in the pound, 3%d.
of which, it is naively announced, “is given back to
the ratepayers in the shape of a reduction in the
price of gas.” Not a gift to the ratepayers, but
to the consumers of gas. There is not the sem-
blance of equality of taxation in such ﬁnancing.
The entire community in the case quoted is
apparently taxed 6d. in the pound that a portion
of the community, including the large manufac-
turers who use prodigious quantities of gas, may be
rewarded by a reduction in the price of that com-
modity. It is possible the reduction of price was
on gas supplied to street lighting and for city pur-
poses alone. If so, the action is not quite so inde-
fensible.
An interesting point has been introduced into
this discussion by Mr. Emile Garcke, based, I be-
lieve on the practice in Scotland, where the burghs
are not allowed to make prOﬁts out of such enter-
prises in aid of taxes ; and this restriction has lately
11
been imposed by Parliament in dealing with
Scottish towns. The charges, Mr. Garcke contends,
should comprise the following items of cost :—
(1). “The cost of all direct and indirect salaries
and wages paid for or made chargeable to the
operation and administration of the undertaking;
(2) the full and fair cost of all materials con-
sumed; (3) the cost of insurance against loss by
accidents of all kinds; (4) the cost of adequate
maintenance and upkeep, and provision for wear
and tear; (5) the value of municipal taxes relin-
quished by reason of municipal ownership, and
the amount of State taxes paid or chargeable in
respect of the undertaking; (6) interest on the
entire investment; (7) a sinking fund for reduction
of capital within period approved by ratepayers and
Local Government Board. Should there, however,
be a surplus, notwithstanding the enforcement of
this principle, such surplus should be applied either
(1) to reduction of the charge for such services,
or to an increase of sinking fund for reduction of
the capital account of the undertaking; but in no
case should such surplus be applied to a reduction
of rates.”
It is not difﬁcult to see that the end of this
plan is State socialismﬁ“ or absolutely free service.
* In a pamphlet entitled “The Independent Labour Party:
What it is and “There it Stands,” one may read :--“ The practi-
cability of Socialism is shown in no better way than by recent
advances in municipalisation. The great point which experi-
ments in municipalisation have proved beyond dispute is that
12
In fact, “Municipal trading,” deﬁned in one word,
is “ Socialism,” and on this point all consistent,
and really earnest Municipalists, seem to agree.
I remember reading, some years ago, an interesting
pamphlet written by Mr. Cooper, an erratic
Norwich man, who spent much of his life and
energy in advocating free State railways. - He
proposed to abolish six out of the seven lines
between Manchester and Liverpool and London,
and open the seventh free to all. At least Cooper
was logical. On this point—and it is well worth
consideration—Mr. Garcke says :—
“If the ratepayers are frankly told that the
enterprises they are to sanction are not for the
primary purpose of reducing the rates, it will
be found that the really dangerous aspects of
municipalisation will disappear ; while such under-
takings as are allowed by the ratepayers to be
municipalised, will be carried on at the risk of the
community for the beneﬁt of the community : not in
the narrow sense of producing commercial results,
but in order to render public services, which are of
such general importance to the community, that
public authorities can organise labour and provide for the needs
of the people, not worse, as was held until recently, but very
much better than private capitalists. Every town council in the
country is contemplating some greater or less application of the
Socialist idea to its own special circumstances. So, with the
ideas which underlie all working political action, Socialism is
effecting a revolutionary change. The old notions of individual
enterprise are going.”
13
their excellence and efﬁciency are paramount
considerations.”
In referring to proﬁts I touch upon a contro-
versial point, and one that has been much discussed.
Personally, I do not think it wise for a municipality
to take a penny proﬁt from such undertakings.
Cheapness and efﬁciency of service should come
ﬁrst, and hence, in making bargains with companies
for supplying public utilities, it concerns the com-
munity much more that the company—in case of a
tramway, for example— should be compelled to
extend its lines into districts favourable for work-
mens’ homes and unprovided with transportation,
or that the promoters should give additional trains
and cheaper fares, than the mere payment of a sum
into the city treasury. If this course is faithfully
pursued, those who use the utility, by reason of the
authorities, will get as much as they may reasonably
expect for their money; but the community will
neither be taxed to make up for a too low rate nor
be responsible for a larger capital commitment.
I venture to suggest that there is a danger when
municipalities take up industrial enterprise that
they do not always consider simply what is best for
the public, but what will make a good showing in
the annual budget. They are apt to be bitten by
the desire to deal in larger matters, whereas, if they
looked at the matter fairly and squarely, they would
see that their only hope of safety lay in keeping
out of business with trust moneys, and looking
sharply after those undertaking to manage semi-
C.
14
public businesses in their midst. This seems to me
the real function of municipal administrators.
This is not the occasion for a comparison of
corporation and company operations, either as to
services rendered, cost to those using the particular
utility, or proﬁts secured. That phase of the
problem has been pretty well thrashed out by the
Select Parliamentary Committee, and by daily and
special trade newspapers. Nor will the reference
I have made to the hesitancy on the part of
America in municipalising its public utilities, war-
rant the rejoinder that our municipal governments
are untrustworthy and corrupt. That is another
theme, and one that has been worn threadbare
by discussion. Those who fail to see clearly where
the English municipalist is coming out will not be
satisﬁed with the rose-tinted exploits of a few well-
managed undertakings, taken over as “ going
concerns,” modernised and built up without fear of
competition or governmental interference. It is
childish to compare these enterprises, as is frequently
done, with the last days of company operation, when
private endeavour had been given its passports and
notice to quit. The questions which, it seems to
me, must be answered, are more far-reaching than
these, and the principles involved much broader
than the proﬁt-and-loss account of a municipal
ledger.
First of all—and I put it before all ﬁscal con-
siderations—what will be the effect of municipal
trading on the excellent work which your English
15
municipalities have taken up and conducted with
such a large measure of success during the last
twenty-ﬁve years ’? More than twenty years ago, I
was commissioned by one of our Government Depart-
ments to visit England, and study your methods
of administrating municipal affairs. The budgets
of many of your cities were at that time carefully
gone over, and I had no words except of praise for
the conduct of affairs. Everything was being done
to brighten and improve the life of the people:
better sanitary arrangements, more parks and open
spaces, additional supply of pure water, increased
school accommodation, establishment of free libraries,
encouragement of music in the parks, and other
movements for the uplifting of the people and the
maintenance of a high degree of municipal spirit.
It was a programme that everyone could heartily
endorse, so long as it was continued upon lines of
equality, and all were fairly taxed for the beneﬁt of
the entire community. No one thought of making
money out of these enterprises; no communities
had then built around the sacred person of a Town
Clerk a competitive force which was soon not only
to antagonise existing railway companies—oftentimes
the largest ratepayers of a district—but was to
compel its own citizens to assume responsibility for
loans to promote industrial undertakings which
would compete with, and perhaps ultimately destroy,
their own business. In short, the ennobling civic
work in which all could join has, since the period
I am speaking of, been changed, and municipalities
16
have in many instances descended to a form of
competition which is not only unjust to the rate-
payer, but' which, when it assumes the shape of
organised Town Clerks attempting to influence
Parliamentary legislation, would be considered an
illegal proceeding in the United States.
The bitterness expended by these Parliamentary
contests to prevent individual enterprise, and con-
tinue municipal monopolies in tramways, in gas-
works and electric lighting, and the disposition on
the part of municipalities to secure these rights and
hold them, dog—in-the-manger-like, against private
companies anxious to invest and serve the public,
have, in my opinion, done much to side-track public- _
spirited municipal work in England. It may lower
the tone of your administration of local affairs.
from the high standard it should occupy by intro-
ducing too much of the commercial spirit. The
government of cities and towns, to be completely
successful, must be in the hands of its most public-
spirited and successful men of affairs. Of late years
many of this class are losing conﬁdence, and some
may be found actively engaged promoting public
sentiment, in opposition to what they have a right
to regard as the dangerous tendencies of munici-
palities, in promoting complicated business ventures.
with the public funds. Is it possible, I ask in all
sincerity, that with the murmurings and mutterings.
of this sort of opposition audible in so many quarters,
the good work for which you have been. so justly
famous can be held up to the standard? Your local
17
politicians are becoming large employers of labour——
at minimum hours and maximum wages—to popu-
larise themselves with the non-taxpaying voter.
They openly boast in their reports of the increase
they have ordered in wages, the reduction of hours
of labour, and the decrease in fares and in the price
of commodities. This reckless scattering of public
funds is in strange contrast with the experience and
economies deemed necessary for the successful pro-
motion and development of private enterprise.
When called to account, they seek to soothe the
/troubled ratepayer by dividing the rapidly-increasing
municipal debt into “productive” and “unproductive.”
The increased tax rate, they promise, is soon to be
reduced by the “ proﬁts of the new enterprises.” It
is a game that cannot be played to the end to the
satisfaction of both sides. The proﬁts too often
are chimerical, and disappear in higher cost of
installation and of operation, which more than
offsets the somewhat cheaper cost of capital when
the public credit is pledged for its repayment.
Then there are the heavy expenses resulting from
changes in methods, involving the sacriﬁce of entire
plants, that modern industry must continually face,
and which sometimes results in heavy sacriﬁce of
capital. There remains but one place for the
losses—~and all business ventures are liable to
losses—namely, the rates.
As to how much local debt and taxation you
can stand up under here in England, I am not pre-
pared to determine. You are better qualiﬁed to
18
gauge your capacity in this direction, than one
whose experiences have been drawn from a country
where municipal debt must be distinctly limited as
to amounts, and the time of repayment is well within
the generation contracting “the obligations. The
present local indebtedness of the United Kingdom
is well over £300,000,000 : an amount equivalent to
double the same class of indebtedness in the United
States. BetWeen 1879 and 1898 this indebtedness
has grown £150,000,000. The piling up of local
indebtedness, we should remember, tends to escape
the purview and control of Parliament, in a way
in which the National Debt does not, and the
danger is thereby increased. This may not cause any
alarm; and I even notice an endeavour on the part
of representatives of some municipalities to induce
Parliament to extend the period of repayment of
certain classes of loans to one hundred years. Here
is unloading obligations on posterity with a
vengeance! There is another aspect of municipal
trading which is more than suspected, and which
likewise involves the piling up of obligations for
future generations. Gradually, but certainly,
additional classes of work-people and their superin-
tendents are coming in for pensions or superan»
nuation—such as school teachers, policemen, poor-
law ofﬁcers, gas workers, tramway men, and
so forth. I am assured that no sufﬁcient provision
is being made to provide the capitalised value of
these accruing pensions, and that some day your
ratepayers will wake up and ﬁnd obligations
19
representing twenty-ﬁve, perhaps ﬁfty, millions
sterling, the services for which were given to a
previous generation. Obviously, the continued
growth of municipal employees increases this
danger.
Actually, there was a small increase in
local indebtedness in the United States between
1880 and 1890, relatively to ability to pay, we might
say there was no increase, because in the same
period the value of taxable property doubled. In
the United Kingdom, the total increase in the
rateable value of the country in twenty-ﬁve years
has been less than 30 per cent., while its local
indebtedness has trebled. The American returns for
the last ten years have not yet been published; but
I think it may safely be assumed that the reverse
of this proposition is true, namely, that our local
indebtedness has increased in thirty years 30 per
cent., and the value of taxable property has
trebled.
These ﬁgures are not introduced for the
purpose of indicating that we are wise and you are
unwise, but for the purpose of showing the effect of
placing a limitation on this class of debt. Nor is
it unlikely that the municipalist may be able to
prove, to the satisfaction of some, that, always
keeping separate the “productive” and “unpro-
ductive,” a steady increase of local debt has been
upon the whole a good thing. Sir Henry Hartley
Fowler’s admirable statistical classiﬁcation of in-
debtedness shows that the so-called “productive”
20
debt is only about half of one per cent. beyond
the danger line. If, in consequence of the anxiety
in ﬁnancial circles at the steady increase of
local debt, the rate of interest should rise half
per cent. on all local securities, what would
become of the “productive” debt? Assuming that
the trading debt represents one-third of the
total local debt, a rise of a quarter per cent. would
7)
extinguish the “productive properties of these
loans, and, in a sense, throw them on the rates.
Those who have watched railway dividends in
England and America for a series of years will
realise the uncertainty of such investments, and
with such a narrow margin the uncertainty would
seem to be accentuated. For example, are these
heavily indebted municipalities prepared to face the
steady increase in the working expenses, which, in
the case of railways in England, in thirty years has
mounted from 48 to 63 per centf of the gross
receipts; an increase largely due to additional
demands on the part of labour—which can practi-
cally dictate to politically-elected boards -—the
greater requirements of the public for less money,
and to the increase of taxation, especially local
taxation? I believe the facts here warrant a
dispassionate examination on the part of the
public.
The safer method for the ratepayers is, un-
doubtedly, that adopted recently by both Boston
and New York, and, to some extent in London,
in the leasing of the North London tramways—-
21
in which cases the municipalities insure themselves
a nett revenue for certain undertakings, by leasing
to responsible private companies the subways for a
series of years at a rate of interest from 1 to 1%-
per cent. higher than the city pays for the actual
money expended on the undertaking; reserving as
additional security abond, and the entire equipment,
to insure the public treasury against possible losses.
Such arrangements do not prevent adequate safe-
guards as to fares, speed, frequency of train service,
provision for safety and comfort of travel, and I
recommend them to the consideration of English
municipalities. The form of agreement is simple,
and merely involves a contract in writing, to the
effect that the Company agrees to pay for the
exclusive use of the tunnel and subway, for the
period of twenty-ﬁve years, an annual rental equal
to 4% per cent. of the nett cost of the tunnel or
subway. Then follows a deﬁnition of the “nett
cost,” which is deemed to include all expenditure
incurred in acquisition and construction, including
damages, expenses, and salaries of the commis-
sioners, and interest at 3% per cent. per annum
on the debt incurred in construction, prior to
the beginning of the use. As Boston can borrow
money at from 3% to 8% per cent., one may cypher
out to a certainty the revenue, and the risks
are m].
It would be presumptuous for me to suggest
any remedy for municipal trading, but as an alter-
native plan, the leasing system, when the contracts
22
are wisely drawn, secures the revenue for the city
treasury, and good, cheap service for the public.
On the other hand, it shifts the ﬁnancial risk
from the ratepayers’ shoulders. This, with some
form of debt limitation, will gradually modify
existing conditions, especially if backed by a strong
public opinion in opposition to further use of
the public funds in this manner. The “ no proﬁt ”
idea would take municipal trading out of the arena
of debatable questions in the United States, because
desire for the enormous proﬁts we have been
told, British municipalities are reaping out of
business enterprises, is the only argument in favour
of municipal trading that arrests attention with us.
It might have the same effect in England, but
as your cities have actually embarked in business,
it would require some time to change the system and
achieve results. In spite of the activity of munici-
palities in England, private enterprise has not
been entirely beaten in .the race; while I observe
in certain quarters it holds its own admirably in
competition with tax-exploited industry. Even
the capital invested in private company electrical
undertakings is increasing, and this in spite of
almost insurmountable obstacles. It is a case for
gradual readjustment, not violent change. With the
facts fully understood, the people will by degrees
curtail these unwise and dangerous economic
experiments, and bring your cities back to the
sphere of work which is strictly their own.
The broadest objections to municipal trading,
23
as carried on in England, would seem to be six in
number. The injurious effect upon the work which
is strictly within the municipal sphere of operation.
The fact that in giving the required attention to
trading operations, the “unproductive” work is
almost certain to be neglected. The tendency to
discourage improvement or development. The en-
gendering of ill-feeling, which is sure to arise when
the taxpayer ﬁnds himself obliged to help defray
the cost of competing with himself, and which ends
in quenching civic pride. The difﬁculty in adjusting
the burden of a trading undertaking on the right
shoulders, and such an equitable regulation of the
charge as will not put a burden on those who
derive no beneﬁt. The impossibility of drawing a
line as to which industries shall be taken up by
municipalities, and which shall be left to individual
enterprise.
Whom among us is prepared to formulate hard-
and-fast rules as to the limits of municipal action?
The question was once asked, I think by Lord
Avebury, whether it is intended to buy up every
business which pays 3 per cent., and if not, why
not? Bread is more of a necessity, and more uni-
versally used, than either gas or tramways, and
bakers make more than 8 per cent. The real muni-
cipalists will answer this question logically, and say,
by all means municipalise the bakeries. The Town
Clerk municipalist will hesitate, and go 01? on a
long discussion of what he calls “natural mono-
polies,” and will probably contend that bread does
24
not come under this category. If the cities took up
its manufacture, all competition, however, would
soon be abolished in the interests of monopolistic
municipal bakeries. Thus the conditions would
remain identical, whether naturally or artiﬁcially
sustained. These gentlemen would probably
contend that telephoning is a natural monopoly, yet
I have seen remarkable results of free competition
in parts of the United States : results quite equal to
the municipal and governmental achievements of
European countries.
In summing up some of the objections to
Municipal Trading, the London T imes says :—
“The time has come for the mass of the people
to make up their minds about a movement which
must have consequences reaching far beyond the
expectations of those who now encourage or ac-
quiesce in it. Nor is it an answer to say, ‘ We will
stop when mischief is being done.’ Once create
large municipal staffs; once bring together large
bodies of men accustomed to light work, regular
employment, and good wages; put down plant,
erect buildings, and purchase land; create vested
interests with subtle ramiﬁcations; and it will not
be possible without using heroic means to rectify a
series of mistakes. Then, too, there is the question
of the capacity of our public bodies to deal effectively
and wisely with all the functions thrust upon
them. And, gravest uncertainty of all, there is
the question whether the purity, such as it is, of
municipal government will be maintained if it
25
exercises a multitude of duties, touches ﬁnance at
many points, and makes politics and business almost
synonymous.”
The relations of municipalists to labour must
always be a source of concern, because, especially in
the case of the Metropolis, it is undesirable on several
grounds that the governing body of larger cities
should be a gigantic employer of labour. It might
.in such event become a grave question whether the
council would control the staff, or the staff would
control the council; whether, in fact, the dog would
wag the tail or the tail wag the dog. The concessions
of to-day may become the basis for still greater and
more exorbitant demands on the part of labour to-
morrow; and between the increased cost due to
these and similar causes, and the lessened receipts
resulting from the demands for lower fares and
reduced price of commodities, there will always be a
tendency to place the municipalities at a disadvan-
tage. There are, of course, many other obstacles,
, such as the conflict arising through different areas
in distribution of light, power, and heat, as well as
locomotion. In some cases, notably Glasgow and
Manchester, these difﬁculties have been partially
overcome, but in London I ﬁnd this conflict of area
and of jurisdiction in relation to streets and high-
ways has been a serious obstacle in building up a
harmonious system of locomotion. Private com-
panies in the United States ﬁnd no difﬁculty in
linking up towns, villages, and townships, and all
other minor civil divisions, into one system, over
26
which through booking and a uniform fare usually
extends.
I have purposely avoided any allusion to the
numerous state failures in conducting such enter-
prises as railways, telegraphs, and other industries,
that as a rule flourish better under the skilful
guidance of men reared to the business, and whose
expert knowledge is often taxed to the utmost to
meet the growing and changing public demands.
France, Italy, and nearly all European countries,
except possibly Germany, have failed to make the
most of their railway systems. In Germany the
work is well done, but railways are not the potent
force they are in Great Britain or the United States.
Those favouring State ownership ﬁnd no encourage-
ment in Australia or New Zealand ; while the losses
on your telegraph system, since it has been managed
by the British Government, does not encourage us
to go and do likewise. These matters are, strictly
speaking, outside the subject allotted me, but they
have a bearing on the general question of how
far it is wise for States to depart from the safe
theory that “ the State is governed best that is
governed least,” and undertake enterprises which
have usually been left to individual endeavour. To
dampen individual effort may prove a dangerous
experiment, and its effects may be more far-reaching
than it seems at present. In conclusion, permit me
to say that I am a ﬁrm believer in the municipal
spirit of the age, and an ardent supporter of all
its higher aims. These few words of warning are
27
therefore oﬁ'ered, because I believe municipal trading
propensities, if not limited, will neutralise and
destroy much of the good already accomplished
by conscientious municipal workers, in their proper
sphere, both in England and in the United States.
6*

MAY 25 1916
HD
4423
. 27
Bibliography of Public Utility Valuations
By Robert H. Whitten, Librarian-Statistician, New York
Public §ervice Commission, First District
Reprint from
Special Libraries of February, 1910
State Libraries Indianapolis, Ind.
SPECIAL LIBRARIES
BIBLIOGRAPHY OF PUBLIC UTILITY
VALUATIONS
\VHITTEN. NEW YORK PUBLIC SERVICE
COh/IMIISSON, FIRST DISTRICT.
ROBERT Hi.
This list does not include discussions of
the desirability and usefulness of a general
valuation of public utilities. It is limited to
accounts of valuations actually made and to
discussions of methods that should be em-
ployed in making valuations with particular
reference to rate making.
General
The determination of physical values.
Clinton S. Burns. Engineering Record, Sept.
16, 1905. 12 pages. Gives mathematical
formulas to express present physical value.
Valuation of public utility properties.
Electrical World, Feb. 25, 1909, 1/2 page;
March 18, 1909, 1/2 page; March 25, 1909, 1A;
page; April 15, 1909, 1/53 page; April 29, 1909,
1% pages. Discussion between W. H. Wins-
low and F. E. Haskell in relation to reason-
ing of United States Supreme Court in Knox-
ville water case with reference to deprecia-
lion.
George W. Hill et al. vs. Antigo Water
Company. Wisconsin Railroad Commission.
Aug. 3, 1909. 155 pages. General discussion
of methods and principles of valuation.
Wisconsin. Work of the joint engineering
staff of the Wisconsin Tax and Railroad
Commission. Engineering Record, Jan. 2, 9,
, 16, 1909. 10 pages. Brief account of meth-
ods of valuation used in Wisconsin.
Methods of Wisconsin commission for the
valuation of public ultilities. Electric Rail-
way Journal, Sept. 11, 1909, 314. pages. Elec-
trical World, Sept. 9, 1909, 2 pages.
Going value as an element in the appraisal
of public utility properties. William H.
Bryan. Journal Association of Engineering
Societies, Oct, 1909. 12 pages.
Electricity
The valuation of lighting systems as re-
lated to rates. Electrical World, Aug. 15,
1908. 2 pages. Extract from address of
Henry L. Doherty before the WisconsinGas
Association.
Valuation of lighting systems. Electrical
World, Sept. 19, 1908. page. Discussion
of Mr. Doherty’s paper above referred to.
Wisconsin. Determining and ﬁxing just
compensation to be paid to the Cashton
Light and Power Company by the village of
Cashton for the taking of the property of
said company. Railroad Commission of:
Wisconsin. No. U26. Nov. 28, 1908. 31
pages. Contains an extended discussion of
going value.
Valuation of electric light plant of Men-
ominee and Marinette Light and Traction
Company. Wisconsin Railroad Commission.
Aug. 3, 1909. 128 pages.
Gas
Cedar Rapids. Fair rates for public ser—
vice. Engineering Record, May 29, 1909. 2
pages. Decision of Iowa Supreme Court in
relation to valuation of gas plant for pur-
poses of ﬁxing rate; going value; cost of
pavement.
New York City. Wilcox vs. Consolidated
Gas Company. Pleadings, testimony and ex-
hibits. United States Supreme Court, Octo-
ber term, 1908. 6 volumes. Pleadings; 2-4,
Testimony; Exhibits; Briefs.
Full text of opinion of United States Su-
preme Court in Wilcox vs. Consolidated Gas
Company. American Gas Light Journal,
Jan. 18, 1909.
Railroads
Valuation of railroad property. Henry
Fink. Railroad Age Gazette, July 24, 1908.
Discusses the methods and object of valua~
tion.
Railway capital and values. W. H. Wil-
liams. Railroad Age Gazette, April 2, 1909,
2 pages; April 9, 1909, 3% pages; April 16,
1909, 11,4 pages; April 23, 1909, 214 pages.
Refers to methods of valuation used in cer-
tain cases.
Valuation of railway properties. Robert
Yates. Railroad Age Gazette, Nov. 19, 1909.
3%. pages. ‘
Valuation of terminal lands. John Earl
Baker. Journal of Accountancy, Aug., 1909.
3 pages.
Report of the committee on railroad taxes
and plans for ascertaining the fair valuation
of railroad property. National Association
of Railway Commissioners. 1909. 13 pages.
Michigan. Valuation of railroads in Mich-
igan. Michigan Tax Commissioners’ Report.
1900, pp. 66-70; 1902, pp. 50-70.
Railway capital and values. Railway and
Engineering Review, Dec. 26, 1908., pp. 1047—
1050. Michigan railroad valuation de-
scribed.
Expert valuation of railway and other cor-
porate property in Michigan. Engineering
News, Dec. 20, 1900. 21/; pages.
Minnesota. Supplement to the annual re-
port of the Railroad and Warehouse Com-
miss ‘n of the State of Minnesota for the
year ending Nov. 30, 1908, embodying the
reportof the appraisal of the railway prop-
erties of the State of Minnesota. 1909. 158
pages.
Valuation of railroad property in Min-
nesota. A. S. Cutler. Engineers’ Society,
Year Book, University of Minnesota. 1908.
pp. 69-77.
Valuation of railways, with special refer-
ence to the physical valuation in Minnesota.
Samuel 0. Dunn. Journal of Political Econ-
omy. April, 1909. 16 pages.
Minnesota railway valuation. G. O. Virtue.
Quarterly Journal of Economics. May, 1909.
6 pages. .
Texas. Method used by the Railroad
Commission of Texas, under the stock and
bond law in valuing railroad properties. R.
SPECIAL LIBRARIES 3
A. Thompson. Proceedings American Insti-
tute of Civil Engineers, Jan., 1904. 37 pages.
United States Government. City of Spo-
kane, Wash, et al. vs. Northern Paciﬁc Rail-
road Company et a1. United States Inter-
state Commerce Commission reports. No.
879. Feb. 9, 1909. v. 15, pp. 376-426. Dis-
cusses reproduction cost of Northern Paciﬁc
and Great Northern. Considers increase in
land values and surplus as affecting fair
value for rate purposes.
Washington. Findings as to value of rail-
roads and other facts. Washington Railroad
Commission report. 1907-8. pp. 41-51, 124-449.
Original cost and cost of reproduction of
the Northern Paciﬁc Railway in the State
of Washington. Engineering-Contracting,
Jan. 12, 1910. 3 pages.
Wisconsin. Method used by the Railroad
Commission of Texas under the stock and
bond law in valuing railroad properties. R.
A. Thompson. Proceedings American Instie
tute of Civil Engineers. Jan, 1904. 37 pages.
See p. 353 for discussion by William D. Tay-
lor on WVisconsin railroad valuation.
The appraisement of the physical value of
Wisconsin railways for the purpose of taxa-
tion. W. D. Taylor. Engineering News,
March 31, 1904. 1% pages.
Report by Prof. William D. Taylor, Engi-
neer to the State Board of Assessment upon
the appraisal of the physical properties of
Wisconsin railways for year ending June 30,
1903. See report “'isconsin Tax Commis-
sion, 1907. pp. 269-423. See also pp. 92-96.
Appraisal of physical properties of Wic-
consin railroads for year ending June 30,
1908. William D. Pence. Wisconsin Tax
Commission. Report,1909. pp. 121-31.
Street Railways
Appraisals of electric railway properties.
Electric Railway Journal, Oct. 31, 1908. 3,4
page. Abstract from an address by Prof. D
C. Jackson before the New England Street
Railway Club.
Appraisals of railroad properties. Dugald
C. Jackson. Street Railway Bulletin, Nov.,
1908. 5 pages.
Chicago. Unit price, valuation and cost es-
timates. Bion J. Arnold. Report on the engi-
neering and operating features of the Chicago
transportation problem. Nov., 1902. pp. 182
237.
Arnold, Bion J. and others. Report on L116
values of the tangible and intangible proper-
ties of the Chicago Railway Company and
the Chicago Union Traction Company. Dec.
10, 1906. 3 v.
Arnold, Bion J. and Weston, George. Re-
port on the physical properties and intangi-
ble values of the Calumet Electric Street
Railway Company and the South Chicago
City Railway Company. March 18, 1908. 3 v.
Detroit. Report of the Street Railway Com-
mission to the Detroit Common Council on
the valuation of the street railways of De
troity/May 22, 1899. Journal of the Common
Council, city of Detroit, 1899. pp. 346-55.
Reports on valuation of Detroit property.
Electric Railway Journal, Nov. 20, 1909. Dec.
25, 1909. 1% pages.
New York City. Third Avenue Railroad vs.
New York State Tax Commissioners. Ex-
tracts of testimony, exhibits, etc., from v. 1,
2, 3, 1908. 2065 pages. Typewritten copy.
Valuation for purpose of franchise tax as-
sessment.
Appraisal of physical property of the Coney
Island and Brooklyn Railroad. Electric Rail-
way Journal, Sept. 11, 1909, 2 pages; Sept.
18, 1909, '34 page; Sept. 25, 1909, 2 pages;
Oct. 16, 1909, 2 pages; Nov. 27, 1909, 1%
pages; Dec. 4, 1909, 1 page; Dec. 11, 1909, 1%
pages; Dec. 25, 1909, 7% pages; Jan. 15, 1910,
115 pages.
Valuation of Brooklyn Rapid Transit sys-
tem. Electric Railway Journal, Jan. 22, 1910,
13 page; Feb. 5, 1910, "A page.
Cleveland. Physical value schedules of the
Cleveland Electric Railv. av Company, 1908.
Street railway settlement in Cleveland.
E. XV. Bemis. Quarterly Journal of Econo-
mics. Aug, 1908. 33 pages. .
Valuation of the Cleveland Electric Rail-
way. Electric Railw 5' Review, Feb. 1, 1908
3 pages.
Testimony in Cleveland valuation. Electric
Railway Journal, Nov. 13. 1909, 411» pages.
Nov. 20, 1909, 314; pages: Dec. 4, 1909. 11,
page; Dec. 25. 1909, 11’; pages.
Wisconsin. Report of appraisal of the phvs
cal piopeities of Wisconsin Street Railways
by lVilliam D. Pence, submitted to the lVis-
consin Ta" Commission for year ending June
30, 1908. See report Wisconsin Tax Commis-
sion. 1909. pp. 135-179
Telephone
Massachusetts. Report to the Massachu-
setts Highway Commission on the results
of the inventory and appraisal of the prop-
erty of the New England Telephone and Tel-
egraph Company. Dug-aid C Jackson. March,
1909. 18 pages.
Valuation and taxation of telephone com-
panies in Michigan. \V. J. Rice. Electrical
World. Feb. 2. 1901. 3 pages.
Wisconsin. E. E. Payne et cl. vs. lViscon-
sin Telephone Companv. Wisconsin Railroad
Commission. Aug. 3, 1909. 70 pages
Water Supply
Appraisal and dcp“eeiation of water works
and similar properties. Paper and discus-
sion. William H. Bryan. Journal Association
of Engineering Societies. Dec, 1907. 45
pages. An extended discussion of methods
of appraisal.
\Vater works valuation and fair rates in
the light of the Maine Supreme Cooit deci-
sions in the \Vaterville and Brunswick cases
Leonard Melcalf. American Society of Ci\il
Engineers. Proceedings Oct. 1908. 73 pages.
4 SPECIAL LIBRARIES
Financial questions in water works valua—
tions. John W. Alvord. _n.d. 11 pages?
Water works appraisal. Burns & McDon-
nell. Engineering Record, May 8, 1909. 1
page.
Notes on going value and method for its
computation. John W. Alvord. American
Water Works Association. June, 1909. 96
pages.
Alabama. A water works appraisal at Mo-
bile, Ala. Engineering News, April 23, 1903.
2% pages.
Colorado. Report of the Board of Apprais-
ers and Arbitrators constituted by the terms
of a certain agreement between the city of
Denver and the Denver Union Water Com-
pany, 1907. 4 pages.
Iowa. Strange case of water works ap-
praisal. Engineering Record, April 17, 1909.
Valuation for city purchase of the prop-
erty of the Waterloo (Iowa) Water Works
Company. A. Marston. Engineering News,
April 22, 1909. 1% pages.
Massachusetts. The appraisal of the Glou-
cester water works. Engineering Record,
Aug. 19, 1899. 2 pages.
\ New York City. Acquisition by New lOI'k
City of the larger two water systems of
Staten Island. Louis L. Tribus. American
Water Works Association, 1909. 33 pages.
Tennessee. Abstract of Supreme Court de-
cisions in the Knoxville water case. Elec-
trical World, Feb. 11, 1909. 1% pages. For
a copy in full of this decision see 212 U. S. 1.
Texas. Report on water Works rates and
valuation at San Antonio, Tex. Engineering
News, Sept. 25, 1902. % page.
Wisconsin. George W. Hill et al. vs. An-
tigo Water Company. Wisconsin Railroad
Commission, Aug. 3, 1909. 1455 pages. Gen-
eral discussion of methods and principles
of valuation.
This list will be supplemented each month
by references under valuation in Public
Utility Current References in Special Libra-
ries. By clipping and adding tnese refer-
ences the list will be always up to date.
w
%%23
UNIV. OF MICHIG
.27 ‘N'
NOV 1 1 .1912
v - @ie
Etiibt. Giewerbebetriebe
. ,4fdzi-"Q/L <7" "/{:’4-""‘:2"'”£;"Ago
/
G

Bnaugural = @iﬁertation


5w:
@rlangung ber Qoftormiirbe
Dev Iyolyen pbiloiopljiidpen ﬁafnltéit Der
'ﬁricbrid)=wleganbcrédtnivcriitdt (Srlangcn
nnrgclegt non
Qllfreb Qjawpad)
anéi (Sﬁlna=£iubc-ntlpal.
Cling ber mfmblicbcn sBril’fung: 24. :Qg'anuar 1912.
__.___E].___.
Qﬁln 1912
Q311cbbrucferei §153i1r13 8c iluﬁe @111. 5.83., @5111
iltubensftrafge 15,


I
. A _ '
Wis/i-
M'?%{.»er-@/(;A
@inteilung.
@inleitu n g: f’Begriff ber gewerblicben (ﬁigenbetriebc unb Licherﬁcbt.
I. ‘HBlcbnitt: @ntmicfelung ber micbtigften filibtiicben (Sometime
Betriehe untet §Beriicflicbtigung ber beutidjen @5rofgftiibte.
Rapitel 1: QBaﬁermcrfe.
,, 2: ©a§werfe
(Eleftrigitiitémerfe.
@traﬁenﬁabnen.
@cblacbi; unb iBiebb'dfe.
@parfaﬁen.
: @nnftige gemerblicbe Qietricbe.
@tatiftif bcé; Ctatiftifdwn Sabrbuché @eutfcber @tiibtc
unb beg ©nmmunalen Salnbudﬁ. '
OOQCDCJIl'PQD
II. Sllbfdmitts .Qritif ber ftiibtiicben @ielucrbebetriebe.
ﬁapitel 1: nnm finangpolitifcben @tanbpunft;
a) (Einfluﬁ auf bag ftiibtil'cbe *lInlcihcmefcn,
b) ,, ,, bie EBubgets,
C) ber iltcferucfoubé uf1n.;
,, 2: 110111 nolfémirtlcbuftlidyn @tanbpuntt.
cieil I: nom @erecbtigfeitsltanbpunft;
a) *Betriebe mit wonnpoliharatter,
1. Célomnnmalbettieb ﬁt an Tnrbern,
2. lleherfclmfgpringip nber ‘Briugip ber @oftenbecfnng ‘4
b)?13etrieﬁe nbne illlonnpnli‘baraftcr,
c) QIIIQQmQin.
Sell II: nnm mirtlclwftspolitifclpn 8mecfriiiifgigfeits=
ftanbpunft;
jfwﬁjéﬂﬁ
II
a) bie QSirtlcbaftIichfeit ber ftiibtilchcn @iemerbebctriehe
im Qlergleicb 311 hen €Brinatbetriebem
l.
2.
3.
@tutiftilcbc Unterlucbung, .
bie .‘Bebenfen gegen bie Sllltrtlcl)altiiclﬁ‘teit bet
ﬁlibtilcben .‘Betriebe,
aa) @clpnerfiiiltgfeit ber Drgcmilation,
bb) mangelbafte ﬂusmalﬂ ber 58earnten,
cc) ,,§Beamtenmirtlcf)aft“.
©egengr1'inbe,
4. gulammeniaﬁnng unb ‘llnmenbung auf bio cm:
5elnen EBetriebsarten.
b) sllllgemeine noifémirticbaitlicbe ®clicl)t§p1mftc;
1.
iieiriebigung beg Eebilrfniﬁes ber ﬁunlumcntcn,
aa) $reife,
bb) iBeriicETichtigung lmgicnilclm, fulturcllcr unb
ingialer @elicbtépunfte,
cc) @uteé %unftinnieren eiu Qebcnsintercﬁe ber
@tiibte unb inter gangen %3euiilferung,
dd) @tcbcrheit uub ﬁiquibitiit ber @parfaﬁcn.
. ©inl)citlicbfeit beg §Betrieb§ Bet iﬁaﬁw, @ias=,
©[eftrigitii‘tsmetfem ©traﬁenbalmcn unb @dﬂacb’e
unb iiiebhbien,
. Qinberung non Qnnjunfturlcl)manﬁmgen u. @rilen,
. Yybrberung ber handlebar ﬁlibultric unb be?»
illlittelltanbeél,
. @tetigfeit ber @ntmicflung unb beren SBebcutung
Tilt ban @apitalmarft,
. ﬁrbeiterfrage.
Qiteraturangabe.
(Sonmb: ,,i]3o[tt. Qefonomte II, ﬁinlfsinittid)aftépnltttf“.
v. (ﬂwbevg: ,ﬁtnan3miﬁenlc1)aft“, 10. Sllu’ftage.
28mm ': ,,Eel)rbuct) ber polit. Qetonnrnie IV, ginaitgmiﬁenfdmft I“
mama): "Swat unb @tabt als ﬂletrtebsuntemebmer“.
FBertin 1906.
Sbamaidyfez ,,2111fgaben ber @emetnbepolitif“.
£inbenmnn: ,,‘3)te beuticbe @tiibteuermaltung, Qlolfélmgtene,
@ta'btebau unb QBobnungsrnelen“, (Stuttgart 1906. ,,2)lrbetter=
pnlitif nnb ﬁBirtfcbaftépfIege“, .586. I: ﬁrbetterpnlttif, $1.11:
‘lilirticbaftépftege; Stuttgart 1904..
,,$ic Dcutidml @tiibte I" berauégegeben non ‘Brnf. QBnttte.
ﬂrtitel non Sliﬁeb’felb: ,,®ttibtild)e $8etriebe“
,, ,, .pbﬁnerz "She @aémerfe“
,, ,, @rabn: ,,C<5tiibtiicl)e glllaflerwerfe.“
@dniitw Deé ﬁcrciné iitr goaialpolitifz ,,®emetnbeﬁetriebe“
(586. 1281, 236.132.)
(5‘. @rabu: "She fta'btiicln Elgaﬁcrneriorgung tm bentlnhcn Elteicbc
formic in eintgen iltadﬁarlttnbern“, EUIiindJen 1898—1902.
a}. ©dﬁIIingé: ,,@tatiftifcl)e illtitteilungcn iiBer Die Qiasanitaltelt
@eutfcblanbé “.
2§crmbacbz ,,@leftri5itiit§1nerfe“ 1900.
imittclmmmz ,,C€lettrild)e Baht: nnb Qraftanlagen“ 1901.
(siroijmannz ,,€®ie cmnrnunale 23cbcntung b. @IIGBGIIBLII)IICII" 1903.
28c“: "Etc @ntftetmng unferer eleftrtlciwn @traBenBahnen“ 1903.
5?. aﬁlia: ,ﬁerftabtlicbung ber @traBcnbabnen“, Qltiesbabcn 1889.
Smielmmmz "(Etc 9.Iacl)ener Qlcinbabnen“ Sena 1909. _
@dnvam: ,,§Bau, @inrtcbtung nnb .‘Betrteb iiﬁentlicbcr @dﬂaclﬁ:
unb ihebbbfc“, Qierlin 1898 2. Slluflage.
illicit: "(Etc @cfmlbenmtrtldmft ber bentlcben @tiibtc“, ﬁena 1909.
gnaw; "ﬁber auﬁernrbentlicbe $~tnan5f>cbarf ber @tiibte“
Sena 1909.
Qloiez She Yyinaitgimlitit ber prenBilcbenQiroBftiibte“. §Berttn 1906.
IV
.sgmnbwﬁrterbnd) Der ©taatétv.z 566. IV, ‘llrt. ,,65ernetni>e=
ﬁnangen“, 230.V,81tt. ,,8eibt)iinier“, ,,9)tonnpnl”, ,,@partaﬁcn“,
25%). VI, Qlrt. ,,@d)lact)tt)tiuler“.
Staiierlid) Qtatiitiidyeé Qhnt: ,,‘l>ie Stegelnng be?» Qirbeitiincn
battniﬁeél ber Semetnbearbeiter int @eutfcben Steict)“, I 11.
II 1908 unb 1909.
@tatiftifdwﬁ $abrbudy @eutldpev @tiibtc: 266. Ibis? XVII,
beraltsgegeben non Dr. Steefe.
Comnmnalcé $alyrlmd) 1908, 1909, nub 1910: bera116=
gegeben non Dr. Binbelnann unb [)r. @iibefnm.
Ecrcintgung Iver @Ieftrmtiitéwcvfe: ,ﬁtattftif 1906/1907
Beam. 1907”.
gteitimrift fiir @05ia1wiﬁcn7dmit: Qlrt. non gaffe: "$12 mitt:
fmaftlicben llnternebmungcn ber @ttibte“; 1908, .Sﬁeft '7/8,
Seitidwiit Deé $0r¢in§ @eutidwr .ﬁngenieuve: Qieiﬁlatt:
,,‘.Eed)nit nnb QBirticbaft“, 9lrt. non C9. @cbiﬁ: ,,@taat unb
@tabt at?) Q3etrtebsunternebmer“; 1909, @eft 10, 11 u. 12.
@Icftvotedmiidw Seitidn'iitz 1902 unb 1909.
Scitidwiit iiir Sileinbabnen, berau'sgegeben nnrn %crein beut=
fcber @traBenBabm unb ﬁleinbabmﬂlermattungen, 1900,
1905 unb 09.
gogialc $ragié, 1908/09.
®tii11tc=3eitung, 1909.
%cd)niid)c§ @eaneinbeblatb Sabra. 1.
ﬁﬁlniidw 8eitnng, 1909 Sir. 1053, 1910 911:. 84 an. 124.
swmtidw ﬂiolféaeitnng, 1909 91v. 540.
inanffmttcr Scitmm, i909 2711: 79.
mlyciniidp=lBcitidliidye Sammy, 1909 91v. 706.
@tniettnn g.
Q5egriﬁ ber gemerblicben Gfigenbetnebe
nnb ﬁeberﬁcbt.
ﬁn bent commnnalen %inan3melen netnnen bente, nadbbem
bie @emeinben nn Saute ber Sabrbnnberte gegmnngen maren,
lief) nntner mettere @innabmequellen 5n erfcblteﬁen, bie fttibtiicben
@emerhebetrtehe eine berborragenbe @tellnng etn. QBtibrenb
nrlpriingltct) bie @erneinben ftir tbre geringen gliebiirfntﬂe an?”
retcbenbe @ecfnng Tanben in ben (Etntiiniten an?» etgneln ﬁler:
tnb'gen, inébelonbere bent (brunbnermbgen, retdnen biele narnenta
lid) in ben @ta'bten balb nicbt mEbI ané. @cbon int wlittelalter
finben tntr in ibnen neben bielen alé @innabmequeﬂen bum Stbnige
neriiebene Stegalien, lo 5. 56. bag imiingregal, an beren @telle {pater
bie @tenern traten. iiéenn and) etngelne tleinete @emeinben bente
nett) befteben, bie in bet gtﬁdlimen Sage linb alle llntnften ans
bent @Einfonnnen ans"; (brnnbnernttigen (Cfyorften) 5n becten, ja 511’
metlen nod) einen liberlcbuﬁ an?» bielen @tnnabmen an tine sBurger
nertetlen, mie es 5. ‘15. in ber tIeinen @emetnbe @Impt an ber bola
lanbiicben @renge bet %all tit, 10 ltnb baé bod) ieltene QInQnaDmen.
ﬁn ber StegeI ltnb bie @tenern baé’» Sltiict‘grat ber communalen
ﬁinangen getnorben, nnb baé finb lie and) geblieben, nadjbeln feit
bem norigen Sabtbnnbert an bie @eite bes @tntornrnené; ans etgneln
Qiemntigen letn: erbebliche (éiinttinfte abnlimer QIIt getreten ﬁnb,
na'inltct) {niche ans"; Cemerbea nnb tbanbeisnnternebmnngen. @o
iIieBt benn bente Bet ben Cemetnben ,,ein ieil ber @inttinite ans
pribatmtrtfmaftltcben (Ettnerbéquellen, ein anberer tm'rb bntcl)
QInmenbnng beé; ben Celneinben 5w: Enrdﬁﬁbmng tine]: QInTgaBen
leitené beé @taateé gegebenen 3mang9red3te6 gewonnenen.” 1)
1) n. @beberg tin @anbm. b. @taatﬁm. NC. 119.
——2
8n ben Iegteren gebbren bte @tenetn nnb @ebtibren, 5n ben erfteren
bte Cbtnnabmen ans“; betn etgnen glﬁennbgen nnb bte ané ben @iea
merbe: ober Sganbelénnternebmnngen, burg, ané ben Cemet'bea
betrteben ber @ttibte, mtt benen ttcb bte nacbfolgenbe 91bbanb¢
Inng beicba'fttgt.
2801 man btele nmgreng-en, 10 mag bun etner (Sbarat’terta
tternng bet: fta'btttcben Qietberbebetrtebe anégegangen tnetben.
Qba'btenb man unter Qjetnetnbebetrteben ,,C83tnrtcbtnngen etner
@ernetnbe 511.12 gbtobnttton ben CZbtenttietttnngen obet bitttern fin:
ltcb felbft ober fttr tbre QIngebbrtgen nber btetentgen anberer (be;
ntetnben’“) berftebt, tit ber ﬁbegrtff ber commnnalen Cemerbea
betrtebe etn engerer. ($6 tcbetben bter 5nntiebft alle bte Qietrtebe
a116, meIcbe ntcbt ttber ben Stabmen ber (Etgenprobnttton btnanéa
geben, note ber $6an bon Ktantilen, ftabttimen (bebtinben, @traBen,
§Betcbaﬁnng ben 8tcbt ttir bte bﬁentltcbe %elencbtnng n. bergl.
21ber and) bte Qietnebe, melebe nnnttttelbar ben gltebttrtntﬁen be?»
‘léubittnrné; 5n btenen betttmtnt ttnb, tbnnen ntcbt alle unter bte
@etnerbebetrtebe gerecbnet merben. Qétebnebt ntnB bet bteten bag
@rmerbérnntnent btttgntteten. ($6 tntrb besbalb and) bet ben Ce:
tnetnbebetrteben nntertcbteben 5mttcben ,,21nftalten nnb llntera
nebtnnngen, te nacbbent etne @emtnnabitebt borltegt ober ntcbt.“ 2)
iita'brenb bet ben Iegteren, baé ttnb bte Cemerbebetrtebe, ber 051:;
merbégmeclf bnrben'lcbt ober mentgttenél rnttmtrt't, loIIen bte erfteren
tnebt obet‘ mentget anstctﬂteftltcb anberen, tnébetnnbere bbgtentﬂben,
tnlturellen ober tontttgen togtalen Sweden btenen. @213 gtbt nnn
etne Eltetbe bon ébetrteben, melcbe 5mettelloé; 3n btefen ,,21nftalten”
gebbren, tute bte Strantenbanter, @tbn‘ien, Qiott'ébtbitotbeten,Elltnteen
n. betgI. Sgter tit ieber (51etntnn bun bornberetn anégetmloﬁen, nnb
e6 tft ancb bet tbrer Girttnbnng an bte illtbgltcbt'ett bun @ietntnnen
garntcbt gebacbt morben, btel tnentger nod) boat etn tnlcber gemollt.
($9 banbelt ttcb btet tatlttcbltct) nnb nacb bent Slllttilen bet betretbenben
@ta'bte ntn retne Butcbnﬁbetrtebe. 8mm baben and) btele §Betrtebe
banttg gemtﬁe Céitnnabrnen, abet trogbem begmecl'fen lte "nut bte
ﬂlertbtttltcbnng ben a1?» rtcbttg ert'annten ﬁ‘lttfgaben ber @otntnnnen,
nnb bte @tnnabnten ans tbnen ttnb @GI1H1)TGTI.”3) Sbnen gegena
1) ﬁncbé tn @cbrtft. b. 21. f. (5. 23b. 132 6111.
2) %nd)2 a. a. D. Q 112 f,
3) @benlo tilt @taatsbetrtebez QBagner ,,%tnan5miﬁ¢nfcbaft“ L5 484
_3__
ttber fteben bte Qietrtebe, bet benen bteQIbitrbt etnen Cemtnn 3n
ergtelen nnb babnrcb bte $ytnan5en ber @tabt anfgnbeﬁern baé
etngtg Iettenbe illtottb tft, abet butt) mentgftené btete 9(bltcbt to bore
berricbt, bat; anbere EUtottbe neben tbr nnbeacbtet bletben fb'nnen.
@terbtn gebbten 5. 93. regelma'fgtg bte (bag; nnb (blettttgjttatétnerte.
@nime Ebetrtebe gebbren 3mettelio§ 5n ben ©etnerbebetrteben.
Sgauftg ttnb abet bet ben @emetnbebetrteben neben be1n tie;
talttcben 8mecte and) anbere, namentltd) togtale (ﬁrmagnngen bon
ma‘Bgebenber 5Bebentnng. ‘Qann ttnb tte 5n ben @etnetbebetrteben
nnr 5n recbnen, menn baé Cemtnnmnment borberricbt nber mentgttené
tn tomett mttnotrtt, bat; e6 ntcbt bnrct) baél llbet'tntegen anberer
élltomente 5urttcfgebn'tngt mtrb?) 253th man fettfteIIen, ob bternacb
etn §Betrteb 5n ben Cemerbebetrteben gebbrt, to mtrb man abet:
nttbt nnr barant 5n acbten baben, 0b bet ber (briinbnng telbft ettna
nacb ber anégetprocbenen ﬁnitcbt ber maﬁgebenben ‘Berttlnltcba
fetten (Siemtnne beabltcbttgt maren, tonbern and) nnb 5mm: tn eriter
8tnte baranf, ob bte gange @tnrtcbtnng nnb iéermaltnng beé 213e,
tttebeé tnébetanbere bte 23ret91e15nng ant bte (brgtelnng bon (bee
mtnn, alto ant ﬂbertcbtiﬁ'e gertcbtet tit. irogbem bectt ttcb bte llna
tertcbetbnng tn Cemerbebetrtebe nnb ,ﬁnltaiten” ntcbt mtt ber
tn ﬁberimuitbetrtebe unb 8nicbn‘l3betrtebe. HCEJIQIG berba'lt ttd) 5n
tenet mte bte 21b1tcbt 5am tatfttcbltcben 0317geb1'1t9.”2) @er ltntftanb,
baB bet etnem Qbert'e 8ntcbtiﬁe erforberltcb ,tnerben, ntmmt tbm
beebalb ancb nod) ntcbt ben @tmratter etne?» 0§etnerbebetrtebe§,3)-
ebento mentg tute bag bet SBrtbatbetrteben ber Cgall tit. @a e6 bten-
nacb ban ber tubjetttben Qinlcbannng ber ©emetnbebermaltnngen
abbangt, 0b etn SBetrteb alé Cemerbebetrteb anégebtlbet tft nber
ntcbt, to ergtbt ttcl) bte SJtbgltdﬁett, bat; betlelbe Slv‘ettteb tn ber etnen
@tabt alé; @etnerbebetrteb tn bet: anberen alé b'ﬁentitcbe Qtnltalt
bettnaltet mtrbﬁ) note ba?» 5. 56. bet Sagerbtiniern, ‘Eeétntetttonss
anftaiten n. bergl. mbgltcb tit.
1) QBagner: ,,%‘Il'l(lll§ll)1ﬁ€llTCbﬂft” I. @. 185 tprtdn tn tibnltcbem
ﬁttfantntenbange nun ben @tnnalpnen an<3 folcben Fltetrtebeu je and) bent
‘llurberrfcbeu be?» QCEtnanynnnwuteQ at?» nun "rein nber. itbermtegeub uber
bod) gttgletd) Inefentltcb tntt prtuatwtrttcbaftltcben“.
2) %nc[)§3 a. a. D. Q 112,
8) Qtebnltd) iUtmnbert @cbr. ‘1). Q}. T. @. 23b. 128 65. 8.
4) Qtelptltcb QQetB @652. b. 2}. f. 6 23b. 132. (‘5. 171 f.
___.4_
Sltacb ben borttebenb erbrterten (Sirnttbfagen totrb man regeb
maﬁtg 5n ben @etoerbebetrteben ber @tabte 5n 5abten baben tbre
01%;, QBaﬁer; nnb @Iet'trtgttatsnterte, Qtertebrsetnrtcbtnngen tote
@traﬁenbabnen nnb Eliltart'tballen, terner tn getotﬁem llm‘fange
and) bte @partalten, @nbiacbta nnb EStebbbTe nnb banttg ancbjantttire
@tnrtcbtnngen note Sliabeanftalten (St‘nrorte). 8n bteten treten bann
nod) anbere getoerbltcbe Sltetrtebe, benen toentgttené boritinftg nocb
tetne grbﬁere %‘ebentnng 5at’ommt, rote Qﬁafttotrttcba‘ften, QIpotbeten,
@tnrtclnnngen, bte bem SteIIamenJeIen btenen, glﬂat'attanlen, @ea
metnb ebractereten nnb Bettnngen, Sb‘ant'en, Qirnnbrentenanttalten u. a.
@te @tnnabmen an?» ben bienaerbebetrteben ttnb Qirroerbsetna
fttntte nnb gebbren ab? toIcbe 5n ben prtbatmtrtlcbattlttlwn.‘ @te
fteben tm Cegenlatg, 5n ben bﬁentitdyrecbtltcben. 91E cbarat'tertftticbeé
llntertcbetbnngémert'mal tprtngt 5nnttcbft ing Qluge bas Bnoangéa
moment. @tne burcbieb‘lagenbe Sebentnng tann man tbm aber
ntcbt betmetten, ba tattacbltcb nnb oft and) recbtltcl), tote 5. 2%. bet
ber EBerpTItcbtnng 5am 91nlcblnB ber Sprinter an bte ﬁatterlettnngenf)
bet 23etrteben, bte taft allgemetn 5n ben @ﬁemerbebetrteben gee
5am naerben nnb bter5n ancb gerecbnet toerben mtttlen, etn 8mang6¢
moment gegeben tft. C.Dte @ettnttton ber prtbatrntrticbaftitcben (tine
nabmen at?» @tnnabmen, bte ltcb bte @ttibte nnter 91n6nn1§nng tbres";
etgnen ober ant bem Strebttnaege ermorbenen Ellermbgené tm Slilege
treten Qiertrageé bertcbaﬁen, trtfft bter alto ntcbt ttberall 511. (Ste
tann nnr ba tn boIIem llmfange SIBIatg, gretfen, too etne @tabt mtt
tbren llnternebmnngen tn freter Stontnrreng mtt Sl‘lrtnatbetrteben
anttrttt. 280 aber- ber tttibtttcbe ibetrteb etne monopolarttge @teilnng
etnntmmt, ba treten ban‘ftg recbtltcbe ober mentgttené tatiactﬂtebe
Bmangémomente ant, toekbe ben (Etntttn‘ften ans ben @eroerbea
betrteben etnen gebttbrenarttgen @Ibaratter nerletben. irotgbem
barf man fte tbrem gangen Qbeten nacI) ntebt 5n ben @ebtibren recbnen.
@er llntertcbteb Itegt bartn, bafg e9 ttct) bter tm (begentalg, 5n ben
Cebttbren um (btnnabmen ans llnternebmnngen banbe‘lt, roeIcbe
,,tm atlgemetnen nacb ben Crunbta'gen ber 93rtbatmtrtlcba‘ft
betrteben roerben.”2) 21nber§ tottrben bte @tntttntte ertt bann 5n
1) Sltamentltcl) menn btefer Bmang mtt etner ibunfcbalabgabe
nerbunben tft.
2) non @beberg ,,
tnan mtﬁenfcb-aft” @. 68, ftebe aucb QBagner
,,%tnan51ntﬁenfcbaft” I. (‘5. 484
__.5.__
beurtetten fetn, toenn btefe Wonobote 3n ilytnangmmobolen merben,
ba bet btefen baé; Emonopol ta ntcbt?) anbereé tft aié ,,etne betonbere
%orm ber @rbebnng etner Qterbrancbéftener.” 1) Qton etnem t{ytnangfv
monopol tottrbe aber nnr bte §Itebe tetn fbnnen, toenn bte @ta'bte
tbre @tellnngE auénntjen rottrben, um etnen nnberbattntémaﬁtg
bbberen Giemtnn 5n ergteien at?» ben, ‘roeicber bet Fberttctttctntgnng
' abnItcber iBrtbatbetrtebe obne illtonopolcbaratter angemetien er;
fcbetnt. SDtes? bttrtte aber gar 8ett mentgftené bet ben tttibttlcben
(betrerbebetrteben, tomett bet tbnen nacb 53age ber Ceteggebnng
etn Slltonopolcbaratter ﬁberbaupt mbgttrb tit, an?» polttttcben (@tabte
lparIamente) nnb tetttoette and) bottsmtrttmattltcben @5rttnben (5. 23.
ibelenrbtnngélnrrogate tt'n: 05w; nnb @Iettrtgtta't) tm toeientltrben
ausgelcbtoﬁen letn.


1) Begtg tn @anbw. b. @t. 58b. V (‘5. 851.
l. mama.
Qte (tintwtcflnng ber wtcbttgtten
tttibtttcben Cemerbebetrtebe
unter Qierticfftcbttgnng ber beuttcben
Croﬁfn'ibte. 1)
1. Ktapttet.
Qbaﬁerroerfe.
QSon ben Cemerbebetrteben, bte bente mettt tn fta'bttlcber ﬁler;
maltang tteben, bttrtten toobl bte Sliltaﬁernaert'e ant bte ltingfte (be;
lcbtcbte 3arttctb1tcten. Ccbon Eltamieé bem (broBen nnb Cemtramts
notrb ber Can non .SIBaﬁerlettnngen 3ngelcbrteben, bte ber iterforgnng
grbﬁerer @ebtete mtt EZBaﬁer btenten, aber nocb tiIteren llrtprnng?»
bttrften QIqna'bntte tn @btna letn, non benen i'lberrette nod) bente
erbalten ttnb. Qietannter ab} btete ttnb bte QIqnttbn‘Ete 810mg, beren
erfter, bte Aqua Appta, 350 b. @br. erbant tonrbe. Sbm tolgten balb
anbere, nnb gar Bett beé; @Ianbtné (50 n. 01hr.) maren beretté aIIe
iBrtbatba'nter an bte SLbiéaﬁerlettnng angettiﬂotten, an ber 700 sBertonen
betcba'tttgt toaren?) °5~ttr bte QBaﬁerentnabme mutate etn Btné bee
5ablt toerben. @te I'lberrelte ber 5n letner ,8ett bettebenben Qbaﬁera
Iettnngen, bte noett tn?» Cebtrge btnetnttibrten nnb ttbrtgen?» tm
meientltmen obertrbttct) roaren, ltnb nod) bente 3a leben nnb fteben
tetttoette nod) I)ente tn Cenngnng. @em QtetlpteIe 910m?» tolgten
groBe nnb tIetne Cta'bte tn ben iBrobtngen. 2116 S.b‘ettptel fet nnr
@bln angefttbrt, toelcbeé mttteié etner toftfpteitgen Qettang letn
Qbaﬁer ans ber (bitfet erbteit.
1) lleber 100 000 Ctnroobner nacb bent Ctanbe D0111 30.$nnt1909.
2) Saﬁé tn Betttcbr. f. Cogtalro. 1908 C. 416.
(Etne mettere @ntmtcﬂang t'ntipfte ttct) aber bteran ntcbt. 21b;
geteben non roentgen glianten, tote bem Qtqnttbnt't non QIrcnetI
(1613—24), ber bte Cfyonttinen be?» Qngjembonrgpalafteé tpetten tolite,
nnb bem QIqna'bntt ,,9Iltatntenon”, ben Qubnatg XIV. mtt etnem
Stottenantnaanb bon 22 illttlltonen Store?» ttir tetne QEerIatIIer 9m:
Iagen anéttibren Iteft, nanrbe bt?» 5n Cegtnn be?» nortgen Sabrbnnbert?»
toentg nene?» gelcbaffen. S.Iltan begntigte ttcb bteimebr faft aIIgemetn
mtt SQanQbrnnnenanIagen. Crft ber tnto'tge bes's gltnnaaebien? ber
fta'btttcben Qiebblt'ernng nnb ber ﬂnfptﬁme ber Snbnftrte tmmer
fttblbarer toerbenbe Slitaﬁermangel, tn etntgen C5tillen togar ba?» SBer; .
ttegen ber ib‘rnnnen tnfolge bon bergbaultcben QInIagen, 5. ‘23. tm
Eltubrgebtet nnb tn Dbericble'lten, bte @rt'enntnt?» tcblteﬁltcb, baB bte
Sgansbrnnnen 3am ‘EetI etn $18M)" er lteterten, bag ben etntacbften Sltna
lprttcben ber @ngtene ntcbt genttgte, tttbrten gar QInIage grofger
5entraler Eb3attertoertéanlagen.
@en Qtnfang macbte Cnglanb, bem etntge $abr5ebnte {pater
gegen EUtttte be?» bortgen Sabrbunberté CEentIcIﬂanb folgte.
iltnr tn roentgen %allen ttberitet'gen I)ter bte Ctttbte ben titan nnb ben
Slietrteb bem prtoaten Stapttal, nnb mo e? geicbab, beriucbte man iobalb
at?» 1nbgltcbbnrcb grant bte prtbaten iillerte tn ftttbttfcben SBetttg, 5n brtngen.
Ca?» erfte bffentltcbe ﬁtaﬁermert' tn Cékettttctﬂanb tit ba? non
@antbnrg, ba?» bon etner engItlcI)en Ceiellicbaft 1849 erbant ronrbe.
Sbm foIgten 1856 ba?» ebentall?» bon QEngIt'tnbern erbante nnb bon
tbnen bt?» 1874 betrtebene ﬂlb‘aﬁertoert' non Serltn nnb 1859 bte
Qlierte bon Qlltona unb SJJtagbebnrg.
@te nJettere (bntrotctlnng be?» §6ane<3 bon Qbaﬁerroert’en tm
benttcben 31etcbe getgt bte folgenbe ,8nlammenftetlung: 1)

W I s , It be‘ Ct'tbb
Cttibte f 1870—80 1880—90118904900 9‘" 3“) _ 1' ‘ t
lbw i 99116011 olnte 91:11. I I. gangcn

11‘1" “
2000353660 20 up) 94 (6) 201(14) 381 (26) 696(47) 794(53) 1490
@tnluobner

arcingseééo 23 (15) as (29) so (23) 34 (23) 150 (100 -_ 150
@tnlnobner

3111mm 43 (3)“ 152 (9) 263 (15) 415(25) 846 (52) 794 (48) 1640


1) Cntnonnnen: ©rabn tn "(Edie bentfcben Ctttbte”, I. C. 303.
2) 8n °lo aIIer (Sememben bertelben matte.
__8_
gm 3abre 1900 maren bemnacb alle Cemetnben bon mebr at?
.25 000 @tnnoobnern mtt etnem bttentitcben Qbattermert berteben,
bon ben tletneren atlerbtng? erft 47 %. 19051) batten Dan 2590
benttcben Ctabt: nnb Banbgemetnben 2) mtt ttber 2000 @tnroobnern
Icbon 55 % etn ﬁftaﬁe'rtoert nnb 51 % etn etgneél. iion aIIen 28aﬁer;
noerten toaren alto bamal? 92 9/0 tn gemetnbltcbem ‘Bettb, barnnter
bte ber 43 Crofgtta'bte mtt alletntger 21n5nabme anon Celtenttrcben 3),
Sﬁtrborta) nnb Ccbb'neberg‘l). @te brtbate llnternebmnng tit alto
bter to telten, bat; man bente lcbon bte QBaﬁertoerte at?» tbpttcbe 050;
. metnbebetrtebe 5n begetcbnen tn ber Bage ttts”) 1908 batten bon
ca. 3600 Cemetnben mtt mebr at? 2000 @tnrnobnern nacb bem.
@enticben Stetcbéabreftbucb 1976 =54,9% etn communale?» ibaﬁere
merits)
@te Stapttalten, naeIcbe bte Cttibte tn btete QInIagen tnbetttert
baben, ttnb recbt erbebltcbe. QIn ber @ptge ftebt %erltn mtt rnnb
83 iUttlitonen illtart, nnb tbm tolgen tn toettem QIbItanbe, aber tmmer
nocb mtt iebr groBen Cummen @ambnrg (35 1/2 SlIttIItonen SJtart),
{igranttnrt a. 2m. (331/2 SJIttIItonen iUtart), @re?»ben (21,9 ‘Jittlltonen
EUtart'), @barlottenbarg (19,8 Sittlltonen Smart), %re?»lan (16,3 iUttllta
onen ElJtart) ntto. iltabere 91n9tnntt11ber bte QInIagemerte ber Qltaﬂera
merte rote ancb tiber beren SlErobnt'ttonémengen, @tnnabmen, 2111?»:
gaben nnb Sl3etrteb?»ttberlcbttﬁe gtbt bte iabelie I. Qbtoobl bte tn
btete antgenommenen QIngaben beé Ctat. Sabrb. nnb bte 5am titer:
gletcb baneben gettellten QIngaben be?» 010m. $abrb. 5n erbebltcben
‘Beanftanbnngen QInIaB geben, note ttbon bte Qiertcbtebenbetten ber
Qtngaben ber betben Sabrbtttber ert'ennen latten — ntibere? bterttber
ttebe unten tn Stapttel 8 —, nnb obtoobl e9 be?»balb namentltcb ntcbt
nnbebentltcb tlt ant Crnnb ber iabeilenangaben itergletcbe 5mtteben
ben etngelnen Ctabten angnftellen, to 5etgt an?» bte C.Eabeile boob bte
geroaittge 1otrtlcbattltcbe 25ebeutung 'bteter gb‘etrtebe, nnb bte tn
We Bettnng £30. 1053, 1909. I
2) @arnnter 2309 Ctabt= unb 287 Banbgerneinben.
3) Ctat. 3abrb. b. Ct. XVI, 180 ff.
QIIIBCIDQITI toerben Eette etnt er Cttibte oon prtnaten QBaﬁermerfen
uerforgt, Io 015ln=@eu13, @ut?»burg= eibertcb, @nt?bnrg=3tubrort.
4) Co ©efcbtift?»bertcbt be? (Sbartottenbnrger Elbaﬁerroert? 91.43. oont
Sabre 1906/07. @bartottenburg teIbtt bat am 1. Qttober 1906 bag bt?»
babtn private QBert‘ tn ftttbt. iteftg gebracbt.
6) Crbrtften be? 2}. f. C. 23b. 128 C. 12.
6) Cogtate IBrart?» 1908/09 C. 252.
_9_
SBrogenten beé 21n1agetoerte6 auégebrttcften Cetrtebéﬁbertrbttﬁe gee
nttgen, um bargntnn, baB tn ber mettan?» grofgten Sab't bteter Cta'bte
$etrteb6ge1otnne ergtett merben, bte ancb nacb QIbIegnng angeﬁ
meﬁener ibetrttge ttir itergtntnng, itlgung nnb bergt. notb etnen-
ntcbt nnerbebltcben Stetngennnn entbalten. QInémabmen bettattgen
ancb bter bte StegeI. 91m mettten ta'IIt tn bteterélttcbtung Stbntgéberg
ant, bag 1904/5 nnr etnen §Betrteb?»ttbertct)uf5 non 2,9 % ergtelte,
bteien aber tn ben nacbtten Sabren ant 4,4 nnb 4,7 % erbbbte. 91nd)
Q3remen nnb tn bem legten Sabre @IberteIb nnb $Ianen tcbttet'gen
mtt ca. 3,6—5 O/O recbt tcblecbt ab, roabrenb aIIe anberen Ctabte
tm @nrcbtcbnttt ber bret Iegten Sabre mentgftené ttber 5 % (Ce,
trteb61'1bertcbnB) ergtelt unb to tebentatlé ntcbt mtt Ccbaben gee
arbettet b_aben.1)
2. St‘aptteI.
@asroerfe.
911mb ant bem @ebtete ber Ctiéoertorgnng maren e3 bte (tinge
Ia'nber, bte tn @euttcblanb bte Sntttattbe ergrtﬁen, nnr mtt bem
llnterlcbtebe, bab tte ant btetem (55ebtete tn mett grbBerem llmfange
nnb tttr Ittngere Sett tbren (btntlnit geltenb 5n macben tonﬁten.
,ﬁQte Ctabtbertoattnngen ttberlteften, at?» bte Caébelencbtang
5n Qtntang be?» bortgen Sabrbunbert?» non (FmgIanb natb @enticblanb
tmporttert nanrbe, bag Selb beretttotlltgtt ben Cnglttnbern. Sltan
mar trob, tn tbnen bte geetgneten Qente getnnben 5n baben, bte
bte jcbnttertge Qtntg'abe ber fta'btttcben ﬁbelencbtnng obne jebe Snana
lprncbnabme tta'btttcber SlJtttteI anégntttbren be1fipracben.”2)
@te erfte fttibtticbe CaQanTtaIt ttt bte non @reében, bte
1833 an?» ttétalttcbem tn fittbtttcben ibetttg ttbergtng unb tbre Qinta
ftebnng ben nnermttbltcben Semttbnngen beé bentlcben Caéptonteréi
SBiocbmann 3n berbanten bat, ber mtt groBem Ceicbtct e?» nnternabm
ben Cnglttnbern Rontnrreng, 5n macben.
1) "(53? ttnb itberrotegenb ftuangtelle @efttbtwuntte, bte bet ber *Bw
meﬁung beg Sll‘mﬁerprette?» tn Stage tontlnen; bte Ct'ctbte 1oollen etnen
llnternebmergemtnn ergtelen."
(@Cbrifi. o. a}. i. e. no. 128 e. 28.).
2) Btnbemann, ,ﬁllrb.1.1.23trt1cbaft3pﬂeg0" II. C. 21.
_1O_
QBentge Sabre tpttter betcbloB itetpgtg nnb erft 1844 $erltn' an
ben 58ml etne?» etgenen Caémerteé berangntreten. 05? beftanb,
tote Stnbemann tagt,1) ,,tm allgentetnen bet ben Cttibten etne grofge
Qtbnetgnng Caéanftaiten 5n batten nnb ben SBetrteb tn etgner Stegte
5n tttbren -— erft alé ttcb tm Saute non Sabrgebnten bte Case.
anftalten at?» toltbe nnb rentable llnternebmen betotibrt batten, berlor ‘
ttcb bte SZtngttttcbtett.”
ﬁber baé erfte Ctabtum ber @nttotdbmg ber Cta'btttcben Caz;
anttalten Itegt nnr etn recbt btirfttge? EUtatertaI bor. Eltacb ben Ccbrttten
be?» it. t. C. batten 1878 tn iBrenBen non 170 Cemetnben mtt ﬁber
10 000 @tnroobnern 83, alto nabegn bte Sga'Itte, etgne @aéanftalten,
bte ttbrtgen 87 Cemetnben betaften ancb 5am groften ﬁeti (bag;
mert'e, aber nnr alé prtbate llnternebmnngen?) $3eﬁer Ia'ﬁt ftcb bte
Cnttotttlnng Dan 1888 ab berfolgen, tettbem tn SIteeté’?» ttat. Sabrb.
@eutlcber Cttibte tortlanfenbe Ctattfttten ertcbtenen ttnb. .S-“Qternacb
betafgen non 44 gar llntertncbnng berangeg-ogenen Cta'bten 1888 2/3
etgne Caétoerte. Sn 9Jtttncben, C{grantfnrt a. 50%., Sgannober, Ctntt:
gart, CtraBbnrg, 2I'Itona, Qtacben, @refelb, ‘Dortmnnb, Sllttttbanien t. (5
gllngébnrg, @rfurt, <Srant'tnrt a. D., Meg unb SI130t6bam lag bte (5r;
5engnng nnb QIbgabe non (51a? nocb tn prtbaten Sgtinben?)
EIteben ben ftttbtttcben iiterten bettanben nocb prtbate tn éb‘erltn,
Cbln unb wtagbeburg, bte aber anf @rnnb tbrer §8ertrttge nnr Ctabt;
tetIe mtt 05m? bertorgten, bte ebebem telbftttnbtge Qtororte gebtlbet
batten. @aé Sgambnrger QBert roar tn (ta'btttcbem %etttg, aber ber;
pacbtet. 98t?» 1895 trat anBer tn QIItona, too tnglotfcben etn neneé
tta'btttcbeé 28ert erbant nnb ba? alte prtbate (ttIIgeIegt toorben' roar,
tn ben Ebettgberbaltnttten t'etne Qtnbernng etn. §80n 1895—1900
mnrben bte .prtbaten Caéanttalten bon EUtttneben, Ctuttgart nnb
(Srefelb communattttert. 1909 betaﬁen non ben 43 Cta'bten mtt ttber
100 000 @tnnaobnern 36, b. t. ettoa 85 % etgne Qberte. EBrtDate (51mg;
anftalten batten nnr nocb QIacben, @ortmnnb, Crfnrt, Srantfnrt a. 21.12.,
@eltent'trcben, @annober, Ccbbneberg nnb Ctraﬁbnrg. 1905 batten
bon 2590 bentlcben Cemetnben (Ctabta nnb Qanbgemetnben) mtt
ttber 2000 @tnroobnern 1176 = 44,4 % Caéanttalten nnb 5mar
1) a. a. D. C. 21.
2) iBbul28 C. 33 nacb 8ettfcbrtft be?» Sgt. illrenft. Ctat. ‘Bnreanb
Crgattgungébeft 6.
3) Ctat. Sabrb. 2). Ct. I.
_11_.__
758 =29,3 % etgene.1) 1908 betrngen bet ca. 3600 Cemetnben
bte entfprecbenben Stftern 1385 : 38,5 % nnb 842 2 23,4 5%,?)
%on alien maren aIfo 1905: 64,5 % anb 1908: 60,8 94, in communalem
gb‘etttt irotg, ber progentnaIen QIbnabme, bte tbren Crnnb tn bem
Qtnfrttcten bteler tletner unb armer Cemetnben bat, tit abtolnt bema
nacb aucb non 1905—1908 bte Sabl ber @aémerte, prtbater tote
fta'bttfcber, ntcbt unerbebltcb getttegen.
(ﬁn iltergietcb mtt ben éwaﬁernoerten 5etgt aber, batg bte Comma;
naItiternng bet ben Caéroerten nocb lange ntcbt tomett Tortgeicbrttten
.tft tote bort. 05?» ertia'rt ttcb ba? tetttoette toentgftené bnrcb bte Ianga
frtfttgen $ertrdge mtt ben ilﬁrtoatnnternebmern, bte ben Cemetnben
etn teIbfttinbtge?» Qtorgeben unmbgltcb macben.
I'lber bte totrttcbaftttcbe Sltebentnng ber ftttbtttcben @aémerfe
gtbt bte nacbfolgenbe iabelte II ﬂnﬁcblufa, fttr bte aber ancb baé ant
Cette 8 ttber bte QIngaben ber iabelle I getagte gtIt. .8etber teblen
bter fttr etne 3tetbe bon QInItaIten QIngaben ttber bte Sgbbe beé Qtna
Iagetoerteé, nnb e?» tit tntotoett ancb ntcbt mbgttcb ben SlS‘etrteb aura»
icbnﬁ tn 93rogenten beé ﬂnlageroerteg 5n beretbnen. @te gegebenen
,8ablen bttrften aber bocb genttgen bargntun, bag and) tn ben
fttibtttcben Caétoerten groBe Itapttalmaﬁen angetegt itnb, unb baf,’
ber Q'ietrtebéttberfcbnﬁ burcbmeg anéretcbt, um nacb Qtbg-ng non
§8er5tntnng, QImorttIatton nnb bergI. ben Cta'bten nocb etnen be;
tracbtltcben @etotnn 5n getna'bren.
3. .It‘apttet.
Gteftrtgtttits‘werfe.
@er QInHtbnJnng, ben bte @Iettrotecbntt bnrcb tbre glttng-enben
Crttnbnngen tett QInIang ber 80er Sabre genommen bat, ertcbioﬁ
ben Ctttbten etn nene? Selb fttr tbre geroerbltcbe ia'ttgtett. EBaIb
entftanben Clettrtg-ttatggentraiett, bte gmna'tbtt nnr tl'telencbtnnga
5mecten btenten, bann aber ancb tntolge ber gtmebmenben Qtera
menbnng elettrttcber ibtotore titr Srattergengnng etngertcbtet tourben.
1) Cdn‘tft b. 23. f. C. ,,©emetnbebetrtebe” C. 34.
_ 2) Cogtale iBragt? 190819 C. 252 nacb ben Qtngaben be?» bentldben
9tetcb3abrefgbucbe3 S
2
J
——'2—
l
1
Cat2 erfte grbfgere (51ettrt5ttt'tt9mert nanrbe at?» XBrtoatnnter;
nebmen tn ‘lterltn am 22. 93515 1886 erbﬁnet. 59ur5 baranf tolgten
ftttbtttcbe QBert'e tn 5:)ambnrg1), Sbbntgéberg, SBarmen, tonne @ntga
burg, nnb bte mettere @nttotct‘lnng 5etgt, bat; bte S'abl ber Cta'bte
mtt etgenen @Iettrt5tttit?»toerten 2) tn (tetetn Snnebmen begrttfen ttt.
Qton ben Ctabten, bte an baé Ctat. Sabrb. ‘1). Ct. bertcbten,
baben 03'Ie_t'trt5ttttt?»merte:
Sabr. Sabl ber Ctttbte. etgene prtbate
89/90 8 7 (1) 3) 1
91/92 13 11 (1) 2
93/94 16 14 (1) 2
95/96 20 15 (2) 5
97/98 29 20 (4) 9
99/00 40 29 (5) 11
02/03 49 43 (7) 6
04/05 55 43 (5) 12
05/06 56 45 (5) 11
06/07 57 46 (2) 11
Ste Senben5 5nr 05rrtcbtnng tta'btttcber 28erte rotrb tn etma
babnrcb gebemmt, baB tnfoIge ber @rtenntnt?» ber Q's‘ortetie grbﬁt:
mbgtttbtter Bentraltlatton nnb tntoige ber 'Ietcbten I'lbertragbara
fett elet'trttcber Cnergte tmmer mebr tietnere nnb mtttlere Cta'bte,
tetIntetle ancb grbﬁere, tote 5. 93. Cellent'trcben nnb tn atlerlegter
Sett ancb 015m ba5n ttbergeben an grotge 93rtbattoert‘e QInIcbInB
5n tucben, namentltcb toenn btete tnt'olge tbrer gttntttgen Sage 5n
SIobTtoﬁIagern‘t) betonber?» btlltg 5n arbetten nermbgen, 'ober tm
2§eretn mtt benacbbarten Cttibten, Qanbtretten nnb b'er prtbaten
1) ‘3)a?» fta'btttcbe ﬁBerf QantburgQ gtng 1893 in ‘lhtnatbeftg ttber.
2) 8mm Qtetrtebe ber Ctratgenbabn ftnb tn etutgen Ctttbten neben
bem commnnaten ober prtoaten @I0ftrt5ttttt3nmrf belonbere SIIBert'e
oorbanben, 5. tn Carmen, 23ocb1mt, ibtranntcbroeig, Cbenmtg, @all5tg,
‘butgburg, (3r urt, (511ml, Startgrube, Stet, EIIIIrnberg, itolen, Ctetttn, @0110
nub Qetp5tg ( tat. Sabrb. Q). Ct. XVI C. 143).
3) @te in ﬁlannnern betgefttgten Sablen geben bte 91115abI ber
communalen, aber an SI‘srtoate'nerpacbteten iberfe, an.
4) Co @btn, 1oelcbe?» Itatt bte burcb Bunabme beg Honfntné
erforberltcbe Qtergrbﬁernng fetner QBert'e nor5unebtnen, etnen Qtertrag ant
Btefernug non @Ieftrt5ttttt mtt ber 91bet1'1tfcbe1'1 91.=®. fit-r Qtraunfoblen:
itergbau nub CrtfettfaDrtfattDn abgefcbloﬁen bat.
:13—
Croﬁtnbnftrte gemetntame Clettrt5ttttt?»toerfe tn Sorm non ﬁtttena
gefelb'cbatten 5n errtcbten (5. 23. ba?» commnnale (851eftrt5ttat3mert
Eliltart 91. C. 5n @agen t. 253.), bte ben SBrtnatroerten 5ngerecbnet
merben mttﬂen, bet benen aber tm grofgen llmfange fta'btttcbeé
Stabttal tntereﬁtert tft. $80n ben 43 @roﬁttttbten batten 1908/09
35 z 81 % etgene iberte, 1) tottbrenb bte 8 anbereng) bte §3er¢
torgnng tbrer Ctabt mtt @lettrt5tttit prtbaten i8erten tiberltetgen.
19083) bertttgten non ben ca. 3600 @emetnben mtt mebr at?» 2000
@tnnoobnern 2301 b. t. 64 % tiber @Iettrt5ttat6merte, aber nnr 510
Cemetnben : 14,2 0/0 batten etgene QBerte.
‘Qte ftnan5telle nnb notrttcbaftltcbe Qtebentnng ber fta'bttlcben
@Iettrt5ttat?»toerte (I. ﬁabelle III, bter5-n aber and) bte ﬂnétttbrnngen
tn SaptteI 8 b9. QIbIcbntttQ) tit entlprecbenb tbrer gertngeren Cnta
notctelnng nnb tbre?» tletneren Sltbnebmertrette?» natttrltcb ntcbt to
grofg tote bte ber norbetprocbenen 28erte. @a?» grbﬁte STapttaI tit
tnbefttert tn bem émttncbener @Iettrt5ttttt9mert' mtt 23 1/2 illttlitonen,
bem nnmttteibar Ctnttgart mtt ca. 14 unb Sranttnrt a. 931. mtt
13,4 EUttlItonen totgen.
@te ftnan5tetlen @rgebntﬁe ttnb 5temltcb befrtebtgenbe. @er
tn SJ$ro5enten be?» Qtntagemerte?» beretbnete “Betrtebéttbertcbnﬁ '
beltiutt ttcb abgeleben non Ctetttn mtt 5,6 95 ttberaII ant mebr
al?» 8 %, tn ben metften Cttibten ('ogar ant ttber 10 95, toobet abe'r
berttctttcbttgt merben mnfg, bat; gerabe bter relatto bobe Qtbtcbreta
bungen erforberltcb ttnb, bte nacb etner tn ben Ccbrttten be?» 2?.
f. C. %b. 128 C. 64 berange50genen Qtnttcbt non ﬁbebert) alletn
41/2 % be?» QInIagetapttaI? betragen mtiﬁen, tobaf3 man ertt bet
etnem I'lbericbnﬁ ben 10 % non etnem llnternebmergemtnn totrb
fprecben bttrten.
SItamentItcb tnenn man bteieé beacbtet, 5etgt ttcb, bag bte ttnam
5tellen Céirgebntﬁe bet ben Clettrt5ttatétnert'en ntcbt to gttnfttge ttnb
at?» bet ben CaQmert'en. 036' ert'Iart itcb bte<3 aber etntarb baron?»
1) Canon 1 (tEbarIotteubn-rg) an 931%natunternebmnng mmgacbtet.~
. 2) @teg ftnb Elterltn, ‘Braunfdnoetg, ($11011, Gtelt'euftrd)en, @ambnrg,
Elttgborf, Cd)bneberg1mb Ctrnfgbnrg. Sn Ctetttn bettebt neben bem ftttbt.
QBert' nod) etn PIIDLIIGQ.
3) C05. 1tragt?» 1908/09 C. 252 nacb bent @eutftben Stettbgabrefgbncb.
f) @ireftorflBeber, @tteuacb. ‘Dte 9tentabtlttttt ber @Ietrt5ttttt?»=
merte 1n ben Ctabten non 10-50000 (Etnrnobneru. Sonrnal fiir 05a3=
beteucbtnng nnb QBaﬁeroertorgnng 1904.
_14,__
bat; trot; ber bbberen Ceftebnngﬁoften ber 031ettrt5ttt1t bnrcb bte
Sctontnrren5 ber 05a?»anftaiten man ge5toungen ttt, ,,mtt tbrem
EErette mbgttcbft nabe an ben (55a?pret? beran5-ugeben.” 1) >
4. Sapttet.
Ctrabenbabnen.
€Dte erften QInta'nge be? Ctraﬁenbabnmeten?» ftnben ttcb tn
Qttnertta, too 1852 tn 9teto Sort etne S'JSTerbebabn tbren *b‘etrteb
erbttnete?) Sn Cnropa tolgte SBart?» 1854, bem ttcb tm Saute ber
60er Sabre ancb anbere Ctttbte anlcbloﬁen, to tn c@enttcblanb 1865
tberltn, 1866 @ambnrg nnb 1868 Ctuttgart. @te @nttotctlnng roar
aber bter 5nnticbtt nocb etne recbt langtame, benn e? bauerte 5temltcb
Iange, bt?» bte Cemetnben bte QBtcbttgtett ber Ctra‘genbabnen at?»
Qtermtttler be? Snnenbertebr?» nnb be? $ert'ebr? ber Sororte mtt
ber Ctabt ertannten- Crft tn ben 70er Sabren nJurbe bte Cntrotcb
lung Iebbatter. Qton 72—80 erbtelten u. a. 8etp5tg, Srantfnrt a. 911.,
. ‘Dre?ben, @annober, 28te?baben, @tiﬁelbort, Clberfelbaibarmen,
23remen, EDtttncben, Starl?»rnbe, (5.5m, Sltre?1an, Cattel, itltagbebnrg,
ibtannbetm, Ctraﬁbnrg nnb Ctetttn Ctrafgenbabnen, nnb 1895. batten
non ben 55 Cta'bten mtt mebr at? 50 000 (btntoobnern berett? 48
Ctraﬁenbabnen.
23a? Cebtt'rtnt?» nacb beﬁerer, beqnemerer nnb tcbnellerer Sabra
- gelegenbett, ba? tntolge be? QIntoacbI en? be?» tta'btttcben Eltertebr? tmmer
Iebbatter 5n tage trat, gab ben Qtnlab bte ttertlcbe ItraTt bnrcb motoe
rttcbe 5n ertegen. cSte Qtertncbe, bte man mttfbampttratt nnb lptttera
btn mtt iBreBlnft, (3a?betrteb, terner mtt iBetrole'nma, Cen5tn; nnb
Cpt_rttn?trattmaicbtnen gemacbt, baben aber tetne grbbere QSebene
tang getoonnen. Crft bte elettrtf'cbe Strait, bte 5am erften SJtaIe ant
ber Qterltner 05etoerbean?ftellnng 1879 5ur Sortberoegung non Sabra
5engen benngt tonrbe, rtet tn ber Ceftattnng be? Ctra‘Benbabne
betrtebe?» etnen rtettgen llmtcbtoung berbor. @er SItierbebabnbetrteb
1) Co Ccbrtft b. 93. f. C. .‘Bb. 128 C. 67, TDD nacb‘lBeber a. a. D.
baranf btngewtefen tft, bat; etne ‘Bferbefttirt‘e bet etet‘trttcber ﬁraft 13,25 2Bfg.,
bet (55a?fraft 7,2—8,4 93ft}. ber5uftetten foftet.
2) @afetmann C. 4.
__15___
murbe to tcbnelt bnrtb ben ete'ttrttcben abgetbtt, bat'5 ttbon 1895 ben
ben 55 benttcben Ctttbten mtt mebr at?» 50 000 (btntoobnern 25 an?”
tcblteﬁltcb ober tetlroette etettrttcben Cetrteb etngetttbrt batten.1)
tb‘et bem Ctraﬁenbabntoeten bat brtbate?», tn?betonbere an?”
Ia'nbttcbe?» (englttcbe? unb belgttcbe?) .QapttaI etne nocb grbBere EItDIIe
gelptett at?» bet ben 6§a?anftatten. Ste Cttibte traten antang? nur
telten at?» Crbaner nnb %etrteb?nnternebmer ant. Sitar tletne Cea
metnben baben, ba ba?» EBrtbattapttaI ttcb ntcbt gemtnnen Ite‘B, an?»
etgenen iUtttteIn Ctraﬁenbabnen gebant, btete aber telten telbtt tn
etgener Stegte bebatten, tonbern metft berpacbtet ober bertautt.
CIDer Qiommnnaltfterung?gebante getoann Merit bann an Craft,
at? bte CtraBenbabnen ftcb 5n ertotgretcben, @tbtbenben abtnerten;
ben Qtetrteben enttotctelt batten, trogbem aber bte tm Sntereﬁe be?»
fta'bttfcben QEertebr? nnbebtngt non tbnen 5n torbernben, jebocb ntela
Ietcbt mentger protttabeln Crmetternngen tbre?» aIten Eltetgp? ab=
lebnten.” 2) llnb tegt baben bte Cttibte ott nnter grofgen ttnan5teIIen
Qptern an bte @rroerbnng ber nocb ant Iange Sabre an bte Cetetla
tcbatten ton5eﬁtonterten g5‘abnen berantreten mtiﬁen. Stacb bem
91nﬁatge bon ib‘anl ibtombert tn ben Ccbrttten be?» C. t. Co5talpot.
betaﬁen 1906 3) non 88 Ctabten ttber 50 000 Ctntoobnern 82 Ctraﬁen=
babnen, babon aber nnr 33 fttibtttcbe, non benen aucb nocb 2 ber:
pacbtet maren. -
1909 batten bon ben 43 @roﬁftabten 18 b. I. ca. 42 % etgene
Ctrafgenbabnen, non benen bte non Crefelb berpacbtet roar. Sn
‘Iiarmen, @Iberfelb, 2'>‘re?lan, @alte, 95ntg?berg nnb 233te?baben
bettanben aber neben ben tt'ctbtttcben antb nocb prtbate CtraBen=
babnen, tobaB nnr tn 11 Cta'bten (015m, @ortmnnb, §>re?ben,
ibttﬁelbort, @tten, Srantturt a. 932., S’tarI?rnbe, EJJtatn5, EUtannbetm,
ﬁltttncben, 9tttrnberg) ber getamte Ctraftenbabnbetrteb tn Itabtttcben
Sga'nben roar. Sm Cegentatg» ba5n tiberlteﬁen 26 Croﬁftabte ben
gan5en Ctraftenbabnoertebr prtbaten llnternebmern.
§Be5tigitcb ber ttnan5telten nnb totrttcbattltcben §8ebentnng be?
fta'bttfcben Ctraﬁenbabntoeten?» tet ant bte iabelle IV bertnteten, tn
bte aber ancb bte S.‘Brtoatbabnen antgenommen ttnb, melcbeben

1) Sabrb. ‘9. Ct. VII Sabrg. 1898.
2) Qtnbemann, ,,233trttcbaft?pttege” C 198.
8) ﬂirts. ,,05emetnbebetrtebe” C. 75.
__15_.
Ctraftenbabnbertebr tn Crofgfttibten betorgen. @te iabelle 1) 5etgt,
bat; bte Crgebntﬁe tm atlgemetnen recbt bttrtttge ttnb, jebentall?
toett tcblecbtere at? bet ben borbetprotbenen gemerbltcben Q3etrteben.
@er Crumb bttrtte ntcbt 5am mentgften bartn 5n tucben tetn, bait
gerabe bte fttibtttcben Ctra‘éenbabnen an?» to5talpolttttcben (tooba
nnng?bolttttcben) Crt'ntben mancbe nnrentable Ctrecten betretben
mtttien be5no. fiartte baben (Srtiba, Srbetterz, Ccbttlertarten nnb
bergI.), benen man etne nacbtet'ttge ibtrt'nng ant bte SEtentabtItttit
ancb bann 5ntprecben mug, toenn man grunbttigltcb ant bem Ctanba
pnnt'te ftebt, bat; etn mttBtger SartT tntolge Sbrbernng ber
Sreqnen5 bte 3tentabtitta't bebt. Sbet ber $etoertnng ber
I'lberlcbttﬁe, bte ancb tn iabelie IV tn 93ro5enten be? QInIagenJerte?»
berecbnet ltnb, natrb man berttctttcbttgen mttﬁen, baf3 bet ben
Ctraﬁenbabnbetrteben tn toett grb’gerem llmtange ittgungen
be5ro. Qtbtcbretbnngen (roltenbe? SJtatertaI, llnterban) borgenommen
noerben mttﬁen, at? bet ben 01a?toerten ntto. Ste Snbntten, bte nnr
tn etntgen Cttibten ttnben nnb tetttoette togar trot), erbeblttber tbea
trteb?ttbertcbttﬁe (t. 5. SB. Cbin mtt etner SnbnBe non 331 000 EIJZart
bet 124% 23etrteb?ttbertd)nB), ertla'ren ttcb tetltoette bnrcb bte boben
Sablnngen, bte tttr bte Qtblbfnng ber .90115eﬂton prtbater ltntera
nebmnngen nocb 5n 5ablen ttnb. Elllttt btrettem $etrteb?berluft are
bettet nnr bte prtbate Ctratgenbabn tn Stbntg?berg. @er §Betrteb?¢
getotnn tit aber ancb bet ben tta'bttltben Ctraﬁenbabnen bon @Iberﬂ
telb (0,25 %) nnb %re?lau (2 %) etn anfgerft mtntmaler.
5. Qapttel.
Ccblacbﬁ unb QBtebbbfe.
Qtfentltcbe Ccblacbtbttnter tannte lcbon ba? QIItertam. iDte
3tbmer erbanten mtt ber gletcben SIéracbt tote tbre anberen bttenta
Itcben Ceba'ube macella, tn benen bte Ccblacbtnngen ftatttanben?)
Sn Ebenttcblanb gebt tbre Cetcbtcbte 5nrtttf bt? tn bte erfte Sett be?
Sunttnoeten? Sm 13. 'Sabrbnnbert entltanben at? erfte bteler bamai?
1) QBegen ber Qtebenten gegen bte SlIngaben ber Ctat.Sabrb. unb be?
Com. Sabrb. (f. C. 8 nnb Rap. 8.) mnrben bterftir bte Qtngaben ber
,,Ctattfttt ber S-tletnbabnen tm benttcben 9tetcb“ entnomn'len.
,) @anbm'orterb. b. Ctaat?m. QIrt. ,,Cd)tacbtbtiufer” VI C. 576.
__17_
,ﬁnttelbbfe” genannten Ctblacbtbanter bte non 91ng?bnrg, Stotctan,
@ambnrg, Btegntg nnb Stbntg?berg.1) Cte murben non ben Sttntten
ber Slettcber gebaut, bte itcb to mbgltcbtt btIItge nnb beqneme Ccblacba
ridge (cbatten rooIIten. Sgterbet tanben tte mettt bte llnterftttgung
ber EBebb'rben, bte tttr bte @rbebung ber taft aIIgemetn tibltcben
Slettcbftenern etne Ietcbte Stontrolle erbotften, toenn alle @Cfﬂalfﬁa
tnngen an etnem bDrte ftattttnben rottrben. Qtteitatb bettanb and)
tcbon etn ,,Ccbtacbt5toang”, ba? Qterbot ber Ccblacbtnngen auﬁerbalb
be? 9ntteIbote?.2) @tnen grbBeren llmtang nabm btete SItetoegnng
aber tm illttttelalter ntcbt an, nnb bet itertali be? Snnfttoeten?
Cnbe be? 18. nnb 91ntang be? 19. Sabrbnnbert?, erbob tteb gegen tte
togar nnter ben Slettcbern betttger QBtberftanb, ber burcb bte bamal?
antt’ommenbe iXntttbt non ber llngettibritcbt'ett be?» Cennﬁe? bon
Sletteb trant'er $1350 befta'rt't nntrbe. ib‘erltn 5. 98. lcbIoB 1810 5met
non ben 1726/27 be5to. 1749/50 erbauten 3 Ccblacbtbtintern, nnb
1842 gtng' ba? tegte manget? Snnbtcbatt etn, mabrenb 5n gletcber
Sett be5to. fcbon borber tn Srantretcb bon Sltapoleon Ccbtacbtbtinfer
tn grofger ,SabI tn? Beben gernten morben maren. Crft 1868 tegte
etne nene SlSetoegnng 5ngnnften btfentltcber Cmlacbtbttnter tn
$euttcblanb etn. Sablretcbe Siettcbbergtttnngen nnb irtcbtnena
eptbemten, bte Cnbe ber 60er Sabre be? oortgen Sabrbunbert? bte
@emttter mtt Ccbrecten ertttllten, batten tntolge ber gemetntamen
Cemttbnngen ber a'r5tltcben, tterttr5tltcben 23eretne torote tolcber
‘tttr b'ttentltcbe 01etunbbett?ptIege 5111' Solge, baB tn iErenﬁen etn
Qtetetg; born 18. EIJta'rg, 1868 betreftenb bte Crrtcbtnng bﬁentltcber
an?tcbIteBItcb 5n benngenber' Ctblacbtbttuter erlatten mnrbe. 53161:;
nacb batten bte Cttibte ba? 9tecbt Ccblacbtbttuter mtt Ccblacbt5ntang
511 errtcbten. 91ber nnr roentge macbten bterbon Cebramb. 93a?
Cetetg, non 1868 entbtelt nttmlteb bteie Qttcten, bnrcb bte ttcb ba? Stete
tcbergeroerbe bem Slettcbicban5lnange nnb ber $6enn§nng ber btfent:
,Ittben Ccbtacbtbanter ent5teben tonnte. Stacb bem Cetetg, roar e?»
ntcbt berboten ba? gb‘teb angerbalb ber Ctabt 5n tcblacbten, nnb
to tam e? bteltacb 5. tb‘. tn éb‘erltn nor, baB bte Ctbtttcbter tbre Ccblacbt;
fttitten nor bte Ctabttore Iegten, ober gar ttcb anﬁerbatb ber Ctabt
1) Ccbmar5: C. 2.
2) Co 5. 93. tm 91ug?bnrger Ctabtrccbt mm 1276 fitr Ccbafe, 3ttnber
nub It‘tttber (@anbw. b. Ctaat?1n. a. a. Q. C. 577.)
—1.8—
etn 90ntnrren5nnternebmen erbanten, rote bte? tn ibttﬁelbort gee
tcbab, tn benen tte ber nnbeqnemen ftabtttcben Rontrolte ntcbt nnterlagen.
1880 belaBen erft 10 Cta'bte tn ibrenﬁen bt‘fentitcbe Ccblacbte
banter, na'mItcb: Qtegntg, ©1115, 9tetcbenbacb, Sger?telb, tbocbnm,
65m, ibttﬂelbort, Coltngen, Stltttﬁwtm (Ettubr) nnb Ct. Sobann.
SDte 91n?itcbt ant etne genttgenbe S‘tentabtItta't roar tntotge ber oben
ertoa'bnten Qttcten tm Cetetg, bon 1868 tebr gertng, nnb be?balb
magten bte metften ben 23ertntb ntcbt. @tne 9tnbernng bracbte bte
9tobelle ham 9. 3. 1881. Cte tnbrte tttr ba? anﬁerbaib ber Ctabt
geteblacbtete Slettcb bte amtltcbe Slett'cbbetcban etn, ermttcbttgte
bte Ctttbte btertttr etne tbre Rotten bbIItg bectenbe Cebttbr 5n erbeben
nnb ttcberte bte Eltentabtltta't tbrer QInIagen, tnbem tte ben Cemetnben
geftattete tbre @ebtibren to 511 bemeﬁen, bafg tte ben 5nr llntera
baltnng ber QInIagen, tttr bte 23etrteb?to(ten torote 5nr 2§er5tntnng
nnb altmtibttcben Qtmortttatton be? Qtnlagetapttal? nnb ber ettoa
ge5ablten Cnttcbabtgnngﬁnmme (Sbttnbnngﬁumme an tn ber Cea
metnbe borbanben genoetene SBrtbattcbb'tcbtereten) ,,erforber1tcben
EBetrag“ anibrtngenﬂ) @tn bbberer 8tn?tn15 at? 5% ta'brltcb unb
etne bbbere 91m0rttfatton?qnote at? 1% nebft ben ja'brItcb erfparten
Stntenz) bnrtte bterbet ntcbt tn QInIatZ» gebracbt toerben. Co roar ben
Cemetnben etne anfta'nbtge §3er5tntung be? ﬂntagetapttal? gee
(tcbert, anbertett? aber nnmbgttcb gemacbt bte Ccblacbta nnb llntera
tncbnng?gebttbren at? Slettcbttener an?5nbtlben. 59a? (Sommnnab
abgabegenteg bom 14. Salt 1893 erbbbte tn § 8 ben Catg, ant 8 %,3)
bte obne Stttcﬁtcbt ant tdbon erfolgte Qtmortttattonen botn QInIage;
tapttat etnl'cblf @nttcba'btgnngﬁnmme (t. oben) berecbnet toerben
bttrten nnb to ben Ctttbten neben etner angemeﬁenen §8er5tntnng
ancb etnen mtiﬁtgen @emtnn ermbgltcben. '
QIbnItcbe Celege tote bte prenfgtteben non 1868 unb 1881 ergtngen
tn ber Sett non 1875—87 tn ben ttbrtgen ibentfcben §8unbe?»ftaaten,4)
unb' tbre Solge roar tn gan5 Sbentfcblanb etne raptbe Snnabme be?
“I 1) @ef. 1». 1868/1881 § 5 nacb @dﬁmll‘?) e. s f.
2) a. a. D. C. 9.
8) ittur tn ben Ctttbten mtt Sletfcboftrot nerblteb e? bet 6°10.
4) 5. 2%. in Cacbfen Sltetntngen (Stet. n. 6. 911315, 22. €De5. 1875

5. ‘lt. Qtrannfrbmetg, 61d. 1). 12. 4. 1876
Qtnbatt ,, ,, 20. 4. 1878
Dlbenbnng ,, ,, 22. 1. 1879
Btppe-Cetmotb ,, ,, 30. 9. 1886
Stud; 1. Qtnte ,, ,, 30. 5. 1882
,, tt. ,, ,, ,, 31.12.1886
—19
tbane? commnnaler Ccbtacbtbtinter, beren tn iBrenBen non 1884—90
aIIetn 115 errtcbtet tonrben.
1907 betaBen non 1)
Cemetnben mtt 91n5ab1 ber Citnen etgnen 65m totcber tft
tltenaobnern Cemetnben Ccblacbtbot protet'ttert be5tn_
tm §8an
I Ctttbte nnter 2000 615 52 4
2 000 — 5 000 873 212 11.
5 000 — 20 000 602 339 I 13
20 000— 50 000 134 99 2
50 000—100 000 44 43 0
ﬁber 100 000 41 38 1
II Sanbgemetnben
5000— 10 000 180 6 —
10 000—20 000 71 5 3
ttber 20 000 30 8 3
@tnen nngttntttgen (tinting ant bte mettere Cbntnttctlnng ber
fta'btttcben Ccbtacbtbauter tn $renﬁen tibte ba? Ceteg non 1904 an?,
toelcbe? anBerbaIb gefcblacbtete? Slettcb, toenn e? bnrcb etnen approa
bterten iterar5t nntertncbt roar, non etner nocbmalt'gen llntertncbang
tm fta'btttcben Ctblacbtbot bet (etner Ctntnbr betrette. Sbte Soige -
roar, bait btele Elltegger an‘BerbaIb ber Ctabt tcbiacbten IteBen, too
tbnen gertngere Rotten entttanben, nnb ba? S'Iettcb ott etner toentger
tntenttben llnterfncbnng nnterlag. '
11m ber Cefabr ber Qterbbnng tbrer Ccblacbtbtiuter entgegen¢
5utreten, grttten bte Cemetnben 5n bertcbtebenen \Iltttteln. 285brenb
etntge ftcb enticbloﬁen tbre Cebtibren 5n erma'fttgen, berlncbten
anbere tbren Sweet baburcb 5n erretcben, bafg tte bte Qtertttnter
bon an?notirt?» getcbla'cbtetem Slettcb 5mangen, tbre QBare at? "etne
gebraebte? Slettcb” ober tibnltcb 5n be5etcbnen, nnb mteber anbere
macbten itcb bte Sefttmmnng be? § 2 91bt. 1 Sttter 6 5nnnt5e, bte
ben Ctttbten mtt Ccblacbtbbten erlaabt bnrcb Cemetnbebeicbiuﬁ
etnen Cperrtret? teft5-utet5en, an? bem tetn tn tbm getcblacbtete?
1) @te ﬁabette tft entnonmten an?» ben Ccbrtften be? 2}. t. C. .‘Bb.
128 C. 76.
__20_
Slettcb tn bte Ctabt 5am Swede be? itertanf? etngetttbrt toerben
barf. Co bat @nt?bnrg etnen Cperrtret? non 100 km Stabtn? felt:
getegt, bitten ben beftebenben non 40 km ant 100 km erbbbt unb
Ctetttn etne a'bnltcbe gBefttmmnng, bte 1904 antgeboben toorben roar,
tnteber erneuert nnb ben Cperrt'ret? ant 30 km Sltabtn? teftgefegtb
Eng berbnnben mtt bem Ccblacbtbot tit tn ben metften Cttibten
etn tttibtticber Qttebbot, ant ben ber getamte Qtnttrteb be? Ctblatbt:
bteb? 5n ertolgen bat. Cte @rttnbe btertttr ltegen ant ber Sganb.
91a? ber Ston5entratton ertoartet man mtt Eltecbt etne btlltgere,
Ietcbtere nnb beqnemere Ctntant?mbgttcbtett ancb tttr ben tletneren
Cemerbetretbenben, Quatttttt?berbeﬁernng, bte imbgltcbtett ber
iran?portertetrbternng bnrcb Can etne? SBabnantebtnﬁe? nnb bamtt
ben Sorttall be? oertebr?ftbrenben Qttebtretben? ant ben Ctra’Ben.
ﬁttnttbenmoert tit natitrltcb, batg Ccblacbn nnb 58tebbof nabe beta
etnanber Itegen, nnb baben be?balb mancbe Ctabte betbe ant etnen
grot'gen tltanm beretntgt, tottbrenb anbere ber Cencbengetabr toegen
etne getotﬁe Clirennnng to 5. C. Sgambnrg, ‘Iltttneben nnb .Sjpannober
burcb etne Ctrafge aufrecbt erbaIten baben.
‘Bon ben 77 Cttibten mtt ttber 50 000 @tntoobnern, bte an ba?
Ctattftttcbe Sabrbncb benttcber Cta'bte bertcbteteni) batten Cnbe
1907 47 etgne .‘Btebbb‘fe, tottbrenb 3, na'mltcb (blbemntg, @re?ben
unb Ctnttgart ben Snnungen gebbrtge Qttebbbte betaften, unb tn
Cretelb nnb @Ibertetb neben ben tta'btttcben 2 be5nJ. 1 prtbater bee
(tanben. Sebn Ctttbte batten tetnen Qttebbot.
Cte ttnan5tetlen @rgebntﬁe, bte bet ben Ccbtacbtbbten an?» ben
betprocbenen Crttnben tn 5temltcb engen @ren5en bletben mtttten
aber tmmerbtn etnen mttﬁtgen Qterbtenft neben ber §3er5tntnng
aim. abtoerten, ttnb bet ben Qttebbbten metft nngttntttgere. Cteltena
- mette ertorberten tte togar ,Snlcbtttte, to 5. *8. 1898/99 tn Wtagbebnrg
32 000 Smart nnb 1904/05 tn Spalle 12 350 Wart?) 1907/08 tn CaIIeI
9164 iUtart.4)
@tne an?titbrltcbe Sntammenftellnng ber QInIagemerte, ber
ttnan5teIIen (Ergebntﬁe unb 9tentabtlttc'tt?berecbnnngen tft mangei?
an?retcbenben ttattttticben EIItatertaI? ntcbt mbgltcb.
1) (to—mm. Sabrbnrb 1908 6. 62-63.
2) ‘ltb. XVII C. 594 ff, barunter bte 43 CrDBItttbte 111tt91n?»nabme
non Cbartottenbnrg, 3ttgborf unb Ccbbneberg, bte fetnen Qitebof befatgen.
3) Qtnbentann, ,,%111f?b gtene 2e.“ C. 232. .
4) Ct. Sabrb. 58b. XVI C. 611.
21—
6. Sitapttet.
Cparfaﬁ en.
8n ben tilteren (titbttfcben Cemerbebetrteben gebbren aucb bte
Cpartaﬁen. Sbre Qtorta'uter ttnb bte ber5ogltcbe Betbtaﬁe, bte 1765
in Ebrauntcbnaetg errtcbtet tourbe, unb bte @amburger Crtbarung?¢
t'aﬁe, bte 1778, ,,bon ber borttgen 2§ertorgung?anftalt 5am Stoecte
ber QIuHammIung unb Srut'tttt5terung ber tletnen Crtparntﬁe ber
unteren %olt?tlaﬁen etngertcbtet tourbe” unb bt? 1814 be)tanb.1)
@teien toigte at? antcbetnenb ertte tta'btttcbe Cbartaﬁe bte non Start?
rube tm Sabre 1816 2) unb bann tn ratcber Solge iberltn (1818),
Eltttrnberg, %re?1au, ‘1)re?ben (1821), Clbertetb, iUtannbetm, 9mg?
burg, Srantturt a. b. Dber, 28iir5burg (1822), @annober, Emagbeburg,
Ctetttn, @rturt (1823), Elitttncben (1824), @ttﬁelbort (1825), 65111,
2etp5tg, 9Jtatn5, Sretburg/Qtr. (1826), 95ntg?berg (1828) utm. titan
ben beuttcben Crofgtttibten batten 1908 be5to. 08/09 alie ttttbtttcbe
Cpartaﬁen 3) mtt 91u?nabme bon 25rauntcbroetg, ib‘remen, Kgamburg,
Stet unb 233te?baben, too aber burcbtoeg burcb ttaatltcbe 4=), prtbate 5)
ober gemetnntttgtge Snftttute ober burcb Cpart'aﬁen anberer 010m;
munatberba'nbe (9ret?tpartaﬁen) mebr ober toentger (Ertatg, gee
fcbaften tft.
I'lber bte grotge mtrttcbattltcbe Cebeutung ber Cpartatien unb
tbre ftnan5teIIen @rgebntﬁe unterrtcbtet bte C£abelle V.
SDte Cparetnlagen tn ben )timtltcben )tttbtticben Cpartatten ber
beuttcben Croﬁfta'bte betragen (tnbe 1907: 1881,49 illttlltonen Sltart‘,
too5u an 9teterben nocb etnoa 100 iUtttltonen imart 6) treten.
6‘? mar alto tn ben ftttbttteben Cpartaﬁen ber beuttcben 6§roB=
fttibte Cbnbe 1907 etn Sapttat non ettoa 2 EDttIItarben Smart ton5en$
trtert, tttberttcb etn trettltcber SBetoet? tttr bte gro‘ée EBebeutung, bte
ben Cloartaﬁen ant bem Cebtete be? Stapttaimartte? 5ut'ommt. Cte
Ctnlagen bettnben )tcb babet tn ftettger, Iebbatter .Sunabme. fbte
Cetamtetnlagen betragen tn atlen fta'bttfcb en Cb arta) ) en ber @roﬁfttibte:
1) .Sfpanbnt. ber Ct. VI C. 851.
"-) Ct. Sabrb. ‘E. Ct. I C. 148.
3) er. Sabrb. 55. XVII e. 151 f.
4) Co 5. Q3. Craunfcbmetg (bte ber5ogttcbe Cpart‘aﬁe).
5) Co Stet (Cpar- unb Betbtaﬁe).
6) 84797 900 illtart, mo5u aber nod) ber ntcbt 5n ermtttetnbe 93e-
fernefonb ber Cpartaﬁen non Qtacben unb EBerItn trttt.
._22__
@nbe 1900 1156,20 imtlltonen SJJtart 1) I
1903 1538,07 ,, ,,.
1905 "1685,29 ,, ,,
1907 1881,49 ,, ,,
@tn ttbnttcbe? QS‘tIb 5etgt bte Cnttotct‘tung ber Ctnlagetummen tn
ben etn5eInen Cpartatten, melcbe taft au?nabm?lo? non Sabr 5n
Sabr etn Ctetgen betunbeten. Stletne 9tttctga'nge ttnben )tcb nur
1907 tn 911tona, Cerltn unb I‘Dbntg?berg. @tete bttrtten tm tnetenta
itcben 5urttct5utttbren )etn aut bte rtettge Serttettung be? Cetbmartte?
bte tcbon barau? berborgebt, bat; ber 9tetcb?bantbt?tont 1907 tm
Sabre?burd)tcbnttt 6,033 %, tm 29e5ember btete? Sabre? togar 7,5 %
betrug. QIucb bte SIéerecbnung be? Cparbetrage? aut ben 955T ber
tbebblterung Ia'ﬁt tm metentltcben etne forttcbrettenbe Cnttotttlung
ertennen, tnenngleteb ben 10 geroonnenen Stttern etne tibermtifttge ‘
tbebeutung ntcbt 5ugemeﬁen toerben tann toegen ber toecbielnben
S25‘enblterung?5ttter etnmal, bte ott burcb @tngemetnbungen groBe
(tofnoette tBerttnberungen ertabren tann, unb ferner mett an mancben
Drten neben ben tta'btttcben Cpartaﬁen 9ret?tnartaﬁen ober anbere
betteben, an anberen toteber ntcbt. Cte? maebt etnen EBergIetcb unter
ben etn5etnen Cta'bten unmbgttcb. @te burcbtcbntttitcbe @utbaben;
bbbe tft etne-recbt bertcbtebene. Cte tcbnaant'te QEnbe 1907 5mttcben
1599 Wtart tn QIItona unb 208 iUtart' tn Sgannober. QIbgeIeben bon
etn5etnen 91u?nabmen totrb man tagen tbnnen, bat) gerabe bte Ctttbte
mtt etner grotgen bocbbetolbeten QIrbetterbebbIterung bterbet be;
tonber? gut abtcbnetben. l'lber 1000 Wtart' Curcbtcbnttt?gutbaben
batten @nbe 1907: QIacben (1039), QI'Itona (1599), Cocbum (1114),
Cﬁen (1096) unb EJIIZatn5 (1163).
39a? ttnan5teIle Crgebnt? ber Cpartatten tit etn recbt gttntttge?
91n ber Cptge (tebt SIierltn mtt 2 614 200 EIJtart tm Sabre 1907, bem
tn tretttcb mettem QIbTtanbe @re?ben mtt 113 540 EDIart tolgt. iben
gertngften 9tetnertrag er5te1te- 1907 bte Cpartaﬁe bon QIItona mtt
16 200 Smart. QIbgeIeben bon bt'eter unb etntgen roentgen anberen
Ctttbten ttnb aber bte 3tetnertra'ge ttberalt to, ba?; )te etnen recbt
angenebmen unb retattb erbebitcben Buicbu‘fg 5ur Ctabttaﬁe Itetern,
mag bteter Sutcbutt nun ttatutarttcb befttmmten Sweden (5. 23.
Strantenpftege, Qtrmenbernaaltung) btenftbar gemacbt (etn ober ben
1) (53?feb1en non Tebon beftebenben Cpart‘aﬁ en 9tt5‘borf unb Ccbbneberg.
__23__
ﬁbebbrben 5ur freten Certttgung fteben. 91nd) tn erfterem Satle
banbelt e? ttcb um QInInrucbe an bte ftc'ibtticben Stnan5en, bte tonft
tn anberer 28ette mttﬁten betrtebtgt merben.
Qtutfatlenb tft bte groBe QEerIcbtebenbett ber §8ertoaItung?;
untoften, bte tn ber cEabelle V auf te 100 Sablungen (Ctne unb
StucI‘5abIungen) berecbnet angegeben ltnb, unb bte )"trb aucb ntcbt
aIIgemetn baburcb ert'tttren, bat; naturgema'B tletne Cpart'atlen teurer -
lotrttcbatten at? bte groBen. Sum groBen ‘letI bttrtten aucb bte llntera
tcbtebe begrttnbet tetn tn ber Qtertdnebenbett ber Drganttatton, obne
bait, man be?balb berecbttgt tft, obne mettere? bte ber teurer totrta
icbattenben Cpttrt'aﬁen at? bte mangelbatteren 5n be5etd)nen. @te
@tnrtcbtung etner mbgltcbft groben Sabl non Stttalen fbrbert 5toetfela.
Io? ben Cparttnn unb tft be?balb tm Sntereﬁe ber tbeaIen gllutgaben
ber Cp'artaﬂe 5n begrttﬁen, rottbrenb tte anbertett? 5mettello? bte
Qternnaltungﬁoften ftetgert. ‘
'7. gamut.
Confttge gemerbttcbe QSetrtebe. '
EIteben ben tn ben bortgen 33aptteln betprocbenen ftttbtttt‘ben
Cetoerbebetrteben ftnben )tcb nocb anbere berfcbtebentter gltrt, benen
aber nur etne gertngere Sebeutung 5ut'ommt. gltut etntge non tbnen
tet tm totgenben btngetoteien. - ~
Qbtrttcbattltcbe, bbgtettttcbe unb bertebr?polttt)cbe Crttnbe ber;
antaﬁten etnen clietl ber Cttibte 93E art'tba I I e n nacb bem 2501::
btIbe ber iBartter Hhalles oentrales” 1) 5n errtcbten unb tn tbnen ben
9Jtart'tbertebr 5n ton5entrteren, ber )tcb bt?ber 5am grbftten 9tacb;
tetle tttr ben Ctraﬁenbert'ebr ant oftenen Ctraﬁen unb SBlttgen ab:
tptette, mo Certc'tute'r unb Stauter ben llnbtlben ber S238ttterung )tcbt?Io? au?getegt toaren, unb bte QBaren nor Ctaub unb Iontttgem
Ctrafgenicbmug oft nur un5uretcbenb getcbtttat 113610611 tonnten. Cte
tiltefte Slttart'tballe tn @ettticbtanb bttrtte bte bon Stet; (etn, bte 1831
'errtcbtet tourbe.
Sbm tolgte 1865 *Ctuttgart, 1879—83 Srantturt a. 93am mtt
2 Sgallen unb 1886 Eberltn mtt 3 @alten. Sm telben Sabre erbttnete
aucb 015m )etne ertte SQaIle, 5n ber bann tn ben Iegten Sabren etne
1) Ccbrtften be? 313. f. C. 23b. 128 C. 123.

___24___
5meite, grtifgere trat. 1900 batte etma ber btitte c(lei! ber @téibte
mit ﬁber 50 000 Qiimvobnem eigene 9Rarftbai‘len. ‘Den ger'mgen
‘llnﬂangﬂen bieieé Q3orgeben abet fanb, bemeift, bag 1908 non a'IIen
beuticben Drten mit ﬁber 2000 @illmobnetn nur 44 eigene mm;
Imﬂen beinﬁen?) iReben ben SJEatfthaIIen Beftanben in ben meiften
@til'bten ﬁbrigené iﬁncbenmtirfte, bie auf bﬁentlicben ‘BIdgen abgee
balten murben, fort, iobaﬁ in biefer Segiehung eine rabil'fale Qﬁeﬂewng
nicht erreicbt murbe. 911d) ber @Imraftet bet iUEarftbaIIen bat ficf) gee
éinbert. sIﬁiifpmnb ﬁe uripriingﬁcf) aIIein ober bod) im meientlicben bem
@etaﬂbcmbel bienten, iinb ﬁe, beinnberg in ben grbBeren @ttibten,
immer mebr ben 'Smecfen beé; @roﬁlmnbeié bienftbar gemacbt mnrben.
Qﬁelfacf) bat man fie 1'0 eingericbtet, ba?; he and) gut @0n1ewierung
nun QBaren (@ﬁblriiume) Benugt merben. 31mg, aIIem iinb abet bie
finangieﬂen Qirgebniﬁ e burcbmeg recht ungi'mftige, unb ift ber ermartete
@emhm Taft allgemein auégebﬁeben. @en meiften mar eé’, iogat
nod) nicbt einma‘l mﬁgﬁd) eine méiﬁige Qﬁerginiung berau§5umirte
icbaften?) (biine giéingenbe Qluénabme machen bie Wiarftha'ﬂen Don
ﬁbangig 3) unb @reében 4), Don benen 1908/09 erftere einen Qﬁetriebée
ﬁberidmfa non 13,8 % unb Iegtere non 5,1 % beg ﬁnlagefapitalé
batte. QIIIgemein mirb man aiio bie EDEarftbaIIen 511 ben unrentabeiften
@emerbebetrieben ber @tfibte recbnen mi'lﬁen.
QBeit beﬂere @rfahrungen baben einige @téibte mit eigenen
slip 0 ti) efen gemacbt, Die in grbBerem Hmfange irei‘licf) 111113 in
.slveﬁen beftehen: @ieéi but ieinen @ﬁnmb in ben eigentﬁmﬁcben
@nng-eﬁionénerbéiltniﬂen, bte im iibrigen @eutfdﬂanb ben @téibten
eine S’Eon-furteng mit ben ptinaten gllpr>tbefen unmﬁgﬁd) machen.
ﬂuégebenb babon, bag Die S°Dnn5eﬁinn gum %etriebe einet QIpDtEefe
fiir ben, ber fie berlieben erba'It, ein grngeé Qﬁeicbenf bebeutet, unb
bag bieieé’» ber @emeinbe, bie burcf) ihre @ntmicﬂung bie @ongeﬁion
bebingt, am ebeften gebiibre, ricbtete bet 233eftﬂi1iicbe @téibtetag
1894 an ben preuﬁifcben Banbtag eine QSetitiDn, Iaut ber Die (8%;
meinben bei‘ SReunergelmng non ﬂpntbefenfongeﬁionen in erfter
1) @135. iBmgi'é 1908/09 .Sfpeft 10 8 252 nad) bem bentfcbeu Zﬁeidﬁ-
ubreB'bud). '
2) $011 ben ﬁBerIiner Slkarftbaﬂen erforberten 1909 Slkarfﬂmfle lll
*JRF. ﬂexicbxtB, QJlqrftgﬁﬂe 1V 42765 9m; 8nfcbnf3, Slhirftfmﬂe X111
03 350 SIRE. gllfrbltﬁ. @Ie arftﬁalIen III unb XII] murbeu 1910 wegeu
furtgefetjter Hnrentabiﬁtiit gefdﬂnﬁen (f. @0111. Tyabrb. 1910 (‘5. 68.
3) EBerecIJnet nae!) ben Qlnguben beg enmmunalenfyabrbucfj? 1910 (5'70.
4) (é'tbenburt.

_25___
Binie beriicfiicbtigt merben ioIItenJ) @iefe ‘Betitimi barre aber, mie
and) iiipilicbe, Die 1898 in Swhen 2) unb 1904 in @adjien eingereicbt
murbe, feinen Qirfnlg. 272m bie'heﬁiicbe ®eiei§gebung geftattef ben
@5emeiiiben bei Weufniigeﬁinnen aIé demerber aufguireten. iTiad)
bem @eiet; Dom 9. 2. 1881 'fomiten ﬂieufnngeﬁioneu unb beimgefaﬂene
Qlpotbefen uacb Qirmeﬁen beg SJiinifieré ben @emeinben iibertrageii
merbeii. 9111f @runb beﬁeii erbielten QSaD Siiaubeim, Unbenbeim,
éﬁ‘lnnbeim, EDiaing; unb Qﬁen'bad; ibre ftiibtiirben QIPDtbQfQl’l, unb
bie bier gemacbten @rfahruiigen maren in gi'mftig, baB ber beﬁiicbe
Banbtag 1901 befcbloﬁ in 8ufuiift bei 9ieufnn5eﬁi0nieruiig non
Qipothefen bie Qjemeinben iii erfter Binie 511 beriicfiicfﬂigeii.
C(greiiicf) Befteben and) in sBreuBeri eiriige ftdbtiicbe QIPDtBQfEH,
in in QIaEfmi, (£51m, SBreélau, @angig, @ortmunb, @Iberfe‘Ib, gran?
furt a. 9312.3) unb imagbeburg, bie iici) aber auf Die $erinrg1mg ber
ftiibtiicben Siranfeiianita‘lteri unb, mie manebmcd Mon ber 92ame
(,ﬂirmenapotfmfe”) 5n erfemieu gibt, ber iiﬁenﬂici) unterfiiigten
QIrnien beicbriinfen miiﬁen. @af; burd) fiiibtiiche wotbefen groBe
@5emirme ergie'lt merben fbniien, bebarf im Sgiriblicf auf bie bobe
@ummen, bie Beim Q§erfauf Don 91pothefenfongﬁionen gelﬁft merben,
feiner meiteren @riirterulig.
EBequeme @iiil'iabmen nermag and) bag ‘Blafat m ei en
abgutnerfen, tneIcbeé bie @tiibte iicI) higher alierbirigé noch nicht
in noilem Wiafge bienfrbar gemacbt baben. @a?» moberne $Iafatmeien
ftammt aué *13er‘1iri, run 1854 ber §Bu®brucfereibeii§er Qitfaft hie @re
Iaubnié erhieIt aui bie @au er non 15 Sabren auf rifferitiicfwii @iragen
unb QBIiigen @iiulen fiir ben 8ette‘Imiicblag 5n erricbten, eine (sir;
Iaubiiig, Die 1855 fiir ibii mmwpoliiierir imb fpiiter bi?» gum Sabre
1880 berliingeri rr-urbe. 92ml) Qiblaui bieier 8eit berpaclﬁete bie
@tabt baé $Iafatmeieii auf Die @auer D011 10 Sabren gegen ben
Sb‘etrag mm 50 000 War}, ber Iiei ber (Srneuerung be?» $ertrage§
1891. auf 255 000 SJiarft unb 1901 auf 40-0 000 SJiurf ftieg. irngbem
bie @tabt Slierliii erfamite, in mie grnfgem Wiaﬁe bag S131afatmeien
Tiir ben Hiiter'iiebmer Iufratit) ift, 1ia1)ni fie e?» nidﬁ in eigerie Siegie,
ionbern nerpacfﬁete e8. Qibnlicb Iiegen bie 28erbiiltniﬁe in Tait alien

1) Qiubemmm ,,®ie Deutfcbe @iiibtenermaitnng” (‘5. 397.
2) @cbrifteu beis‘ 83. f. (5. 21D. 129,24 (‘5. ~15.
3) @cﬁriften be?» ‘8. f. 5, $5. 129,23 @5. 152.
____26_
anberen @tiibten auBer 1) in Cibemi'iig, c{greiburg unb Sliarbenﬁ) bie
e2 in eigene 99egie ﬁbernommen baben. '
2km ben 56 @tiibten, bie an ba?» @tatiftiicbe $abrbud) @euticber
@tiibte bericbteten, riiumten 1904 $raunidﬁveig, gBremen, @ﬁen
unb ﬁigborf bag wiicfﬂagée begin. Qiuﬁteﬂungércw @ritten unente
gelt‘lid) eiii. @ie anberen gogen abgeieben non SBerlin (i. oben)
aué; ber Qierpacfﬁung @emimie Dori 10 Niarf (@uiéburg) big 34 050
sliiarf (‘fyranﬁurt a. Email-i) 3). Tyreiburg ergielte 1904 an?» ieinem
iBIafatmeien 2129 9Rarf4) unb 6bemni§ 5699 Warf. 5)
@cb‘Iiefglid) iei megen ibrer @igenart nod) mit inenigeri QBorten
auf bie ftiibtiicben SBaiifen unb @runbreiitenanftalten
bingemieien. QS‘anfen beftanben 1908 um iii gBreéslau unb Qbemnig. 6)
Shr QInlagefapital Betrug 3 SJiiﬂionen begin. 510 000 EDEarf, unb i115
ibre QIufQaBen nemieri bie @tatuten: ,,25‘e1ebung be?» @arrbeIé unb
%erfei)r<3, @ritgegermabme non @epoiiten, i8ermitt1ung be; @eitv
nerfebré ber iti'ibtiiclwi @aﬁen.”7) @ie Tinan5ie11en @rgebniﬁe bieier
§Banfen iirib namentlici) in (Sbemnitg, recbt erbeblitbe. @ie 23ers
5011111153 beg 21n1agefapita1€> betrug

Sabr in QSreQIau in Sbemnig
' % %
1901 7,08 9,9
1902 6,06 20,8
1903 7,15 28,8
1904 7,55 27,4
1905 ' 6,91 18,2
1906 9,07 24,4
1) Sabrb. "D. @tiibte, 235. XIV @. 201.v
2) @ier aber nur fiir ben $05ir'f ber 1897 eingemeinbeten Srtfcimft
‘Burtfcbeib.
8) a. a. D. (‘5. 204 ff. ($23 erbieIten u. a. Qireéluu 15273 9.1%.,
0115014645 99%., @iil‘lgig 4350 SD31, @reiében 10 629 9Jif.,_‘§)nrtmimb 2047 iDlf,
@i'lﬁelburf 6861 SDPEU Qeipaig 5910 29113, ﬂjiagbeburg 7500 9103, glimm-
1)eim 5700 9Jif., Smiii'uiwn 30500 EUR. -
4) 1908 betrug ber meingeminn 5440 EDIE. (@ibriften b. ‘8. f. 6._
Qib. 129,25 (6. 47. '
5) a. a. Q. s 210.
6) (Smunmualeg ﬁabrﬁud 1908 Q 367: ,,@tiibtifcf)e 28011)? 511 58w?»
Iau” unb (~21)er1miger @tabtban ”.
7) a. a. D. 6. 368.
.__27.__
4 9iecf)t rmerbebIicb iiriD Dagegen Die ©rgebniﬁe Der @runbrentem
banfen u. Derg1., mean maii bei ibnen ﬁberbaupt non @eminnen
reDen miII. 3n 23etracbt fommen Dag am 8. Sliai 1868 erbﬁnete
",ﬁer‘liner Wanbbriefinftitut”, Die ,,65rrmDrenten: unD @bpotbefen’
anfta'lt Der @taDt ‘lDreQDen" (1900), Die ,,‘§)iiﬁe1Dorfer @bpotbefene
anftaIt” 1) (1900), Die -,,65runDreriteriariftaIt Der @taDt QJiﬁlbeime
Sibein‘m), Die ,,@tabtiid)e Sgrwntbefenanfta'lt” iii EZrier, iomie Die
,,C<5taDtiicbeii @arlebnéfaﬁen” in SJieerane ((5.), 9iegen§5burg unb
9ibebDt. Q'Ibnlicbe Snftitute iinD beicbbaﬁen begm. geplant in SliagDee
burg, $~reiburg (2%.), 951113), @ar'lérube, Qeipgig, SJiiincben unD
QBorméﬁ) @ie aIIe berDanfen ibre @iitftebimg Der Qibiicbt Der @ta'Dte
Dem @reDitbeDiirfnié Der @auébeiiger im Sntereﬁe Der i80biiung§¢
13013115) oDer aug anDeren QBri'mDen 6) ab5ube1ien. 21118 Dieiem SJJiite
mirfeii fogjialbolitifcber Emotive erfIiireri iicI) aud) Die a'uf3erfr minimaIen
05emi1me, uriD e23 mag Deébalb giveiielbaft ieiri, 0b man iiberbaupt
nocb berecbtigt iii Dieie @runDrentenanftaIten a'Ié @eluerbebetriebe
anguieben.
8. ﬁapiteI.
@ie @tatiftif Der? Star. unb Des" Sbmmunalen
Ssabrbucbesi
@ie @5egeniiberfteﬂung Der QIiigabeii Deg @tatift. $abrb. unD
Der De§> QDUUITLUICLIQU Sabrb. in Den Drei erfteri FIabeI‘Ien 5eigt eilie
unberbiiltniémafgig groBe Sabl brm 233iDeripﬂieben, meIebe Sbebenfeii
1) Binbemann: ,,233irtfd)aft§>pf1ege” C5. 342 ff.
2) @Immuunaleiﬁ ﬁabrbucf) 1908 6. 368.
3) @tabtiil'igeiger 5ur Rbluifrben Seituug Sir. 250, 1910.
4) Cgurmulm. Sabrb. 1910 6 587.
5) (‘50 5. ‘8. in Qiiﬁelburf, mu Die .gigputbefeuauftalt Die ‘linfgabe
barre, ,,einer noriibergebenben SEreDitnDi auf De1'1'105ebiete Def» QBrimluuqé=
baue'ﬁ abgubelfen. @025 Snftitnt mar uiclﬁ auésfdﬂiefglid) im Slitereﬁe Desﬁ
prinateu Girimbbefiijeﬁ 1111b ‘Bauuuteruebmertmug errirbtet. fen eriter
Sliuie mar e8 5ur Qiefiimpfuug Der Qhumnt gebadgt.” ((50 Slinbemami a.
a. 63. (‘5. 353).
6) @ie EDHiIIJeimer QluftaIt but Dell Qmeef, ,,Die @trafgew unD @Jut
miiﬁeruugébauten, meIcbe irn ﬁntereﬁe Der Sb‘emubuer arrQgufiibreu fiuD,
eiufcbl. Der @traﬁenerrneiterung unb iBiirgerfteiganlageu fmvie Die wirt=
{Chﬂftﬁdﬂ} Biiianimenlegung Der @runbftiie'fe . . . . . 511 erleicbtern, iuDem
ie Den 65r1mDbefii5ern gegen ‘Beiaftimg Der Giruubftiicfe mit EReuten Die
erfnrberlimen 9Jiittel 5ur Q3erfiigung fteIIeu" (@DIIUI'IIIIUIIGQ $abrbucb 1908
@368). QIeDx‘IIicI) Die Qlnitalten nun ‘Erier, *JJieeraue=@., Siegeuéburg u. Siberﬂt.
3
___28__
begﬁglicb Der 9iicbtigfeit Der gebraebten Biﬁern berbnrrnfen unD 5n
einer €Racbpriifnng QInIaB geben miiﬁen. 53eiDer itanDen Dieier
11081201123 groBe @cbrnierigfeiten entgegen, anD mar e6 Deébalb nnr
in reIatib menig {gaben mbgbeb 5a einem poiitiben (Ergebnié 5n '
fommen. @aé erforDerIicbe ilTiaterial mar nnr icinner 5n beicbaiien. _
$n Q3etracbt famen Tiir Die Unterincbungen Die ﬁabreébericbte Der
ein5e1nen iBerfe. 33a Dieie in Sb‘ibliorbefen nirgenDnJo 5n TinDen
finD, unD and) Daé; SQanDeIQarcbib Der (EDIner @anDeIébocbicbnIe,
meicbef» iicf) a. a. Die @ammbing Der %ericI)te ftiiDtifiber 65etnerbe=
betriebe angeIegen iein mgr,- borla'ufig nnr iebr menig anf Dieiem
@ebiete befigt, ift man genbtigt Die @iiIfe Der in $etrad3t fommenDen
QBerfe in QInYDrmi) 5n nebmen unD Dieie am ﬁberlaﬁung Der Sericbte
angugeben. 28enn and) Dem @rincben bon einer groBen QIngabi bon
28er1'fen bereitmiﬂigft ftattgegeben mnrDe, 10 maren Dod) Don einer
gIeicI) grnﬁen 21n5ab1 bon 28erf'en, nnD biernnter IeiDer mancbe recbt
beDentenDe, and) auf Dieiem Qiéege Die $ericbte nicbt 5n erbaIten.
Sen?» maren fie bergriﬁen, teiIé ging iiberbanbt feine Qintmort ein
oDer iie Iautete Dabin, DaB grunDia-gﬁcb an ‘Bribate feine $ericbte
abgegeben miirDen. 91ber ieIbft Die eingegangenen ‘Bericbte boten
nnr 5n einem ClieiIe anéreicbenbeé FliiateriaI, um Die llnterfucbung
Der @ifferengen mit @r‘foIg Durcbfiibren 5n fbnnen. 03.55 bat Die<3 ieinen
05rnnD Darin, Daﬁ Die ﬁBericbte namentIieb in ibrem finaiigieﬂen EZeiIe
recbt Diirftig iinD, 0ft in einem auﬁaﬂigen 65egeniatcse 5a Dem mebr
tecbnifcben ieile, ma?» in Der meift rein tecbnifeben .Beitnng Der 28erfe
begriinDet iein Diir‘fte. ﬂéieie $ericbte gema'bren To in Tinangieﬂer
.Sbiniiebt feinen aa§reicbenDen ﬁberbb'e'i'. @inen groﬁen ieiI Der @cbmD
bieran mirD man and) Der bieIfacb 1) nod) gebanDbabten famerae
Iiftifcben 23ndﬁiibrung 5nicbreiben miiﬁen. @er Qeiter 5meier grbgerer
iBerfe, Der nnter slpinmeié anf Die beabiiebtigte llnteriucbnng Der
@iﬁerengen 3miicben Dem 60m. Sabrb. nnD Dem @tat. Sabrb. um
I'lberlaﬁung Der Slv‘eriebte gebeten nmrDe, antmortete: ,,€79ie in Die
berfebieDenen $abrbiicbern nnD in Die Dieéieitigen Q§errnaltnngée
bericbte iibernommenen 8iﬁern entfprecben Der biéber angemanbten
fameralifiifcben %acbfiibrnng. @ie nmfaﬁen 6etrieb§5ab1ena18
and) %‘ermbgen6aufmenDungen unD finD fiir eine einnaanDfreie
ftatiftiicbe QIrbeit niebt bermertbar. Qhnn . . . . . . . .an mirD Die éBncbe
1) giamentlicb in @5rnf3ftiiDten, iiebe BaDDi-n. ,,§)er anﬁerorbentlicbe
{‘yinan5beDarf Der @tiiDte” C5. 20 f. .
__29__
iiibrnng nacb fauimiinniicben @rnnDfiiben gefiibrt, inDaB icb alio
erft nacb Dem QIbTcbInB Deé lanienDen Sabreé in Der Slage bin, $bnen
5nberlaﬁige QInQaben macben 5n fbnnen.”
irnbbem mar e6 miiglicb an SQanD einiger Der nnierfncbten
Sliericbie ﬁnﬂcbliiﬁe 5n geminnen, melcbe einen gemiiien QEinblicf in
Die (5ntiiebnng Der $iﬁeren5en gemiibren nnD einige %eblerqnellen
erlennen laﬁen. 2lbgeieben merDen fann bnn fleineren llngenanige
feiten, Die ba'niig nnr anf Die 2lDDiti0n abgernnDeter Biﬁern 5nriicl¢
5niiibren iinD. (63.55 banDelt iicb bier um minimale %ebler, Die gegene
iiber Dem 3meci‘e iolcber @tatiitifen nicbi in ib‘etracbt fommen. gm
ﬁbrigen mui'g man, bebnr man bon @iiierengen mirflicb iipreiben
fann, ieftjiellen, ob Die QBerie, noelcbe angegeben merDen inllen,
ancb inbaltlieb Dieielben iinD, maé 3,. 58. nicbt Der c{\yall iii, menn Daé’»
@tat. $abrb. Die iliaiierlieiernng, Dag (5.0m. Sabrb. Die 28aiier¢
iDrDernng gibt. 91ber aucb, mo iolcbe llniericbiebe nicbi beiieben,
iinDen iicb @iiierengen in grober ,8abl. @ine ibrer llriacben iinD
@urcbgangépofien. (5,5 banDelt iicb bier um “Beira'ge, 11m Die in
gleicber QBeiie Die (binnabmen mie Die ﬂnégaben eine?» 28erle§
nieDriger 0Der bbber iinD nnD angegeben merDen, ie nacb Dem man
bei gemiﬁen (binnabmee begin. 9luégabetiteln, namentlicb bei in iiib
mebr oDer Ineniger abgeicblnﬁenen nnD in Der ‘liucbiiibrnng geirennt
bebanDelten ﬂiebene oDer ieilbetrieben, Die druitoeinnabmen beg-n).
§Brntioan<3gaben gibt 0Der Die Sieineinnabmen begin. Sieinauégaben.
Sgat 5. 58. ein @aémeri ans? Den iogenannten iliebenprnbulten ($9063,
ieer n. Dergl.) eine (binnabme Don 100 000 SJJiarf, Der beionDere
QInQQaben iiir Die Qieniinnnng nnD Den $ertrieb Dieier iliebenbroDnite
in Sgbbe Don 60 000 23iarf gegeniiberfieben, in lann man Die (bin;
nabmen mit 100 000 nnD Die ﬁnégaben mit 60 000 93iari' in Qiniaig,
bringen, oDer iicb aui Die Qlngabe De; 9'ieingeminne?» Don 40 000
SJiarf beicbra'nl'en, mnbei Dann Dieier iiiel in Den Sl‘luégaben garnicbt
ericbeint. ﬁn legterem c{galle ieblt in Qinnabmen niie S)Inéigaben
eine @nrcbgangépoft Don 60 000 SJiarf. llmgefebri iii e2 miiglicb
einen iolcben Clitel nnr in Den Qluégaben ericbeinen 5n laﬁen, menn
Dieie bbber iinD alé» Die @innabmen. \Db Die eine DDer Die anDere
SJlietbobe angeinanDt mirD, iii im meienilieben gleicbgiiliig, nienn
man ein eingelneé ﬂBerf im QInQe bat. @tellt man mebrere QBerl‘e
nebeneinanDer, mie Die<3 in einer @taiiftif geicbiebi, in liegt in Dieien
9 . $nrcbgang§pnften eine nicbt unerbeblicbe %§~eblerqnelle, inenn Die
__3()__.
@innabmee nnD 9ln§gabe5ifiern nicbi fnnieqnent naeb gleicben 65rnnD:
fagen gebilDet 1nerDen. 2M?» bat aber, rnie Die nnien fnlgenDen fnegie
ellen (birmittelungen 5eigen, leiné nnn beiDen ﬁabrbiicbern getan.
QieiDe geben balD Die Sieineinnabmen, balD Die Sl.D‘rntineinnabmen
an, nnD inenn bei Dem 28erl'e einer @taDi Dag @iai. Sabrb. in grni'gem
llmfange Sieineinnabmen gibt nnD Da<3 60m. Sabrb. ftatt Defien Die
Qirnttneinnabmen, Dann macben bei einem gleicben QBeri'e einer
anDeren @iaDt beiDe $abrbiicber e5 nmgeiebrt. @elbfi bei Den Qilei'e
tri5iiaiémerlen, inn Daé @iai. Sabrb. nacb Der I'lbericbriit {einer
iabelle nnr Den 9ieingeininn C1115 Dem Snfiallatinnégeicbiiit, Dem
Sliiagagnn nnD Der Qﬁerffiait geben rnill, fiibrt e8 Dieé nicbi. l‘nnieqneni
Dnrcb, inie nnten an einem ibeiipiel gegeigt inirD. @aii Dnrcb eine
Derartig inlnnieqnenie Slv‘ilDnng Der (binnabmee nnD 2ln§gabegiiiern
Deren llirancbbarl'eit 5n %ergleicb§51neclen iiarl beeintracbitigt 1nenn
nicbt anigebnben lnil‘b, liegi ani Der SganD. $5M Die ilbericbniae
berecbnnng anDerieité nnD Deﬂen Qiergleicb iinD Dieie $~ebler nner’
beblicb.
@ine meiiere c{geblerqnellq Der ancb in Dieier 9iicbinng nnter
limiianDen eine recbi erbeblicbe Qiebentnng 5nlfnmmt, iii Die 91b;
grengning Der Slv‘eiriebééeinnabmen nnD Slieiriebéanégaben, inébeinne
Dere aber, erfterer. gIlir'ibrenD im iibrigen Die 3abrbiicber in Den iae
belleniibericbriiien e8 niebt nerincbtbaben, Dieie nacb irgenD einer
9iicbtnng 5n begrengen, int Dieé Daé @tai. Sabrb. in {einer Clabelle
iiber Die @aéinerl'e in grneierIei 9iicbinng, inDem e2 Die §Berecbnnng
Deg iiir niientlicbe ib‘eleucbtnng nnD @elbfinerbraneb abgegebenen
©aie§ nnD ierner Den 21nla§ Der Qiinnabmen an?» ,,8inien, SJJiieien
n. Dergl.” anéicbliegi, rnaé Daé’» @tat. 3abrb. Denn ancb, inlneit iefie
geiiellt rnerDen lnnnie, ifnniequent Dnrcbiiibrt. Sm i'ibrigen nebmen
ancb begiiglicb Der 2lbgren5nng Der Qieiriebéeinnabmen nnD 2w?”
gaben Die Sabrbiicber ielbfi in Der n'amlieben iabelle recbt rneebielnDe
@iellnngen ein,1nie Die nacb’fnlgenDen ipegiellen @riirternngen 5eigen.
@ie (binnabmen ané ginien, SD'iieten n. Dergl. inielen bier eine ber;
nnrragenDe 9inlle. @ie i‘grage, nb iie nnter Die ‘Iﬁetriebéeinnabmen
5n reebnen iinD, fann man an iicb innbl nericbieDen beantrnnrten.
28in man aber Den ané @innabmen nnD QInQQaben berecbneien
l'lbericbnb in iBegiebnng bringen gum 2lnlagefalpital, in InirD man
be bejaben miiiien. Qierlangen mn‘ﬁ; man aber ancb bier ani ieDen
gun Die lnnieqnente @nribiiibrnng De?» einmal eingeieblagenen
__.31__
QBegeéé. ®eiebiebt Die?» nicbt, in lnirD Der Qbert Der 2lngaben ielbft
ininnbl rnie Der De?» ané ibnen berecbneten llbericbniieé namentliib
5n Qiergleicbégrnecl‘en beeintracbtigt. @aéi gilt and) iiir alle anDeren
$§ragen Der 9lbgren5nng, Deren bei Der (Eingelnnterincbnng nncb nere
iebieDene 5n erinabnen iinD. ﬂllgemein iei bier nnr nncb bernnrge:
bnben, Dab e6 alé nringjiniell nnricbiig angeieben rnerDen mnié, inenn
Qierninnnnrtrage anéé Dem Qinrjabre, @ninabmen an; Dem 9ieierne¢
fnnDé, reine S’Daiieneinnabmen, Die 5. 23. in einem Sabre Dnrcb %er:
minDernng De?> @ebitnreni'nntné entiianDen iinD, nDer gar S‘Dapitale
erbnbnngen nnier Die Qietriebéeinnabmen gerecbnet rnerDen, alleé
%ebler, Die in @iiigelia'llen nnrgelnmmen nnD nnien belegi: iinD.
@benin iii e8 m. 03. ialicb, rnenn 5n Den élietriebéanégaben iHbgaben
an Die @iaDiiaiie, mbgen Dieie ancb Dnrcb Den @iat nnrgeicbrieben
iein, nDer an‘BernrDeniliibe QIbiiibrnnQen an eine §Banrecbnnng Deg
28erle§ gegiibli rnerDen. QInDerieitsS iii e8 aber ancb nicbi 5n billigen,
inenn 2ln§gaben iiir ,ﬂienanlagen”, Die 3. 23. in Der @rnenernng
icbaDbait gernnrDener $.eleinnmaiien beiieben, nicbt anigennmmen
_ rnerDen. Qlbnlicbe gllbgre115nn9€>ieblier iinDen iicb and) bei Den glib;
gabemengen nnn SIiiaiier nim. Sieben Den beiprncbenen %eblere
qnellen iinDen iieb nncb anDere, Denen ab_er nnr SBeDeninng iiir Den
(Aiiiigeliall 5-nfnmmt, nnD iiir Die Deébalb an? Die nacbfnlgenDen ipe;
5iellen Slliitteilnngen nerinieien rnirD.
%ragt man iicb, rnie e2 fnmmt, Dab Die geriigten $§ebler nicbt
nermieDen innrDen iinD, in 1nirD man Den @rnnD im ineientlicben
5n incben baben einmal in Der nieliadb angernanDten fameralifiiicben
%ncbiiibrnng, Inelcbe inie Der nben miigeteilie *Briei begengt, eine
l'lberiicbt ieDenTall?» ericbinert, inDann, biermit teilineiie iicberlicb in
engem 8niammenbang fiebenD, in Den iiir Die iraglicben glneele
mangelbait anégeftatieien sliericbten nnD icbliefglicb Darin, Daﬁ bier:
Dnrcb nielleicbt mit neranlaBt Die C.i"abellen Der $abrbiicber nieliacb
baiieren ani <$racbiebngen, Deren éé‘eantrnnrinng leiibt ininlge miB;
nerftanDener %ragen nDer nninrgiiiltiger 9ln§iiillnng Dnrcb nne
geeignete 9lngeftellte 5n $~eblern iiibrt.
Sm nacbinlgenDen iii Dag @rgebnié’» Der @ingelnnterincbnngen,
inlneit Diefe 5n einem brancbbaren 9ieinltat gefiibrt baben, iniebere
gegeben. SeDer @5rnnne nnn Sllierfen iii bierbei 5ur beﬁeren I'lber:
iicbt eine inrge CEabelle nnrauégeicbirl‘t, in 1nelcber Die beiprnrbenen
9lngaben entbalien iinD.
___32__
28aﬁerinerfe 1907/08.


Igjeimgmt’ $eirieb2= %‘eirieb.~%=
@iaDte glgffg'efgﬁt'g einnabrnen 1)] anﬁgaben
in 1000 Chm in 1000 2111. in 1000 9RD
~ @tat. Sabrb.
5301111 . . . . . . . . . . . . . . . . . . . . 2 840,6 439,655 137,838
6511135626, 2 889,5 418,0 114,7
(Srinrt . . . . . . . . . . . . . . . . . . . 2 528,8 385,844 104,375
8 919,1 420,12) 157,1
- (Eiien .................. ..- 12 115 1080,218 519,951
15 055 14797 518,0
@1101: a 8 ........... .. 5 350 , 574,750 220,712
- 5 859,7 574,8 220,7
Sgambnrg . . . . . . . . . . . . . . .. 48 165 4101,878 1982,634
48 155,1 4442,1 8805,98
@annnber 3) . . . . . . . . . . . . .. 12 162 1543312 362,481
8 598,8 1448,1 475,8
8 568,5 95,8 15,7
3136105005811 . . . . . . . . . . . . . . . 4 326 943,568 243,157
4 825,8 945,2 288,7


@ie in nnrfiebenber aiabelle angegebenen 8iffern fiir Die 28aiier=
mengen iinD nicbt nergleicbbar, Da Daé @iat. Sabrbncb Die ,,(85e¢
iamiinaﬁerlieiernng”, Da?» 010m. $5abrbncb Dagegen Die innbl an§nabm§=
lné biernnn mebr nDer rneniger abineiebenDe ,,$abre5f0rDernng,,
angibi. @aB trnigDem teilineiie iibereinfiimmenDe 8ablen anitreten,
mnBie 5n einer llnterincbnng Der 9iicbtigleit Der 2lngaben iiibren.
SZeiDer inar Daé Eljiaterialin Diirftig, Dag Dieie llnterincbnng 4=) nnr
ani Die @iiiDte: $80nn, Céirfnrt, @ﬁen, Sgannnner, @alle nnD QBieéﬁ
baDen anégebebnt inerDen fnnnie. 3n iBnnn nnD 03rinrt rnicben
1) Brnar iprecben beiDe ﬁabrbiicber nicbt nnn $eirieb>8einnaln-nen
innbern einfaeb non @innabmen. @515 jene a'ber QUl'lQillt iii-1D, 3eigi fiir
Daf» @iai. ﬁabrbneb Die @pe5ifi5iernng nnD Die 2ie5eicbnung Der @iﬁereng
5iniicben @innabmen unD ‘Beiriebgauéigaben 111:3 ,,‘lietriebgiiberfcbufg”, fiir ba?»
@0111. Sabrb. ebenfn Die lleberfcbnigberecbnung nnD Der ﬁiergleicb n'iit Den
entfpreebenDen iabellenfpalten bei Den Qiaémerfen.
0,3111 @0ni.{§abrb. ifi Die B'iﬁer niit 430,1 angegeben. ($38 ift
Dies? aber ein lbrnelfebler, Deﬁen geftftellimg Durcl) SBerecbnnng anQ anDern
8iﬁern inbglicb rnar. @ie nben eingefegte Biﬁer 10irD Dnrcb Den $abre2=
bericbt beftiiiigt.
3) @ie 8iﬁern Deg @0111. Sabrb. geben getrenni Die 2Ingaben fiir
Dag ©runD= nnD Daéi {§~lnfnnaﬁerrnerf.
1) Siaitb Den 23ericbten Der betreffenDen QBerfe.
__433__
Die 8iﬁern non einanDer ab, nnD Die llnterfcbiebe entinrecben Denen
non Sieiernng nnD {’yijrDernng. QlnDer6 in Den iibrigen @ta'Dten,
rnie ancb in @ambnrg, fiir Deﬁen 28ml mir aber eine iliaebnriiinng
nnmiiglidb rnar. 3n @alle/CCB. gibt and) Der éBericbi l'eine nnn Der
ﬁBaﬁerl efernng abrneiebenDe $36rDernng§5iﬁer an.1) 2lnDer§ aber
28ie§baDen nnD iiir Daé 6§rnnDrnaﬁerrnerl @annnber. {air beiDe
28erfe gibt Daé 610m. 3abrbncb {einer QIbiicbt entgegen Die Qiefernngée
5iﬁer an @telle Der bbberen ‘fybrbernngégiﬁer. @ie 2lbrneicbnng
iii freilicb in beiDen c{yiillen eine relatin nnerbeblicbe. 3n (Eﬁen gibi
Daéi 60m. $abrbncb ricbtig Die c{’yiirbernng, rniibrenD Dag @tat. 3abr¢
bncb im @egeniatg, 5n innit bier nnr Die cbm angibi, Die gegen 23e;
5ablnng abgegeben rnnrben iinD.
Qiei Den @innabmen nnD 2ln8gaben iinD Die llnterfcbiebe im
ineientlicben begriinDet in Der nericbieDenen aber ancb, rnie bier iicb
3eigen rnirD, nicbt innieqnent Durcbgeiiibrten 2lbgrengnng Der SBnfien,
Die 511 Den 23etrieb§einnabmen begin. éBetriebéanégaben gerecbnet
rnnrDen. Sn $0nn 2) 5111151511 iiibri Das"; 010m. Sabrbncb aléi "(ﬁne
nabmen” nnr Den ané Dem Qiiaiiernerbrancb ielbft iicb ergebenDen
€8etrag an, rna'brenD Daé @tat. Sabrbncb rnnbl mir Siecbt anBerDem
nncb Die Qiinnabmen an?» 9‘inbrfirangmieie, iliiaiierleiinngéeinricbﬁ
inngen, 8inien, SJiieten nnD iBacbien ininie an?» (5110?» iiir >1lltmaierial
einrecbnet. EBieie Eliebeneinnabmen betragen 5niammen 26 642,92
iDiarl D. i. Die @iﬁereng, 5minben Den 6innabmen Der beiDen 3a r4
bi'nber?) 23ei Den ﬂuégaben ieblt im 60m. $abrbucb nnD mnBie in
ibm feblen Die Der @innabme an'é; iiliaﬁerleitnngéeinricbinngen ent:
inrecbenDe QlnQQabennTt mii 5974,13 SJiarl' QInBerDem bat Da?» @tat.
$abrbncb nacb Dem S.80rbilDe Deé Sabreébericbteé im 6§egenia8 gum
60m. $abrbneb in Die 2lnr°>gaben einen ilieirag 0011 17 116,88 Sliarl
anigennmmen, inelrber Den 6§egenlnert iiir Den 28aiiernerbrancb
Der @taDt Darfiellt, alin geiniiiermaigen eine 2lbgabe an Die @taDt
iii, beitebenD in Der fniienireien QIiaiierliefernngﬁ llmgefebrt bei
Den Céiinnabmen De?» @ambnrger QBaﬁerinerfé. QBiibrenD in 8Bonn
Daéi @tat. Sabrbncb Den Sr‘reié Der C5innabmenniten ineitergiebt, int
e9 bier Daé 010m. Sabrbndb. Qibgei'eben 5) nnn Den Qiinnabmen iiir
1) @aiiielbe fnnnie ancl) ,iiir Qiarinen feitgefiellt merDen.
2) %eitgeftellt nacl) Deni .‘Betriebébericbi.
3) 439 655—26 643:413 012.
1) 187 888 _- (5974 + 17117) = 114747.
5) Siacb einer QJiitieilnng Der @irei‘tinn.
___34_
Die Qiiaiierrnerie Sllinnrbnrg nnD %infentniirDer mit 8689— 9Iliarl'
nnD Dem QBerte Deé an Die fiaDtiicben QBarmbabeaniialten 1) gee
lieierten 28aﬁeré; mir 103776 91151-1, inelcbeé Daé @tat. Sabrbucb
nnberiicl'iicbtigt ltiBt, recbnet Daé (610m. Sabrbncb nnter Die @innabmen
ancb nncb einen 11116 ,,2lrbeit iiir iremDe 9iecbnnng” er5ielten Qietrag;
0011 227 788 illiarl', Der ebeniallé beim @iat. $abrbncb ieblt, alin
nmgelebrt, rnie e9 Die $abrbiicber bei a'bnlicben SJ30fien in 230nn
gemacbt baben?) 8eiDer rnar mir nicbt Daé nnirnenDige ElJiaterial
5nganglieb, nm Die bei Den 2ln6gaben befiebenDe @iifereng auigni’
fliiren.
Qlncb bei Den Cbiinnabmen 233ie§baDen§ 3) entbiilt Daé 010m. Sabre
bncb einen SlSnfien, Der im @iat. Q'abrbnrb ieblt, na'mlicb 6019,95 EJJZari',
Die einem iiir Emaicbinen, SZEnmben unD @eﬁel beftebenDen 9ieierne¢
innDQ entnnmmen iii, ein SBnfien alin, Der aléi’Céntnabme ané; Dem
ﬁéermbgen (Sieierneinnbé) 5n llnrecbt 5n Den (éiinnabmen Deé 3abre9
gega'blt iii. 23a?» in iBerbinDnng mit einer $nrcbgangénnii non 4417,07
Sliarf (D. i. aneb Die 2lnégabenbiﬁeren5) erfliiri Die §8ericbieDenbeit4)
3n @rfnrt mni; ancb 5ur @rfliirnng 5) Der QBiDerinriicbe 5nniicbft eine
@nrcbgangépnfi eliminiert rnerDen im $etrage 0011 34 287 iUiarf,
D. i. Die 03innabmeDifieren5 6); Dann bleibt im 010m. $abrbncb nncb
ein iUiebr an 9ln€sgaben in Sgiibe 0011 28 456 illiarl. 056 iinD Die?» 2013;
gaben fiir ,,Slienanlagen”, Deren S30ften an; Dem 9‘iiicflagefonbéi ‘
beftritien iinD. @ieiem mnBten nacb Dem @anébalténlan 40 000
SJﬁarf giigeiiibrt rnerDen, nnD biernnn‘ rnnrDen Die Eiienanlagen be;
5ablt, rnelebe in llmlegnng non 9’inbren, fleinen @rineiternngen,
@rnenernng icbaDbaiter ieleinnanlagen nnD Dergl. befianDen.7)
QBiibrenD bei @annnner 8) Die @innabmen nnr eine minimale'
Ebiiiereng, aniineiien, Die iicb Dnrcb Die 2lDDitinn abgernnDeter Biiiern
im 60m. Sabrbncb erlliiri, 5eigt iicb in Den 21n6gaben ein recbt erbebe
licber llnierfcbieD, Der rnieDer in Der nericbieDenen 2lbgren5nng Der
,,%etrieb6an§gaben” 5n incben iii. 118 827,53 211511, rnelcbe an Die
1) Linterfteben Der Beiinng Deg QBai-iermerﬁ.
2) 4 101878 + 8689 -|- 103 776 —|- 227 788 = 4442 131.
3) ﬁeitgeitellt naeb Deni 23‘ermaItnng2bericbt nnn 1907.-
") 943 568 + 6020 - 4417 = 945 171; 243 157 - 4417 = 238 740.
5) STftQGﬁGHf nacb Dem 23ermaltrmg3berirbi 0011 1907.
“) 385 844 + 34 287 = 420131.
7) 104 375 -|- 34 287 ~|- 28456 = 167 118.
8) Qiufgefiellt nacb Deni 23eirieb2bericbt nnn 1907/08.
.__35_
23anrecbnnng abgefiibrt rnnrDen 1), nnD 10 242,79 iUiarf ,8nicbnf3
Deé 63mnDinaﬁerinerl'e6 gum fgluﬁrnaﬁerinerf, 5niammen 129 060,32
2Jiarf recbnet Da~3 6.0m. ﬁabrbncb 5n Den 23etriebéanégaben, Daé
@tai. Sabrbncb aber nicbt?) @ierbei inll nicbt nnerrna'bnt bleiben,
Dag Die 8niebnng De?» 23etrage§> nnn 10 242,79 2Jiarf Bnicbuﬁ 0823
@5rnnbrnaﬁerrnerl'é an Daé %lnﬁinaﬁerrnerf ancb Dann einen 0ﬁen§
innbigen c{yebler Darfiellt, rnenn man beriici‘iicbtigi, Dafg Dag 60m.
.i‘g’abrbncb Die beiDen 2Berfe geirennt anffiibrt?)
3n (5511 en“) iinD Die @innabmee2lngab en Deg 010m. Sabrb. nnbalibar.
28tibrenD Dag"; @tai. 3abrbndb bier in genaner Hbereinftimmnng mit
Der 65erninn: nnD 23erluitrecbnnng iiebi, gibt Daé; 60m. 3abrb. Die
reinen Raiieneinnabmen Deé; ﬁabreé, obne 5n beriicfiicfnigen, Daf;
bierin 5. 23. 386 567 212511 Qapitalerbbbnng 5) nnD 9226 EDiarf, Die
Dnrcb 23erminDernng Der. @cbnlD non @ebitnren eingegangen iinD,
fieclenﬁ) €®ieier C{gebler iii nm in fraﬁer, Da Daéi 60m. $abrb. Dieie
@aiieneingangégiﬁer ancb Der I'lbericbnﬁberecbnnng 5ngrnnDe
legt. 28ie Die nm etina 1900 illiari' abineicbenbe 2ln§gabe5iﬁer De;
60m. Sabrb. giifianbe lam, lief; iicb nnter Dieien llmfia'nben nicbt
feftftellen.
1)‘ 656 mnrDen ini gangen abgefiibri an Die 23anrecbnung 186 827,53
glib, ninnnn aber 68000 298?. an>3 Deni in Den @innabnien nicbt entl)al=
tenen lieberfcbuf; De?» 230riabre8 ftannnten.
2) 362 481 -|- 129060 = 491541.
3) 233erDen Die 1024279 2Jif. Dem @hrrmDmaiiermerf belaftet, f0
innBte D118 ﬁlnfgmaﬁerrnerf Dafiir er’fannt merDen. $23 biiiten Dann alfn
Die (~5innal1'nen Deg $I11Bmaﬁermerf?» Dieie @nnnne enibalien niiiﬁen, 101123
aber in 60111. ﬁabrb. niebi Der gall iii. @010nnnte8, Dai; in (50111.
3abrb. Da2°~ @rnnDmaﬁermerf infnlge Der $elaftnng inn Den genannteu
2ieirag mit einem uni Diefen nieDrigeren Hebericbni'g abfcbliefgt, nnD beim
Yglnfgrnaﬁerinerf anﬁerDem nucb Der gleicbe 23etrag aI§~ ibefiait eri'cbeint.
Siiinint man beiDe 253erfe 5niannnen, 1'0 iii Degbalb D113 (8eianitreinltat
nm 1024279 5118?. 511 nngiinftig.
1) $eftgeftellt nacb Deni ﬁabreébericbt.
5) 23011 Der @iaDt gegebene?» @arleben fiir @runDerwerb, Wen:
anlagen nnD Sienbefcbaﬁnngen.
6) 23ergleicbe Die 2lngabe iiber Dag 65a310erf @iien (i. 11.)
__36__
63a8n>erfe 1907/08.


2lbgegebene I,,23etrieb;~3= ,,23eirieb§:
@tdbtc Giaéirnenge 0111116221611” 1) ans3giiilben” 1)
1000 cbm 1000 2111‘. 1000 2311.
@tai. Sabrb.
23min . . . . . . . . . . . . . . . .. 7 667 1068 879
930111- 89111‘5- 7 557,8 1888,8 778,1
60111 . . . . . . . . . . . . . . . . . . . . 46 759 6702 4121
45 759,1 ' 5785,2 4121,2
ﬁiien . . . . . . . . . . . . . . . . . . . . 12 748 1741 1222
13 109 2523,3 1222
Sqalle 6. . . . . . . . . . . . . . . . .. 10 344 1658 1091
Y 10 84.4 1845,6 1091,1
281mm: . . . . . . . . . . . . . . . . .. 9 556 1512 866
5 9 555 1788,.5 1000,5
2131e8baDen . . .' . . . . . . . . . . . 11 739 2054 1515
11 738,6 1885,6 1225,6


Sbie abgegebene @aémenge iii bei Den in nnritebenber C£abelle
anigeiiibrien 28erien nnD in ancb bei iaii allen anDeren 23.3eri'en
(i. EZabelle II) iibereiniiimmenD angegeben. @ine 2ln6nabme macbt
nnn Den bier anigeiiibrien nnr 05iien. 2iaeb Dem $abre6bericbt ieineg
2Beri'e9 iii Die nnm 60m. $abrb. gegebene giiier ricbtig. @aé @tat.
ﬁabrb. Dagegen gibt im 28iDeriprncb 5n Der l'lbericbriit Der 2abellen¢
inalte (,,65eiamtga§abgabe”) nnD im @egeniat; 511 Den 2lngaben bei
Den anDeren na'ber nnterinebten @ta'Dten nicbt Die @eiamtgaéabgabe,
innDern nimmi nnn Dieier Daé 5n 8encbte, S‘iraite nnD Sgeigginecien
an Die iitiDtiicbe i8erlnaltnn'g gelieierte 6§a5 anQP) Sgiiniiger iinD Die
c39iiieren5en bei Den 23etrieb§einnabmen nnD 2ln9gaben. @ie 8iiiern
iiir Die @innabmen iinD aber icbnn grnnbitiglicb unnergleicbbar, Da
- Daéé @tat. 3’abrb. angbriiellicb anéicblieiit Den 28ert Deg iiir Diientlicbe
23elen1btnng nnD @elbitnerbrancb nerrnanDten @aieé. 21nd) innit
neriucbt Dag @iat. 3’abrb. bei Den 65a§rnerfen Den S3rei5 Der 23e¢
triebéeinnabmen grnnbiiiglicb 5n begrengen, inDem e9, inie icbnn
.1) @0 D113 (Sum. Sabrb. 23113 @1111. ﬁabrb. ipriibt einiaeb nnn
@innabmen iinD 21112gaben; Dai; Dieie?» aber Da§3ielbe Darnnier neritanDen
iniiien will, beineiit Die @pegiiigiernng nnD Die 23e5eiel)nnng Der @iiiereng, al3
,ﬁrniiniibericbnig“.
2) 12 7,47 768 + 361922 = 13 109 690.
__37__
nben bei Den .illaemeinen 65riirternngen erina'bnt innrDe, Die @ine
nabmen ans"; ,,8inien, Wiieten niin.” anénimmt. @nineit ieitgnitellen
inar, bat Da?» @tat. Sabrb. Dieé ancb fnnieqnent Dnrcbgeiiibrt. Sn
@alle 1) 5. 23. beirngen Die. @innabmen ané biientlicber 58elenrbtnng
122 386 211511, inlcbe ané Sinien 3021 231mb
11m Dieie 23etriige iinD Die 63innabmen Deé; @aéinerf?» Sgalle im
@tat. Sabrb. nieDriger angegeben alé im 610m. Sabrb. @ie nncb
nerbleibenDe @iiierengj 0011 61 252 iDiari' eri'liirt iicb DaDnreb, Daii
Dag 60m. Sabrb. 5n llnrecbt nnter Die 23etrieb§¢6innabmen Deé
Sabreé einen ané Dem 23nriabr i'ibertragenen S‘ieitQeininnrecbnetE)
Den e6 innit 5. 23. in 2Bie3baDen abgeiegt bat. Sn (5.0m 3) liegt Die
23iiieren5 allein in einer @innabme ané SBiicbten nnD éDiieten in @Dbe
nnn 33 808 2125114) (ﬁne CDiiiereng, al§ Snlge Deé 2ln§icblniie§ Deé
iiir Diientlicbe $elencbtnng nnD @elbitnerbrancb nerinanDten @aieés
ieblt bier, Da Dem Sabreébericbt nnD ieiner @eininne nnD 23erlnite
reebnnng inlgenD Daé 60m. Sabrb. bieriiir ebeniallé ieine 28erte
eingeiegt batn nD ininlge ieblenDer 2lngaben Deé 28er1e3 innbl ancb
nicbt einiegen fnnnte. @aranf», Dai; Dieie @aéabgabe ea. 14,2 % Der
@eiamtabgabe anémacbt, erbellt, inie iebr ein 23ergleicb 3miicben
Den 65rgebniiien Der eingelnen 2Berfe Dnrcb inlibe llngenanigt'eiten
beeintra'cbtigt inirD.
@aé 5eigt ancb %nnn5), inn im (53egenia8 511 6515 Der relatin iebr
erbeblicbe$etrag nnn 214 184 Slliari‘ iiir @elbitnerbraneb, iiiie'ntlicbe
23elenebtnng n. Dergl. in Der 05innabme5iiier Deéi 60m. Sabrb. inieDer
entbalten iit, iniibrenD er im @tat. Sabrb. Deiien 63rnnDiat§ ente
iprecbenD ieblt, ebenin inie 9442 Sliart 03innabmen ané S.‘iSiicbten,
SJJ‘iieten nnD ,Sinien. @ie bier nncb nerbleibenDe ibiiiereng- eri’ldrt
iicb ang @nrcbgangénniten in Sgtibe 0011 91 296 EDiarf 6). Sn ZiSIanen
beiinDen iicb nnier Den @innabmen, Die Da§ 60m. Sabrb. iiberein¢
itimmenD mit Dem 23ericbte De?» 28erfe§ angibt, 107 686 Sliarf an?»
Diientlicber 23elenebtnng nnD @elbitnerbrancb. @ie nncb nerbleibenDe
Sbiiiereng, erl‘la'rt iicb einmal Dnrcb eine fleine llngenanigl'eit im
@tat. Sabrb. bei Den innitigen 65a9einnabinen (1 292 000 EUEari itatt
1 293 688) unD an§ einer fbnrcbgangépnit, Die DaDnrcb entitanDen
1) Seitgeitellt nacb 09111 23erinaltnng§bericbt 1907/08.
2) 1 658 923 —i- 122 386 —i- 3021 -i- 61 252 = 1 845 582.
3) Seitgeitellt nacb Deni Sabre§bericbt
4) 6 702 384 -|- 33 808 = 6 736 192.
5) Seiigeitellt nail) Deni %eirieb.~3bericbt.
6) 1 068 346 + 214184 + 9442 -i- 91 296 = 1 383 268.
38 4;-
iit, Dai; man bei Den gJiebeninrnbnften nnr Den iﬁeingeininn in .Die
(biinnabmen geiegt bat. @ie 23rnttneinnabmen betrngen nacb Dem
23ericbt 331 751 SJiart nnD iinD im éiat. Sabrb. angegeben mit rD.
220000 Sljiari. 69 iniiren biernacb 111 750 2Jiari bei Den (5innabmen
nnD 2ln6gaben Deé @tat. Sabrb. 311515515581) Sn QEiien betragen nacb
Dem23ericbt Die 65eiamtbetrieb3einnabmen 1 936 853 211511. .igierin iit
Die biientlicbe 23elencbtnng entbalten. CDer 2Bert De?» bierii'ir ge;
lieierten ($5aie5 iit ans? Dem 23ericbt nicbt 5n erieben, berecbnet iicb
aber ani 90 000 211511, inenn man Die 65a§einnabme5iiier Deé @tat.
Sabrb., Deren Siidbtigi'eit nnranégeietgst, mit Der Deé 23ericbt§ ber:
gleicbt. 23eriiciiicbtigt man Dieie @umme, in bleibt nncb eine @iiiereng,
nnn 106 000 2)iari' 5iniicben Dem @tat. Sabrb. nnD Dem 23ericbt,
Die ibren 65rnnD Darin bat, Daig Dag @tat. Sabrb. Die 63innabmen
ané Den 2iebennrnDni'ten nm Dieien SBetrag 5n nieDrig angibt, niime
licb ani 90 000 itatt ani 195 853 iDiarf. 23a Dieier $etrag icbnn Den
Sieingeininn ané Dem 2iebeniarnDni'tengeicbiiit Daritellt, mni3 Die
2lngabe Deg @tat. Sabrb. nnricbiig iein. @ie 63innabme5-iiier Deg
60m. Sabrb. iiir 6iien iii nb'llig nnbrancbbar, Da Dieieé bier inie beim
233aiieriner1 6iien ali’» ,,23etrieb€>einnabme” Die S’Daiieneinnabme
De§ Sabre?» angibt, innrin aneb bier n. a. eine Ki‘apitalerbbbnng
entbalten iit. -
EEie 23etrieb§an3gaben iinD iiir 60ln, .iQalle'nnD @iien nnn Den
Sabrbiicbern nntereinanDer nnD mit Den 23ericbten iibereinitimmenD
angegeben. Sn Den iibrigen @téiDten ineieben iie nnneinanDer ab.
216ill man bier Die 2lngaben nergleicben, in mnB man in eriter .8inie
Die 23nrcbgang3i10iten beriicliicbtigen, inelcbe bei Der llnterindbnng
Der ‘(éiinnabmegiiiern ieitgeitellt innrDen. Sn 230nn iit Deébalb Die
2lngabe De?» @tat. Sabrb. 5,11 erbbben nm 91 296 illiarf, ierner aber
ancb nm 59 375 iUiari', 2) niimlicb nm Die 9‘ni1en Der llnterbaltnng
Der niientlicben 23elencbtnng, Die Daé @tat. Sabrb. in Den 6innabmen
ia ancb nicbt beriiciiicbiigt. Sit e3 Deébalb berecbtigt, Daii Da<3 @tat.
Sabrb. Dieie llnfniten nicbt nnter ieine 23etrieb€>an§gaben recbnet,
1) 1733 127 -— (107686 —i— 1,6 + 111750) : 1512003. (58 iit bier
anggegangen 0011 Der genanen @innabnie5iiier Deg 23ericbt~3. @ie 2'lngabe
Der (550m. Sabrb. ineiebt etrna?» ab, 1053 aber ani Die 2lDDiii0n abgernn=
Deter Biiiern giiriiefgiiiiibren iit.
2) 60721 211i. abgiiglieb 1346 9.7111, Die iibnn in Den ©11r1bgang8=
pniten entbalten iinD.
i0 iii Dneb anDerieité Dieier @tanDinnnft nicbt innieqnent Dnrcbge;
iiibri. Sn 65iien, 60m nnD .igalle a. 3,. 23. iii ein inlcber 271b5ng
nicbt gemacbt, nbinnbl er inenigitené bei Den beiDen eriieren @tiiDten
ani @rnnD Deg 23ericbte6 in Demielben limiange inie in 23mm miig;
licb geineien iniire.
23eriicfiicbtigt man in 23min Die ern'rterten @iiierengen, in ergibt
iieb iiir D116 @tat. Sabrbncb nnn einer fleinen llnitimmigi'eit abgeﬂ
ieben ein 2ln6gabenmebr in .sliiibe nnn 250 000 2ﬁarb1) Dem 23etrage,
Den Dag 26erf an Die @taDti'aiie abgeiiibrt bai. @ai; Dieie in Den
2lnéigaben De~3 @iat. Sabrbncbeii entbalten iein miiiien, beita'tigt
Der Dnrt nnr ani 189 000 9Jiar'f angegebene l'lbericbnii. @rbiibt man
in 23lanen Die glliiégabegiiiern Deé @tat. Sabrbncbe?» um Die ieit:
geitellte @nrcbgangépnit nnn 111 750 2Jiari', in bleibt immer nncb eine
‘Qiiiereng, nnn 23 000 2.71mi, Die nielleicbt in Den llnl'niten Der Diient:
lieben 23elenrbtung begriinDet iein mag; eine iicbere Seititellnng
nDer gar eine recbneriicbe Siliirnng geitattet Der iiniierit inmmariicb
abgeiaﬁte 23ericbt niibt. 2205b ineniger inar e5 trng eingebenDen
@inDium3 Deé anéiiibrlicben 23ericbt~3 miiglicb eine @rila'rnng 5n
iinDen iiir Die @innabme; inie 21116gabe5iiiern, Die Dag @tat. Sabr;
bncb itir 2Bie6baDen angibt. €39ie 21ngaben Deé 60m. Sabrbncbeé
itimmen bier mit Dem Der (56111111111 iinD 23erlnitrecbnnng iiberein, Die
@innabmen nacb 21bie15ung eineé @eininniibertrageé ané Dem 230r:
iabre in @iibe nnn 45 950 ﬁliari'. 2lniia'llig ericbeint, Dai; trot; De?»
2lu1°~ieblniie§> Der b'iientlicben 23elencbtnng, ininie Der @innabmen
an; Sinien 2c, 10116 and) bei 28ie6baDen Durebgeiiibrt 3,11 iein icbeint,
bier Die 2lngabe De; @tat. Sabrbncbeé’» iiber Die Sb‘etriebéeinnabmen
bnber iit nnD ebenin Die iiber ﬁnégaben. 2151 einer geiniiien 2l6abr: I
icbeinliebieit lieigen iicb 5inar einige llnricbtigfeiten in Den i®etaile
5iiiern Des? @tat. Sabrbnebeé ieititellen; Dieie Seititellnngen iinD aber
in nniirber nnD iiir Die 2lnifliirnng Der @iiiereng in inenig anéreiibenD,
Dai; ani ibre EDiitteilnng nergiiebtet inirD. 23a eine 21151151111113
trng Deg genanen nnD ineitgebenDe @negiiiiaiinnen entbaltenDen
23ericbte§ nicbt miiglicb iii, in inirD man fanm iebl geben, inenn
man annimmt, Dai’, in Den 2lngaben Deg @tat. Sabrb. c{iebler
entbalten iinD.
1) 879 + 91 + 59 _- 250 = 779; 6511-1.$i11)1:n.; 778,1.
-4n-'
(‘Zleftriggitéitsﬁinerfe 1907/08 begin. 07.


2Ibgegebene 2ietrieb2= 23etriebg=
.. ‘ Sliugenergie @innabinen 1) au2gaben 1)
@mbu in 1000 in in
9‘. 28. @t. 1000 2711‘. 1000 2311.
651111. Sabrb.
23min . . . . . . . . . . . . . . . . . . . . 2 044 528 289
610111. Sabrb. 2 044 558,2 267,2
23011111111 . . . . . . . . . . . . . . . . . . i 1 444 434 161
12 039 488,9 215,9
‘DnrtnmnD . . . . . . . . . . . . . . . . 12 446 1988 890
12 445 . 19295 785
Si‘iei . . . . . . . . . . . . . . . . . . . . . 1 925 816 544
1 959 816 549,6
sDiagbebnrg . . . . . . . . . . . . . . 7 898 1735 594
7 882 ‘ 1785 - 584
sDiiilbauien 6‘. . . . . . . . . . . . . 10 626 1229 547
9 896,3 1226,] 534,6
qsnien . . . . . . . . . . . . . . . . . . 1 111 342 202
952 857,4 208,4
9$ie~r~banen . . . . . . . . . . . . . . . 6 159 1455 721
6 159 1374 589,5

23ei Den @leitrigitiitéinerfen 5eigen iicb icbnn in Den ,Siiiern
iiir. Die abgegebene 2ingenergie recbt ba'niige 23ericbieDenbeiten.
23011 Den in nnritebenber 2".abelle anigeiiibrten @tiiDten baben nnr
23011n,"§)0rtmnnD nnD 28ie§baDen nntereinanDer unD mit Dem 23eriebt
iibereinitimmenDe Sablen. Sn Den iibrigen 5 ("5tiiDten iinDen iieb
mebr nDer ineniger erbeblicbe 2Ibineicbnngen, Deren llriinrnng an
Der @anD Der 23ericbte Der betreiienDen 28er1e nnterincbt innrDe.
2Da§ 01rgebni§ inar namentlicb iiir Die Sllngaben De3 60m. Sabrb. ein
reebt nngiinitigeé. Sn allen 5 @tiiDten mnBten Sebler Deé 60m.
Sabrb. ieitgeitellt inerDen. 033 iiibrt getrennt aui Die 2lbgabe iiir
@elbitnerbrancb, iiir biientlicbe $elencbtnng unD Die in nitig e
1) 23a?» @0111. Sabrb.: ,,C2innabmen“ n. ,,iBetriebéain3gaben”; D112
@tat. Sabrb.: ,,C$innabmen” iinD ,,21112gaben”. @aiiir, Dai; trniibem Die
nbige 23e5eicbnnng ricbtig, iiebe Die betrf2Ininerfnnge1-1 5n Den beiDen nnr=
itebenDen Slabellen.
QIBgaBe, Ieicatere mieber einteilenb in Qicfﬁ, @ra’ft unb ﬂbgabe fiir
Die @trafgenbabn. 3’11 obiger iabeﬂp ﬁnb hie @ummen Dieier (8111’
ge‘langaben aufgefﬁbrt. 3n 9306011111 meivben bte ‘gefamten ($111521;
abgaben in unerfI('irIicf)er 28612 13011 benen bee? %eric£)t§ ab, be,
fonberé bei ber ‘llbgabe Tilt @rait, Die bag 010111. 311505. auf 9 705 108
5%. 233. @t. angibt, mdbtenb iie in QBirfIicbfeit nut 558 753,55 318.
@t. betrug. 3n Riel gibt baé 60m. galﬁb. bte ‘Hbgabe an @e'lbftﬁ
berbrauﬁf) unb ﬁﬁenﬂicbet Selencbtung richﬁg an, bie ﬂit gtbt unb
@raft bagegen‘falicb?) @benio bei ‘Bofen. 2) 3) @ine ﬁbgabe an bie
@ﬂaﬁenbalm fnmmt meber bier web in @iel in Settacbt. 3n 9Ragbe;
burg Ttimmt and) nod) Die Biffer fiir Qic‘bt unb ebenin bie bier bu,
neben auftretenbe ,8iﬁer fﬁr gllbgabe- an bie @traﬁenbabn. 5131c: 1ft
aﬁn nut in her 2mm T111: ﬁ-raft ein %e1)1er, inbem Dieie ftatt auf
2639 358 auf 2623 612 angegeben iit. @ie 11riacbe ber $20162,
Die fiir *Bocfmm, @ieI, ZBDTen unb Wagbeburg ieftgefteﬂt murbeli,
mar nicht 511 ergriinben. @ie Sericbte bieten ieine 91nbaltépunfte,
malebe geeiguet miiren, bte Céiutfteimng ber gtveifeﬂoien 3'rrtiimer
and) nut anm'ihrenb au‘fg-uﬂdren.
QInberé in EKTEﬁII)aufen,/@., mo Die QIl'IgdIM-‘II T1711: @eibftberbraud),
bﬁwtlicbe QdcIcudﬁung, SiWaft unb @traﬁenbabn richtig, Die fiir
~ gidﬁ faIfcI) 1111b. Sgier IﬁBt iicI) bet Srrtum aufﬂiiren. 0Z1: bermbt
0(11‘111, bafg bet éBeridgt fiir _,,verfaufte§ 81cm” 1502 100 $9. 28. @t.
angibt, unb bag @0111. $ahrb. m. (83. 511 Hnredﬁ angenommen hat,
Dafg b'ie ﬁbgabe fiit iiﬁentﬁd)e ‘Be'leucbtung mit 172181 bierin
entbalten iit. Snfolgebcﬁen ift Die QIBgabe fin: 81cm 11m Dieien
ikttag 5n niebrig angegeben.4)5) $®ie QIngabel-I be?» Cwtat. $a1;rb.,
wclclwé im 1neieutﬁcben bte gleicbe @pcgifigienmg auimeift, 1111b
in 9ﬁiili)auien unb SBokn unricbtig, Inéifp'eub iie in ben iibrigen
nben ax'lgeiilmten @tdbten a1?» richtig befunben murben. ﬁn 101111:
Damien ift Die Qibgabe an bie @traﬁenbahn mit ca. 557 000 S9. “QB.
(51.. beinnber'é auigefﬁbrt unb aufaerbem in bem innitigen *Berbraucb
1) 1'180 351 ftatt 1167 948 02511). fiir .S-t‘ruft 070 868 itatt 408
‘~’) Bidﬁ 546642 ftatt 542737 unb Emit 285851 ftatt 27-1 170.
3_) @Iwcnfu [mi (S5111, mu aufgerbem bie *lIbguDc fi'u‘ bio @traﬁenbalpl
ridﬁig ungcgcﬁcu iii.
‘4) mui; 51‘1gegeﬁen merben, baf; ber in bicfer @iuﬁcbt uicﬁt $111115
flqre Qi‘mdﬁ and) me QIuﬁaﬁung be?» (Sum. $110116. 511liifgt. @iu. $erglcid; .
nut ben créengten 98. 933. @t. Bemeift 111. (Si. abet Die midﬁigfeit ubiger
Qiuffaﬁuug, hie mit ber be?» @tat. $abrb. iiBcteiuitin-n'nt.
5) 9896 330 + 172181 = 10068511.
_42_
entbalten, mie ber $ericbt 5me1fe1<3frei ergibt. Snfolgebeﬁen 111
Die @efamtinmme um Dieien 21etrag 511 {10111.1} $11 §Bofen Iiegt
e111 0111-1licf)e1t {ﬁebler not. Sllﬁe 0116 @tat. Sabrbucf) in Wtﬁibaufen
bie ﬁbgabe an bie @traﬁenbahn bnppelt einiegt, To 111 ‘Boien ben
@e'lbﬁberbrauci). <21e1e1: betu'igt35 673 98. @t. $11?» @tat. 31111111.
gibt baneben ben ionftigen Q§etbraucb auf 111110 982 000 5?. 218.
@t. an unb iiberﬁebt, 005 111 biefem SBetrage and) ber @elbftbet=
111111111) entbalten 111, Me an?» bem 23ericbt einmanbfrei feft5ufteﬂe11
1ft?)
bte 05111113511131 meift {(1)011 bie Ilbericbrift einer Ciabeﬂelv
ipaIte beé @tat. Sabrb. barauf 11111, 00%, man bei ber llnteriucfmng
116111151 11111 @urcbgangépoften c116 Hriadwn bet @ﬁfereng, ftofgen
111110. @018 @5101. 31111111. 1111111 1111m11c1) unter bie 63111110110161 nicht
Die g11115e11 @1nnahmen 11116 bem S11ftallationégefcbdfte, bem Waga:
5111 1010 Der QBerHtatt 1111f, ionbern gieht biermm fofort bte tbnen
gegeniiber ftebenben QIuégaben ab, 11110 begeicbnet begbalb hie
bieébegiigﬁdge @palte (116 ,,91eingeminn” an; Snftaﬂationéges
geicbéift 111m, obne abet I)1ernacf) foniequent 511 I)anbeIn, mie 5. 26.
3916 11110 QBieébaben 5eige11, mo hie QSruttDemnafmen in Die iabeﬂe
aufgenommen 11110, 0111001)! e5 namenﬂié) 111 QBieébaben (T. 11.)
111111) ben Qingaben beé Qbericfﬁé iebr 10001 1116131111) gemeien miire
Die 91e111ein11abmen angugeben. @8111 9301111, 9303111111 unb and)
fi'lr ‘lBieébaben, menngieicf) bier 111 umgef'ebrter Sﬁdﬁung, fonnte
0113 ben SBeﬂdﬁen ibrer EZBerfe feftgefteﬂt merben, 011% Die @ﬁee
re115e11 eingig unb aIIein 1'11 @utcbgangépoften begri'mbet {1110, Die
frei‘lid) 1111111 nut beim $nftaﬂatio11§geicbéiit 111113. 1111) Tinben, ionbern
and) bet ben @111nabme11 11116 QiieftrigttitémeHermieten unb anberen.
311 2501111 beﬁefen iicf) Dieie @utdmangépoften auf 30 347,23 91011153),
111 23011111111 11111 54 810,54 213111114), mie 110d) ben Qﬁericiﬁen berecbnet
murbe, unb genau um bieie §6etr€ige {1110 Die 91111106011 be; @tat.
$011111. 111ebr1ger. Umgefebrt 111 ﬁﬁeébaben. Sgiet beicbriinft W)
111 grnﬁem llmfange 006 (@0111. 3001511113) auf bte 91e111e11111011me11,
méﬂn‘enb ba?, @tat. Sabrb. ftatt Deren bie qdruiktoe11111c111me11 unb
1) 10535314 1; 557303 = 10033511.
2) 91116) bem ‘Bericbtmurben abgegebeu an @elbftnerbruud) 35 673
Deﬁentﬁcbe éBelwcfﬁnng 93 371
{01111 946 956
1 073 000
=1) 527 333,23 + 30 347,23 = 55313543
4) 334 050,97 + 5431054 = 433 361,51
_43__
510111: entgegen {einer erﬁiirten 91011031 aucb bei ben Qﬁinnabnien
011?» bem Snftaﬂationégefdjiift 11110. gibt. %ei Iegteren {1110 Die
iiruttneinnabmeri 30 019,10 2111311 (@1111. $abrb. 10. 30 000 9311111),
bie 91e111e1111111b111e11 6558 2111311. (59 5eigt ficb bier bemnacb eine
33011111101113911011 0011 23 461,10 911011, 11111 Die Die Qingaben 009
@101. $abrb. bier br'iber finb. @aéielbe gilt 0011 meiteren @urcbgangéﬁ
poften bei anberen @innabmen i111 glﬁetrage 0011: 57 982,52 21710151)
3’11 @01111111110 11110 Wiiiblbaufen/Q. mar ei11e 91111110111111; ber @iﬁe;
ren5-er1 unmﬁglicb. @ie 21111311561 beg @5101. $abrb. itimmen 11111
‘0e11e11 ber 65610111115 11110 Qéerluftrecbmmg iiberein. §§iir bie Siﬁern
beg @0111. Sabrb. IiiBt ficb i11 beiben @tiibien ei11e 61111111111111; nicbt
'finben. 21101111 aucb 311 beriicﬁicbtigen 111, 00% 0115 010111. Sabrb. 1111r
bie @eiamtiumme ber s13etriebf»e111110b111e11 angibt, 0b11e Dieie 511
ipiegifigieren, 11110 011% bierburcb ei11e ERCLCIﬁQI‘ﬁTUTlQ naturgemiif;
iebr ericbmert iii, 10 10110 111011 0011) nicbt ieblgeben mit ber 9111110111110
0013 bier bie Qingaben be?» @0111. Sabrb. {bebler entbalten, 011 aIIe
11111 irgenbtnie i11 $Betracbt fommenben SJiﬁglicbfeiten ber @innabme;
berecbiirmg 511 anberen Sieiultaten Tiibrten. (83001110 menig 1001'
eiiie 591111111113 ber @iffereng, i11 S1301011 1110111111), 00 bier ber SBericbif
511 aﬂgemein gebalten ift, 11111 ei11e 92011150111101; 511 ermiiglicben.
QEr gibt bie Qiirmabmen auf 343 941,84 9.711111 an, eine Siffer, bie
10100b1 0011 ber ﬁngabe her @101. $abrb. mie ber beé (£0111. Sabrb.
abmeicbt. 2:809 1111 borftebenben begiiglicb 3301111111110 11110 931111:
baufen iiber bie @innabmeangaben gefagt 1011rbe, gilt geiiau ebe1ii0
Tiir bie 211113110061. 90111) bier ftebeu bie 9111g00e11 beg @5101. Sabrb.
mit benen ber (8101011111; 11110 QierIuftrecbnung i111 0511111111101, miibrerib
1111 Die beé (S0111. Sabrb. ei11e (5111111111113 nicbt 511 Ti11be11 iit. 3’11
1130161 111 bei 0e11 Qiuégaben bie ‘Qiﬁereng, 5miicbe11 ben beibeii
Sabrbiicbern ei11e 111111i111111e, bie iicb bielIeicbt 1111011 11110 ber 9.1001;
11011 abgerunbeter 80b1e11 ergibt. 59119 030111. Sabrb. 1111111111 bier 11111
bem 930111111 iiberein. 311 Wiagbeburg 11110 @ieI, 1110 Die 05011111111110:
a11gabe11 iibereirifiimmten, 5eige11 iicb i11 ben Qlixégabegiﬁern 011011:
fail?» @iﬁerengen. $11 Wiagbeburg gibt ber ‘Bericbt bie Qiuggabeu
11111 593 667,19 21111111 011, 11110 mit ibm 1111111111. 005 @1111. ﬁabrb.
iibereiri. @110 @0111. $abrb. bat 11icbt 111 Die 211151300011 eingerecbnet
-- eine anbere @rﬂiirung IiiBt ber Qn‘ericbt 11010 511 — 9696,76 91111112),
1) 1455 474,13 _ (23 401,10 + 57 932,52) = 137403050.
2) 593 007,19 - 9090,70 = 533 970,43 0011 10. 534000 9111111.
4
0e1011510g1 fi'ir ($5111bIa1110e11, 0ie 511111 810e11'e 0e5 210101113 11110
0e§ 1011e11101e11 (631101503 angeicbaﬁt 101110e11. 2131011 10110 bierin
000e0111g1 ei11e11 {‘gebIer ieben miiﬁen, 110111e111111'b 10e1111 111011 beﬂ
riicfiicbtigt, 0011 0er @egenmert 11111 6481,58 931011 01111) 111 0e11 @111:
nabmen be?» (£0111. Sabrb. e111b011e11 111. llmgefebrt e111b011 005
@0111. Sabrb. 111 0e11 9(09g00e11 0e§ @ieIer él3erfe§ 5535,48 £01011,
0ie 0113 0e111 $80110br ftammen 11110 0e9b010 b011e11 abgeiegt 10e10e11
miiﬁeri. 29111 91ecbt 50bit e?» bagegeri 11111er 01e S211131301011 e111e11
11e111e11 Q3e110g 0011 233,28 201011, 0er i111 @101. $0brb. febIt, 11110
0er {111) 111 0er $610100: 11110 QS‘erIufirecbnung 11111er 0er 23e5e11b=
111mg: ,,11110e1111111111e 911101101131 11110 511r 91011100111111” 11110e1.1)
$11 0e11 0rei iibrigen @11'1'01e11: S4101111, $01b11111 11110 23103000e11
11110 51m0'cbft 511 beriicfiiibtigen 01e bei 0er llnteriui‘bung 0er 651114
110b111e5iffer11 feftgefteﬂten 9Durcbg011g§00ﬁe11 $3103 geniigt 11111
01e @1ﬁere115 5miicbe11 0e11 SIUIQQCLBGTI 111 Slioebum 01115111101612)
(Erbﬁbt 111011 111 $601111 mie 00e11 bei 0e11 @innabmen 10 bier 01e
9103g00e51ﬁer 0e3 @101. Sabrb. 11111 0ie ge111110011e @urcbgangég
0011 0011 30 347,23 9010r1‘, 10 erbiiIt 111011 1101b 0e111 @101. ﬁabrb.
e111e 211151100e51ﬁe1‘ 0011 r0. 319 000 931011. $11 01efer @11111111e 11110
111111 aber e111b011e11 70 000 931011, 10eIcbe- 011 0ie @100110ﬁe 0119
0e111 656011111 abgefiibrt 1011r0e11, 11110 01e 11111er 01e Qﬁetriebéauéﬁ
g00e11 1111111 gerecbnet 10e10e11 01'1rfe11, ei11%ebIer, 0e11 003 @101. Sabrb.
0111b beim 65001021 1601111 (1. oben) gemacbt bat, 11110 0e11 e5 bei
anberen @1001e11, 5. 911‘. 111 SI81e€>000e11 0e11111e0e11 bat. @5051 111011
bieie 70 000 21111111 00, 10 bleiben 10. 249 000 931001, 11110 01eie 311101
1111111111 bei $eriicfiicbtigu11g 0er Eburcbgangémft 11111 0e111 $ericb1
1'10ere111. 1281e 01e bier0011 1101b 0010eicbe110e 30b1 009 60111. $0brb.
511 er110re11 111, 1001 11015 0e§ recbt auéfiibrIicben gliericbteé 1111111
511 erm111e111. 311 i731e§000e11 111 01e 9111g00e 0e§ @101. $0brb. aucb
bei $eriicfficbtigung 0er ®urcbgangépofb 10eIcbe bier 101e bei 0er
’(Lﬁinnabme 00ge1e151 10e10e11 1111113, 11011) 11111 50 000 9110013) b0ber
015 01e 0e€$ (£0111. $0br0. Cl>iefe @iﬁereng) erﬂiirt iicb 101e 101511.
58011 0e11 03111110b111e11 beg 3’0bre3 1907/08 100re11 1101b 0e111 5801;
anfcblag 111 009 13101110011111 0e€> 1101bf0Ige110e11 Sabres“; 75 000 911011
511 ﬁbertragen, 100bre110 ebenfo 111 002“; Sabr 1907/08' 0113 0e111 230w
0b1e 50 000 971011” iibertragen 100r0e11 1001e11. 9201b 0e111 %‘0r¢
1) 543 303,43 + 5535,43 + 233,23 = 549 037,24
10111321 + 5431054 = 21592375
8 720 934,10 - (3144302 _|_ 50 000) = 539 490,54.
__45_.
Wine ber @jemimv unb Q§erluftrecbnung be?» QBerfeg bat nun ha;
60m. 3abrb. bie Ebiﬁereng, 3mifcben Dieien beiben §Betrtigen aIfo
25 000 émarf in bie ﬂuégaben aufgenommen, bag @tat. $abrb.
{agar bie gan5en auf 1908/09 311 ﬁbertmgenben 75 000 EDEaIF aIfo
50 000 mm mebr, obne ben entfpredwnben ﬁbertrag aué 1906/O7
irgenbmie 511 beriicfiicfﬁigen. 236M?» muﬁ aIfo unricbtig be5eicfmet
merben, ba ber ﬁbertrag, menu er and) butch ben Q§nrcmicblag feft=
gefegt mar, unter feinen llmfté'mben aIQ $13 e t r i e b 5 auégabe
angeiehen merben barf.
_\ 46 __
ll; Qlbfdmitt.
@ritif ber fﬂibtiidwn Sewerbebetriebe.
1. QapiteI.
Q5om ﬁnangpolitiﬁbeu Etanbpunfte.
QBiII man bie gemerbﬁdjen ﬁommunalbetriebe, Die in ibren
mefentﬁdiwn @ricbeinungéformen im norigen QIbfcbnitte beiprodjen
murben, einer @ritif' untergieben, in mirb man 5undciﬂt ibren 03W
Tiufg auf bie ftéibtiicbe Cﬁinangmirticm’ft 5n unteriucben baben. @0=
mofﬂ baé fttibtiicbe Qlnleihemeien (11% and) Die Qinmmunaibubgeté
bdngen in ibrer @ntmicﬂung mit ber QIuQDeDnunQ ber gemerbﬁcben
communaien llnternebmen auf bag engfte 5uiammen.
‘Daf; biefe eine ﬁarfe @teigerung ber ftdbtijcben QIn'IeiI) e;
in mm e n 5m {edge batte unb baben mufgte, Iiegt auT ber Sganb.
EYEacf) ben émitteilungen beé ftatiftifcben Sabrbucbé i). @ta'bte ift in
nicht gang, 10 Sabren, niimIicI) in ber 3eit hon 1897 begtn. 97/98
big 1906 begin. 1906/0’7 bie ftdbtiicbe ﬁnleibeimulb 5011 55 ﬁber
50 000 (Einrnofmer 5&bienben beuticfwn @tiibten Don runb 1300
sIﬂiﬁirmen au’f ettna 2860 imilﬁonen geftiegen.
glad) Woft 1) Betrug Die @5105 ber @tébte mit ﬁber 10 000 (Sin;
tnobnern
1881 771,8 imiﬂinnen Smurf
1891 1400,5 ,, ,,
1901 3097,? ,, __ ,,
1907 5295,? ,, ,,
@ieie @cf)u1ben5unaf)me ift abet nut etrna 5ur @(ilfte au‘f ba?
500mm ber probuftiben $etrie5e, "Die ieIbft Tilt ibren @dwibem
bienft auffnmmen”2), unb 511 benen in erfter Qinie bie gelnerblicben
%etriebe gebbren, 511 jegen, méiin‘enb bie anbere S'Qéilfte bebingt-
murbe bard) bie baben ﬁnangieﬂen Qlnforberungené bie infolge be?»
rapiben QBacbétum?» ber @tdbte unb ber ftarfen 8unabme ibrer
1) iUloft (‘5. 26.
2) H H 45‘
~47 _.'_
mirfcfmftée unb fngiaipnIitifcﬁen QIIITQGBQTI cm bie @tabtbermaitungen
berantreten, ,,beren @rbulbenbtenft aIfo im @runbe bem QIuffnmmen
(1115 @teuern 5ur gait ﬂint/’1)
@aé ftatiftifcbe QImt ber @tabt inﬁrnberg bat berecfmet, baf;
non ben in ben Sabren 1904—06 non 30 beutidben @roﬁftiibten
au‘fgennmmenen Qlnieiben 511 probuftiben Qrneﬁen 48,18 %, ﬁir
unprobuftine Bmecfe, iEerginfung unb ﬁmortifation bagegen 51,82 %
bermanbt morben iinD?) Sn Emiincfwn murben bié 1907 5011 ben
geiamten ﬁnIeiben 49,19 % 5n gemerbﬁeben Brnecfen au‘fgenommen.3)
QBerm mm and) {niche iErogentffige naturgemr'if; 3iemlicf) idﬁnanfenb 4)
iinb, unb beébalb eine QEeraIIQemeinerunQ biefeé ERefuItateé nicht
unbebenfﬁci) iii, in mirb man 506) baranés icbﬁefgen biir‘fen, baB burcfy
icfmitﬂicf) Die Sgr'iifte ber aufgenommenen QInIeiben prnbuftihen
Bmecfen bienftbar gemacbt murbe, ba‘ﬁ; alio mit anberen Qis‘nrten
burd) bie prnbuftibe Sl$et£itig1mg ber @tﬁbte ibr ﬁnleibebebﬁrfnﬁ
etma nerboppeIt mirb.
811 einem g1eicben éﬁefultat fommt Emoftf‘) ber beredmet, "MB
bei ben preuﬁiicben @tdbten mit mebr a1?» 25 000 @inmobnern burcf):
fcbnitﬂicf) 52,7 % aIIer ibrer @cfmlben auf getnerbﬁrbe gb‘etriebe
entfaIIen.” 81m: @teigerrmg beé ftiibtifcben ﬁnleibebebiirfniﬁeéé
tragen natiirﬁd) bie @Jparfaﬁen nicht bei, bte bieimebr eine mefente
Iicbe moﬂe a1?» @5elbgeber ber @téibte fpieIen. @aB-en bod?) im Iegten
$abr3ebnt bte @arantiegemeinben ber ftr'ibtifcben @parfaﬁen aué
Dieien runb 280 Smiﬂionen EDEarf Ieibmeiie entnommenﬁ)
201% ber @teigerung beé QIlrleibebebﬁrfniﬁeé fﬁrmen rum aber
grunbfﬁglicbe §Bebenfen gegen bie ftr'ibtiieben @jetnerbebetriebe
nicbt bergeieitet merben.7) @teben bod) gerabe ben fiir Dieie 8mecfe
aufgennmmenen QInIeiEen, mag garb QIDeBurI) bei {einen 2015’
fﬂﬁungen ﬁber bie ﬁrtnabme ber ftfibtiicben @cbuibenIaft bﬁIIig
unberi'rcfiicbtigt Iiiﬁrs), reaIe Qéermbgené-merte gegeru'iber, unb 5mm
QBerte, bei benen regeIméiBig bei orbnungégemdﬁer wrticbaft feine
Qiéertminberung fnnbern eber QBertfteigerung 5n ertvarten 1ft. EUEan
Wt <5. 45.
2) (£0111. mm. 1908, es. 383.
3) @cbrift b. r. f. 65., £85. 129,2 2 <5. 85. ‘
4) $11 @iiﬁelbnrf Betrug 5. 2%. Der QInteiI fiir prnbuftinc ﬁmecfe
87,10/05(@@c1)r11fgen ber 2}. f. @. 23512922 6.158).
6) EUkDTt 6 33.
7) 2L QI. ingﬁefnnbere 8515 QIneEnrg a. a. $3. 65. 30 ff.
8) u. a. D. 65. 30 ff.
__ 48—
barf natﬁrﬁd) ebenin inenig note bei ber iBribattnirtfcbaft bei ber
Qommunalmtrticfm‘ft aIIein auf bte SlSaﬁiba ieben. Eman muB biele
mebr non ber Qﬁermbgenébilang auégeben, inenn man bte Q§er¢
mbgenélage einer @tabt beurtetten miII, unb e?» mirb Hale“; auﬁer
aIIem 8meifel ftebenb begetdbnet, bag, menu and) bie @cbuIben
ber beuticben @tr'ibte im Iegten $abr5ebnt gemaltig geftiegen iinb,
meit icbneIIer unb ftr'irfer bod) ftct) ibr §8erm5gen bermebrt bat,”1)2)
mobei freiIict) 3,11 berﬁcfficbtigen ift, baB etn ieiI biefer §8erm5gen§¢
merte faum ober garnicbt reaIiiierbar iit. 21111 bte Ttiibtiicbe Q§ermbgen§¢
biIang, aber fbnnen probuftine QInIeiben regeIméiBig feinen ungi'mftigen
(Einﬁui; auéiiben. @ariiber binaué mug iogar Teftgefteﬂt merben,
baf; bei gleicb bober ,,Q§ericf)u1bung” (2Baiiibfa1bn) unb and) innit
g1eid3en Q§erbiﬂtniﬁen bie 21n1eiben einer @tabt, me1c1)e gemerblicbe
$etriebe bat, trog be?» baburcf) bebingten bbberen 91n1eibefonto§
beﬁer funbiert iinb alé bie einer g1eicben @tabt, me1c1)e feine gemerbe
when EBetriebe unb entiprecbenb meniger Qtnleiben auggegeben but;
benn bei erfterer berubt 1a bte gang-e ﬂnleibernenge 511 einem bbberen
SBrbgjentfage auf S‘tealfrebit (116 bei Iegtererﬁ') 11miangreirbe fttibtifdw
(55emer5ebetrie5e bieten r1110 anti) eine gute reaIe @runblage fﬁr bie
burcf) anbere ftttbtifcbe ﬁufgaben erforberﬁcfy merbenben QInIeiEen.
ETEur etn éBebenfen gegen bte ftarfe @teigerung beé QlnIeibee
bebi'trfniﬁeé burd) ftr'ibtifcbe ®emerbebetriebe ItiBt int) nicht non ber
@anb meiien, na'mﬁcf) baé ber ﬁéericfﬁecfnerung ber @ubmiﬁion§¢
bebingungen ber @ommunatanteiben. 8mm banbeIt e2 ﬁcf) in ben
meiften unb mefentﬁctﬁten gemerbﬁ'cben 25‘etrieben ber @ta'bte mie
ben @aéﬁ, gliéaﬁere, @Ieftrigitiitémerfen unb @traﬁenbabnen regeI,
1) (‘50 911011649. (5r teiIt mit, bag ber Ileberfcbtrﬁ besg 5Bermbgen§
'riber bie @dptlben ftieg bet ben bairifcben (Sjen'winben mm 542 iUtiHionen
int Sabre 1902 au’f 603 EUEiIIimIen int ﬁabre 1906, unb bei ben bubifcben
65eme1nben 13011 318 imi'lIionen 111-{Sabre 1895 auf 821 imiﬂionen 1902
unb 348 flJtillionen 1904.
2) 8n ‘Dregben, bag @bmunb gifcber (Municipal socialism. in Ger-
many, the International 1909 N0. 21) (11% tnpifd) fiir b'ie @xttlnirfIung ber.
bentfcben @tiibte begeitbllet, ftieg trot; ftarf 5unebmenber @5c5ufbenlaft non
1886—1907 bag ftdbtifcbe QEermbgen non 101,09 auf 117,58 9311?; r0 ﬂow
ber Q1en'51ferm1g. (@ntnunnnen an?» £0cbnif unb ﬁBirtfcﬁaft 1 09,2111.
@taaté- unb ©emeinbebetrieb non @cbiﬁ 65. 535.)
3) 93eifpie1: @ie @tnbt A [)at eiu ﬁkrmbgen in gemerblicben Q31):
tricbeu mm 25 9111111011011 9m. unb ein fnnftigex? Q3ermbgen mm and) 25
21111111011011 imf. @ie @tabt B but nnr. Iegtereg Qkrmbgen. B but etne 211v
Ieibefcbnlb mm '75 9Jtiﬂiunen $111, A elttfprecbenb {einem QBermbgen in ge=
werbIicben iBetrieben cine nnr 25 SDEiIIinnen 1)br1)ere Sullu‘ilﬁft‘fﬁllb. @ann
ift bie 211'IIeibefr5111b non A 5n 500/0 (100 511 00), bte non B an 331/30/0
(75 3,11 25) anf iltealfrebit baﬁert.
-491.-
mr'ifgig um 21n1agen, mekbe etn bringenbeé %ebﬁrfni§ befriebigen
inIIen. €50rgen bie @tabte nicht ie‘tbft bierft'ir, {0 treten, note bie (Lire
fabrung 5eigt, ban ben ©eminrtaa§ii®ten ange10ct‘t nieifact) private
llnternebmungen an beren @teIIe. 3n betben i§aﬂen mirb ber Rapitak
marft int meientﬁcimn int g1eic'ben llmfange in Qtniprad) genommen
merben, aber bier banbeIt e5 ﬁct) um einen anberen ieit beé @apitak
martteé a1§ bort. ($2 111 3,11 unteri @eiben $011 c1)en @ommanate, @taaﬁ;
unb bertnanbtea QInIeiben einerieité, bie feft berginélidy unb aaf
bf‘fentﬁcb’recbtﬁcbem @rebit baiiert iinb, bafiir aber and) regetmaﬁig
retatib geringe ERente gema'bren, unb QIftien, @aren unb Snbaftriee '
obligationen anberieité, bte meniger ﬁcber finb bafr'ir aber ibren
SI3e1i1§ern im a11gemeinen etne bbbere, mean and) teilrneii e i émanfenbe
S‘tente abrnerfen. @aéé 21ngebot fiir betbe @rappw 1ft oft ein redat
bericbiebeneé. Qierabe beate menbet e55 inf) namentﬁct) im fapitala
traftigen .‘238eften nnierer Emonarctﬂe infoIge ber engen $eriibrung
mit berﬁnbaftrie, infoIge ber gegen friiber bieI meiter berbreiteten
mirﬂﬁben ober bermeintlicben Stenntnié inbafrrieﬂer QEerEaItniiie,
icfﬂieBIicI) infotge beé burct) bie nerteuerte Bebenébaltang gegeitigten
58er1angen§ ieine Stente ietbft auf @often ber @id)er1':)ett 5a erbbben,
mebr ber regelnraﬁig heifer rentierenben 3meiten @rappe 5a. (536
111 bag etn meientiicber @runb fiir ben in Diet beiprocbenen nieberen
@urﬁtanb ber ingenannten mﬁnbeIiicberen $apiere. 3n berieIben
Sticbtang mirft natt'trﬁct), baB bte @apitamacb‘frage gerabe auf biefem
Gjebiet in @eutidﬁanb int Iegten Sabrgﬁbnt infblge ber baben 21m
forberungen beg SReicbé, ber @ingeﬁtaaten unb ber @omnnmen
vaufgerbrbentﬁct) gefttegen ift. Sebe @inridﬁung, bte geetgnet 1ft,
bieie Enaclﬁrage 5a erbbben, unb hiergu gebﬁren mie gegeigt bie
' ftabtiicimn @ﬁemerbebetriebe mit sXugnatwne natiirﬁcf) ber @parfaﬁen,
maﬁa beébaIb ben @tanb ber mitnbelitcberen QInIeiben aIfb and) ber
@bmmandanteiben unb bie @ubmiﬁionébebingangen ﬁir iolcbe .
bericbiecbtern. @aga format, baB rmter ben mitnbeIficberen ‘Bapieren
bte @nrnmuttalarrleiben int iBablifam fat) ber geringften Seliebtbeit
er‘freuen, teﬂinetie Innbi, men bie @id)ert)eit, me1c1)e etne @tabt
bietet, ft'rr geringer eradnet lnirb até bte beé @taatef», bann aber and)
infrﬂge beg fIeineren Emarfteéi, ber namenﬂict) bard) bte 8eriplitterang
in bteIe tIeine Qtnteifwn bebtngt mirb. ($36 ift bieg etn Siacbteﬂ, unter
bent natargemaﬁ bte tIeineren Qjemeinben ant meiften 5a Ieiben
baben. QItwgeieben babon, baB man bieien SJtangeI abgjutwlfen bermag
__50._
nnb and) {than inch-t bard) @riinbung non @ommnnamanfen, in benen
1111) mehrere @tabte 5ur QDnrmTﬁbranQ ber Qinleibebegebnng ber;
einigen 1), barf man bem (bimﬂnﬁe ber @teigernng beé ﬁnieibebee
bﬁr‘fniﬁeé bnrcf) bie getnerblieben QInIaQen anf ben @nréftanb unb bie
@nbmiﬂionébebingnngen ber itabtifcben 21111e111en feine a115n groﬁe
§Bebentnng beimeﬁen, ba bie beiprocbene QBirfung bod) etne recht
eng begren5te ift. Se mebr ber @nré ber 60mm11na1an1e111en 1am
ober {1111) bie @nbmiﬁionébebingungen beridﬂecbtern (bﬁberer gins?
ober niebrigerer @miﬁionéfnré), befto rentabier merben bieie 21m
1e111en Ti'tr bie ﬁapitaﬁften, unb beftb mebr menbet 1111) ba§ @apitak
angebot ibnen mieber 511, moburef) bte faIIenbe 'Ienbeng, gebemmt
mirb.
QBie anf ba<3 91n1e111e1r1e1en, 10 nben bie ftabtiieben @emerbee
betriebe ibren (13111111113 and) an‘f bie eommunaIen SEnbgeté an§. @dmn
1m erften Qibidmitt mnrbe anf bie @5e1ninne bingenneien, me1d1e
bie @5en1erbe5etr1e5e ben @ta'bten gemabren, I'lberfcm'iﬁe, bie a11ge¢
meinen Tttibtiieben .81necfen bienftbar~ gemadfn merben Ifbnnen, in
bie @tenerIaﬁ in bieien @tabten minbern, menn bieIIeicbt 2111011 and)
511 meit gebt, tnbem er iagt, bag ,,bie ©emeinbebetriebe bente 5am
sJti'nl‘Tgrat ber c0mmnna1en ﬁinanggebabrnng namentﬁcf) in ben
grbfgeren @tabtgemetnben gemorben f1nb.”‘~")
3n Wtannfnim fflbrten 5. $5. bie @aéq iiéaﬁere nnb @1eftrigb
tatémerf'e 1907 einen ﬁberjcbnﬁ non rnnb 1 070 000 War?) an bie
@tabtfaﬁe ab. 2111 (Sommnnalftenern mnrben 1m g1e1e11en 3abre
rnnb 6 080 000 Wart 4) erbnben. Sgier batten bte @tenern obne biefe
ﬁbericbiiﬁe 11m ftarf l/5 er115111 merben miiﬁen. 92ml?) $11M) 5) fﬁbrten
in ben 1etg>ten Sabren in c{granf‘fnrt a. 2111. an ba?» Drbinarium ber
aIIgemeinen EEermaItnnQ einige 11a1111t11101111c11 in %rage fommenbe
gem. Eﬁetriebe 1m EUZitteI rnnb 2 791 000 War? ab. 1904/05 erbob bie
@tabt an GBtenern ben Sb‘etrag non 14936788 21111111. Dbne bieie
811111111111? batten bie (Sommnnalftenern alfo and) bter 11m etma 1/5
erbbbt tnerben mﬁﬁ en. ﬁn SUEaing- bat bte @tabtfaﬁ e in ben 23 Sabren
be?» 1111111. 2‘5etr1ebeé ané bem @aétnerf allein bie @nmme ban
9 379 842 21111111 Hberiebnfg erbaIten. ,,~Df)ne bieie l'lbericfntﬁe batten
1) @1ebe 1)ier511 SUlnft QB. 55 ff.
2) @0 9.111111 (‘5. 16.
3) @d7r1f1en beg 2}. f. 65. 23b. 129,24 (‘5. 58. ff.
4) (Sbm. Sabrb. 1908, @. 664.
5) @cbriften beg Q}. T. (‘5. 28b. 129 ,,®eme'1nbe11etriebe“ 3 ©. 122. -
__.51.._.
bte Cirmmnnalfteuergnfdﬂage {than feit 3a11ren etne ﬁrbﬁbung 1116
511 25 % erfabren mﬁﬁenﬂ)” 3n {greibarg betragen 1908 bie Efteine
einnabmen ans"; ben fta'bt. Q5ernerbebetrieben 1 102 000 Emarf= 20 %
ber 05eiamte1nnabmen?) ‘Qaéé bier unb 1m erften ﬂbicbnitt gegebene
imaterial gem'igt 51ne11e11013, 11m bargutnn, ba?, bte éﬁebaaptnng 80rb
ﬁnebnrn’é, bie ftabttieben Qﬁetriebe arbeiteten bnrcbmeg mit %erlaft,3)
iebenfaﬂs"; far @enticfﬂanb nngntreffenb 111, 011 and) far @ngIanb
mag babin gefteIIt bIeiben. S’mmertnn nairb man anf einige pringiﬁ
pieﬂe Sla‘ebenfen gegen ieine 91a§fiibrnngen hinmeiien mﬁﬁen. SDer
Qﬁohnnnggban, ben ,8r1rb Qibebnrr) 1n erfter ginie 511m QSemet'ie far
ieine peﬁimifttid)e QIuTTaHnng berangiebt, barf iiberbaupt ment bee
riicffiebtigt merben, ba er a1§ eine 1051a110011111c11e EDM‘Bnahme gemoIIt
tit unb beébalb finangieﬂ gnnftige @rgebniﬁe natn ermarten 111131.
@aneben giebt er freiﬁd) and) bie @traﬁenbabn, bte SeIencbtang
unb QBaﬁerberfbrgnng beran. 815gefeben babon, baf; er bei erfterer
11d) mit einem eingjigen “Seiipieie hegni'tgt nnb bteieé beraIIgemeinert,
mnrbigt er nicht binreicbenb ein anﬁerft midnigeé 9310ment,ba§ er
ielbft 1n anb erem 8111 ammenbange ermabnt, namﬁef) baf; bie @traﬁene
baf) nen 2c. in @ngIanb bnrcbtneg nidn ban ben @tr'ibten 1" e155 gegriinbet
fonbern non SBrit)atnnternebmnngen ﬁbernnmmen morben finb.
(532 Iiegt anf ber @anb, baﬁ; nnter biefen llmftiinben ba?) finangﬂeﬂe
@rgebnié» ein nngiinftigereé’» iein mug, ba ber llnternebmergeminn,
ben bie QBerfe 5ur Seit ber 115erna1)me regeImaBig abg-nmerfen in
ber ,8age maren, in bem Qan‘fpreié menigftené; 511m grbBen EEeiIe
fapitaItﬁert an bte frﬁberen Hnternebmer gegablt merben mnBte,
mie Slorb QIDeBnrI) ieIbft aaéfﬁbrt 4), obne aber barané’» bie nbtigen
{ﬁoIgernngen 5,11 gieben.
@1e @ommn1ra1einna5men an?» ben eigenen ©emerbe5etr1eben
iinb born . @tanbpnnfte ber (blommnnalfinangen 1m meientﬁdwn
gﬁnftig 511 BeurteiIen megen beg groﬁeniwrgmgeéé, ben iie gegeniiber
ben @tenern baben, ba iene bem @ﬁrnnbiage beg ,,81e111ung§m1nimn§”
11) {*yranffnrter 8eitnng 9h: '79 1909.
2) %‘erer1)net mad) ben QInQaBeII in ben @cbriften b. 2}. f. (5. ‘85.
129,25 (5. 8'7 1.
3) a. 11.53. (5.44 11.
4) a. a. $3. 65. '78. EBei ber 23enrte'111111g ber gauge, 05 bie @tabt
801111011 e111 prinateé QBaﬁermerf, bag ﬁd) mit 10°/0 reutierte, iibernefpne-n
biirfte, fagt er: "528121111 ba?; ﬁapitaI, bag {an 511 10°/0 nerg'rnft, a1 pari ge=
fanft merben fbnnte,_n11'irbe e»? nati'trIieI) e111 iebr guteé @efcbiift iein, aber
jeberrnann fuIIte _mi]ien, baf; mir 51.1 einer ‘Eage fanfen mnﬁten, bte ben
Qlftioniiren ungefdbr ibre gegenma'rtigen (5111-11-11111'11e11 fidgerte“.
_._.52___
meit beﬁer gereebt merben a1§ bieie. 8mm: iinb and) bte gemer1111e1)en
@innabmen auf 8eiftnngen ber Snbibibnen 3,11r1'111'5-1111'111ren. @1eie
erbaIten aber unmittelbare ®egenleiftungen baitir unb empﬁnben
baber bie eigene 8e1ftnng men 1nen1ger. QBabrenb ﬁe alio 1n biefer
@inﬁcbt ben 2§erbraneb§a11gaben minbeftené g1e1cbfteben unb beﬁer
iinb a1?» bte anberen @tenern, baben iie nor aIIen @teuern nod) ben
meiteren Q§0rte11, bafg T feine 11 e i 0 n b e r en @rbebnngéfoften
entfteben. ﬁe ﬁnfaﬁofoften unb berg1., bie natnr'ﬁcf) and) bier nnber:
meiblid) finb, miiﬂen 511 ben S3etrieb§foiten be§ 28erfe§ gerecbnet
merben; bieie mnrben 1a einem iBribattnerf' ebenin ermacbien.
Qinberfeité; merben freiﬁcf) bie getnerblicben 031nna11men bem
iBoftnIat mbgﬁcbfter @ongraengj ber @1nna11men anb ﬁnégaben
nnr nnboﬂl'fommen gerecbt, ba iie 51nar mit bem ﬁitacfﬁtnm ber
@tabte anb bem biermitgganb in Sganb gebenben @teigen beg 1111111.
c{ginang-beb1'ir’fn1ﬁe‘3 1n'fo1ge ber grbfger merbenben Stacbfrage ftettg
5-11nef1men, bnrﬁbergebenb aber ftarfen @cfnnanfnngen nnternmrfen
iinb. C5erabe 5n 8eiten niebriger ﬁonjnnftnr 'piiegen iie 511. ﬁnfen,
obgIeicI) in fohben 3am bte ftabtticben imittel in maneber 131111151
(5. 25‘. 1111 ﬂrmenpflege, Qlrbeiterﬁiribrge) beionberé ftart' in QIniprnCI)
genommen merben QIBer baé tit ein imangeL ber minbeftené, ebenin
ftarf nnferen @ommnna‘tftenern anbaitet, abgeieben bieIIeimt non
ben progentaaien 8u1c111agen 5ur ftaat‘ﬁcben @mfommenftener ze.,
melcbe 10 giemﬁef) bie etngige betnegﬁebe nnb elaftifcfn Cﬁnnabmee
qneIIe ber @ta'bte iinb. QIBer anti) beren @Iaftigitat ift fiir ben ﬂu?»
gleief) t1 0 r 1'1 5 e r 13 e1) e n b e r @tatfctnnanfungen nnr nonv then;
retiicber Qﬁebentang; praftiicf) iinb bie @tabte fanm in ber Bage,
5. %‘. bei S’tonjnnf'tnrriicfgangen bie 21n§gabengnnabme anb ben
nnter anberem idwn bard) bag @mfen ber @taatéeinif‘ommem
fteneriamme bebingten @1nnabmeanéfa11 bard) @rbbhnng ibrer
©1e11er5111c1111'1'ge mett 511 maeben, 511ma1 ber grtiﬁte ieiI ber ﬁnger
Tcbon obnebem bridge ber warftlage mit ftarf berringerten (5111’
nabmen reebnen mn‘B, unb 11d) beQbaIb ibre 2§ertreter 1m (15111111,
parlament fanm bagn entfcbtieﬁen merben, bte 31111111age entfpreebenb
511 erbbben unb To bte Qénbgeté ibrer QBaBIer in bieien feIﬁeebten
Beiten nod) ftarfer 311 belaften. 3m nbrigen mgr 11011 bte mangek
bafte QInpaﬁnnQﬁaEnQfeU; ber gemerbﬁeben @innabmen an ba?
{ﬁnangbebﬁrfnié weir beﬁer, alé bteé bet ben @teuern mbgItcI) 1ft,
fompeniieren bard) eine nerni'mftige anb meitanéicimnenbe Yyinang-e

_53_..
130111111 28erben 1n Beiten ber @nmfbnjnnftnr bbbere 21111 mreibnngen
bnrgenbmmen, begm. 11:11rb in inIcben Sabren ber 8‘teiernea nnb @ra
nenernngéfonbg bﬁber botiert, a1§ ein nrbnnngégema'iger gl'v‘etrieb
an {1(1) nerlangen mnrbe, in fann man in icbIecbten Sabren bieran
iparen nnb einen entipremenb bbberen $r05entiag ber. EBrnttoe '
@innabmen 1111 aIIgemeine %eb1'irfn1ﬁe an bie @tabtfaﬁe abfﬁbren.
c§3a5n fommt, baB 511 Beiten niebriger @bnjnnftar 5mar bte (ﬁne
nabmen ber @jernerbebetriebe {emit 1nfr>1ge ber abnebmenben Sheba
frage 1n§beinnbere nad) @aé, caaraaaar 11 11:1. ftarf iinfen, bafa bem
aber menn and) nicbt immer 1'0 bod) baufig inébeionbere infoIge
@mfené ber iBreiie ber iﬁobprobnt'te eine abioInte nnb reIatibe
§8erminberung ber g)Inégaben gegeniiberftebt, unb baB beébaib ber
berbletbenbe @etrnnn bnrcbaué nidn in bem 211111158 iinft, 1nie bie 2111’
nabme beé Stbniumé ermarten 11'1'1'31: '
2111(1) binitcbtﬁcb ber 1m Tinanganﬁtiicben Sntere'ﬁe miinimenéw
merten %a1)igfeit eommnnaIer (ﬁnnabmen 11a) mbgﬁcfﬂt genan 1m
borané beranicfﬂagen 511 Iaﬁen fteben bie getaerbIicben @innahmen
benen ané @tenern minbeftené gleici). 3m ﬁbrigen iinb iie in bieier
@iniicbt berfcbteben 511 bearteiIen je nact) ber QIrt ber getnerblicben
éBetriebe. @ie (51nna11men iinb am in genaner 5n neranicblagen,
1e ftabiIer ber éBetrieb ift, unb e5 mirb {pater an§3afiibren iein, baf;
{than aué mirtfmaftépolitiimen @5r1'inben nnr ftabtIe SBetriebe 3111‘
i'lbernabme bard) bte @tabte geeignet iinb.
@dﬂieﬁﬁcf) ift in biei em 8111 ammenfmng nod) baranf 51n5111neiien,
bafg bnrcf) genoerbﬁcbe @mnahmen bie ‘Bemegﬁcbfeit ber @tabtben
maitnngen anf finangpoﬁtiidwm (5e111et nermebrt mirb, mobnrcf)
freiIicf) and) bie ﬂnfnrbernngen an ibre finangf unb mirticbaftﬂ
pDIitiime @inﬁctn erbbht merben. §Berfﬁgt eine @tabt in grb'fgerem
llmfange iiber @emerbebetriebe, in 111 ﬁe 011: in ber gage bie @teuern
5ngnnften beé iarifé ibrer EBetriebe 3,11 erbbben nber nmgefebrt,
unb bem macbienben $~1nan55ebﬁrfni§ bard) @rbbbnng ber @teuern
bber bard) (Airbbfntng ber iarife gerecbt 511 merben. 28111111 iie ricbtig
3.11111c11en biefen ~SIRbgIidbfeiten, in fann ﬁe tbre (51nnabmeqne11en
gerecbter anb gineefmaﬁiger geftaIten, alé ibr b1e§ mbglid), 1nenn iie
‘nnr anf @tenern angenneien mare. Qlnberieité? beftebt freih'd) bie
grnﬁe @efabr, baf; bei %e1)1en aa€>reie1)e11ber 113111111111 e1nfa11cber
28eg eingeidﬂagen mirb, tnbem niebt recin5eitig 1111; a11§>renbenbe
Sieferben, beg-1v. Qibidneibnngen geibrgt nnrb, mag ft'tr bie finangye
‘1. 254 -
poIitikbe %enrtei1ang ber slﬁerfe non ber benfbar grbfgten Qiebentnng
ift, unb tnoranf im na'cfﬂten Side 1100.”) beionberé eingegangen merben
1011, ober ant anfgergembbnﬁd) bone} Hberiebﬁﬂe in guten 3a11ren
banernbe 21115ga5en haiiert merben,1) anb bag ﬁberbanpt Bei ﬁbre
miegen gemerblimer ﬁnnahmen bie QIuégaben niebt in ibrgfa'ltig
gepriift merben, a1§> geicbeben naiirbe, inenn in erbebIidyerem 11m;
fange 511 ibrer CQectnng @tenern 11erange5-ogen merben miiBten.
ﬁeieé meift baranf 11in, baﬁ, in giinftig and) bie gemerbIicben Céiina
nabmen mie ge5eigt finangjpolitiid) 5n benrteiIen iinb, e6 boa?)
nerieblt mare ein @ommunaﬁmbget auéimliefglieb bber faft a116,
fmliefgIicf) baranf anfgubanen.
ﬁe 5nmei1en er1na5nte @efabr, baB bie @tabtpariamente
nnter bem ﬁncf ber Sionfnmenten, bie ja g1eic55ei1ig bie S1861111er
iinb, eine 5n Iiberale iarifpolitif treiben nnb in ben @eminn ané
ben (55e1r1erbe11etrieben ﬁbermaﬁig berringern, 111 m. (85. nicht bore
banben, ba bem St‘oniumentenintereﬁe ein minbeftené; ebenin ftart'ef»
Sntereﬁe an niebrigen @nmmnnalfteuern entgegenftebt.
Emem %eac1)tnng nerbient ber @inrnanb, bag bie @tabte gegene
iiber ben ﬁrbeiterforbernngen 5n menig 8iticfgrat baben unb babnrcI)
abgeieben non anberen Q8irfungen bie Sienten ibrer (5e1nerbebetriebe
Ttarf berminbert miirben. Qiber and) bier fbnnen 111:1) bie @tabte
nermaltangen bei ibrem SBiberftanb an’f @egenintereﬁen na'mIicI)
bie ber prinaten QIrBeiterQeBer ftfigen. $m iibrigen mirb anT bieien
‘Bnnft in anberem Qniammenbang 5ur11c15nfommen iein, ba bie
in ber Qibiningigfeit ber @tabtbermaltnngen ban ber ﬁrbeiterfcbaft
Iiegenbe @efabr in bolfémirtid)aftlief)er .Sbiniicbt ban griiBerer glb‘ee
beutung iit.
@dwn im bnrftebenben mar bingnnaeiien anf bie grofge Sliee
bentnng, meIcbe ber image ber 91111 cbreibnngen begrn. ber QInTammInnQ
ban %0nb§’> 5nfommt, 101110111 iiir bie §Be1nertnng ber Hbericbiiﬁe
0311 biefer @inficbt fei bingewiefen anf bie Qhtgfiifnungen beg
preiifgifcben $inangrninifter§ in {einer %inang,rebe 130111 11.3anuar 1910
(911111.8eit11ng. Sir. 34): ,ﬂBir 1niiﬁen aber am @tat feIber materieIIe
@151113111e1re11 aufricbten, 11m einer iiberma'fgigen ﬁiia1ifprncf)naI%111e
1.1nferer Lifenﬁabnnermaitung bnrcf) bie' anbern Steﬁnrté e1'1tgegen5111nir‘en.
(632% [)eifgt 1a @nlen nacf) QItIJen tragen, aber id) 11111f3 1)ern0r'[)e11en: ($35 ift
ein ‘i1n1na11enter SUEangeI bei? @taté’», bafg bei ben grofgen Qietriebéverrnak
tnngen, bie numiBuléifcfﬂag beg QBirtiebaftﬁeben?» abba'ngen, i1n111er gnte
unb iebIecﬁte ﬁabre mecbieIn merben, 1111b bie @efabr 11efte[)t, a11‘f bennur=
iibergebenben, iebr baben lleberfcbiiﬁen gnter sabre banernbe, aIfb nirfﬁ
nuriibergebenbe 2111§gaf1e11 511 bafieren”.
ab? aacb biermit im innigen gniammenbang fﬁr ben (5i11111115 ber
ftabtiicben @emerbebetriebe anf ben @efamtbanéba'lt ber @ta'bte.
@rnnbiéib'lieb fommen in Setracbt bier 21rten ban isbnbé, namIicb
ber @rnenernngéfonb2, ber @rmeiternngéfnnbé, ber 81e1erbe: nber
21n§g1eicbfnnb§ nnb ber Slietriebé‘ionbé. 25‘ei ben 233erfen ber meiften
@ta'bte treten nné einige bieier $egriﬁe entgegen, aber in recbt
beriebiebener 23enntgn1ng. 23‘ebnr aui QEing-e'lbeiten naber eingegangen
merben fann, erfcbeint e2 beéba‘lb 5meefmaéig iomeit mbglicb baéé
28e1en ber genannten %0nb§ 511 erbrtern 1111b ibre 23ebentnng unb
Slntrnenbigfeit im a11gemeinen 5n nnterincben.
3111'. ben 25‘egriﬁ beg Qirneuernngéfonbé gibt bai‘»v ‘Qe'aticbe
@a11be15ge1e9bacb in § 261 8111. 3 einen 21nba11§bnn1t finer mirb
ba?» 28eien beé @rnenernngéionbé Ti'ir bie 21ftienge1e111cbaiten Teit:
gefteﬂt, anb ba gerabe bie'ie ben ftabtiicben @emerbebetrieben mobl
am na'ebften fteben non a11en C{510r1nen ber @anbelégeieﬂirbaiten,
10 biirite e6 nnbebenfIieb iein ben ﬁbegriﬁ beé 5;. 01.2% bierbin 511
iibertragen. 21acb bieiem ift ber @rnenerungéfonbé bag ﬁorrelat fiir
bie bnrcb 21bnnbnng ber 211-11agen unb ionftigen nicbt 5ur 2Beiterber:
a'ufgernng beftimmten @egenfta'nbe gegeniiber bem 21nicbaﬁnng§¢
bber @erfte‘l'fnngépreié entftanbenen 2JEinber111ert. Sn erfter Binie
mirb man bier 511 benfen baben an bie rein tecbniicbe 21b11ngnng,
bie natnrgemt'ifg im Eaufe ber 8eit bei jeber SJRaicbine, jebem (be:
banbe unb ebenin 5. 25‘. beim Siobrnetg, ber 22ah'er1eitnngen, ben
Qeitungéamagen ber 031e1'tri5itr'ité1ner1e, ben @51eiéanIagen ber @trafgem
babn, ibrem r011enben 2.11ateria1 1111b bergl. eintritt, unb 1ne1cbe iiber
fargere bber Iangere 8eit abgefeben bon grnifcbenbnrcb erfr1rber1i1ben
Siebaraturen eine @rnenernng erforberIicb macbt. 2111 iicb mare es?»
benf'bar bieie 21ebaratnren unb (Srneuerungen, 10 Inie fie anftreten,
ané ben 1an‘fe11ben EDiitteIn 511 beftreiten, unb e?» mare bie?» faufe
manniieb mie mirtitbafﬂicb nnbebenflicb, menn 1111b iorneit bierfr'ir
in iebem $abre nngefa'br QIeieb bbbe 2111itte1 in 21nfprucb genommen
1'r1erben. 3n gerniﬁem Ilmfange, namIicb ininnieit e?» iicb um immer
niieber borfnmmenbe fIeinere ERebaratnren unb @rnenernngen
banbeIt, ift bie?» iieberIicb ber Ygaﬂ, unb inibmeit ift e5 ba?» einiacbfte
1111b beébaIb aneb glneefmiiﬁigfte, menn biefe Sfiebaratnren aué ben
Ianfenben @innabmen beftritten unb a1§ 23etrieb§anégaben gebnebt
merben. 21nBerbem treten aber mit teiItbeiie recbt erbebiicber 1111’
regelma'ﬁigfeit an bie 28erfe groBe @rnenernngen ober Sieparatnren
__56__
beran. ﬁe STeﬁeIanIage 1111113 3. $3. erneuert, nber bie Emafcbinenane
1age eriebt 1nerben.‘ ﬁe Hbernabme ber biermit berbnnbenen Raften
auf bie Ianfenben @innabmen nnirbe nnertra'gﬁcbe 6cbman1ungen
in ben 2§etrieb§ergebniﬁen 5ur %01ge baben, nnb bie @ecfnng biefer
llnfbften ans? 21n1eiben nn'irbe bie befinitibe ‘5eft1egnng einer a11¢
mabIicb eingetretenen 2%ermbgenéberminberung bebeuten, menn
nicbt ber 2111fcbafinngérnert ber eriegten 21n1agen bnrcb 21b1cbrei¢
bnngen barber gebecft mar b'be'r iilr ibn bnrcb ‘Jyonbéaniammlnng
ein (begenmert gefibaﬁen roar. Sgier ift aber nicbt a11ein an bie tecb;
nifebe 21bnnbnng 511 benfen. Sgierbin 111 in meiterem 6inne bieImebr
ancb 511 re1bnen eine gemiﬁe mirtfcbaiﬂicbe 21bnnbang1), meIebe baa
burcb entftebt, baB 5. 58. 211a1cbinenin101ge nener @rfinbnngen nnren:
tabe1 unb be§ba1b mirticbafﬂicb nntangIicb merben, 0b1nob1 iie rein
tecbnifcb genommen nocb iebr gut 511 gebrancben maren. @aéieIbe
1ann bei @ebiinben 5ntreﬁen, inenn biefe infoIge eriorberIicb merben:
ber @rmeiternngen megen SlSIatgmange'Ié» an‘fgegeben merben miiﬁen,
1111b eine anber‘meitige 2§ern1enbang infoIge ibrer @igenart niebt
tnnIicb iit. @uber it'lbrt in ben61briften bei? SZlb‘ereiné fiir 605ia1b0111112)
eine,gan3,e 91eibe bun 21‘ei1b1e1en bier‘fiir an, 10 5. 2%., bag @agen eine
erft 1886 erbante @aéanftalt bnrcb einen 2Eenban eriegen mn‘Bte,
1'n0bnrcb ein groBer ieiI ber aIteren 21n1age mertIoé mnrbe.
ﬁber bie Spbbe ber 28etrage, meIcbe fiir ben iabrIicb grmebmenben
2Jkinbern1ert infoIge teebniicber nnb mirticbafﬂicber 21bnnbnng in
21nrecbnnng 5n bringen iinb, Iaﬁen iicb a11gemeine @1rnnb11'ibe nicbt
anﬂteﬂen. ﬁe tecbniiebe 21bnnbnng ift eine recbt bericbiebene 1e
nacb ber 21rt beQ ($5egenftanbe5. 21ber immerbin gibt e6 in bieier
Siicbtnng nbeb getniﬁe @rfabrnngéia’be. 23ie1 iebtnieriger ift bie 21b¢
iebagnng fiir bie mirticba’fﬂicbe 21bnnbnng, n10 abgeieben ban ber
23etrieb§art nnb InfaIen QEerba'ItniHen webblfernngggnnabmel
(brmeiternngéfabigfeit be; ﬁerfé!) ancb reine 8nfa11§momente (©re
finbnngen!) eine erbebIicbe 911011e ibielen. 22m ani eine bringjibieﬂe
Tgrage fann bier nocb bingerbieien merben, namIicb bie, 0b beftimmte
feftftebenbe $rog-entiabe in 21nrecbnnng gebraebt merben foIIen
ober 5011 $abr 5a $abr 511 beftimmenbe 23etr1lige. Qberabe bei ben
ftabtiicben 23etrieben g1a11be icb einer br05entua1en $eftiebnng ben
mm in 6c1)r. b. 23. f. 6 %b. 1281 6 94 fpricbt bier nun
,,6icberbeit§funb£3” i111 @egenfab 511 ,,C$5rneuer11ng§fonb§in engerem 6i1111e”
fiir bie tecbnifcbe 21111111311119.
2) a. a. D.

_5'7_
2§0r511g geben 511 1011en, ba iie mir bie grbfgere @arantie 5n bieten
icbentt, baf; obne Eliﬁeﬁiebt. ani bie @rgebniﬁe beé 25etrieb§jabre§
(1‘. 11nten) bie 21bnnt§nng nnb bie barin Iiegenbe %ermbgen§=
minberung binreicbenben 21a§g1eicb Tinbet. @en 21bnn§ungen fann
21ecbnnng getragen merben in 510eiiacber Sorm; einmaI burib bie
21111a1nm1ung eineé biegbegﬁg'licben Sbnbé, melcber a1<3 @egenrnert
gegenﬁber ben 211’tiba auf ber 23a11101eite ber 2Ber1§bilan5 ericbeint,
ober aber in Sbrm non 21b11breib11ngen, nieIcbe in einer $erabieg11ng
ber 21‘ftibnaerte befteben. 53b ber eine 0ber anbere 218eg getn'cibIt mirb,
— in ber SReQeI mirb ber 1e1§tere eingefcblagen — ift g1eicbg1'i'ltig.
(532 banbeIr iicb bier ei1'1gig unb a11ein 11m einen TormaIen lintericbieb
in ber SBucbnng. @rfterer 28eg bat bie11eicbt ben 2§0r1e11 einer grbfgeren
11berficbtfi'1r ben, ber bie 25‘11angj nacbpm'ifen 10111.1) 23a e5 ficb bei
ben 21bn11b11ngen nm e111e 23ermbgenéminberang banbe1t, miiﬁen
iie, 10en11 eine 2§ericbIecbterr1ng ber 23erm0gen5b11an5 beg 2Ber1e€~
— 1111b bamit ber 6tabt -— bermieben merb-en 1011, nnter aIIen 11m:
fta'nben beriicfiicbtigt merben, ancb menn ein bierfiir anéreicbenber
ébetriebéiibericbni; nicbt ergieIt 111.2) (ébentneﬂ ift eben ein QEerInTt'
bblfgntragen 0ber ba?» ‘Eefig-it 1111113 bnrcb Snicbr'iﬁe an?» ben anberen
1a111enben (Einnabmen ber 6tabt gebecft werben. @a'afig, 1‘0 5. 23.
beim 2%er1iner (85a610er13), finbet iicb eine %erqaicf11ng 5miicben ber
21111e1be111g11ng anb ben 21b1cbreib11ngen, inbem bie ﬁlgnngéqnbte
ber 21biebreibnng§1nmme begttn. ber 81110enb11ng 5am @rneuernngé;
Tonbé entnommen mirb. Sgiergegen ift an 1icb niebt?» eingnmenben.
11111111 mug nnr berIangen, bag in bieien Cfyr'iIIen bie 21b11bre1bnng6:
inmme begin. grnnenbnng 11m einen angemeﬁenen ﬁIgnngébetrag
bbber iit. 21111 bie Sgbbe ber angemeﬁenen ﬁbgung 1ann‘i1n 81ab1nen
bieieé ﬁnma’é nicbt 111iber eingegangen merben. (56 gelten in bieier
.iji1-1iicbt bei ben 21111eiben 1111' bie ftabtiicb-en 0§e1nerbebetriebe bie
a11ge1neinen @runbitibe.
2Biibrenb es? 1icb beim ﬁrnenernngsionbé 11m bie 2111111m111111ng
beg @egenrnerteé 11'1r bie bnrcb 21bnnbnng entftebenbe 2%ermbgen§:
11 5.11111111‘1101111'1'11 finb bie 21bfcbreib1111gen nicbt nnr 511 erftreefen 1111f
bie 11rfpriing110be 2111111ge, fbnbern ancb 1111f 01131191111111 ber ipiiteren Sabre
(fiebe ancb Sl‘t‘nber a. a. D. 6 94.)
‘ 2) ©ben1'0 111 eg nnerbebIicb, ob bie 2111111ge awf» 2.1111eibe11 0ber 11112
eigeuern $er1n'0gen ber 6tabt gefcbaﬁen iit. _
3) 32111501 11. a. E). 6 100: ‘Eem nacb feften $105e11111'i15en er1nitteI=
ten 05. S. flieigen nacb-Qitat 1906 - 3036000 213. 511, 1000011 Tiir 61b111be1'1=
tiIgnng 1211000 23113. entnommen merben.
_58..__
berminbernng banbeIt, 1011 ber (érmeiterungﬁonbé $ermbgen an)
1amme1n 11'1r er1-nrber1icb merbenbe 21a§bebnnngen beg 28er1e§
ober 21e11gr1'1nb11ngen. 60 5mec1'maﬁig unb mﬁn1eben§>10ert ein
1011ber ancb rege1ma'131g i1t, namentIicb bei 2Ber1en, bie grofge ﬁber;
11111111 e abiner1en, 10 1ann er bbcb nicbt a1?» ein 1111bebingte§ (br’forberniéi
begeicbnet merben, ba e5 nnbebenﬂieb er1cbeint bie 1‘Do1ten 101'cber
@rmeiternngen nnb 2Eenan1agen ané 21n1eibemitte1n 5n beftreiten.
ﬁe Sbotiernng unb 111§>be10nbere eine reiebe ﬁniernng eineé 101cben
Sonbé 1nn13 10gar ent1cbieben bernrtei‘lt merben, menn bie 10n1tigen
c{yinangberbé'11tni11e einer 6tabt 11ng1'i111tige 1inb. @arin, ba13 bie
biergn bermanbten ﬁber11bi'111e 5ur C@ecfnng ber 1an1enben Sinange
beb1'1r111i11e nirbf berangegngen merben, Iiegt eine nngerecbtfertigte
Se1a1tnng ber @egenmart gugnn1ten ber 8111111111. 0'?» 111 bie?) bann
eine 1inan5; unb 0011210ir111ba11111b nnberecbtigte ‘lbe111nrierungé:
b01itif'. @a51e1be Q1111 aber aueb bei1i‘nangie11gnt1tebenben0§emeinben,
menn bie 81110ei111ngen an einen 101cben Sonbé eine angeme11e11e
.110be 1'1ber1cbreiten. Sm groben 11nb gangen mirb man 1rei111b bie
($5e1abr eineé 1n1cben 11berm1111eé3 recbt niebrig ein11ba'15en b11r1en
1nege11 1e1ne<3 05in111111e€ 11111 bie 6tenerbbbe 11nb beé; baburcb in;
tere11ierten @in111111eé ber 6tabtbar1amente.
Qiine erbeblicbere 20ebe1111111g fommt 101eber bem 21e1erbe10nb§
511. 2111eb 11"1r ibn gibt ba?» SQ. @. 2%. in ben 23e1timm1111gen 1"1ber bie
211tienge1e111cba11en eine @e1in1110n, inbem eé in § 262 1agt: MQnr
$ed‘11ng eineé an?» ber 2511ang,1icb ergebenben 2§er1111te§i1tein 21e1erbe¢
10nb§ 511 biIben.” 2EamentIicb in 23e511g a111 bie 1tabti1cben 23etriebe
1011b eine meitere Snterbretation beé 25egri11e§ angebracbt 1ein.
21111111 mn13 bier unter 22e1erbe10nb§ ber1teben einen 21nég'1eicbéfbnbé,
einen Sonbé a110, ber 510ar ancb in er1ter Slime 5ur Ebecfnng 0011
2§er1111ten 5n bienen bat, ber bann aber aueb bie bnreb bie 120m
111111111r1ebman1ungen anbermeibIicb gegebenen 2§er1cbiebenbeiten
in ben Sabre§11ber1ebﬁ11en ané'g1e1'cben 1011. QBie ber @rnenernngée
10nb¢3 bie @nt1tebang 1011ber 2§er1cbiebenbeiten ein1cbr1'in1'en 1011,
10 1011 ber 21e1erbe10nb§ ober mie er ent11precbenb 1e1ner 21n1gabe
be11er genannt mirb, ber 2111§g1eicb§10nb5 bie troicsbem bbrfommenben
11nter1cbiebe t11n111b1t an§g1eieben unb 10 babin mirfen, baf; bem
,2511bget ber 6tabt an?» ibren 05emerbebetrieben m6g1ieb11 g1eieb bobe
8111cbﬁ11e 51111ie11en. @arané 1cbon ergibt 111b, baf; bie jabrbeben
81110ei1nngen an bie1en Sonbé recbt ber1ebieben 1inb, unb baB bie
_.59__
burcb1cbnitﬂieben ,81110enb11ngen gering 1e111 11111nen, 10ba1b ber c(yrmb?
einmaI eine angeme11ene @bbe erreicbt bat. 211?; eine nnbebingte
inotrnenbigfeit tvirb man ba?) $e1teben 1011ber 2111?g1eid)?>10nb?~ nicbt
begeicbnen 15nnen. Sm Sntere11e be? @ﬁe1amtbauébaﬁeé ber 6ta'bte
1inb 1ie aber 5me11e110? miin1cben?10ert, mbbei ibebocb 11'ir ben @in5e1’
1a11 bie Srage 511 brii1en 111, 0b 11'1r ieben ®emerbebetrieb ein 101cber
Sonb? 511 erricbten i11 0ber 11'1r 1111111111116 05emerbebetr1ebe 5111ammen
0ber gar nnr ein grb13erer 21n<3g1e11b?>10nb3 11'1r ba?, ge1amte Sinange
n1e1en ber 6tabt. Scb g1a11be, ba13 rege1ma131g ba? 1egtere 1301511;
gieben 1ein mirb, ba manebmaI ein gemi11er 21n?g1eicb 1111) 1111011 bareb
520mbe111a110n 5mi1cben ben e1n5-e1nen Sinangjqneﬂen ergibt, inbem
bie eine reicber 111e131, 'menn bie anbere geringere 2I11?>beute gibt,
unb ba aucb abge1eben bierbon ein gemein1amer 21n?>g1eid)?10nb?
Inegen ber er10rber111ben 6banne 5mi1cbe11 bem %e1tanbe unb ber
3n ermartenben @5cb1tbean1brncbnng niebriger 1ein fann a1? bie
611mme ber1cbiebener (51n5e110nb2.
23eim Slietrieb?»10nb? 111111e11,111b banbeIt e? 1111) 11m einen 230rrat
0011231111e1n, 10e11ber er1nrber11¢b 111, 11111 boriibergebenb 2111101‘ber11ng en
gerecbt 511 merben, inenn ent1brecbenbe @innabmen 5. 81. nicbt 5ur
§Ber1iignng 1teben. Qiin 101cber Snub?» 111 in 1ebem Setriebe er1nrber:
111b, menn man nicbt gegnmngen 1ein 10111 jeben 21ngenb1111 510ar
fur51ri1tigen aber 011 recbt tenren Sbrebit in 21n1prncb 511 nebmen.
ﬁe 21011be11big1e11 be? 2>‘etr1eb?10nb? 10nrbe a111 bem 01tbre111311cbe11
6tiib1etag 1m S1111 1910 eingebenb erbrtert, nnb 1te111e 1icb bier
bie grnfge Wiebrbeit a111 ben 6tanb11111111, ,,ba13 10'11be Sbnb?» bnrebaué
11otmenbig unb 11"11 bie 6tabte bon groﬁem 2§0rte11 1eien.” 1) 21ber
ancb bier tancbt mieber bie Srage a111, 0b @in5e110nb? 0ber 1tatt beren
ein (5e1amt10nb? 11'1r bie ge1amte Sinangbermaﬁung ber 6tabt.
8etéterer bat ben %0rtei1 ber S2abita1er1barnié, ba er niebriger 1ei11
'fann a1? bie 611mme ber 101111 511 10rbernben (5i115e11011b6. EBei
grnBen 5Betrieben namentbeb n11'1rbe aber bnrtb einen 1011ben (be:
1am110nb? ber 0§e1cba1t§gang 511 1ebr bebinbert merben, unb 1111113
bann @1113e11011b? ber 2§0r511g gegeben tnerben. 233a'brenb bei ben
anberen Snub? 1icb 1cb0n an? ibrem 28e1e11 ergibt, ba‘é ibre Qotiernng
regeImtiBig an? ben (Sinnabmen er101gen 1111113, er1ebeint e3 beim
SBetriebﬁonbé aucb nnb'ebenﬂicb, 1nenn er an? 21111eibemitte1n
be1cba11en 1111rb.
1) (£0111. Sabrb. 1910 6. 608.
ﬁe'b0r11ebenb erbrterten Sonb? 1inbe11 1111) a11e bei ben einen
0ber anberen ber 1t1'ibti1eben ®e1nerbebetriebe, obne baf; 1ie aber
immer in obigem 6inne 511 ber11eben 1inb. 0;? 9111: bie? namentIieb
00m (brnenernng?10nb?. 811r1'11151111'1bren 111 bie? 511m groﬁen $ei1
baran1, baE) bie 28er1'e einen Sonb? baben, ber ber11biebenen ber
0b1gen 310e11e bien1tbar gemaebt 111. ﬁe1e 2§er1n1111111ng gibt ben
2Ber1en 1a 5111ar in gemi11er @in1icbt eine grb'ﬁere 2>‘e10egang?¢
1re1beit, anber1eit? mirb bierbnrcb aber ba? 2311b erbeb1icb bermi1cbt.
ﬁnger 1) 1agt be?ba1b m. (5. mit 21ecbt, baB e? 1m a11gemeinen ricbtiger
noiire bie 21111gaben, meIcbe ben ei115e1nen Sonb? 0b1iegen, ,,aneb
anBerIicb getrennt 511 baIten, nm 2§er101rrnngen unb 11115nreicbenbe
811menbnngen an bie ner1cbiebenen 810e11e 5'11 bermeiben.” Sleiber
111 b1e?, 10101211 511 1eben, bei 1einem eingigen 218er1e bnrcbge11'1brt.
2Jiange1? einer ancb nnr einigermaben einbeitIicben 05e1ta1111ng
be? S0nb?10e1en? 111 eine bergIeiebenbe c13ar11e111111g 11nm0g1icb. 03?
1011 be?ba1b im nacb101genben, 11m menigﬁen? ein gen1i11e? ﬁIb
bon ber 23rari? ber 1ta'bti1cben 0§emerbebetriebe 511 geben, 11'1r einige
bon ibnen be? na'beren nnter1ucb1 merben, mie 1ie 1icb 5ur Srage
ber S0nb?b11b11ng berbaIten. 2111gemein 111 1e115111te11en, baB in nnr
gan5 unguIiingIicber 28ei1e bie 6tiibte 11'1r ibre @etnerbebetriebe
211e1erbe10nb? in obigem 6inne gebiIbet 0ber 101111 @inricbtangen
getr011en baben, 11m 1eine Brnecfe 511 erreicben, ba13 28etrieb?10nb?
ban1iger inenn ancb bnrcban? nocb nicbt regeIméiBig borfommen,
bab bagegen, 1010eit ba? SRateriaI eine 2iacbpr1'i111ng ge1tattete, a11e
1t1'ibti1cben @emerbebetriebe in Sorm 0011 21b11bre1b11ngen 0ber
21n1amm1nngen 0011 C5rnenernng?10nb? bie 2§ermbgen?bermine
bernng bnrcb 21bn111§11ng an?5ag1eicben 1neben mit 2111?nabme 0011
91e1, meIebe? ba11'ir bie @rnenerangen nnb 2ieparatnren an? ben
@infiinften be? Sabre?, in bem 1ie nbtig merben, becft. 2>‘e10nbere
(Ermeiterungﬁonb? 1inben 1icb and) re1atib 1e1ten; ban1ig 111 aber
beren 21111gabe ben 03rne11er11ng?10nb? mit fibertragen.
Cbine @egeniiber1te11nng ber 21b1cbreibnng?quoten begm. ﬁna;
tinnen be? @rnenernngﬁonb? 111 eben1a11? ni‘cbt tnnIicb, ba 11111 bie1en
ban1ig mie ge1agt anbere S0nb?510e11e be11n1'11111 1111b. 50a511 fommt,
baB bie 21b1cbreibnng baIb naeb bem 21n1eba1111ng?mert ba1b 11acb
bem Ebucbrnert berecbnet mirb. SDaB in 1ebterem SaIIe re1atib bbbere
28r05en11abe ber1angt merben m1'111en, Iiegt an1 ber Sganb. 21bge1eben
ﬂ. 5. e. 97. a
_61_
bierbon aber miirbe eine 101(be 61egen1'1ber11e11nng ancb nnr einen
recbt 510ei1e1ba11en ﬁert baben, ba bie @bbe ber 21b1cbreib11ng nicbt
nnr bnreb bie 21rt be? @egenftanbe? bebingt 111 — baf; in bie1er
2111btnng gerbi11e 05r1abr11ng?11'1'15e be11eben, 1011rbe 1cbon nben er=
mabnt —, 10nbern a1111) bnrcb manebe anbere Smomente, mie 21Iter,
Snten1itat be? %etriebe?, DnaIitiit nnb bergI. 6e1b11 11"1r ba? ein5e111e
2Ber1' 111 e? be?ba1b bem Sernerﬁebenben nicbt 1nbg111b 511 benrteiIen,
0b bie gemacbten 21b1cbreibnngen a1? an?reicbenb eracbtet merben
10nnen 0ber nicbt. @enane Qenntni? ber 23erba'11n111e be? betr.
2Ber1e?, gebaart mit meitgebenben 1acbmanni1cben (5r1abrnngen
ma're biergn er10rber111b. 2111? bie1em (55r11nbe mirb ancb babnn 21b:
1tanb gennmmen bier11'1r bie 05rgebni11e berg1eicbenber llnter11nbnngen
31b11cben 1tabti1cben 65en1erbebetrieben nnb ent1breebenben 21111en¢
ge1e111cba1ten mitgateiIen, ba bie >6ebeatnng ber gemonnenen
31e11111a1e eine minimaIe 111. Seben1a11? ergibt aber eine 101cbe Hater;
1111b11ng, bag rein 5111erm1'1111g bie 1tabti1cben @elnerbebetriebe im
groben unb gangen in bie1er @in1icbt nicbt binter ben 21111enge1e11=
1eba1ten 3nriicf11eben.
Sn §Bonn 1) merben beim 031e11r15111'it?1nerf 21b1cbreib11ngen
bnrgenommen, meICbe 1m 10e1entIicben 1icb 5mi1cben 11/2 unb 10%
be? 21n1cba1111ng?10erte?2) bemegen. ﬁe 05e1amt111mme betrug
07/08 bei einem 21n1cba1111ng?merte 0011 2004101,28 2J1ar1'
156 830,19 51111111, innrin aber eine ﬁIgnng?q1mte non 21 727,35 212ar1
entbaIten i1t. 211115erbem be1tanb am 31. 3. 08 ein @rmeiternngﬁnnb?
11011 76 131,23 211mb ber aber 1m Iegnen Sabre mit 81110enb11ngen
nicbt bebaebt morbenmar. §Beim 26a11er10er1 5801111 1011rben3) a111
einen 21n1cba1111ng?1ner1 0011 4356 370,23 211ar1 21b1cbreibungen
1) ‘ﬁe 11aeb101ge110011 (gin-50111111161111111011 1111b ben ‘Bericbten ber 11e=
treffenben 2530r1'e entnnnnnen. Siir 111e11er1‘? §111ater1a1 111irb 11111.11111301‘
a. a. D. 6 99 0er1111e1e11.
2)@5eb1111be . . . . . . . 11/2‘1/0 211111111011 . . . . . . . . 5 °/O
€®an1p11na1cb111011101101 . .10 ,, Sleitnng?11013 . . . . . . 4 ,,
@1eftr.$eil . . . . . . ,, ﬂberfgeuge . . . . . . . 5 ,,
2111‘1111'11111110ren . . . . .10 ,, $1111)1n1a11era111age. . . .10 ,,
@rabiermerf . . . . . . 10 ,, 81111er . . . . . . . . .10 ,,
Slanﬁran . . . . . . . . 5 ,, Def1e1111. %e1e11cbtnng?a111.‘10 ,,
3) ﬁner, 10mie 1111 1111ge11be11 begieben 1icb bie 2111gabe11, 1001111 nicbt?
anbere? nerlnerft, 11111 1907/08, began. 31. 3. 1908.
borgenommen non 2--1O°/O 1) mit einfclﬂiefgﬁcb 69 000 2mm EEiIgung
150 876,79 Warf. QIuBerbem beftanb bier nod) ein @rneuerungé=
fonbé, bem 5ugefﬁbtt maren 28 282,07 imarf, unb ber ﬁcf) auf
118 127 2mm belief. ﬁber ben 8mecf bieieg %0nb§ Iiefg ficf) aué bem
%‘ericf)t nidﬁé entnebmen. (65?» iii abet angunebmen, ba?; er fomobl Tilt
@rmeiterungen bienen i011, aIé and?) T111: aufgerorbentﬁcbe unb unnor:
berfebbare @rneuerungen, mnfl'ir man einen getniﬁen Qﬁetrag in
Sieierbe gebalten bat, obne ibn in 33mm Don ﬁbfciyeibungen auf bie
eingjelnen @ruppen non Qﬁetriebégegenftdnben 5n berteilen. Qiei
ben @aéﬂ, QBaﬁerﬁ unb @Ieftrigitﬁtémerfen Don Eﬁocfmm murben
auf bie ‘8 u (I) m e t t 2 3—121/,% begm. 2—10% 595m. 8— 10% 2)
abgeicbrieben. QIuBerDQm beftanb bei jebem ber brei Qﬁerfe ein nicbt
unexbebﬁcber Siefernefonbé, ber abet mic ber sBericijt 5eigt and)
5m: ‘lv‘egablung Don SIEeuanIagen berangegogen with.
$6111 QBaﬁermerf @rfurt beftebt ein Eﬁiicffagefonbé, bem bie
1°yunfti0nen beé @rneuerung§fonb§ 5ufnmmen. Sbm Inurben
40 000 mm unb bie Sinien bei; Ivereits“; angeiammeltcn {gmmbé 3,11:

1) (Einfricbigung . . . . 5 0/0 iRnbrIcihmg . . . . . . 21/2‘70
@traBcuanIage . . . . . 5 ,, @Ieftr.Q30Icnc5tuug5anlagc10 ,,
9J1afc5iucn=u.ﬁcﬁcﬂ)au?> . 2 ,, ﬁclegrapfwnlcitung . . .10 ,,
$ruunen . . . . . . . . 2 ,, 9Jhvbilicn1mb @crdtc . . 5 ,,
ﬁeﬁelanlage . . . . . .10 ,, %11[)rnmrf§wage. . . . .10 ,,
Wafcfﬁncnanlagc . . . . 8 ,, QBaﬁcrmcﬁet . . . . . .10 ,,
Qauffrcm . . . . . . . . 5 ,,
2) @aémerf:
©e5iiube . . . . . . . . . 3°/0 @umpfmafcbincn . . . . 6 "/0
Qhaparate . . . . . . . . . 6,, Q5LI§L5TCII . . . . . . . .121/2”
(Bafometer . . . . . . . . 5,, QBaﬁcrgaﬁanftaIt . . . . 6 ,,
Qeitungcn . . . . . . . . 5,, @ifeubabuaulugcn. . . . 6 ,,
@agmcfer . . . . . ' . .10” @traﬁculatcrucn . . . .10 ,,
Smubilien . . . . . . . . .IO,, @crh'tc . . . . . . . . .10 ,,
Qﬁaifernwrfz
@5runbbeﬁg . . . . . . . . 2"/0 QauQIQuIQQQ . . . . . . . 3°/0
©cbiiube . . . . . . . . . 3,, ©0cbbuﬁiu . . . . . . . . 3,,
SUkafd). u. iBnmp . . . . . . 6,, ‘lh‘nuncu nub $3M. . . . . 3,,
mﬁlﬂenfgftem . . . . . . . 5,, ielcgr.=91n[agc . . . . . .10”
QBaﬁermeﬁer . . . . . . . 10,, gcuermclber . . . . . . .10”
(ﬁeriitc . . . . . . . . . . 10,, 9Jh>bilicn . . . . . . . . .10”
Q§elcucbtungr8=$llnlagen . . .10,,
(S‘Icftrigitiitgwerf‘:
(Sjebiiubc . . . . . . . . . 3"/0 $umpfmafd) . . . . . . . .10"/°
@ampffeﬁd . . . . . . .10” Qtffumldaforcn . . . . . . 10,,
@911.-9RafcI). 11.C‘5cI)aItau[g. .10” StiiIﬂauIaQQ . . . . . . . . 10 ,,
8iibler . . . . . . . . . .10,, @IeicMtrumncg . . . . . . 5,,
imobiﬁen . . . . . . . . .10” QBel‘fgeugc . . . . . . . . 10,,
Qeﬁenﬂ. i3eIeucbtung . . .10,, ($5crtite . . . . . . . . . . 10,,

__63__
gefﬁbrt. (.Eine pro5entuale ‘5efﬂegung nad) ber @6be be?» Qinfcfmffungéﬁ
abet SBuchtnerteé‘» Beftebt nicbt.
§Bei ben @uiéburger @aéﬁ, QBaﬁer: unb ﬁleftrigitdtémerfen 1)
mirb abgefeben non progjentual feftftebenben ﬁbfcbreibungen
(2—15%) 2) ein @rneueumgéfnnbé gebilbet, makbmn am (Enbe iebe?»
®eicbdft§jabre§ bie ﬁbericbiiﬁe glmgefﬁbrt merben, bie nerbleiben,
nacbbem bie ben QBerfen obliegenben im (ﬁat borgeiebenen Qlbgaben
an bie @tabt gemacbt ﬁnb. @ie EBetrc'ige merben im nacfﬁolgenben
gab]: 511 auBerorbentIicben Qlbicbreibungen benugt, bie alfo nariieren
1e nacI) bem (Ergebniﬁe beg 2§0rjahre§ @er in eingericbtete @rneue>
rungéfonbé bemirft bemnad) gleicf)5eitig in gemiﬁer SRicbtung einen
QIuQQIeicE) in ben @innabmen, meldje bet cfyinangpnermaItung ber
@tabt cm?) ben GJ‘emeYBeBetrieBen 5ufﬁeﬁen.
SEei ben @tra‘éenbabnen ber @tabt 9J2ain5 finben mir neben;
einanber (@rneuerungéfonbé unb SQefernefonbé. $eiben merben ibre
3inien unb idle beé; <b‘etriebéﬁbericbuﬁe?» 5ugemieien. ﬁber @rneue:
rungéfunbé» bient geméifa %ericf)t fﬁr bie @rneuerung beg Qberbaueé,
ber Qeitungen unb ber i13etrieb§mitte£ @er Si‘eferbefonbé {011 baburcf)
au§gIeicbenb auf bie ﬁberfcbﬁﬁe einmitfen, bafg an?» ibm "auger,
nrbenﬂicf)e, butch ungeinbbnﬁcbe llmftiinbe (92afurereigniﬁe unb lIn:
gﬁiﬁéfdﬂe) berauIaBte QIuQQaBen 5ur Snftanbbaﬁung ber 23am unb
ber S’13einziebésmittel”, iomie anbere unbnrbergefebene $etrie5§ausk
gaben gebecft merben.
%‘eim @5aémerf @ZaﬁeI enbﬁcf) finben iicf) neben 9IBfcI)reiBungen,
bie ﬁcI) in ber gembhnﬁcben S§bbe bemegen, @“rneuerungéfonbé unb
‘b‘etriebéfonbé. @tfterer bient 5ur auﬁerorbentﬁcben (Erneuenmg unb
baneben and) gut @Ermeiterung. (51‘ ift botierf aug ben l'ibericbﬁﬁen
beé Qﬁerfé. @211 $etrieb§fonbé5 bat bie nben im aﬂgemeinen er:
iﬁrterten 3mm unb Beftebt aw? einem bierfﬁr non ber @tabk
féimmerei gegebenen Q30rfcbuf3 in Sgiﬂw Don 50 000 mm.
m bem ‘lu‘ericbt ﬁber bag @dcbiiftﬁabr 1909/10.
2) Giashnerfz @Ieftrigiﬂitgmerfz QBaﬁermcrf:
@cﬁiiube . . . 2 0/0 @ebiiubc Giebiiubc . . 2
ERetnrteubfcu .10 ,, SDhlicf). 11. ﬁeﬁci 8,,0 9Jh1fd). 11. .Qeﬁci '71/2
SDhIfcI). 11.2[ppmn 71/2 ,, @I.ﬂlEafcf).u.QLppar. 6 ,, $runnen, gum 4
. 4
N
c
\


"/0
ERnimwg . . ,, %eIencI)t.=91nL . .l5,, ERobrueg . . . 4 @(Igﬁelﬁﬂtet . . 4 ,, Qlffumufatureu . . 10,, QBaiicrmeﬁer .10 H
(SSQQmQHQr . . . 121/2 ,, 93405. n. QBcrfg. . 10,, \JJhwb. u. QBcrfg. 10 ,,
*JJEnB. n. igerfa. 10 ,, Qcitungéncij . . . 4,, @Ieftr. Eicbtanl. l5 ,,
8mm: igerf‘ft. . 10 ,, @Icffr. ﬁiﬂﬂer . . 15,, ERMJYIIQB mama 4 ,,
iRaugierauI. . . 5 ,, @traﬁcuhcI.=$2IuI. .l5,,
@Ieftr. ﬁicﬁtanl. 15 ,,
_64__
2. Qapitel.
Q30m 90If§wiYif€baffIiCb€n étanbpunfte,
I. ieif.
C230m Gﬁeredﬁigfeiwftanbpunfte.
SBei ber boiféinirticbaftﬁcben Sb‘eurteilung ber communaien
(55emerbebetriebe, inébeionbere bei ibrer ‘Bri'xfung (1116 bem @ﬁefi'dﬁée
punfte beé Qjeremigfeitépringipé mufg man grunbiiigﬁcf) untericbeiben
5miicf)en EBetrieben mit unb obne imonopolcfmrafter. @Erftere iinb
inlcbe, Bei benen ,,ber 3111)a5er beé Q§erfebr§gute§ gegem'iber einer
borbanbenen bieﬁacben Sftacbfrage a11ein baé glIngeBot reprdfentiert”.1)
@ierber gebﬁren regeImﬁBig unb miiﬁen aué 3mecfmdﬁigfeitégriinben,
mie 5n 5eigen iein with, gebﬁren bie mirtkbafﬂieb Bebeutenbften
ftﬁbtifcben $etriebe, na'mIicI) bie QBaﬁere, ®a§¢ unb @Ieftrigitiiwe
merfe, @traﬁenbabnen unb @ciﬂacfﬂe unb Qﬁefmbfe, bie aIIe, ieIbft
menu man, mag Bei eingeInen Don ibnen bieIIeicbt miigIi'cf) mc'ire,
aniang?» eine Beicbrtinfte Qnnfurreng 5uiaﬁen moﬂte, ﬁber I‘urg, ober
Iang burd) @Dnbigierung ober $~uﬁioniewng einen monopolartigen
@barafter annebmen mﬁrben.
EBei allen Dieien mug auQ @erecbtigfeitérﬁcfﬁdﬁen geforbert
merben, baf; fie ben @téibten ielbft gebbren, bamit in bie (biinnabmen,
bie berartige @etverbebetriebe abmerfen, ber @eiamtbeit unb nicht
einigen @apitaﬁften gmgute fomme'n?) §Bei feiner anberen gb‘etriebée
Torm ift bieg in gieﬂi) nn‘ﬂfommener QBeiTe 511 erreicben, ba fein

1) @aubmiirterbud) b. @t. 9&1. imnnopnl 235. V @. 850.
2) Qurb QTDeDunJ fteilicf) fagt: ,,9J}0nnpuIe finb fcfﬁimm, abet SRQ=
gicrungé= unb @fﬂbtDQUDGItIUIQQITIDIIDpDIG Tiub e6 1104) gall?) befonberé,
meiI fie am fdpuierigften 5n regulieren, 5L1 fnntruﬂiereu nben aufgldpben
finb” (a. a. $3. 65. 53). (531* Beucbtet aber gar uidﬁ, bafg e6 bie LII?» Rum
fumentin eincrfcité nub uIQ @tene1t5abIeriu anberfeité am mcifteu in=
terefﬁertc 65efamtbcit ift, meId)e bie ftiibtifcben imnnopnle in Iegter Billie
regulierf unb eine ilbermiifgigc QIUQIIUBLUIQ be?» Sﬁonnpolé Ieicbt nerbim
bem funn nub with, unb baf; biefc Gﬁefal'lxtbeit burd) bie nun ibn ermiibb
ten @tabtnernrbneten unb uuterftiitjt burd) eine einflufgreiﬁe ‘éBreﬁe nicIJt
nnr bie ﬁnntrnﬂe augiibt, fnnbern e6 aucb bei ftiibtifcben Emonnpolen
weit mebr aI>3 [lei prinateu in her @anb bat imifgftiinbe abgufteﬂen.
__65_..
iBrinatunternebmer, mag er a1?» @igenunternebmer ober aIQ iBéicbter
berange5ogen merben, ben $etrieb ﬁbetnebmen with, menn ibm
nicbt auger einer angemeﬁenen ﬁapitalberginilmg ein betrdcbtﬁcber
Hntemebmetgeminn minft. Ebiefer @erninn tnﬁrbe megen ber fefﬂene
ben S’Ponfurrengmﬁgﬁcbfeit fteté etne ungerecbte %eborg,ug1mg beé
DHICI) bag Efﬁnnnpoi ﬂkinilegierten gegem'iber ben iRicbtMibiIegierten
bebeuten, unb 5mm: and) bann nod), menu butch bie 90n5eﬁion§¢
bebingung bie SlSreiie Begrengt unb 1’0 ber QIuQDebnunQ bee“; @ﬁeminné
eine ‘geﬁeI angeiegt mirb. Sgierbei ift 3,11 beriicfiicbtigen, bafg ber
SISriDaikunternebmet in {einem eigenften Sntereﬁe regeImdBig nicbt
unte'r ben norgefcbriebenen imagimaltarif binuntergeben mirb,
bie1er abet in Bemeﬁen iein mu‘é, ba?, er ibm and) in Seiten {whet
£5bne unb Ember ﬁnbprobuftenpreiie nod) einen @etninn abrnirft.
,Bmar merben and) Die @téibte ibren mad) gIeicI)en @runbiﬁQen (111%
gefteIIten iarif 511 geiten geringerer @elbftfoften aufrecbterbalten.
Sgier fommt aber ber 5011 ben @nniumenten 511 tragenbe Webrgemirm
ber @emerbebetriebe ber (Sjefamtbeit 511 gute, bort bem priniIegierten
Hnternebmer. @a hit bemrtige 23etriebe beute regeImfiBig nut
QIftienQefeIIfdMten in SBetmcfﬁ fommen, To fommt nocf) bingu, barf;
bie QIE'tiDniire bfiufig auétniirté mobnen, unb beébalb ber Don ibnen
gegogene @eminn nicht einmal in ber @tabt, aus‘ bem er gegogen
with, fnnfumiert unb berfteuert with. @cfﬂieﬁﬁd) iﬁ nod?) bie @efahr
3,11 Berﬁcfﬁétigen, baf; bei Q§ergebung ber ﬁolxgeﬁinn ba?» mabre
Sntereﬁe ber @eiamtbeit nicht a11ein auéfcmaggebenb ift unb nicht
unp arteiiicf) unter ben beridﬁebenen SBernerbern gemiihit with, ionbern
@unﬁ unb bie $ntereﬁen ber I)erticf)enben SBarteien mit in bie Qiéage
icbaie gemorfen merben. $aﬁ ber eingjige feft 5n faﬁenbe *JRaﬁftab,
m'imIidE) bie Sgﬁfm ber ‘fiir bie QéerIeibung gebotenen ©egenIeiftung,
nicbt a11ein enticbeiben barf, Iiegt auf ber $911115 unb tit nad) ben im
@ubmiﬁiongmeien gemacbten @rfabrungen aIIgemein anerfannt.
$11 bieiem ,8uiammenbange bﬁrffe wetter bie %rage 511 erbrtem
1' ein, 05 e?» Dom ®erecbtigfeit§ftanbpunfte an?» 511 biﬂigen ift, bag bie
@tiibte bei foicben monnpoiartigen QSetIieBen bie iBreiie in TteIIen,
ba?, fie einen Si‘eingemirm abrnerfen, mit anberen ‘lﬁorten, ob bie
@erecbh'gfeit has“; 115erfd)uf3prin5ip 5uh'iﬁt ober ba§ €Bri115ip ber
aIIeinigen @oftenbecfung berIangt.1) Eba‘f; bag 3uicBuBptin5ip nicbt
1) 811 ben .ﬂ‘nften ﬁrth natiirliﬁf) and) 5n recbnen bie in 5011
iRefewcfnubg, @rncuctunggfnubé ufm. aﬁanfiilﬁenbcu ‘Bctrh'ge, fumie bie
QEergmiung unb SHmmhfatum.
._66__
in iBetracbt fommen fann, Iiegt auf bet @anb, ba e5 5meife110§ une
gerecht méire, bie wicbtabnebmer 5ugunften ber Qlbnebmer 5n Be1aften,
unb anberieité bie ftéibtiicben ,,€®ienfﬂeiftungen ben eingeInen in in
bericbiebenem Wkaﬁe 311gute fommen unb and) foniele mirtfcbaftﬁcbe
§Z§orteﬂe gemiibren, ba?; baé iBrinéip non Qeiftungen unb @QQQH’
Ieiftung burcbaué angebracbt ericheint” 1).
Db abet ba?» 5131513113 bet ﬁoftenbecﬁmg ober bag I'lbetfdmﬁe
pxingip ba?» ricbtige 111, 111 eine ber umftrittenften %ragen ber @ommue
na1politif. @ingebenber ift iie in neuerer Beit m. 28. nut hon Binbee
mannz) unb %iebfelb3) bebanbeﬁ, non benen erfterer baé ﬁber;
i®uﬁpringip auénabmbé bermitft. 91%. Q5. 511 Hnrecbt. @115 Timmy
poﬁtifcf) 5me11e110§5 norgu5iebenbe Hberiéuﬁpringip Iiiﬁgt iicf) nicht
mu: rechtiertigen, ionbern 1ft mie iofort 511 5eigen in gemiﬁet 531m
iicbt {agar gerecbter (11% bag 2311115112 ber @oftenbecfung.
311 berIangen ift nut regeIméiBig, bag ber ﬁbericbuig ber ergieIt
merben 1011, in mdﬁigen @rengen gebaIten with, unb bie @tabt 11(1)
nicbt berleiten IdBt ibre sJﬁonopMfikeﬂung 5ur @rgiehmg unangee
meﬁenet @5eminne 5n mifébrawhen.
%ei ben @511?” unb @1efttigitc'itémerfen fomie anberen 5Betrieben,
Bei benen nut ein EZeiI ber éBebﬁIferung (11% Qlbnebmer in iﬁetmcbt
fnmmt, mdbrenb etn anberer an ibnen fein unmitteIbareé; $ntereﬁe
but, mdre e23 ungerecbt, menn bie @tabt fiir nichtg unb mieber nichtéi
bie gait unb has? 51111110 bie1er %etriebe auf iicf) Ilehmen miirbe, um:
um bem (11?, Qoniument in iBetracbt fommenben Cleile ber %e551¢
ferung Cbje1egenbeit 511 geben iein SIw‘etn'hz’fnié biﬂiget 511 befriebigen,
1115 e?» innit ber {gall iein mﬁrbe. 211111; ﬂiecbt ffmnte bann ber anbere
$e'112'1qu112a1ente ner1angen. (‘50 fﬁnnten 5. 23. bie, meIcf)e SBetwIeum
brennen, forbern, baB bie @tabt ibnen bum?) @infauf beg iBetroIeumé
im gro’Ben unb beﬁen gﬁeitergabe gum @elbftfnftenpreiie (5113,11g11c1)
ber @eichiiftéunfoften) ebenin iI)r 811:1)15 nerbiIIigt, mie ﬁe e6 bei ben
2§erbraucbem non @aé unb (ﬁeftrigﬁtéit tut. GE?» inﬁrbe ba?» 511 einer
ﬁcite obne @nbe fiibren, unb anberieité 111 e?» butchaué nidjt unbiﬂig,
baB bie, meicbe 5. 23. @123 ober @1eftrigitéit berbraucben, iiir bieie
an bie @tabi ebeniogut einen iBreié begafﬂen, ber einen fIeinen
1111ternebmergeminn abmirft, Me {10 e6 beim §Bribatbetrieb tun
1) Eu fi'nt @taatgbafmcu n. @beberg a. a. $1). @. 104.
2) 91r1>citerpo1itif unb 9B11:f{c1)aft?~pf1cgc in her bcutfcﬁen ©tdbte¢
ncrmaItung 235. 2 (‘5. '76 ff.
") @t£ibtifd)e 25etrie5e in: Him Dcutfcbcu @fh'bte”.
.._67_.
miiﬁten. @agu fnmmt, bag bie1er Qﬁeminn, ber bei ben @ﬁaéérnerfen,
@Iefrrigitatémerfen, @trafgenbabnen unb etmaigen anberen nnr
bon einem $e11 ber SBebblferrmg in Qbriprucb gennmmenen ftiibtiicben
SWomboIbetrieben regeImc'i‘f'gig non ben Beiftungéiabigeren aufe
gebracbt mirb, ber ®e1amtbeit mieber 5ugute fnmmt. %erb1eibenbe
@arten fbrmen burcb facbgema'ﬁe unb non iogialpolitiicben Qirrna'gurrgen
mirgetragene 21u§gefta1tung ber $arife (ingbeionbere bei ben
@trafgenbabrrerr 1)) beieitigt ober bocb auéreicbenb gemﬂbert merben.
@ttna?’ anberé beat bie @acbebei ben Qbaﬁermerfen unb @cbIacbt:
ba'ufern, aIfs bei ben iUlonopnibetrieben, meIcbe bie gange EBebb'Iferung
511 ibren unmitteIbaren begrn. mittelbaren QIbnebmern 51151911, benen
ﬁcb beébalb feiner 511 entgiebeu bermag. Sgier bat 3meife11o§ ber
$8re1§, iorneit er ﬁber bag 5ur @elbftfoftenbecbmg er‘forber‘ﬁcbe {Raﬁ
binauégebt, bie QBirfuna einer a11gemeinerr inbireften @teuer auf
notmenbige iiéerbraucbémittel. QBer eine inlcbe grrrnbiaglicb fﬁr
llngerecbt erfb'irt, mug natiirﬁcb aw; bieiem Qjrunbe baé I'lbericbuﬁe
prirrgip bei inIcben éBetrieben bermerierr.
QBie man abet aué bem @5eiicbtéprmfte ber SlUIgemeinbeit ber
§8efteuerung fﬁr ben @taat aIIgemein 511 tragenbe 2§erbraucb§¢
fteuern in einem gemiﬁen llmfange fnrbern mug, meiI iie ben eingig
gangbaren ﬁeg barfteﬂen, um baé QIHQemeinbeirQpDﬁuIat barely
5u‘h'ibren, {0 ﬁt e5 aucb 511 biIIigerr, baB Dieie?» @rfnrberniés ber Qaftene
berteilung in ber fta'btiicberr éﬁinanwolitif baburcb gum ﬁuébrucf
gebraebt mirb, bag bei berartigen QS‘etrieben ein gemiﬁer I'lberfcbuia
ergieIt mirb. 811 berlangen ift nur, bafg bei ber ‘5eftiei5ung ber comma:
naIen @teueﬂaft bie1er 1'lbericbuﬁ ben 9Jiinberbemitte1ten 5-ugute
fommt, bag man ibn alio bertnenbet 5ur (Erbbbrmg bei“; non ber
(Sommunaﬁteuer freibleibenben Sﬁininrumé unb 5ur begreﬁinen
@eftaltung ber 8ufcb1a'ge 5ur @taatéeinfnmmenfteuer.
3n bem ﬁngebot bun 8eifturrgen gum @eIbftfoftenpreiie mare
aber and), 'rnorauf iebrm bei ben @aétverfen uim. bingemieien murbe,
eine 2§0rteﬂ§gemabrung 3a ieben, .unb ba ber llmfana ber Kt‘nniume
tion ber ein5e1nen ein recbt bericbiebener ift, miirbe bie1er %0rte11
in bericbiebenem llmfange Don ben @ta'bten ibren $11rgern geboten
merben, mag ﬁcberbcb nicbt a1?» gerecbt angeieben merben farm,
grrmal gerabe bie .8eiftungéfiibigereu regebnaﬁig bie am meifterr
@oniumierenben iinb, fie alio aucb bon ber allgemeinen QIbQabe,
1) 5. 95. burcf) befonbere Qlrbeiterfarteu, @cbi'derfarteu.


__68__
bie in bem Qlufpreié Iiegt, abioIut am ftarfften betroffen merben;
gang, anberé beébalb 1116 bei mancben ftaatlicben %erbraneb§abgaben,
bie a1§ nngerecbt be5eicbnet merben, meiI iie gerabe bie Sﬁinbev
bemitteIten am icbmerften beIaften. §Be5ﬁgbcb be? Qbaﬁerfoniumé
fer bingemiefen auf ben §8erbrancb 5n Quruémecfen (@pringbrunnen
unb bergL), in gemerbﬁcben SBetrieben, iomie auf bie mebr mit ber
@rbﬁe ber Qﬁobnnng aIQ mit ber ber ‘gEamiIie ftarf fteigenben QBaﬁere
entnabme. $ei ben @cbbrcbtbbfen fommt nocb bingu einmal, bag
burcbané nicbt feftftebt, 0b bie %1eiicbpreiie burcb maBigen ($5eminn
abmerfenbe @cbIacbtgebﬁbren megen ibre; minimaIen (Einﬂuﬁeé
auf bie @5be ber geiamten @elbftfoften iiberbaupt erbbbt merben,
ferner, ba?; iebenfaib? in ‘Bren‘éen bnrcb geieglicbe s)Seicbra'nfungen
ber aué ben @cbIacbtbbfen 5n ernielenbe @5ennnn eng begrengﬂ: iit.
(@iebe 1m erften 21bicbnitt.)
llnricbtig 1ft eé, menn man bie Qﬁerecbtiafeit beg ﬁbericbnfge
pringipeé bamit 511 begrr'inben beriucbt, Dab ben rentabIen 233erfen
auf ber anberen @eite banfig unrentab1e QBerE'e gegeniiberfteben.1)
@aé bieBe bie Kroniumenten ber einen Qberfe auf ﬁnften berer ber
anberen bereicbern.
QBenn nun aucb mic anégefi'rbrt bei ben Emonopnlbetrieben ber
@tabte gegen bie ﬁnmenbnng beg I'IbericbnBprimipeQ aué bem @ee
ficbtgpnnf'te ber @ereebtigfeit grnnbiagbcb nicbté eingmmenben 111,
in mn‘B bocb anberieité au’fé icbarﬁte bie @5e'fabr betont merben, bafj;
bie @rabte bnrcb 5n Ttarfe 21n§nn1§ung ber ibnen 1'0 gebotenen be;
quemen @innabmequeﬂen 0ber ionft bnrcb faIicbennb partenfcbe flarife
politif' beruriacben, baB baé an ﬁcb gerecbte ﬁberiebu‘éprinyp iebr
ungerecbt mirrt. QBenn 5. ib‘. Qinbemann 2) berecbnet, baf; in $~reiburg
1901 beim (bag ber an bie @tabtf'aﬁe abgefl'ibrte Eliemgeminn 44%
be?» @rnnbpreiké betrug, in nnrb man bie§ (mending a1§ eine ungee
recbt nnrfenbe 11beripannung beé I'lberfdmﬁpringipé begeicbnen
mi'rﬁen. @aéieIbe mirb man begﬁgﬁcb ber ﬁbaﬁerpreiie in Emannbeim,
.Sbannober, gBreQIan unb @fraﬁburg Tagen miiﬁen, nne bie @5eaene
ﬁberfteﬂnng bun GSrIiE unb $eic1pffnng§foften in nacb‘foIgenbcr
iabeﬂe 5eigt.

1) @a?» tut QBiebfeIb a. a. $3. 6. 189 f.
2) a. a. >9. 6. 75.
__69__
@5 betrngl)
@152"; pm cbm (55eiamtauégabe pro
begablten Qbaiieré cbm. ber @eiamtabgabe
SRannbeim . . . . . . . . . . . . . . . . . .19,3 3,0
@annober . . . . . . . . . . . . . . . . . . .16,9 2,9
ibreélan ................. . 14,5 2,7
@traﬁburg . . . . . . . . . . . . . . . . .13,5 1,7
bagegen in
@iien . . . . . . . . . . . . . . . . . . . . . .6,6 3,3
Sgamburg . . . . . . . . . . . . . . . .. 8,8 4,0
EIberieID . . . . . . . . . . . . . . . . . 10,3 5,0
QInTQabe ber @tabtbermaﬁnngen unb ber @tabrparlamente iit eé
burcb gegenieitige S’rontroﬂe bail'ir 511 iorgen, bag bie CEariie i0 bee
meiien iinb, bag iie bei ricbtiger bie Beiirnngéiabigfeit berr'irfiicbtigcne
ber iubitninng'z) einen angemeiienen aber nicbt ﬁbertriebenen ERein;
geminn abmerien. @ann iit bum @tanbpunfte ber @erecbtiafeit
nicbté bagegen eingrrmenben, baig aucb bie mnnopolartigen itabriicben
*Betriebe nacb bem ﬁbericbuiaiorinm bermabtet merben unb i0 einen
recbt miIIfommenen ,8nicbuB 5n ben itabtiimen iginangen abmerien.
§Bei Qﬁetrieben obne Sillonniaolcbarafter, bei
§Betrieben a1io, bei benen bie @tabt in ireie Sronfurreng, neben 213131;
batunternebmungen tritt, tancbt baé @5erecbtigfeitéprm51p nnr me
ioiern aui, a1§ man ber1angen mufs, bai3 bie @tabte ibre innitigen
EIJEitteI nicbt benngen, um bnrcb ‘léreiébriicferei ben @onfurrenge
betrieben ben Bebenéiaben abguicbneiben. (5?» fommt be§ba1b icbon
bei bieien SBetrieben a11ein bag Ubericbuiapringp in Q3etracbt, mobei
iebocb bie SIi3reiie nnr i0 511 iteIIen iinb, baig ein angemeiiener Untere
nebmergeminn ergieIt mirb unb ancb ben Sbnnfurrengbetrieben ein
inlcber mbgbcb bleibt, nicbt aber i0, bai; bie etma burcb @brrbigiernng
nber innit bun ber SBribaffonI‘urreng, 511m Sﬁacbteﬂe ber Roninmenten
ﬁ'miﬂicb iibermaing bocb getriebenen ‘Breiie gebaIten merben fb'nnen.
@dﬁieﬁlicb iit bier nncb aui einige (5eiic1)t§pnnfte bingumeiien,
bie i0m0b1 QSetriebe mit mie obne Elﬂnnopmmara‘fter betreiien. iiﬁcbt
ieIten iinb bei ben @5ernerbebetrieben, bie bon ben @tabten geiiibrt
merben, mie 5. $6. ben QBaiiermerT'en unb @traigenbabnen, @gproe
priationen eriorberbcb. @ieie biirien nnr itattiinben, iomeit iie in
Wine“ 5. a}. i. 5. 235. 128 e. 27.
2) Qiiiber bieraui eillgugeben iit 1m mabmen bieieé EIIwmaQ nicbt
mbgIicb.

-_.70___.
biientﬁcbem Sntereiie bringenb geboten iinb, unb bie @erecbtigtett
berlangt, bai; bie Qé‘orteiie, meIcbe burcb berartige gemaitiame (ﬁne
grtiie ber biientbcben @5ema1t in ba? @tgentum @rttter er‘Iangt merben,
nacb 9R5g1icbt'eitber @eiamtbeit 5ugute tommen?) Qinberieité bi'rrien
aber and) gemiiie Qtebenten gegen bie ita'btiicben SYﬁetriebe bom
®erecbttafeit§itanbinunfte ntcbt unbeacbtet bIeiben. @urcb iie mirb
bie ,8ab1 ber itabtiicben @Iientei anigerorbent‘ﬁcb bermebrt, 3n ber nicbt
nnr bie Qirbeiter unb QInQeiteIIte ber QBert'e gebbren, ionbern and) bie
groige @cbar ber ﬂieieranten unb in gemiiiem llmiange and) her 21b;
nebmer. Sgierbet beitebt bie ©eiabr, baB bie Smebrbeitéioarteten bei
ber QInQmabI ber anguitetlenben SBerionen unb bei ber ﬁEergebung
bun Qieiernngen nicbt nnparteiiicb beriabren, ionbern iicb bnn per;
iiinbcben Stt'ret'itcbten nber bun ibrem SBarteiintereiie Ieiten Iaiien,
bai; iie bie mirticbaitﬁcbe Eiﬁacbt ber @tabtpaﬂamente t'rber bie ita'be
tiicbe S-‘DIienteI anégnnntjen, um ibr iBarteiregiment 3n itiirtenﬁ) baia
iie bie ﬁbebbtterunaét‘taiien, benen ibre EZBa'bIer rm meientﬁcben an;
gebb'ren, 5. bet ber Qiuégeitaltung ber iartie ungerecbt beborgngen,
unb bag iie begrn. bte bon ibnen protegierten Qingeiteﬂten bet ber
SlSebiennng ber QIbnebmer 5. 25‘. bet ber Sgeriteﬂnng bon 91ni1b1t'1iien
unb beraI. ibre ‘Barteigenoiien nor ben @egnern bert'nfiicbtigen.
5133mm e6 aucb berieblt ma're bieie QSeDent'en 5n ﬁberieben, i0 merben
iie bocb bnrcb bie bie1en erbrterten %0r5-1'1ge, me'lcbe itabtiicbe ibetriebe
50m @tanbimntte ber @jerecbtigteit bieten, mebr a1§ anigemogen,
5nmal etne giSartei burcb ein berartigeé partenicbeé SBerbatten iebr
baIb ben llnmiﬂen a11er geredn @entenben amb in ben etgenen S'r‘eiben
erregen mirb unb i0 Ieicbt ibre @errirbait aui'éi @pie'l ieben tbnnte.
ﬁe @ﬁeiabr ber 58egt'mitigung bei Sﬂniteﬂnngen unb bei ber §Ber¢
gebung bon Bieierungen iomie bie ber ﬂuénugung ber mirticbaite
Iicben EDEacbt ieitené ber QIrbeitQeber 511 pntitiicben ,Bmecten beitebt
ﬁbrigenéé in a'bnﬁcber Qbeiie and) bet ben pribaten ﬁberten. ©benio
beat e5 mit bem meiteren 2%0rmnrie, baiE; beim Qinéban ber ita'btticben
S,‘Setriebe ni-cbt nbiet'tib beriabren merbe, inbem 5. 25‘. bet ber Slim?”
bebnung beg @traiaenbabnnegeé (65egenben bebnrgngt unb in it'rr bte
ibebanung eriebIoiien merben, an benen einiblﬁreicbe EBerionen
1) @iebe QBagner ,,%§~inang,m.”, 585. I. (‘5. 651.
2) “(ﬁne ﬂirt poiit'ridyer Qlbbaugiafeit itabtiicber QIrIJeiter. farm '1111
aﬂgemeinen iiir @entidﬂanb bei ben meiiten 1)erric[)enbeu QBablgeiegen,
i egieII itir iiSreuBeu, farm in QI'breDe geitelIt IDQI‘DQI'I. (@cbriit. 5. E1}. i. 6
S b. 128 65. 410). ‘
__71__
ober maﬁgebenbe Yyﬁbrer ber Sliiebrbeitébarteien aroﬁeé iinangieIIeé
Sntereiie baben. QBenn bieé aucb in eingelnen %a'11en borfnmmen
mag, in bt'lrite baé 50(1) 511 ben grbigten C'Zeltenbeiten gebbren, unb
minbeitené ebenin groﬁ tit bie @eiabr, bai; primate CCEtraﬁenbabne
geieﬂicbaiten im Sntereiie en'15e1ner @roigattionﬁre minber rentabIe
@trecten banen ober rentab'Ie unb iiir bie @tabt miinicbenétnerte
@trecfen unbebaut Iaiien; iit e5 bncb aﬂgemein betannt, bai; imbue
itL‘ieIIe Wtiengeieﬂicbaiten mebriacfb ani $etrieb§au§bebnungen ber:
5icbten muiaten megen beg Qﬁiberiprucbé bun Qtanfen ober anberen
@5rnigaftiondren, bie megen ibrer SBeteiﬁgung an anberen S2‘53erfen
feine bieie icbc'ibigenbe ﬁ‘nnfnrreng auifommen Iaiien motlten.
ll, Eleﬂ.
Q3011! mirtirbaité’politiieben 3meefmiiﬁigfeit§=
itanbpunfte.
21801 man bie ita'btiicben @ﬁemerbebetriebe bum @tanb:
pnnt'te ber tnirticbait'ltcben ,81ne1fmai3igtett
prt'lien, in mirb man in eriter Ernie bte %§~rage 5n erbrtern baben,
0b unb in metcbem llmianae itabtiicbe SBetriebe
nnmirticbaitﬁcber iinb _a1<3 8Eritmtbetriebe; benn 1m
Sntereiie mbgttcbiten SlSIt'rbené ber $0‘11E6mirticbait iinb bie Q5€1T10119¢
iormen bnrgng-ieben, bie am probut'tibiten iinb, b. b. in benen bte
‘Brnbuttion nener @ﬁiter unter mbgﬁcbit geringem Qiuimanb bun
QaintaI unb slIrbeit erioIgt, mit anberen Slborten bie, meIcbe am
biIIigiten prnbugieren.
(Einen genauen giiiermaﬁigen Q§erg1eicb ber SISirticI)aitﬁcbt'eit
commnnater unb pribater gla‘etriebe iteIIen iicb uniiberminblicbe
@cbmierigfeiten entgegen, ba e?» an bem nbtigen SJEateriaI iebIt,
um bie ‘iﬁrobuttionétoiten einmanbirei in nerg1eicbbarer i‘gnrm 5n
berecbnen, unb bieie burcb mancbe iUtomente, bie ﬁberbaupt nicbt
giiiermaing 5n iaiien iinb, erbebbcb beeiniInin merben. @cbiii 1)
incbt einen $erg1eicb 5n geben, inbem er iiir einige 051e11ri5itr'tt6:
lnert'e bie ,ﬂtobtibericbl'iiie rm bon @unbert ber @eriteﬂnngétoiten”
berecbnet unb ben Si.s‘ribatmerfen @5emeinbebetriebe gegenr'iberite‘ﬂt,
_i)—§n—,,Eed)nif unb QStrticbait“ 1909 55. 446.


__72_
bie mit ibnen ,,nac1) ber $ebbIterung§5ab1 ibreé Q§eri0rg11ng5gebiete5
unb nacb ionitigen llmita'nben einigermaiéen bergticben merben
tmmer-1.“) cMe %raucbbarteit ieiner 91ngaben nnrb aber iebr be;
eintrdcbtigt burcb bag itarf bariierenbe sBrei5m0ment, 005 naturgema'ig
aui bie @5be 0e5 Eltobl'ibericbniieé einen groigen GEiniIuB au§tibt
(635 iinb beébatb in ber nacbi01genben iabeﬂe neben ben @cbiii’icben
slIngaben bie @trnmpreiie‘l) mitgeteﬂt.


1)5cbiter lniebrigiter Ifbcbiter luiebrigiter ‘ {HOW .
again“: . I dbcridmfg
mmtprcié @raitpreiﬁ in 0.159.044
Iwiui I @erite111mg5=
in §i3ig. pro Sﬁlnmattitrmbe fpiteu
Sgamburg . . . . . . . 60 54 20 20 7,71
@1151 ........ . . 30 22 14 4,5 11,81
‘Braunidpmeig 50 30 50 10 10,30
911101011 ._ . . . . . . . . 60 48 20 16 13,80
800111111 (530110118) . . . . 7,53
81:501- bei ($5111.. 30 21 14 4,5 4,68
811111301111; .... . . 30 25,5 18 18 12,43
(Siemeinbw
Mil; .
iBrcéIau . . . . . . . 50 18 20 12 12,99
8remen ..... . . 70 24 24 15 13,70
Miimben 60 51,6 30 10,5 13,13
9301101111110 . . . . . . 45 9 35 4,5 11,06
@iiiielbnri 60 303) 40 20 18,20
rtadieu 55 25 _ 30 5 14,85
@arlgrube 50 v19,2 22 22 8,11
80mm ..... . . 50 15 25 8,4 10,78
005mm ..... . . 40 28 14 7 6,18
$riebenau . . . . . . 35 25 15 15 10,00
008mm; 3) 55 33 20 11 14,73
Qﬁniggberg . . . . 6O 30 30 30 12,77
wagbeburg . . . . 60 40 20 10 21,00
80:11:01: (@1001) . 50 37,5 20 15 14,03
Grcielb . . . . . . . . . 50 19 18 8,5 18,40
@arburg . . . . . . . . 60 45 20 20 11,60
ﬁaiierélautern . 4O 10 4O 10 " 9,84


1) a. a. $3. @. 443.
2) @utnnmmen ber @tatiitif ber QEe-reinigung ber @Ieftrigitiitgmerfe
1906/{)7 beam. 07. y ‘
3) EBreiie entnommen bem @tat. Sabrb. $8. ©tiibte 1909 ('5. 158 f.
iﬁeier c£abe11e baiten aber nod) ima'nge1 an, 0a niebt nnr ber
S'J'Earimab unb Elittnima‘Ipreié bie @eminnbbbe beeiniIuiien, ionbern
ber iarii in aIIen (ﬁngelbeiten ieiner 21n§geitattung beriicfiiebtigt
rnerben miii3te. EBrambbarere EReinItate erbtiIt man 0e5ba1b, menn
man baé iBreiémoment gan5 auéiicbaltet unb berecbnet, miebiet an
$Betr1'eb5nnt’0iten ({gabrifationématerialientoiten, Qbbne, @ebc'ilter,
@eicbc'iiténnfniten, SReparaturen, 2§eriicberung€>pramien u. bergl.
iebocb 0bne 21bicbreibnngen, Clilgung unb 81nien1)) ani bie @inbeit
ber SBrobuftmenge entiaIIen.
QBiibrenb has; itatiitiicbe , $abrbud) CEeuticber @tabte itir bie
communa‘len éltetriebe etn annebmbare5 EUEateriaI bietet, um etne
berartige STnitenberecbnuna auiguiteﬂen, ieblt e5 an iotc'bem iiir
bie pribaten Unternebmungen mit Qiuénabme ber 0.1515155513155115.
{511-r bieie, pribate‘rnie eommnnale, entbaIt bie ,,@tatiittt ber SlEerﬁ
einigung ber C51et’trigitéit5tnert‘e” 5ab1reicbe ﬁngaben, aui @5runb
beren bie nacbioigenbe $abe11e VI auigeiteﬂt murbe. Sn ibr iinb
ben ‘Jﬁribatbetrieben evmmnna‘le QBerfe mit ungeiir'br gleicbem
Sllbiag; gegeniibergeiteﬂt. @ine (ibnIicbe 8uiammeniteﬂung and)
it'rr bie 61a5r0ert'e 5n macben mar unmbgbcb, 0a e5 an bem nb'tigen
EDEateriaI iiir bie SErinatnnternebnmngen ieb‘It, unb ber QEeriud)
aui bie @eicbtiitébericbte 5nrt'rct'5ugeben im groigen unb gangen an
beren llntiberiicbtlicbteit icbeitert. 22m ber Sertcbt ber ,ﬁbortmunber
Qiftienﬁ®eie11icbait it'lr 65a5be1em‘btung in CBnrtmunb” geitattete
eine @e‘lbitt'oitenberecbnung in 0bigem @inne. @ie ergab 1906 bei
einer Qibaabe bnn ea. 91/2 9R11110nen cbm einen ,,@e1bittoitenpre15”
0011 0,105 Wart pro cbm. 811m Sls‘ergIeicbe ieien bie entiprecbenben
giiiern einiger itb'btiicben QBerfe angegeben: 2)
Drt. iﬂbgabemenge in 01311]. @eIbitI‘oiten in
. Emmi iaro 0bm
01reie10 . . . . . 11 730 000 _ 0,085
@0115 a. 65. 9767 000 0,102
0111151 ........ .. 9459 000 ‘ 0,109
@uiéburg . . . . . . . 7 191 000 0,11
1) @ieie ‘Bniteu iinb reIatin unb abinIut bei Den 011150111011 ‘lSerfeu
nun rerbt nerirbiebener bbbe, beeiutriicbtigen baber itart‘ 01113 i111011510110
@rgebnié, iinb aber obne EBebentnng itir bie $rage Der QBirtidjrliﬂicbt‘eit
Der nericbiebeuen Qietriebﬁnrmen unb iinD 01830011) bier au§5nicbaltcm
2) ﬂierecbnet nacb bem Statiitiicben YyabrDudI) @eutidJer (515010 ‘80.
XVI @. 154 if. ‘ - .
__74_
@1egenr'iber Dieier Buiammeniteﬂnng, note and) ber ber EZabeIIe
VI iit aber eine gemiiie 8nr1'1cfba1tung geboten, 0a etne Tadwriiiung
ber in ber ,,C€=tatiitit ber SlEeretnignng ber @1ettri5itdt5mert'e” begm.
im @tatiitiicben 3abrbucb @euticber 51551.5 berecbneten gb‘etriebée
untoiteniummen nicbt mbgbcb mar, unb tnébeionbere nicbt ieitgeiteﬂt
merben tonnte, 0b bieie SBerecbnungen bun a11en QBerten, pribaten
unb eommnna‘ten, nacb benieIben Qﬁrnnbidgen eri01gt iinbﬁ) (ﬁn
alIgemeiner 91€ange1 5n Hngnniten ber iBribatbetriebe tit, bai3 bie
non ibnen 51.1 5ablenben (5,0mmnna10bgaben 2) nicbt in 91b5ng aebracbt
merben fnnnten. {gerner tit 511 berticfiicbtigen, baiz bei ben itéibtiicben
SBetrieben maneberIei llnf'oiten (5. 113. @ebatt beé aIIen Fb‘etrieben
ﬁbergeorbneten @egernenten) in ben allgemeinen ita'btiicben %er§
m01tungénnfoiten bericbrmnbenf‘) etn c5eb1er ireﬂicb, ber 1m meiente
{ieben baburcb tomiaeniiert 155:5, baig bie QIniiicbtér'at’iantiemen bei
ben ﬂt'tiengeiellicbaiten amt) nicbt beriict'iicbtigt iinb. 23m meit
grbigerer SBebeutung tit, baia e5 unmbgﬁcb tit geimiie Q§ericbiebene
beiten 4) 511 bemerten unb in 21nrecbnung 5n bringen, bie burcb IntaIe
2§erb51tniiie bebingt iinb, unb bie aui bie iiBrnbuftionéfoiten einen
erbebbcben @iniIuig baben, note mebr nber meniger gilnitige gage
511 ﬁoblenbergmerfen, $.ranépnrtberbinbungen, gobnberbd'ltniiie,
QBaiiertrdite u. a. (50 iinb bie ani3er0rbent11cb gi'mitigen Si‘eiuItate,
bie iicb bei ben beiben (5iiener 28erfen 5eigen, gum groBen $eile
aui bie SBenutfmng ber bei ben S‘Dntereien ergeugten QIbQaie 5111:1111;
guitibren. 11m bie Qs‘ericbiebenbeit ber S30b1enpreiie bargmtun, iei
betipieIémetie barani bingernieien, baig er iret 28ert' 1m @urcbicbnitt
pro 100 000 Qﬁérmeeinbeiten betrug iiir 005 (51eftrigitdt5mert bei;
Qberiebleiiicben $rrbuitriebe51r1'5 unb iiir QSrt'IbI (Sﬁrauntoblei
0,07 Emart, iilr 65m unb ﬂacben bagegen iebon 0,18 begrn. 0,19 smart,
itir 650tba 0,28 Wart, @eiIbronn unb $gombnrg 0. 0. $3. 0,31 Emart',
$ena unb @tuttgart 0,32 Smart, éZEeimar 0,33 Smart, SJ'Zt'mcben
0,37 Smart unb itir @cbrnerin t. 9.11. unb Qﬁlant'eneie iogar 0,44 Slilart
1) (83. 01015511 and) bie Qinéitibruugen in ﬁap. 8 Deg eriten 52100511615.
2) @mmnunaliteneru nub teilmeiie STuuéeiiiu11501111011011. ‘Qieie iinD
bei ber 6501111110iteuberecbntmg iiir 00.6 @0rtmnuber GBaaSmert in 5211151111
acbracbt. 93310 meit iLrIcbe bet ben priuatcn @Ieftrigiitiitémerfen in $000110
VI entbalten iiub, fmmte nicbt ieitgeiteIIt merbcn.
3) @111 EUhmwnt, bem Qnrb 210ebur1) 6 23 ii eine 21000111111131 1wi=
miigt, Die 5111* reIatinen @5be Dieier ﬂuggaben in fe'mem gberbiiltni'ﬁ itebt.
(51060 and) nben im ‘5egt.
4) Qﬁei (.3105 tit and) baraui bingnmeiien, bai; bie Beucbt= unb @eiy
trait uericbieben iit.
__75_
begm. 0,46 11253.1) @cbﬁeigﬁcb mnig nncb ber Giinibli; ermabnt merben,
ben 1angirtitige Bieierungébertra'ge aui bie $etrieb55nt'oiten baben,
ba iie bie €Brei§icbrnan1fungen ber ﬁobprobufte (S90b1en, Rapier)
nnter llmitanben fompeniteren unb i0 bemirfen, baig ein5e1ne Qiéert'e
biIIiger probugﬂeren a15 anbere mit meniger giinitigen Qieiernngéz
bertrr'igen, obne baB man baraué immer einen @mIuB aui bie 25155-19
ber Qﬁerfe 5ieben bari.
irog a11er 9Rarrge1, bie ben im boritebenben mitgeteilten EEabeIIen
5meiie1105 nocb anbaiten, mirb man ibnen bod) etne gemiii e ib‘ebentung
nicbt abitreiten 15nnen. Sebeniaﬂé itnb iie aué’reicbenb, um bargne
tun, baB bie tiberané peiiimiitiicbe 91nicbanung be5 Siorb 910eburb,
ber communaIe Qn‘etriebe iiir unter a11en llmita'nben meit 11nr01rt<
icbaitlicber a15 iiSribatbetriebe erﬂa'rt unb iene beébaIb grunbia'glicb
unb an5nabme10~3 bernrteﬂt, iiir @euticbIanb menigitené ani bem
@ﬁebiete ber @1eftrtgitatsﬁrberfe nicbt grrtriiit. @aéieIbe nnrb man
begﬁgﬁcb ber @aémerte iagen fbnnen, ba bier gang, g1eicbartige SBer;
b61tniiie borﬁegen. @aé nben angeit'rbrte Sl3eiiiaie1 be?» pribaten @015
mnnber @aétnerfé recbtiertigt bieie Qlniicbt, menng‘leicb ibm natt'lrﬁcb
1etne beibnbere ibebentnng grrgemeiien merben fann, ba e5 a11ein
itebt, unb man be5ba1b mit ber 111591175511 recbnen mui3, baig 311;
iaIIigfeiten bei ibm mitmirten. $Bei ben QBaiiermerfen unb @traiéen;
babnen ericbien ber $eriucb giiiernma'iaig ieitgrriteIlen, 0b ita'btiicbe
0ber primate bimaer arbetten, anéiicbté’doé, ba bier 101'a1e %ericbieben:
beiten ibie inébeionbere Slinbenberbfﬂtniiie unb bergI. 5n anéicbbrge
gebenb iinb. Ebie C{§~rage, 0b bie commnnalen 95‘etriebe biniicbtbcb
ibrer QBirticbaitIicbfeit ben prinaten gleirbe nber nacbiteben, mnig
be§ba1b i111: bie QBaiiermerte, @traigenbabnen unb ebenin itir bie
anberen 1m boritebenben nicbt ermﬁbnten ib‘etriebe a11ein aui (511mb
bnn @rrnagungen a11gemetnerer 21rt beantmortet merben, 611-155;
gnngen, benen aber aucb ani bem @ebiete ber (5815156615; unb 65w};
mert'e neben ben 0bigen itatiitiicben @rmittebrngen grnige Sl>"ebentnng
gutbmmt. @enn menn bieie and) Me geiagt auéreicben, um bie 9111-;
iicbt Qbrb 915ebnrb’5 unb anberer an nnbeﬂegen, bai; bie itr'ibtiicben
Sb‘etriebe bieI 5n tenet arbeiten unb be5baIb nnbebingt minbermertig
ieien, i0 mi'rrbe man bod) anberieiti’» 5n meit geben, menn man and)
an?» tbnen icbIieigen m011te, baB bie itabtiicben sl'ietriebe grunbitibﬁcb
f llgggértgbniggergf ber ,,(<5tatiitif ber ‘Bere'mignug ber C51e1tr151111t5=
mere’ . .


6
§ 0
O
__76__
ebenin b1111g probugieren mie bie pribaten. 1111b in ber clat Iaiien itcb
bericbiebene (85rt'1nbe anitibren, bie 1n bieier Sginiicbt Sebenf'en ber;
bbrrnien miiiien.
61e Iiegen 1n eriter Einie 1n ber QIuQQeitaItunQ ber c0mm11na10n
iéerrnaltnngébebbrben 111111 in ber QIrt 1111b iBeiie, nne bie ita'btiicben
®en1erbebetr1ebe 1n bieie eingeiiigt i111b,1) beren Qﬁirticbaitlicbfeit
burcb ben i0 bebingten icI) 10eria'111gen unb 101111111;
gierten 61eicb1'iit5gang unb burcb ben931ange1
an %eme911cbfeit, $re1be1t unb 6111be1111cb;
15 e it b e r 8 e 1 t 11 n g nacbteiﬁg beeiniInBt merben mui3.
s.Ramentbcb bie 9‘1ﬁc1ita'nb1g1e1t ber 60mmnna1betr1ebe 1n tecbniicber
unb fauimanniicber @iniicbt, bie bieien nit unb iicberﬁcb nicbt tmmer
obne 65r11nb borgemorien mirb, btirite bierani 3,11r1'151'511i1'1bren iein.
Sbie benticben 6t1'1bte Iaiien iicb a115 bem (5eiicbtépunt’te ibrer gliéere
ma1111ng50rgan1iat10n 1n i01cbe mit Wagiitratéberiaiiung 1111b 1n i01cbe
mit bem ingenannten €Brtiieft11ribitem e1nte11en. 811 eriteren gebbren
5. %. SI>‘er11n, imagbeburg, 25re~31a11 unb aucb imtincben. QBie baé
61e1t1151tat5mert bieier 6tabt 111 beren 28ertna1tung5i0item eingee
itigt iit, icbﬂbert Slinbemann 2) nne iolgtz "ﬁler ﬁbireftor 1e1tet ben
$a11 unb Qﬁetrieb be5ie1ben unmitteIbar. @ann tommt ber Sieierent
beé 21111151151115, ber 1n ‘Berbinbnng mit bem 1555551 eine 81‘e1be
e1n5e1n anigeit'rbrter 0151555115 bat, bann ber 25er10a1111ng5a115i1b11i3,
bem ber EReierent unb ber 25erma11ung5rat angebbren, 1111b ber gtetd):
ia115 eine 91e1be bnn namentticb angeiiibrten 9‘0mpeten5en bat.
EReben bieiem itebt ber borberatenbe 9105i1b11i1, bem a11e 511 ieiner
811itt'mb1gfe1t gebbrenben 91ntriige borgnIegen iinb, ebe iie 1n ba?»
€i31en11m be5 ilﬂagiitraté geIangen; ﬁber a11en ber émagiitrat unb
1) Qnrb Qlneburn (6. 20 ii. a. a. 9.1 iiebt 01115 ber 15011111111011101110
gegen bie ita'btiicben Q3etr1ebe in ber Ileberbiirbnng ber ita'bhicbcn sBer=
1vaItu11g§bebbrbcn mit innitigen DbIiegeubeiten. ©erabe 111 biciem 931mm
mirb man am aIIermeniQiten bie engtiicben QEcrbiiItniiie 1111i bie beuticben
ﬂbertragen fb'nnen, ba e5 1151) bnrt aucb bei ber Qeitung ber QEermaItunQ
11111 ebrenamtﬁcb ta'tige ii3eri0nen banbelt, bie i101) natnrgenu'r'ﬁ nicbt 1n
bemieIben WEaBe itiibtiicben @1e11iten wibmen fbnnen 1111e Q3ea1nte. (bie
@1eiabr ber Heberbiirbnng mirb iicb 111 @enticblanb i0m0b1 i111 bie Q}er=
maltnng a1§ and) ftir bie 6tabtpar1a1nente 1e1cbt nermeiben 1aiie11, inbem
man bie QEermaItunQ be5entra11i1ert 1111b bie 11111515511 ber 6tabtner0rb=
neten=§Beriam1nhrng aui bie micbtigiten $ragen beicbra'nt‘t, miibrenb man
111106 ﬁbrige bem Sleiter beam. einer ﬁrnnmiiiibn 115551551, bie cine bem
ﬁuiiicbtérat ber QIftiengeieIIicbait ('1'1)1111c1)e 6te111111g erbaIten fbnnte (iiebe
111e1ter unten 1m gem),
2) 2B1rticbai15pf1ege” 6. 37 i.


a...
°00¢0
‘ no
0
on. 'Q
o
__ 77__
icbﬁeigﬁcb bie (5emeinbebebo11macbtigten.” (ﬁrm; aber nicbt biei
beiier iit e.» in ben 6ta'bten mit $ra'iefturibitem mie 015111, 1115111,»,
11. a. 311 61% 3,. 23. 1) nnteritebt bie §8ern1a1ning ber ita'btiicben
QBert'e --~ abgeieben 0011 ben mit ber 1111mitte1baren Seitung betranten
@ireftoren 1111b bem ibnen mieber ﬁbergeorbneten tecbniicben SBei:
gebrbneten a15 bem ib‘eamten ber a11gemeinen Q§erma1tﬁng -— einer
ﬁommiiiion, bie ané bem Qberbﬁrgermeiiter begrn. bem ibn ber:
tretenben Qa‘eigenrbneten 1111b 8 imitgﬁebern ber 6tabtber0rbneten¢
beriammInng beitebt. Sbr 1iegt bor a11em bie @011tr011e ber .8eit11ng
ber 28er1e, bie iBrﬁiung unb 23egntacbt11ng ber. 0011 ben Cébireftoren
anigeiteIIten @tatéentrnﬁrie unb 5Bi1an5en iornie bie 55eicb111i3iaii11ng
ﬁber Slieierungen, 91‘eparatnren 1111b SEeuanicbaiiunQen, bie ﬁber
5000 SJliarf eriorbern, 0b. ﬁber bieier ﬁommiiiinn itebt bann icb11ei311'cb
nncb bie 6tabtberorbnetenberiammluna, bie ﬁber @rnaeiternngen,
bie im eingeInen Yyaﬂe mebr a15 10 000 S.1i'iarf foiten, ﬁber bie 21nite1111ng
ber ébeamten mit mebr a1?» 2000 imarf $abre5geb111t, ﬁber bie $115
10i11ig1111g 0011 6ratiii1’ationen ﬁber 300 Smarf beirbﬁeigt 1111b ben
03tat unb bie Siecbnnngéergebniiie 3,11 genebmigen bat.
QBie bieI einiaeber iiebt bie Q§ern1a1mng unierer grbbten 911tien¢
@eieﬂicbaiten ané! Sgier itebt bem @ireftor, ber in grbbem 11miange
bbIIig ielbittinbig beriﬁgen tann, nnr ber 2111iiicbt5rat 5111‘ 6eite,
ber in ber 91ege1 aués eriabrenen65eicb11it51e11ten, mbgen iie Sbanie
Iente, C£ecbnit'er 0ber Snriiten iein, griiammengeiebt iit, 10115 man
bei ben itﬁbtiicben 91n5icbﬁiien bnrcbang nicbt immer iaaen 1'ann,
meiI bier bag iBarteiintereiie Ieiber bit eine 511 groige 91011e ipieIt.
iber 65enera111eriamm1ﬁng ber 911'ti0na're braucben Sls‘oritanb unb
QIuiiicbtQrat im meienﬂicben nnr ben 61eicbiiit5bericbt mit ber §6i1an5~
00r5-111egen, 1111b aﬁcb in bieien i6eriamm111ngen piIegen, gang, anberé
a15 in ben 6tabtpar1amenten, nnr 1a11ima'nniicb unb ivirticbaitIirb
gebiIbete 1111b meitiicbtige EUia'nner einen @iniblig 111155-uﬁbe11.‘ “Bee
tracbtet man bieie $ericbiebenbeit ber Qrganiiation, i0 Iiegt e6 an'i
ber SQanb, baig e5 ben itiibtiieben SBetrieben biel icbmerer iit, bie
imarfﬂage (910bit0iie) anégrinnben, teebniicbe ERenerungen 1111b bani;
miinniicbe Qb‘erbeiierungen (ibmbiﬁbrung , (5e1010eien)‘~’) ein511¢


1) 6iebe Binbemann a. a. i). 6. 39. > > .
2) @r. Qhiiie (a. a. Q. 6. 157) 101111111 bei einem 230111310011) 511161111011
bem Dliﬁucbener 65a61'0erf in itiibtiiiber 910gie 1111b 1111 (850i011i0bai16110i115511
bem 91ei111tat, ,,bai3 1111111 nicbt 1.11111)in fblme, ben 1111115011 QBermaItungQ-
apparat beg ietjigen @5en1einbebetriebe610111111151er11111b icb10eriiiﬂigérriinben.”
___78_
iﬁbren.1) 211111 Sierbt meiitibiebgeﬂ) bei ber ib‘eiiarecbnng 11nrat10ne11er
QInIaQen in itiibtiieben 65a510ert'en barani bin, baig e5 ben @ireftbren
bieier 28erfe nit garnicbt 0ber nur nnter ben grbigten SJEﬁben mbgﬁcb
iei bie EUiitteI bemiIIigt 511 erbaIten, 11m i01cben Hbelitﬁnben abgﬁe
beIien. 6bara1'teriitiicb iit in bieier @iniicbt aﬁcb, baB bie 61a5a11t'0;
maten, bie geeignet iinb ben 91bnebn1erfrei§ meientIicb 511 bergrbi'gern
unb i0 ben Quninm erbebIicb 511 iteigern, bei ben ita'btiirben 65a5¢
merfen im 6egeniatg> 311 ben bribaten nnr teiIrneii e unb mﬁbiam (5m;
gang geinnben baben. 1151 91115nabme bbn Wagbebnrg unb SbarIQ;
r11be baben mit ibrer @Einiﬁbrung, 11m bie iicb bie beuticbe 60ntinenta1=
aaéigeieﬂirbait 511 c§Deiia11 beionberé berbient gemacbt bat, nnr *13ribat;
merfe ben iHniang gemaibt, benen bie itabtiicben nnr 1angiam i01aten.3)
ibie bnrcb 65a5a11t0maten unb a'bnﬁcbe~ EUiitteI 5ur 6311eicbter11ng
ber 6a5benugung, bbr beren (ﬁniﬁbrﬁng bie ita'btiicben Setriebe
ini01ge ibrer icbmeriﬁﬂigen Qrganiiation unb beg babnrcb 1abmge¢
1egten Hnternebmergeiiteé a11511 ﬁngiﬂicb 5urﬁ11icbrerfen, ber ﬁbninm
geibrbert rnerben 1ann, baé 5eigt baé ibeiipiel ber 6tabt 1111111551,
bie in biei er Sginiicbt neben einigen anberen eine erirenIicbe 9.111511abme
bi1bet. Snbem 4) man bie Sbbiten ber Sgeriteﬂnng ber 8112 unb 6teige
Ieitungen aui bie 6tabt ﬁbernabm, in QBobnnngen bi5 511 800 2111511
Sabreémiete nnentgeItIicb (5a5antomaten aniiteIIte unb Qocbe unb
@ei5apparate gegen m0nat11cbe Babblng bermietete, iteigerte man ben
(85a510ni11m 1905 11m 11,4%, 1906 unb 1907 11m 511iam1nen 12,9 %
0ber 0011 35 ohm pro Sbnpi ber %e0611erung im $abre 1904 ani 54 ohm.
1907. 91bgeieben 0011 i05ia1e11 61eiicbt55unften (@rmbgﬁcbung be?»
Qbaégebrancbé burcb Eminberbemittebe) bracbte bieie Sboniﬁmiteigee
rung aucb einen Q§0rteiI in iinan5ie11er Sginiirbt, 0bg1eicb nicbt berfannt
merben bari, baig ini01ge ber 811nabme gerabe ber Qleinfoniﬁmenten
bie §Z§erma1tung51mtoiten nicbt nnr abi0111t ionbern ancb reIatib
b. b. im §8erb61tni5 311m 65a5abiat§ gemacbien iein mﬁiien.
1) 60 ('iuigerte i111) aucb ba?; SUtitQIieb ber Smmebiatfnmmiiiiun 5ur
Sfieibrm ber preuigiicben 23er10a111111g ber irﬁbere @berpriiiibent 0011 8001115
unb grﬁbicbler babin, bai; ,,ber QBettbemerb ber itaatIicbcn mit ben pri=
naten llnternebnwngen itet?» 511m ERacbteiI ber eriteren anéicbhgen nitiiie
aug bem einitmeiIen nicbt 11116 ber 213011 511 icbIagenben @ru'nbe, 111eiI ber
@bef eineg grnigen llnternebmené’» grigleicb bie ﬁnitiatine unb bie finangietle
sJjibglicbfeit ber @nrcbiﬁbrnng in ieinergpanb nereinige". (830111. 81. 911:. 124 1910).
2) $ecbniicbe6 @emeinbebIatt l. sabrg. 6. 69 if.
3)21011 ben 35 ita'btiicben 65a§10erfen ber Cbrnigitiibte batten 1907
25 @aé‘mutomaten eingeiﬁbrt. @ie meiiteu batte $er11n mit 33361, bann
ﬁbniggberg mit 10601 (6tat. Siabrb. $6. 6tiibte, $0. XVI 6. 136 i.)
4) (53ntn0n1111en bem 610mm. ﬁabrb. ‘2). 6ttibte 1908 6. 353 i.
_79_
.811 ber 64110eri1'1'111g1eit be?» 2§errna1tung5apparate5, ber unber;
1ennbar bie ita'btiicben Sb‘etriebe enticbieben benacbteiliat, treten bann
nocb einige anbere ungﬁnitige iUiomente in ber Drganiiation itﬁbtiicber
61emerbebetriebe, benen icb irei1i1b im 6egeniatg, 511 bem $0rbee
banbeIten g1aube nnr eine geringe ?6ebentung beimeiien 511 i011en,
na'm11cbbie%eb1er, bie bei ber QIﬁQmabI ber 1eiten¢
ben SBeribnIiebteiten gemacbt merben, unb ber Wiangel
au5reiebenben peribnﬁcben Sntereiie?» am 6ebeiben ber Qberfe aui
6eiten ibrer 8eiter, ma5 in ber 91ege1 mit bem 6cbIag100rt:
,,§6eamtenn1irticbait” begeiibnet mirb.


@en Q§0rn1nri ber ,,$11riitenmirticbait” mirb man ben 6tiibten,
menigitenr» ani bem 65ebiete ber Qbemerbebetriebe beute nicbt mebr
maeben ‘fbnnen, ba bieie m0b1 in a11en 6ta'bten, in benen iie in
grbberem llmiange beiteben, tecbniicben Ebireftoren unb £861Q€DID¢
neten begrn. wagiitraténiitgbebern nnteriteIIt iinb. §8ieI eber iit
bie QInnabme bereebtigt, bai; man in ber SJlniteﬂnng ber iecbnifer
511 meit geaangen iit unb nicbt itatt beiien neben bieien ancb praftiicbe
5151111511151) unb fanima'nniicb gebiIbete 2§011510irte 5ur Qeitung
ber e0mm11na1en EBetriebe berangegogen bat. 6rbbere ci§~eb1er a15
in ber QBabI beg 6tanbe5, bem bie Beiter entnommen iinb, bﬁriten
aemacbt merben bei ber 91u5mabI ber 93eri0111icbfeiten ieIbit, unb
5-n1ar inioIge ber gniammeniebnng ber @1001061010n618111361’
iammIungen, in benen bit ba?» politiicbe EBarteiintereiie unb per:
ibn'Iirbe ($511116 ber s13arteiiﬁbrer bie Hberbanb getninnen. Qmar i011
1111b fann nicbt beitritten merben, bai; bei ber Sbeiegung ber Ieitenben
6te1111ngen in Qiftiengeieﬂicbaiten bermanbticbaiﬂicbe unb anbere
§6e5ieb11ngen eine ebenin menig 511 recbtiertigenbe 91011e ipieIen.
Qiber bier biIbet baé (5e1bintereiie ber regelmaigig iinang,ie11 itarf
intereiiierten 9111ii1cbt5rat5m1tg11e0er unb (5r0Ba1‘ti0nﬁre ein 6egene
gemicbt. 6e1angen bier unidbige 93eri0nen burcb ,ﬁonneribn unb
93r0tefti0n” in eine Ieitenbe 6te1111ng, i0 merben iie regeImﬁBig
trob aIIem ba1b mieber entiernt rnerben, ma?» bei ben 6tabtber:
10aItunge11 icbon megen ber ibeamteniteﬂnng niebt i0 Ieiebt mbg1icb
1) 031111: 91ei0111t'1011 Q§aiier111ann, bie 1910 bem 91eicb§tag 00r-
. gelegt mnrbe, erinebt ben 910icb31'1111310r eine ﬁnimniiii‘bn 11011 Qibgeorbneten
nub anberu 6acbneritaubigeu 511 ernien 1111b ani 65r1111b 11011 beren §Be=
ratungen ®runbiiitje arrigniteﬂen, 10011be cine 5eitgemiii3e fanimiinniicbe
Sleitnug, Q3er111aItn11g 1111011eber10aeb1111g ber e1115e111e11 110111 ﬁeicbennter-
“0111111011011 23etr1ebe iicbere. (135111. 31g. 911‘. 124, 1910).
-~ 80' --~
iit.? €®ie QInQmabI geeigneter €Beriﬁnﬁcbfeitem bie inf) ben @5tc'ibten
new, rift einev bti‘lﬁg auﬁeicbenbe, and) inenn bieie meiterfnn e5
ableblten. ®ebiilter anégnfcfneiben, bie ben borrenben @ulnmen
nafnfornmen, rumba gmfge- QWtienQeTeIITcBaTten oft'ibren Qeitern
595mm,: unb. bie iicberﬁd) nicht mebr im QEerMItniQ 5n beren 8e?
ftungénﬁehen. $6 bem groﬁen 91ngebot non Qh‘beitéfm'ften auf
ailelnﬁkbieten and) anf tedmiidnrn nn'ire e6 ben @tiib-ten ein
Ieicbteé, erftﬂaﬁige @rtiite nu bie Qeitnng ibrer iBetriehe 511 geminnen,
obne bag ﬁe bie %e5ﬁge meientﬁcl) 5n erbﬁben branchten, inenn ﬁe
nnr mit bet ntitigen G5acbfenntni<3 unb obne Eﬁ‘ﬁcfiicfn anf anbere
Sntereﬁen bie mirﬂicf) beften anéindnen. @ie mﬁrben baé 9lngebot
nod) ftar‘f bergrtifgern, menn‘ﬁe bie @ireftoren ber iﬁerfe non ben
engen i§eﬁeIn Befreiten, bie jegt ibre gBetéitignng Iﬁbmen, unb iie
fqmnbl ibren bermaﬁungﬁedmiicben Q§nrgefegten a1?» and) ben
6tab‘t1par1a1nenten unb beren Qinéicin'iﬁcn gegenﬁber freier unb
nnablningiger machten. -
@em Qiinmanb, bag ,,§b‘ea1ntenmirticf)aft” nicht in intenﬁb
iei tnie 3Brit>atmirtici)aft, bem llmftanbe, bag, mic Barb Qlnebun) 1)
mgr, ,_,),I.Qtiﬁinlicf)e Q3eobacfnung unb ber @potn beé; periiinliclnn
Sntereﬁeé ba?, iBrinatnllternebmen beféibige fparicnner 5n arbeiten
CtIé Eﬁeigiernngen 0ber ©tabtbebbrben,” fann eine gemiﬁe QSetedniQnnQ
5mm nicht abgeiprocben merben, and) bann nicht, inenn bie iB‘eamten
butch cine iantieme am (Serpi'nne intereﬁiert merben. Wan mirb
bicieln Womente io-gm: eine gang auBewrbentIid) mirticbaftﬁdw
%ebeutnng beimeiien mﬁﬁen, mm 26 in; im @5egenfai; 5n fta'btiidwn
Q§etrieben urn SBribatnnternefnnnngen I)anbeIt, bie einen 0ber
einigen menigen SIBerfonen gebﬁren, unb bei benen bieie ,,11nter¢
nebrner” bnrcf) perib'nﬁcfn Qeitnng unb ﬁv‘eanﬂicbtignng has?» Hntev
nefnnen befeelen, nne Dies“ nod) in grofgem llrnfange im Q'iaufacbe
ber $1111 iit," (11123 bem Denn and) 80th QIneburt) ben grbfgten cieil {einer
9Irgu1nentc gegen ftdbtiic‘be Setnebe entnimrnt. $111 @egeniaica
I)ier5n ift' fiir bie {Wage bergenngeren231§irtfcbafﬂicbfeit her in @euticf):
{anb , Imnptin'dﬂid) in gﬁetmdn fonnnenben ftdbtifcben ©emerbe¢
betriebe ‘bieg Dante nnr nod) hon nnnima‘ler Sebentnng, ba anf
ibren (Sﬁefneten and) bie iBrinatmerfé infoIge ber gangen mirticlmfﬁ
lichen @ntmirfeinng unb bet ienbeng; 5ur @nngentmtion unb gum
(Sjtnﬁbetrieb in ben Qiftiengefeﬂidmften cine $501311 angenommen
1) a. a. 52.

,-81.-.—.
baben, bei benen bie ,BeitnnQ In; in bie oberfte @Jpige Taft an?”
fcfﬂiefaﬁci) in @iinben n0n$ea1nten iit?) @er Fl§nrmurf ber ,ﬁe;
amtentnirfcbaft” triﬁt, unb bag ﬁberiiebt 80th Qlbeburt), nniere
groﬁen ﬂftiengefeIIMaften ebenin 0ber menigftené Taft ebenin mie
bie ftfibtiicben ié‘ermaltnngen. Céiin geringer llnterfciﬁeb befteht
Trei‘ﬁd) gum inacinei‘l'e ber Iegteren, meiI bie @téibte ané ingialpow
tifcben unb Ieiber 0ft and) ané parteipoﬁtifcfnn Q55r1'inben gegmnngen
iinb bei ber €{grage ber @ntlaﬁnng ineniger geeigneter Qlngefteﬂter
Sh'icfficfnen 5n nehmen, mkba 91ftiengefeﬂichaften in bem image
rege'lmdfng nicbt fennen. @ierburcf) unb burcf) bie 5nmei1en iogar
Iebenéldngﬁcbe Qlnfteﬂung non SBeaInten with ber QInipm‘n im
eigenften S’ntereﬁe baé éBefte 5n Ieiften geminbert. @nrcf) iantiemenﬁ
gemébrung fann abet ba?» Sntereﬁe ber Ieitenben §Bea1nten in ftéibtiﬁ
icben QS‘etrieBen grnnbidglic't) ebenin geftirbert tnerben mie in prinaten,
mnnon benn and) idwn einige @tiibte nne 5. %. @ﬁﬁttingen, @ebraucb
gemacbt baben. .€®a5n fmnlnen nod) bie @5efahr ﬁffentﬁcber @ritif,
ber QBetteifer ber @tiibte untereinanber, bie Rontroﬂe ieiteng ber
@mnmiﬁionen, in benen £106) and) 0ft tiicbtige imé'mner figen, unb
fcfﬂieﬁﬁd) ber llmftanb, ba?, bie 23ea1nten ber ftfibtiicben §Betriebe
Taft auéidﬂieﬁﬁcf) bie Qlnéiicfn baben, in bﬁbere @teIInngen anfguﬂ
riicfen, moburcl) ibnen nieIIeicbt ber befte ﬁnfporn gegeben ift ibre
gan5-e @ra‘ft in ~ben @ienft ibreé SBetriebeé 5n fteIIen unb Inb'glidﬂt
gute @rfolge 5n ergielen, 5uma1b nrcI) @tﬁbteauééfteﬂnngen, @tatiftifen
unb informatorifcbe ‘b‘ejicbtignngen ieitené Qkrtreter anberer
@tdbte ben Qeitern beéi glv‘etriebeé unb {einer eingelnen ieile recht
gnte @5e1egenf92it gegeben iit bie QIuTmQrﬁami’feit anberen @tabb
vermaItungen, ber @taatéregierung unb ber SBritmtinbnftrie auf
ibre periﬁnlicfna iﬁdnigfeit 5n Ienfen unb W) in bie Beften 21ns3ﬁcbten
Tiir bie Bufunft 5n erbffnen.
@ieien @rmﬁgnngen, meIcI)e mebr 0ber ineniger bermuten
Iaﬁen, baf; bie ftéibtiicben Qiemerbebetriebe teurer probug-ieren aIé
bie prinaten, {ieben aim: and) anbere gegeniiber, tneIche bie
QBirti cf) aftIicbfeit iener bieien gegeniiber in einem
giinftigeren ﬁidﬁe ericbeinen Iaﬁen. @inmal iparen bie
@téibte an gBrobnftionéfoften baburcf), but; iie e5 mic unégefiifnt
_ 1) QB'Ie allgeme'ln Beiln Qkrfelprgmefcn, Inmbelt cg ﬁcf) (Inf ben bier
bebanbelfcn Qﬁebicten ,,nic[)t um private @iII5QIIII'ItEIIIQI)IIIUIIQQII, fnnbern
um QIfticngeielﬂdmftcn. llnb {tuft ber trcnnenben ‘Berfcfﬁcbellbciten fte’llen
ﬁd) [)icr nieIl-xlebr in micbtigcn imnften gIeicbe SJJEiingeI, mic Bc'un @taatﬁ-
be51n. ftiibtifcben QBetriebe ein“.'(n. @tjeberg a. a. D. 65. 102.)
_>_482__-
nich't nbtig ijaBen; 11111 tiichtige @ri'ifte i111 bie Qeitnng ibrer QBerfe
511 erbalten, bie ungemeﬁenen @ebé'dter 5n 5abIen, bie mir bei £Brit1ate
betrieben gleicfnr (8516Be finben. Qincf) fmnrnen bei ben fiiibtifcben
gﬁetrieben, ba-iie nacf) aniéen aléi ieiie ber @tabtbermaltungen
Tnngieren, bie nicht unerbebIicben Siepriiientatinnéfoften in ‘5mct’faﬂ.
i‘gerner fb'nnen bie @iiibte, ba iie Teﬂon megen ibreé tiﬁenﬂicfy
rechtlicben @I)arafte1:§ griiﬁere @icberbeit bieten, ba?» 511111 $1111 unb
%et1:ieb ibrer QBetfe eriorber'licbe Siapitai iicI) biﬂiger bericbaﬁen
at?» private, menn and) 5ngegeben merben muﬁ, bag bie ‘Qiﬁereng
infoIge ber (Sntmicfelung beg @apitaimarfteé; (iiebe i111 erften Siapitel
bieieé iﬂbicbnitteé) bente eine geringere gemorben iit. @cbIieﬁIicI) abet,
unb baa? fcbeint mir ba?» mefentliéfte 5n iein, fijnnen bie @tiibte,1
ba iie in ibrem EBeTiQ bericbiebene @jemerbebetriebe regeIrniiBig
Dereinigen, bnrcf) eine iacbgemiiﬁe 8entra1iiation ber $ermaltung
iein bieie -11nfoften iparen, menn nnr binreicbenb baiiir @orge gee
tragen with, bag bie eingeinen $etriebe, nicht nui: bie gemerbiicfwn,
ionbern and). bie anberen, 5. 58. her @tra‘genban unb @ancdbau,
Sganb in Sganb mit einanber arbeiten. Qeiber merben Die in gebotenen
QEDrteiIe, beten Sieaiiiiernng Treilici) groige abet fawn nniiberminbe
bare @dmierigfeiten gegeniiberfteben, non ben ftdbtiicben $ermak
tungen 5n inenig erfannt unb anégenugt. QInf bem Iegten Qongref;
iiir Sgeigjung unb Qiiitnng in C{granif’furt a. 93?..1) teiite 533?. @aﬂer
einen $1111 mit, bei: tnpiici) Inerii'n: iit. éBerlin beiigt eine Sieibe 11011
iBnrnpmerfitationen iiir bie Qtnecfe ber @anaiiiation, bie bnrcf)
@ampimaicinnen betrieben merben. 3n uninittelbarer giébe non
ibnen beiinben iicI) @cbnien nnb $abeanitaiten. Qinftatt nun ben
1111mm ber @ampimaidﬁnen 511m Fb‘etrieb bet @eigungéaniagen,
ber @cbuien 0ber Sl‘mbeanftaiten 511 benugen unb in namimite 6‘1»
fparniﬁe 5n machen, Iiiﬁt 111cm ben @ainpf 11111510; ab‘ffreicben.
% a‘Bt 1111111 bie borftehenben @rbrternngen ber “Image, of) bie
ftiibtiicben Q'ﬁetriebe grnnbfdgﬁd) teurer prnbngieren 1115 Die prinaten,
511111 n1 111 e n , in with man 511 bem iTieinItat fornnien, ba?» and)
{than bie ﬁatifiiicben llntei'iucbungen bennuten 1ie/Ben, niimiici),
baf; ein e111eb1id1e1 llntericlneb 511 lingunften ber ﬁommunaibetriebe
in1 aIIgemeinen lIiCIJt beitebt 0ber menigften?» nicht 5n befteben braucin,
ha bie beipwdnnen él'iebenfen teiimeiie fnmpeniiert merben unb 511111
anbern EEeiI iicb buid) eine beﬁere Drganiiation inenn nidn beieitigen,
; 1) SﬁiInifcbe 8L’ULU'IQ 1909. am. 831.

__83 _1
in bod) auf ein ertraglime?» SUiinimum berminbern Iaﬁen. Siting
mare 11m: aIIen fbingen eine Qieteinfacfmng bee“; Qéermaltnngéappae
rate?» @ie @teﬂnng bei: @irei'toten miiBte freier unb ieibfiiinbiget
geftaitet merben. Sbnen fﬁnnte man nacf) QIrt eineé Qinfiicbtérateé
eine ﬁommiﬁion 5111' @eite fteIIen, 5n beren iJJiitgl'iebern bie @tabte
berorbnetenneriammiung aué ibrer SJETiitte 0ber and) ans? bet meiteren
Qiiirgerfcbaft beionber'é geeignete €Berfﬁnliibfeiten miibIt, unb aui
bie iie einen groBen Cieil ibrer minbermicfnigen ﬁliacinbefugniﬁe
iibertragen fb'nnte. (Eine gemiﬁe @ciﬁnerfiiﬂigfeit Iiegt irei'IidE) in ber
giatur ber @acbe, unb e?» with fanm mﬁglicb iein Bei ben ftiibtiicben
gl3eirieben eine ebenin ireie unb 1virtid)afﬂicf) borteilbafte Drganie
fatinn 5n biiben mie bei ‘liftiengeieﬂichaften. @ie Qiebentung bieieé
Qiebenfené iit eine recht bericbiebene 1e nacf) bei: Qirt ber SBetriebe.
@nmeit e6 iid) bei ibnen im meientlicben um einen tnbigen unb ftabiIen,
mebr paﬁinen unb icimblonenimften @eiCbdftéigang banbelt unb
banbein mufg, iorneit bei ibnen alio ba?, ipefniatibe Wioment T1111; eine
minimaie Sio‘ﬂe ipieit, iii bie betbleibenbe émmeriiiﬂigfeit ber ftiibe
tifcben Sl3etrieh§1eitungen ebenin mie bie Snferiorita't ber SBeamtene
mirticbait Dan in geringer ﬁebeutung, baf; man ibr feinen @infini;
bei ber {grage ber @nmmnnalifierung einra'nmen fann. QEQ gilt bieé
bei aIIen ben Slv‘etrieben, melibe bie @tiibte in griiﬁgetem limfange
tatfiicblicb in eigene Siegie iibernnmmen baben, niimiicf) ben iiiaiiere,
@8153 @Ieftrigitiitémerfen, ben @traﬁenbabnen, @dﬂacbk unb $iely
Inifen, ben @parfaﬁen iomie and) bei manchen anberen (5. EB. QIpoe
tbefen), bie bente 11nd) ieine griiﬁere QSebentnng a1; cnmmnnale
($emerbebetriebe gemonnen baben. Qéeriangen bagegen gBetriebe
511 ibrem @ebeiben icbneﬂeé’» SganbeIn, mutigeé 8ugreiien unb Qiﬁagen,
fut-5, bie Qiiabrnebmung nut T111: fnrge 8eii iicf) bietenber @eininm
mancen, in ift fein ﬂﬁatg, fiir eine $etiitignng ber @ta'bte, ba beren
Drgane regelma'ﬁig mit ibrer Ginticfﬂieﬁung erft iertig miirben, inenn
es“; 511 ipiit ift.
3m aIIgemeinen U01f§WiftifbiIftIiCb€H ﬁn,
t e r e i i e Iiegt e6, baﬁ bie SBettiebéfotm gemiiiﬂt mirb, meIcI)e b a Q
93(3b1'il'fni?) bet Sioniumenten am beften Fe:
friebig t, 111eIcI)e am beften "in ber $age unb gemiﬂt iit bem
aIIgemeinen SIa‘ebiir‘iniﬁe gerecbt 5n merben"1). 3n bieier Sginiicbt
biirften bie ftiibfiicben Sb‘etriebe ben minaten norgugieben iein. 8111111
1) n. @bebergl a. a. D. (‘5. 99. '


84 __,.1
5eigen bie @tatiftifen, bag beg. ber @5runbp1‘eifemiagima'h1nb EUiinimaI)
ieine grunbidgiicben llnteridnebe 3mi1d1en ibnen befieben?) ﬁber
bei ben itiibtiieben @5emerbebetrieben iit einmal eine grﬁfgere Q'jemiiin'
baii'nz‘ gebnten, baB bei bem @treben nail) @ﬁeminn br)gieniici)e, fnI:
turel‘le unb ing-iabpolitiicbe Siiicﬁicbten inmie anci) aﬂgemeine %e1:i'ei)1‘§e
intereﬁen unb bergI. nicbt 511 fnr5 fommen?) SQ‘iieit eber i116 331inate
mirb eine @tabt iici) 5. SB. bagn enticb‘lieigen im Sntereﬁe einer an?»
ingialen unb bngieniicben @iriinben 511 forbei‘nben meiiiicmigen
Qﬁobnungépoiitif foftipie‘lige untentable @tra‘fgenbabnlinien anée
5115a11en 3), 19115 iie abet an; iinangjieﬂen Qén'inben 11111: fann, menn ibn
anti) bie rentablen @treifen gebtiren. SUian mirb beébaIb fagen biirfen,
bafg eine geiunbe Qﬁobnnngépo‘litii' ftiibiifcbe @traﬁenbabnen 3,111
%‘01‘a11§iei§11ng bat. $53115 gute fguni‘tionieren beg meitané grbBten
ieiié ber QInftaIten, bie in fiiibiiicber Siegie gefiibrt 5n merben pﬂegen,
in bet iﬁaﬁete, @aé’w 1111b @Ieftrigitatémerfe, @trafgenbabnen 11. a.
ifi- ferner ein Qebenéintereﬁe T111: bie (Sommunen, 511maI bie @ta'bte,
mie i111 bie ifsaiiermerfe ieben anis ciabeﬂe I bemorgebt, bei ben
midnigften SlSetneBen ibre eigenen grbﬁten 2Ib11ebmer- 1inb, unb e2";
iici) bier fiir iie mie Ti'n: aIIe ibre (biinmoinier obne lintericbieb 11m
SBebari banbe1t, befien regeImiiBige 1111b _nnnn.terbrod)ene gBeiriebi:
gang i111 ifn mirtkba‘iﬂidﬁeg @ebeihen ia iiir. ibre (Egiiteng unbee
bingt eriorberiid) ift. @tbrnngen unb idﬁecbteé C511nftinnieren and)
nut eineé bieier %etriebe Iegen ben §8erfeI11 unb bag vgan5e iﬁirte
icbaiiéleben ber @tabt mebr 0ber meniger Iabm 1111b bringen'ibr
n1ie ibrer geiamten iiebiiiferung ben grb'ﬁten @cimben. "Se griiBer
aber bie a‘ﬂgemeine Q5‘ebe11h1ng einer SlInfiaIt {in bag gange Si‘n‘ttnre
unb iﬁirtimaitiﬂeben iii, unb 1e gieid)miif3iger bie ‘Zhnsieiie berieiben
ben eing-einen$et161ferung§ﬂaﬁen 511131112 fommen”, heft-0 mebr iii
im S’mtereiie ber ($5efamtbeii bie ﬁbernahme in bie fiiibtiicbe Siegie
511 iorbernﬁ) @ie @umme "ber. materieIIen Sntereﬁen 11nb baber
.___._____
1) @aéi @rgebnié, ba?» 201D QIneImn) (a. a. Q (“5. 74:) iii: (Sngiaub
fcftgefteift hat, "bag an ben Drteu, fiir beren ilielendﬁung eine @50ieﬂfcbaft
inrgi, ‘baé @ag 11ieI EiIIiger. ift alé ba, 1110 Die @aéanftalten ber 6tabt-
11crmaitung gebb'ren“, triﬁt jebenfaﬂg fiir @enticiﬂanb nacI) ben ftatiftifihen
Qiuéweiien nicht 3n. _
~ 2)%ii1f bie $33011 aI€> @taatgbetricb-fagt n. @I)ebe1‘g, baB "ber @taat
am beften in bet Slage ift, ben ®egenfag 5mifcben bei-n prinaten (55r_1ner[1§»=
unb bem bffcnﬂicben Qierfebréintereﬁe 5n befeitigen (a. a. 53. C5. 108).
3) sHebnIicI) fiir @taatQImbnen n. (Ebeberg a. a. S). (‘5. 100.
4) @hcuin fiir ftaatIicbe Qﬁerfefnganftaiten ilBagnbr, ,,§§i11a1151-11i_ﬁ."‘
58b. 1 6 655. - a .

—-85-
ber ﬁlonomiicben unb iogialen Siiacfn, melclne bieie %etriel1e in ficf)
nereinigen, iit 511 grog”, aléi bafg bie @ta'bte fie ber €Bribatmiriicbait
ﬁbetlaﬁen biirften?) sllnc'i) bei ben @patfaﬁen liegt bie fiabtiicbe
Siegie im nnbebingten Sniereﬁe ber Q3ennger. @iéibtiiaﬁe (511111;
faﬁen bieien eine meit grﬁﬁere @arantie i111: @iclyerbeit unb Qiqnibie
tiit alé private 1111b geniei'gen beéhalb and) in bet 25‘el11'5lfer11ng namenie
licl) im Elliittelftanb unb ben minber bemittelten @reiien niel griiﬁere?»
unb allgemeinei‘eé Qgertranen. @ieieé iit abet eine nntmenbige >801»
'auéfeijung bafi'nt, baf; bie @parfaﬁen ibrem baben iogialen .8mecfe
ber $51berung be; @pariinné unb ber ebenin miclnigen IUil‘ﬁCImTP
lichen Qlnigabe ber @tiirlfung beé ﬁapitalmarfteé in mﬁglimft groﬁem
llmiange gerecbt merben fiinnen.
250m nollémirtimaftlimen 8111eclmaﬁigfeitﬁtanbpnnfte iit bei
ben Qiéafiere, @5115); unb @leftri5itatémetfen, ben @trafgenbabiien unb
and) l1ei ben @cb‘lacbte unb Qﬁebbﬁfen meiterlnn bie nibglicbfte (65 in =
beitlicbfeit beé SIietriebeé 511i01‘be1n. finer l1ebingt
iebe Cl)e5entralifati0n einen uiiniitigen Sliebranimanb non Siapital
unb S211cl1eit‘~’), iiibrt leicbt 511 iatifungleicbbeiten nnb tuft, iomeit
6ffentlicl)e @traﬁen fiir Siolnfe unb S’iabellegnngen in QInipruCl‘) gee
nommen merben miiiien, unnbtige ‘Berfebréftbrungen bernor. SIa‘ei
ben @traﬁenbalmen mirb burcl) @inbeitlicbl'eit bie ﬂﬁinftliclﬁeit,
@cbnelligleit unb @iniacbbeit gan5 lwionberé geftirberi, ba ein ftraifeé
Sneinanbergreiien non einanbet unanbiingigen g11‘al.)nlinien faum
511 erreicben iit. @auernbe Qiorteile iinb anberieit?» iiir bie ﬁoniue
menten (1116 einer Sionlnrreng nericlnebeneit SlBeri'e laum 511 ermatten,
ba bieie natnrgema'ﬁ, Ivenn nicl)t gang nnl)altl1are 31111111111: beranfe
beiclmoren merben iollen, eine reclﬁ; enge bleiben mug, unb e?» be?”
ball) 1‘egelmiiﬁig balb 511 llkeiénereinbarungen fommen with. cElie
allein 5meclma'ﬁige @inlqeitliclﬁeit beg 21‘en‘iel1e6 iit abet nut in bet
Sllieiie 511 erreicben, bafg entmeber illionopole berlieben merben 0ber
itiibtiicber §Betriel1 eingeil'ilnt with. Dben mnrbe anégeiiilnt, baf;
0.116 ($5erecbtigleitégr1'1nben, inmeit EDionopnle erforberlicl) 0ber
iniinicbenémert 1inb, bieie non ben @tiibten ielbit auégeiibt merben
m1'1ﬁen, unb e5 ermliglicln bieé aucl) allein ein einheitlicb eé; 8111 ammene
1) Qlebnlid). a. a. £1 C5 667.
2) @5ebacl)t ift an bie wielpanfnienbnngen fiir bie sBermaltung, fi'n'
Siuln- began. ﬁiibeliieg, fiir einen relatin griifgerenSieferneparf an @traﬁem
lmiibiii'nagen, ‘JJiafibinen unb Damn, baf; Bei bem “Began; ber Siulﬁtuﬁe 2c.
ber grb'ﬁere Qlbi-ieblner in her ETiegel Q3nrteile but, bie ben fleineren entgeben.

_86;
geben ber berfcbiebenen Sl‘etriebe, mie e5 im $ntereﬁe ibrer ‘lbirte
icbaftlicbleit in ancb im allgemeinen Sls“erl'ebrééintereﬁ e 511 miinicben iit.
$0n Sln‘ebeutnng iinD anégebebnie fta'btiicbe ©emerl1el>etriel1e
ancb iiir bie Binberung ber Sronjnnl'turicbmane
fnngen unb Siriien, ba bie @riibte mie ber Qtaat in her
gage 1inb, burcb 8uriiclbaltung non .Qiefiellungen 511 Beiten ber .Sfgocbe
lnnjnnftnr 1111b 9luéiifibri1ng r1011 Eﬁeuanlagen unb $ergrbﬁer11ngen
511 ,8eiten ber iieilonjnnl'inr ani bie S13r0b11l’ti0112311erbtiltniﬁe 1111?):
gleicbenb einguinirfen, meningleicb 5ugegel1en merben mnB, bag biéber
l'neber ber @taat nocb Die @emeinben Die?» in a11€>reicbenbem EJJiaBe
getan baben. €®a§1 3’ntereﬁe, baé bie @tiibte allein icbon megen
ibrer iogialpolitiicben SBflicbten an tnnlicbfter $ermeib11ng griiﬁerer
QIrBeitQlDiiQl'eit baben, iollte iie neranlaﬁen Don bieier wib'glicbleit
@elnancb 511 macben, 511mal iiir iie 511 8eiten ber iief'foniunftnr ber
@apitalmarlt meit giinftiger iit aléi iiir primate (Sﬁeiellicbaiten.
2%011 ben fia'btiicben Gjemerbebetrieben iit ebenin bie {1; b' r b e e
rung ber beimiicben Snbnftrie unb beg illiittele
{tan b e Q mit grbBerer @icberbeit 511 ermarten alé Don Qiftiengee
‘ fellicbaiten, benen megen ibrer reinen @rrnerlignatur berartige ficbténabmen fern liegen. CSDie @ta'bte baben an ber @rbaltnng ibrer Sne
bnfirie 1111b eineé ftener‘fra'itigen Wittelitanbeé ein i0 erbeblicbeé’» aucb
iinangielleé’» Sntereﬁ e, bag iie bei ber $ergelmng non Qlrlieiten bieie in
erfter Slime berii cflicbtigen ftinnen unb ancb nid1tbab0r5urﬁ1l'5-nicbrerlen
braucben auf lleine‘lﬁorgiige 511 bergicbten, bie iie etma bei ber QEere
gelmng im groﬁen 0ber an angrniirtige Bieieranten baben miirben.
@ie Célommunaliiiernng gem'abrleifiet bann ierner eine it e tie
gere unb rnbigere Qintmicllnng ber bier in SBetrarbt
fommenben $etriebe, bie bei beren Brnerl‘ unb Siatnr a'nf3erft
miinicbenémert ift.‘ Qlbgeieben Don ben Siiicliicbten, bie bie @ta'bte
regelma'fgig im $11tereﬂe beé slluéagleicbé Don Scroniunftnricbmane
fungen nebmen fallen, iinb iie meit heifer alé Qlftiengeiellicbaiten
in ber Sage ibre ilBerl'e rubig 1111b ftetig ben jemeiligen 5Bebi'1rfniﬁen
entiprecbenb anégnbanen, ba bieie 11011 ber Qage be?) @elbmarfteé
meit abbiingiger iinb unb biiniig ,,nnr periobiicb in @pefnlaiionée
5eiten” iéergrtigernngen nornebmen fiinnen, ,,n1eil bann bie Qlgiotage
mit ben Qil'iien lebbafter anlocl't”.1) iDie. fiabtiicben @5en1erl1el1e1riel1e
W112]; a. a. £3. @ 6'73.


liegen beébalb aucb i111 Sntereﬁe beé S-‘I'apitalmarlteé, meil bierburcb
fiir ein groigeé @ebiet an @iiel'le ber i11rnnabaiten eine allma'blicbe
limmanblnng be; nmlauienben in ftebenbeé? S‘Eapital tritt.
@cblieﬁlicb muﬁ n0cb nnterincbt merben, mie bie it ar f e 8 11¢
nabme ber ftabtiicben Qlrbeiteriibait, melcbe
bnrcb bie fiiibtiicben @emerbebetriebe 0er11riacbt 111irb, nnll'érnirte
icbaftlicb 511 beurteilen iit. 9%icbt mit llnrecbt mirb fie alé beren
grtifite @eiabr begeirbnet, unb in 1112151111 fiinnen bie @ta'bte bier
nnenblicb niel niigen aber ancb auberorbentlicb biel icbaben. @nrcb
meitgebenbe iogialecﬁiirinrge, bnrcb ftarl‘e QInébebnnng ber gllrbeiter;
icbgbmaﬁregeln 1111b brirrb $eri1cliicbtigung gereifbter 9lrl1eitere
inrbernngen limnen bie @ta'bte ibre @1emerl1el1etriel1e 3,11 11111111611-
anftalten anébilben 11110 in her @05ial110litilf groBe @ienlte leiften,
inbem iie bie S13rit1atinb11f11'ie 511r Eliacbabmung aneiiern. @roﬁ
aber iit bie (Sje‘iabr, bag iie bierin 511111eit geben. QBiibrenD in ber
slérinatinbuitrie ber Qlrbeitgeber 110m Qlrbeiter inioiern abbiingig
iit, al?» er ber 9Irl1eit§5lraf1e 5ur sllnirecbierbaltnm; ieineé *Berriebeé
bebarf, Inie nmgel'ebrt Denn and) ber illrbeiter 110m QIrbeitgeber
abbiingt, meil er ber 91lrl1ei15ge1egenbei1 5111‘ Qlnfrecbterbaltnng ieiner
mirticbaftlicben (Erifieng, beniitigt, fnmmt bei ben ftiibtifcben $15etrieben
iiir ben Qlrbeitgeber ein Ineitereé QIbbiingigfeitémoment iﬁllﬁll infolge
ber ,8niammenieg11ng ber @tabtparlamente, 11011 beren 2753illen in
lebter Qinie namentlicb infolge ibre?» Qinbgetrecbté alle (£1111 ibeibnngen
ia iogar 0ft bie (Erifteng, ber Qeiter abbiingen. C@ie berricbenben
SJSarteien glanben leiber 0ft 5111‘ grtiﬁien Siacbgiebigleit aucb 1111;
billigen $~0rbernnge11 gegeniiber gegmnngen 511 iein, 11111 bie QIrDeiter;
icbait bei gnter Banne 511 erbalten, Inenn iie nirbt bie @iimme ber
ftiibtiicben mie aucb ber iibrigen SXrbeiter berlieren unb i0 ibre Slliebre
beit anféi @piel ieben mollen. F511 ber gleicben Siicbtnng ruirft eine
gelriﬁe illngft burcb llnnarbgiebigl'eit einen @treil‘ ber ftiibtiicben
91rl1ei1er ber00r3,11r11ien. Slaﬁen iicb bie @tiibte 10 511 ﬁbermiiﬁigem
Cintgegenlommen inébeionbere in ber Qobnirage Derleiten, in icbiibigen
fie babnrrb bie Q§0lf§111irticbaft aui has“; iinﬁerfte. cgen nnmittelbaren
@cbaben merben bie Sirmiumenten tragen, inbem man 511 Sari?
erbtibungen icbreiten muB, 11m ben Qlnéfall inert 511 macben, 0ber.
aber, menn man iicb biergu nicbt enticblieBen fann, bie @tenern
erbﬁbi, ein @cbaben, ben nicbt' n11r bie Qieﬁeriitnierten innbern

._ 88_
auib bie nicbt itiibtiicbcn 9lrl1eitcr ii1i'1ren mcrbe11.1) Elliittclbar mcrbcn
al1er bie ‘gangyen @cmerbe ber @tabt unb cineév wciten Ilmt'rciieé
gcicba'bigt. llntcr ibren QIrBeitcrn merbcn nnbcrccbtigte illnipriicbe
groiggcgogen unb llnguiriebcnbcit geiiit, unb e5 mirb entmcbcr 511
@treil'é mit ibren groigen mirticbaitlicbcn @cbiiben fommcn, 0ber
bie Snbuitrie iit gegwnngcn bem Seiipicl ber @tabtriermaltnng
5,11 iolgcn, 11101111111) iie cine nntcr llmittinben uncrtra'glicbe @inbuige
an ibrer g-‘Cont'urrengiiibigt'eit gegcniiber ben anberen QBcrt'cn obcr
gar bem Qluéilanbc crleibet. @en @cbaben ba'tte in jebcm {yallc bie
Gjeiamtbeit cinicbl. ber nicbt itiibtiicben gllrbeiter, bie beébalb ancb
bag griiﬁte Snterciic baran bat 511 ncrbinbern, baig bie @tabtparlae
mcnte iicb 0crleiten laiicn in ibrem Gintgegenlommcn gegeniibcr
ben Filiiinicbcn ber itiibtiicben Sllrbcitericbait 511 meit 511 gebcn. Sll11igal1c
ber @tabtnermaltungcn mnig e6 bcébalb iein ibre 9511rger 1"1l1cr bieie
111irticbaitlicben C5~r1lgcn einer ﬁbcrireunblicbcn Sllrbeiterpolitit' uni;
5ut'liiren. @aiin mirb ibnen nicbt nnr 11011 ben Ql'rbeitgebern, ionbern
and) 111123 ber groBen SJiaiic ber ﬁﬁa'bler bag 1111111131111- gcita'rt't Iverbcn,
inenn gilt 11nl1crccbtigte Ygorbcrungcn al1511lebncn. Qlnberieité
l1citebt iiir bie @tabtnermaltnngcn unb bie @tabtparlamcnte aucb
bie groigc 2§era11tm0rt11ng, baig iie brircb cin 511 gcri11gc§®ntgcgen¢
tommen, bnrcb 511 itartcfe; Sgcrmrtebren bee“; Sgcrrenitanbpnnl'teé
@trcil'é in ita'btiicbcn Sll‘1etriel1cnbcrrmrruien, bie megen beren Scbcue
tung i111 baé gang-e QBirticbaitéleben ber @tabt nocb cine mcit ber;
becrenbere Sliiirt'nng aufa'ibcn miiiicn alé innit. (big banbclt iicb alio
iiir bie @tiibtc 11m bie ii11i3erit icb111ierige Qlnigabe ben ricbtigcn
Sliittclmeg 511 iinben. Sbre Biiiung mirb ibnen aber iebr erleicbtcrt,
111enn iie ben Qlrbciterauéicbiiiien alé ben $crtrctcrn ber 2lrl1eit;
nebmcr ibr Qbr lcibcn, anberieité aber ancb bei ibrer Qlrbciter;
politit in cngiter éﬁiiblnng mit iog-ial bcntcnben unb mirticbaitée
politiicb meitiebenben Qirbeitgebcrn (111% 311bnitric 1111b 1311111111101
bleiben. @anbeln iie i0, bann iit bie beitc @arantie iiir cine Dere
niinitige Qirbeiterpolitit’ gebotcn, bie ben Qlrbcitern gibt, mag ibnen
1) @ebr ricbtig iagt SJiajor @arwin, aui ben iicb Borb Qlnelmrb
(a. a. D. Q. 42) bernit: ,ﬂBarmn ben 23ri11atarbeiter icbiibigen, 11111 bem
itiibtiicbcn QIrBeiter etrnaﬁ ®ute§ 5n erweiicn? @er 11atnrge111i1'i3 11011 1mg
allen gebegte QBnnicb, Da§ 53018 beg itiibtiicben ﬂrbciter?» nerbciiert 511ieben,
reibtiertigt ein iolcbeg Qieriabren in feiner QBeiic.“ -$30rb Qlnelmrr) 5iebt
bierau?» aber 11icbt bie cinaig ricbtige ﬁmiiequeng, baig bie iiicbt itiibtiirben
Qlrbeiter cin Snterciie baran baben, cine bcrartige llngerecbtigfeit 511 0er=
binbern 1.1110 be¢5ball1 Die @brigfeit inibrem QBiberitanbe gegen ungerecbtﬁ
iertigte 3~0rber11ngen ber itiibtiicbe'n Qlrbciter 511 niiteritiiben (i. nnten i111 $egt.)
__89_
gcbiibrt, bie anberieité aber ancb Siiicliicbt nimmt ani bie Qirbaltung
ber ﬁnni'urrengjiiibigfcit ber prinaten Qirbcitgeber. Q'lucb bie ($1eiabr
bcé @treibé iit bann aui ein ‘Iliinimum rebngiert, namcntlicb menn
bie @tiibtc ba511 ﬁbergeben, mic icbon in groﬁcm llmiange gcicbeben,
1'1'ltercn, itiinbig in itiibtiirben cTlQicniten itcbenben Qlrbeitcrn QSeamtcne
Qnalitiit bcig-nlegen unb i0 beren $511tcreiien 1101b icitcr mit ben
it1'1'btiicben SBctricbcn 511 bcrtm'ipien, alé e6 icbon allgemcin bei ben
gllrbcitern bnrcb bie mannigialtigen C{yi'nsiorgc111ai51egeln geicbeben
iit!) Qiéiirben bie. ita'btiicben Setriebc bnrcb i1ri11atc criegt, i0 1111'irbe
(1)-mar bie @1eiabr ber @1biibig11ng ber Qhlfémirticbait burcb ﬁber:
triebenc éﬁacbgicbiglfcit gegcniiber ben Cfynrberungcn ber illrbeitere
i rbaitgeminbcrt 10mm aucb nicbt l1eieitigt mcrben, ba bocb aucb bier
bie (55eiabr bcitcbt, bai; eingclnc 1.1nter beinnbcréé giinitigen 5cbi11g:
_ 1111gc11 arbcitenbe 2111111 cine 2lrbciteri10litif treiben, 111el1bc mitgju:
macbcn anbere Snbuitriegineigc mit Qirbeitern berielbcn Srancbe
nicbt in ber Bage iinb. QInbcricité aber biirite bier bie Qiciabr bei;
@treilé megcn 511 geringen @ntgegeni‘ommeng cine meit grtiigere
iein, unb bie @ciamtbeit bat an ber 93crmeibnng bcrartiger. @trcilé,
11011 benen iie gerabebei ben 95etricl1en, 111el1be Die @ta'bte bcntc in
grbigcrem Hmiange iibernommcn baben, 1111i D116 cmiaiinblicbitc
1111b nnmittelbarite getmiicn 1111111,. ein i0 cminenteé 8ntcreiic, baiz
ibr cine. gcmiiie @011tr0llc unb ein maiggebcnber @iniluig vani bie
QIrBeitcriwlitil' bieier "Betriebe 511itcben mnig. @ic eiiigige ﬁlietricbPe
i01‘m, bie bie?» crmtiglicbt, iit bie itabtiicbe Siegic, 1111b e6 miiiicn
bcébalb trot; ber nnnerl'ennbarcn @ieiabr, bai; bie Cétébtc burcb
§5~cblcr in ibrer Qirbeitcriwlitif bie gIs‘oll'é‘anirticbait icbiibigcn fiinnen,
aucb 110m @tanbpunt'tc ber gllrbeitcrirage 11115 bei ben iiiiaiiere, @5116’
1111b Qilcttrigitiitémerfcn inmic @tra‘genbabnen, Die in bieier {piniicbt
allein 11011 maiggebenber Qiebcntung iinb, bie itiibtiicben SBetriebc
alé bie bolténnrticbait-licb 5111c111ni1i1igercn begeicbnet 111erben.
1) 8‘11 Qietracbt 10111111011 11. a. %11111ilie11= 1111b ienernug56111aqe11,
9J1ie1511icbiiiie, @pareiulagen, iifsriimien, Girl)0I'111196111I1111l1, Qnlmi0rt5abliing
bei furgen ll1iterl1'recbungen, QiIter§= 1111b @interbliebenenﬁerinrgnng 1111b
@terbegelber.
Bebcnélaui.
31b, ‘l'llireb slllbeitt Sli‘silbelm Siaupacb, murbe am
14. %eb1111111888 alé @0bn beg 9lrcbitel’ten Qsgl'nalb 911111411111)
nnb ieiner $11111 sllnna geb. @cller 511 @blwﬂinbcntbal
geb0ren. 31b bin enangeliicbcr ﬁonieiiinn unb prenBiicber
Qtaatgangcbiiriger. 31b abinlnierte bie @berrealicbulc 511
(Sbln @itern 1904 unb itubierte bann 0011 Qitern 1904 bis”;
Sperbit 1906 an ben clccbniicben @01bicbulcn 511 (Ebarlottcnbnrg
unb Sllacben §Bauingenieurélliiiienicbait. Q3011 {oerbit 1906
bi?» @erbit 1909 mibmete icb micb an ber llnincriitiit $801111
bem @tubinm ber @taatéiniiicnicbaiten unb gleicbgeitig an
ber Sﬁanbelgbncbicbule 511 @bln bem @tubium ber @1111bel§=
miiieni1baitc11. @itcrn 1909 beitanb icb bier bag @iplmw
@gamen. Q1011 @erbit 1909 ab bin 111) i111 niiterlicben @1ei1b1'iite
tiitig.
Qabelle l.‘)
@1601. QBaiierwerfc 1907—~08 begm. 1907.


8fbc Qlnlage= (mfammmmgabgage befgn' Emmett“? (518i ai11tcin= giimgg a“??? 3°
3 ~ . - 4aoé~éiiﬁé§o6pz cric = 811161 11. ii 21 11 85%,
gm. 61abte mcrt 111 1205?; I; i . nabmen ‘ ' auégabcn ﬁbgigigbgégibnan in i
1000 9111. C m 53°66 5,395); 525 5,53; 111 1000 2011. in 1000 iUif. 1000 mi 1000 9011. £539
s 4641 5 279,9 0,9 4,6 69,8 24,7 675,5 307,8 62,8 367,7 7,9
1 Ilurbcn . . . . . . . . . . . . . . . . .. (mm 4 641,4 4 371,9 675,5 307’8
, 7 664 9683 1,9 3,6 94,6 — 1 214,9 312,6 361,0 902,3 11,8
2 81101111 . . . . . . . . . . . . . . . ... __ ___ _ __
3‘ 8 447 9 740 0,7 1,8 64,8 32,7 1 033,1 389,3 439,3 643,8 7,6
3 barmen . . . . . . . . . . . . . . . .. 8.44637 9 740,1 1 0793 435,5
6 , 83 001 67 940 6,7 84,0 9,3 9 319,6 2 698,7 3 679,0 6 620,9 8,0
4 ¥Berlin . . . . . . . . . . . . . . . . .. __ 67 940, 9 683,8 6. 857,2 , \
- 17 860 5,6 2,1, 90,0 2,3 1 063,9 413,2 417,0 660,7 _
5 81111111111 . . . . . . . . . . . . . . . . .. _ __ 1 ‘ _ _
. 1 5 005 3 959 12,3 80,7 7,0 476,3 142,5 186,8 333,8 6,7
6 Qiraunicbmeig . . . . . . . . . . . . . __ _ __ _
10 131 16 093 962,7 558,4 480,1 404,3 4,0
7 2118111211 . . . . . . . . . . . . . . . . .. ‘ _ _ __ _
/ 16 312 14 860 12,6 8,5 72,3 6,6 1 796,1 617,2 1 243,6 1 1789 7,2
8 811611111 . . . . . . . . . . . . . . . .. _ J5 318:9 1 754,4 631,4 _
6 266 4 831 19,5 61,3 29,2 662,6 188,7 374,7 473,9 7,6
9 @ﬂﬁﬂ . . . . . . . . . . . . . . . . . . . _ u _ 4 831.2 ’ I 803'] i 3292
19 816 10 824 4,2 2,9 I 76,9 17,0 1 394,5 312,2 1 068,2 1 082,3 6,6
10 ﬁbarlottenburg . . . . . . . . . . .. _ _ 10 824,3 i 1 288,4 184,5
_ 12 803 4 640 26,3 74,7 -— 876,0 208,3 614,8 666,8 6,2
11 @bemnit; . . . . . . . . . . . . . . .. Vlaiazdi 4 540,4 869,1 206,3 ’ _
__ 14 807 ’ 21 087 21,3 66,6 12,1 2 112,9 582,9 495,0 1 529,9 10,3
12, (511111 . . . . . . . . . . . . . . . . . . .. 14 807:4 21 087 2 112,9 582,9 3 840 6 025 3,1 8,3 87,6 1,0 684,3 150,0 226,0 534,3 13,9
13 @reielb . . . . . . . . . . . . . . . . . .. _ 3 836,4 6 025 684,3 180,7 _ a
_ 4 749 10,0 3,0 67,3 29,7
14 “81111311; . . . . . . . . . . . . . . . . . . . _ _ 4 748,6 _ _
16 180 31 102 19,6 80,4 — 1 771,5 538,9 994,6 1 232,6 7,6
15 @ortmnnb . . . . . . . . . . . . . . .. _ _ _ _ ‘
' 21 905 18 721 8,3 74,3 17,4 1 846,7 601,0 1 209,0 1 245,7 5,7
16 @reében . . . . . . . . . . . . . . . .. _ 18 712 _ _
3 707 7 168 528,9 146,0 257,5 382,9 10,3
17 Quiéburg . . . . . . . . . . . . . . . . _ _ _ _
' 7 988 16 284 8,1 80,0 11,9 1 446,7 336,1 223,8 1 110,7 13,9
18 cEiiiielbori . . . . . . . . . . . . . .. _ N 8 52316 16 284,4 1 59215 46118 _
8 219 10 110 0,9 2,4 70,7 26,0 937,2 630,3 364,9 406,9 6,0
19 Elberielb . . . . . . . . . . . . . . .. __ __ __ __ . '
2 555 2 629 9,2 6,2 84,3 1,3 386,8 104,4 140,5 281,6 11,0
20 @riurt . . . . . . . . . . . . . . . . . . _ 3 919,1 420,1 167,1
- 3 382 12 115 0,6 6,9 68,3 26,2 1 080,2 519,9 410,1. 660,2 116,6
21 @ﬁﬂt . . - . . . . . . . . . . . . . . . . . _ "M 3 .— 1 _ w i
_ 33 671 21 219 4 089,4 1 711,8 1 633,1 2 377,7 7,1
22 '{qran'finrt (91211111) . . . . . . . .. __ 21 118,4 _ _
6 494 6 360 2,2 6,4 71,2 21,2 674,8 220,7 188,6 464,0 , 7,0
23 Séﬂﬂe/g. . . . . . . . . . . . . . . . . . 6,494 5 360 674,8 220,7
36 5352) 48166 2,6 96,6 0,9 41019 1 982,6 1 668,0 2 119,2
24: Sgamburg . . . . . . . . . . . . . - - - v __ 48 165 4 442,1 3 806,98 m» _ “wow “H x
11 988 12 162 21,7 69,8 8,5 1 543,3 362,5 709,2 ' 1 180,8 9,8 '
25 @ammber . . . . . . . . . . . . . . . . .r ‘ _ 12 162 1 543,4 491,5 ~ '
3 369 6 062 11,1 10,7 76,0 2,2 681,2 151,2 142,3 630,0 15,7
26 911116111110 . . . . . . . . . . - . . . . _ w_m3_3~62b5m M m" ___5m0&r):g_mw wuu 68112 151,2
6 069 4 267 8,8 1,8 66,9 22,6 663,7 393,2 270,4 270,4 6,3
27 Si‘iel . . . . . . . . . . . . . . . . . . . .. __ __ _ __
' 9 12] 6 345 5,1 65,2 29,7 922,7 495,2 434,5 427,5 4,7
28 ﬁbnigéberg . . . . . . . . . . . . . . __ __ __ _
I 15 376 13 618 6,9 82,0 12,1 ‘ 2 216,9 608,4 999,6 1 708,6 11,1 ‘
29 . . . . . . . . . . . . . . . . . . m 894/1 13 512'12 ~m- w2 084,3? 465,2 “~—
7 496 8 293 4,3 7,0 74,3 14,4 811,5 247,0 322.9 564,4 7,5 _
30 ‘magbeburg . . . . . . . . . . . . .. __ __ _ __ '
2 340 2 185, 7,0 6,3 76,8 9,9 510,3 192,7 114,6 317,6 13,6“
31 92111115, . . . . . . . . . . . . . . . . . . . _ 05316 2 1668 - 60,50 286/4 . ~
6 667 6 276 16,6 6,9 64,8 12,8 968,4 243,2 372,6 726,2 10,9
32 BR1111111111111 . . . . . . . . . . . . . . . M 6' 275 922,0, 196,8
. . 46 636 23,6 7,7 68,6 0,1 2 158,1 390,17" " 1 114,0 1 767,9 ‘
33 Wiiﬂdﬂﬂ . . . . . . . . . . . . . . . . . 45 536/7 2 419,3 679,5
_ 8 002 9 460 13,8 7,9 73,8 4,5 886,9 201,5 470,7 680,4 8,5
34 iltiirnberg . . . . . . . . . . . . . . . . . N7 1500 _ 9 450 964,5 284,0
6 972 1 670 6,0 6,4 82,7 4,9 310,8 68,1 262,7 262,7 3,6
35 25111111211 . . . . . . . . . . . . . . . . . . __ _ ~ __ _
4 673 3,2 4,9 43,6 48,4 7743379“ 233,1 214,9 200,8
36 Qéoien . . . . . . . . . . . . . . . . . . . _ __ __ __
4 7647 7 7 67362" 7“ '47 8,4 68,3 18,6 " “7‘ ‘79“41‘6' 260,6 180,6 643,9 11,4
37 Etcttin . . . . . . . . . . . . . . . . . . . ,1 754,7 5 35? 781,9 251,2
6 774 7 787 60,3 13,0 36,6 1,1 76117877 160,6 461,3 8,0
38 @traﬁburg . . . . . . . . . . . . . . . 5 60,5 7 737,5 611,8 76,4
10 428 9 934 10,7 1,6 78,1' 7 9,67 369,0 387,0 414,2 982,1 T4
39 Etnttgart . . . . . . . . . . . . . . . . 9 973,0 9 93] 1 455,2 517,5
'7 127199 4 326 6,6 8,0 66,1 19,3 m 943,6 M 343115“ "606,4 700,4 5,7
40 Qbie'ébaben . . . . . . . . . . . . . . . 12 199 4 335 945,2 238,7
1) Qinigeitcllt narb bem ©1111. sabrb. ‘19. (5t. 23b. XVII (gcrabeitebenbe Bablen) 11110 111111) bem @0111. ﬁabrb. 1910 (iibriige' gablen).
2) 1006/07.
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CiRIbeiIe ll.1)

@ﬂibt. Saéwerfe 1907-08 535w. 1907.


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1) *Mufgcfteﬂt 11nd) Dem @101. $115136. $3. @tiibte Q30. XVII (gerabeftebcnbc 811M211) unb bem @0111. ﬁclbrb. 1910 (fcbriige 355155).
2) ‘lﬁei ben Bafﬂen be?» ("51:111. 3110111. 11110 bie (53111996111011 an?» 55557155155535, ﬁffcntl. %elel1d)tung, Binfcn, 91114155 11. bergI. alxégefcbinﬁen.

Qlbgcgebene @trmabmen 2) ggemebgz QIUQQ‘IBCE‘F wt 3 g ‘f Qlnlagemert %etriebs3= ﬁfbe. ,, @agmenge v I auggaben Bmfen,‘ Imufgung 453.32 ' H ‘ l 3; =
int @tabfe in . m in 116 SRucEIagen :3“ 1n uBerfdmB m 55;“:
- . 311 rneuewng§= g- d 1&3 31
1090 Chm 1000 9111. 1000 91115 font)?» in 1000213111 5 E; 1000 émf' 1000 83%- 295133
0 =31,-
11 774 2 022 1 235 1325 -~ - 737 -
1 wtnna . . . . . . . . . . . . . . . . . .. __ __ _ _ __ _ _
2 Q; 15 793 2 025 1 299 171 - _ 727 -—
0 “we” """""""" ‘ ' 15 793 2 337,5 1 407,3 - 5,1 3 329,1 929,7 27,9
3 Q3 T 252 930 39 277 25 393 5 340 - — 12 334 --
°‘ ‘“ """"""""" ' ' 252 930 42 335,9 29 512,3 _ ’_ 135 057,3 12 373,1 9,4
7 239 993 714 174 -_ - 234 -
4 $orbum . . . . . . . . . . . . . . . . .. 7 289 _ __ _ _ __ _‘ _
3 450 1 335 932 293 _ - 404 -
5 23151151511551; . . . . . . . . . . . .. 8 451 5 _ __ _ __ _ _ _
6 Q; . 23 705 4 512 2 520 773 - — 1 392 -
rem“ """""""" ' ' 29 979,4 .5 243 2 995,3 - 7,32 12 913 2 252,2 17,4
7 23 ,E 33 495 5 172 3 333 1 433 —- - 2 739 —
7395"" ..........'. . . . . .. 38496 6493] 3377,54 __ 69 _ 3116; __
8 s , I 10 155 1 1 719 1 213 271 - — 501 _
aﬂe . . . . . . . . . . . . . . . . . .. 10 166 2022.6 1 301 _- _ _ 721,6 _
45 353 . 5 745 3 539 1 033 -- — 3 105 -
9 (SImrInttenburg - . - - - - - - - ~ - - 45 368 7 252,7 4 043,3 - 4.9 14 773.4 32044 2177
, 17 547 —- - — - — — —
10 Gbemmt; . . . . . . . . . . . . . . . .. 17 647 32933 1 803,2 _ _ _ 1 49077 _
11 s“! 45 759 5 702 4 121 903 _ - 2 531 _
"n ,45759 5735,2 4121 _- 433 307754 25152 35
11 945 1 952 1 139 335 » — ’— 313' ' —-
12 swim """"""""" ' ' '11 945 2 147,9 1 254,2 _ 3 04 5 500 333,7 12,5
, 3 942 1 535 1 032 233 — — 554 -
13 621111511; . . . . . . . . . . . . . . . . . .. 8 949 __ _ _ _ __ __ __
- 43 795 7 439 4 313 159 - -— 2 525 —
14 6511395211 . . . . . . . . . . . . . . . .. 48 795 _ _ __ __ _ _ _
_ _ 7 349 1 033 593 330 — - 395 -
15 @mébmrg . . . . . . . . . . . . . . .. __ __ _ _ _ _ _ __
,, 23 359 4 112 2 317 530 — - 1 795 . -
16 @“ﬁemm """""" ' 1' 23 359 4 433 2 541.5 - 4.3 14 925,2 7 345,5 12,3
13 573 2 473 1 553 55 - - 92 —
17 (ilberieib . . . . . . . . . . . . . . . . 18 673 _ __ _ _ __ __ 5 __
' 18 6 , 12 743 1741 1222 350 — — 519 —
hen . . . . . . . . . . . . . . . . . . .. 13 109 2 523,3 1 222 _ _ _ 1 301,3 _
350 550 522 59 - - 23 —
19 granfiurt a. 9R. . . . . . . . . . . _ __ _._ _ _ __ _ _' ;_
10 344 1 553 1 091 112 — — 557 4-
20 83mm ‘1 6' """""" " 10 344 1 345.5 1 091 -- 9,13 5 954,9 754,5 12,5
35 533 14 023 3 557 - - - 5 ‘371. _ '
21 @amburg . . . . . . . . . . . . . . .. 85 6.88 _ _ _ _ _ _ __
' N - 13 935 2 555 1 905 153 - , —- 550 —
22 gmmuﬁe """"""" " 13 935 2 700,7 1 907,5 _ 3,19 4 049,4 , 793,1 195
I . 15 503 2 153 1 545 325 - -— 507 —
23 $313! . . . . . . . . . . . . . . . . . . . .. __ _ _ _ . __ __ __ __
, , 17 300 3 059 1 730 914 - - 1 239 —
24 9011111362111; . . . . . . . . . . . . .. _ _ __ _ __ __ ‘ _ __
a , , 35 503 5 031 4 352 1 040 - - 2 279 -
25 4ew$1g . . . . . . . . . . . . . . . . .. 36 603 5 233,2 2 661,2 _._ 7.4 __ 2 572 _
_ 17 125 2 952 1 379 593 — — 1 033 -
26 2925115551111; . . . . . . . . . . . . .. 17 125 angle J“ 1 28314 M __ ___ 7 828,8 __
2m _ - 9 574 - — - — .— - -
27 “m3 """"""""" ' ' 9 573 1 340,7 1 193.9 -~ 9.51 3 345,7 541,3 15,7
2m , 13 550 2 273 1 511 530 — '— 757 -
28 mmbeun . . . . . . . . . . . . . .. 13 54114 2 895,4 2 447,6 _ 6:28 __ 447,8 _
_, 27 553 5 705 3 505 951 - - 2 200 -
29 9131111111311 . . . . . . . . . . . . . . . .. 27 6.58 6 979 4 407,4 __ - __ __ 2 571,6 __
my D ‘ 24 552 4 774 2 929 372 -— — 1 345 -
30 "t" "g """""""" ' ' 24 552 4 535,4 2 521,5 - 3,99 10 000 2 053,3 20,5
1 9 555 1 512 355 321 - - 545 -
3 51511111011 . . . . . . . . . . . . . . . . .. 9 556. [733/5 1 000,6 _ _ __ 7 32%,) __
, 10 099 1 773 1 255 323 - — 513 --
32 ‘Jsoicn . . . . . . . . . . . . . . . . . , . __ __ __ _ __ _ __ ‘ __
I, 13 513 2 443 1 370 331 — - 1 073 -
33 91111901"? . . . . . . . . . . . . . . . . . . N ___ ___ __ _ __ __ _
4 ~ , 14 552 1 953 1 047 330 - —- 915 —
- 3 ' mm" """""""""" ' ' 13 339 2 373,9 1 353,5 - 7,51 5 544,5 1 015,3 15,3
0 25 773 4 295 3 342 200 -- ~— 954 -
35 wtuttgart . . . . . . . . . . . . . . .. 25 773 4 884 3 754 __ 7:66 _ 1 129,6 _
_ A 11739 2 054 1515 359 - - 539 -
36 Qﬁwébaben . . . . . . . . . . . . . .. 11 739 1 885,6 1 225,6. w _ 7 310,1 660 9’0
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$059113 llll)

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$11151. @Ieftri5itiitéwerfe 1907-08 525111.
1907.

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o 3‘, 4.; “$1.5 $5
8153 QInIagemert QIBQQQQBQTEQ (51111105111211 $411253 a 31111 9421551111; ?BE’EIi€5§= int ' (516919 111 mugiegergte 111 1111511115011 111 iiberf 151113 111 ' 1000 9011. 1000 51. 23.151. 1000 3111. 1000 3111. " 10223 In 1000 9111. 13525
15 =9 1000 11111. 4,44.
. — 3 235 1 225 521 - 244 704 -
1 ~ mm" """""""" " 4 309,9 3 235 1 247,5 542,4 5,07 — 705,1 14,7
1 -— 4; b/U 1 19b 40]. — QUTZ l9? --
2 1211101111 . . . . . . . . . . . . . . . . . .. _ _ _ _ _ __ _ _
— 3 lbb 803 369 —- 18!) 4:34: ~—
3 mum" """""" " 3 445,7 3 155 902,5 523,1 9,0 — 374,4 10,3
— 1 444 434 151 - (105) 273 -—
4 $015901 . . . . . . . . . . . . . . . . .. __ 12 039 488,9 215,9 14,95 __ 273 _
_ — 8 128 1*53/ 1555 - 435 97? ~—
5 meme“ """""""" " 7 524,5 3 123 1 931,7 952,1 11,71 -— 1 029,5 13,7
, — 9 525 27145 934 — 954 1 451 -
6 2mm" """""""" " 11 253,3 9 525 2 115,3 554,2 5,3 - 1 451,1 12,9
- 3 328 303 331 -_ 215 412 -
7 6111121 - - - - - - ' ' - 5 - ~ ~ - ~ - - '- 3 433,5 3 323 : 750,3 233,8 3,57 — ' 471,5 13,5
_ 12 537 - _ _ - - -
8 mmmmmmm """"" ' ' 10 055,1 12 293 - 2 437,2 939,5 7,15 —- 1 447,7 14,3
, - 5 339 ' 1 224 422 _ 451 302 _
9 5mm“? """""""" " 5 055,5 5 744 1 350,9 450,5 5,34 —- 900,3 14,3
‘ - 22 139 2 355 1 273 _ 934 1 533 —
10 (gm """"""""""" ' ' 12 430,3 21 739 2 355 1 274,2 5,04 - 1 531,3 12,5
-— 3 975 745 230 _ 241 455 -
11 (3121915 ---------------- -- 2 573,3 3 975 714,3 140,4 5,25 — 573,9 5 22,2
' , _ 1 443 —- - _ — - -
12 - gm"! """"""""" " 3 573,9 997,3 531,7 152,7 11,24 - 459 13,1
3 - _ 12 445 1 933 390 _ 743 1 093 -
13 @mm“ """"""" ' ' ‘ 10 075,1 1'2 445 1 929,5 735 5,32 - 1 143,5 11,3
14 @reébcn . . . . . . . . . . . . . . _ 4?}8 1388 _ T8 2530 _
, - 5 002 553 304 - 251 259 -
15 2311131111111 . . . . . . . . . . . . . . .. __ 4 6.05 _ __ __ __ _ - __
_ 11 507 1 943 730 - 470 1 153 -
16 @"75e‘b'ni """"""" " 11 594,7 11 507 2 110,2 727,7 5,32 - 1 333 11,9
, _ _ 10 197 1 451 520 — 391 941 —
17 ’ (ilberyclb . . . . . . . . . . . . . . .. ____ _ _ _ _ __ '_ __
' - 2 241 545 254 - 31 232 -
18 (5111111 . . . . . . . . . . . . . . . . . .. __ _ __ __ _ __ _ __
_ 23 529 4 351 1 759 - 913 2 532 -
19 mmﬁm “' sm- """" " 15 397,2 23 529 4 351 1 305,9 - 5,3 ' — 2 544,1 15,0
- 4 052 351 320 _- 335 541 -
20 59“!“ “' 6' ""1 """" " 5 033,5 4 052 927,9 337,7 3,33 , ~ 590,21 11,5
— 4 339 1 575 530 - 341 1 045 -
21 ' @“mnm """"""" " 3 534,4 4 339 1 435,5 391,4 17,5 - 1 045,2 12,2
- 1 254 554 303 - 203 251 -
.22 511111511152 . . . . . . . . . . . . . .. 2854’9 1254 554 303 24,98 __ ' 251 8'9
5 - 1 925 315 544 _ 152 272 -=
23 51121 . . . . . . . . . . . . . . . . . . . .1 2 787 1 959 816 549,6 28,05 __ 266,4 9’6
.. . 1. — 4 709 1 157 925 - 130 242 -
24 mmggberg """""" " 4 155,5 4 533 1 197,3 537,9 13,5 -— 559,4 13,4
, , - 3 155 1 337 372 - 543 955 -
25 291113111 . . . . . . . . . . . . . . . . .. 7 058,4 2 011 1 338,4 3 824,) "9,24 __ __ __
_ — 7 393 1 735 594 - 531 1141 -
26 Wagbcbmg """""" " 5 432,7 7 332 1 735 534 7,33 - 1 151 21,2
_ - 3 921—“'— m H - - ~— —- —— ,—
27 imam """"""""" ' ' 3 945,1 3 921 355,5 242,5 12,97 - 524 15,9
_ - 9 329 1 554 547 - 574 1 007 -
28 91201111501111 . . . . . . . . . . . . . .. __ __ __ _ __ __ ~ _
u - 13 349 4125 1 515 - 1 350 2 511' -
29 ﬁlm,“ """""""" ‘ ' 27 349,9 21 117 4 595,7 1040 5, 4,53 -_ 3 555,2 13,1
,_ — 3 253 1 191 393 - 273 793 —
30 2121111152111 . . . . . . . . . . . . . . . .. 4527/9 3258 1 191 404,3 12,4] __ 786,7 17,3
- 4 439 774 255 - 310 513 -
31 11511111211 . . . . . . . . . . . . . . . . .. __ _ __ _ _ _ __ __
, - 1 111 342 202 - 125 140 -
32 2591911 . . . . . . . . . . . . . . . . . .. 1938’s. 96.2 367,4 203,4 18,3 __ 164 8,4
_ _ _ — 344 121 75 -- 40 45 -
33 @tcttin (metbegwf) . . . . . . .. 803,8 3,” 101,2 55,8 28,1 45,4 I 5,6
- 12 057 2 474 1 075 - 705 1 399 —
34‘ @tmmm """"""" ' ' 15 373,9 12 073 2 459,1 1 059,9 3,35 - 1 399,2 3,3
, , - 5159 1 455 721 _ 493 734 -
35 2931995115111 . . . . . . . . . . . . . .. 5 713,1 6 159 1 374 589,5 _ __ 784,5 13,7
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$115125. ‘9. 65111512 255. XVII. (gcrabeftelynbe 8115521) 1111b 11015 bem @0111


. 35515. 1910 (11515511555551 355155).
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@traﬁenbabnen 1907.


Quint. Qmmqemert H Q581ti85§= §581r185§§= 2381131853= i9 Subuﬁe
53159. 6tabte' 0ber ,‘ $abnhmge einabmen 9111313116811 1185881861113 in
9}]; . m in km in in in 5353? 10 Ogmf
$81188 1000 9111‘. 1000 918. 1000 imf. 1000 SUEf. g 0 -
1 90183811 . . . . . . . . . . . . . . . . . . . P. 3 8542) 50,63 2 187 1 462 725 16,2 ——
2 8111mm . . . . . . . . . . . . . . . . . . . P. (61868 Spamburg —- — -— —~ — —
St. 1 4072) 14,59 344 245 98 5,9 47
3 23118111811 . . . . . . . . . . . . . . . . . P‘ 4 368 24,16 973 685 288 6,6 __
4 95881111 ................. . . 7.P:°’) 137 287 521,42 37 151 22 815 14 335 10,4 -
5 $01M!“ . . . . . . . . . . . . . . . . . P. 12 791 74,30 2 536 1 528 1 008 7,9 . 231
6 23801111109061; . . . . . . . . . . . . . P. — 47,49 — — — —— -—
7 $111118“ . . . . . . . . . . . . . . . . . . P. 8 359 75,07 2 604 1 611 993 11,8 ——
1 St. 3 002 18,62 602 541 61 2,0 135
8 91318311111 . . . . . . . . . . . . . . . .. P. 8 020 71,64 3 287 1 954 1 333 16,6 _
9 (iaiieI . . . . . . . . . . . . . . . . . . . P. 7 431 40,65 1 222 812 410 5,5 ——
10 6bm‘lottenbnrg . . . . . . . . . . .. P. @1868 28881111 —- —— — — —— ——
11 sbemnig ............. .. 'P. 9 574 71,25 2 005 1 181 824 8,6 -
12 ($5111 . . . . . . . . . . . . . . . . . . . ‘. St. 18 105 166,77 7 488 5 229 . 2 259 12,4 331
13 ﬁttielb 4=) . . . . . . . . . . . . . . . . . St. 4 721 44,02 1 081 694 387 8,2 ——
14 Qangig . . . . . . . . . . . . . . . . . . . P. 8 974 58,03 1 412 816 596 6,6 —
15 9081111111111 . . . . . . . . . . . . . . . St. 6 193 52,16 1 645 1 190 455 7,3 —
16 @1‘4330011 . . . . . . . . . . . . . . . . . St. 49 453 234,43 9 718 6 965 2 753 5,6 —
17 2311131111111 . . . . . . . . . . . . . . . . St. 10 0042) 103,58 3 559 2 385 1 174 11,7 —
18 Qiiﬁelbm'i ............. . . P. 5 758 41,51 1 354 828 525 9,1 -
19 @Ibﬂ‘fﬂﬁ .............. .. St 1 598 15,80 320 315 4 0,25 75
20 @rim't . . . . . . . . . . . . . . . . . .. P. 2 0352) 21,45 511 318 193 9,4 -—
21 (951811 1:. 618818 . . . . . . . . . .. St. 15 780 98,21 2 609 1 533 1 076 6,7 -
22 maafinrt a. 912. ........ . . St. 15 550 131,43 7 107 4 559 2 538 15,2 -
23 ($8iicnfirdwn . . . . . . . . . . . .. P. @1868 813081511111 — —- — —~ — —
, St.u.P. 3 0772 31,91 - - — - -
24 890118 a. 6. . . . . . . . . . . . . .. R 2 450 ) 14,01 483 304 179 7,3 _
25 5351115151; .............. . f P. 54 500 315,12 15 970 10 035 5 935 10,9 -
26 QMIIIDDCI‘ 11. 11mg. . . . . . . . . P. 50 413 291,87 4 964 2 978 1 986 3,9 —
27 9514811158 ............. . . St. 5 282 31,13 1 118 708 410 5,5 22
28 @181 . . . . . . . . . . . . . . . . . . . . . P. 4 728 34,10 912 579 333 7,0 ——
29 @Bnigéberg . . . . . . . . . . . . . . P“ 3 561 17'65 269 272 3'0 _ _
St. 6 127 64,45 1 440 1 159 281 4,5 34
30 881mg ................ . . 2.P. 37 003 221,70 8 459 5 048 3 411 9,2 _
31 93211119801113} . . . . . . . . . . . . . . P. 10 8052) 81,35 2 524 1 451 1 073 9,9 —-
32 912111115 . . . . . . . . . . . . . . . . . . . St. 3 791 39,84 829 527 302 7,9 —
33 91311111108111! . . . . . . . . . . . . . . . St. 8 810 61,06 2 162 1 528 634 7,2 —
34 9121111111811 . . . . . . . . . . . . . . . . . St. 13 382 147,52 3 754 2 555 1 199 8,9 ——
35 95111111811] . . . . . . . . . . . . . . . . . St. 14 8002) 81,01 2 506 1 310 1 196 8,1 —
36 2311111811 . . . . . . . . . . . . . . . . . . P. 1 563 19,29 476 284 192 12,3 —
37 Qiuicn . . . . . . . . . . . . . . . . . . . P. 3 680 29,44 981 608 373 10,1 —-
38 ‘Jtigbnri . . . . . . . . . . . . .. P. @1868 23811111 — — — —
39 @dﬁilwbﬁ‘g . . . . . . . . . . . . . .. P. @1868 2381181 — —— —— ——
40 ©tcttin . . . . . . . . . . . . . . . . . .. P. 8 563 61,37 1 535 915 620 7,2 —
41 ©tmfgburg . . . . . . . . . . . . . .. P. 10 524 83,97 2 152 1 518 534 5,9 —
42 ©tuttgart . . . . . . . . . . . . . . .. P. 9 9782) 60,81 2 606 1 764 842 8,4 205)
43 8882955581: ............. .. P. 9 400 68,94 1 558 1 055 502 5,4 _
' 1) (5511010 nnnen ber ,,©tatiftif ber 91811160611811 1111 @81111 86811 938181)”, 88111 cbrift fiir. 81811160611811 - 1909, @rgﬁrlgullggbeft.
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_“) ‘39. '1. 011?» 2388011111115 081: 23881011111111g131011811 51.1111 ($58180011511111fa11g (5111811138 081‘ @1115001111153811 11110 SEW-(31101111111811). “8818801181 11110 018 11111011811 8111‘ 100 (531m 11110 91111151101111111811.


6510110 081 (81111115811 2111f 0811 Ropf 081 238= 939111111111111111111118 2118181118 21181118111011 53%;?
$3108. ,. 111 51111111011811 11111111 11'011811111g ttiﬁt 8111 (55111111111811 Silwfllfi in % fnnbé '111 ' 1m 81819919119 3-
£111. Gtabte 81111 051108 089 3116185 61111111811111; 11011 9111111 111 51111111 ' 1887011111. 1“ 10009115- “559,191,; (ting/“0’ 150%
1900 1903 1905 1908 1900 1908 1905 1907 1900 1908 1905 1907 1900 1903 1905 I 1907 l 07/81e15n“ ‘98,?,%%;“'§‘9§Z,%58m $855186“ 19331.18 1 8111111811 ................ .. . 12,28 15,59 15,52 . . 1244 1039 . 3%-4 3%-3% 3%—-4 . 14,2 51,9 0,09 0,32 55
2 8111mm ................. .. 5,84 7,40 9,54 8,60 . . . . 1180 1455 1815 1599 3% 3% 3% 3% 453,0 25,0 15,2 0,27 0,17 144
3 25111-111811 ................ .. 17,20 24,10 25,55 28,53 122 154 171 179 502 5124 522 529 3% 3% 3% 3% 1928,3 221,1 230,0 0,83 0,82 45
4 8811111 ...... .1' ......... .. 253,00 295,34 322,85 314,35 135 153 151 150 353' 385 397 392 3 3 3 3 . 23895 25142 0,74 0,81 45
5 93011111111 ..... ......... .. 20,27 23,17 25,40 28,95 312 324 223 228 1157 1204 1200 1114 3% 38/5 3% 3% 2281,5 257,5 205,4 0,98 0,73 57
6 818911111 ............... .. 43,99 59,68 59,53 74,34 105 135 149 153 309 242 354 342 3 3 3 3 5519,1 573,7 714,1 0,54 0,95 34
7 6111181 .................. .. 10,43 15,86 19,57 22,37 103 139 155 150 .254 354 382 394 3 3% 3% 3% 355,2 97,2 112,4 0,49 0,51 42
8 08111011811015; .......... .. 15,22 25,54 34,75 41,05 '83 125 151 150 390 459 501 497 3 3 3 3 505,0 180,3 315,2 0,52 0,78 48
9 01181111111; ............... .. 30,74 35,71 “38,54 44,00 151 . 155 150 157 268 295 309 330 3 - 3 3 3 3944,8 321,5 351,8 083 0,80 30
10 (111111 ............. .. 53,20 57,57 77,23 91,27 140 159 183 202 459 491 478 499 2-3% 2—3% 3% 3-3% 5198,3 573,1 573,7 0,74 0,55 35
11 0181810 ............. 11,72 18,66 20,32 27,03 108 170 184 231 455 534 559 740 3%—4 3%—4 3%-4 3%-4 1873,8 130,5 149,0 0,54 055 50
12 3001111111111 .............. .. 34,53 42,11 45,40 52,53 247 274 271 273 832 920 935 938 2%—3% 2%—3% 2%—3% 2%-3% 3937,5 305,2 311,7 0,50 0,52 50
13 501-1911111 ............... .. 78,35 108,33 123,57 131,32 199 220 243 248 300 343 375 381 3 3 3 3 6891,6 1015,2 1135,4 0,82 0,87 40
1‘1 181111810011 ............. .. 35,47 45,05 51,45 51,35 159 195 233 232 532 571 548 707 3—4 2%-3% 2%-4 3%—3% 2173,2 200,2 221,5 0,39 0,38 34
15 1811191111111 .............. .. 8,04 11,58 14,31 37,98 87 119 1932) 183 578 554 521 735 3-4 2_4 2—4 2_4 2098,4 244,0 289,3 0,55 0,77 130
16 0111817811) .............. .. 21,52 32,25 35,18 35,95 138 200 215 222 534 812 805 730 3% 3% 3% 3% 22571 305,0 257,5 0,87 0,70 58
17 (8111111 ................. .. 16,84 21,92 24,59 25,70 198 239 249 249 421 485 512 455 3 3 3 3 14125 132,0 45,0 0,54 0,17 30
18 611811 .................. .. 25,55 52,52 58,85 51,02 '215 287 255 257 729 1087 1115 1095 3%-4 3—3% 3-3% 3%-4 5838,8 250,4 . 0,44 . 95
19 81111117111111.1111. ........ .. 5,52 12,39 15,54 18,47 .. . . 544 598 719 554 3% 2—3 2—3 2%—3% 204,5 94,0 85,8 0,50 0,57 33
20 08118111111181 ........... .. . 14,84 15,94 18,13 . 243 258 248 . 1481 1911 . . 3-4 3—4 3%-3% 2812,9 268,5 215,9 0,53 0,51 .
21 511118 11.6 ............ .. 31,38 39,55 44,85 45,83 204 239 254 255 499 545 554 549 3 3 3 3 2250,5 405,8 432,0 0,90 0,97 32
22 5111111111181 .............. .. 20,54 35,32 41,40 45,75 . . 455 _ 579 599 208 3% 3 3 3—3% 375,9 169,8 . 0,41 . 78
23 5111113111118 ............. .. 15,55 20,50 22,55 23,45 173 200 . . 712 775 753 704 3%—3% 3—3% 3—3% 3—3% 1182,2 150,8 155,3 0,57 0,57 83
24 51111119808111 ............ .. 39,99 49,52 54,23 52,57 213 255 273 227 419 471 513 489 2%—3% 2%—3% 2%-3% 2%—3% 30144 545,3 525,2 1,01 1,17 38
25 5381115111 ................ .. 74,57 88,40 92,33 91,54 155 182 185 177 321 344 345 334 3 3 3 3 4195,3 549,7 . 0,73 . 47
26 91111101111111; ............ .. 71,57 83,92 91,92 91,85 . . . . 485 534 558 539 3 3 3 3 5975,5 833,0 817,7 0,90 0,88 35
27 91111111,; ................. .. 32,27 35,88 40,39 40,54 385 418 447 405 1078 1141 1182 1153 3% 3% 3% 3% 4397,4- 104,9 120,4 0,25 0,29 84
28 9111111111181111 ............. .. 19,43 22,89 25,52 27,92 142 155 141 151 594 703 715 686 3—3% 2%—3%2%-3% 3—3% 1520,2 319,0 123,8 1,24 0,45 52
29 9111111111811 ............... .. 35,99 45,35 53,94 57,35 73 90 101 104 433 472 490 481 3 3 3 3 2915,3 400,9 493,0 0,74 0,85 41
30 9111118115.... ........... .. 15,53 21,72 25,89 28,83 52 80 93 94 320 355 409 401 3 3 3 3 1801,0 142,3 210,5 0,53 0,73 32
31 51111111811 ................ .. 22,54 32,42 35,04 39,25 315 350 347 354 413 494 842 489 3% 3 3 3 1545,9 342,3 295,5 0,95 0,77 33
32 11501811 ................. .. 9,78 12,81 15,57 15,90 84 103 115 119 318 ‘374 411 411 2%—3 2%—3 2%-3%2%--3% 408,6 19,2 55,8 0,12 0,39 41
33 2111113111111 ................ .. 4,57 9,75 11,33 38 55 51 338 475 385 . 3 3 3-3% 121,7 32,4 72,8 0,33 0,59 37
34 (51115111118111 ............. .. . 17,39 30,22 39,41 . 148 221 253 . 554 514 517 . 3 3 3 534,3 138,5 . 0,45 . 75
35 61811111 ................. .. 45,54 55,92 54,94 70,01 215 257 290 301 585 757 782 770 3 3% 3% 3% 957,2 205,8 371,4 0,32 0,54 71
36 8111381111; ............. .. 19,88 21,09 24,23 25,38 133 133 147 153 283 259 279 275 3 3 3 3 1492,2 75,5 92,9 0,32 0,35 39
37 5111111111 .............. .. 12,78 21,00 28,38 30,57 73 109 115 118 334 435 455 434 3% 3% 3% 3%—3% 1530,5 143,4 128,7 0,51 0,42 35
1) Qlufgefteﬂt 111111) 0811 @1011111110811 Sabrbiicbern ibeutfcﬁer 610018. :~. ;--
2) 1900 11110 1903 111 11111 ‘Quiébutg 650101, 11011 011 1111 €®11121111111341.1181081180=5R111312011=28881 Beriiﬁicfﬁigt. "8' "Ii. Y":
CSabelle VI.

GEIeftrQiﬁﬁtverfe 1906—07 begin. 1907.


cJDIBiioate. 6t6btifcbe.
4855;111:9513“: 4494946“
9211155“ (159999: tang @egddet Qbbne mmibat abgege= (Q321riebéfuften, Hnterbaltung.
Q“ Bene (Sinergie in limb @Dnfﬁ'geg) Qrt Berle @nergie in what“ 53M)“ ‘1' @Dnfﬂgeg)
r nu b. - no nu bar
911010 attftunben in Smurf ~ pggggﬁi Rﬂomattftunben m Emmf gfigsgeafiiilftﬁ
in 23f. in EN.
95 eridﬂeiiid) er %nbuittie=
begirf ............... .. 45 524 887 1 250 551 2,75
(iiien/éiibr. . . . . . . . . . . . . . . .. 38 109 570 1 290 154 3,40
(iiien (9:111:11) ......... . . . 21 124 843 867 670 - 4,11 ranfiurt a. 911. ........ .. 19 513 791 1 203 195 6,16
©cﬁﬁnebcrg ............. .. 16 941 499 1213 578 7,16 imiindwn 1). . . .' .......... .. 18 894 110 1 524 498 8,33
(55m . . . . . . . . . . . . . . . . . . .. 18 582 989 1 054 666 5,68
@traﬁburg ............. .. 10 591 900 733 754 6,92 11 509 353 895 731 7,78
9 427 979 634 871 6,74
9 266 707 444 669 4,80
8596 398 591 372 6,88
8 521 737 581 756 6,83
Mimi/$5111 ............ .. 6 263 571 315 368 5,03 6 849 593 395 730 5,78
6 381 928 813 174 12,74
5 086645 458 277 9,43
5 839 331 448 061 9,25
4 490 812 579 266 12,90
. 4 110 975 552 726 13,45
étegtig ........... ... . .. 2 722 310 255 354 9,36 3 198 020 213 185 6,66
@tettiu ................. .. 2 676 519 387 160 14,67 3 142 016 294 913 9,39
2 493 729 305 000 12,23
2 397 524 271 592 11,33
imanéiclb ....... . . . . . . . .. 1 572 730 110 895 7,35 1 574 430 206 694 13,13
ﬂﬁieélnd) ..... .. . . . . . . . . .. 1 179 583 174 251 14,80 1 536 324 106 807 6,95
@otba .......... . . . .... .. 1 178 852 141 755 12,02 1 498 404 78 525 5,25
iBraunidmeig ....... ..1 .. 1 162 335 129 545 11,13 1 430 162 352 511 24,64
26iit5balrg .. . . . ........ .. 1 053 109 122 985 11,68 1 394 424 234 347 16,81
1 385 550 .138 550 10,00
1 254 194 290 940 23,19
1 254 194 134 349 10,81
1 196 520 64 964 5,43
1 135 641 168 019 14,80
1 061 927 201 009 18,93
i‘slenéhutg ............ . . 992 292 158 603 15,98 960 993 140 970 14,68
6km ............. .. . . . . . 887 286 73 486 8,28 950 389 74 615 7,63
wtiimauien/ih.. . . . . . . . . . .. 885 227 87 396 9,90 900 900 129 320 14,35.
@eilbmnn 1) .. .......... .. 821 075 100 550 I 12,24 879 415 71 012 8,07
ﬁiegnit; ............... .. 814 555 83 067 10,20 871 248 163 278 18,74
391m .......... . .. .... .. 782 784 85 831 10,96 739 633 91 366 12,33
%cimar ............... .. 779 600 130 627 16,76 730 032 76 684 10,54.
@nmburg b. D. Q ........ .. 770 879 97 880 12,69 713 853 107 008 14,99
$110111 ........... . . . . . . . 626 007 87 137 13,92 609 252 64 012 10,39
(Eiienad) ........... . . . . . . 533 200 81 394 15,26 598 265 35 492 5,93
571 124 58 790 10,20
505 404 81 966 16,19
ﬁnburg ................ . . 358 519 37 213 10,31 348 136 61 779 17,65
@benfoben ............. .. 282 909 31 718 13,67 334 793 60 093 17,92
ﬁroﬁbera. ilﬁerf 991113111618. 245 272 29 247 11,95 329 986 104 512 31,75
Gimiinb ................. .. 212 702 27 670 13,00 329 636 85 102 25,81
ﬂinbcnéburg . . . . . . . . . . . . , 104 848 17 459 16,60 300 615 53 092 17,67
293 116 23 726 8,09
278 140 58 189 20,91
239 512 59 919 25,01
206 242 17 647 8,56
{.3 199 548 22 100 11,00
173 136 29 888 17,30
168 435 22 860 13,57
_ 151 973 19 018 12,51
110 045 17 410 15,82
1) Wit'benllgung non QBaﬁerf'rdften. V
2) CSrIﬁiIt 311m EeiI ben @1rom non bem llrfttalfperren=®Ieftrigitdtéwerf, @91nxbacb/@ifel.


MD 1‘; " 611711 1* '
. 1', - 4 - .. r
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3 ——--" * 4 ‘1


'21 . ,
T he:
Chicago Traction
QU€StiOIl


By
Henry Demarest Lloyd


GEORGE WAITE PICKETT,
Distributing Agent,
324 Dearborn St., Chicago, Ill.
Single copies can be had of all News Dealers


HENRY DEMAREST LLOYD
“ 1 The 6 J


» Chicago Traction
Question
By:
1 '1 ’9 Henry Démarest Ployd


Preface
Theads of life from many ancestors converge and unite in one
man. Threads descending from such sturdy ﬁghters for prin-
ciple as the regicide, Goff, as Hampden and Pym, as the
Huguenot des Mairets united to produce Henry Demarest Lloyd.
As a young man just from college, he began his ﬁght for freedom
and justice by helping to destroy the Tweed Ring in New York,
and 'by advocating as secretary of the American Free Trade
League the removal of the tariff on necessities.
After that wherever the growing power of special privilege or
criminal capital seemed most to threaten, there he was battling
manfully for the common weal. He was often attacked as the foe
of property and wealth and often rated mainly as a friend of labor.
He stood on no such narrow ground. His ﬁght was for in—
dividual rights, for the property of the ignorant well—to~do as well
as the ignorant poor, for all instead of few.
During this period of protest he produced the “Strike of the
Millionaires Against the Miners,” followed by a series of articles
and addresses culminating in “\Nealth versus Commonwealth.”
That book is his greatest exposition of the oppression against
which he fought so long.
Then the bend of his mind seemed to change; “I am tired of
shoveling filth,” he said to a friend. Turning to observe and set
down what had been done for humanity, he traveled in England
and Europe to study co-operation. The results are in “Labor C0-
partnership.” Newest England and “The Country \IVithout
Strikes” are studies at ﬁrst hand of New Zealand, a government
economically as well as politically democratic. These works
merely recorded what he saw, leaving the reader to draw con—
clusions. He had begun to work on notes on governmental
democratic methods in Switzerland, when he was interrupted by
a call from leading citizens of Chicago to take up the present
traction question.
Henry Lloyd spent his time this summer all day and all days
Preface
i?
delving in dry statistics that he might deliver a message to
Chicago, the pamphlet now before you. From committee and
court reports he compiled the history of the traction companies.
From other cities he instanced successful solutions of the traction
question. These solutions show what Chicago can do, but to aid
the reader he stated his own conclusions and pointed the way out. ,
After this pamphlet was completed it seemed to be desirable
that the matter be put in a nut-shell. The traction emergency
call immediately following this preface is the result. The main
conclusions reached in the pamphlet is that municipal ownership
is necessary and possible, and the call subjoined points the way
which, followed step by step, necessarily results in the end
desired.
After completing this, his last work, he, though a scholar,
threw himself into active effort to forward the right as he saw it.
Nervously as well as physically depressed by his hard work in the
summer, he caught a severe cold. Because it seemed necessary
he rose from his bed to make two speeches, and in less than a
week lay dead. “It was the last two speeches did it,” he said:
“but I’d do it again.” He spent his life in work for the common-
weal, like Lincoln and like Christ he died to make men free.
WILLIAM Baoss LLOYD.
A Traction Emergency Call
Adopted by the Chicago Federation of Labor,
September 20, 1903
Adopted by the Municipal Ownership Convention,
September 19, 1903
Whereas, The Council reassembles September 28, the truce
between the City and the Traction Company expires November
30, and the Traction future of Chicago with all that implies for
itself and the country at large will be settled in those eight weeks;
and
Whereas, Ordinances for that settlement have been drafted
by the Council Committee on Transportation and submitted to the
Street Car Companies but not made known to the public; and
Whereas, It is believed that the Council Committee proposes
to give to the Companies a straight grant running 20 years with
no reservation of the right of Municipal Ownership at any inter-
mediate period;
Whereas, There is no sign that the Mueller Enabling Act for
Municipal Ownership is to be submitted to the people for adop-
tion until after this grant has been made; this means practically
the abandonment of the law and of the movement for Municipal
Ownership for almost another generation.
Resolved, That the Chicago Municipal Ownership Delegate
Convention representing local Unions afﬁliated Fwith the Chicago
Federation of Labor; The Chicago Teachers’ Federation; The
Chicago Municipal Ownership League; The Turner Societies;
The Single Tax Societies, and other civic organizations, proceed
in a body Monday evening, September 28, to call on the Mayor
and Council at their regular meeting to present the following
demands:
\
A Traction Emergency Call
1. That the Ordinances which have been prepared and made
known to the Street Railroad Companies for their approval be
made known also to the public, the principal party in interest, so
that it may have time to study them and may be qualiﬁed to de-
cide intelligently upon approval or rejection when this is submitted
to the vote of the people, as the city administration is' pledged
to do.
2. That the Mueller Enabling Law for Municipal Ownership
of the street railroads be submitted to the people for adoption, and
that when adopted the powers it gives be at once put into opera-
tion, particularly that of eminent domain. We call upon the city
authorities to proceed as soon as this power is given by the adop-
tion of the Mueller law to acquire possession of the entire street
railroad system of Chicago by the process of condemnation—-
that ancient, constitutional, familiar and irresistible instrument
of the people’s sovereignty.
3. That pending this adoption the Council refrain from mak-
ing any new grants to the Companies, which with their “ accept-
lnce ” would bind the city as “ sacred contracts ” and create new
lots of “vested rights” to plague our future.
4. That pending the consummation of the plan for Municipal
Ownership the Council in any future dealings with these or any
other companies shall issue LICENSES ONLY revocable at the pleas-
ure of the Council, giving the Companies the terminable tenure
under which the Street Car Service of Boston and Washington
is successfully maintained.
5. That the Council leave for adjudication the question what
grants have or have not expired, which has no relation to the prac-
tical matters of transportation, and betake itself at once to the
work demanded by public necessity and public opinion—the im-
mediate improvement of the Traction Service.
6. That for this purpose the Council permanently employ a
Traction expert to make plans ready for immediate improvement
of service in cars, routes, motive power, transfers, fares, etc.,
such plan to be in harmony with and a part of the permanent 7
plan for Chicago Traction, already prepared under the orders of
the City Council by Mr. Bion 1. Arnold and to be consistent with
that ownership by the city for which the people have voted by
142,826 to 27,998.
A Traction Emergency Call
7. That the Council under the ample police powers it possesses
to protect public interests and to “ regulate the use of streets ” or-
der the Companies to provide without delay all improvements of
service required by the needs of the Public, and that its Traction
expert be employed to superintend the proper execution of its
orders.
8. That it also be made a part of the duties of this Traction ex-
pert to see that the Companies give the Public now the full beneﬁt
of the equipment they already possess and that they keep their
cars in such constant use as the public need requires, during other
than the rush hours and on Sundays and at night, instead of run-
ning their cars, as is now their custom, to the barns to save the
hire of conductors and motormen.
9. That as part of this immediate improvement special coun-
sel be employed to ascertain violations of existing laws and disre-
gard of existing obligations, and to enforce the one and punish
the other by such proceedings in the civil and criminal courts as
may be called for.
10. That the Council order the law department to push to a
ﬁnal adjudication all disputed questions between the City and
the Companies, including the validity of the 99-years’ act by
which a corrupt Legislature attempted unconstitutionally to de—
prive Chicago of its fundamental rights of Home Rule for a cen--
tury and to impair the obligations of contracts already made by
the city with the Companies
4"
Contents
PART I. THE SITUATION.
P E-
CHAPTER 1.— Financial.--— We Have Already Paid for an AG
Ideal System, but Haven’t Got It . . . . . . . . . . . . . . . . . . 3—10
CHAPTER 2.— Moral Balance Sheet . . . . . . . . . . . . . . . . . . . 10—29
CHAPTER 3.-- Mechanical.-- The Service W e Get the
Worst in the World . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-34
PART II. THE WAY OUT.
CHAPTER 4.-— Chicago’s Plan.-- Our Expert’s Ideal Sys-
tem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35—41
CHAPTER 5.-- Private Enterprise Rejected. .' . . . . . . . . . . .. 41—44
CHAPTER 6.— Municipal Ownership the Only Way . . . . . . 44-49
CHAPTER 7.—-VVhat Hinders?--The Lion in the Path. . . 49—54
CHAPTER 8.— The Lion’s Compromise.—— Surrender Of-
fered for Renewal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54—63
CHAPTER 9.-— What to do. First.-- Immediate Relief
without Renewal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 64—74
CHAPTER Io.--What to do. Second.-- Clear the Way for
Municipal Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . 75—81
CHAPTER II.—- Chicago the Battleﬁeld of Modern Democ-
racy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82—87
CHAPTER 12.-— World Struggle of the Trusts Against the
Towns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87.92
A Traction Emergency Call . . . . . . . .i . . . . . . . . . . . . . . . . .. 93—95
\
EXPLANATION OF ABBREVIATIONS
Z.——American Municipal Progress, by Charles Zueblin.
Chaplin,-—The Coal Mines“ and the Public, pamphlet by H. W.
Chaplin.
G.~— Circuit Court of the United States for the Northern District
of Illinois. Case of The Guaranty Trust Co. of New York vs.
Chicago Railway Companies. Further Directions of judge
g Grosscup to the Recievers. july 10, 1903.
1 W. W. G. -—Circui't Court of the United States for the Northern
District of Ilinois. Case of The Guaranty Trust Co. of New
York vs. North and West Chicago Street Railway Companies.
Argument of W. W. Gurley and Joseph S. Auerbach before
judge Grosscup. June 18, 1903.
EIy.—- Evolution of Industrial Industry, by Prof. Richard T. Ely.
M. A. —— Municipal Affairs. Volume 6. No. 4.
B. A. — Report of Bionj. Arnold on the Chicago Transportation
Problem. November, 1902.
C, F,—-Report of Civic Federation on Street Railways of Chi—
cago, 1901.
S. R. C.-— Report of the Street Railway Commission to the City
Council of Chicago, December, 1900.
“ Harlan” —-—Report of Special Committee of the City Council
of Chicago on Street Railway Franchises, March 28, 1898.
100.—- The Street Railway Bills. Answer of the Chicago Com-
mittee of One Hundred to the Members of the General Assem-
bly of the State of Illinois. Chicago, 1897.
Sikes.“ The Street Railway Situation in Chicago, by George C.
Sikes, read before the National Municipal League at Boston,
May 8, 1902. ‘ ’
Schilling,-— The Street Railways of Chicago and other Cities,
from Annual Report of Illinois Bureau of Labor Statistics for
1896. George A. Schilling, Secretary. Published by the Cam-
paign Committee of the Committee of One Hundred against the
Humphrey Bills.
“12:42.34
PART I
The Situation
CHAPTER I
Financial
The street carxsystem of Chicago began in 1859 with a
mile of rails spiked to the planks of the corduroy road on State
street between Randolph and Twelfth streets, with twenty-ﬁve
.horses, four cars, and $100,000 of capital stock. ONE CITY 0x13
FARE was provided for by the_ city authorities in the very ﬁrst
franchise. The name of the ﬁrst company was the Chicago City
Railway Company, its grant ran from Thirty-ﬁrst street and
Cottage Grove avenue to State, thence to Madison street and
Western Avenue, and it was stipulated that “the rate of fare
for any distance shall not exceed ﬁve cents.” To get the greater
proﬁts of Three Cities and Six Fares, separate companies'were
.organized for the North and West Divisions with $100,000 and
$150,000 capital, and August I, 1863 the Chicago City Rail-
way Company, sold to the Chicago W'est Division Street Rail-
way Company all its West side rights and property. Since
that time double fares have been charged for the original route,
and no citizen and no city ofﬁcial has resisted the violation of
the law.
The one mile track in 1859 has become 518.11 miles in 1901
(B. A. 59). The capital of $350,000 of the ﬁrst three compan-
ies has grown, until july I, 190I it was $II7,SI4.289.73 in
face value, worth at that time on the stock exchange $120,235,-
530.73 (C. F. 14), worth less now, but certain to be worth much
more if any renewal is given to the companies. The value of
d
4 The Sitaation
the material plant, covered by these securities, was $24,600,000
at the same date, july I, 1901, according to the experts of
the Civic Federation (C. F. 23) and $26,684,907 in 1902 accord-
ing to the Common Council’s expert, Mr. Bion Arnold.
If we had a Legislature and a Common Council to give us
such a law as that under which all street car lines have been
built in England since 1870, the people of Chicago could now
become the owners of all these lines upon the payment of
this $24,600,000, or $26,684,907, the value of the plant, material
and works, exclusive of any allowance for past or future proﬁts,
or any compensation for compulsory sale. Those are the terms
on which every English municipality may take possession of
its trams after twenty-one years of operation (M. A. 587). The
difference between the value of the plant, and the value of
the securities on which the people of Chicago with their nickels
must pay interest and dividends, is the cost of fatal ofﬁcial
neglect to safeguard the public. This difference is the “ water,”
or “overcapitalization.” It is variously calculated at amounts
ranging from $62,754,210 by the “Harlan ” (p.68) Committee
of the Common Council in 1898, to $66,412,193 in the report
made to the Common Council in 1902 by its expert Mr. Bion
Arnold (p. 105), and at $72,000,000 to $90,000,000 by the expert
acountant of the Civic Federation (p. 48) in I901. Ordinary
business men and workingmen who do not get the use of public
real estate and public functions for nothing—or for anything——
and who have no monoply, and who have to compete, can charge
only market prices for their services. The few who have “ cap—
ital” have to keep it written down closely to actual values.
Under such competition as workingmen and business men have
to meet, or under such regulation as traction companies have
to submit to where there is real regulation keeping the capital
invested down to actual present values, and keeping equipments
up to the highest standards of the art, none of this “water”
would exist.
But these men are given by law the exceptional privilege of
charging a ﬁxed price, independent of competition, and inde-
pendent of reductions in the cost of production, and of using
public property for their own proﬁt without paying rent or other
compensation for it. This gives them proﬁts so enormous that
t
The Situation 5
some method of bookkeeping has to be adopted to conceal them.
This is accomplished by keeping alive on the books as active
capital, demanding dividends and interest on every dollar ever
spent. The cost of every horseshoe, strap-rail, worn-out horse,
old car (CF. 55), everything that has gone to the woodpile, j unk-
heap, or bone-yard from the street cars of Chicago is still alive
on the books of the companies. It is the “capital” represented
by stocks and bonds,-- the “investment ” upon which the
“widows and orphans ” of the stock market demand “a fair
return” at the expense of all the other widows and orphans.
Ordinary business has to write all such items off its books. The
workingman can not demand wages that will represent “a fair
return” on all his old shoes and tools and the capital cost of
a man. The farmer can not make the price of his grain pay
him 6 per cent. on all the money sunk since the forest was
cleared. But the horse-car farmer of the streets can and does
do this. When the cable displaced the horse in 1881 on the
South side, the cost of running a car a mile fell from twenty-ﬁve
and six-tenths cents to eleven and two-tenths cents, or more than
half (C. F. 51). The displacement of horses by cables and elec_
tricity caused a decline between 1882 and 1896, in the aver~
age cost of carrying each passenger according to the report
of the Illinois Bureau of Labor Statistics, of more than a cent a
passenger,-- from 3.75 to 2.66 cents. This alone will pay 6
per cent. interest on $79,683 a mile, or twice the extra cost of
cable and electric lines over horse car lines (Schilling, 65—66).
But the fares did not fall. The only difference to the public was
that in addition to continuing as before to pay interest and divi-
dends on the horses and the horse cars that were discarded it had
to pay interest and dividends also on the new equipment that took
their place. Mr. Arnold ﬁgures out that the cost of a new, reorgan»
ized and uniﬁed street railway system for the whole city, would be
$70,000,000 for 745 miles of single track, “ with everything ﬁrst
class throughout,” including the underground trolley (B. A. p. 19)
in the business center, but exclusive of subways. This closely ap-
proaches {he amount of overcapitalization (ranging from $62,-
000,000 to 75,000,000). Had the city government protected the
city. and had the laws and ordinances been drawn by servants
of the public instead of the attorneys of the corporations we
6 The Situation
would today be in possession of Mr. Arnold’s “ideal” system
without the expenditure of an additional cent. We have already
spent the money, but it has gone into the pockets and strong
boxes of the ﬁnanciers of these lines, with no return to the people
whatever. The cost of a complete system of fsgbways, low
and high level, abolishing the tunnels, taking all the street
railways off the surface, and permitting rapid transit like that
of New York, Paris and London, through the length and
breadth of Chicago, would be about $20,000,000 more.
This which would make Chicago the best tractioned instead
of the worst tractioned of the great cities, would bring the total
cost up to $90,000,000. And the accountants of the Civic Fed-
eration investigation, Dr. Milo Roy Maltbie and Mr. Edmund
F. Bard, tell us (p. 48) that if to the “ water” already noted
we were to add other items in the capitalization “which pro-
duce practically no income and are of little value ” the amount
of overcapitalization would be $90,000,000, precisely what the
completed ideal system of transportation, on the surface and
below would cost. '
The capital needed for it, $90,000,000 the people have created
and much more. It is there in that “overcapitalization.” But
owing solely to mismanagement it is not in the possession of
the people. It might have been earning money for the people,
as it is, they must earn money for it. It might have been an
asset, it is a liability. This ideal system might have been ours
without spending one cent more than we have spent. Shall we
repeat this blunder and manifold it, by granting renewals to
those who have so abused our grants in the past, is now the ques-
tion before the people of Chicago.
The long and short of the matter is that the people of Chi-
cago have created traction securities with a face value of $II7,-
000,000 and have got nothing to show for it but a second-hand
traction system, admitted by all to be the poorest “enjoyed”
by any of the great cities of the world. These securities have
sold as high as $120,000,000, and will sell still higher if renewal
permits them to draw tribute from the growing wealth and
population of the future. They have been created, every cent,
by the people of Chicago. There has not been one mill of gra-
tuity, or philanthropy or risk in the money put in by capital.
The Situation 7
The few thousands they advanced at ﬁrst have long been repaid,
and the cash which they have put into bonds and stocks since
have been reinvested proﬁts. All the stock of the South side
road, which has no bonds, and some of the stock and bonds of
the other systems have been issued for cash, but the cash had
been already got from the public. All that we have to show
for this $117,000,000 is $26,640,000 worth of material. The
$117,000,000 would have given us an ideal system, subways and
all with money to spare. Had any municipal statesman proposed
in 1858, or 1865, or 1883,-- the critical dates of Chicago trac-
tion,-- that the people should raise\a capital of $117,000,000 to
make Chicago the best tractioned city in the world, we can
imagine the derision he would have won. The people of Chicago
have raised that capital, but they have nothing to show for it.
Their share of the enterprise is the liabilities, and the suffering,
and inconvenience, and crime, public and private, which are
a part of the traction history of Chicago. Now, it is proposed
by another renewal with municipal ownership, “bye and bye,"
to begin the creation, at the cost to the people of another moun-
tain of securities to be piled on this mountain, with nothing to
show for it “bye and bye ” but another mountain of junk.
Enormous-proﬁts have been made by the traction capitalists.
The North Chicago City Railway Company has paid 30 per
cent. a year from 1886 to 1901; the Noﬂh Chicago Street Rails
road Company nearly 15 per cent. a year for 14 years. In the
19 years between 1882 and 1901, the Chicago City Railway
Company paid upon an average over 42 per cent. annual divi-
dends (C. F. 48) on the value of the plant (C. F. 27). In one
year, 1893, there were dividends by this company, in cash and
in stock'bonuses as good as cash, of $13,435,000 on $7,000,000
of stock (C. F. 77). In the 16 years from Jan. I, 1882 to Ian.
1, 1898 the total dividends paid by the company, including the
market value of new stock above the par value paid for it by
stockholders, aggregated “ $37,602,187. 50, or an average of 44.63
per cent. a year ” (C. L. 77). The amount received since then
in cash, and stock bonuses bring their winnings up to $48,531,-
000,- and they still have the 18,000,000 stock,-— and they have
us. They are now dividing 9 per cent., while earning 1 5 per cent.
The West side road was incorporated in 1861 with a capital of
‘\.’~A
'-¢
,. -
5 The Situation
$150,000. In 1887 Mr. Yerkes bought the control at a valua~
tion of $10,000,000 for the whole, paying $1,615 for each $100,
and agreeing to pay 35 per cent. a year on all the stock (Harlan
47—48). In the eleven and a half years between May 24, 1886,
and Dec. 31, 1897 (C. F. 32) the stockholders of the two North
Chicago Companies made proﬁts of $10,134,923.50, which was
not bad for plants worth less than $4,000,000 (C. F. 32)—--prop-
erty which would not sell for enough to pay the bonds. The
“ Harlan ” Report of the Common Council for 1898 shows that
the extra proﬁts of the stockholders of the three systems -—Three
Cities and Six Fares—ranged from $56,148,411 to $62,312,595.
These were extra proﬁts. They consist of the appreciation of
the stock in the market at that time above the amount invested,
and of the dividends in excess of 6 per cent. which is 'taken as
the standard of a fair return. But only the dividends between
1890 and 1897 are included. For lack of access to the books,
which was refused the Common Council, all the dividends paid
between 1859 and 1890 by all the companies were left out of
the account. The books have been opened since to the account-
ants of the Civic Federation, and these omitted dividends prior
to 1890, as the ﬁgures we have already given clearly show, would
have added many millions to the ﬁgures. But even as they
stand in the Harlan Report, they are deservedly characterized by
the Committee as “ stupendous.”
The people of Chicago are famous for their charities, but
even they can not feel that those who have received these stu-
pendous sums have any claim on“ their sympathies, nor any title
to any further consideration than is nominated in the bond.
\Vhile receiving as a free gift, these millions of property from
the state, these street car men have evaded paying their share
of the expenses of the state. Their position is that the people
having given them this hundred millions and more without
charge, must also without charge, protect them with its police,
courts and other machinery of government. The latest analysis
available of the taxes paid by the street car companies is to be
found in the Report of the Bureau of Labor Statistics of the
State of Illinois for 1896.
It is there shown that the property of these companies is as-
sessed at only about one eighteenth of its Value (5.46 per cent.)
.- 5'41!
The Situation ' 9
while business property in the heart of Chicago is assessed at
about one eleventh (9.25 per cent.) and property in the state gen-
orally at one quarter to one third (25 to 35 per cent.) of the
true value (Schilling, p. 47).
The city by ordinance in 1878 imposed a license fee, as the
courts haVe sustained its right to do, of $50 on each car. The
companies did not pay the tax. \Vhen they received their 20-
year extension in 1883,-—a gift worth tens of millions of dol-
lars—they agreed that they would hereafter pay this license,
and that on the past arrears they would compromise by paying
half. But they “invented the doctrine, and the city ofﬁcials ac-
cepted it, that a “ car” was not a car, but was thirteen round
trips a day of a car! And that the license was not $50 a car, but
$50 for an imaginary car making thirteen round trips every
day (Schilling 17). The result was that in 1896 they were
actually paying a license fee of only $9.20 a car instead of
$50. But they demanded just as much police protection at
our expense for the $9.20 car, as for the $50 car. The dogs
running the streets of Chicago paid more than the street
cars. The peddlers paid more. “If all the cars which Mr.
Yerkes claims for the West Side (2,330) were taxed $50 each,
the payment would be $116,500. The North Side system pays
$15,739.86 instead of $80,980 on the 1,618 cars claimed by Mr.
Yerkes. The South Side system pays $22,024.75 instead of
$120,750 on the 2,415 cars claimed by it. The street car licenses
of all the surface roads of Chicago in 1896 were $58,828.50.
“ The dog license in 1896 yielded $84,482; that on peddlers,
$92,376.38.” (Schilling, 48).
Adding together all that was paid in 1896 by the companies,
not only in taxes, but in licenses, electric light maintenance,
and other special payments, except those for paving, the Bureau
of Labor ﬁnds that the companies paid much less than even the“
low-assessed property in the business district. ‘
“The City Railway thus paid about $243,085.59 instead of
$267,933.01; the West Chicago Railway $169,760.87, instead of
$366,916.71, and the North Chicago Railway $114,609.86, instead
of $242,939.10.
The three roads paid $527,456.32 instead of $877,788.82. In
other words, the Chicagd roads secure such abnormally low as—
'_
I
u.» I
10 The Situation _
sessments that they save in general taxes, as compared With
even the low-assessed property in the heart of Chicago, far more
than they pay in car licenses and all other special taxes, aside
from paving between the rails and two feet each side.” (Schill-
ing. 52, 53) _
Even these low assessments were too high, and this year
under the conservatorship of judge Grosscup, the Board of Re-
view has cut down the valuation of the Union Traction and the
Chicago Consolidated Railway Company by nearly three mil-
lions of dollars ($2,940,000). Judge Grosscup, the Tribune
reported, “was said to have insisted upon a still lower assess-
ment.” (Chicago Tribune, Aug. 18, 1903.) i
The treasury of these bankrupt companies, bankrupted by
fraud, is thus replenished at the expense of other taxpayers, and
nbt by recovery from those who have spoiled them. The other
taxpayers may have been also the victims of fraud, or may have
lost money in other ways; but how we and the Board of Review
would laugh at them, if they asked for reductions for such rea-
sons on their real estate. ‘
This method of comparison is far too favorable to the com-
panies, for by including the licenses, etc., it makes their taxes
seem larger than they really are, in comparison with the pay-
ments by other taxpayers which are not swollen by these license
fees.

CHAPTER II
Moral Balance Sheet
The moral balance sheet of the operations of these traction
gentlemen exhibits results as startling and as clearly against the
interest of the public as their ﬁnancial balance sheet. In 1865,
when their charters were only six years old, when they still
had nineteen years to run, according to the original limit of
twenty-ﬁve years, the men who were occupying the streets of
Chicago, without compensation, passing by its Common Council
M__
Morel Balance Sheet 11
and defying its public opinion procured from the Legislature the
enactment of an act, extending their franchises to a term of
ninety-nine years. There could be no pretense that twenty-ﬁve
years was not a fair term, or that the enterprise needed such
extraordinary privileges. The South Side company had two
years before, in 1863, received, twice its original capital, or
$200,000 from the West Side company for its West Division
franchise. No provision of any kind was made to consult the
public opinion of Chicago. Not one of the safeguards as to
service, compensation, purchase, and the like, which were
already enforced in many cities elsewhere, and which ﬁve years
later were given by law to all the municipalities of England,
was conceded to the citizens of Chicago by this law. It impaired
the obligation of the contract made between the city of Chicago
and the companies by their acceptance of the grants already
given. It was so great an outrage that a speciﬁc provis1on was
,put into the new constitution of Illinois ﬁve years later, to ren-
der such special legislation impossible thereafter. Another con-
stitutional change prohibited any further street railway grants
without the consent of the local authorities. By a statute in
1874 such franchises were hunted for the future to twenty years.
As a fourth safeguard the new charter of Chicago of 1875 p10-
hibited any street railroad charter for longer than twenty years.
The general verdict on the character of the act of 1865 is suf-
ﬁciently indicated by this fourfold locking of the stable door.
The moment the; bill passed the House, the people of Chicago
rose to defeat it in the Senate. Public meetings, under the leader-
ship of the best men in Chicago, whose names are still household
words, J. T. Scammon, James H. Rees, L. C. P. Freer, Peter
Page, Philo Carpenter, Judge Van Higgins, S. K. Dow, Mat.
Laﬂin, Wirt Dexter, denounced the bill as “odious,” “ grind-
ing,” “corrupt,” “monstrous,” and a “grievous wrong,” and
appointed a delegation to go to Springﬁeld to prevent its pas-
sage by the Senate. The House passed it January 20, the meet-
ing was held January 24. The Tribune described the sequel.
“While a publishel account of a meeting of our most in-
ﬂuential citizens, who came out on one of the most inclement
nights of this winter to protest against this bill, was on its way
to Springﬁeld, while a committee of our responsible citizens.
ﬁr‘n - -n
l2 Moral Balance Sheet
traveling as fast as steam could carry them to represent the
views of the people of Chicago to the Legislature, were approach-
ing the capital, having already advised the Legislature by tele-
graph of their coming and while in the Senate the delegation
from Chicago was divided on the question, a member from Chi-
cago moved to suspend the rules in order to hurry the bill to
a second reading before the further opposition of the people
could be manifested. By help of the “ previous question” gag
the rules were suspended. Four motions to amend, one of them
by reducing the extension from “ninety-nine ” years to twenty,
are voted down by the same packed vote. The rules are again
suspended to bring the bill to a third reading, and it is passed
by a vote of 19 to 4.” (Chicago Record-Herald, Feb. 22, 1903.)
Governor Oglesby was now the only hope. Meeting followed
meeting, in the determination to save the city. A committee
headed by \Virt Dexter and including Thomas B. Bryan, L. B.
Otis, E. C. Larned, Frederick Tuttle, Col. Hammond, and E. H.
Haddock was sent to Springﬁeld to see the Governor. The reso-
lutions said the privileges given the companies were worth mile
lions to the companies, and would mulct the city corresponding
millions. The Board of Trade passed a resolution that the bill
sacriﬁced not only the rights of the present “ but of our children,
and our children’s children, also.” Governor Oglesby vetoed it,
because it impaired the obligations of the contract made between
the city and the companies, and took from Chicago its right to
purchase (Schilling, 10,) the lines at the end of twenty-ﬁve
years. “A right” and “a property interest,” the veto said,
“manifestly of great value and importance to the city,” because
it conferred upon “a private corporation franchises which are
claimed to be of very great value without consideration,” because
it was so drawn as to one company, that the Common Council
could not give another street car company any rights on the
streets without the consent of that company, because it was so
drawn that nine aldermen could increase the rate of fare while
it would require seventeen to repeal it—“I am unable,” said
the veto, “to appreciate this discrimination in favor of the cor-
poration and against the city,”-- and it added seventy-four years
more to the twenty-ﬁve already granted, during which the Com-
mon Council could not reduce the fares charged by the com-
La -
Moral Balance Sheet m 13
panies to less than ﬁve cents. Under the 99 years act the right
to charge ﬁve cents is “vested” until 1958. “Is it not more
consonant with the public interests, and especially with those of
the poorer classes, that after the expiration of that time the rate
of fare shall be left open to all such changes as the condition
of affairs at that time shall render desirable?” (Schilling, 12.)
Then began another series of great public meetings to sup-
port the veto. Thomas B. Bryan said the passage of the bill
had been procured by “men at work with whisky and cigars
and something of a more tangible and valuable character.” Col.
Van Arman advocated that the legislators who had betrayed the
city should be proscribed, and that no citizen should recognize
them “ except as persons capable of public robbery.”
The resolutions prayed the Legislature to “ stand ﬁrm for
the rights of the people and stem the great ﬂood of unjust legis-
lation for the beneﬁt of wealthy corporations which is sweeping
over the state.” (Chicago Record-Herald, Feb. 22, 1903.) John
H. Kedzie, Alonzo Huhtington, J. R. Botsford, Cyrus Bentley,
Tuthill King, James H. Bowen were prominent in a new com—
mittee to oppose the bill. But it was passed over the Governor's
veto, in the face of the opposition oi all but three of the Cook
county members, and an overwhelming public sentiment. It
was “no blind vote,” said “ Our Own Reporter ” to one of the
Chicago dailies, “but a positive determined effort to inﬂict a
great wrong.” The Chicago Tribune said editorially that the
Legislature had acted with “that peculiar and confederated una-
nimity and that indecent haste which usually characterizes the
action of men who know themselves to be doing wrong.” Not
one line of this is ancient history. The 99-years’ act, though
repealed soon after its passage, lived long enough to “ vest”
every right it granted, unless it shall be declared unconstitutional
by the courts. It still lives as the central nerve of the whole body
of traction interests in this city. Every right sought by it is
still claimed by the companies which procured its passage, and
they now claim discovery in its grants never before dreamed of
even by the men who got it enacted by “ peculiar and confed-
erated unanimity.”
Acquisitive as they are, one thing was carelessly overlooked
by the framers of the 99-years’ act. According to the view to
14 Moral Balance Sheet
which Judge Grosscup ascribes “ much force” the “Legislature
had in mind ” to make these street car companies masters of all
the streets of the Chicago of 1958, which the Common Council’s
expert, Mr. Bion Arnold tells us may have a population of
13,000,000. But they forgot that the science of traction might
ﬁnd some other power than horses. The act gave authorization only
for the use of horse power. Its 99-year gifts of immortality were
good only for the horse car. But the “peculiar and confeder-
ated” gentlemen were equal to making good this fault. The
theory of the “ growing grant ” had not then been invented. They
Ilid not therefore trust their interests to the chance that some
future Federal Judge would discover that there was “much
force ” in the view that the Legislature had in mind, “a street
railway system adequate not only to the then present, but to
the future needs of the city, . . . a growing system,” and that
they could use not only the power given them, but any other
power.
Public attention was ﬁrst called, ofﬁcially, to this omission in
the grants, and the opportunity it gave the city to get better
service, as a return for the grant of other power in the Annual
Report of the Illinois Bureau of Labor Statistics published in
1897.
“ The Legislature has never given any permission for cable or'
electric lines. To what extent the Legislature might sometime
make use of the present apparent illegal occupancy of the streets
by cable and electric lines in order to force important conces-
sions from the companies is an interesting and somewhat un-
settled legal problem.” (Schilling, 8.)
Pending the invention of the modern doctrine of “the grow-
ing grant,” the old-fashioned gentlemen interested went to the
Legislature with the-Humphrey bill in 1897. That was de-
feated after a memorable campaign by a Committee of One
Hundred, among whom were men like: Josiah L. Lombard,
Chairman, John H. Hamline, Francis B. Peabody, Simeon P.
Shope, Franklin H. Head, William A. Giles, Sigmund Zeisler,
John W. Ela, Adolph Kraus, John Mayo Palmer, Adolph Na—
than, Edwin Burritt Smith, Newton A. Partridge.
In Section 8, the Humphrey bill provided that “every such
street railway may be operated by animal, cable, electric or any
‘ Moral Balance Sheet 15
other motive power that may have been, or shall hereafter be
granted to it by the proper public ofﬁcers or authorities.” (Hum-
phrey Bill, Sec. 8.) This failing to pass into law, on account of
x the opposition by the Committee of One Hundred, the effort was
renewed, immediately, by the introduction of the Allen bill,
which became _law July I, 1897, within a few weeks of the fail-
ure of the Humphrey bill. This contained in precisely the same
“words the same authorization of “any other motive power” as
the Humphrey bill attempted to enact. The Allen law was re-
pealed, as the 99-years’ act was. But those familiar with the
ingenuitylof judges, in giving the sanctity of “vested rights”
to legislative fraud and robbery, will have little doubt that this
section will. be held to be a “contract” giving the companies
‘an escape from the hold the Council had on them—~to make
them surrender their claims—under the 99-years’ act in ex-
change for the right to use other power than horses. The “ Har~
lan ” Report states that the Allen law “was evidently intended
to cure this defect.” It also thinks that the repeal of the law
would “probably ”-- only probablyl—put the city back into its
favorable position for compelling surrender. Even if this were
so, the companies do not now need the help of the Allen law,
repealed or' not. If the doctrine of “the growing grant for the
growing system ” is upheld the courts will give them all they want.
There are but two escapes from the 99-years’ extension—
to have it found unconstitutional by the courts, or, to regain
possession of this “property interest of great value” by con-
demnation through the exercise of powers of eminent domain.
For the former we must go to the Federal Courts: for the latter
to our State Legislature. The hopefulness of recourse to the
Federal Courts can not but be dashed by the language in which
Conservator Grosscup speaks of the constitutional point. The
arguments for it, he says, “do not merit space for statement.
much less for discussion.” The veto message of Governor Og~
lesby bristled with constitutional objections, suggested by his
own knowledge of the-law, and by the arguments submitted to
him by some of the ablest lawyers in Chicago. No state legisla—
tion is constitutional that impairs the obligations of a contract,
and that this act impaired the contracts between the city and
the companies, as to a matter “ of great value and importance,”
~.
~-~_
_16
M eral Balance Sheet
r _
“ can not,” the Governor’s veto said, “ reasonably admit of ques-
tion.” This constitutional point has been since maintained and
is still maintained by lawyers of great ability. The hundreds
of thousands of voters of Chicago are practically unanimous in
the same view. They believe that the “ contract ” attempted
by the law of 1865 is invalid not because it was an unpopular
bargain, or a bad bargain, not even because it was a wicked
bargain, but because it was no bargain. They hold, with their
eminent lawyers, that the legislation of 1859 had made a con-
tract, and that the 99-years’ act of 1865, “impairing” this was
therefore unconstitutional and did not create the “ contract,” and
the “vested rights ” the companies claim. But Judge Grosscup
waves all this away, as “ not meriting space for statement much
less discussion.” And Judge Grosscup commits himself thu's
unreservedly though he is the Federal Judge who will probably
have the ﬁrst trial of our claims.
The doctrine that any grant by a sovereign state to one of its
creatures is a contract more sovereign than the sovereign is a
judge-made Yankee notion, a freak in the evolution uhicll for
centuries has been ‘carrying jurisprudence towards justice, a
fruit of false histories of the people as repudiators, and anarch-
ists, and a device of conservative terror in the early days of
democracy. What property’s judges have made, the people‘s
judges can unmake.- But accepting the doctrine, as it stands,
it is the ﬁrst contract, not the later one. the contract favoring
the people, not that favoring the monopolists, which stands,—-l in
justice. And there is an earlier “contract” still. That is the
contract which “we the people ” made when we agreed upon
the Constitution of the ’United States, and the State of Illinois,
to guarantee the equality, of all of us in the law, and before
the law.
A grant made by a legislature, of a monopoly, against public .
policy, in perpetuity, for bribes, to the destruction of the individ-
ual and social rights, moral, and property of a whole people,
is not a contract. There is no law that says it is. Nothing is
law that is inconsistent with reason, and justice, and the love
of God and man. The very lawyers who argue that any slip
of the pen into which the representatives of the people may be
tricked or corrupted, is a contract binding unborn generations
n. ’- .v-L“
Moral Balance Sheet 17
to pay tribute to folly or crime will argue the other way with
as great cogency, and as much parade of decisions, if you will
hire them. If this “contract ” doctrine is law, as it is not, then
the Legislature could have handed us over for a thousand years,
instead of one hundred; it could have given all public utilities --—
light, \water, telegraphs, telephones, pneumatic tubes,-- in the
same grant to the same men. It could have granted all this to
“one man. It would have been just as much a “contract” as
the 99—years’ extension. There would have been judges to de-
clare that the constitutional objections did “not merit statement
much less discussion,” and to hold good the thousands of mil-
lions of stocks and bonds that would be issued on this grant,
because‘they had been bought and sold in “tens of thousands
of transactions by people who never heard of the Legislature of
1865.” ,
It is not the difference between a hundred years and a thou-
sand, or between a monopoly, of one public utility and a m'o—
nopoly of all that makes one grant good and the other bad.
Those differences are not differences of principle. The thousand
years grant of all public utilities is bad principle, and the
same principle condemns the hundred years grant of one utility.
There is no compulsion of precedents on the courts to decide
such a grant valid. The precedents sustain two views, and the
newer and better precedents hold against the doctrine that leg-
islative grants of public utilities are such contracts. The younger
judges, the judges with more democratic prepossessions, or freer
from corporate inﬂuence in their previous professional life, or
less dependent on corporate inﬂuence for their appointment to
the bench, or instructed by the newer political economy-“ the
care and culture of men ”— are bringing the law into line with
justice and common sense and that general welfare which is
the end of all law. Their decisions take the ground that such
grants are not contracts; that they are licenses, that their pri-
mary purpose is to serve the public, that the public right takes
precedence of the private right that they give no monopoly; that
they convey no right to extortionate proﬁts; that they create no
title in private individuals to property in public functions; that
they deed no property rights at all except to reasonable return
for actual services and real investment; that they are subject,
‘\ \c.
l8 ' Moral Balance Sheet
with such compensation, to recall or modiﬁcation, at all times
and in all ways, as demanded by the common good. The Su-
preme Court follows the election returns, and when our people
take as much trouble as the other people do about the appoint—
ment of judges, they will have no more of this worse than Dred
Scott law that any grant is a good contract.
There are two opposing legislative “ grants,” two opposing
contracts, two opposing “vested rights,” two opposing “lawsj”
two opposing “property rights ” in question. One is the
grant, the contract, the vested right, the law, the property
right of the people, established by the ordinance of 1858 and
the law of 1859. The others base themselves on the law of
1865,— six years later. If the former made a contract, the law
of 1865 could not impair it, and be constitutional. To uphold
the 99-year law of 1865, if this be so, and permit the ,repudiation
of the previous contract would therefore be in Judge Grosscup's
own language— “ a judicial invasion of contract and a breach of
public faith as reprehensible as the repudiation of some un-
doubted but unpopular public debt.” (The Public, July 18.
1903, p. 229). But Judge Grosscup has no ear for the “vested
rights” of the two millions of people whose bread he eats. He
will “not even state, much less discuss” their arguments. The
people of Chicago in this matter are the champions of much more
than their own rights. The rights of all the people of the United
States are imperiled by identical issues in every direction. ‘The
people of Chicago in this issue with these corporations monop-
olizing necessities of life, including among the necessities the
public and private virtues, are the leaders in a contest in which
all the people will soon be actively engaged, and which will in-
volve the whole range of democratic life in our country which
is the hope of the democracy of the world. ,
The demand of the people of Chicago to be released from the»
intolerable slavery with which theyare threatened, in this mat-
ter, and the demand of all the people everywhere to be released
from the similar slaveries overcoming them, is founded on clear
considerations of the ' constitutional rights of true property.
Their demand in this case does not rest on the fact.known to
every man of the world, that the alleged property of the street
car companies in the 99-years’ law is stolen property. They
~45
Moral Balance Sheet 19
realize too well that the courts make a privileged class of the
criminals ’who corrupt common councils, and Legislatures and
wreck corporations. If the horse of one of the people is stolen,
the courts give him back his property wherever he can ﬁnd it,
no matter in whose “innocent” hands it may be. But if “a
property interest of great value and importance ” is stolen from
the whole people by the Legislature, the courts help the thieves
not the people. The courts hold that fraud vitiates all contract.
but they will not hold that it vitiates contracts made by
le‘giglation, however rotten they may be. Contracts “ Ultra
Vires,” beyond the powers of the contracting parties are void,
but this “contract” wholly beyond the power of any constitu-
tional or democratic government, is good. Contracts, against
public policy are void, but a contract secured by sickening cor-
,ruption and destroying public morals and public wealth for a
century like. the gdyear act against public policy, if anything
could be, are not‘ void. A law impairing the obligation of a
contract is void, but a law impairing for the beneﬁt of a few,
a contract made by a previous law for the beneﬁt of the whole
people, is not void. The man who has bought a stolen horse,
though it has passed through a thousand hands, is not an inno—
cent holder. But the men who buy stocks and bonds stolen
from common council and Legislatures are “innocent holders."
The very men who stole them are “innocent holders ” because
the grant was a “contract.” Ignorance of the law excuses no
man. And the men who steal these “ contracts ” and their heirs
and assigns, their customers, and their “widows and orphans,”
need know no law. The rights of property which are sacred to
some of our judges are the rights of depredators in the property
of the people, not the people’s rights to their own property.
Judges are creating and applying a law of “innocent holders,”
“vested rights,” “contracts” which is making the wholesale
robbery of the public the safest, and most enormously proﬁtable
business in America, and they are giving these great thieves a
privilege no small thief can have—the privilege of giving good
title with the sale of his 1001:.
It is imperative that the criminalities of the past and present
of Chicago traction be frankly and fully dealt with. This, not to
subject innocent investors to “ revenge and retribution” (W. W.
20 Moral Balance Sheet
G. 73), but to comprehend the whole of the situatipn so that
we may comprehend the whole of the remedy. There is one
court in this country whose judges were not and are not
corporation attorneys, which does not prefer technicalities to
justice, where wealth is not.immune of justice where the jury
will not make its verdicts under judicial dictation, and which
cannot be reversed by any of the other courts. In that Supreme
Court, the court of public opinion, the traction millionaires of
Chicago must answer the charge that from the beginning till
now they have been guilty of the crime, corruption of public and
private life, which involves all other crimes. The evidence on
this point is voluminous. It can not be withheld from the jury,
nor thrown out on bills of exceptions. Fram the passing of the
99-years’ act to the enactment of the Mueller law, there has
been corruption of the elections, corruption of ofﬁcials, corrup-
tion of juries, corruption of Legislatures, corruption of common
councils. Men reported prominent in promoting traction in-
famies have been reported prominent in securing the appoint-
ment to the bench of men who will have to pass upon issues
involving traction millions. These are coincidences the public
will take note of, and on which they will render a verdict not
submitted to judicial direction.
“It is widely believed to be true that the city council of
Chicago has not always been wholly free from boodle and black-
mail. It is also as generally believed that street railway ofﬁcials
are in position to throw considerable light upon the reasons for
this state of affairs. . . . The sense of public shame and dis-
grace due to their relations to the council has resulted in a suc-
cessful effort to reform that body.” (“100.” p. 14.) So
said: Josiah L. Lombard, Chairman, John H. Hamline, Fran-
cis B. Peabody, Simeon P. Shope, Franklin H. Head, VVill-
iam A. Giles, Sigmund Zeisler, John W. Ela, Adolph Kraus,
John Mayo Palmer, Adolph Nathan, Edwin Burritt Smith, New-
ton A. Partridge, and (“ 100,” p. 16), the remainder of the
“Committee of One Hundred Citizens” who opposed “the
Humphrey bills ” in 1897. Citizens of high position in Chicago
business and society and public life, denounced by name, legis-
lators who favored the Humphrey bills, in public meetings, as
“thieves,” and the legislators made no reply. When the Allen
’
Moral Balance Sheet 2].
,'~
bill, reproducing the most valuable feature of the Humphrey bill
~the right to use “ any other motive power,” --took the place
of the Humphrey bill, a number of senators closely watched
the proceedings in pursuance of an agreement to interpose every
parliamentary obstacle. But so surreptitiously did the presiding
ofﬁcer do his work, that not one of these watching senators
heard the Allen bill read, nor heard the motion by which it was
brought up and advanced. The bill as amended was not printed,
and no time was given to consider the important amendments
‘ which were waiting. The rules of both the Senate and the House
were violated to pass it out of its regular order.
The Common Council undertook to pass ordinances in favor
of the companies under the Allen law. It represents the public,
but it obeyed another power, as the Legislature of 1865 did. They
would have done its bidding, but the public became so resolute,
that it resorted to physical force to save its rights. There are
thousands of men in this movement of today against any renewal,
on any terms, of any contract with these companies, who took
part in this demonstration. They went to the City Hall with
ropes, and called out their aldermen, one by one. “This rope
is for you,” the aldermen were told. Some of them wept, but
when they went back to the council chamber they voted for the
people. ' 1
Mr. George C. Sikes, Secretary of the Street Railway Com-
mission in 1900 and of the Committee on Local Transportation
of the Common Council of Chicago in 1901, now Secretary of
the Municipal Voter’s League, and a journalist of experience
and character who has had to watch proceedings at the State
House and the City Hall, made a most impressive statement of
the relations between the traction interests and our government,
state and local, in an address delivered before the convention of
the National Municipal League in Boston in 1902. Politically,
he said, the leader of the traction interests “became the most
powerful factor in the community. He dominated conventions
and made and unmade councils and mayors, all of course under
cover as much as possible. During his later days he had nearly
as much to say in naming governors and in controlling the ac—
tion of the state Legislatures. . . . He went to the Legislature of
1895 with bills that were passed without much difﬁculty, but
h
22 Moral Balance Sheet
their ﬁnal success was blocked by the veto of Governor Altgeld.
Angered at this defeat of his project, Mr. Yerkes decided to
name the next Governor of the state himself and thus be .sure
of having there a man who would carry out his wishes. and
in this he succeeded” (Sikes, 6.) The public opinion of Chi-
cago long since made up its mind as to the relations between
the street car companies and the city government, which Mr.
Sikes says the companies “ made an instrumentality for serving
private ends.” (Sikes, 3.) “It is easier,” he says, \“ today for
a politician of influence to place a constituent on the pay-roll of
a street railway company than it is to place him in the City Hall.
The “ car-barn vote ” in Chicago, and I suppose in other cities,
is recognized as an important factor, both in primary and gen-
eral elections, and it is a dangerous vote because controlled to a
very large extent by the barn “ boss ” in the interest of the com-
pany. The dangerous activity of the street railway companies
in politics constitutes one of the strongest arguments for the
complete municipalization of the street railways.” (Sikes, 17.)
In this, Chicago is no exception. The testimony of .the engineer
of the Philadelphia Gas Works is a matter of public record.
“ We always put in as employees the men recommended by the
city council, and we as far as possible keep them there as short
a time as we can, so as to give as many aldermen as possible
as many favors as possible in a given length of time.” (M. A.
836.) A similar system prevails in Boston. The city council
of Philadelphia leased the city’s gas works to a favored corpora-
tion in the face of a bid $10,000,000 better. Of this transaction
William Draper Lewis, the Dean of the Law School of the Uni-
versity of Pennsylvania, said at the' time: “There is an almost
universal belief among all classes in the city that bribery has
been used to obtain the acceptance by the city government of
this lease. This belief is not conﬁned to those who are opposed}
to the lease, but is shared by many who are strongly in favor
of it.” (M. A. 789.) l‘
The recent scandals at St. Louis are the fruit of the corrupt
alliance between the city government and street car companies.
St. Louis has begun to send leading citizens to the penitentiary.
Chicago has that duty still before it. At the Convention upon
Municipalities and Public Franchises in New York, Feb. 1903,
Moral Balance Sheet 23
Mr. Frederick F. Ingram, the Commissioner of Electric Light-
ing of Detroit, quoted from the Detroit Free PTCSS' “The De-
troit City Gas Co. has sent to each member of the Common
Council a request to nominate a few men for employment. With
each letter was sent ten blank tickets, the ﬁlling out of which by
an alderman insured a job to the holder.” “ This gave,” said Mr.
Ingram, “in one-bunch 370 jobs to the ofﬁcials who have the
power to compel the corporation to live up to or exempt them
from the conditions of their franchise contract, to amend the
contract and to grant them new privileges.” (M. A. 825.)
Prof. R. T. Ely says, “Our terrible corruption in cities dates
from the rise of private corporations in control of natural mo-
nopolies.” (M. A. 698.) . Charles Whiting Baker, one of the
editors of Engineering N e'ws, declares that “out of the relations
between city governments and franchise companies have grown
three-quarters of the municipal corruption of the past two
decades.” (M. A. 788.)
The “uncontrolled public service corporation ” says Edwin
Burritt Smith, in the Atlantic Monthly for April 1901, “is mainly
chargeable with the failure of our municipal governments.”
“ The domain of the spoils system now embraces the public serv-
ice corporations.” Several attempts to regulate the charges of
public service corporations have been ,defeated as happened in
Nebraska, by the production of cooked accounts which the courts
admitted, showing that the companies could not do business at
the reduced rates. The traction companies of Chicago can not
escape in that way. Thanks to the information obtained by ex-
pert examination of their books, it is known that they could meet
every legitimate demand of capital for compensation, and give
lower fares.
The Council which in 1883 gave the companies the zo-years’
extension which has cost the city millions of dollars, the Chicago
Tribune (July I, 1883) said was a “thoroughly rotten and dis—
honest body, always for sale to the highest bidder. The very chil-
dren in the” streets would laugh to derision the idea that, with so
big a stake before them as the renewal of the charter of the street
car' lines, worth hundreds of thousands of dollars, the decision
of the Common Council would for a moment turn on the public
interest or on anything but the bribes that the councilmen could
Q.—
24 Moral Balance Sheet
get from the syndicate, that was willing to pay most for the pos-
session of the franchises.” (Schilling, 16, 17.) Judge Dunne of
Chicago in a public address, ]an. 18, 1903 said: “Within a few
years back we have known aldermen and legislators in this city
who have become unaccountably rich while in ofﬁce, and while
they have found it impossible to place their friends in the water '
ofﬁce since the institution of civil service, they have found no
difﬁculty in placing scores of them on the street cars, and in the
gas plants of this city.” (Chicago Tribune, Jan. 19, 1903.)
The expert accountant employed by the Civic Federation in“
1897 to study traction ﬁnances found in the accounts of the South
Side Company, the Chicago City Railway Cempany in the “ con—
struction account ” a column of entries for printing, stationery,
telegrams, legal expenses, and so forth; in which occurs a mys-
terious item, “C. B. Holmes, State street line $249,678.35,”
“about which,” he says, “nothing seems to be known, as the
details are not on record.” It was this gentleman who later
fainted in court under the stress of an examination into some of
the relations of his company to jury bribers. In the operating
expenses of the Union Traction Company for 1901, is an unitem-
ized entry, under the heading, “General,” of $655,965. In the
statement of the Chicago City Railway Company is a similar
entry of $893,878. This included taxes and licenses but these
amount to no such sum. These companies can remove the belief
of the public that concealed in these accounts are disbursements
for city and state legislation by producing the vouchers and de-
tails, and in no other way.
The two law ofﬁcers of the people at this time, the City Attor-
ney and the Corporation Connsel gave opinions in favor of the
rights of the companies and against the rights of the people.
One was thereafter made the Chief Counsel of the principal
street car company. The other has repeatedly since been elected
judge. Another lawyer of the people when corporation coun-
sel, persistently refused to answer the questions put to him
by his employer, the City Council, as to its powers over the
street car companies. Four times between May 4, 1896 and
Ian. 4, I897, by speciﬁc resolutions passed by the Council he
was called upon to give his client a statement of its powers
under the law. But he made no reply. Today he is prominent
. Moral Balance Sheet 25
among the lawyers representing the companies, which his silence
protected. If he has refused to answer the questions of his pri-
vate client, as those of his public client, nothing has been heard
of it. Speaking of this in public one of the aldermen said: “ We
created his ofﬁce; he is our charge; we can undo him; we can
wipe him out of existence by an ordinance to that effect; and yet
when we asked for an opinion on the subject we could not get
it.” This alderman asked a question of this lawyer who refused
his professional service to the client—the public—whose money
he was living on. The lawyer has never answered, and his
client—the people—must answer it for themselves. The ques-
tion was: “ Why is it that the Council can not get light from the
law ofﬁcer of the city as to what our powers are?” \Vhy?
It was reported by the Common Council Committee of 1898
that the street car ordinances “ are usually framed by the attor-
neys of the streeairailway companies, instead of by the legal de-
partment of the city.” (Harlan 37.) It is not surprising to
learn that ordinances so drawn place no obligations upon the
companies except to receive the favors of the public, and that
they contain none of the stipulations as to the duties and respon-
sibilities of the companies and the rights of the public, which
experience here and elsewhere has taught to be indispensible,
and which are invariably put into such grants where the com-
munity is awake and its ofﬁcials are faithful. Though these or-
dinances were frequently modiﬁed in operation by subsequent
leases and arrangements between the companies. these leases
were never submitted to the Council, no copy of them was ﬁled
at the City Hall (Harlan I 5, I6), and there is no evidence that
any council or any of the ofﬁcial protectors of the people, legal
or other, ever made any attempt to correct these disregards of
the public rights and interests. “Whatever rights the city may
possess it can not avail itself of them so long as its ofﬁcials are
as apathetic as in the past.” Such was the comment added on
the record of a decision in a street railway case (71 111., 269),
by Judge Gary. Where it is money in the pockets of the street
railway owners to have activity;— among their lawyers,-- they
get it. Where it is money in their pockets to have this “ apathy,”
--among the people’s lawyers, ofﬁcials and representatives,—
they get that, too. So sure of the people’s ofﬁcials are these com-
25 Moral Balance Sheet — i l
panies, that they have taken possession of nearly 30 miles of our'
streets without any grant or ordinance whatever, conﬁdent that
no mayor or council or city attorney or street inspector would
disturb them. They anticipated, in practice, Judge Grosscup’s
theory of the “growing grant.” (B. A. 212, 218, 226, without
grants.) '
The bribing of juries ‘in accident cases where the street car
companies are being justly sued for damages by those who have
been crippled by their antiquated service, or by their disregard
of laws as to speed, crossings and the like, is perhaps the most
painful aspect of the corruption due to the owners of our street
car companies. Much of the time of our grand juries and courts,
and a great deal of expense has been given in recent years to
attempts to bring the harpies doing this work for the street car’
millionaires to justice. The evil is notorious, but no one has
been punished for it. Juries convict, but j udgesr‘grant new trials
until the prosecution is worn out. There are at this moment
suits in court for $15,000,000 damages for accidents on the Union
Traction lines alone. However extravagant some of the claims
may be, there could be no claims at all, had there been no acci-
dents. Men who will tamper with common councils and legisla-
tures and governors, will not stop at judges and juries. And
the sum at stake at this moment on the lines of one system is
one sixth as much as all the winnings of the half century of
fraudulent capitalization made possible by the bribery at Spring-
ﬁeld in 1865. There is no average human nature that can with-
stand such temptations.
The street car stockholders are guilty of frauds and oppres-
sion between themselves. as serious as those between themselves
and the government. The North Chicago City Railway Com-
pany, by a majority of one share out of 5,000 in 1886 was made
to pay $6,208,908.39 for the cable which did not cost more than?
$3,141,741.32 (C. F. 30, 89), a proﬁt of $3,067,167.07 and really '
much more, for the payment was made in stock which advanced
in value to $200 a share, doubling the “proﬁt” if so honest a
word can be used. '
Similarly by getting one share more than half the stock of
the Chicago West Division Railway Company, its management
made what some judges would call a “contract” by which that
____ rm
~.
Moral Balance Sheet 27
company paid $Io,ooo,ooo for cable, which cost (books not kept,
123, C. F.) less than $5,000,000 according to the Common Coun-
cil report of 1898, and $4,000,000 according to the expert of the
Civic F ederation‘(C. F. 40, 41).
If the majority had been honest, it would have lost more than
the minority by this “ contract.” But it was not honest. It was
to itself, under another name, the United States Construction
Company that this majority gave this plum. One half these
millions of extortionate proﬁts were therefore both in law and
morals stolen from the minority. The agreement between the
parties that accounts should be kept of the cost of these improve-
ments was not kept, and when the management were asked for
the itemized cost, they replied airily that it was “impossible,”
and all the information obtainable was that everything had been
charged to “ a General Construction account,” and that “the
total cost had been $9,334,395.16.” (C. F. 123.) The reason
of the failure to keep the accounts is revealed in another feature
of the agreement which was that the old company was to pay only
the actual cost of the cable put in by the new company (C. F. 38).
It was charged much more, and as the books of both companies
were in the hands of the “ﬁnanciers ” it was easy to keep the
proof out of the accounts, and to make false entries and both
these things were done (C. F. 40, 41). All efforts to see the
other books, those of the United States Construction Company
have failed, as they have been removed to Philadelphia. The
ﬁnanciers who negotiated the lease by which one half the owners
of the Chicago West Division Railway Company,— lacking one
share—were placed at the mercy of such an arrangement,
showed their appreciation of the value of their efforts by charg-
ing $6,000,000 for negotiating the lease—with themselves (C.
F. 137). It was made between two companies, one of which
already owned the control of the other, and both of whom were
controlled by them. It was made known through investigations
jlby Mr. Frank A. Vanderlip, once ﬁnancial editor, and later As-
sistant Secretary of the United States Treasury, and now Vice-
President of the New York City Bank, that the head of the
North Chicago and \Nest Chicago system had burdened his fel-
low stockholders with many millions of dollars of guarantees of
bonds of auxiliary companies. such as extensions, while he
28 Moral Balance Sheet
pocketed the stock. His associates took the risks; he took the
proﬁts (Schilling 36). His fellow stockholders have submitted
in silence to this fraud and all the other frauds upon them. De-
praved to divide with him the proﬁts of frauds on the public,
they had no conscience and no courage to appeal to for their
own protection against him. Thus majority and minority of
these corporations have been corrupted. Though there are not
known to have been any interior depredations between the man-
agers and the stockholders of the south side company and the
Chicago City Railway Company their moral position, as stock-
holders, is not better than that of the stockholders of the other
roads. It was the Chicago City Railway which began the trac-
tion record of corruption by its seduction of the Legislature in
1865. The stockholders of the Chicago City Railway Company
claim that all their stock has been paid in cash. It is not true.
It has been paid for in part cash—quite a difference. To issue
stock worth $250 for $100 in cash is the same fraud in kind as
to issue $100 of stock for nothing. Its stockholders are on
record as knowingly having approved the creation of millions of
ﬁctitious liabilities on their books, to conceal proﬁts, and deceive
the public into believing there was capital where there was no
capital, and make it believe that “a fair return” on this false
capital was justly asked for, when much more than “ a fair
return ” had already been given by the public on all the real
capital put in. A “proposition so bald” says the accountant,
“on the face of it as scarcely to require comment.” He con—
tinues: “ It is chieﬂy remarkable as showing the frankness with
which the exact situation is explained to the shareholders and
their apparent ready acquiescence in the scheme proposed, as
I ﬁnd no record of any protest from that quarter; on the con-
trary, it has been the practice uniformly at each annual meeting
of the shareholders to ratify, conﬁrm and approve by speciﬁc
resolution all the acts and doings of the management during the
preceding year, so that there would seem to be no division of
responsibility between the management and the stockholders
either on this or any other account.” (C. F. 75.) \
Chief among the stockholders of these companies. all of them,
are some of the wealthiest and most successful business men of
the city. But not one of them has said a word or done a thing
~3
oral Balance Sheet 29
in public, in condemnation of this corruption and extortion. All
of them‘are now 'demanding their pound of ﬂesh, with all the
blood that ﬂows with it. The public is learning that the richest
men make the poorest citizens, as has always been true.
This corruption in the public lifeeof Chicago and Illinois was
begun by these street car men. They can not plead that they had
to ﬁght blackmail with bribery. They went in mere wantonness
of greed to the Legislature of Illinois in 1865 to get from it a cen~
tury’s monopoly, and hundreds of millions of the people’s money.
There was no self defense about it. Their franchises were young,
*only six years old, and had still nineteen years to run. There
was not even a whisper of attack on the companies, nor even
of proper self-protection on the part of the public. No one was
thinking except these men. They struck their own city a foul
blow. This city had given them for their private proﬁt the hos—
pitality of its streets without a cent of compensation. They re-
warded it by getting the Legislature to take from it, its elemental
rights of home rule and self~government, and bind it hand and
foot, to be robbed for 99 years. But a few weeks since these
same companies have met the people of Chicago in the same
spirit and with the same corruption. In the Mueller bill we
asked for only a fraction of the rights and powers over our own
destinies, which are enjoyed by other cities, some of them our
rivals. But these men were there with their old arguments from
“the general expense account,” and their demand, that the peo-
ple of Chicago should be denied the breath of municipal life. The
people of Chicago had a clear majority of the Legislature with
them. Unable to corrupt representatives sensitive to the new
spirit rising in the public, these men attempted a coup d’ etat.
They undertook to prevent the majority from legislating. They
would have succeeded with the help of the Speaker and the Gov-
ernor, but for one circumstance. At last the people outside the
Legislature, and in it, had been roused t0 the pitch of meeting
,2 usurpation and revolution, with that force which is the last but
I'irresistible weapon of the people. The members of the majority ﬂ
broke up their chairs and desks into weapons. Then the Speaker
capitulated from behind the barricade of petticoats that had been
brought in for him. Behind the members he saw the faces of
millions of citizens. Thus runs the record from 1865 to 1903.
and it is still running.
CHAPTER III
tv .
Mechanical: The Service We Get
the Worst in the World
We could not deceive ourselves if we tried to. These men
would undeceive us. To be lulled into any sense of security,
any belief that these men now that they are rich, will become
respectable, is an illusion. The people of Chicago “must recog-
nize the truth, if they are to be equal to the emergency before
them. That truth was expressed with precise accuracy by Mr.
George C. Sikes, when he said before the National Municipal
League, last year: “ The chief men back of the Union Traction
and the underlying interests are desperate men who make a bus-
iness of playing for big game.” It was big game the traction
interests played for in 1865, and in 1903, and the tactics of all
the companies, north, west and south, have been and are those of
“desperate men.” “ To the extent that it obtains gifts from the
municipality, the public service corporation,” said Mr. Edwin
Burritt Smith in- the Atlantic Monthly for October, 1901, “is a
predatory beast of prey.”
One thing might have given a touch of alleviation. To have
become responsible for $117,000,000 in the hands of innocent in-
vestors for a plaﬁt worth only $24,600,000; to have furnished in
addition dividends of tens of millions; to have had our Legis-
latures, common councils, governors, city attorneys, juries,
bribed and bulldozed: to have been delivered over until 1958
to a monopoly in all our streets; to have been scolded by Judge
Grosscup as if we were plotting repudiation “by brute force”
(G. 6) ; and threatened by him with the Federal troops— “ the
power of the Court to command all the resources of the Federal
Government ” (\N. W. G. 74), all this is hard. But it is crushing
to know on top of this that we have been given, and are today
given the poorest and most antiquated transportation service of
any ﬁrst class city in the world. “Chicago’s belated and in-
Service We Get the Worst in the World, 31
adequate transportation facilities,” said the Common Council
Committee of 1901. Paris consoled itself for the corruption of
the Empire, by the regeneration wrought in the city by Baron
Haussman. New York set off Tweed’s improvements against
‘ Tweed’s robberies, incidentally sending Tweed to the peniten-
_ _tia'ry where all Tweeds ought to go. Chicago has less than
nothing to show for its traction adventures. The “ scientiﬁc”
view of Chicago traction can be found in the book by Prof.
Charles Zueblin of the University of Chicago on American
Municipal Progress. “Chicago,” he says, “probably contains
today the most confused and imperfect arrangement to be found
anywhere.” (Z. 54.) “ The cable system on all three sides of the
city for the chief trunk lines, is at its best antiquated.” (Z. 55.)
, “The cars in Chicago are inferior to those in most of the
cities of the country, and to add to the discomfort of the pas-
sengers, they are poorly heated and ventilated in winter, many
of them as yet unprovided with vestibules, and on the cable lines
they run in trains of two, three, or four cars, “in violation of
law ” with great disadvantage to the general trafﬁc of the street
and inconvenience to the patrons of the companies. There are
only two routes in Chicago on which modern cars are used.
These large cars, equipped with good vestibules, fenders, electric
heating apparatus and signals, and air brakes, present a startling
contrast to the primitive conveyances used elsewhere in the city.”
(Z. 55, 56)
The “expert view ’ is given in the report of Mr. Bion Ar-
nold to the Common Council last year. It conﬁrms all that is
said by Professor Zueblin. Mr. Arnold reports that “large
numbers of people living within a two-mile limit of the business
center are walking morning and night, some of these walk from
choice but the most of them dp not (B. A. 32). “ The present
terminal facilities as arranged are utterly inadequate.” (B. A.
32.) The use of the cable prohibits the full use of the terminals
there are. The underground trolley, Mr. Arnold “ﬁnds, is as
practicable in Chicago as in \Nashington or New York. But the
companies have not introduced it. Professor Zueblin declares:
“ They might long ago have substituted the underground trolley
for the cable, except that by so doing they would have demon-
strated the possibility of its use in Chicago, which they have
7
x
32 Service We Get the Worst in the World
strenuously denied in the interest of the extension of the over-
head trolley.” (Z. 55.)
In favor of the method of operating cars in trains, peculiar
to Chicago traction enterprise, Expert Arnold declares there is
nothing to be said, “not even from an ownership standpoint.”
“ Two or more cars operated in a train decreases the frequency
of cars on the street; increases the number of stops in the ratio
that the larger number of passengers on the train bears to the
capacity of a single car; requires more time for acceleration and
retardation; in taking up the lost motion in drawbar connec-
tions due to wear, an extremely unpleasant effect is transmitted
to the car; the surge of the slack in the cable communicates a
jerky movement to the car: owing _to the length of the train and
ordinances prohibiting the blocking of crossings by cars, pas-
sengers on the forward car are carried beyond the footpath t0
the sidewalk, and are frequently compelled to alight in the mud;
the necessity for transmitting signals through one or more hands
endangers the safety of the passenger; the added weight of a
train over a single car requires greater distance, more time and
more power for breaking and many collisions and accidents are
traceable to train operation that would not happen under single
car operation; congestion in crowded thoroughfares is increased.”
(B. A. 38.) “The money saved in drivers’ wages is more than
dissipated in the accident account,” says Mr. Arnold. But this
perhaps takes no account of the saving in the accidents account
by the bribery of juries in suits for damages. Cable trains run '
by hand in the busiest thoroughfares are one of the contributions
of “ private enterprises ” to our dignity as a metropolis. At sev-
eral points in the most crowded part of Chicago, where the
cable has to be dropped, the cable trains have to run by momen-
tum sometimes as far as ﬁfty feet. “It very frequently occurs
that the train is cut off by a team which brings it to a stop at
a point where the rope can not be picked up. Then it becomes
necessary to push the train to the ‘pick-up’ point by hand.”
(B. A. 33.) Some of the cables run lines on more than one a
street; and an accident anywhere stops them all. “The north.
bound track on Clark street is lined with cars, bumper to bumper,
as far south as Twelfth street almost every evening during the
rush hour.” (B. A. 37.)
\
Service We Get the Worst in the World 33
If the companies had kept their car equipment up to the
standard of modern construction, and had replaced the old—fash-
ioned cars they still keep on the street with up-to-date double
truck cars, such as are run on one or two lines, “the change
would have added a seating capacity equivalent to adding 1,122
more cars of the single truck type to the present service, without
increasing the number of cars on the streets.”
The Common Council’s Report of 1898 emphasizes the fact
that our street transportation “is in the hands of nearly thirty
different companies, each with its separate organization and
management, each with more or less of a monopoly in its par-
ticular district, and each, as regards other lines, naturally ad-
ministered under an individualistic motive to enhance its own
interests rather than under a broad purpose to develop the means
of transportation as a uniﬁed system.” (Harlan, 11.)
Our whole system is a net-work of breaks in transportation.
New lines that should have been built as extensions of the old
lines, have been built, as shown in the facts quoted from Mr.
Vanderlip, by separate companies and charge additional fares.
The separation of the street car system into three companies,
following the three divisions of the city has led to the operation
of our lines as radii, with separate fares for each radius to the
center; instead of diameters through the city, from circumfer—
ence to circumference for one fare. The companies do this
sometimes in violation of the laws, like that giving passengers
the right to ride from Cottage Grove avenue and Thirty-ﬁrst street
to Western avenue and Madison street for ﬁve cents. Sometimes
it is done by frauds on the stockholders, as in the creation of the
independent companies, described by Mr Vanderlip.
Overcrowded and old-fashioned cars, and too few of them,
antiquated motive power, needless breaks in transit, dead track—
age in the business center, inadequate terminals, excessive fares,
double fares and illegal fares, denial of transportation to large
numbers, avoidable accidents, and interruptions of travel and
trafﬁc, needless sacriﬁce of life, limb and health, refusal of trans-
fers, misarrangement of routes, connections and terminals, non-
co-ordination of surface, steam and elevated systems, congestion
of the streets, and lack of subways, this is what we have gained
in our half century from 1858 to 1903, with another half century
34 Service We Get the Worst in the Wiorld
of similar experience, worse and more of it, waiting for us from
1903 to 1958.
This is Chicago’s situation. It is the worst traction situation
in the world, morally, and mechanically. It calls for, ﬁrst, im-
mediate relief; and, second, permanent solution.
The immediate relief must be part of the permanent solution,
unless much of the work is to be done over twice. The permanent
solution must give immediate relief if the just impatience of
the people is to be met. It would be folly to instal the under-
ground trolley or electric conduit in the business district for im-
mediate relief if our permanent plan demanded, as any permanent
plan must do, the Boston method of the removal of all street
cars from surface to subways. The most critical point in the
whole situation—one not yet mentioned—is that the companies
have deliberately produced the intolerable conditions under which
we suffer, for the purpose of forcing the people int5 renewal
of their franchises. They are calculating on the impatience of
the public as their best card. “The companies decline to in-
troduce improvements until the decision as to their future is made
in 1903,” so says Professor Zueblin (Z. 55).
Members of the Common Council, and City Government,
and citizens who favor a renewal of the control of our streets
by the present companies for a long or short term, with “ulti-
mate municipal ownership,” justify themselves by the declaration
that the public will not brook, and ought not to be asked to
brook, the delays and annoyances they declare inseparable from
the policy of refusing renewals. This is the position both of
the avowed enemies of municipal ownership, and of those who
would postpone it, merely.
PART 11 i
'5 The Way Out
CHAPTER IV
Chicago’s Plan: Our Expert’s Ideal System
In one feature of their traction evolution the people of Chi-
cago have far surpassed the people of any of the other great
cities. This promises that we shall excel them as much in the
rest of ogr development. In no other city have all the facts been
so thoroughly threshed out. No such exhibit as that we have
summarized in the preceding pages could have been made of the
history, management, results, and abuses of traction in any other
metropolis. Neither' London, Paris, New York, Berlin, had
made for it any comprehensive study of its city transit as a
whole, surface, underground, elevated, and steam, like that which
Chicago procured from its expert in the Arnold Report, as a
preliminary to a scientiﬁc andgpermanent system. No other great
city in the world possesses such powers as Chicago now has,
together with the other cities of Illinois under the Mueller law.
unless Judge Grosscup and the Supreme Court whittle them away.
in pursuance of his” views on page --. It is good to emphasize
all this at a time when so many inﬂuences are at work to preach
distrust of themselves to the people, and ﬁll them with a belief
that they are too incompetent and corrupt to use their govern-
ment as other communities are using theirs to promote the gen-
eral welfare. There is no other city in this country, or in Europe,
with such an opportunity, or such preparedness, as Chicago to
plan and execute a symmetrical, uniﬁed and complete system of
36 Our Expert’s Ideal System
transit, adequate to serve the realization of its purpose to become
the greatest city of the greatest country. This is the result of
the high intelligence of the people, and of much disinterested and
patriotic service by public ofﬁcials, and private citizens.
Unique in the history of municipal government anywhere, is
such resistance as the people of Chicago made to legislative out-
rage, unsuccessful in 1865, but partly victorious in 1897 and in
1903, defeating the Humphrey bill and saving the Mueller law.
The resentment of the people of Chicago and the state at the
enactment of the Allen law gave them a political memory that
lasted eighteen months, which is an unusual longevity for public
resentment. The Allen law was passed if: the summer of 1897.
In the fall of 1898, nearly every member of the Legislature who
had supported the Humphrey and Allen bills was denied a re-
nomination or defeated at the polls: and a Legislature was elected
which in 1899 repealed the Allen law. The Common Council of
Chicago refused to give the companies any ordinances under
the Allen law, which, however, under the doctrine of “ contract ”
may have passed valuable vested rights to the companies, as for
instance, with regard to motive power. There was an investi-
gation by a Special Committee of our Common Council in 1898,
consisting of John Maynard Harlan, William S. Jackson,
Adolphus W. Maltby, William T. Maypole, Carter H. Harri-
son, Mayor and Chairman Ex-ofﬁcio, with George E. Hooker as
Secretary of the Committee (Harlan 7). A street Railway
Commission was created by the Common Council on motion of
Alderman Foremank in December, 1899. Its members were:
Ald. Milton J. Foreman, Chairman, and Ald. William 5. Jack—
son, Ald. Ernst F. Herrmann, Ald. William F. Brennan, Ald.
Julius Goldzier, Ald. Walter J. Raymer, Ald. William Mavor,
with George C. Sikes as Secretary. ‘
There was a Special Committee on Local Transportation
in 1901, with the following members: Ald. Frank I. Bennett,
Chairman, and Ald. Julius Goldzier, Ald. William Mavor, Ald.
W. S. Jackson, Ald. W. F. Brennan, Ald. M. J. Foreman, Ald.
F. D. Connery, Ald. E. F. Herrmann, Ald. John Minwegen, Mayor
Carter H. Harrison, Ex-ofﬁcio, with George C. Sikes as Secretary.
This Committee prepared a valuable report which emphasized
the need of an expert. Out of this suggestion came the Arnold
*5
Our Expert’s Ideal System 37
Report, with its invaluable plan for the uniﬁcation of Chicago’s
transportation. Meanwhile the Civic Federation had taken up
the question and appointed as a Street Railway Franchise Com-
mittee: Josiah L. Lombard, Chairman, and William A. Giles,
Franklin H. Head, Edmund J. James, John W. Ela, Adolph
Nathan, James L. Houghteling, Edwin Burritt Smith, John H.
Gray, Sigmund Zeisler, Newton A. Partridge, Zina R. Carter.
This Committee constituted a Sub-Committee of Investigation
consisting of: William A. Giles, Chairman, with Adolph Nathan,
Josiah L. Lombard, Newton A. Partridge, Edwin Burritt Smith,
John H. Gray. This Sub-Committee employed Dr. Milo Roy
Maltbie, an eminent authority, Editor of Municipal Affairs, and
Edmund F. Bard, an expert accountant. I
For the ﬁrst time in the history of Chicago, or any other
city in this country, or anywhere else, so far as is known, the
street railway companies opened their books to expert examina-
tion. The Civic Federation accomplished what had been denied
to the Harlan Committee of the Common Council in 1898. “ For
the ﬁrst time, the inner workings of several large companies in
a large and important city were brought to view. For the ﬁrst .
time it was known exactly what it had cost to construct different
kinds of street railways, what allowance had been made for
depreciation, what franchises are worth, how they have been
capitalized, what methods have been adopted in ﬁnancing these
enterprises, etc.” (C. F. 7.)
Mayor Harrison has done good service. He was elected Mayor
in 1897, and his stand on the traction qu€stion has been the prin-
cipal factor in his two re~elections since. It was largely due to
the co-operation he gave the citizens that the Common Council
was prevented in 1897 and 1898 from passing the ordinances
sought by the companies under the Allen law.
But it was the spontaneous rally of numbers of citizens into
organizations to watch and prod the ofﬁcials that has done the
most to save Chicago and advance it to the leadership it holds
today in municipal democracy. Part of what was done by the
Civic Federation has already been told. The Municipal Voters’
League was formed in 1896. It organized the forces of public
opinion which demanded better government, into political action.
To its efforts is it clue that Chicago can claim to have made a
38 O'ar Expert’s Ideal System '
greater advance in the character of its aldermentand the enfnreer-Z
ment of Civil Service tests for ofﬁce, than any other American
city. It was at the instance of the League that the Mueller law
was drafted, and by its vigilance that the revolution-planned at
Springﬁeld to kill it was thwarted. Work like that ‘done in
the aldermanic elections by the Municipal Voters’ League, has i
been done for the Legislature by the Legislative Voters’ League.
Through another organization, “the Referendum League,” Chi—
cago was placed at the head of the procession of municipal prog-
ress in another way, that will be the safeguard and the pro-
motor of all else that has been done. A law drafted by Allen
Ripley Foote, and introduced by Representative Clayton E.
Crafts, was passed through the Legislature, called the Public
Opinion Law. By this law a given 'number of voters by peti-
tion, may require that questions of public policy, not more than
three in number at one election, shall be submitted to popular
vote. To hamstring the law, it was amended to require that one
quarter of all the voters in cities must petition for such a submis—
sion, while only one tenth were required elsewhere in the state.
But the Referendum League accomplished the apparently impos~
sible, and secured 104,000 signatures to a petition for a popular
vote at the election of 1902 on the questions of municipal owner-
ship and direct nomination of city ofﬁcers at primaries. The
result was startling. The vote polled for the election of alder-
men was about 200,000,—- about half of a full vote. On the
questions submitted by petition two thirds of the voters expressed
themselves with the foll'bwing result:
Ownership of street railways:
For, 142,826. Against, 27,998.
Ownership of lighting plants:
For, 139,999. Against, 21,364.
Direct nomination: '
For, 140,086. Against, 17,654.
(Sikes, 12, 13.)
The same agitation led to the incorporation of the referendum
in the Mueller law. This law does not go into effect in any
city, until adopted by a popular vote. After the law has been
accepted, no city shall undertake to operate a street railway ex-
Onr Expert’s Ideal System 39
cept after special authorization by the voters. No renewal of
a lease to any street car company, and no new lease for more
than ﬁve years shall go into effect, without ratiﬁcations by a
popular vote if demanded within sixty days by one tenth of the
voters. Street railways may be bought or built, and paid for by
the issue of city bonds or special certiﬁcates issued on the se-
curity Of the street railways, but the issue of either bonds or
certiﬁcates must be approved by the voters. The Mueller law con—
tains no provision that ordinances renewing the present franchises
shall be submitted to popular vote. But Mayor Harrison has
repeatedly pledged himself to sign no ordinance not so submitted.
and 'at least half the present Common Council were elected on
promises to give the people the referendum.
The newest organization‘of citizens to inﬂuence the traction
solution is one composed of representatives of the trades unions,
the Federation of Labor, the Federation of Teachers, the Ger-
man Turner Societies, the Single-Tax League, the Referendum
League, and other progressive bodies. This organization urges
“that the measures needed for municipalization of the street cars
be got under way at once. Its Committee have already been
before the Common Council to propose that as the ﬁrst step, the
Council submit the Mueller bill to popular vote for acceptance,
and notifying the Council and Mayor that the people remember
their pre~election pledges, that no franchise ordinance shall be-
come law until the people have had the opportunity to accept
or reject it. This organization is planning a thorough campaign
of education and agitation for municipal ownership, and is the
only one which has given itself the task of bringing to realiza-
tion the will of the people as expressed by a vote of more than
ﬁve to one last April. ‘
This is a notable record of public and private effort. It fully
justiﬁes the claim of leadership for Chicago among the munici—
palities of America. It does not justify the expectation of the
traction interests that the people are going to allow impatience
or temporary inconvenience or false leadership to betray them
into any half-reform.
A remarkable feature in the Chicago movement is the com-
ing forward of the people to play a direct part in the discussions
"and. decisions, and to participate themselves in the task of govern-
40 Our Ewpert’s Ideal System
ment, as a Third House, as the principals supervising the repre—
sentatives,—- the legitimate lobby.
The people of Chicago have intuitively comprehended what
is being pointed out by the latest authorities on representative
institutions. The vast affairs of modern government can not be
managed by representatives alone. There must be auxiliary
organizations of the people for legislation and administration—
to help prepare the laws, and help execute them. Democracy
succeeds, where, and only where, the people never allow their
hired men, from aldermen to judges, to suppose themselves to be
the government. As the result of all this, Chicago approaches
the solution of its transit problems, with an improved Common
Council, pledged with the Mayor to abide by the decision of the
people,'with powers of purchasing, condemning, building, operat-
ing street car lines, with almost full information never before
accessible, with a public opinion, ready to act, with powerful as-
sociations of citizens organized to enforce that public opinion,
and with an expert program which will give“ Chicago a traction
system combining all the facilities known to the art of transpor—
tation, superior to that of any other city, and costing less than
the system we have has already cost us.
What is that program?
One city, one fare. “ No one thing that could be done for
Chicago would tend more to enhance its growth and prestige,”
says Mr. Arnold (B. A. 114).
Complete uniﬁcation of management.
Routes (surface, subway and elevated) to run through.the
city.
The down-town terminals and loops to become parts of the
through routes.
New lines to serve new or ill-served districts, and to connect
now disconnected parts of the system (B. A. 52).
All detached lines on any street to be united'.
Subways—three, north and south; three, western; one, con-
necting with all depots and with the other subways,—- all with
elevators and galleries for wires, pipes, tubes, etc. ‘
Electric power everywhere. _
The underground conduit, at least in the business district and
on all densely populated streets.
Our Expert’s Ideal System 41
Removal. of all tracks (except a surface loop between the
depots to subways) from the surface in the center of the city.
Disuse of all except the grooved rails.
More cars, and of modern ﬁreproof construction.
Utilization of the tunnels for subway purposes (B. A. 43).
This system will transport in the best style of the transporta-
tion art, the population of a Chicago three times as large as ours.
That is the best and the best is what Chicago wants. Mr.
Arnold shows that such a system is practical, ﬁnancially and me-
chanically. With rapid transit of that sort, Chicago would make
a great stride forward in its rivalry with New York. The gain
to business, real estate, health, convenience, pleasure, and a bet-
ter and purer social life could not easily be estimated.
Between Chicago and such a system stands only the act
of 1865.

CHAPTER V
Private Enterprise Rejected
“ Complete uniﬁcation,” Expert Arnold, speaking from the
engineering and mechanical side, declares to be “a condition
precedent to any really satisfactory and lasting solution.” (B.
A. 26.) Complete uniﬁcation, the people of Chicago likewise
demand, speaking from the social and political side. There are
two kinds of “complete uniﬁcation,” one, private; the other,
public. The public of Chicago by a vote of more than 5 to I
have decided in favor of public uniﬁcation. They want municipal
ownership; not “ academic,” not “platonic ” municipal owner~
ship, but the real thing. *
The people of Chicago have rejected the idea of “regulation.”*
Regulation is a failure everywhere. Monopoly grows too rich,
too concentrated, too keen, too unscrupulous, to be regulated.
*The word regulation in these pages is not used in its technical sense.
Wk
42 Private Enterprise Rejected
The classic instance of regulation is gas in Paris.’ But there
gas costs three or ﬁve times as much as in the municipalities
of England and America which make their own gas. Thecontrast
between the license of $50 a car which the city imposed on our
companies, and the $9.20 a car which they actually pay, illus-
trates the possibilities of traction regulation in Chicago.
Under “ regulation,” the traction interests of New York have
been shamefully betrayed. Mr. R. R. Bowker, a corporation
man, for years Director and Vice-President of the Edison Com-
pany, tells us in the Atlantic Monthly, October, 1901, that “the
great public utility corporations of New York have passed into
the hands of those whose sympathies and interests are in afﬁlia-
tion with Tammany.” (The “Trust or the Town,” by Robert
Donald, in C ontemporary Review, July, 1903.)
In New York, the private proﬁt-seeking interests created in
the rapid transit tunnel, have been devouring the public inter-
ests at'every stage of the work,-— in letting the contracts and
in the construction and will continue to do so in the operation.
They have secured by “contract ” the right to charge 5 cents
for ﬁfty years, while the people of Paris are already riding for
3 cents in their tube, and the people of London for 4 cents. The
Rapid Transit Commission of New York established to “regu-
_ late” the companies is “ regulated ” by them. Only three years
ago it asked the NevwYork Legislature for legal power to hand
over the traction interests of the city to the Metropolitan mo-
nopoly. This astounding plan was favored by nearly the entire
press, also “ regulated” reversely, and it was defeated only by
the patriotic and united opposition of the Citizens’ Union and
the Federation of Labor (M. A. 516).
Under “ regulation,” in Boston, where regulation would suc-
ceed if anywhere, the capitalization of the street car companies
is at least 50 per cent. above their actual cost, and the fare is
5 cents for the shortest distances, while in Blackburn, England,
there are half cent fares (M. A. 600), and in London last year
50,000,000 passengers were* carried for one cent. The traction
interests of New York which rule Boston devised the elevated
system of Boston in part to absorb the excess proﬁts of the sur-
face lines (M. A. 728). These high proﬁts are got out of the
people of Boston partly by the excessive fare, partly out of the
§
ﬁt"
45
Private Enterprise Rejected 43
betrayal to private uses of the so-called municipal subways of
Boston. The companies have secured a private monopoly of
these public ways, built out' of public funds, even to the tubes
for telephones, telegraph wires and other public utilities. As
this monopoly was created by the use of public money borrowed
at a lower rate than the companies could have borrowed, the
companies get the use of this superiority of public credit for
twenty years, and pay no compensation for it. If they had built
the subways, they wobld have had to buy, at high prices, the
land for their exits and entrances, of which there are nine in
the Boston Common and the Public Garden. The “ regulating ”
city was persuaded to profane for private proﬁt one of the most
sacred pieces of public land in An'mrica. As the subways were
built by the city, the companies got the use of large slices of the
Common and the Public Garden,-- real estate, priceless in value
and sacred associations, for twenty years without paying a cent
for it. The companies pay a rent for the subways, but this in-
cludes'no proper compensation to the people for the use of their
credit for' the monopoly they have given, or for the land they
have sacriﬁced. This is “ regulation ” in the Hub.
Toronto owns its traction plant, and has leased it for opera~
tion under “ regulation,” to a private company. The agreement
made with the company was “the best agreement ” that any
municipality had made with any company. 50 Mayor aUrquhart
told the Municipal Ownership Convention in New York last F eb-
ruary. Fares go as low as 2% cents for school children, and
compensation to the city ranges from eight to twenty per cent.
'according to the earnings. But this “ best agreement” proved
to full of holes. The men receiving the franchise issued $6,-
000,000 stock to themselves for $600,000, and on this $600,000
they are today paying themselves dividends of $300,000 a year
(M. A. 796—798). The other fruits of regulation in Toronto
have been no better. The Mayor says: “ The service given by the
company has not been as good service as the Council and citizens
have demanded; and the chief difficulty we have found under the
agreement is the enforcement of the rights of the city by com-
pelling a proper observance of the terms of the contract.” (M.
A. 798.) Our Street Railway Commission of 1900 repeats this
answer made to Professor James of the University of Chicago,
44 Private Enterprise Rejected
now President of the North Western University, by the Mayor
of Cologne, Germany, when asked why that city was taking
municipal possession of its street cars. “We are taking over
the tramways because it was found impossible thoroughly to
safeguard the public interest under any contract with a private
corporation that could be drawn.” (S. R. C. 21.)
In the N ews-T rtbime of May 6, 1900, Mr. Charles T. Yerkes
said: “ No monarch of the civilized world has such power as
the ownership of such “public utilities as railroads and telegraphs
confers upon the owners, and if we add to this, ownership of
street railways, gas, electric-light and telephone companies, we
have a country of monarchs indeed!” (M. A. 825.) The
American method of regulating monarchs of the old school will
have to be extended to these monarchs of the new school.

CHAPTER VI
Municipal Ownership the Only Way
The vote of Chicago ﬁve to one for municipal ownership of
the street car lines was a trumpet call for leaders who will lead. »
The people are ahead of their professional guides, their ofﬁcials
and newspapers. They know the facts better. Wherever it has
been tried, municipal ownership has proved itself better than
private ownership in the same place. No community goes back
from municipal ownership to private ownership --except Phila-
delphia with its gas works. “ In view of the peculiar character-
istics of the citizenship of this city, however, it is unsafe to gen-
eralize from its experience.” (M. A. 531.) So said the late
Charles Waldo Haskins, Dean of the New York University
School of Commerce, Accounts and Finance and Prof. Joseph
French johnson, of the New York University to the New York
Municipal Ownership the Only Way 45
Municipal Ownership Convention, though they are not in favor
of municipal ownership. The only ﬁnancial beneﬁt Philadelphia
is promised by the company to which she corruptly surrendered
her gas works is a progressive decrease in the price of its gas,
reaching twenty-ﬁve cents in ﬁfteen years. This Philadelphia
could have secured at once under municipal ownership, if she /
had had honest government, is shown by Prof. E. W. Bemis,
the leading American authority on gas, now Superintendent of
the Cleveland Water Works. The private ownership of its
public utilities has had much to do with making Philadelphia so
corrupt. “The relations of Philadelphia with the private com—
panies are scandalous,” says Professor Bemis (M. A. 836).
The genealogy of these scandals runs straight back to the de-
bauching of Pennsylvania politics by the Pennsylvania Railroad.
The advocates of public ownership need take no defensive
tone. It is private ownership that needs apologists. Public own-
ership of public utilities is proving itself the cheaper, better, more
progressive, purer. In the two hundred and ﬁfty-one municipal
gas plants of Englandethe average price charged is eighty~two
cents. The average price of the private companies is ninety-six
cents, and the municipal candle power averages 1850 against
the I638 of the private supply. “Therefore, the gas supplied
by the municipalities is 14%, per cent. cheaper and twelve per
cent. richer than that supplied by the companies.” (M. A. 837.)
At Widnes, in Lancashire, with 50,000 people, “where they
have always aimed at selling gas at the lowest possible price and
no attempt has been made to secure a proﬁt, they supply gas
free to the public lamps, sell gas to small consumers at I shilling
4 pence, (32 cents) per thousand cubic feet, and to large con-
sumers at I shilling (24 cents), the average illuminating power
being I8 candles.” A. 838.) The comparisons between
private and public electricity in England are in favor of the
public. In London, which is an aggregation of municipalities
the private electric plants cost nearly one ﬁfth more (19.2 per
cent.), charged nearly one third more (32 per cent. per unit),
and had a cost of production nearly one tenth greater (8.8 per
cent.), than the municipal plants. The inferiority of the private
to the public plants in the other cities of Great Britain was still
more notable. They cost more than a quarter more, (25.5 per
46 Municipal Ownership the Only ‘ Way
cent.) charged nearly one half more (41.4 per cent.), and their
cost of production was one third higher (33.6 per cent.). (Elec-
trical Engineer of Oct. 17, 1902.)
Municipal water and electric plants show similar superiority
over private plants, here as well as abroad. It was the success
of municipal enterprises in these things, and the inefﬁciency
of private management of the street car lines that led the English
cities into municipal traction. Now “ almost all the large English
cities not only own but operate their own tramways. The Lon-
don County Council is now operating 72% miles of lines; it is
building, or has prepared plans for constructing, over too miles
of lines; it owns and leases 42 miles north of the Thames. Glas-
gow owns and operates 103% miles within the city and in the
suburbs. Liverpool has 90 miles. Manchester is building a sys-
tem. Bradford, Leeds, Huddersﬁeld, Shefﬁeld, Newcastle, Dun-
dee, Aberdeen and others now own and operate municipal tram-
ways (M. A. 589).
The municipalities are more enterprising than private “ en-
terprise.” It was a municipality—Blackpool—that ﬁrst intro—
duced the underground trolley into England. The people of
London have installed the underground trolley on the public lines,
which no private company had yet introduced. They use mu-
nicipal trains to carry the people to municipal land. At Tooting,
only ﬁve and a half miles from the House of Commons, the
people of London have purchased a large estate on which to
build houses for the people, and they have built an underground
trolley out to that quarter” The municipal ownership of land
and the municipal ownership of transportation co-operate for the
solution of the problems of poverty, misery and vice, which have
been produced by the private ownership of land and transpor-
tation. Unscientiﬁc thinkers compare some of the American
private traction with some of the public traction abroad, and ask
triumphantly if the American people would exchange. The
scientiﬁc comparison is between private enterprise and public in
the same place, under the same conditions,-- between the private
traction in London and public traction, between traction in Glas-
gow before the change to municipal ownership, and afterward.
This is the true test, and that public ownership stands it, is shown
by the fact that no town, no state, no nation returns to private
:-
Mnnicipal Ownership the Only Way 47
ownership of gas, water, electricity, railroads, anything, after mu-
_ nicipalization or nationalization-—-always excepting Philadelphia.
English experience in municipal traction is a precedent Amer-
icans insist upon as pertinent to our case. The English had the
same problem as we— inefﬁcient private enterprise, coupled with
great municipal corruption. In his “ Evolution of Industrial So~
ciety,” just issuedL Prof. Richard T. Ely, an opponent of social-
ism, points out that the government of English cities ﬁfty years
ago was probably as bad as ours, but has continuously improved
along with the continuous expansion of municipal activity. He
asks: “ Is it unnatural to suppose that there may be a connection
between these two movements?”
In Chicago municipal ownership is no novelty, and its results
have been and are far better than those of private enterprise.
Say all that can be said against the spoils system in the water
works. Even if under the Civil Service system it is not yet wholly
a thing of the past, it is passing, and at its worst, there was
never any issue of $117,000,000 of securities against $25,000,000
worth bf plant, as in the private street car lines. No construc—
tion ring charged $16,000,000 for $7,000,000 of work, giving it-
self $9,000,000 proﬁts. Chicago has a municipal electric plant.
It has built it and paid for it, has furnished itself light. and still
has spent for ﬁfteen years $132,212 less, than it would have had
to pay for light to the private companies. Had there been no
municipal plant the private charges would have been much higher,
so that the saving is still larger. The city’s saving is double.
(1) It has saved this money; (2) and acquired a plant of its
own. If we had'hired our public light, we would have spent, as
a minimum, this $132,212 more and would have had nothing to
show for it. But we have to show a plant worth as private plants
are capitalized, $3,750,000.
Here is the comparison betwen private and municipal own-
ership of our electric Plant:
UNDER PRIVATE OWNERSHIP.
Chicago would have spent . . . . . . . . . . . . . . . ..$3,535,875
Chicago would have received ( in light) . . . . . 3,535,875
Bonus from private ownership, . . . . . . . . . .o
48 Municipal Ownership the Only Way
10
UNDER MUNICIPAL OWNERSHIP.
Chicago has spent . . . . . . . . . . . . . . . . . . . . . . ..$3,400,663
Chicago has received its light, worth . . . . . . . $3,535,875
Chicago has its plant, worth . . . . . . . . . . . . .. 3,750,000
7,285,875
Chicago has spent, . . . . . . . . . . . . . . . . . . . . . . ..3,4oo,663
Bonus from municipal ownership, . . . . . . . . .. 3,885,212
(M. A. 819, 820.)
These ﬁgures are all taken from the statement made before
the Municipal Ownership Convention in New York this year by
the City Electrician of Chicago.
The similar experience of Detroit was given at this conven-
tion by its ofﬁcial. “ In the next three years the city will have
both the service and the plant at no greater cost than wogld have
been the service alone, had it been done by a private company.”
(M. A. 823.) Light is better and the conditions of labor are
better: “ In ten years the municipal plant will have saved Detroit
enough to retire its entire bonded debt.” (M. A. 834.)
In the debate on these results before the Municipal Ownership
Convention in New York this year, the representative who spoke
for the private companies rose to break their force. He declared,
referring to the Chicago plant, that an essential fact had been
omitted. “Bonds have been issued to pay for the plant; what is
going to happen when these bonds become due?” To which
City Electrician Ellicott had the felicity to make this reply: “ The
fact is that no bonds were issued by the city.” (M. A. 818.)
Mr. Ellicott delivered this challenge to the private companies:
“Those who represent private electric—lighting interests dare
not set a date when they will produce in public a true statement
of their operating costs and ﬁxed charges, as carried by them,
to be used for the purpose of comparison with the actual
costs of municipal lighting plants, and the ﬁxed charges, it is
claimed, should be made against them. If the representatives of
private lighting interests are sincere and honest in their con-
tentions that municipal ownership of electric lighting systems
Municipal Ownership the Only Way 49
for street lighting purposes is a failure, they will hasten to accept
this challenge.” (M. A. 820.)
Herbert Spencer and Sir john Lubbock (now Lord Avebury)
joined recently with a number of other members of the Industrial
Freedom League in a memorial to the Bank of England, protest-
ing against the investments being made by English municipalities
in public utilities. Their statements of facts and ﬁgures were
immediately shown to be misstatements, and these eminent phi-
losophers and savants had to undergo the mortiﬁcation of having
a public disclaimer made of all responsibility for the assertions
by which they had sought to inﬂuence public opinion and the
money market in favor of private monopoly and against the
people. In the debates as well as in the experiences, municipal
ownership has the winning side.

CHAPTER VII
What Hindersi; The Lion in the Path
“ Corruption” is the characteristic of the private ownership
of public utilities, at its beginning and its end. It is immoral
to give to private individuals for private proﬁt the property an
powers held by all for the good of all. This parent immoral}
breeds immoralities at every point, corruption within the COl
porations, and corruption of the social life wherever they ﬁn
any social virtue interfering with their dividends. There is son
corruption wherever there is human nature. There will be son“
corruption in the civil service of Municipal Ownership. But i.
will be the corruption of small men, and far more manageable
than the corruption which comes from the “monarchs” Mr.
Yerkes speaks of. The more corruption there is in our American
government, city or national, the; more imperative is it that we
start at once away from the policy which has produced this cor—
50 What Binders? The Lion in the "Path
ruption. The corruption in our Post Ofﬁce, only the surface of
which has been scratched, and the corruption in other depart-
ments of the government, which has not been even scratched,
can be traced, ninety-nine hundredths of it, to the funda-
mental immortality of doing by contract with a private proﬁt
to private individuals, that which ought to be done by the
public for itself, with no proﬁt to any one. Precisely as
the government manufactures its uniforms,_its gloves, its postal
cards, its rural delivery boxes, for itself, will this corruption
disappear. Had the city of Chicago been protected in its rights
by our Legislature, as English municipalities have been protected
by their laws, its program now would be simple. The datew of
expiring of the franchises, 1903, having arrived, it would take
possession of the entire system in the three divisions, paying for
it, only the cold value of the equipment, about $25,000,000. It
would be speciﬁcally relieved by the express terms of the laws
and the license granted to the companies, from ,paying them any
compensation for earning power, or for franchises, or for good
will, or any “ vested rights,” in the streets or in public functions.
The only formalities would be the giving of notice to the com-
panies that the city had decided to exercise its right of taking
possession. There would have to be no negotiation with the com-
panies; no litigation. There would be no judges to forbid the
city from exercising its functions, nor to threaten the community“
with the use of the army if necessary.
This difference in procedure and the difference between $25,-
000,000 and the value of the $117,000,000 of traction stocks and
bonds plus the extortionate dividends they have received, plus
the value of the ﬁfty years of monopoly still remaining under the”
99-years’ act, plus the possible value of the “ any other motive
power” grant of the Allen law, is the price we must pay for
having been betrayed by the Legislature in 1865 and 1897, and
by the Common Council and city law ofﬁcers in the extensions
of 1883, and practically all the street-car ordinances enacted.
Much more than a hundred millions is the ﬁne we pay for thus
having been betrayed, and for having allowed ourselves to be
betrayed.
Between Chicago and the realization of such “a complete
and ideal” supply of its greatest need, stand the men now in
What Hinders? The Lion in the Path 51
' by the existing companies, without their consent.
possession of our streets, the millionaires of Chicago, Philadel-
phia, New York ‘and Boston, a combination who are gradually
bringing into one control all the public utilities of all the great
cities. See the article of R. R. Bowker, himself a public utility
private corporation man,-- but _an honest one -- in the Atlantic
M cnthly for October, 1901. And see also the articles of Robert
Donald in the Contemporary Review for April, May and july,
1903. These men standing between Chicago and Municipal
Ownership are solidly entrenched behind the 99—years’ act.
Judge Grosscup declares the 99-years’ act to be vital to the
rights of the company’s “fundamental,” and he declares it
“valid ” and “ constitutional.” He says, “ The \constitutional
points — so far as I have been able to dig any out —- do not merit
space for statement, much less for discussion. Upon that phase
of the matter my judgment is at rest.” (G. 4.) Under this view
he holds that the power of the city over the street car companies
remains “ a subservient power ” to that of the companies over the
city, under the grant. From this will ﬂow by easy judicial inter-
pretation when the time comes, decisions that city ordinances
demanding better facilities or increasing licenses, and any levy
of higher taxation is ﬁnancially oppressive and therefore “un-
constitutional.” For the only power of the city “ is to promote
the use of the grant. It cannot be made a means to defeat the
grant.” (G. 4.) To put upon the companies license fees, or taxes,
or conditions they could not afford to pay would bankrupt them,
and so defeat the grant. The city has no right to change the
fare. This follows inevitably. The fare has been ﬁxed “by the
constitution ” at 5 cents, and at 5 cents it must remain until
1958. It is 5 cents not only on the lines mentioned by the law
of 1865, but on all the lines which have been put into the posses-
sion of the companies since, by the .Common Council. All the
other powers granted by the act of 1865 are affirmed by this ﬁnd-
ing, and there are several most obnoxious ones pointed out by
Governor Oglesby’s veto. For instance, the Council can not
give a competing company any right of way or streets occupied
Neither could
the city establish lines of its own, for that would defeat the grant.
Not only. the grants made by Chicago before 1865 are ex—
tended to 1958, but all the grants made since. The constitution
52 What Hinders? The Lion in the Path
of the state and the city of Chicago gave and the companies
accepted 20-years’ terms, but this “ contract ” extends them all
to 1958. The “ contract ” is a growing contract, the “grant ” is
a growing grant. The irrepealable right to charge 5 cents, to
hold franchises until 1958, to veto cempetition, to be independent
of -city control, all that was granted concerning the streets held
in 1865 is extended to all the streets the companies have entered
since by this doctrine of the “growing grant,” to WhiCl. Judge
Grosscup ascribes “much force.”
There is more than a hint that the companies have more
right to the thirty miles of track'they have built without grants
than the city has. “The right of occupancy,” the Judge says;
is not in this view given by the ordinances of the city, but by
the law of 1865. The only right the city has is “ that of prescrib-
ing the manner of such occupancy.” (G. 5.) There is worse still
in the “law ” of 1865 for Chicago if it refuses to “ compromise.”
“ Municipal ownership may be impossible.” (G. 6.) It is ques-
tionable if the city has any effective power of supervision. “ The
surrender “is desirable,” Judge Grosscup says, “to give the city
the warning hand.” (G. 7.) “It is doubtful” if the city has the
power of eminent domain. “ It is doubtful” if the Mueller law
“even purports to givew such power” (G. 7.), although it says
it does. “ It is doubtful” if the city could now constitutionally
obtain even by the act of the Legislature the right to occupy by
eminent domain the streets occupied by the companies. They
hold these streets by the “contract” of 1865, and the “consti-
tution ” makes that contract sacred.
The same reasoning of course would hold as to all rights that
became “ vested ” under the Allen law of 1897 like the right to
“ all other power.” They would be “ contracts ” too, though that
law, like the law of 1865, has been repealed. It is lucky the Legis-
lature of 1865 did not make a “ contract ” with these street-car
men binding every man, woman and child in Chicago to pay a
dollar a ride. Judge Grosscup’s reasoning would support that
as easily as this. Judge Grosscup also intimates that it would be
practicable and proper for him to “ require the city to intervene
to test the validity and scope of the act,” in the courts, that is
(G. 2). He has the right and the power to compel the city of,
Chicago, at such time as he, not it, chooses, to submit its case to
I \ 4"
What “Binders? The Lion in the Path 53
him. For this, too, of course, he could “ command all the re-
sources of the Federal Government ” military and naval. He
might need them. ' \
In a letter of advice to the receivers appointed by him to take
_charge of the Union Traction lines, Judge Grosscup declares
that there is “much force in the view ” that the 99-year act ex-
tended to 99 years, not only the grants already made but all the
grants made since, and all the grants yet to be made! For hun-
dreds of years the jurisconsults of the world for elementary rea-
sons of social protection have been fortifying the doctrine that
grants are to be construed strictly, and if there is any doubt, the
advantage of it is to be given to the people. But Judge Gross-
cup gives us a new kind of grant,-- one that grows with the
appetite of the grantee,——a growing grant. “ This brings me to
the streets subsequently occupied by the companies. There is
much force in the view that the Legislature had in mind in enact-
ing the grants a street railway system adequate not only to the
then present but to the future needs of the city; that the natural
growth of the city was foreseen and a corresponding expansion of
railway facilities forestalled ; that the grants were meant to cover
the branches and twigs as well as the trunks of a growing sys-
tem.” (G. 5.)
Under the interpretation, the street car companies concerned
have'a tenure until 1958, on every street which they now occupy,
despite the prohibition in the act of 1874, and in the Charter of
Chicago of any grants for more than 20 years, and despite the
explicit contracts made by the city and the companies for 20
years. All the 20—years’ limitations in the grants themselves have
been mere waste of printers’ ink. Streets not yet in existence,
or in now outlying towns not yet annexed, or not yet built, here-
after granted to these companies are theirs until 1958, no matter
what the people may desire or the ordinances may say. The
Judge tells us that the extension is as good for all future grants as
for all past ones. They “are none the less effective as vested
grants when the new streets are occupied.” Even this is not all,
nor even the worst, that is threatened against the fundamental
rights of this community. Judge Grosscup elaborates three pos-
sibilities under the 99-years’ act still more portentous. These are
that municipal ownership may be impossible, that the city can
54 What Hinders? The Lion in the *Path e
have no right of eminent domain over the streets, of the past,
present or future, and that it can not even regulate the service.
It is true that after heralding them as possessing “ much force,”
the Judge slows down his elucidation with: “ I do not now mean
to commit my judgment,” “may be,” “it is at least doubtful,”
and explains that he speaks as conservator and not as Judge.
But Conservator Grosscup made this interpretation of the law
the basis of important orders to the receivers, and used it in an
effort to draw the city into negotiations for compromise, which
Mayor Harrison with equal judgment and dignity refused to
listen to. What Conservator Grosscup thus sponsorEd, Judge
Grosscup is likely to sponsor, when we and these companies he is
conserving come before him for the judicial determination of
our rights.

CHAPTER VIII
The Lion’s Compromise: Surrender Offered
for Renewal
These traction men are seemingly negotiating for a compro-
mise. They offer to surrender their claims under the 99-years’
act in exchange for new grants— “an adjustment” Conservator
Grosscup styles it,-- which he says “fortunately is at hand.” “A
full surrender by the companies of title under the legislative
grant.” “ No legal difﬁculty,” he says, “need entangle such an
arrangement.” (G. 6, 7.) The law is sometimes very obliging.
“The companies are at liberty ” to make such an arrangement.
Further the Judge has the power to compel the companies he is
“ conserving ” to accept such an arrangement. “ I am ready,” he
declares, “to exercise that power.” (G. 5.)
By this compromise the companies are to give up everything.
They are to make “ a full surrender ” of all their rights under
Surrender Oﬂered for Renewal 05
’
the 99-years’ act, and of course the Allen law. The surrender is
to take effect immediately, The companies will not even delay
it until the amount of compensation due them is determined.
That can be ﬁxed later—any time. Corporations are some-
times so obliging. There need be no unseemly squabble between
the city and the companies, as to the amount of the compensation
to be paid the companies, for what they give up. That can be
left to the Supreme Court of the United States. (W. W. G. 74,
G. 5, 6, 7.) r
The companies will be entirely content with what the court
gives them. This determination by the Supreme Court need not
drag through the tedious years of ordinary litigation. “A mode
of intervention’ could be devised,” says Judge or Conservator
Grosscup, “that would get the quick judgment of this court
in a formal order, which appealable to the Supreme Court, could
be heard. by that Court in coming autumn.” So expeditious is
the law—sometimes!
Most considerate of all, there need be no payment at all of
the damages, when so determined by the Supreme Court, no
matter how many millions the Court may award as due to the
companies, as the value of their remaining half century of monop-
oly under the 99-years’ law.
For all of which what do the companies expect to get? Only
a renewal of their franchises, followed by another, and so on ad
inﬁnitum. The language of Conservator Grosscup is clear: “ Con-
fronted with certain loss of the use of the streets, unless good
service is given, it is almost certain that the companies will fulﬁl
their obligations to the public, and thus eafn a renewal of the
leases.” (G. 8.)
Their promised plan of traction sounds as well as that sketched
by the city’s expert Mr. Arnold. “ A settlement,” says Conserva-
tor Grosscup, “that will embody in one system all the lines to be
operated, thus insuring universal transfers, modern equipment
and the highest character of service.” (W. W. G. 74.)
What is the true inwardness of this scheme?
In return for the surrender of their monopoly of our streets,
they are to receive back the monopoly of our streets --which
they “ will earn.” But they will get it back freed from all cloud—
ing complications of vlitigation about the 99-years’ act and the
\
56 Surrender Oﬂ’ered for Renewal
other acts. They will get it back with all awkward questions
cleared away—such as, their right to use other motive power
than horses ; their title to the 30 miles of street the Arnold Report
shows them to be now occupying without any grants from the'
city. They will get many other neat plums, perhaps -the ex-
clusive use of “ municipal ” subways to be built by the city, cun-
ningly hidden by their lawyers in the phraseology of the new
grants. This, too, would perhaps be another of the “growing
grants” judge Grosscup has discovered, and would include all
future streets, all future mechanical discoveries, all new usesxof
traction. In exchange for a grant honeycombed with fraud, un—
constitutionality, and illegality, they will get a new one, clean
and whole. Give them a new good monopoly, and they will
surrender the old bad one. “But,” we will be told, “this is
not a monopoly, because their plan contemplates only renewal
after renewal which the companies are to ‘ earn ’.” Here comes
in the shrewdest stroke of the whole.
As long as the companies are left in possession, the compen-
sation from the city to the companies found due by the Supreme
C Ollt’l‘ need not be paid. A perpetual suspension of this claim of
theirs against the city is the price they will pay us for a perpetual
monojwly.
Here again the language of €onservator Grosscup is
unmistakable: “ There would be no payment adjudged until after
judicial determination of the validity and scope of the legislative
grants,”. . . “the chances are many to few, that the obligation ”
--of the city to pay the compensation for the surrender of the
99-years’ act—“ will never mature; for, confronted with cer-
tain loss of the use of the streets, unless good service is given,
it is almost certain that the companies will fulﬁl their obligations
to the public, and thus earn a renewal of the leases.” (G. 7, 8.)
This contemplated renewal of franchises with the surren-
der of all rights of the companies under the 99-years’ act, is now
being negotiated by the Mayor and the City Council. When ten
years from now under the option for municipal ownership (put in
to please the people), the city notifies the companies that it will
take over the lines, they will reply by handing in their little
bill of “compensation” awarded by the Supreme Court. If
waiving this option, the city waits until their 20 years have ex-
w-
Surrender Oﬂ'ered for Renewal 57
pired, and then decides to give the franchises to some other
combination of capitalists—if there is more than one group of
capitalists surviving in the United States by that time, the same
little bill must ﬁrst be paid. “The obligation,” in Conservator
Grosscup’s language, has “ matured.” How much will that little
bill be?
In seven years, according to the Report of the Common Coun-
cil of 1898, the monopoly of the streets produced in excess of
a return of 6 per cent. on the investment, between $56,148,411
and $62,312,595, and this takes no account of the proﬁts for in-
siders in “ construction contracts ” and other frauds on the public
and stockholders. These were the excess proﬁts for only seven
years. What is the value of such a property for the 55 years
between 1903 and 1958?
The plan of settlement now being promoted in court, in the
Common Council, before public opinion, with every ability and
resource, legal and other, that the richest men in the United
States can command, has up its sleeve a ﬁne of many millions -
no one can tell now how many millions—to be levied instantly
upon the city whenever it proposes municipal ownership, or even
attempts a future refusal of renewal to these men.
Who sups with the devil needs have a long spoon. If any
further proof were needed of the incompatibility of the coexist-
ence of competing public and private interests in traction, of the
dangers of negotiating with these heroes of 1865, of the impos-
sibility of “regulation,” and of the imperative need of municipal
ownership, it is supplied by the character of this “ compromise ”
now being urged on the innocent people of Chicago.
Even so disinterested and experienced a person as Judge
Grosscup thinks that this would be an admirable “ adjustment.”
“For my own part, I cannot see why this is not a simple and
effective way out of present complications. It gives to the city
everything that the city really needs from waiver; it meets fully
the substantial reason for a waiver; it conﬁscates no rights; it is
just; and it saves the honor of the city wherein we dwell.” (G. 7.)
Off the bench Judge Grogscup has been making contributions
to the discussion of the trust question of which the street car
question is a large part. He has delivered addresses, and pub-
lished a pamphlet advocating the “peopleization of the trusts.”
I
58 Surrender Oﬁ'ered for Renewal
I
/
That is their popularization by having the sale of their securities
in small lots among the people carefully fostered by the ﬁnanciers.
For centuries the utterances of all the great social minds have
been against monopoly. Law especially has built up an impreg—
nable demonstration of the evils of it and of its unconstitution-
ality and illegality. No ﬁrst class, or even second class juriscon-
sult can be quoted in favor of it. \
Judge Grosscup breaks this record by his proposal to strengthen
the monopolies, everywhere fastening themselves on the neces-
saries of life, by making the small capitalists accomplices of the
large capitalists in these depredations. The Chicago public can
not give too niuch consideration to the character, the political
economy, and the conceptions of public policy of Judge Grosscup.
He holds in his hands more power in this crisis over the destines
of this city in the twentieth century than any other gnan. He
is in the line of promotion to the Supreme Court of the United
States. ‘
The Judge says nothing about saving the “honor” of the
City wherein we dwell from the men who have been dishonoring
city and* state from the time they corrupted the Legislature in
1865 until they sought by “brute force ” to defeat the Mueller
law in 1903. But when the people sustained by eminent lawyers,
judges and public ofﬁcials, question the constitutionality and va-
lidity of the cruel wrong done them, ..Judge Grosscup ﬁnds the
honor of the city in need of being saved. No individual or organ—
ization, ofﬁcial or private in Chicago; has brought into the contro-
versy any other considerations or proposed any other remedies
than are used every day by the courts, or by the legislative or
executive agents of the people. Our courts are continually setting
aside laws, elections, contracts, and transferring property from
one to another on charges of fraud, violence, duress, improper ad-
vantage, or for reasons of public policy.
The people of Chicago raise these questions about an alleged
“ contract " which they believe is no contract, and which threatens
them with social and moral evils for more than half the twentieth
century, far more serious than the two or three hundred million
dollars it will take from them. Judge Grosscup replies in two
ways, both extraordinary. He holds without qualiﬁcation that
the “constitutional points do not merit space for statement much
Surrender Offered for Renewal 59
less for discussion.” (G. 4.) He insinuates that those who are
asking a remedy of the law which boasts that it has a remedy
for every; wrong, are seeking to “subject, nearly forty years after
the event, innocent investors to “ revenge and retribution.” (W.
W. G. 73.) He says that it is “ nearly forty years after the
event,” when the “ event ”-— the creation of a century of monop-
oly—has still nearly sixty years to endure. He insults Chicago
by deprecating “ repudiation ” and “ brute force.” Of the “ brute
force ” and the “ repudiation ” which have been actually resorted
to by the tractionaires “and by them only -- he says nothing.
Not a word about the “ brute force ” by which streets have been
seized without grants, 30 miles of them. Not a word about the ,
repudiation of the ONE CITY ONE FARE obligation of the ﬁrst
charter, and of taxes and of other countless obligations since.
The men prominent in traction were fortunate when Judge
Grosscup’s appointment to the Federal bench came in advance of
the appearance there of these questions vital to them. They have
there a judge whose political economy and legal philosophy are
in sympathy with their needs, and out of sympathy with the
needs of the people, and, also out of harmony with the newer in—
terpretations of law by broader jurists. His declarations on this
traction issue are not isolated or exceptional indications of Judge
Grosscup’s attitiide.
In 1897 the Chicago Teachers’ Federation was formed. Ow—
ing to nonpayment of salaries due to lack of funds in the school
treasury, in 1900 the Federation made a search for unemployed
sources of revenue. They discovered an old law of 1873 and a
rule in accordance therewith of the State Board of Equalization
providing for the taxation of franchises of corporations (191 Ill..
Rep. 532—543). Practically no assessment of any sort had been
made since its passage under this law. The Federation ﬁled a
petition for a writ of mandamus to the Board of Equalization or-
dering assessment of certain corporations according to this law.
The companies numbering 23, included all the traction corpora—
tions in Chicago. Thirteen were not assessed at all; seven were
assessed so low that the Court found the assessment fraudulent.
The writ of mandamus issued as to all but three companies, the
Chicago Electric Traction Co., The Chicago General Railway
Company and the General Electric Railway Co. and was conﬁrmed
60 Surrender Oﬂered for Renewal
¢
on appeal by the Ill. Supreme Court. '(191 111., Rep. 552). The
petition and evidence showed that the value of the intangible prop-
erty of the company, unassessed but taxable, to be $235,829,567
(191 111., Rep. 535).
After the Teacher’s Federation secured the mandamus in the
terms of the law of Illinois directing the State Board of Equaliza-
tion to follow that law, the corporation applied to Judge Grosscup
for an injunction against the collection of the tax for 1900, as-
sessed according to the mandamus. Owing to the delay of legal
procedure this assessment was made only three weeks before the
assessment for 1901, which latter assessment was not made under
the mandamus. The latter assessment ran from 30 to 47 per cent.
lower than the assessment resulting from the mandamus. Judge
Grosscup proceeded to set aside the laws of Illinois, to set up
arbitrarily, without any warrant in law, a system of his own for
computing the assessments and to restrain the collection of the
taxes for 1900 assessed according to law as set forth by the
Illinois Supreme Court. One of his main reasons for doing so
was the drop in the assessment for 1901. The proposition of
Judge Grosscup amounted to this: because for years the State
Board of Equalization had not followed the law in the past; be-
cause they showed by the 1901 assessment that they did not intend
to follow it in the future, the result reached in the one instance
where they were forced by mandamus to follow the laws of Illi-
nois as set forth by its Supreme Court, was to be set aside because,
forsooth, it was the taking of property without due process of
law, and a denial of the equal protection of the laws. To enforce
according to law in a single instance the collection of a tax was
such a taking; such a denial, but to deprive the whole people of
their property, collectable taxes, which were not collected as by
law directed roused no ire as to due process in this modern Daniel,
nor did it occur to him that to tax the people according to law
and not the corporation was denying to the people equal protec-
tion of the laws.
The traction men are, as Mr. Sikes has said, “ desperate men
who make a business of playing for big game.” (Sikes p. I 5.)
There is “big game ” here. The population of Chicago, Expert
Arnold calculates will range between 5,250,000 and 13,250,000 in
1958. The total gross receipts of the traction companies of Chi-
k
Surrender Oﬂ'ered for Renewal 61
cago will have increased accordingly, he says, to a sum ranging
between $70,000,000 and $225,000,000 a year. The gross receipts
yearly now are only (1901) $13,337,736 (B. A. 66). If on thi:
annual income $1 I 7,000,000 of stocks and bonds have been issue I.
what will be the volume of securities these masters of capitali-
zation will put out to soak up the proﬁts on $70,000,000 or $225.-
000,000 a year, of gross receipts? Mr. Arnold estimates the cost
of the system he recommends at $90,000,000. The system we
have is worth $25,000,000 but carries $117,000,000 of capitali-
zation. How much capitalization would these men put on a sys-
tem worth $90,000,000?
If the owners of the North and West Side systems by mak-
ing contracts with themselves as a Construction Company made
their fellow-stockholders pay them $16,000,000 for cables worth
only $7,000,000, how much would the construction companies
of these men charge for new equipment worth $90,000,000?
Think of the commissions for underwriting, the manipulation of
the stockmarket, the “ india-rubber accoiint ” for “legal ex-
penses.” Think of the ease with which the Council would regu-
late this corporation, and citizens would enforce their rights in
the courts, or recover damages for accidents or trespass against
such defendants. Think, too, how pure our politics would be with
the “ car-barn vote” of this ‘ one system” marched to the polls
on election day by their foremen, and with the employees of the
gas, electricity, and other public service corporations, owned by
the; same group of millionaires nominating the candidates of both
parties at the primaries; including judges who will pass upon the
validity of ordinances, the verdicts in accident cases, and motions
to give new trials in bribery cases. How easy it will be for the
common people to secure the nomination by the President of
Federal Judges free from bias in deciding questions between them
and those who can contribute millions to the campaign funds of
both presidential candidates. .
Philadelphia has been betrayed into selling its gas works to
capitalists who are members of this traction group. The leading
ﬁnancial journal of Chicago has for some time been advocating
the sale of our water works to a private corporation. How easily
would our municipal electric plant and water go the way of Phila—
delphia gas!
K
i
62 Surrender Oﬂ’ered for Renewal
It would be all the monopolies against one municipality. These
public service monopolies have already become one monopoly in
more than one city.“~ It has been pointed out in the Atlantic
Monthly by Mr. R. R. Bowker, late Vice-President of the Edison
Company, “that the Metropolitan coterie then controlled not
merely the street railways, but the gas, electric light and power
supply, and he might have added the stage routes of Manhattan.”
(M. A. 516.)
A similar uniﬁcation has occurred in Birmingham, Ala., New
Orleans, Denver, Minneapolis, St. Paul, and many other tpwns.
The evolution is toward one monopoly against all the municipal-
ities -— New York against the whole country.
The stand the people of Chicago take with regard to this
economic and political conspiracy against its economic and politi-
cal independence, is big with the fate of democracy, in Chicago,
in the other great cities, and in the life of the nation. There are
already newspapers, like the New York Sun, and public men,
like the late Chairman of the House of Representatives Postal
Committee, to argue that the/government can not run the Post-
oﬂice as well as a private corporation would do it.
But you will say the people of Chicago once warned will
never agree to such an “adjustment,” and no one can force them
into it. Let us read a little more in Judge Grosscup! Twelve
more pregnant pages of print have never appeared in Chicago or
about Chicago than the four pages of the Memorandum of Judge
Grosscup to the Union Traction Receivers, Chicago, May 27,
1903, and the eight pages of the Further Directions of Judge \
Grosscup to the Receivers. July 10, 1903.
Therein we can read the alternative which the “ law’ offers
Chicago if it chooses to reject this “fair bargain ” (G. 6), this
“full surrender” (G. 7) by the companies. “Judge Grosscup
shows that the 99-years’ act “is fundamental to the railway com-
panies present vested, property interests.” (W. W. G." 72.) “ If
valid, . . . the court can not decline to enforce it though every
inhabitant of the city be disappointed.” (W. W. G. 72.) Judge
Grosscup evidently has been ﬁlled by the receivers and their coun-
sel with alarmist views of the Chicagoans. He warns us (G. 6)
against “breaking of contract,” and “breach of public faith”
(G. 4), and the use of “brute force ” (G. 6). To forestal abso-
)
a.
' \ Surrender Oﬂ’ered for Renewal 63
lutely any plans Mayor Harrison and the Common Council or the
Civic Federation may be planning for a resort to “ brute force,”
Judge Grosscup refers explicity to his power to call in the Fed—
eral Army. “ I take it for granted, of course, that no one . . .
underestimates the power of the Court to command all the re—
sources of the Federal Government.” (W. W. G. 74.)
This “ fundamental” 99-years’ act Judge Grosscup ﬁnds to
be valid, constitutionally.
This is certainly an appalling situation. It 'is bad enough for
a nightmare, and this is reality, not dream.
Chicago is offered this choice by Conservator and‘Judge Gross-
cup: Either it must accept the “surrender,” the “full adjust-
ment” by which, practically, its street car lines, and all its other
public utilities will become a uniﬁed and perpefual monopoly.
Or, it must begin before Judge Grosscup a litigation which
may end as he tells us, in decisions that Chicago has and can
never have until more than half the twentieth century is gone,
any municipal ownership, any right of eminent domain, any real
power of supervision, any reduction of fare, any claim for good
service, any right to relief from the Legislature.
The Legislature of 1865 opened the door of an Inferno which
can never be shut. “ All hope abandon ye who enter here.”
' What shall we do?
The discovery that the no-renewal-without-ninety-nine-year-
waiver plan which our Mayor and Common Council are incubat-
‘ing is the identical plan of the traction people tells us, what to do.
Renewal is surrender.
'&
ﬂ
1
CHAPTER IX
What to Do.-—-First: Immediate Relief
Without Renewal
Armed with its “police powers,”-— powers that is, to protect
the public welfare,-- to “ regulate the use of streets,” and with
its rights under the “ contract,” let the city order the companies
to provide without delay all improvements of service required
for the needs of the public, and that its traction expert be em-
ployed to superintend the proper execution of its orders. What-
ever immediate relief is possible can be got without renewal, and
better without it than with it. A'valuable part of Expert Ar—
nold’s report is given to the study of what can be done, and how.
The capacity of the elevated roads can be increased at once
by lengthening the platforms of the stations. On the street sur-
face through rearrangement of terminals and re-routing of cars,
Mr. Arnold has prepared a plan of immediate relief, “ which could
be put in operation in a very short time after once agreed upon.”
( B. A. 43.) This would permit more cars and greater speed.
Mr. Arnold shows that with a proper arrangement of routes and
loops the present trafﬁc could be handled with 200 cars less than
are now in use. He shows also that putting on modern double
trucks cars in place of the single trucks cars now in use, would
increase the seating capacity “equivalent to adding I,I22 more
cars of the single-truck type to the present service, without in-
creasing the number of cars on the streets.” (B. A. 47.)
The One-City-One-Fare demand of the public can be met pro-_
visionally, by several methods for the interchange of transfers
which he has prepared. By the changes in routes, terminals, and
transfers which are possible, much saving of time and convenience
will accrue to the public. Another very practical measure for
immediate relief which Mr. Arnold emphasizes is the regulation
of team trafﬁc. “ In no ﬁrst-class city in the country are the con-
Immediate Relief without Renewal 60
P
veniences of the traveling public so little consulted and their
rights so little protected as in Chicago.” (B. A. 48.) Many
miles of new lines are needed for districts now served inade-
quately, or not at all, or to connect lines now detached. Mr.
Arnold gives a list of all these in full detail (B. A. 52). The
city could proceed to build these lines, immediately to form a
part of its own system. The work done under the supervision of
the city experts could be made to harmonize with the ultimate
plan for our perfect system. These lines could be paid for by
the certiﬁcates the city is authorized to issue by the Mueller law.
The immediate cleansing and repair of the cars and equipment
the companies now have, and the enforcement of city ordinances
already enacted would add much to the comfort of the public.
Renewal of franchises is no requisite preliminary to these in-
stallments of immediate relief, and the many others that are prac-
ticable. It is no requisite even for permanent improvements. The
traction system of Boston has been developed under a law by
which the companies can be turned out of the streets “ at any
time.”
The aldermen in cities and the selectmen in towns have
the power, subject to the approval of the railroad commis-
sioners, to revoke the franchise of any surface railway at any
time after the expiration of one year from its opening for use
“if the public necessity and convenience in the use of streets ”
so require. “ The right of revocation has been fully sustained by
the Supreme Court, and isbuniversally recognized in practice. The
grant of the location is substantially a license during good behav-
ior. The existence of the right of revocation has proved an effec-
tive means of securing to the people proper transportation facil—
ities.” (M. A. 721.) So said Mr. Louis D. Brandeis, one of the
best known lawyers of Boston, before the Municipal Ownership
Convention of New York this year. A Committee of the Massa-
chusetts Legislature, of which Mr. C. F. Adams was Chairman,
made a report in 1898, stating that “ It can not be said, that the
system has for the half century it has been in use worked other-
wise than on the whole satisfactorily.” It “ would in its practical
results compare favorably with any.” (S. R. C. 25.) They add
that such a franchise for a ﬁxed term as the Mayor and Common
Council of Chicago are now 11eqot'"ting with the companies “has
66 Immediate Relief without Renewal
been productive of dissension, poor service, scandals, and un—
healthy political action.” (S. R. C. 25.)
Our Street Railway Commission of 1900 defend this revo-
cable grant, this tenure at will, as more logical than the plan of
giving ﬁxed terms, which our belated ofﬁcials still cling to, the
Commission found the same form of grant without deﬁnite time
limit in use in Washington “with the most satisfactory results.”
(S. R. C. 25.) Washington, the Commission states, “ has the best
street railway service of any city in the country and it has led most
L.other cities in the introduction of improvements in service.”
i More than this, in Washington “ grants are conferred by act' of
1 Congress, and all grants are subject to alteration, amendment or-
frepeal at any time, at the will of Congress.” “ \Vhen the under-
ground trolley was shown to be feasible, Congress passed an act ”
by which the street railroad company was “required” to instal
that method of traction. “ Under this order Washington was the
ﬁrst city in the country to secure the underground trolley.” (S. R.
C. 26.) Even under the 99-years’ act, the Government of Chi-
cago could do what Congress did in Washington and order the
companies to instal the underground trolley wherever it was
needed for adequate public service.
The companies have pleaded in the past that they have been
compelled to let their equipment run down on account of the un-
certainty of their future, but Professor Zueblin points out in 1902
that “ several of the companies have recently spent large sums
of money in increasing their plant, regardless of the uncertainty
of their future.” (Zueblin, 56.) The latest evidence that without
renewal large improvements may be secured is furnished by Con-
servator Grosscup. July 10, 1903 he gave the receivers of the
Union Traction Company instructions for “ the immediate expen-
diture of money for the improvement of the system,” such as ade—
quately to “ conserve the property rights of the companies, while
requiring them to fulﬁl their obligations to the public.” (G. 2.)
One of the ﬁrst beneﬁts the public received from the receivership
was that “ eighty-ﬁve cars have been added to the regular serv-
ice. These were old cars taken from the barns, quickly repaired
and repainted.” (G. 8.) Pursuing the policy of “ adding some-
thing to the comfort of the public ” Conservator Grosscup ordered
the receivers to spend $480,000 for “ one hundred new double-
i
M
Immediate Relief without Renewal 67
truck electric motor cars, each capable of seating comfortably
more than ﬁfty people,” and “ $I00,000 to equip electrically, cer-
tain portions of the cable lines, so that cars on outlying lines
may be brought electrically much nearer the business center, and
transferred as trailers to cable trains, bring their occupants into
the business district without change of cars.” (G. 8.) If this
installation of the overhead trolley interferes later with the under-
ground trolley, which Mr. Arnold declares to be the only proper
traction on the more populated streets, the people of Chicago can
thank their ofﬁcials who have taken no steps to have the interests
of the city guarded in these proceedings before Judge Grosscup.
'i'
Receivers have been put in charge of the Union Traction Com-‘
pany system upon the application of creditors seeking protection
of their rights. The people of Chicago have not yet moved for
their rights. They are entitled to it precisely as the other cred-
itors are. When the ofﬁcial guardians of Chicago begin to show
the zeal for its interests, for which they are elected and paid, or
when some association of citizens undertakes the work they neg-
lect, the city will be made a party to all these proceedings, or will
initiate proceedings of its own. The city of Chicago has as
much right as these corporations to a place under the shield of
the Federal Court, and the protection of receiverships, and “ all
the resources of the Federal Government.” The city of Chicago
is itself'a good deal of a corporation. The resources of the law
of receiverships and of many other laws, are as available for the
people of Chicago as for the trust company of New York, if the
people will have them used.
We must consider it due to this apathy of our ofﬁcials —- and
people --that the practical effect of Judge Grosscup’s “ conserva~
tion ” so far has not been to procure the adequate fulﬁlment of the
obligations of the companies, or the recovery of the money taken
from the people, or from the treasuries of the victimized com-
panies. Judges do not usually feel called upon to protect those
who will not protect themselves.
It has been charged in court that the receivership proceedings
are collusive proceedings. Collusive receiverships are a common
feature of the administration of “justice ” nowadays. Corpora—
tion ﬁnanciers who want to wreck corporations, to conceal the
manner in which they have wrecked them to defeat justice, to
68 Immediate Relief without Renewal
evade obligations, to manipulate the stock market, or have some '
other sinister purpose in view, frequently resort to this proceed-
ing. By collusion, these insiders arrange with outsiders as bond
holders or other creditors, to begin apparently, hostile proceed-
ings by which the control of the property is taken from them by
the courts. The custody of the property is nominally in the hands
of some judge, but it is practically in the hands of the receivers
appointed by him, and the collusive parties take great pains to
see that the right kind of men— for them—are made receivers.
There is a way by which the simplest citizen can tell whether the
present traction receivership is a collusive proceeding or not. The
receivers have been appointed on representations made to the
court that unless it intervened and took control, the companies,
' bankrupt, or soon to become bankrupt, would be unable to pay
what they owe. The companies in the traction system have been
plundered of millions of dollars by their principal stockholders,
as we have seen. If some of these millions could be recovered
from these men, the companies would be resuscitated to just that
extent. Let the simple citizen watch to see What steps are taken
for the ascertainment and enforcement of the rights of the cred-
itors against these wreckers. Even the simple citizen will under-
stand that receivers appointed at the instance of the wreckers, will
not take any great trouble to pursue the wreckers. '
Chicago has never yet had any City Attorney or Corporation
Counsel, or Mayor, or Common Council that so much as began
thoroughly to use the resources of the law in dealing with the
traction or other public utility corporations.
Every lawyer knows that the power of the "city, without
any renewal whatever, is ample to compel these companies to
bring their equipment up to date, and give the public every
item of immediate relief possible. Even if’ they had squatted in
the streets of their own free will, and without accepting any
charter had gone into the business of supplying transportation,
they could be compelled to maintain a service in full conformity
with the needs of the public. This law is as old as Lord Hale,
and as new as the latest decisions of the Supreme Court on this
subject.
“ Property,” said the Supreme Court in Munn vs. Illinois, 94
U. 5., II 3, “ does become clothed with a public interest when
,A.
Immediate Relief without Renewhl 69
used in a manner to make it of public consequence, and affect the
community at large. When, therefore, one devotes his property
to a use in which the public has an interest, he, in effect, grants
_to the public an interest in that use, and must submit to be con-
trolled by the public for the common good, to the extent of the
interest he has thus created. He may withdraw his grant by dis-
continuing the use; but so long as he maintains the use, he must
submit to the control.” (Chaplin, 19.)
The public right controls the private right. The fact that
these companies have received grants from the state increases, not
lessens, their duties. Every grant whether by use or law has '
two sides—the grants by the public, the grants to the public.
The fact that these companies are given the right to charge 5
cents adds the last touch of completeness to the power of the
public. It has a right to insist on a 5-cents return.
The question asked by the law is whether ﬁve cents’ worth
of service has been given the public in payment for its ﬁve cents’
worth of money. This is not answered by showing that some
passengers ride ﬁfteen miles for a nickel. Has the whole public
received the service for which the whole public has paid? Have
the companies given the people as many millions of dollars in
service, as they have taken from it millions of dollars in money?
These are the real questions. The facts ascertained by the Civic
Federation from the books of the Companies, prove that the com-
panies have not kept their side of the bargain. They have taken
a sum ranging between one hundred and two hundred million
dollars in excess of the value of the service they have rendered.
This sum is made up of the excess value of the stocks and bonds
above the value of the plant,-— $9o,ooo,ooo—-—and the amounts
of the excess dividends and bonuses received beyond 6 per cent.,
which is a generous rate of interest to allow them for such a sure
thing. Five per cent. would be ample. This sum of say $150,-
000,000,——- of the people’s money —— they have taken from the peo-
ple in violation of law, without their knowledge or consent, often
by force and fraud. It is scientiﬁcally, “stolen money.” This
is the answer to the reiterated defense of the companies: “ We
give the best service in the world, we carry you I 5 miles for ﬁve
cents.” Even if it were true that they had given or gave the
best service in the world, and that every one rode I5 miles for
7O Immediate Relief without Renewal
ﬁve cents, this would not legitimize their possession of $150,000,-
000 more than their investment and interest. Their obligation
was and is, to give as much service as they charged for, or to
charge no more than what they give is worth. “ The best in the
world ” is not the limit, either. They are obligated to ﬁnd and
give better than the best if that is needed.
A bad idea is imbedded in good words— “the value of the
franchise.” This is doing much mischief in public thought, and
therefore in public action. Thus in the report of the Civic Federa-
tion, the amount of overcapitalization, or water, $75,000,600 is '
spoken of as “the value of the franchise.” It is not. If
‘street railway grants or other grants were faithfully managed
‘ from within and controlled from without, $100 of their stock
:would bring $100 in the stock market, neither more nor less.
3!
This so-called “value of the franchise is the value of neglect
of duty by our ofﬁcials, and of evasion and violation of law by
the companies. It is the value of frauds on the stockholders and
on the public. Outside of these there is no such thing as the
“ value of the franchise,” in the sense in which it is used. Beyond
the duty of doing the service and getting the average rate of in-
terest on their actual investment, there can not be lawfully any
property or premium or bonus for private individuals in the use
of the streets, or in the exercise of a public function. There is
not a line of law anywhere, neither in constitutions, statutes, nor
decisions, which gives to those who have received a public grant
any right to “make money” or “get rich ” out of it. Where
recipients of these trusts have got rich, and thousands of millions
of dollars have been made by this means, they have done so be-
cause they have failed to discharge their duty to the public, and
the public’s representatives have failed to compel them to do it.
These thousands of millions belong to the public and will some
day be reclaimed by them.
Every power the city possesses to protect the public should be
ascertained and enforced. Ordinances for the protection of trac-
tion employees; public ﬁnes in all cases of accidents in addition
to the penalty of damages to individuals; revision of the car li-
censes; equalization of the companies’ taxation with that of other
taxpayers; penalties for all violation of ordinances; recovery ’of
damages for all stolen use of streets; procedure for the forfeiture
Immediate Relief without Renewal 71
of franchises for nonuser and misuser; a wholesome remedy
which the American people will ﬁnd it to their proﬁt to “ dig out ”
of the old law books; proceedings for the recovery of the fraudu-
lent proﬁts made out of the grant; recovery to the city, of dam-
ages for the failure of the companies to keep the “contract; ”
reform of the night service; Sunday service, early-morning-hour
service, middle-of-the-day service,——- the whole service between
the “ rush hours ” which the companies now notoriously neglect,
running cars back to the barn, which ought to be kept going in
the streets. .
The law has a remedy for every wrong. The city has been
damaged, the citizens have been damaged, and the companies on
which the city has large claims for money and services have been
damaged. The city as well as the stockholders has questions to
ask about the frauds that have been perpetrated. The city
and the citizens have been the victims, to the extent of mil-
lions of dollars, of the extortion of a 5-cent fare for a much
less than a 5-cent service. There have been misuser and non-
user of franchises, and there is a law of forfeiture for these and
other derelictions. The law is a storehouse of rights, and an ar~
senal of remedies, many of which have not been so much as hinted
at by the anaemic representatives of the public, legal and other.
All the machinery of grand juries, and district-attorney’s
ofﬁces, with the help of special counsel should be set in motion
to bring to light and punish all the penitentiary offenses that have
been committed in the lobbies of, the Capitol and the City Hall,
in the offices of corporations and elsewhere. Chicago is a rival
of St. Louis, in other things, let it rival St. Louis in the produc-
tion of a Folk.
When the people ask for a remedy, we must not throw them
back on their duty to elect better men to the Legislature. \IVE do
not tell the man who has been robbed that his remedy is to pro-
tect his property more securely. We recover the stolen goods,
and send the thief to jail -- unless he has stolen a very great deal.
Refuse renewal of any old franchise or gfant of any new fran-
chise. Chicago would be lost to self-interest, to say nothing of
self-respect if it negotiated any new or renewed franchises, with
the men who have done to it in the past, and are prepared to
do to it in the future, the things we have disclosed.
’4
72 Immediate Relief without Renewal
Renewal is unsafe. However fair the seeming of any pro-
posed ordinance, it would be amended at some unexpected turn
of the proceedings, in some such way as to destroy the rights
of the city in some vital particular. In his card to the public over
his signature, in the Record—Herald of March 29, 1903, Mayor
Harrison said: “ The only trouble is that grave temptations are
placed before legislators on traction propositions, and there is
likely to be a clause slipped in here and there in proposed meas—
ures that will mean millions to the companies and nothing for the
citizens.”
It was in this way the Interstate Commerce Law was de-
stroyed. Commissioner Prouty has told us, how, when it became
evident that the country would have an Interstate Commerce Law,
several of the great railroad systems were converted, opportunely,
and were not only ready to admit that there should be a law, but
even to suggest what that law should be. Some astute lawyer
was always ready to offer, at every vital point, innocent-looking
amendment. These innocent-looking amendments bore fruit in
the decisions of the Supreme Court that the act gave the Commis—
sion no power over the rate (May 24, 1897).
Mayor Harrison and the Common Council, “ Reform ” Coun-
cil though it is, have already proved themselves incapable of draft-
ing ordinances that protect the city’s interests in this very matter
of traction. They have already endangered a vital link in the
new system the city must have. The Council has passed and
Mayor Harrison has approved the ordinance grantingthe Illinois
Telephone and Telegraph Company the right to tunnel the city.
But these tunnels stand directly in the way of the subways which
Chicago must have in the immediate future, and as to which it
is already behind Boston, Paris, London, and New York.
The Mayor and Common Council did not make this blunder
in ignorance. Since November, 1902 they have had before them
the report of their expert, Mr. Arnold, in which on pages 152
, and 153 he explains how the tunnels, existing and contemplated,
of the Illinois Telephone and Telegraph Company interfere with
the subways “which must be built” (B. A. 17), necessary to
bring Chicago’s traction up to metropolitan standards. How the
passage of this ordinance could have been promoted by the trac-
tion obstructionists, into whose hands it plays directly, can be
,' v,'.J‘
I
' Immediate Relief without Renewal 73
- conceived; but how it could have been permitted at this crisis,
the crisis, literally, of a century, by the, representatives of the
people, is inconceivable.
This ordinance is for 26 years, and violates the now accepted
rule limiting franchises to 20 years. It purports to be an amend-
ment of a telephone ordinance of Feb. 20, 1899, but is for a
wholly different purpose. It violates the accepted rule that no
general right of way is to be given in the streets, and that con—
struction is to be authorized only on deﬁnite routes. It is a
blanket ordinance for freight railways under the whole city, giv-
ing the company at its will the right to build anywhere, except
in the down—town district. But as was pointed out before its pas— ‘
sage by Mr. George E. Hooker, a well known authority in 1nunic- ‘
ipal science, and Secretary of the Common Council Special Com-
mittee of 1898 ——the Harlan Committee -— it imposes on the Com-
pany “no deﬁnite construction program which the company is
bound to carry out.” It permits the company to use “any appli-
ance or apparatus.” “ It reserves to the city no power to regulate
rates or service.” “ It is a blanket grant to speculate on, to do with
as the company likes,” as Mr. Hooker styled it. Though warned
by expert advice of the certain interference between the tunnels
of this company and the future subways of the city, the Common
Council practically failed to safeguard the city. It did reserve
the “ right of the city ” to compel “ the lowering, altering, or re-
moval ” of the tunnels in case of such interference, but from “ the
right to compel,” to the eﬂectuation of the right is a far cry, as
the city will ﬁnd to its cost.
The “ right to compel" is the right to a lawsuit. No right
was reserved by the city of summary entrance upon the property
of the company to make good this “ power to compel.” No obli—
gation was required of the company to remove or alter or vacate"
its tunnels, when notiﬁed to do so under this power to compel. I
No provision was made for ﬁxing the damages to be paid. Iffl
the unknown men behind this telephone and freight company“.
have interests in common with the Chicago traction owners, or
if on their own account they wish to hinder municipal subways
and municipal ownership, they can make themselves a great
stumbling-block, especially if the predilection of the courts is in
favor of corporations and against the people.
_~ Q
74 Immediate Relief without Renewal
An amendment that a thorough investigation, with expert
assistance, since “no such ‘system of underground freight rail-
ways is in existence anywhere” was voted down on motion of
Alderman Bennett. Amendments to make the “ conduits” here-
after constructed the property of the city, upon expiration of the
franchise, as the “tunnels” will be, for the “reasonable regula-
tion of charges; ” for forfeiture if the company did not construct
its system as agreed; requiring a bond of $500,000 instead of one
for $100,000 to keep the city harmless; and, last of all, to submit
the project to the vote of the people were all voted down on
motion of Alderman Bennett. The last was lost by 50 to 8.
The Mayor hurried the ordinance through with the recommenda-
tion “that it be passed without the usual reference to a Commit-
tee.” Thus went through the “Reform Council ” with only'four-
teen votes against it, this “biggest of conﬁdence games” and block
to municipal subways. -
The only person the people can trust is the whole people.
Had this ordinance been submitted to popular vote, the ﬁrst pub-
lication of Mr. Arnold’s statement about its interference with our
traction future would have killed it. The mistake is one which,
will have to be repaired somehow. The “contract” with the Illi—
nois Telephone and Telegraph Company must be recovered by
condemnation proceedings through the exercise of eminent do-
main, if no other way is open.
0
CHAPTER X
What to Do.--Second: Clear the Way for
Municipal Ownership
Chicago must obtain from the United States Supreme Court1
by the expedited method suggested by Judge Grosscup, or some
other, a deﬁnite and ﬁnal adjudication of the 99-years’ act and
the Allen law. It must exercise at once its power to issue street-
car certiﬁcates to pay for the purchase or construction of street-
car lines, in order that that power, if disputed, may also be es-
tablished by the Courts. As another means of obtaining funds
for traction purposes, the power of the city to borrow can be in-
creased $60,000,000 by the consummation of the movement now
in progress for the consolidations of the North, \V est and South
Towns, thus raising the debt limit. All the doubts raised by the
disconcerting interpretations of Judge Grosscup, that even with
the Mueller law Chicago may have no powers of municipal own—
ership, no right to get possession of street-car lines by eminent
domain, no power to reduce fares, not even any “ warning hand”
of supervision, and that there is no power even in the Legislature
to give relief, must be settled immediately. The tunnel rights
just given the Illinois Telephone and Telegraph Company in con-
ﬂict with the subway plan of the city must be resumed. All these
questions lie between us and municipal ownership, and the more
immediately they are determined, the more immediate will be that
municipal ownership.
Chicago has before it the ﬁght of its life— for its life. Now
we are to see whether there is such a thing as the people of Chi-
cago, and whether it is a people ﬁt to be free, and ﬁt to lead
others to be free. Dartmouth College, though poor, contested the
Dartmouth College case to protect the sacredness of private trusts.
It did this not merely for itself, but for the many other colleges,
which might have been ruined by legislative violation of their
76 l Clear the Way for Municipal Ownership
rights. Chicago is not poor. and it has a still greater work to do
for itself, and for all American cities, than Dartmouth College did
for American colleges. Upon Chicago is laid the necessity and
the duty of saving municipal liberty and prosperity for itself and
all American cities, by securing from the Supreme Court of the
United States a reafﬁrmation of the vital point in the Dartmouth
College case. That point was that the Legislature can not violate
a vested right, or a contract. The invasion of the vested right of
Dartmouth College by the Legislature of New Hampshire in
1816 was a triﬂe compared with the attempt upon the people of
Chicago by the legislation of 1865. The people of Chicago were.
not the worse than Russian serfs of the Legislature which voted
the 99-years’ act. They were free men. The Legislature had no
power over them not given it by the Constitution of the United
States, and the Constitution of the state of Illinois. Those docu-
ments may be searched in vain for,a syllable authorizing the Leg—
islature to grant to private individuals, for private proﬁt public
functions or public property; or to create a private monopoly out
of public powers; or to give such a monopoly to a few citizens
without compensation ; or to give to some of the citizens the power
to appropriate without consideration the money of the others,
which was the intent and has been the effect of the 99-years’ act;
or to surrender for a century, to private individuals that public
control of highways and transportation, which is part of the sov-
ereignty of the state; or to make legal for a century an extortion-
atc price for a necessity of life, free from competition or regula-
tion, to the impoverishment of the people, and the over-enrich-
ment of a few; or to make the exercise of public functions sub—
ject to the veto of private interests; or to make to any one a grant
inconsistent with the public welfare; or to deny to millions--
nearly half the state— and millions unborn, an essential right
of self-government and self-protection; or to do all this, as Judge
Grosscup intimates, so irretrievably, that no remedy is possible;
neither from the Legislature nor any other source.
The mere statement shows how contrary to the reason of
things, the nature of society, the primary rights of man, the pur—
poses of the state, such a pretended “ contract” is. For a con-
stitutional democratic government to assume that it has the power
to make such a contract is to dissolve government and society
. Clear the Way for Municipal Ownership 77
itself. The Constitution of the United States and the Constitu—
tion of the state of Illinois, were framed to render such abuses of
the sovereign power impossible. Neither in them nor in the
Dartmouth College decision can any shadow of warraht be found
for the claim of such power by the Legislature. The exercise of
such power by any department of our government, legislative,
executive, or judicial, would justify the people in a resort to
force, if there were no more convenient and agreeable remedy.
Apprehend all that we may justly, from the predilictions of
the Supreme Court in favor of the corporations, and the rich, and
against the people, as shown by their Income Tax Decision, their
annihilation of the Interstate Commerce Commission, and many
other judgments, we shall still fare better with the Supreme Court
by litigation, than by negotiation with these traction men. A
public that can read the cold record of what these men have
done, and renew with them any negotiations would be wholly
destitute 0f life-saving resentment. The public never have been
able to cope with them in negotiation, and in the nature of things,
never can cope with them. The public must be open, and honest
and kindly. Its representatives have behind them only the press-
ure of public opinion, seeking public good—too mild a goad
to keep them awake. The private negotiators of bargains in public
utilities come with the sharp prick behind them of that concen-
trated selﬁshness whose record has been written in the half cen-
tury’s history of Chicago, and which never sleeps nor slips.
If at the worst the Supreme Court holds to the position that
a state grant or charter is a contract irrepealable by any human
power, it will be compelled at the same time to state the obliga-
tions of the contract. Contracts have two sides, like certain
swords, and cut both ways. A contract which gives ,the right
to charge a 5-cent fare imposes the obligation to give a 5-cent
service—which no Chicago traction company has ever done, as
is proved by their extortionate gains. The right to be the pur—
veyor of transportation to a city has for its obverse the duty to
give that city transportation—adequate, up-to—date, with every
facility of speed, convenience, equipment known to the art. This
no Chicago traction company has ever done.
If a “ contract” of monopoly is found by the Supreme Court
to have been acquired legally by the purchasers of the Legislature
78 Clear the Way for Municipal Ownership
of 1865, it still can not hold that that contract can legally be
used by them to take from the people the maximum of revenue,
and give the minimum of service. It can not legitimize past,
present or future ﬁotations of stock, to the amount of one dol-
lar, not representing actual investment in equipment and opera-
tion. It can not legitimize the many millions extorted from the
public without return, and paid in dividends amounting to far
more than a reasonable average compensation for capital. There
is law even under monopoly, and the law has remedies for these
wrongs. Under the theory that the creation of monopoly for “
private beneﬁt is a lawful exercise of democratic government
power, and that a grant is an unmodiﬁable contract, the Supreme
Court will exact of the traction interests a more rigorous fulﬁl-
ment of the obligations of their contract, than they would ever
concede themselves in private negotiations with the city. The
city is far safer in trusting its protection to the broad and well-
adjudicated interpretations of such obligations, to be found in
the decisions, than in running the risk of covering all the points
in new phraseology in a new grant, calling for new adjudication,
to say nothing of the liability to sinister amendment in the con-
fusion of passage through the Common Council. We have
stumbled already too often in that path.
That the traction men are anxious above all things to escape
a judicial determination of our rights and theirs under the 99-
years’ act, has been manifest for years. They revealed it by their
willingness to accept a provisional renewal of their charter in
1883, by the Humphrey bill and the Allen law. It is manifest
today by their willingness to negotiate on the basis of “ renewal
with surrender.” They have three reasons.
F z'rst.—- They know that the position maintained by them and
sustained by Judge Grosscup’s intimations, has never yet been
taken by any Anglo-Saxon court, and they may well doubt the
success of their journey to the Supreme Court. They know, too,
for Judge Grosscup has said it, that “if invalid ” “ every dollar
in the railway securities may be irretrievably sunk.” This the
public has never sought. In the very beginning, in 1858, they
agreed to pay an appraised valuation for the plant, and have al-
ways been willing to do this.
Secand.-- If they win, and their monopoly is held to be an
Clear the Way for Municipal Ownership 79
unchangeable contract, they know that the Court will be compelled
in sheer decency to construe against them as the consideration,
counterpoising obligations as stringent as their privileges, more
stringent, than they would ever voluntarily concede, and more
stringent than our lackadaisical ofﬁcials would have the courage
to demand of them.
Third.-- Even if their relations with the city be adjudged
to be those of “ contract,” that contract must be held to include
_the right of the city to “purchase.” The very language of the
opinion given the city by our then Corporation Counsel shows
that the power of purchase must be upheld as part of the contract. '
Judge Adams stated what every lawyer knows, that the city may
exercise the power of purchase if it was conferred by the law
either in express words, or by necessary implication. When the
city by the ordinance of 1858 reserved the right of purchase in
1883‘, it had only the power and duties, which any collective body
of citizens acting through agents would possess,— though these
powhrs and duties are considerable. When the Legislature in
1859, ratifying the action of 1858, gave this collective body of
citizens municipal powers to deal with street—car companies, it
was made part of the law that the companies should do business
in the streets, “ upon such terms and conditions, and with such
rights and privileges as the said Common Council has or may
by contract with said parties or any or either of them, prescribe.”
(Schilling 8.)
The law of 1865, the 99~years’ act, ratiﬁed what had been done
in 1859, and explicitly stated that the companies were to exist in
the streets, “in such manner and upon such terms, and conditions
and with such rights and privileges, immunities and exemptions
as the said Common Council has or may by contract with said
parties or any or either of them prescribe,” and it further added,
“ and any and all acts or deeds of transfer of rights, privileges or
franchises between the corporations in said several acts named
or any two of them, and all contracts, stipulations, licenses and
undertakings made, entered into or given, and as made or amended
by and between the said common council and any or more
of the said corporations, respecting the location, use or exclusion
of railways in or upon the streets or any of them of said city, ,
shall be deemed and held and continued in force during the life
.-
V' a. tin-g,
80 Clear the Way for Municipal Ownership
.-
hereof as valid and effectual to all intents and purposes as if
made a part, and the same are hereby made a part of said several
acts.” (Record-Herald, Feb. _22, 1903.)
The Legislature in 1859 and again in 1865 recognized the
right of the city to make “contracts.” The judicial ingenuity
that could discover that the grant of 1865 was a “growing grant,”
and applied not merely to the streets in existence but to all streets
that might ever come into existence in Chicago, might be equal
to the simpler task of inferring that the permission given the city
by the Legislature to “contract” implied the existence of the
power to contract. The opinion Judge Adams gave the city—-
his corporation—in favor of the other corporation holds that
the city had no power to purchase in 1858. It did not propose"
to purchase in 1858, but in 1883 after this enabling legislation.
But back of all this the power of purchase in such a case is “ a
necessary implication” of the power to install street-car equip-
ment, rails, etc., in the streets. In no other way could the neces-
sities of the situation be met in 1883, or 1903, or 1958, when the
franchise expired. It was most necessary for the companies and
was undoubtedly inserted for their protection. Without such
purchase they would be trespassers on the streets, and their plant
would be mere junk, when the franchise expired. If no other
settlement is made, they will be arguing as strenuously in 1958
for purchase as now against it. The power of purchase was nec-
essary for the city, also. If the city had no power of purchase,
and the companies had to look forward to the total loss of all
their plant, it would have been practically impossible for the city
to compel them to keep up the condition of their equipment.
Without this option of purchase the franchise would be unwork-
able. No business men would accept it, if at the end they were
to receive no payment for equipment. No city would give it if
the equipment was certain to begin at once to deteriorate into
'junk in anticipation of the end. That the right of purchase is
a necessary corollary of the right to charter is proved by the fact
i‘that this right is now universally recognized in every community
in the arrangements between the companies and the government.
Judge Adams’ opinion is one of the numberless illustrations of the
fact that to announce good law in economic matters, a judge must
have a good political economy. He must know what he is talk-
a“
Clear the Way for Municipal Ownership 81
In ll/ 1!
ing about. What passes for “law” in the decisions of many
of the judges, the older ones, especially, is their political economy
clothed in legal phraseology, and poor political economy at that.
Justice Holmes touches this well-spring of bad law, when he
says in a letter quoted by Prof. R. T. Ely in his “Evolution
of Industrial Society.” “In my opinion, economists and sociol-
ogists are the people to whom we ought to turn more than we
do for instruction in the grounds and foundations of all rational
decisions.” (Ely, 415.)
Fourth.-- Their ﬁnancial plans demand instant renewal and
the clearing away of every possibility of litigation. There are
at least $100,000,000 above all legitimate proﬁts, to be made out
of reconstruction of the traction of Chicago. This is the “ game ”
these “desperate men ” are playing for. They are speculators,
exploiters, ﬁnanciers, the professional husbands and fathers of
stock exchange widows and orphans,-- neither enthusiasts nor
experts in transportation. Prompt renewal now for 20 years is
worth more to them than a 50-years’ franchise, after years of
such litigation as the citizens of Chicago are going to give them.
They are baiting their renewal with the tempting offer of com-
promise, and full surrender, and admirable adjustment. These
men are few in number, fewer than the public suppose. But they
are the ablest manipulators of public opinion at all its sources,—
in bank parlors, stock exchanges, social gatherings, editorial and
counting rooms, in political councils, even in the churches and
universities,-— that this or any other country has known. To
them it is a matter of millions—quick millions—that Chicago
public opinion is led the right way, and is if possible not even en-
lightened as to the real issues, before its future has been mort-
gaged to them irrecoverably. The air is full of “ Renewal” and
will be kept full.
CHAPTER XI ' ' ~
Chicago the Battlefield of Modern Democracy
Now the people of Chicago are to prove their wits. The
people are not speculators. They can afford to wait, and there
is their strength. They have no get-rich-quick schemes of inside:
construction rings and ﬂotations of watered stock. What im-
mediate relief can be had, we can procure more quickly and more
easily by not seating these men in the saddle again, by not renew~
ing their grants. As Boston, Washington, and Chicago have
proved, renewal is wholly unnecessary. “ Pending ﬁnal deter-
mination the court would certainly require them to greatly im-
prove their service” says Judge Grosscup. (W. W. G. 75.)
The companies have let their service run down and deliberately
provoked the impatience of the people—to betray them by this
impatience into any settlement that promises “improvements.”
The English traction companies made the same stupid blunder,
and as their reward had their lines taken from them by munic-
ipal ownership. As Mr. Robert Donald said before the Municipal
Ownership Convention in New York, this year, “ One of the ele-
ments which helped forward the municipalization movement was
the bad management of companies. They allowed their under-
takings to become dilapidated toward the latter years of their
leases. They were only concerned in making a general scramble
to pay as much in dividends as possible. They paid their work- ‘
men so disgracefully that there were serious strikes in several
cities, interrupting trafﬁc. The cars were dirty, the service ir-
regular, and in Glasgow, Liverpool, Leeds and other cities, there‘
was general discontent at the incapacity of the tramway compan-
ies and the inefﬁciency of the service provided. In some towns
the companies broke down altogether.”
The “brute force” of this artiﬁcially created impatience was
tried in New York, but the people there would not be played
upon. The companies wanted to introduce the overhead trolley.
.-__ - ...-ﬂ
/
G»
g
l
i would suggest that some of these “ swindles
Chicago the Battleﬁeld of Modern Democracy 83
The public refused its consent. The companies threatened the
indeﬁnite continuance of its horse-car service (S. R. C. 46). The
public was unrelenting. They have their reward now in the in-
stallation, rapidly becoming universal, of the underground trolley.
All the Chicago public has to do is to employ an expert—why
not the expert who has made its plans for a complete and ideal *
system—to prepare now a practical and detailed plan covering
every improvement possible, without interference with the ulti-
‘mate scheme. Then let us call upon the companies to adopt these
improvements. If they prove recalcitrant, compel them to do so.
This expert should be made a permanent ofﬁcial, superintendent
of traction, to see that Chicago traction was kept up to the fullest
: development of the art and the needs of the public. When munic-
ipal ownership comes, we should have in him an experienced ofﬁ—
cial to carry on the development of our system without a break.
In holding the companies to this fulﬁlment of their side of what
they claim to be a contract, we should be doing only what Boston,
Washington and Judge Grosscup have done. Not one cent of
risk would be run by the companies, and no injustice done them.
The whole strength of public opinion in Chicago, and the whole
judicial and military machinery of government ~“ all the re~
sources of the Federal government ”— would assure them the
going rate of standard investment proﬁt on their money while
in the public service, and payment in full for the value of every-
thing they turned over to the city when it entered upon municipal
ownership, The same public virtue that refuses to recognize a
monopoly right to be paid for doing nothing, would insist upon
full payment for actual service.
“\Vhen I see that to be the almost universal history of cor-
porations, every drop of my blood boils with hate and revenge.”
It was in these words Judge Grosscup, at Dixon, 111., is reported
in the press to have characterized the use of the “laws of my
country ” “as an excuse for swindles that should land the pro-
moters in the penitentiary.” The history given in these pages
” exist in the trac—
tion companies now under the Judge’s conservation. If the calm
poise of a judicial mind. uninﬁamed by any immediate sense of
personal injuny, is so affected by our stock exchange swindles,
as to lead a man of Judge Grosscup’s character and culture thus
\
84 Chicago the Battleﬁeld of Modern Democracy
to express himself, how are the people of Chicago expected to
meet those who have spoiled them? The issue of nearly $100,-
000,000 of paper, contrary to law, without value, as a devise for
perpetual extortion, is the least of our wrongs. Slums have been
created in a city where no slums ought ever to have come into
existence. Slums of population, slums of politics, and slums of
public opinion, slums of the poor and slums of the rich; a high
death-rate among the virtues as well as among the children.
More dangerous than foreign invaders who come giving
notice, and more destructive, these foes of our own household
have surreptitiously, treasonably, corruptly, possessed themselves
of our property, our government, our rights, and" now claim a
private estate in these in practical perpetuity. No representative
of the people, in discussion or negotiation, has allowed “ every
drop of his blood to boil with hate and revenge.” Reformers are
not permitted to use such language. But a necessity of the situa-
tion which must be frankly faced is the recognition by the people,
of the traction interests of Chicago in their true character. Com-
plaisance and illusions are out of place.
As often as any of the rest of us, perhaps more often, these
“ﬁnanciers” are honorable, kindly and square, in'their homes,
and even on certain sides of their business lives, as in their rela-
tions with their dependents. But they have no honor, no kindli-
ness, no virtue to spare for their “ business ” when it deals with
competitors or the public. There must be something as radically
wrong in business as there was in slavery thus to spoil good men.
Whatever may be the theory, we are face to face with the fact.
These men care nothing for us nor for traction. They are“
not enthusiasts, nor experts in transportation. They hire what
traction skill they have—and that is not much. They are en-
thusiasts, experts, only in capitalization, corruption, dividends.
They are “ out for the stuff.” Their only transportation enthu-
siasm is to transport our money into their pockets. Read the
history of their treatment Of Chicago from 1858 to 1903. Why
should we not hold them to their duties and our rights as closely
as one business man would another?
These men are wholly anarchistic. They violate Legislatures
and Common Councils. They interfere with the consideration and
enactment of laws needed by the people. When, against their im-
J
Chicago the Battleﬁeld“ of Modern Democracy 85
pertinent opposition the laws are passed, they nullify them. If
they are detected in violation of law, they escape punishment.
They wholly disregard and defy public opinion. They submit,
and mean to submit to no social restraints. District Attorney
Folk, of St. Louis, has succeeded in convicting and having sen-
tenced to the penitentiary for bribery over a dozen of the street
railway ring of that city, some of them eminent citizens. It might
be supposed that the ring would be abashed at least by this expe—
rience. Not at all. A judge of the Supreme Court of Missouri
has been found to contest with Mr. Folk the nomination for gov-
ernor on the platform that “there is no boodling in Missouri.”
Why should not these men think it safe thus to ﬂout the public
opinion and the laws? Not one of these men, thus sentenced to
the penitentiary has gone to the penitentiary. They are all walk-
ing the streets, breathing free air, waiting for the new trials which
judges appear to be willing to give such criminals on almost any
technicalities.
In the old days the larger robbers went abroad as conquerors
or buccaneers. Today the same class of “ strong men ” stay as
buccaneers at home. The sum of which Chicago has been plun-
dered by the Chicago traction men, in the millions of stock they
have issued to themselves, without compensation, and the mil-
lions of dividends they have extorted from the public, above the
fair return to which alone they were entitled, amount to more
than $100,000,000, more than one tenth the enormous indemnity
taken from France by Germany after the Franco-Prussian war.
This is the “ ransom ” of only one city! The list of those who
have been killed and wounded in the traction war on Chicago as
a result of the violation of the duties of the companies, and often
in direct disobedience of the laws of the city, would foot up a
_ respectable proportion of the killed and wounded in the same war.
'1 These interests are interests of incompetence, fraud, extortion,
embezzlement, crime and disloyalty. They have no honor an
honest people can negotiate with. The Chicago ﬁre was a bless-
ing compared with them. If it destroyed values, it cleansed. They
have destroyed at least equal values, and have left corruption
everywhere. Their physical assault on the Legislature in 1903,
and the true inwardness we have uncovered in their “ renewal
with surrender ” scheme now before the Council, show them to
-n
vi";
86 Chicago like Bgttlefidd Qli MQdernQemQeraey,
be precisely now what they have alwayg been, impersonations of
unscrupulous greed. They have the same average human nature
as the average of ourselves. But no average human nature can
resist the seductive invitation America extends to greed. America
offers the spectacle of the boundless wealth of a new continent
in the possession of a people too unsophisticated or too careless
or too busy to protect either their virtue or their property.
All power of coping with these men appears to have evapo-
rated out of our officials and their lawyers, as we have just seen
in the glaring case of the Illinois Telephone and Telegraph or-
dinance, and may see still more disastrously if 'the “ renewal and
surrender ” scheme succeeds. These are very dominating men,
and they command the services of the most dominating men;
They have acquired the momentum of men who have always had
their own way. They make the largest campaign contributions,
and pay the largest fees and salaries. They are very rich, and
worship of great riches is in America what “loyalty” is in
Europe. These men know what they want, and have a will to get
it. The people have not till lately known what they wanted or
shown any will to get it. With these “ desperate men ” in front
of them, wholly in earnest, our ofﬁcials and lawyers have not
found behind themselves the power to withstand, they would have
got from a people equally in earnest. There is a paresis of ofﬁcial
and representative vitality. Somewhere new resources of energy
and vitality must be tapped. They can be found only in the body
of the people,-— a force that must participate actively in govern-
ment, if government is to remain pure and democratic.
These men are what we have made them. But they are what-
they are, and we must get rid of them. That promises the great-
est struggle yet made by the American democracy. Municipal
ownership of the street cars is only the ﬁring line. Behind the
traction monopoly are all the public service monopolies of Chi-
cago, and behind them all the public service monopolies of the
United States and beyond. .
The argument about municipal ownership could be considered
closed in Chicago, after our vote of 5 to 1 for municipal owner-
ship, were it not that a class of disloyal parasites has been created
here as in some other ﬁelds, bent to nullify any law, and ignore
any public opinion, and destroy any individual that interferes with
»
p
, Chicago the Battleﬁeld of Modern Democracy 87
their privileges and monopolies. It is thus the efforts of an over-
whelming public opinion, for more than thirty years to regulate
the railroads, culminating in the Interstate Commerce Commis-
sion and Law, have been undone, and the people left as they are
today, altogether without protection, by competition or regula-
tion, by Courts, Commission or Congress. The “ desperate men
playing for big game ” in Chicago traction, gas, electricity, tubes,
tunnels, telephones, mean to defeat municipal ownership at all
hazards. They will be supported by the counsel, co-operation,
and contributions of all the allied public utility corporations in
the country, and by our own “ half-reformers,” the foes of our
own household.

CHAPTER XII
World Strpggle of the '1‘. sets Against the Towns
One of the contemporary events in the world of municipal
ownership is the ﬁerce onslaught now being made on the cities
of England which are embarking so successfully on the policy of
public ownership of public utilities. Features of this campaign
have been the series of articles in “the Thunderer” (London
Times) and other newspapers, memorials to the Bank of Eng-
land, open participation by private monopoly in the politics and
'elections of cities like Birmingham, which have traction questions
to settle. This campaign is in the hands of American interests,
substantially identical with those now seeking to perpetuate their
monopoly in Chicago. These electrical, ﬁnancial, and speculative
magnates have among them some who are already possessors of
world-covering monopoly—and they aim to the acquisition of
all that kind of luxury they can wheedle or bribe or bully out
of the people.
At the same time these men and their editorial writers and
professors are telling us that English success in municipal owner-
m“,
88 World Struggle —~Trusts against the Towns
‘ ship is no precedent for America, because “the conditions are
so different,” they are moving heaven and earth to destroy the
precedent. One of their most prominent generals in this war has
been the Hon. Robert P. Porter, whose activities in Europe in
more or less public effort in the interest of the Standard Oil Com-
pany are chronicled in the European press. Mr. Porter, though
an American, intervened “in a heated local compaign in Birming-
ham, where he went to speak in support of an electric combine
which was trying to force the municipality to hand over its fran-
chise in street railways. The civic spirit of Birmingham asserted
itself on that occasion, and the company, notwithstanding its vig—
orous campaign to convert public opinion to its side, was ignomin—
iously defeated.” (M. A. 583.) So said Mr. Robert Donald in his
address before the Municipal Ownership Convention.
Very high up in English government these inﬂuences have
been able to go. The Lord Chief Justice of England has made pub—
lic complaint that the municipal authorities who are interested in
municipal ownership, have an unfair weight and power in the
House of Commons, and has actually deprecated the fact that
they have too much inﬂuence in _modifying the plans for which
the private promoters seeking local franchises, are asking the
authorization of Parliament. The Lord Chief Justice resents as
interference the efforts of public authorities to see that the pro-
posals of private enterprise do not conﬂict with the interests and
rights of the public. There is a power in these great interests
which can draw the English Lord Chief Justice from the calm
judicial atmosphere of the bench to take part in this way in this
very controversial business between the towns of England and
the trusts of America. It is the same power which means to
mould all departments of American public administration simi—
larly to do its will and adopt its doctrines, on the bench and
elsewhere.
Let us be perfectly plain. It is not merely the same power
in kind, that is doing the same work in England and America.
It is the power of the same men. The companies in behalf of
which the Lord Chief Justice makes these extraordinary remarks,
and for which the campaign of slander against municipal owner-
ship is carried on by the London Times, and Herbert Spencer,
misled by designing play on his individualism, and Sir John Lub—
"—4
World Struggle - Trusts against the Towns 89
- men identiﬁed with Standard Oil interests.
“
book, now Lord Avebury, and Mr. Robert P. Porter and others,
are speciﬁcally companies including among their active members
men who have been and are active in traction in Chicago. The
British Electric Traction Company is the name of the “ securities
company ” by means of which street railways in a large number
of British cities are held in uniﬁed ownership by a group of capi-
talists. Its function is similar to that of the United Gas Improve-
ment Company of Philadelphia, which owns the gas works of
scores of American cities, and is itself owned in large part by
It is in a pool to
divide territory and abstain from competition with the group of
capitalists who are about to “ tube ” London. This group of cap—
italists, says Mr. Donald in The Contemporary Review for July,
1903 is “ connected with some of the greatest ﬁnancial and trust
magnates on the other side. The directors of the new Under-
ground Electric Railways of London, for instance, include men
on the boards of American companies closely identiﬁed with
Standard Oil interests. There are also representatives of such
powerful monopolies as the Boston Elevated Railway Company,
the Union Traction Company, of Philadelphia, the Baltimore and
the Cleveland Street Railway combines. They are connected also
on the American side with the great electrical manufacturing in—
terests. _ A director of the London Underground Company is also
on the board of the Westinghouse Electrical Manufacturing Com—
pany, while another director is on the board of the General Elec—
tric Company, these two powerful combinations dividing between
them also the entire business of the manufacture of electrical ap—
paratus in the United States. . . . There are also shareholders
in the London Underground Companies identiﬁed with these va-
rious trusts, and with others, such as the interests controlling the
public services in New York City.”
London and Chicago are today the storm centers of municipal
democracy, which is to say of all Democracy. They are threat-
ened by precisely the same men. Our Mr. Yerkes, who is wanted
by the stockholders of the North Side Traction lines to put into
the treasury millions of cash for millions of stock which he took
without the formality of payment, and to return millions he took
in “inside” proﬁts of construction, is there. The whole group
of American capitalists busily engaged in piKating the public util—
90 World Struggle Q- Trusts against the Towns
ities of all our cities is there—and here. In England which so
boasts of the integrity of its bench, they have persuaded the Lord
Chief Justice to espouse their cause against the people. What
they have attempted there, they certainly will attempt or have
attempted here.
Any one who thinks this Chicago traction matter is a simple
thing had better wake up. The mere transportation interests con-
cerned —- rates of fare, transfers, service of new districts, change
of equipment, etc., vital as they are, yet are the smallest part of
it. The struggle, in which London and Chicago are the critical
points, involves, when it is fully understood, all of modern liberty.
London, the greatest city in the world, is also, today, the greatest
in civic activity. It is the most conscious and the most intelligent
and most comprehensive exponent of the new democracy—the
democracy of the city. The progressive majority of the London
County Council have made that body the leader in civic democracy
of all the representative bodies of modern life. Naturally enough,
our syndicated politics and political economists tell the people they
must not pay any attention to municipal life abroad. The medieval
city was the crucible where the old feudalism was melted down;
the modern city is girding its loins for the overthrow of the latest
feudalism. Destiny has placed in the hands of Chicago the cham-
pionship in America of the new liberty, which is to spread from
the cities to the nations, as the result of this war between the
trusts and the towns.
This renaissance of democracy knocked at the door of Boston,
and Boston optimism woke up to build a “ municipal subway ”
but could not stay awake long enough to keep it municipal. The
people of New York aroused themselves and created the Rapid
Transit Commission to build a four-track municipal underground
road —— the best in the world. But the Rapid Transit Commission
of “leading citizens ” have proved but an annex of Tammany
and its corporate allies in the looting of the metropolis. No one
ever heard that the new democracy tried the gates of Philadelphia.
If it did, it was not heard by the residents of the " city of homes,”
who spend their municipal lives in a political sewer.
Now it is up to Chicago. Chicago meets the crisis better pre-
pared than any other city, European or American. It is ready
as no other city was. It has more facts, more legal power, more
a World Struggle - Trusts against the Towns 91
ferment. 'Its highly cosmopolitan population is the most demo-
cratic in the country. The call comes in our youth. Our social
life has not had time to stratify into encrusted layers of “ respect-
ability,” and we are free from the curse of the “leading families,”
who were distinctly the betrayers of New York, Philadelphia and
Boston. Some of the most prominent of such leading citizens as
we have are discovered to be Ali Babas themselves. The only real
problem in Chicago is, the people, as it was the only real problem
in New York, Philadelphia, Boston. If the people are of the
kind that can be fooled, betrayed, corrupted, they will ﬁnd foolers
and betrayers. If they want to do right, they will ﬁnd leaders of
righteousness. Democracy never came by the good-will of the
5f few. If Chicago is to be saved in this emergency, nest of whole
broods of future emergencies, it must save itself. Speciﬁcally,
the people must not leave the traction negotiations or settlement
to the Mayor and the Common Council. The issue is already lost,
if the people of Chicago have not the wit and virtue spontaneously
to organize to control the negotiations and settlement. They must
form themselves by districts, wards, occupations, and opinions,
into associations through which that sovereignty of theirs which
the government merely represents, can bring itself to bear with
decisive and irresistible force on the representative. The people
must constitute themselves into constituent assemblies which shall
give their public opinion, like powder in a gun, the force and aim
to reach its mark. Were the city government Solons in wisdom
and Samsons in strength, these issues are too large for it un-
aided. They are too large for any persons but the whole people.
There are too many suits, civil and criminal, to be prosecuted,
too many forces to be encountered, too many temptations to be
resisted, too many facts to be digested, too many ideas to be con-
sidered, too many things to be done, for any Hand, any Head, and
Conscience, but that of the Whole People to be adequate. The real
, government must come to the help of the representative govern-
‘ment. One day of the referendum is worth ﬁfty years of repre-
sentatives and leading citizens.
We, assembled as citizens, delegates of labor unions and fed-
erations. social organizations, reform bodies, and other non—parti~
san societies, seeking only common action for the common good,
urge all citizens interested in the welfare of the city to act at
92 World Struggle —— Trusts against the Tbwns
once; either by the use of organization already existing, like the
churches, commercial bodies, Board of Trade, and all others, or
by new organizations formed for this need: doing so eithervin co-
operation with us, or independently, as seems best to them. 'We
also urge similar actions in all the towns and cities of Illinois,
whose future is also involved in this issue, to the end that we may
mutually reinforce each other, especially at the capital of the state.
. I d
- in 6X
PAGE
Accident cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Allen Bill, passed and repealed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Common Council refuses ordinances under . . . . . . . . . . . . . . . . . . . . . . 36
legislation rules violated in passage . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Arnold, Bion J., on complete uniﬁcation . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
ideal system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
estimate of cost of ideal system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6, 61
plan for immediate relief. . . . . ,,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64, 65
aBad service of private tramways responsible for English municipal
E ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Boston subway built by municipality in hands of private traction. .. . . 9c
42
Bowker, R. R., on corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .
on metropolitan control in New York . . . . . . . . . . . . . . . . . 62
Brandeis, Louis D., on right of revocation of franchises . . . . . . . . . .. .. . 65
Bribery in Philadelphia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
British Electric Traction Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Cables displace horses . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 5
Capital, growth of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Car-barn vote . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22
Capitalization of street car companies in Boston . . . . . . . . . . . . . . . . . . . .. 4.2
Chicago betrayed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 50
can only win through eternal vigilance . . . . . . . . . . . . . . . . . . . . . . . . .. 91
poor street car service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..30_33
should employ permanently an expert . . . . . . . . . . . . . . . . . . . . . . . . .. 83
City council of 1883, corruption of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
gives zo-years’ extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
City ofﬁcials not alert for city’s rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 68
Civic federation committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 37
Civil service system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 47
Civic federation proves bargain not kept by companies . . . . . . . . . . . . . . .
Comparison of cost between public and private ownership . . . . . . . . . . . .45_47
Compensation for surrender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56, 57
Concealed accounts . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . 2
Constitutional rights of true property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Contracts against public policy void . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19
Contracts,“ rights of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..78, 79
Corporation Council in favor of companies . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Corporations more dangerous than foreign invaders . . . . . . . . . . . . . . . .. 84
Corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
‘5 in cities due to private corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
in Detroit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
in Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 29
in Philadelphia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22,4
in St. Louis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22, 8g
in English cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
in postofﬁce traced to private greed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Cost of carrying passengers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
._ Index ‘
PAGE
Dartmouth college case..... . . . . .
Dividends extorted...... . . . . . . . . 8
excess stolen money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Donald, Robert, inefficiency of English private tramways . . . . . . . . . . . . 82
American and English have identical interests . . . . . . . . . . . . . . . . . . 89
Dunne, Judge, political inﬂuence of private corporations . . . . . . . . . . . . . 24
Ellicott, city electrician before Municipal Ownership Convention. . .. . . 4
Eminent domain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15, 74
English law for taking possession of tramways . . . . . . . . . . . . . . . . . . . . . 4
False entries in construction accounts . . . . . . . . . . . . . . . . . . . . . . . . . . .24, 27
Fares, Paris, London, Boston, Blackburn, England . . . . . . . . . . . . . . . . . . 42
in Toronto . . . . . . . . . . a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
in Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Folk, District Attorney of St. Louis, gets penitentiary sentences for
eminent citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Franchise for ﬁxed term unsatisfactory . . . . . . . . . . . . . . . . . . .. . . . .. . .. . 65
Frauds of stockholders . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Fraud annuls contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Gary, Judge, on street railway case . . . . . . . 25
Grants and contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16, I7, 18
Grants accepted demand reciprocal duties . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Grosscup, Judge. lowers assessments . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . IO
on constitutional points . . . . . . . ... . . . . . . . . . . . . .. . . . . . . . . . .. .. . . . 15, 16
on trust questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . .51, 57
on injunction against collection of taxes. . . . . . . . . . . . . . . . . . . . . . . . 60
sets aside law ofIllinois . . . . . . . . . . 60
on “growing grant” . . . . . . . . . . . . . . .....I4,52
orders immediate improvements . . . . . .
address at Dixon . . . . . . . . . . . . . . . . . . . . . . . . . . 83
on ninety-nine-years’ act . . . . . . . . . . . 51
on right of city . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Growth of Chicago’s population . . . . . . 60
Harrison. Mayor, good work done by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
on Illinois Telephone and Telegraph Company. . .. . . . . . . . . . . . . . .72, 73
on temptation of traction legislators . . . . . . . . . . . .. . . . . . . . . . . . . . . . 72
refused to compromise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 54
Holmes, C. B., in iury bribery case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Holmes, Chief Justice of Massachusetts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Hooker, Geo. E.. on Illinois Telephone and Telegraph Company . . . . . . 73
Humphrey Bill failed to pass . . . . . . . . . . . . . . . . . . 15
Industrial Freedom League, England . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 49
Interstate conference law . . . . . . . . . . . . . . . . . . . . 72
Investigations by Frank A. Vanderlip . . . . . . . . . . . . .. . . . . . . . . . . . . . . 27
Jury bribing . . . . . . . . . . . . . . 26
Killed and wounded...................................... . . . . 85
Law can remedy traction wrongs . . . . . . . . . . 71
for English municipal ownership . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 50
of forfeiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7t
Leases never submitted to Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Legislative Voters’ League . . . . . . . . . . . . . . . . . 38
License imposed 1878 and evaded by companies. . . . . . . . . . . . . . . . .. . . . 9
v,“ 311?;
it 11
M‘
y
\
bk
I ndea:
I
PAGE
London most progressive city in municipal ownership. . . . . . . . . . . . . . . . 90
License on dogs yielded more than street car tax . . . . . . . . . . . . . . . . . . . . 9
License on peddlers yielded more than street car tax. . .5. . . . . . . . . . . . . . 9
Mandamus conﬁrmed by Supreme Court . . . . . . . . . .. . . . . . . . . . . . . . . . 56
Modern buccaneers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 85
Monopolies against all municipalities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
in Boston . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
in New York . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Municipal ownership, argument for, is not closed, because of dishon-
est opposition. .. ._ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 86
campaign for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
campaign of slander in England: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Chicago better prepared than other cities . . . . . . . . . . . . . . . . . . . . . ..90. 91
Chicago electric light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47, 48
Detroit electric light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
In England . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..45, 46
gas, tram, electric light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45. 4,6
reduces cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4547
tested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
has winning side . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 49
Municipal Voters’ League 1896 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 37
New York Rapid Transit tunnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2
Metropolitan Monopoly Commission . . . . . . . . . . . . . . . . . . . . . . . . . . .. 42
Ninety—nine-years’ Act passed 1865 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Io
authorizes only horse power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14
invalid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16
protested against by citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11
escaped from . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
vetoed by Governor Oglesby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12
veto supported by public meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
repealed .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
One city one fare in ﬁrst franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 59
Opportunity under Mueller Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 35
Over capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.- 6
Plan of settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Philadelphia gas works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Police powers, regulation of streets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Power of city ample to compel companies to give immediate relief. . . . 68
to protect public should be enforced . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7o
purchase by city . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79. 80
Proﬁts of companies enormous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7, 8
that are enormous stolen from minority . . . . . . . . . . . . . . . . . . . . . . . . . 27
excess . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
i Public Opinion Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 38
Political power of traction interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21, 22
Receivers of Union Traction Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
“ Reform Council” votes for Telephone and Telegraph Company. . 74
Referendum League . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Referendum vote on municipal ownership . . . . . . . . . . . . . . . . . . . . . . . . .. 38
I ndea:
PAGE
Regulation a failure in Cologne, Germany . . . . . . . . . . . . . . . . . . .. . .. 44
in Boston . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r 42
inNewYork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .., . . . . . . . . . . . . .. 42
in Paris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2
in Toronto . . . . .4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 43
in interstate commerce law after thirty years’ trial . . . . . . . . . . . . . . . 87
Renewal of franchises unnecessary for immediate relief . . . . . . . . . . . ..65, 66
Revocable grants, Boston . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . 66
Sikes on desperate men playing for “ big game ” . . . . . . . . . . . . . . .. . . . . . 30
Smith, Edwin Burritt, on public service corporations . . . . . . . . . . . . . . . . .23, 30
Special Common Council committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..36, 37
Stolen property in innocent hands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Street car companies books examined . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 37
ordinances framed by companies attorneys . . . . . . . . . . . . . . . . . . . . .. 25
Street railways take streets without grant . . . . . . . . . . . . . . . . . . . . .26, 52, 56, 59
Supreme Court on property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 68
decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i . . . . . . . . . . . 77
Surrender offered by companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54, 55
Taxation, evasion of. . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, IO
low assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Io
thirteen companies not assessed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 59
value of unassessed property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Teachers’ Federation, formed 1897 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 59
discovers and enforces law on taxation of corporation . . . . . . . . . . . 59
Traction men not experts in traction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81, 84
Traction millionaires before court of public opinion . . . . . . . . . . . . . . . .. 2o
Underground trolley in London . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
in other cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31
Washington ﬁrst city to use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
United States Construction Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27
Valueof franchise... . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7o
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FINANCIAL AND ADMINISTRATIVE PREPARATION
\
FOR MUNICIPAL OWNERSHIP

< Y.
By DELOS FYQ’WILCOX, PH .1).

An address before the National Public OwnershipConference, at Chicago, 111., November 25, 1917.
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Public Ownership Leagnsi
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EVENING sraa it:u:1.-t::i:~~.:a.
Washington, C.


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FINANCIAL AND ADMINISTRATIVE
PREPARATION FOR MUNICIPAL
OWNERSHIP
BY DELOS F. WILCOX, PH.D.1
' l ‘HE municipal ownership and operation of public utilities as a
policy of government is supported by a philosophy, or perhaps
I should say, by a series of philosophies. A great many people
- believe that rates can be lowered, service improved, and contributions to
the city treasury increased if utilities are operated as municipal functions.
To them the philosophy of municipal ownership is a philosophy of cheap-
ness. But if in any particular case it is shown that the cost of the service
will be less under private than under public ownership, logic compels
them to abjure their faith, at least so far as that case is concerned. They
do not believe in municipal ownership as such; economy and low cost are
the gods they worship.
THE PHILOSOPHY OF THE LAST RESORT
To other men the policy of municipal ownership rests upon the philos-
ophy of the last resort. They regard it as an evil, but as one that is nec-
essary or that is likely to become so at some future time. They believe
in the ultimate policy of municipal ownership as a fact, albeit a regrettable
. one. To them the public ownership movement is one to be acquiesced in
as a theoretical ultimate policy, but one to be hindered and postponed as
much as possible by an effort in every particular case to ﬁnd some other
way out of the existing difﬁculties. It is easy to see that a group of
municipal ofﬁcials having this sort of faith in municipal ownership will
not make rapid progress in bringing it about, unless the course of events,
as it were, takes them by the scruff of the neck and shakes them into
obedience. In other words, such leaders have to be driven into battle
by their troops.
Men of still another class advocate municipal ownership as a means of
freeing cities and city politics from the domination of special interests.
They allege that not only the corruption of municipal government but
also its inefficiency in the past are to be laid at the door of public service
corporations seeking special privileges in the public streets. These men
may not lay particular emphasis on the economic side of municipal owner—
ship; they may even be willing to admit that operating costs are likely to
be increased rather than diminished under municipal management, but
they say that whatever the toll of municipal extravagance and inefﬁciency
may be, it can well be paid as the price of getting rid of public service
corporations. These men as well as the others I have mentioned hold a
1 Consulting Franchise and Public Utility Expert, Elmhurst, New York City.
2 FINANCIAL AND ADMINISTRATIVE PREPARATION
philosophy of expediency; for if in a particular city at a particular time
a public service corporation exists which has dealt honorably with the
city and has abstained from interference in politics, their reasons for
favoring municipal ownership melt away and they, too, become acquies-
cent in the continuance of the existing system; they may even be aggres-
sive in its favor. ‘
THE PHILOSOPHY OF GOOD SERVICE AND GOOD CITIZENSHIP
A philosophy of municipal ownership and operation that is broad enough
to furnish a stable foundation for a public ownership league must be one
that is to a certain extent independent of the vicissitudes of time and
place. It must take into consideration the fundamental and permanent
relations of things and must not be swerved from its purpose by mere
,questions of immediate economy or by fears with respect to the oﬂ‘icial
acts of deep-dyed villains who, though members of the opposing political
party, happen at the time to enjoy the conﬁdence of the majority of the
people. I do not mean to say that expediency has no place in municipal phil-
osophy, but I maintain that before an organization such as a public owner-
ship league has a right to exist there must be a group of men who see the
higher expediency of the ultimate policy that is to be adopted as the chief
item in the league’s program. What, then, is the sufficient philosophy
of municipal ownership and operation? I believe that it rests upon a
recognition of the inherent vital relations between the modern city and
its public utilities, with respect not only to the best means of securing
utility service, but also with respect to the best means of making citizens.
It would be useless to deny that the primary consideration in the de-
velopment of a policy with respect to public utilities is the need for ade-
quate service at the lowest practicable cost. Public utilities come into
existence for service, and no matter what advantages or disadvantages
may attach to a particular policy with respect to their ownership and
operation, the consideration of this policy will be essentially futile unless
the requirements of service are taken care of by it. Service is like charity;
it may be truly said that though municipal ownership speak with the
tongues of men and of angels, if it gives not service it is nothing. I
emphasize this point merely to avoid any possible misunderstanding
with respect to fundamental principles. Service is the essence of the
business, and may be regarded as in a certain sense entirely neutral as
between conﬂicting theories of ownership and operation. In an impor-
tant sense, the exercise of the police power of the state in the regulation of
public utilities is a recognition of the fundamental character of service.
The supreme court of Illinois only a few months ago, in the O’Connell
case, said: “It is immaterial to the public what person or corporation
operates the railways, or what disposition is made of the proﬁts. "1
1 Chicago V. O’Connell, 278 Ill. 591, decided in April, 1917.
FOR MUNICIPAL OWNERSHIP '3
As thus expressed, the philosophy of regulation conﬁnes itself to service,
and the point I wish to make is that the larger philosophy of municipal
ownership and operation includes the smaller philosophy of regulation.
It regards service as the primary but not the exclusively important de-
sideratum in the construction and operation of public utilities. Its
aims include adequacy of service, economy of cost, avoidance of corrup-
tion and political interference, constructive co-ordination of the physical
development of cities, and above all the welding of civic spirit into an
eﬁective unity. Government itself is a means of service, and its ultimate
product is the citizen. The relationship of municipal ownership and
operation to the character of the city and to the character of its citizens
is after all the distinctive concern of our philosophy. As municipal owner-
ship men, we maintain that this policy not only insures adequate service
at reasonable cost—using these terms in the narrow sense—but also that
it is an essential factor in the development of a physically perfect city
and in the creation of a politically perfect citizenship. Public utilities
offer to cities the great opportunity for civic co-operation that is essential
in the development of intelligence and loyalty in the municipal house-
hold. 5
It is commonly supposed that municipal ownership sentiment is in-
creasing; this in spite of the fact that the actual progress in the munici-
palization of public utilities in this country is very, very slow. We
know that a very great bulk of more or less ephemeral literature, most of
which is brought out under the patronage of the great dukes of special
privilege, has been spread broadcast in this country over a long period
of years for the purpose of discrediting municipal ownership, especially
by making it appear that great numbers of municipal undertakings either
have failed entirely, or else are able to maintain the appearance of success
only by the use of incomplete and misleading methods of bookkeeping.
It may be that municipal ownership sentiment is increasing as the years
go by, but the only thing that will prove progress in the municipal owner-
ship movement is progress; and a sober consideration of facts makes it
clear that enormous difﬁculties in the way of the general adoption of the
municipal ownership policy are present, and that some of them are in-
creasing in their potency from year to year. I
THE STATES FAVOR PRIVATE OWNERSHIP
The ﬁrst difﬁculty, of course, is the niggardly scope of municipal func-
tions as deﬁned by the laws under which cities are organized. It seems
monstrous that even now the strongly prevailing tendency of legislation
almost everywhere is to hinder and discourage the adoption of this policy.
It may still be said, with very slight qualiﬁcation, that the states strongly
favor private ownership and operation and that where the laws with
4 FINANCIAL AND ADMINISTRATIVE PREPARATION
respect to utilities have been liberalized so as to permit municipal owner-
ship and operation, this liberalization has been the result either of the
struggle for municipal home rule or of the insistent demand by certain
cities that they be given the powers which have heretofore been denied
them.
~Numerous obstacles have also been placed in the way of municipal
ownership and operation by the acts of the cities themselves in the grant-
ing of franchises, by which public service corporations have become in-
trenched in the streets and are protected from dislodgment by the sacred
obligations of contract. The cities have often been to blame for the
granting of improvident franchises, but it is probably true that the con-
tractual obstacles in the way of municipal ownership have resulted more \
frequently from direct state action, or from the lack of power in the
municipal authorities to pursue a proper alternative, than from the ignor-
ant or deliberate betrayal of civic interests by the local authorities them-
selves.
The legal difﬁculties in the way of a municipal ownership'program may
be removed by legislation. The contractual difﬁculties can be overcome
by the exercise of the power of condemnation, if no other course is open.
There remain, however, the ﬁnancial diﬁ‘iculties, which are greater and
more 'piersistent than the others. Municipal ownership men often appear
to be deluded by the notion that the credit of cities is unlimited and that
by its use municipal ownership can be obtained over night without any
trouble. They seem to think that the original purchase price of a public
utility is comparatively unimportant so long as the city takes possession
of it; even though no deﬁnite provision is or can be made for the pay-5
ment of the price, except through the illusory use of municipal I. O. U. ’s-
THE MORTGAGES ON THE STREETS MUST BE PAID OFF
Municipal ownership does not come by shouting. It does not even
come by voting. It must come, if it comes at all, by cities learning how
to do the job and making ﬁnancial preparation for it. Twenty years ago
San Francisco adopted a charter demanding municipal ownership of all
public utilities. It is still paying water rents to a private company.
Chicago triumphantly elected a mayor on an immediate municipal own--
ership platform more than ten years ago, and to-day it appears to be
farther than ever from the realization of the program it then announced. Int
1913 Detroit voted four to one for municipal ownership of street railways,
but the ﬁrst time that a deﬁnite plan for carrying out this program was.
presented it was beaten by a combination of the extreme “right ” and the
extreme. “left.” New York City has just elected by an unheard-of
majority a mayor pledged to municipal ownership of all utilities, but if
history repeats itself, many moons will pass before the tremendous ob-
stacles in the way of any considerable extension of municipal ownership’
FOR MUNICIPAL OWNERSHIP 5
in New York have been removed. To municipalize all the local utilities
of the country at one time would require that the cities ﬁnd about 812,-
000,000,000 somewhere. This is four times their existing indebtedness,
enormous as that is. If all the difﬁculties in the way of borrowing this
money were removed, still we should not have complete municipal own-
ership until the bonds were paid. We cannot blink the fact that by our
shortsighted7 policy we have enabled private corporations to secure a
mortgage for these billions upon the public streets of American cities;
and these streets will not be free, and municipal ownership will not be an
accomplished fact, until this mortgage has been paid off. The money
will have to come out of the rates- paid by the consumers or else out of
taxes.
What the public ownership movement needs is a thorough course in
physical, intellectual and moral training. We have to prove our case
theoretically and at the same time devise means for making practical
progress with it. I shall venture to suggest what might be called an
order of the day for men enlisted in the cause of municipal ownership. I
now refer to men who have a philosophy of municipal ownership, not to
mere opportunists who are for it to-day in general, and against it to—
morrow in particular.
THE FIRST PLANK IN A MUNICIPAL OWNERSHIP PROGRAM
The‘ﬁrst thing for municipal ownership men to do is to take an inter-
est in the operation of the utilities owned by the cities in which they live.
For the past three years I have been deputy commissioner of water
supply, gas and electricity of the city of New York.1 It is the function
of our department to maintain and operate the largest municipal owner-
ship enterprise in the United States, if not in the world. But the New
York water works have been operated in large part by men who had little
or no faith in municipal ownership as such, and who, therefore, took
small pains to establish the water service upon a basis that would appeal
to the pride and love of the citizens of New York. With $360,000,000
invested in municipal water works, New York still tolerates the existence
in its midst of ﬁve large private water companies serving 400,000 people,
and although the operation and development of the municipal plant are
bristling with opportunities for the most effective service on the part of
men who believe in municipal ownership as a community policy, I cannot
say that during the time of my connection with the department any civic
organization, public ownership committee or group of citizens has shown
an intelligent interest in making the operation of the water works a suc-
cess in the broad aspects of a public ownership enterprise. It is a fault of
municipal ownership shouters that they give little thought to the owner-
ship that we have, and are often neglectful of the concrete next steps by
1 October, 1914, to January, 1918.
6 FINANCIAL AND ADMINISTRATIVE PREPARATION
which the municipal ownership program can be pushed forward. I
repeat, therefore, that the "ﬁrst thing for a municipal ownership man to
do is to pull off his coat and see to it that the utilities already owned and
operated by his city are so conducted as to be a living, irrefutable proof
of the soundness of his philosophy. _ .
At the present time the failures of municipal ownership and operation,
whether absolute or relative, are due to methods and practices for which
' the people of the cities are themselves to blame and which in most cases
could'be effectively changed if the sincere advocates of municipal owner-
ship were to make a united and intelligent effort to that end. What are
these faulty methods and practices?
JOBS GIVEN TO POLITICAL DERELICTS
In the ﬁrst place, the department operating the utility is often made
a dumping ground for political derelicts to whom the politicians who
happen to have the upper hand at the particular time desire to have jobs
given. Sometimes, indeed, the operation of a public utility is controlled
by men whose chief purpose in holding ofﬁce is to draw the salaries at-.
tached thereto, and to utilize the power which public ofﬁce gives to distrib-
ute favors to their personal or political friends. Such practices are. not
by any means unknown in the private operation of public utilities, but
they are fatal to' successful public operation because they run directly
counter to the fundamental purposes for which utilities are instituted,
and particularly to the purposes for which municipal operation as dis-
tinguished from private operation has been undertaken. Nothing can
be so destructive of municipal ownership and operation, both practically
and theoretically, as the prostitution of public functions to the further-
' ance of selﬁsh private ends. -
In the second place, we ﬁnd that in many cities political or other emer-
gencies cause frequent changes in the personnel of the public ofﬁcials
charged with responsibility for the construction and operation of public
utilities. This work is technical and non-political. It is workthat can-
not be intelligently or effectively performed by men without experience.
It is work that requires continuity of purpose and procedure. It is,
' therefore, an especially black crime against the policy of municipal own-
ership to remove for political reasons men who have once become familiar
with their work and proved themselves to be progressive and efﬁcient in
its performance. ‘
BAD REPORTING
In the third place, municipal ownership undertakings in this country
* are too often careless of their ﬁnancial reports, and, either through igno-
rance or through the desire to make a good showing, do not in fact present
to the taxpayers and consumers a true statement of their ﬁnancial transac~
\
FOR MUNICIPAL OWNERSHIP 7
tions. Often slipshod methods are followed with respect to the determi-
nation of the cost of service, as well as with respect to the establishment of
the value of the services rendered, especially where these services are ren-
dered to other city departments, or to the public at large without direct
compensation. I refer especially to the frequent failure of cities to charge
to the cost of operation of municipal water works proper allowances for
depreciation, legal expenses and taxes; and, on the other hand, to their
failure to credit municipal water works with the value of the free services
rendered for ﬁre protection, for the water used on the streets and in public
parks and public buildings, and for water supplied free to private institu-
tions exempted from the payment of water rates. One of the ﬁrst req-
uisites of successful municipal operation is a true, complete and simple
ﬁnancial statement, recorded and published from time to time for the
information of all the citizens of the city, since they are the true stock—
holders of municipally-owned utilities.
UNJUST AND DISCRIMINATORY RATES
In the fourth place, municipal authorities often neglect in the most
ﬂagrant manner the primary requirements of justice with respect to \the
charges made for the service. Here again, I refer primarily to water
works, which in this country at the present time constitute the great bulk
of municipally-owned utility enterprises. If any one thing is incumbent
upon a municipality in the operation of a public utility, it is to see that
. the charges for the service are established upon an intelligent and just
basis without unfair discrimination among consumers. There certainly is
no magic in municipal ownership that relieves it of this fundamental re-
quirement with respect to the operation of public utilities. Yet we ﬁnd
in New York and elsewhere the greatest neglect of scientiﬁc rate-making
and the bitterest and most unreasoning opposition to the installation of
meters as an eﬁective device for properly conserving the water supply and
at the same time distributing the burden of its cost among the consumers
according to the use they make of the service. In New York the political
party that swept the city at the recent election by an enormous majority,
placed before the people this year1 a platform which included a sweeping
declaration for municipal ownership and operation of all public utilities.
And yet the board of aldermen, which at the time was completely con-
trolled by this same party, declared during the early part of the campaign
that meters should not be introduced into any class of apartment houses,
and that in its judgment water should be as free as air. This declaration
was made in an ofﬁcial report in spite of the fact that the city of New York
has invested $360,000,000 in water works and is compelled to spend ap-
proximately $16,000,000 a year in the operation of its water plant and in
payment of interest and sinking fund charges on water works bonds
8 FINANCIAL AND ADMINISTRATIVE PREPARATION
now outstanding. The policy of municipal ownership cannot be furthered
by passionate declarations based upon the assumption that public utility
service costs nothing. In this case the board of aldermen, which has the
power to establish water rates, did not propose to abolish them, but put
forth the curious declaration referred to as an excuse for not permitting
the substitution of meters and meter rates in place of an existing system
of frontage and frontage rates, whose absurdities and gross inequalities
are the despair of the men who are trying to administer the water de-
partment as a public service.
A JOB FOR LOCAL PUBLIC OWNERSHIP COMMITTEES
What practical steps then, can municipal ownership men take to see
that the faults too often exhibited in the actual operation of utilities by
cities shall be removed? I would suggest that in every city a permanent
public ownership league or committee be organized, whose primary pur-
pose shall be to keep itself informed as to the actual workings of the city
departments in charge of public utilities, and to keep constantly before
the authorities of the city government and the people at large the im-
portance of ( 1) the absolute exclusion of politics from the operation of
municipal utilities; (2) continuity of intelligent and faithful service; (3)
complete and carefully analyzed ﬁnancial statements showing the true
cost of construction and operation, and the true revenues earned by the
plant, and (4) a scientiﬁc schedule of charges calculated to produce
sufﬁcient revenues and at the same time to distribute the burden of the
cost of the service among the consumers without unjust discrimination.
The efforts of a league or a committee organized along the lines here
suggested, if intelligently and persistently followed up, are sure to be
successful in a great majority of cases, and, if successful, will do more for
the ﬁrm establishment and rapid extension of the policy of municipal
ownership in this country than any conceivable amount of cart-tail
oratory, pamphleteering and book-writing devoted to the glowing ad—
vantages of municipal ownership of street railways and gas plants, with—
out any reference to or care for the policies which are actually being
carried out in the operation of municipal water works or electric light
plants. The proof of the pudding is in the eating, not in the promises of
the cook.
LOCAL AGENCIES FOR LEARNING HOW
The second thing for municipal ownership men to do is to see to it that
the city sets about learning how to control and operate other public
utilities—those that are still in private hands. Public utility services
are a necessity of urban life. These services are not going to stop. In
a busy world the men who know how are the ones who get the job of doing
1 1917.
FOR MUNICIPAL OWNERSHIP 9
the necessary things, and until cities establish and maintain public utility
bureaus for the sole purpose of studying utility problems, enforcing fran-
chise contracts, and learning how to do the job, effective progress in the
direction of further public ownership will surely be slow. Los Angeles,
New Orleans and Wilmington, Delaware, have local public utility com-
missions. St. Louis and Kansas City, Missouri, had them before the
advent of exclusive state regulation. Seattle has a department of public
utilities; Cleveland, Cincinnati and Dallas have city street railroad com-
missioners ; Chicago has its board of supervising engineers and committees
on local transportation and on gas, oil and electricity; Kansas City, its
board of control; Philadelphia, its transit director; Boston, its transit
commission; Minneapolis, its gas inspectoI and its street car inspector;
Houston, its director of public utilities; and New York City, its bureau of
franchises and, under the present administrationl, its public utility ad-
visor to the mayor in the person of the city chamberlain. These are some
of the local agencies established in recent years to help cities to perform
their functions of public utility control and to develop for them a body of
expert knowledge and a corps of expert men preparatory for the extension
of municipal functions in the utility ﬁeld. Few of the particular agencies
referred to “ ﬁll the bill” entirely, but they are steps in the right direction,
and municipal ownership men should see that such agencies are estab-
lished everywhere and their functions vitalized. It is a burning shame
that cities should be so careless of their own interests and so niggardly in
their ﬁnancial policies as not to develop and retain in service on the public
side of utility controversies a body of experts fully able to cope with the
highly paid employees of the public service corporations. It is not neces-
sary for cities to pay as much as private corporations do in order to get
the same quality of service, for there are many able men in this country
who would prefer to work on the public side, for reasonable compensation
and reasonable security of employment. It is one of the essential condi-
tions of progress in municipal ownership that cities should have in their
employ men who care and who know how; otherwise, the initiative at
the critical stages of public utility development when the great oppor-
tunities for taking forward steps present themselves, will remain with
the private corporations, and the cities will go on suffering the results
of unreadiness. Opportunities knock at the door, but Father Knicker-
bocker and the other city fathers are still fast asleep, and the opportunities
pass by.
DEFINITE PROGRAMS IN DEFINITE PLACES NEEDED
The third thing for municipal ownership men to do is to see to it that
their policy is adopted in deﬁnite places as a deﬁnite program of municipal
1 During the mayoralty of John Purroy Mitchel, which came to an end December 31,
1917.
10 FINANCIAL AND ADMINISTRATIVE PREPARATION
endeavor and is not left to float like a ﬂeecy cloud in the empyrean, to be
melted by the ﬁrst touch of the sun’s hot rays or vanquished by a zephyr.
Legal and ﬁnancial preparation for municipal ownership must be made.
Delays are dangerous. In respect to this, it may surely be said that now
is the accepted time, now is the day of salvation. It is not enough that
municipal home rule with respect to public utilities be established and
that the door be kept legally open for the determination of the city’s
policy at some future time. American cities have had plenty of time to
think the matter over. They are old enough and big enough to reach a
decision and establish their policy. A vote for postponement is a vote
against municipal ownership. For the obstacles in its way are multiply-
ing and they can never be overcome except by a social cataclysm, unless
we begin deﬁnitely to put our house'in order for the enterprise. It is the
fault of the Wisconsin type of indeterminate permit, that it leaves the
way open for municipal ownership but practically precludes any prepara-
tion for it. Single—taxers are sometimes opposed to any scheme by which
utilities can be made to pay for themselves out of earnings. But while
they spend their time arguing for the land tax as an inexhaustible source
of municipal revenue—for operating expenses and capital investments
alike—the ﬁnancial mills continue to grind their grist of stocks and bonds
and the mortgages on the public streets continue to pile up. I do not
disagree with their fundamental theory, but I deem it inexpedient and
probably fatal to the municipal ownership program to postpone it until
the tax millennium has been achieved.
PERPETUAL FRANCHISES MUST BE DONE TO DEATH
Speciﬁcally, deﬁnite action should be taken forthwith to get rid of
perpetual franchises and, wherever practicable, to start machinery for the
amortization of the purchase price. Cities should never sleep until the
perpetual franchise has been done to death. To this end, municipal
ownership men should not acquiesce in the granting of further concessions
to perpetual franchise—holders unless they are willing to surrender their
existing rights and come under modern grants with municipal ownership
as the goal. This program must be adhered to even at considerable
temporary inconvenience to the public, but we cannot afford to play a
waiting game. We must be aggressive in our attacks and our persuasions,
for more waiting and refusal to grant the additional privileges that are
needed for the expansion and improvement of service will result in disaster
every time. No city’s foresight is keen enough or its patriotism strong
enough to wear out by mere delay the corporations that are already
intrenched in the streets and that are rendering a public service which
cannot be interrupted.
Where perpetual franchises cannot be called in by barter and persuasion,
FOR MUNICIPAL OWNERSHIP 11
cities should seek to enlarge their powers of condemnation and to perfect
the procedure by'which the value of public utility property taken for public
uses is determined. The cost of real estate now acquired by cities through
condemnation proceedings is often scandalous. When property already
devoted to a public use is taken for the purpose of continuing the use
under public auspices, the price ought not to be swelled by an extra allow-
ance for the unwillingness of the owner to part with it. He has already
devoted it to public use, and by what right does he object to its being
taken by the city for the same use? Also, where land necessary for the
operation of a public utility is acquired along with the rest of the property,
its value should be determined not by the highest economic use to which
it could be put for other purposes, but by its reasonable value for the use
to which it is already devoted subject to the burdens of its obligation to
continue in the public service. These are matters that municipal owner-
ship men should take up everywhere as parts of their program of insistence
upon the adoption of deﬁnite, constructive, forward-moving policies.
WATCH TO BE KEPT ON VALUATION PROCESSES
In the fourth place, municipal ownership men should watch with lynx-
eyed vigilance the work of valuation now being carried on by the inter—
state commerce commission and by the state and local utility commissions;
for at the present moment the particular hurdle that is being set up for
the municipal ownership movement is inﬂated valuations fortiﬁed by
clever theories and sanctioned by accelerated judicial ﬁndings. The
great thing for which public service corporations everywhere and always
strive is to enlarge their recognized investment, their capital account.
From the public point of view this is the most dangerous of all tendencies.
Municipal ownership men should everywhere and always adopt the
slogan: Reduce the capital account, squeeze the water out, clip oﬁ the
halo of intangibles, discard the mummies of ancient mules, bring capital-
ization down to bed rock and keep it there.
In the ﬁfth place, municipal ownership men should take an interest in
rate proceedings. Just now the public service corporations are on the
anxious seat. They are being pinched by the increase in the cost of mate—
rials and labor entering into the service which they are required to render.
A few years ago cities everywhere were demanding lower rates. Now
we have reached the point where public utilities everywhere are demand-
ing higher rates. The street railways are all trying to break through the
upper crust of the ﬁve-cent fare. Municipal ownership men ought not
to ﬁght blindly for low rates, without regard to the necessary cost of the
service rendered, but they should take advantage of the companies’
present necessity to drive bargains with them. They should refuse to
consent to rate increases unless the companies are willing to surrender
12‘ FINANCIAL AND ADMINISTRATIVE PREPARATION
their antiquated franchises and put themselves in a position where
they cannot capitalize against the public the concessions they receiVe
from it. Until we are ready to provide public utility service free or to
subsidize it out of taxation, rates should be sufﬁcient to pay for ﬁrst-class
service, but every concession, even those that are based on justice, will
work out against the city unless the fundamental relations between the
city and the utility are made right. .
EXCLUSIVE STATE CONTROL FULL OF DANGERS
In the sixth place, municipal ownership men should oppose with all their
strength the development of the theory of exclusive state control over
public utilities through the agency of public service commissions. If the
function of controlling the construction and service of public utilities is
entirely taken away from the local authorities and vested in the state
government, the inevitable result will be the postponement of municipal
ownership and the atrophy of the organs of the city government which,
if properly used, would gradually develop the expert knowledge and
ability necessary to enable cities to cope with the problems of municipal
ownership. But this does not warrant a blind and undiscriminating
opposition to state utility commissions. It does not even warrant oppo-
sition to a limited control by state commissions over municipal ownership
enterprises. Every extreme and unreasonable demand made by munic-
ipal ownership men merely checks the progress of their movement. It
is reasonable, and it is likely to prove advantageous even from the munic-
ipal ownership standpoint, for a state commission to be given jurisdiction
over the methods of accounting and the forms of reporting of municipal
as well as private utilities. State commissions must have jurisdiction,
too, over the operation of municipal utilities outside of the city limits and
must be in a position to co-ordinate and harmonize the interests of dif-
ferent municipalities in which the same utility is normally operated as a
unit. Municipal ownership men cannot afford to take a false position
with respect to state regulation. Their program is one that requires a
high degree of civicrco-operation, and they should seek to utilize both
state and local agencies for the performance of the respective functions for
which they are best ﬁtted.
Instead of dealing in generalities and ignoring the objections advanced
by those who are sincerely opposed to municipal ownership, the time has
come when its advocates should turn their attention to the preparation
and adoption of speciﬁc programs for the purpose of overcoming all actual
difﬁculties and all legitimate objections, crystallizing public policy and
setting in motion the ﬁnancial machinery that will gradually but surely
transform the great inert mass of alien capital now in the public streets
into a living organism of common wealth devoted to common service.
ornnn PAMPIILETsnELATINe TO PUBLIC UTILITIES"
, » . ’ r .7 BY rHE—sAME AUTHOR
“Elemejotsof a Constructive Franchise Policy}! Address before the National Municipal
~ League at Buffalo, November“ 15, 1910. Printed as chapter 8, of King’s “The
“Regulation of Public Utilities.”
“Protection for Municipal Franchises, with Model Sections for a Commission Govern-
ment Charter.” Prepared for Board’s “Digest of Short Ballot Charters,” 1911.
“Suggestions for a Model Street Railway Franchise.” Report of James W. S. Peters
and Delos F. Wilcox, subcommittee of the Committee on Franchises of the National
, Municipal League, presented at Richmond, Va., November 16, 1911. Printed as
chapter 9 of King’s “The Regulation of Public Utilities.”
“Public Utility Advice fromlthe Public Point of View.” Reprinted from The American
City, March, 1913. - , - - t
“The New York Subway Contracts.” Reprinted from the National M nnicipal Review,
’ .for July, 1913.
“Municipal Home Rule and Public Utility Franchises.” Report of the Committee on
Franchises~ of the National Municipal League, Delos F. Wilcox, Chairman, sub-
mitted at Toronto, November 15, 1913.
“Effects of State Regulation upon the Municipal Ownership Movement.” Reprinted
from The Annals for May, 1914. '
“Fundamental Planks in a Public Utility Program.” Address before the Conference of ‘
American Mayors, Philadelphia, November 13, 1914. Reprinted from The Annals
for January, 1915. ’
“Taxation of Public Utilities.” Reprinted from The Annals for March, 1915.
“The in Public Service Regulation in New York.” Reprinted from the N aiional
M nnicipalﬁeview for October, 1915.
“The Cost of Water for Fire Protection.” Reprinted from The American City for
February, 1916. '
“Principles as to Franchise Values.” Address before Valuation Conference, Philadelphia,
November 11, 1915. Reprinted from The Utilities Magazine, for January, 1916.
“The Future of Public Utility Investments.” Reprinted from The Annals for N ovem-
ber, 1916. »
“Public Regulation of Wages, Hours and Conditions of Labor of the Employees of
Public Service Corporations.” Report of the Committee on Franchises of the
National Municipal League, Delos F. Wilcbx, Chairman, presented at Springﬁeld,
Masa, November 24, 1916. Reprinted from the National M anicipal Review for
January, 1917.
“Shall’the Interstate Commerce Commission and the State Public Utility Commissions
Fix Wages on the Railroads and on Local Public Utilities.” Reprinted from The
Annals for January, 1917.
“Experts, Ethics and Public Policy in Public Utilities.” Reprinted from the National
M nnicipal Review for July, 1917.
“The Regulation of Private Water Companies in New York City.” Address before
the ‘New England Waterworks Associatinn, Hartford, Conn, Sept. 12, 1917.
Reprinted from the Journal of the Association for December, 1917.
“Recent Developments in the Public Utility Field affecting Franchise Policies and Mn-
nicipal Ownership.” Report of the Committee on Franchises of the National Mu-
nicipal League, Delos F. Wilcox, Chairman, presented at Detroit, November 22,
1917 . \ Reprinted from the National Municipal Review for March, 1918.
“Problems of Reconstruction with respect to Urban Transportation. ” Address before
the Reconstruction Conference called by the National Municipal League, Rochester,
N. Y., November 21, 1918. Reprinted from the National Municipal Review for
January, 1919.
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m CONSTITUTIONAL CONVENTION
' . 1917 '


BULLETIN No. 22
MUNICIPAL OWNERSHIP IN THE
UNITED STATES I

SUBMITTED TO THE' CONSTITUTIONAL CONVENTION BY TI-IECOM-
MISSION TO COMPILE INFORMATION AND DATA FOR THE
' ,USE OF THE CONSTITUTIONAL CONVENTION

BOSTON
WRIGHT & POTTER PRINTING 00.. STATE PRINTERS
32 DERNE STREET


W'M , a”! 1
ﬁll: @nmmnnmsalifg nf Wassadgusnﬂa


THE CONSTITUTIONAL CONVENTION
1917


BULLETIN No. 22
MUNICIPAL OWNERSHIP IN THE
UNITED STATES

SUBMITTED TO THE CONSTITUTIONAL CONVENTION BY THE COM-
MISSION TO COMPILE INFORMATION AND DATA FOR THE
USE OF THE CONSTITUTIONAL CONVENTION

BOSTON
WRIGHT & POTTER PRINTING CO., STATE PRINTERS
32 DERNE STREET
1917


THE COMMONWEALTH OF MASSACHUSETTS

COMMISSION TO COMPILE INFORMATION AND DATA
FOR THE USE OF THE
CONSTITUTIONAL CONVENTION
ROOM 426, STATE HOUSE
BOSTON


THE COMMISSION

WILLIAM B. MUNRO, CHAIRMAN
LAWRENCE B. EVANS, VICE CHAIRMAN
ROGER SHERMAN HOAR

HENRY WARD BIRD, SECRETARY


CONTENTS.
I. Deﬁnition, .
II. Arguments for and against Municipal Ownership, .
Conclusions of the National Civic Federation’s Commission
on Public Ownership and Operation,
III. Development and Present Status of Municipal Ownership,
Municipal Ownership of Waterworks, . . .
Municipal Ownership of Lighting Plants, . .
Municipal Ownership of Transportation Facilities,
Docks and Wharves, . . .
Markets, . . .
Municipal Ice Plants, .
Miscellaneous,
,IV. Municipal Ownership in Massachusetts, .
Legislation relating to Municipal Ownership, .
Waterworks and Lighting Plants, . . . . . .
Exemption of Water and Lighting Bonds from Debt Limit,
Public Markets, . . . . . . . . .
Extent of Municipal Ownership in Massachusetts,
Water Supplies, . . . . .
Public Lighting,
Markets, .
Street Railways,
V. Constitutional Provisions relating to Municipal Ownership,
South Carolina, . . . . . . . . .
Virginia, . . . . . . . . . . *5
Oklahoma and Arizona,
Colorado, .
California,
Ohio, . . .
Michigan, . . . . . .
Summary of Constitutional Provisions,
APPENDIX. -— Typical Constitutional Provisions relating to Munici-
pal Ownership, . . . . . .
Bibliography,
4~7"/7;.
27
30
32
MUNICIPAL OWNERSHIP IN THE UNITED
STATES.
I. DEFINITION.
The term municipal ownership as commonly used includes
both the ownership and operation of public utilities or other
services which have a direct bearing upon the public health or
convenience, such as waterworks, lighting and heating plants,
street railways, ferries, docks and Wharves, markets and so on.
In some cases there may be ownership without operation, as in
Philadelphia, where the city owns the gas plant but has leased
it to a private company for maintenance and management.
Such an arrangement, however, is exceptional, so. that for all
general purposes municipal ownership may be regarded as in-
cluding direct operation by the city as well as ownership.
/
II. ARGUMENTS FOR AND AGAINST MUNICIPAL OWNERSHIP.
The arguments generally advanced in favor of municipal
ownership are: (1) that such public service enterprises as
waterworks, lighting plants, street railways, markets, etc., are
so closely connected with the public health or convenience as to
be proper municipal functions; (2) that lower rates and better
service can be obtained by public ownership than under private
ownership, especially in the case of those public utilities which
are monopolistic in character; and (3) that there is a consider-
able social gain, since the wages and hours of labor are more
advantageous in municipal plants and employment is more
regular. Against municipal ownership it is argued: ( 1) that
publicly owned plants are less efﬁcient than private enterprises
since the incentive of proﬁt is removed and also because of
political inﬂuences; (2) that municipal ownership furnishes an
opportunity for corruption; (3) that the burden of public
ownership is oftentimes borne by the general tax payers instead
of by the consumers because of the unbusinesslike ﬁnancial
6
methods and accounting systems that are used by some cities.
Finally it is claimed that municipal ownership is not the only
solution of the public utility problem, but that there is another
alternative which would protect the public — namely, private
ownership with public regulation by a commission or other
administrative authority.
Conclusions of the National Civic F ecleration’s Commission on
Public Ownership and Operation.
In 1905 the National Civic Federation appointed a commis-
sion on public ownership made up of representatives from both
sides of the question. After a long and careful study of the
problem in this country and Europe, the committee reached the
following conclusions: 1
Public utilities, ‘whether in public or private hands, are best conducted
under a system of legalized and regulated monopoly.
Public utilities in which the sanitary motive largely enters should be
operated by the public.
The success of municipal operation of public utilities depends upon the
existence in the city of a high capacity for municipal government.
The committee takes no position on the question of the general expedi-
ency of either private or public ownership. The question must be solved by
each municipality in the light of local conditions. What may be possible in
one locality may not be in another. In some cities the companies may so
serve the public as to create no dissatisfaction, and nothing might be gained
by experimenting with municipal ownership. Again, the government of
one city may be good and capable of taking charge of these public utilities,
while in another it may be the reverse. In either case the people must
remember that it requires a large class of able men as city ofﬁcials to look
after these matters. They must also remember that municipal ownership
will create a large class of employees who may have more or less political
inﬂuence.
Our investigations teach us that no municipal operation is likely to be
highly successful that does not provide for:
First. — An executive manager with full responsibility, holding his posi-
tion during good behavior.
Second. — Exclusion of political influence and personal favoritism from
, the management of the undertaking.
Third. —— Separation of the ﬁnances of the undertaking from those of
the rest of the city.
1 National Civic Federation, Report on Municipal and Private Operation of Public Utilities.
3 vols. New York, 1907. Part I, Vol. I, pp. 23—26. The arrangement of the above conclusions has
been changed for purposes of clearness.

7
Fourth. -— Exemption from the debt limit of the necessary bond issues
for revenue-producing utilities, which shall be a ﬁrst charge upon the
property and revenues of such undertaking. .
There are no particular reasons why the ﬁnancial results from private
or public operation should be different if the conditions are the same. In
each case it is a question of the proper man in charge of the business and of
local conditions.
We have come to the conclusion that municipal ownership of public
utilities should not be extended to revenue-producing industries which
do not involve the public health, the public safety, public transportation,
or the permanent occupation of public streets or grounds, and that munici—
pal operation should not be undertaken solely for proﬁt.
We are also of the opinion that all future grants to private companies
for the construction and operation of public utilities should be terminable
after a certain ﬁxed period, and that meanwhile cities should have the
right to purchase the property for operation, lease or sale, paying its fair
value.
To carry out these recommendations effectively and to protect the
rights of the people, we recommend that the various States should give to
their municipalities the authority, upon popular vote under reasonable
regulations, to build and operate public utilities, or to build and lease the
same, or to take over works already constructed. In no other way can the
people be put upon a fair trading basis and Obtain from the individual
companies such rights as they ought to have. We believe that this provi-
sion will tend to make it to the enlightened self-interest of the public
utility companies to furnish adequate service upon fair terms, and to this
extent will tend to render it unnecessary for the public to take over the
existing utilities or to acquire new ones.
Franchise grants to private corporations should be terminable after a
ﬁxed period and meanwhile subject to purchase at a fair value.
Municipalities should have the power to enter the ﬁeld of municipal
ownership upon popular vote under reasonable regulation.
Private companies operating public utilities should be subject to public
regulation and examination under a system of uniform records and ac-
counts and of full publicity.
Furthermore, we recommend that provision be made for a competent
public authority, with power to require for all public utilities a uniform
system of records and accounts, giving all ﬁnancial data and all informa-
tion concerning the quality of service and the cost thereof, which data shall
be published and distributed to the public like other ofﬁcial reports; and
also that no stock or bonds for public utilities shall be issued without the
approval of some competent public authority.
A more recent statement as to the advisability of municipal
ownership from the standpoint of city officials is that expressed
by the Conference of American Mayors at Philadelphia in 1914.
8
This body unanimously recommended that “no general con-
clusion be formulated upon the abstract question of municipal
ownership but rather we express our judgment to be that
municipalities should be given in all instances, the power to
municipalize public utilities, the expediency of its exercise being
at any time and place, and with regard to any particular utility,
a matter for local determination.”1
III. DEVELOPMENT AND PRESENT STATUS OF MUNICIPAL
OWNERSHIP.
Municipal Ownership of Waterworks.
Municipal ownership in the United States has had its widest
application in the case of waterworks, the development in this
ﬁeld following very closely the growth of cities. In 1800, out
of sixteen public water supplies in this country only one was
municipally owned; by 1825 the number of municipal plants
had increased to about one-sixth of the total; while in 1875
over one-half of the waterworks were owned by cities. During
the period from 1875 to 1890 the movement slackened some-
what because of the large expenditures for other improvements.
By 1890, however, city ﬁnances were in better condition and
there was renewed activity in the direction of municipal owner-
ship so that by 1897 only nine of the ﬁfty largest cities in the
United States were supplied by private companies.2
Since 1900, municipal ownership of waterworks has con-
tinued to spread even more rapidly until to-day all but seven
of the sixty-two cities of over 100,000 population own and
operate water plants, while only forty-two of the one hundred
and forty-two cities of from 30,000 to 100,000 are supplied by
private plants. The cities of over 100,000 which do not have
municipal plants are Indianapolis, Oakland, New Haven,
Scranton, Paterson, Bridgeport and San Antonio.3 The rapid
spread of municipally owned water supplies during the last

1 “Proceedings of the Conference of American Mayors on Public Policies as to Municipal Util-
ities, Philadelphia, 1914.” In The Annals of the American Academy of Political and Social Science,
LVII, 295 (1915).
2 A historical sketch of waterworks development by M. N. Baker may be found in E. W. Bemis’s
Municipal M onopolies (New York, 1899), Chap. 1. See also National Civic Federation, Report
on Municipal and Private Operation of Public Utilities, Part I, Vol. 1, pp. 127-146, and U. S. Com-
missioner of Labor, Fourteenth Annual Report, 1899, pp. 12-13.
a U. S. Bureau of the Census, Financial Statistics of Cities, 1915, Table 15, pp. 215—217.
9
generatiOn is also shown by the fact that during the period
from 1880 to 1912 the total amount of city indebtedness for
public water systems more than quadrupled. In fact, cities
incurred larger debts for waterworks during this period than
for either highways or education or any other Single purpose.1
In certain States municipal ownership of waterworks is
almost universal, as in Massachusetts, where all of the thirty-
ﬁve cities and ﬁfty-eight of the seventy towns of more than
5,000 inhabitants own and operate water systems. At the
present time only ﬁve per cent of the total population pro-
vided with water supplies in Massachusetts is supplied by
private companies.2 In North Carolina every city and town
with a population of 5,000 or over except one owns and operates
its waterworks,3 and in Iowa, three hundred and ten out of
three hundred and thirty cities have municipally owned water
systems.4 In Minnesota, one hundred and ﬁfty-three cities
with a population of about 900,000 have undertaken the owner-
ship of waterworks, while only eight cities, With a population
of 26,359, are supplied by private companies.5 Thus it is seen
that municipal ownership of waterworks has become the gen-
eral practice in American cities. The extent of municipal own-
ership in this ﬁeld is attributed primarily to the vital necessity
of an abundant “and pure water supply for the protection of the
public health and incidentally to the need of an adequate supply
for ﬁre purposes. .
Municipal Ownership of Lighting Plants.
While the movement for municipal ownership of waterworks '
had its origin during the early part of the nineteenth century,
public ownership of gas and electric lighting plants is of much
more recent development and has not been so widely adopted.
At the present time only ﬁve of the cities with a population of
over 30,000 own gas works, namely, Richmond, Virginia,
~Wheeling, West Virginia, Duluth, Minnesota, Holyoke, Massa—
1 Fred E. Clark, “The Purpose of the Indebtedness of American Cities,” Municipal Research,
N o. 75, July, 1916 (New York Bureau of Municipal Research, N. Y., 1916), pp. 27-30.
2 See post, pp. 20—21.
3 American Year Book, 1916', p. 293.
4 National Municipal Review, II, 476 (1913).
5 G. A. Gesell, “Minnesota Public Utility Rates,” Bulletin of the University of Minnesota,
October, 1914 (Minneapolis, 1914), pp. 1—4.

10
chusetts, and Hamilton, Ohio.1 Altogether there are about
thirty municipal gas plants in the United States as compared
with about fourteen hundred private plants, but most of them
are in small cities and towns. About eighty other small munic-
ipalities have public plants using acetylene, gasolene or natural
gas? '
Philadelphia is the largest city in which municipal ownership
of the gas supply has been undertaken, but in 1897 the city
discontinued the policy of direct municipal operation and
leased the plant for a term of thirty years to the United Gas
Improvement Company, which has managed it ever since. This
change in policy has been regarded by some as an indication of
the failure of the municipalization of gas supplies on a large
scale; by others it is said that operation of the plant was
abandoned because of the interference of the City Council and
because of burdens inherited from the earlier régime when the
works were Operated by a self-perpetuating body of trustees.3
The number of municipally owned electric lighting plants is
somewhat larger than in the case of gas plants. There are
more than ﬁfteen hundred electric lighting plants now owned
and managed by municipalities as compared with about thirty-
six hundred in private hands.4 Most of these plants, however,
are in small communities, as is shown by the fact that only
twenty of the two hundred and four cities of over 30,000 own
and operate electric lighting systems. The largest cities which
own their light plants are Chicago, Cleveland, Columbus,
Seattle, Tacoma, and Kansas City, Kansas.5
__ The development of municipal ownership of electric lighting,
plants in the United States is indicated by the following table,
which shows that public ownership increased between 1902

1 U. S. Bureau of the Census, Financial Statistics of Cities, 1915. Table 15, pp. 215—217.
2 For statistics see Brown’s Directory of American Gas Companies, 28th annual edition, 1915;
also W. B. Munro, Principles and Methods of Municipal Administration (New York, 1916), pp.
258—259.
3 Walton J. Clark and L. S. Rowe in the National Civic Federation’s Report on Municipal and
Private Operation of Public Utilities. 3 vols. New York, 1907. Part II, Vol. I, pp. 500—536, 588-
664. .
4 U. S. Bureau of the Census, Central Electric Light and Power Stations, 1912 (Washington, 1915),
pp. 17—22. \
6 Cities of over 30,000 with electric ﬁghting plants are Chicago, Cleveland, Cincinnati, Seat-
tle, Columbus (Ohio), Birmingham, Tacoma, Kansas City (Kan.), Fort Wayne, Jacksonville
(Fla), Holyoke, Bay City, Lincoln, Pasadena, Hamilton (Ohio), Lansing, Taunton, Jamestown
(N. Y.), Austin, Joplin. In Cincinnati and Birmingham, however, the plants are small ones.
11
and 1907 ﬁfty-four per cent, and between 1907 and 1912 twenty-
four per cent, while during the same periods private owner-
ship increased only twenty-three per cent and six per cent
repectively: 1


Increase Increase
1902. 1907. (Per Cent), 1912. (Per Cent),
1902-07. 1907—12.
Municipal plants, . . 815 1,252 54 1,562 24
Private plants, . . . 2,805 3,462 23 3,659 6
Total number of plants, 3,620 4,714 30 5,221 11


Municipal Ownershipiof Transportation Facilities.
The cities of the United States have as yet had very little
experience in the ownership and operation of street railways
and other transportation facilities. San Francisco is the only
large city that has taken over any considerable part of its
street railway system. Seattle, Washington, and hiunroe,
Louisiana, also own a few miles of street railways,2 while New
Orleans owns and operates a small belt line. Mention should
also be made of the fact that Boston and New York own
extensive subway systems which have been leased to private
companies for equipment and operation. Boston and New
‘ York, so far as can be determined, are the only large cities
which own and operate municipal ferries.
The movement for public ownership of street railways in
San Francisco began as early as 1902, but it was not until 1912
that the ﬁrst municipal line was opened for service. The
success of the initial venture in this ﬁeld led the city to make
further investments in street railways. In August, 1913, the
people voted a bond issue of three and one-half million dollars
for extensions and for the acquisition of four miles Of track
from a private company whose franchise had just expired.
Finally, in order to provide adequate transportation facilities
during the Panama-Paciﬁc Exposition, the city constructed a

1 U. S. Bureau of the Census, Central Electric Light and Power Stations, 1912 (Washington, 1915),
pp. 17—22. ' i
2 Evans Clark, "Municipal Ownership Development,” in The Public Utilities Magazine, II, 30
(July, 1917). '
12 \
tunnel so as to furnish rapid transit over the municipal lines
from the heart of the city to the exposition grounds.1 _
During the year 1915 (the latest period for which complete
statistics are available), the city of San Francisco operated
over forty-three miles of single track railway, owned one
hundred and ninety-seven cars and carried 40,369,865 pas-
sengers, while the net proﬁts for the year were $82,135.30?
It is said that the chief obstacle in the way of the immediate
municipalization of the entire system is the great value of the
private franchises, most of which do not expire until some time
in the future.
Another large city which has undertaken the ownership of
transportation facilities is New Orleans, which owns and
operates a double track belt line of more than eleven miles along
the water front. The principal trafﬁc is freight, and the system
is also used for transporting garbage into the swamps.3 The
third city which has engaged in the traction business is Seattle,
which in 1914 put into operation four miles of electric railway.4
Munroe, Louisiana, also owns and operates a street railway
system.
The question of public ownership of street railways has been
seriously considered in several other cities including Chicago,
Detroit, and Toledo. In 1907 the people of Chicago, by a vote
of 165,846 to 132,720, approved of several ordinances which
settled the complicated street railway franchise situation in
that city and which provided that the municipality might at


1 American Year Book, 1913, p. 303; 1914, p. 294.
2 See Financial Report of the Municipal Railway of San Francisco for the Fiscal Year ended June
30, 1915, as prepared for and approved by the Finance Committee of the Board of Supervisors,
pp. 5, 14. The following ﬁgures show the ﬁnancial results for 1915: -—
Passenger revenues, . . . . . . . . . . . . . $1,630,778 42
Miscellaneous, . . . . 7,886 01
Total revenue, . . . . . . . $1,638,664 43
Less operating expenses (including depreciation), . 1,226,115 45
Net operating revenue, . $412,548 98
Add miscellaneous income, 10,407 56
Cross income less operating expenses, $422,956 54
LeSs interest on funded debt, etc., 340,821 24
Net proﬁt, . . . . $82,135 30
3 National Municipal Review, II, 685—686 (1913).
4 Ibid., III, 775 (1914).
13
any time in the future purchase the existing system at a ﬁxed
price of $50,000,000 plus improvements.1 In Detroit an amend-
ment to the city charter was adopted in 1913 by a vote of
40,531 to 9,542 which provided for municipal ownership of the
street railway lines. The contract which was subsequently
drawn up to carry out this provision, however, failed to receive
the necessary majority, so that no further action has been
taken? The question of municipalizing the street railways was
also voted upon in Toledo, Ohio, in 1914 and approved by the
narrow margin of 10,597 to 9,409. The ﬁnal outcome of the
situation, however, is uncertain, since the actual acquisition of
the property cannot be consummated unless the necessary
bond issues are later approved by a two-thirds vote of the
people.3
Docks and Wharees.
Of the sixty-three principal ports of the United States, forty-
one own docks and wharves. New York leads with the ownership
of two hundred and forty-one docks and wharves valued at
$138,839,102, Philadelphia with twenty-two, involving an in-
vestment of $14,070,255, Oakland with seventeen, Stockton,
California, with sixteen, and Baltimore with twelve. Other
important cities which own such facilities on a fairly large
scale are New Orleans, San Francisco, Los Angeles, San Diego,
Sacramento. In several other cities, including Boston, wharves
and docks are owned by the State instead of by the municipal-
ity. In general it may be said that cities along the Paciﬁc coast
Own a greater water frontage and more docks and wharves than
the Atlantic, Gulf or Lake ports.4
Markets.
With the increase in the cost of living during the last few
years there has arisen a great demand for municipal markets
where farmers and small dealers may sell produce direct to

1 Fairlie, J. A., Essays in Municipal Administration, 255—257.
2 National Municipal Review, II, 477 (1913); III, 749-750 01914); V, 104—105 (1916).
3 American Year Book, 1914, pp. 294—295. Also National Municipal Review, III, 750—751 (1914).
4 For details as to municipal ownership of docks and wharves see report by G. M. Jones on
Ports of the United States, Miscellaneous Series, No. 33, United States Department of Commerce
(Washington, 1916); also Evans Clark, “Municipal Ownership Development," in The Utilities
Magazine, July, 1917, p. 30. For valuation, expenses, and revenues of docks and wharves, see
U. S. Bureau of the Census, Financial Statistics of Cities, 1915, pp. 185—187, 215—217, 290—295.
14
consumers. Most of the early markets were merely open-
spaces in the city streets set aside for such purposes and known
as “curbstone markets,” but recently there has been a tendency
to provide buildings located in a convenient part of the city
with stalls which may be let to truckmen and retailers.
A committee of the National Municipal League which made
an investigation of the subject during 1917 gives statistics
regarding seventy-two cities of the country that have municipal
markets, the most important of which are Boston, New York,
St. Louis, Philadelphia, Baltimore, Cleveland, Cincinnati, New
Orleans, and Washington.1 Other cities than those included
in the report of the committee own public markets, but most of
them are smaller places. '
As to the types of markets in the various cities, the ﬁgures
show that ﬁfty-six of the seventy-two cities have curbstone
or open markets}. but it is signiﬁcant that over half of these
cities report buildings in addition to the open markets.3 Next
in popularity after the curbstone 0r open market is the com-
bined wholesale and retail market. This combination includes
some of the best and largest market buildings in the country,

1 National Municipal League, “Public Markets in the United States.” Second Report of a Com--
mittee of the National Municipal League, March 15, 1917 (Philadelphia, 1917).
Following is a listof the cities included in the Report of the Committee: Akron, Ohio, Albany,
N. Y., Auburn, N. Y., Baltimore, Md., Boston, Mass., Buffalo, N. Y., Canton, Ohio, Chatta-
nooga, Tenn., Cincinnati, Ohio,.Cleveland, Ohio, Columbia, Pa., Columbus, Ohio, Dallas, Tex.,
Danville, Va., Dayton, Ohio, Denver, Col., DetrOit, Mich.,- Dubuque, Iowa, Duluth, Minn.,
Eau Claire, Wis., Fort Wayne, Ind., Fresno, Cal., Galena, Kan., Grand Rapids, Mich., Great
Falls, Mont, Hamilton, Ohio, Houston, Tex., Huntington, Ind., Ironton, Ohio, Jamestown,
N. Y., Johnstown, Pa.,Joplin, Mo., Kansas City, Mo., Knoxville, Tenn., Lancaster, Pa., Lansing,
Mich., Marquette, Mich., Memphis, Tenn., Milwaukee, Wis., Mobile, Ala., New Albany, Ind.,
New Castle, Pa., New Orleans, La., New York, N. Y., Niagara Falls, N. Y., Norfolk, Va., Paw
ducah, Ky., Pasadena, Cal., Perth Amboy, N. J ., Philadelphia, Pa., Pittsburgh, Pa., Pittsﬁeld,
Mass., Portland, Ore., Portsmouth, Ohio, Rochester, N. Y., Salem, Mass., Salt Lake CityL-Utah, '
San Antonio, Tex., San José, Cal., Savannah, -Ga., Seattle, Wash., South Bend, Ind., St. Joseph,
Mo., St. Louis, Mo., Syracuse, N. Y., Tacoma, Wash., Toledo, Ohio, Traverse City, Mich., Tren-
ton, N. J ., Washington, D. C., Waterloo, Iowa, Youngstown, Ohio. _
2 The following are cities with markets of the-curbstone or open type: Akron, Albany, Auburn,
Baltimore, Brockton, Buﬁalo, Cedar Rapids, Chattanooga, Cincinnati, Cleveland, Columbus,
Dallas, Danville, Dayton, Denver, Detroit, Dubuque, Fresno, Galena, Grand Rapids, Hamilton,
Huntington, Ironton, Jamestown, Johnstown, Kansas City, Knoxville, Lancaster, Lansing,
Memphis, Milwaukee, New Castle, New Orleans, New York, Niagara Falls, Norfolk, Pasadena,
Perth Amboy, Philadelphia, Pittsburgh, Pittsﬁeld, Portland, Portsmouth, Salem, Salt Lake
City, San Antonio, San José, Savannah, Seattle, South Bend, St. Joseph, Syracuse, Tacoma,
Toledo, Trenton, Waterloo.
3 The following are cities which reported buildings inaddition to curbstone markets: Akron,
Baltimore, Buffalo, Cedar Rapids, Chattanooga, Cincinnati, Cleveland, Columbus, Danville,
Dayton, Des Moines, Detroit, Grand Rapids, Great Falls, Houston, Jamestown, Kansas City,
Knoxville, Lancaster, Lansing, Marquette, Memphis, Milwaukee, New Castle, New Orleans,-
New York City, Norfolk, Philadelphia, Pittsburgh, San Antonio, Savannah, Seattle, St. Joseph,
Toledo, Youngstown. ‘-
15
such as those in Boston, where the total value of the buildings
“used for marketing purposes is $2,781,200; Detroit, $92,000;
Kansas City, $500,000; Savannah, $275,000. Central retail
markets rank next in number,1 while sixteen distinctly whole-
sale markets were reported, located in general in the larger
cities of the country, such as Baltimore, Cleveland, Dayton,
Denver, Detroit, and New York City? The committee found
that very few additions have been made to the list of whole-
sale markets within recent years, but that the tendency is in
the direction of extending retail market facilities, as is shown
by development in such cities as Baltimore, New Orleans, and
Cincinnati.3
On the whole, market facilities in the various cities are being
well utilized as is shown by the fact that nineteen of the cities
from which information was obtained by the committee report
that all of the stalls in their markets are rented; sixteen state
that from seventy-ﬁve toninety per cent of the space is rented;
eight from ﬁfty to seventy-ﬁve per cent, and only ﬁve less
.than ﬁfty per cent.4 As to the types of dealers who occupy
municipal markets, the data which have been collected show
that cities have busied themselves recently in extending facili-
ties to farmers. Twelve cities report that all who sell produce
in the markets are farmers, while in the other cities farmers
~;COIlStltllt€ from ﬁve to ninety per cent of the market occupiers
except in a few cities such as Boston, Kansas City, Memphis,
New Orleans, and Norfolk, where there are no farmers among
those who make use of the markets. In New York City there
are “ no farmers occupying stalls in the public markets other
than farmers who occupy space in the farmers’ open squares.”5
Imgeneral it can be said that in only half of the cities with
public markets do farmers occupy a majority of the stalls, and

1 The following cities reported central retail markets: Akron, Baltimore, Buﬁalo, Canton,
Chattanooga, Cleveland, Columbus, Dayton, Detroit, Duluth, Eau Claire, Fresno, Houston,
Ironton, Jamestown, Knoxville, Lancaster, Lansing, Memphis, Mobile, New Albany, Norfolk,
Portland, Portsmouth, Salt Lake City, San Antonio, San Jose, Seattle, South Bend, St. Joseph,
Toledo, Washington, Waterloo.
2 Other cities reporting distinctly wholesale markets are the following: Albany, Fort Wayne,
Niagara Falls, Portsmouth, Salt Lake City, San Antonio, San José, St. Joseph, Toledo, and Tren-
ton.
3 National Municipal League, “Public Markets in the United States, 1917.” Report of (1. Com-
mittee of the National Municipal League, 8. '
4 Ibid.,15-16.
B Ibtd.,17—18.

. that most of the stall renters are professional retailers or whole-
salers. The percentage of professional retailers, wholesalers, and
'jobbers tends to increase with the size of the city, as is shown
by the statfStics for such cities as Boston, New York, Kansas.
City, Baltimore, and New Orleans, where from eighty to one
hundred per cent belong to this class of dealers.1
In regard to prices, two of the cities —— Huntington and
Savannah — report that prices charged for produce in the
municipal markets are higher than those charged by other
dealers; four cities —— Danville, Detroit, Joplin, and St. Louis
-— report that prices are the same, while information from the
remainder shows a decrease in prices varying from a slight re-
duction to as much as one-half. Thus New York, Philadelphia,
Norfolk, and Albany report that retail prices at the municipal
market are on an average ten per cent less than those else-
where; in Buffalo, fourteen per cent less; Baltimore, Chat-
tanooga, and Lansing, twenty per cent; Columbus, twenty-ﬁve
per cent; Jamestown, New York, and Perth Amboy, New
Jersey, thirty per cent; Portland and Seattle, ﬁfty per cent;
and Fresno, California, ﬁfty to one hundred per cent.2
Most of the cities with public markets report a net proﬁt
varying from less than a hundred dollars in'one city to $77,-
690.40 in Pittsburgh.3 Nine cities, however, report net annual
losses varying from $460 in Hamilton, Ohio, to $175,658 in.
New Y ork.4
Municipal I 0e Plants.
In the last few years there has been considerable agitation
in favor of municipal ice plants on the ground that a cheap-
and puresupply of this commodity is essential to the public
health. In 1913 the Legislatures of Wisconsin and Minnesota.
1 National Municipal League, “ Public Markets in the United States, 1917.” Report of 0. Com-
mittee of the National M untctpal League, 18—20.
2 Ibtd.,25-26.
3 The annual net proﬁts reported by various cities are as follows: Auburn, $4,000; Canton,
Sl,880; Cincinnati, $12,000; Cleveland, $19,261; Columbia, $1,105; Columbus, $18,569; Dayton,
821,050; Denver,$13,000; Detroit, $4,108.15; Dubuque,$281; Fort Wayne, $700; Grand Rapids,
$4,289; Houston, $30,000; Huntington, $62; Kansas City, $40,000; Knoxville, $5,255; Lancaster,
$1,500; Memphis, $3,000; Milwaukee, $2,262; New Albany, $1,100; New Orleans, $44,961; Nor-
folk, $15,592; Pasadena, S25; Perth Amboy, $1,448; Philadelphia, $14,632; Pittsburgh, $77,-
690.40; Portland,$3,000; San Antonio, $6,000; San José,$290; Seattle, $2,521; Syracuse, $381,753;
Wheeling, $2,612. _
4 The cities reporting net annual losses are as follows: Akron, $8,968.26; Baltimore, $18,495;
Duluth, $200; Hamilton, $460; Little Rock, $8,000; New York, $175,658; St. Louis, $40,000;
Toledo, $1,391; Youngstown, 82,853.

17 i
authorized cities to operate iceplants,1 while the cities of Hart-
ford, New Britain, New Haven, South Norwalk, and Willi-
mantic, Connecticut, also have a similar power.2 So far as
can be determined, New Britain, Connecticut, and Weather-
ford, Oklahoma, are the only two cities which have actually
established municipal ice plants. The power of cities to engage
in such an enterprise has been questioned in some States. In
New York, for example, the court enjoined the mayor of
Schenectady from using the city’s money for building or operat-
ing a municipal ice plant in connection with the waterworks,
on the ground that the supply of ice and the supply of water
were not related.3 In Georgia, on the other hand, the Supreme
Court has declared that the manufacture of ice is one of the
legitimate functions of municipalities.4
Miscellaneous.
Although water supplies, lighting plants, and markets are the '
most important ﬁelds of municipal ownership, several cities have
_municipalized certain exceptional services. At least three
cities ——~ Newton, Massachusetts, Bloomington, Indiana, and
Sabetha, Kansas -— own and operate heating plants ;5 while
Northampton, Massachusetts, Dayton, Ohio, and several other
cities own municipal theatres. Other exceptional instances are
an omnibus line which is owned by the city of New York, the
ownership of a canal in Augusta, Georgia, a powder magazine
in Charleston, South Carolina, and a municipal forest in
Toledo, Ohio.6
IV. MUNICIPAL OWNERSHIP IN MASSACHUSETTS.
Legislation Relating to Municipal Ownership.
Waterworks and Lighting Plants. -——- The Constitution of
Massachusetts- does not contain any provisions in regard to
municipal ownership and this matter has been regulated en-

1' Laws of Wisconsin, 1918, Chap. 289; Laws of Minnesota, 1913, Chap. 305.
2 Wentworth, J. W.', A Report on Municipal and Government Ice Plants in the United States and-
Other Countries. Submitted for the information of the President of the Borough of Manhattan,
City of New York, December 15, 1913 (New York, 1913), 32—39.
8 Ibid., 66—67.
4 Holton 'v. Camilla (1910), 134 Ga. 560, 68, S. E. 472.
5 National Municipal Review, III, 384 (1914).
6 U. S. Bureau of the Census, Financial Statistics of Cities, 1915, 79, 99.
18
tirely by statute. Cities and towns obtain authority to pur-
chase, construct, and operate waterworks by special acts of the
Legislature, while municipal ownership of lighting plants and
public markets is provided for by general laws.
According to an act of 1891 (Acts and Resolves of Massachu-
setts, 1891, Chap. 370, Sec. 1) as subsequently amended, any
city or town in the Commonwealth may, upon .apprQVal of a
majority of the voters, “construct, purchase or lease and main-
tain within its limits One or “more plants forthe manufacture of
gas or electricity for municipal use or for the use of its inhabit-
ants, except for the operation of electric cars.”1 Upon au-
thorization from the State Board of Gas and Electric Light
Commissioners, a city or town may also extend its mains or
lines into an adjoining city or town for the purpose of dis-
tributing gas and electricity, provided that such other city or
town is not otherwise supplied with these services.2
In case there is a private. lighting plant already in operation
at the time municipal ownership is adopted by any city or
town, it is made the duty of the municipality to purchase so
much of the existing plant and equipment as are within its
limits. If the city or town and the owners of the plant cannot
agree as to the price which should be paid by the municipality,
either party may apply to the Supreme Judicial Court for the
county in order to determine the value of the property. The
Court is then authorized to submit the controversy to the
_ Board of Gas and Electric Light Commissioners which in-
vestigates the matter and determines the price of the plant
which, when approved by the Court, is made ﬁnal.3
Municipal lighting plants in Massachusetts as well as private
plants are under the supervision of a central State board -— the
Board of Gas and Electric Light Commissioners. The rates
that cities and towns may charge for lighting shall not“ be'
greater in amount than Will allow a net proﬁt of eight per cent
upon the total investment, .and all schedules of rates are re-
quired to be certiﬁed to the Board of Gas and Electric Light
Commissioners.4 A city or town which undertakes the owner-

1 Consolidated laws relative to the manufacture, distribution, and sale of gas and electricity,
Acts and Resolves of Massachusetts, 1914, Chap. 742, Sec. 92. ‘ .
2 General Acts of Massachusetts, 1915, Chap. 191, Sec. 1. » -
3 Acts and Resolves of Massachusetts, 1914, Chap. 742, Secs. 100—101.
4 Ibid., Secs. 115—116.
19
ship of a gas or electric lighting system is also required to keep
its books, accounts, and records in such form as may be pre-
scribed by the State Board, and to make such reports as the
Board may demand.1 In this way uniformity of accounts and
of ﬁnancial administration is obtained throughout the various
cities and towns which have undertaken the ownership of their
lighting systems.
Exemption of Water and Lighting Bonds from Debt Limit. —
Massachusetts has followed the practice of a number of other
States in- exempting public utility loans from the debt limit
ﬁxed by the Legislature. The Municipal Finance Act of 1913
provides in this connection that cities and towns may incur
indebtedness outside of the debt limit for (1) “establishing, or
purchasing a system for supplying the inhabitants of a city or
town with water, or for the purchase of land for the protection
of a water system, or for acquiring water rights ;” (2) “for the
extension of water mains and for water departmental equip-
ment;” and (3) “for establishing, purchasing, extending or
enlarging a gas or electric lighting plant within the limits of a
city or town,” provided that the indebtedness incurred for such
lighting plant “shall be limited to an amount not exceeding in
a town ﬁve per cent and in a city two and one-half per cent of
the last preceding assessed valuation of such town or city.” 2
The theory upon which public utility loans are exempted
from the debt limit is that the interest and principal of such
obligations can be paid out of the income derived from the
plant, thus making it unnecessary to draw upon the general tax
fund. Also the large initial expenditure involved in taking over
or constructing a lighting or water system would make it prac-
tically impossible for the average city to undertake municipal
ownership without an exemption of this nature.
Public Markets. —— The Legislature has also by an act passed
in 1915 and amended in 1916 authorized cities and towns to
construct and operate public markets. In the exercise of this
power, however, municipalities are subject to the control of the
State Board of Agriculture, since they must obtain the approval
of this Board in order to acquire land for market purposes,

1 Acts and Rgsolves of Massachusetts, 1914, Chap. 742, Sec. 120.
2 [Md., 1913, Chap. 719, Sec. 6.
20
while all rules and regulations governing the use of‘ such markets
are required to have the consent of the Secretary of the Board.
The most important provisions of the act authorizing the
municipal ownership of markets are as follows: —
All cities and all towns havinga population of ten thousand or more are
hereby authorized to provide and maintain public markets with suitable
buildings and grounds. For this purpose any such city or town may,
with the approval of the State Board of Agriculture, take or acquire land
by purchase or otherwise, with or without buildings, and may make
alterations in buildings and construct new buildings on land so acquired.1
Any city or town which maintains a public market or market place in
accordance with the provisions of this act may make rules and regulations
for the use and management thereof, subject to the approval of the Sec-
retary of the State Board of Agriculture, and may attach penalties for their
violation.2
Extent of M untctpal Ownership in Massachusetts.
Water Supplies. —— The cities and towns of Massachusetts
undertook the ownership and operation of their‘water supplies
at an early date. Among the large places, Worcester es-
tablished a municipal water plant in 1845, while Boston'took
a similar step in 1848. The movement toward municipaliza-
tion has continued until at the present time twenty-ﬁve oi the
thirty-ﬁve cities of the Commonwealth own and operate in-
dependent water systems, while the remaining ten cities —-
Boston, Chelsea, Everett, Malden, Medford, Melrose, Newton,
Quincy, Revere, and Somerville —-— are included in the Met-
ropolitan Water District, which may be regarded as a plan of
co-operative municipal ownership. The Metropolitan Water
District, which was created by the Legislature in 1895 for the
purpose of supplying Boston and the surrounding municipalities
with water, is in charge of a Board of three members (Met-
ropolitan Water and Sewerage Board) appointed by the
Governor, and the expenses of the system are apportioned
among the various cities and towns within the District. Each
of the cities and towns maintains its own distributing system
and merely purchases the water which it needs from the Met-
ropolitan District.3 Thus it is seen that all of the thirty-ﬁve
1 General Acts of Massachusetts, 1915, Chap. 119, Sec. 1. l
2 11nd, 1916, Chap. 79.
3 Acts and Resolves of Massachusetts, 1896, Chap. 488; 1901, Chap. 168.

21
cities of the Commonwealth have publicly owned water sup-
;plies either independently or as parts of the Metropolitan
system. ' ' '
Of the seventy towns with a population of over 5,000, all but
twelve are supplied with publicly owned water systems.1 In
most of the towns with public water supplies the system is
owned by the town itself. In a few, however, such as Green-
ﬁeld, Middleborough, and Montague, separate municipal cor-
porations designated as water Supply or ﬁre districts have been
established in order to construct and own the Works. This
plan is followed in towns where there is a scattered rural
population in a part of the community, thus making it difﬁcult
for the inhabitants in the more thickly settled portion to obtain
a water supply through a vote of the town.2
From the above description it is seen that municipal owner-
ship of waterworks is the common rule among the cities and
towns of Massachusetts while private ownership is the eXCep-
tion. The tendency toward municipal ownership of water-
works is indicated by the following table, which shows that,
the percentage of the total population supplied with water by
private companies has decreased from sixteen and one-half
per cent in 1890 to ﬁve per cent in 1915.3


Total .
Population Population - Per Cent of
of All Cities of Cities Total
and Towns and Towns Population
YEAR. provided su plied by su plied by
' with Water rivate rivate
Su plies Companies Companies.
(Pub ic and one.
Private).
1890, 1,924,812 318,319 16. 5
1895, . 2,237,017 212,579 9. 5
1900, 2,565,301 236,869 9. 2
1905, 2,792,490 193,290 6. 9
1910, 3,171,055 159,730 5.0
1915, 3,528,769 174,760 5.0
1 The twelve towns of over 5,000 population which are still supplied by private water systems:
are as follows: Amherst (5,558), Bridgewater (9,381), Dedham (11,043), Fairhaven (6,277), Graf-
ton (6,250), Hingham (5,264), Ludlow (6,251), Milford (13,684), Millbury (5,293), Northbridge
(9,254), Palmer (9,468), and Southbridge (14,217).
2 First Annual Report of the State Department of Health of Massachusetts, 1915 (Boston, 1916),
42—44, 293—309. '
3 Ibid., 295.
22
It is difﬁcult to draw any deﬁnite conclusions as to the results
of municipal ownership of waterworks in Massachusetts cities
and towns because of the various factors that must be con-
sidered in each individual case. The following table, compiled
from the reports of the United States Bureau of the Census for
1915, indicates some of the ﬁnancial results that have been
obtained in the larger cities which own and operate separate
municipal plants: 1


CITY. gﬁigﬂ Income' Iggggﬁgiaggz
Brockton, $2,254,000 $148,992 363,992
Fall River, 3,089,900 237,351 122,560
Fitchburg, 1,247,316 96,202 50,895
Haverhill, 1,503,965 135,878 41,614
Holyoke, . 1,393,786 137,542 73,157
Lawrence, 1,553,281 152,141 61,735
Lowell, 2,029,377 222,812 154,070
Lynn, . 3,700,000 339,689 159,253
New Bedford, 3,072,185 325,095 99,190
Pittsﬁeld, 2,220,000 127,145 16,864
Salem, . 2,015,400 103,492 130,882
Springﬁeld, 5,314,446 520,362 262,372
Taunton, . 1,510,836 105,003 43,013
Worcester, 6,551,673 481,324 90,510


Public Lighting. — In the ﬁeld of public lighting the develop-
ment of municipal ownership has not been so extensive as in the
case of water supplies. At the present time only four of the
thirty-ﬁve cities of the Commonwealth ——Holyoke, Chicopee,
Peabody, and Taunton —— own and operate their lighting sys-
tems. In Holyoke the city owns and operates both the electric
light and gas plants, in the other cities only theelectric plant.
In Peabody the municipality does not provide for the genera-
tion of electricity, but merely purchases the current from a
private company and distributes it to consumers. In the cities
of Holyoke, Chicopee, and Taunton, on the other hand, the city
produces as well as distributes the current.3
Public ownership of lighting systems is somewhat more
common in the towns of the Commonwealth than in the cities.

1 U. S. Bureau of the Census, General Statistics of Cities, 1915, Table 12, pp. 144-145; also Fi-
nancial Statistics of Cities, 1915, Table 11, pp. 185—187, and Table 15, pp. 215—217.
2 Includes operating expenses alone; does not include payments for interest, depreciation,
etc.
3 Thirty-second Annual Report of the Massachusetts Board of Gas and Electric Light Commis-
sioners, 236—239.
23
Seventeen of the seventy towns of over 5,000 population are
engaged in the supply of electricity, including Belmont, Brain-
tree, Concord, Danvers, Hingham, Hudson, Ipswich, Mansﬁeld,
Marblehead, Middleborough, North Attleborough, Norwood,
Reading, South Hadley, Wakeﬁeld, Westﬁeld, and Wellesley.1
In six of the towns above mentioned current is purchased from
private companies or from other municipalities and the town
provides only for its distribution. There appears to be a
tendency for such an arrangement to become more widespread
on the ground that it is more economical for a small com-
munity to buy current from a central supply company than to
maintain an independent generating plant.
Only three of the twenty-one cities and larger towns with
municipal lighting plants reported a loss in operation as deﬁned
by statute during 1915, namely, North Attleborough, Westﬁeld,
and Wakeﬁeld. The other municipalities reported during the
same year an excess of income and appropriations over ex-
penditures (expenditures include payments for' operation, main-
tenance, repair, interest, and depreciation) varying from $338 in
Ipswich to $8,241 in Norwood.2
M arhets. ——A number of cities and towns have also estab-
lished public markets, including Boston, Attleboro, Brookline,
Brockton, Cambridge, Duxbury, Framingham, Greenﬁeld,
Holyoke, Lowell, Medford, Medﬁeld, Peabody, Pittsﬁeld,
Quincy, Salem, Springﬁeld, Stockbridge, Taunton, Walpole,
and Weymouth.3 In most of these places the market is of the
curbstone or open-market type, but in Boston the equipment
includes extensive buildings in the heart of the business district.
The value of the property devoted to markets as reported by the
United States Bureau of the Census varies from $400 in Quincy
to $2,781,000 in Boston. The total amount of money invested
in municipal markets in Boston is greater than in any of the
other cities of the country except New York.4

1 Thirty-second Annual Report of the Massachusetts Board of Gas and Electric Light Commis-
sioners, 236—239. '
2 Ibid., 191—235.
3 This list of cities with public markets was obtained from the Massachusetts Committee on
Public Safety, August 15, 1917.
4 Statistics in regard to markets compiled from U. S. Bureau of the Census, Financial Statistics
of Cities, 1915, Table 27, pp. 290—295, and from report of a committee of the National Municipal
League on Public Markets in the United States (Philadelphia, 1917).
_24
Street Railways. —— No city or town in- Massachusetts has
undertaken the municipal ownership of street railways. The
city of Boston, however, owns the subway structures under its
streets, which have been leased to a private company for- a term
of years for equipment and operation. The construction of the
subway and its administration, 'so far as the city is concerned,
are in the hands of the Rapid Transit Commission of ﬁve
members, two of whom are appointed by the Governor and
three by the mayor.
V. CONSTITUTIONAL PROVISIONS RELATING TO MUNICIPAL
OWNERSHIP.
The Constitutions of only eight States ——South Carolina,
Virginia, Oklahoma, Arizona, Colorado, California, Ohio, and
Michigan —— expressly grant to cities the power to own and
operate public utilities. In the other States this matter is
regulated entirely by statute. Following is an analysis of the
constitutional provisions of the above-mentioned States from
the standpoint of: (1) the extent of the power granted; (2)
limitations upon the exercise of the power; and (3) special
ﬁnancial provisions in regard to public utility debts.
South Carolina.
The constitutional grant of the power of municipal ownership '
in South Carolina applies to all cities and towns and includes
the right to acquire, construct, and operate, but is somewhat
narrow because it extends only to waterworks and lighting
plants. In order to exercise the power of municipal ownership
in either of these ﬁelds the municipality must obtain the ap-
proval of a majority of the electors qualiﬁed to vote on the
bonded indebtedness of the city.1 In certain speciﬁed cities
debts incurred forlighting plants and water supplies are not
to be included in computing the maximum amount of indebted-
ness that may be incurred by the city in question.2

1 Constitution of South Carolina, Article VIII, Sec. 5.
2 lbicl., Sec. 7.
25
Virginia.
The Constitution of Virginia opens the way for municipal
ownership by giving a city or town the right to include a pro-
vision in any franchise reserving to the municipality the power
to acquire the property and equipment of the company to
which the franchise is granted. When once the city has ob-
tained possession of a public utility in this manner, it may sell
or lease the same at will, but cannot operate the plant without
obtaining the consent of the State Legislature. Under the
Virginia Constitution, therefore, cities are not given express
power to construct public utilities but merely to take over the
plants of companies already in the ﬁeld. Debts incurred for
municipal ownership are exempted from the local debt limit
provided that the plant in question is in a position to pay its
own expenses of operation and administration.1
Oklahoma and Arizona.
The Constitutions of Oklahoma2 and Arizona3 do not state
deﬁnitely what public utilities may be owned and operated by
cities, but merely grant to municipalities the general power to
“engage in any business or enterprise” which could be engaged
in by a private corporation by virtue of a franchise from the
city. In both Constitutions the power is granted to all the
cities and towns and extends to acquisition, construction, and
operation by the city, since all these matters would be included
in the powers of a private corporation engaging in the enter-
prise.4 Both Constitutions provide that a city may go beyond
its constitutional debt limit for purposes of municipal owner-
ship provided that the approval of a majority of the property —
tax-paying voters —— is obtained and with the further limitation
in Arizona that such additional indebtedness shall not exceed
ﬁve per cent of the assessed valuation of property within the cityi‘.

1 Constitution of Virginia, Article VIII, Secs. 125, 127.
2 Constitution of Oklahoma, Article XVIII, Sec. 6.
8 Constitution of Arizona, Article XIII, Sec. 5. For text of the Oklahoma provision, see Ap—
pendix, post, 31. ‘
4 Statutes in both States have interpreted this power to include the power to acquire land
inside or outside the corporate limits, and to establish thereon waterworks, electric light and
gas plants, hospitals, quarantine stations, garbage reduction plants, and pipe lines for gas, water,
and sewerage.
5 Constitution of Oklahoma, Article X, Sec. 27; Constitution of Arizona, Article IX, Sec. 8.
26
Colorado. \
The municipal ownership provision of the Colorado Consti-
tution applies to the consolidated city and county of Denver
and to all other cities of over 2,000 population which have
adopted home rule charters. The grant of power is very broad,
since it gives to any of the above-mentioned cities authority to
construct, purchase, or acquire and operate “water-works,
light plants, power plants, transportation systems, heating
plants and any other public utilities or works or ways local in
use or extent,” whether within or without the territorial limits
of the city, and everything required therefor, for the use of the
city and its inhabitants. This section grants to cities the
power of municipalizing not only the ordinary public utilities
but also any public utility which is for the use of the city and
its inhabitants. The Constitution does not place any of the
usual restrictions upon the exercise of the power, such as the
requirement of a popular referendum or the approval of any
higher authority. Cities may issue bonds in any amount for
the purpose of acquiring, constructing, or operating such public
utilities as may be provided for in their charters.1
California.
The Constitution of California, by an amendment adopted in
1911, grants to all municipal corporations of the State the
power to establish and operate public works for supplying their
inhabitants with light, water, power, heat, transportation, tele-
phone service, or other means of communication. Cities may
acquire public utilities by construction or by the purchase of
existing plants. A municipality may furnish services outside
its limits but cannot provide these services in any city which
already owns and operates a similar utility unless it ﬁrst obtains
the consent of such other city.2
Ohio.
Under the Constitution of Ohio any municipality may
“acquire, construct, own, lease and operate within or without
its corporate limits any public utility.” There is no attempt

1 Constitution of Colorado, Article XX, Secs. 1, 6.
2 Constitution of California, Article XI, Sec. 19. See Appendix, post, 31.
27
to deﬁne expressly what is included under the term “public
utility,” except that it must be some “public utility the product
or service of which is or is to be supplied to the municipality or
its inhabitants.”1 A city may acquire a public utility by con-
demnation or open purchase in the market. As in Colorado
and California, the plant may be located either within or with-
out the city limits. Moreover, a municipality owning or
operating a public utility for its own beneﬁt may “sell and
deliver to others any transportation service of such utility and
the surplus product of any other utility;” but the amount
which may be supplied outside of the city in either case may
not exceed ﬁfty per cent of the total service of that utility
within the municipality.2
The chief limitation upon the exercise of the power of mu-
nicipal ownership under the Constitution of Ohio is that cities
must provide for the ownership of a public utility by ordinance
and that such ordinance shall not go into effect until after
thirty days from its passage. If a petition signed by at least
ten per cent of the electors is presented within this period
requesting a referendum, a vote must be taken at a general or
special election on the question of taking over the utility in
question.3 Cities which purchase or construct public utilities
may issue mortgage bonds for such purpose beyond the general
debt limit ﬁxed by law, but these bonds are to be a lien only
upon the property and revenue of such public utility and are
not to impose any liability upon the municipality.4
A special feature of the Constitution of Ohio is a provision
authorizing the Legislature to provide for the examination of
the vouchers, books, and accounts of public undertakings con-
ducted by municipal authorities.5
Michigan.
The provisions of the Constitution of Michigan present the
sameT general features as those of Colorado, California, and
Ohio,‘_with some variations in detail. The public utilities that

1 Constitution of Ohio, Article XVIII, Sec. 4. See Appendix, post, 30.
2 Ibid., Sec. 6.
8 Ibid., Sec. 5.
4 Ibid., Sec. 12.
5 Ibid., Sec. 13.
28
cities may take over and operate are deﬁnitely enumerated and
include the supply of water, light, heat, power, and transporta-
tion, with the exception that the ownership of transportation
facilities may be undertaken only in cities having more than
25,000 inhabitants. The plants may be located either within
or without the city limits. The city may sell and deliver water,
light, heat, and power without its corporate limits to an amount
not exceeding twenty-ﬁve per cent of that furnished within the
city limits. Transportation facilities, on the other hand, may
be provided by a city outside its limits only to the extent pre-
scribed by law.1
In order to acquire a public utility the city must ﬁrst obtain
the afﬁrmative vote of three-ﬁfths of the electors. Women
taxpayers having the other necessary qualiﬁcations are entitled
to vote on questions of municipal ownership as well as male
voters.2 '
Cities in Michigan, like those in Ohio, are given the power to
issue mortgage bonds beyond the debt limit for the purpose of
acquiring or constructing a public utility plant with the limita-
tion that such bonds shall not be an obligation against the
municipality but shall be secured by the revenue and property
of the plant.3
Summary of Constitutional Provisions.
A summary of the above constitutional provisions shows that
each of the eight States except Colorado grants the power of
municipal ownership to all of its cities. In Colorado the pro-
vision applies only to those cities of more than 2,000 inhabitants
that have adopted home rule charters. There is considerable
variation as to what public utilities a city may own and operate.
In South Carolina the constitutional grant of power extends
only to water and lighting plants. In California, Colorado, and
Michigan the right is somewhat broader and extends to such
utilities as transportation, heating, power, and telephone serv-
ices, as well as to water and lighting plants. Under the Con-
stitutions of Arizona and Oklahoma, cities may engage in any
business or enterprise which may be undertaken by a private

1 Constitution of Michigan, Article VIII, Sec. 23. 3 Ibid., Sec. 24.
' 2 Ibid., Sec. 25.
29
individual or corporation by virtue of a franchise, while in
Ohio the power of municipal ownership extends to all public
utilities without enumeration.
The most common limitation upon municipal ownership is
that the question of acquiring or constructing a public utility
must be referred to the voters of the city for their approval or
rejection. Such provisions are found in the Constitutions of
Ohio, South Carolina, and Michigan. In Ohio the proposition
is referred to the voters only when a referendum is demanded
by a certain percentage of the voters. In South Carolina and
Michigan, on the other hand, all proposals for municipal
ownership must be referred to the voters. In South Carolina
the vote required is a majority of the electors qualiﬁed to vote
on bond issues. In Michigan it is a three-ﬁfths majority of all
electors. '
In all of the Constitutions except that of California, provi-
sion is made for exempting public utility bonds from the general
debt limit. It should also be said that in a number of the
other State constitutions which do not contain special sections
in regard to municipal ownership, provision is made that debts
incurred for the purchase or construction of public utilities shall
not be included in computing the maximum amount of indebt-
edness of any city. Among these States are Arkansas, New
Mexico, New York, and Pennsylvania.
30
APPENDIX.
TYPICAL CONSTITUTIONAL PROVISIONS RELATING To MUNICIPAL
OWNERSHIP.
Ohio. .
ARTICLE XVIII, SEC. 4. Any municipality may acquire, construct,
own, lease and operate within or without its corporate limits, any public
utility the product or service of which is or is to be supplied to the munic-
ipality or its inhabitants, and may contract with others for any such
product or service. The acquisition of any such public utility may be by
condemnation or otherwise, and a municipality may acquire thereby the
use of, or full title to, the property and franchise of any company or person
supplying to the municipality or its inhabitants the service or product of
any such utility.
SEC. 5. Any municipality proceeding to acquire, construct, own,
lease or operate a public utility, or to contract with any person or com-
pany therefor, shall act by ordinance and no such ordinance Shall take
effect until after thirty days from its passage. If within said thirty days a
petition signed by ten per centum of the electors of the municipality
Shall be ﬁled with the executive authority thereof demanding a referendum
on such ordinance it shall not take effect until submitted to the electors
and approved by a majority of those voting thereon. The submission of
any such question shall be governed by all the provisions of section 8 of
this article as to the submission of the question of choosing a charter com-
mission.
SEC. 6. Any municipality, owning or operating a public utility for the
purpose of supplying the service or product thereof to the municipality or
its inhabitants, may also sell and deliver to others any transportation
service of such utility and the surplus product of any other utility in an
amount not exceeding in either case ﬁfty per centum of the total service
or product supplied by such utility within the municipality.
SEC. 12. Any municipality which acquires, constructs or extends any
public utility and desires to raise money for such purposes may issue
mortgage bonds therefor beyond the general limit of bonded indebtedness
prescribed by law; provided that such mortgage bonds issued beyond the
general limit of bonded indebtedness by law Shall not impose any liability
upon such municipality but shall be secured only upon the property and
revenues of such public utility, including a franchise stating the terms
upon which, in case of foreclosure, the purchaser may operate the same,
which franchise shall in no case extend for a longer period than twenty
years from the date of the sale of such utility and franchise on foreclosure.
31
California.
ARTICLE XI, SEC. 19. Any municipal corporation may establish
and operate public works for supplying its inhabitants with light, water,
power, heat, transportation, telephone service or other means of communi-
cation. Such works may be acquired by original construction or by the
purchase of existing works, including their franchises, or both. Persons or
corporations may establish and operate works for supplying the inhabit-
ants with such services upon such conditions and under such regulations as
the municipality may prescribe under its organic law, on condition that
municipal government shall have the right to regulate the charges thereof.
A municipal corporation may furnish such services to inhabitants outside
its boundaries; provided, that it shall not furnish any service to the in-
habitants of any other municipality owning or operating works supplying
the same service to such inhabitants, without the consent of such other
municipality, expressed by ordinance.
Oklahoma.
ARTICLE XVIII, SEC. 6. Every municipal corporation within this
State shall have the right to engage in any business or enterprise which
may be engaged in by a person, ﬁrm, or corporation by virtue of a fran-
chise from said corporation.
32
BIBLIOGRAPHY.
Proceedings of the Conference of American Mayors on Public Policies as
to Public Utilities, Philadelphia, 191-1. Annals of the American
Academy of Political and Social Science. Vol. LVII, Whole No.
146. Philadelphia, 1915; especially the following:
Ray Palmer. “Municipal Lighting Rates.”
Newton D. Baker. “Municipal Ownership.”
Frederic C. Howe. “Municipal Ownership —— The Testimony of For—
eign Experience.”
C. M. Rosencrantz.
Ownership.”
Beard, C. A. American City Government. New York, 1912.
Bemis, E. W. Municipal Monopolies. New York, 1899.
Clark, Evans. “Municipal Ownership Development,” Public Utilities
Magazine, II, 29. (1917.)
—-——— Municipal Ownership in the United States. Published by the Inter-
collegiate Socialist Society, 70 Fifth Avenue, New York. Pamphlet;
n.d.
Darwin, Leonard. Municipal Trade. The advantages and disadvan-
tages resulting from the substitution of representative bodies for
private proprietors in the management of industrial undertakings.
New York, 1903.
Howe, F. C. The Modern City and its Problems. New York, 1915.
King, Clyde L. The Regulation of Municipal Utilities. National Munic-
ipal League Series. New York, 1914.
Massachusetts. Board of Gas and Electric Light Commissioners. Thirty-
second Annual Report, 1916. Boston, 1917. See pp. 191—256, in
regard to municipal lighting plants in Massachusetts.
—-——- State Department of Health. First Annual Report, 1915. Boston,
1916. See pp. 39—44, 293—309, in regard to municipal waterworks in
Massachusetts.
Morgan, J. E., and Bullock, Edna D., compilers. Selected Articles on
Municipal Ownership. Debaters’ Handbook Series. Minneapolis,
1911.
National Civic Federation. Report on Municipal and Private Operation
of Public Utilities. 3 vols. New York, 1907.
National Municipal League. Public Markets in the United States. Sec-
ond report of a committee of the National Municipal League, March
15, 1917. Philadelphia, 1917.
Porter, R. P. The Dangers of Municipal OWIlership. New York, 1907.
Rowe, L. S. Problems of City Government. New York, 1908.
Shaw, George Bernard. The Commonsense of Municipal Trading. Lon-
don, 1908.
Taussig, F. W. Principles of Economics.
“Some Limitations and Objections to Municipal
2 vols. New York, 1912.
t
33
United States, Bureau of the Census. Central Electric Light and Power
Stations and Street and Electric Railways, 1912. Washington, 1915.
-—-—~ Financial Statistics of Cities, 1915. Washington, 1916.
—— General Statistics of Cities, 1915. Washington, 1916.
Whinery, Samuel. Municipal Public Works. New York, 1903.
Wilcox, D. F. Municipal Franchises. 2 vols. New York, 1910—11.
All the books named in the bibliographies printed with these
Bulletins may be found in the rooms set apart for the Dele-
gates to the Convention in the State Library.
PUBLICATION OF THIS DOCUMENT
APPROVED BY THE
SUPERVISOR 0F ADMINISTRATION.
1 ' z 1; I .I t?! ‘snﬁ‘. 1:“. ~89.“ ‘iT:'.~':*r,-~.=.'\- <7!" "r M "4 ’ ‘ r , ;._~ .-.,4.A..;_ w "i ,;"i ;‘:-Z.-'. .4 ~ ..I'.r-"' "" " " ' ' ' ~ u ‘I i '
p”. _, _ . RAN, ,, . .;I _ ,. - , '1 .p .; :
{Ha 1 ‘ ‘
AN OPEN LETTER
THE MEMBERS OF THE
~ * UNION LEAGUE CLUB.
., .. CHICAGO
"sAN OPEN LETTER
__ THE MEMBERS OF THE
UNION LEAGUE CLUB
~ CHICAGO
' éfLIL’Q-TY/P‘Wk/i‘lark X ‘K-Néwki imqv’iaitaw
- /
b
A All tendency on the part of public authorities to stretch their inter-
ference, and assume a Power of any sort which can be easily dispensed
with, should be regarded with unremitting jealousy. Perhaps this is even
more important in a democracy than in any other form of political so-
ciety. (Mill on Political Economy, Book 5, Chapter II, Section 3.)
‘TO THE MEMBERS OF THE UNION LEAGUE CLUB OF ~
CHICAGO;
The people Of‘ Chicago are at the parting of the ways. DO
we understand the question? Are we going it blindly, or do we
deliberately make our choice? Municipal Ownership of intra-
mural transportation is a socialistic proposition, enthusiastically
supported by socialists as the beginning of their triumph, and.
adopted by many others as an apparently wise solution of the
traction ' problem. I i I
} Individual liberty unfettered by governmental restraint is one
of the achievements 'of Anglo—Saxon civilization. The right of
the individual to follow out his own bent and pursue-his own law-
ful activities in his own unrestrained way is a heritage from our
forefathers we should not carelessly surrender.
Socialism is opposed to individual liberty. It assails modern
civilization, belittles all its triumphs. and calls it a failure. It ex-
aggerates the manifold ills oflife caused by the defects of our\
human nature, and as a remedy offers a scheme subversive of
' industrial life whereby men are expected to take on a new nature
and thereafter all live unselﬁshly and happily together.
327813 HP?
Q» ‘J
I
l
I distrust the doctor who has a panacea for bodily ills. ' I dis-
trust the reformer who has a new and revolutionary scheme for
government. I distrust a short cut easy road to any kind of hap-
piness. Civilization with its ideas of individual liberty has been
a growth, an evolution. Those who try to force the Millennium
on society (a society which would not enjoy thelMillennium be~
cause unﬁtted for it), are in danger Of doing much mischief by
disturbing the orderly development Of progressive liberty.
The government of a despotic monarchy resembles a socialistic
republic. In each the individual is minimized, and the govern-
ment magniﬁed. In the latter it is the despotism of the ma-
jority who claim to act for the beneﬁt of all; in the former it is
that of a ruler and his associates who likewise claim to be acting
for the beneﬁt of the individual. Each assumes that the indi-
vidual must not be left to work out his own career, but must
labor on lines laid down by others.
Anarchy and socialism are terms used carelessly as identical.
Anarchism is a -paradox—-,as a system it is incomprehensible.
Some dreamers, who imagine they are thinking, talk of anarchy
as an ideal state where every man doesas to him seemeth best.
Their ignorant followers in their rage at the society which they
deem the cause of their troubles, become Wild beasts and assail
those who stand for that sofciety. For this was McKinley
murdered.
Theoretically, socialism and anarchism are at opposite poles.
But many socialists, disappointed with the slow acceptance of
their views, drift into practical anarchy, and hope that on the
breaking up of civilized society, there will be resolved a com-
munity where selﬁshness is loSt and where each will cheerfully
work his best forcthe State. '
,\ ﬂ 0)
’II’II‘I) ,5 Q .3
e_ I > I) Q. I\
‘M 11 Q: n 5*
- \-
5
The true socialist is a philanthropist gone wrong. He ignores
history and human nature. We admire his good heart, but de-
plore his judgment. q I ' '
A " OUr government is based on the development of Anglo-Saxon-
liberty—the fullest freedom for the individual consistent with
the rights of Others. ‘
I Although we have an ideal government in theory, in practice
it falls short. Many attribute its defects to the abuses of universal
suffrage whereby the ignorant and vicious are allowed too much
inﬂuence. _ ’
It is not the function of this paper to cover too broad a
ground, or open up too many topics. It is enough for the present
to admit thatwhich requires no admission because patent to all,—
that the legislative and administrative functions are full of im-
perfections. To a certain extent so are all governments, but we
Who aim so high should be more zealous tO- show better results!
_ ' These imperfections are based on greed (so are most of the
wrOngs of society). Every vice is based on some elemental vir-
tue gone to an extremity which interferes with the rights of
others. ' It is. the function of every government to restrain such
excesses. ' .
-O*ur government'calls on every citizen to aid in its adminis'
tration, but the cares and duties of life so benumb the sensibilities
that the vast multitride is deaf to the daily calls of public duty,
‘ and allows abuses to grow that become intoleI-able.’
NO republic can be reformed from the outside, or by a nos-
' trum fO-rcedon the thoughtlesspublic by a few zealOts. Reforms
come by the. awakening of the people, the arousing of the public
conscience which follows the stirring of the individual Conscience.
It is not so attractive or fascinating as to reform Society by a
6
beautifully wrought scheme, as an artist paints a picture, making
the conditions to suit himself.
The evolution of economies in production and distribution
have created those enormous industrial trusts so-called, and many
tremble when they think where they may lead. Each epoch has
had its problems to solve and the undue inﬂuence Of aggregated
wealth is Of the present. Let us not lose our heads because we
do not fully see the present remedy. Our best talent and patri-
otic endeavor are now concerned in its solution. When the people
see an evil they always ﬁnd the remedy. Deliberation, however,
is especially essential, for that which is done hastily is rarely done
wisely and well.
Patriotism is not, however, dead, nor has wisdom ﬂed our
borders. And what reasonable man can doubt that the solution
will be wise and reasonably speedy?
But the socialists look with favor on those industrial trusts!
They regard them as hastening the day when they all will be—
come vested in one body and then the government will take them
over! They look at Government as one enormous Industrial
Trust or Labor Union!
It has been said, Socialism has as many deﬁnitions as the word
religion—ten thousand. A local event of passing importance has
furnished us a local deﬁnition of its Objects. '
Young Patterson lately on resigning his "position as Commis-
sioner of Public Works, and while proclaiming himself as a con-
vert to socialism, admits “Municipal Ownership is only skin deep
socialism. I’m for the real brand, pnblic ownership of all sources
of wealth.”
We are indebted to Mr. Patterson for calling our attention to
the undisguised purposes of socialism in. Chicago. Later he em-
7
phasized it by signing the pledge of those who enter the fold
of the Socialistic Party. It is in the following words:
“I the undersigned, recognizing the necessity of the
organization of a working class political party, for the
purpose of capturing the powers of government in the
interest of the working class, with the aim of transform—
ing all means of production and distribution from pri-
~ vate to collective ownership, and distinct from and op-
posed to all parties who stand for the maintenance of
the competitive system, hereby declare that I have sev-
ered my, relations with all other parties, that I endorse
the platform and constitution of the Socialist Party, and
hereby apply for admission to membership in said
party.” i
The entering wedge Of the Socialistic dogma is the capturing
of the public utilities of the city. Our own traction problem with
its many complications—the unwise concessions Obtained, as ‘is
generally believed, by the occasional bribery of the legislature
and the constant bribery of the Common Council in the not re-
mote past, and the indignation now really felt at these outrages,
are seized upon by the socialist as the opportunity of his life.
Socialistic clubs sometimes disguised under the ﬂag of mu—
nicipal ownership pure and simple, are working day and night for
their cause. Shall the conservative men allow the matter to be
settled by default?
Let us consider the practicability of municipal ownership,
Before augmenting the power of the city government by add-
ing to the pay-roll many thousand voters, expending in the pur-
chase and equipment from seventy millions to a possible hundred
millions, we should consider what that government is.
*The Municipal Voters’ League was formed, because of the
despair which prevailed at Obtaining any improvement in the
Common Council, by help from any political organization, it
having become a matter of notoriety that the Council was openly
corrupt. It was a matter of common notoriety that there were
but a few among the members of the Council who were
above suspicion and who would not engage in any corrupt
deal for his own proﬁt. \The League undertook to expose the
record and warn the voters of the character of the. candidates.
Laboring under great difﬁculty, accused Of being busy-bodies,
offensively interfering with political government, etc., it accom-
plished a wonderful change. Decent men no longer are afraid to
become candidates and the number of the baser element has be-
come much reduced. We are still far from perfection and it will
be only after many years of continued effort and the continual
agitation for arousing the public zeal that the Council will be free
from reproach. On a smaller scale, grafting, stuffed payrolls;
and incompetence still ﬁnd their abode in the city hall.
Civil Service reform in national as well as local affairs has
"accomplished much, but it is still obstructed in its ameliorating
efforts by public apathy and the open hostility of unworthy and
narrow-minded politicians.
The city government has many functions to perform. It dis-
burses annually about forty millions—it employs directly over
seventeen thousand persons. It has its police, ﬁre department, wa-
ter department, public schools, hospitals, parks, municipal courts
and subordinate functions. Over all the slimy trail of politics is
found. In spite of the improvement in some directions we have
our daily murder and our hourly robbery! Are we satisﬁed with
any of its departments?
The primary function Of a government is to protect the person
and property of its citizens. So gross has been the dereliction of
our city in these primary duties, not to mention the thousand
minor ills, that it has become a national disgrace!
To add so enormously to the powers of this city would be a
reversal Of the parable of the ten talents.
Should we not ﬁrst have a model city before we enlarge its
duties?
Glasgow and many foreign cities own their traction lines.
They say it works well there, therefore let us try it here, they
argue.
Long before the ﬁrst street railroad rail was laid, the gov-
ernment Of every one of those cities was pure compared with ours.
It is with them mainly a question of weighing economic advan-
tages, and it is still a mooted question among experts, whether
public or private ownership is better. Whether that decision be
pro or con will not help us. Dalrymple, the Glasgow expert
brought here to advise us, thinks it won’t do for us, because Of
our defects—too much political corruption.
Politics has little to do with the administration of those cities.
Mayors are elected for their prominence and efﬁciency in mu-
nicipal duties, not because of political leadership. Aldermen are
selected because they are respectable business men and take pride
in their Ofﬁce: Whoever heard abroad of a lot Of keepers of low
dives and saloons becoming aldermen? We are so used to this
that we now fail to notice it.
The defects of our traction service before the controversy be-
tween the city and the companies arose, was not so irritatingly
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10
bad as since, and these defects are traceable to the neglect of au-
thorities in applying remedies which lay at their hands. wé only
needed intelligence combined with honesty in the Common Coun-
cil. The history of these companies in their dealings with the
government is full of scandal. The public has now become so
educated in that direction there is but little fear that they will be
repeated—no new traction boss dare do it if so disposed. The
Public is watching them.
The socialist, however, states it is important for the protection
Of the community from future bribery by such companies, that
the temptation should be abolished by taking over the companies
and so removing the tempter from the ﬁeld.
Let us consider this proposition. Because corporate wealth
has been used to corrupt the government, abolish the corporation.
To carry this out we should adopt young Patterson’s notion,
“Public ownership of all sources of wealth.”
This is a cowardly way to escape responsibility of public
duties. We have a right to demand better service from the mu-
nicipality in' every line, and we will have it. Because the owners
of wealth use it for corrupt purposes, shall we abolish the wealth?
Shall we rage against the inert and unintelligent instrument and
let off the corrupt user? Rather let us put our house in order
and keep it so.
The present question, however, for the voter is not, how to
improve the council, but how to get better traction service. Even
during the height of traction scandals, thanks, as before said, to
the Municipal Voters’ League, the. purchase of franchises 'be-
came impossible and thelCouncil is yearly growing better. As a
balancing of temptations to the authorities which the choice pre—
sents: it seems patent that the mere regulation of the companies
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11
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is vastly easier and ‘safer and involving less facilities for corrupt
politics than would be afforded by the exercise of the powers of
ownership, which includes the operation of hundreds of miles of
track, requiring the expenditure of millions, under hundreds or
iperhapsthousands of contracts creating a paradise for grafters, -
the extension of lines demanded by political bosses and land
speculators, the employment of an army Of conductors, and oth-
ers whose votes would be under the control of the party in power.

Professor James Mavor, of the University of Toronto, has ex-
presSed so admirably in a condensedform the danger Of municipal
OWnership in a paper before the Michigan Political Science Asso—
ciatiOn, at a meeting held at Ann Arbor February II ~12, 1904, that
the following extract is here presented:
“The adoption of municipal ownership causes, for so much as it
amounts to, an increase in the public ﬁnances. It produces an increase
of the area of governmental or compulsory ﬁnance, and correspondingly
diminishes the area of private ﬁnance. In the event of ownership being
accompanied by net pecuniary loss, that loss will require to be met by
taxation,- that is, by a compulsory contribution to the public powers from
the private pocket. Moreover, in diminishing, as it must, the area of pos-
sible action by private initiative, as indicated above, it tends to destroy
private initiative and to produce a state of the public mind in whch the
community is regarded as a universal provider. This state of mind is
up to a certain point inevitable in countries where the accumulation of
private capital proceeds slowly, and where enterprises that seem indis-
pensable to municipal progress are undertaken by compulsory action,
because private initiative does not exist on an adequate scale; but it is
a dangerous state of mind to cultiVate. It tends almost inevitably toward
petty political chicanery, and to the wholesale purchase of constituencies
by the party in power. It is not realized that every draft upon the public
purse is sooner or later a draft upon the private purse of the citizens.
There are numerous instances Of municipalities being urged by! enthu-
siasts into undertakings which have been burdens to them, even although
some beneﬁts may have accrued. There are, for example, the case of
Cincinnati and the Southern Railway, Baltimore and the Western Mary-
land,'the small city of Wheeling and its railway bonds, and Philadelphia
and its gas works. It was assumed that the enterprises were necessary.
Private enterprise was at the time too feeble, and under pressure of
12
The complication which the expiring Charter presents will be
resolved in due time, and in a manner satisfactory to the people,
if not to the present company. We have wasted a lot of precious
time triﬂing with the impossible Municipal Ownership. Let us
The Supreme Court of the United States
has just decided against the ninety-nine year claim and the, solu-
gct down to business.
tion is thereby much simpler.
It is generally conceded, although disputed by socialists, that
the incentive of individual advantage secures better“ results than
governmental workmanship. Government work is done more
expensively than that done by private enterprise. This is easily
shown by comparing the delay and expense of our court houses
and public buildings with those constructed for private owners.
Some functions from their nature require public management
whatever the expense. Postofﬁces, the world over, are public
affairs—yet experts declare that better service at less expense
could be obtained by contract. The work involves international
exchanges which governments only could effect.
It is impossible to draw a hard and fast distinction between
what the government should or should not do—but let us adhere

enthusiasts the public found itself impelled to enter upon them. So also
institutions which in well-established communities are supported by pri-
vate endowment or subscription—~as hospitals, refuges and the like—are
less well-established communities wholly or partially provided out of the
tax revenue. There is a widespread illusion that the quickest and easiest,
though in the long run it is the most expensive way, to have any im-
provement effected, is for the public authority to do it. This course
appears to cost nobody anything. ‘
“The practice of drawing on the public authority for money and
services, probably in the beginning necessary, becomes a ﬁxed passion,
and the public purse comes to be looked upon as a pocket from which
inexhaustible supplies are to be drawn.”
13
to the proposition of having the government do as little as pos-
sible. In other words, take the opposite position from that occu-
pied by the Socialist.
The matter of economy, hoWever, is not what the socialist
is after. It is the principle he wants. To make converts he will
insist that the municipality will do the work of furnishing public
service of all kinds cheaper and better than can be done by others.
Extortionate and unreasonable concessions have been made in
the tying up ‘of the people for unlimited time to paying unjust
rates for public utilities. The Supreme Court of the United
States, as well as that of many states, have declared that all such
contracts may be revised, and reasonable rates only exacted. It
is only within a few years that we have commenced to call down
the various local companies for extortion. If we lie down under
abuses, we must blame ourselves.
We are now entering upon a new era in which quasi-public
corporations will be required to make fair terms and live up to
their contracts. Let us not spoil it by embarking on visionary
experiments.
TO RECAPITULATE.
Socialism is a dangerous menace to our institutions, and a
retrogression of our civilization. It is destructive of individual
ambition. In so far as municipal ownership of public utilities is
the beginning of socialism, let it be combated. Locally, we are
,unﬁt for any expansion of our city powers. Puriﬁcation should
precede expansion.
SIDNEY CoRNING EASTMAN.
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HAVECHANOED
FROM PPWAT ii
TO MUNlClPAL
OWNEPSHlP OF
THEN? PUBLIC
UTILITIES


PUBLIC OWNERSHIP LEAGUE OF AMERICA
*127 N. Demarborn St., Room 1439, Chicago, Illinois
BURNS G) MQDONNELL
OONSULTING ENGINEERS
, mme'nqrs Bmmmo
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a FTEPi reviewing a twenty years’ experience
gained in the appraisal of over one hundred
utilities of various kinds that have changed


ownership, it became apparent that the rea-
sons for changing ownership and the results of the
change would be beneficial to other municipalities con-
templating similar steps.
Cities are universally turning to municipal owner-
ship of thegi‘ utilitiesafter finding that the modern pro-
gressive municipality can successfully handle its own
affairs, using its own credit and its own resources and
can accomplish better results than private capital has
ever accomplished.
The chief business lesson taught us in the \Vorld
\Var has been the value of co-operation and organiza-
tion. By these methods we raised billions of dollars,
developed immense industries, discovered latent talent
and ability and proved to ourselves and the world that
we could, by working together, accomplish results that
were never before dreamed of.
l
The following reasons are not theoretical or imag-
inary, but are the actual personal reasons expressed
by reputable city officials, our observations asiengi-
neers during the time when negotiations for change of
ownership were in progress and actual results obtained
by cities after acquiring public utilities.
The reasons given are applicable in a general way
toward any public utility, but have actually been de-
rived from an experience in appraising water, lighting,
gas ,heating, sewer, telephone and street railway util-
ities.
1. The paramount difference in principle is: With
private ownershlp, “proflts first”; with municipal own-
ershlp, “servme ﬁrst.”
2. When a Municipally owned utility makes profits
the tax-payer and cltlzen reaps the (llVldQIldS in better
servme, cheaper rates and oftentimes reduced taxatlon.
\ Fort Smith, Arkansas, municipal waterworks
in 1915, cleared $40,041.00. Part of surplus used in
retiring bond's against plant. Taxpayers, instead of
foreign capital, received dividends.
4. No corporation, community or concern has a
monopoly on the brains or ability to successfully oper-
ate a public utility.
5. The water works of Council Bluffs, Iowa, in
1910, under private ownership, showed receipts of
$106,614.75; operating expenses, $61,994.51. In 1916,
under municipal ownership, the receipts were $153,—
904.91 and operating expenses $57,196.39.
6. The loyalty to service, a1 " 'on to- succeed, de-
SIlgLll).l-"X cc! and quantities equally
strong, regardless of the ownership of the utility.
7. It is realized that intelligent public officials can
do equally well what the private corporations have
heretofore done for a profit.
8. Everett, Washington, in first year of municipal
ownership of water works, made a net proﬁt of
l
$6,260.63, after paying operating expenses, bond inter-
est and setting aside proper amounts in the deprecia—
tion and sinking funds.
9. As profits accumulate beyond an amount 1‘6-
quired for maintenance, interest, depreciation and re—
serve, the rates are reduced in the municipal plant,
thus declaring dividends to the public instead of divi—
dends to private investors.
10. Omaha, Nebraska, in 1917, reduced water rates
50 per cent to more than 90 per cent of the consumers,
after aetfuiringthe plant in 1912.
11. The promise of dividends to the investor in
utihty stock and 1118 111S1stent clamor for dividends,
frequently results 1n an ilnpalrment of service.
12. The order “dividends first” from headquar-
ters often delays to the point of danger many impor-
tant improvements that are recognized as urgent by
the local manager.
13. Poor service in seventy—five out of a hundred
c.1t1es has been the fundamental cause which led to
change of ownership.
14. Cleburne, Texas, before municipal ownership,
never had sufficient water, and at times no water.
Since owning and improving plant the water supply
has been ample at all times.
15. Water purification plants add to operating ex-
pense, thus reducing prof1ts, hence most of our modern
water flltratlon systems are municipally owned.
16. Impure water more than any other one thing,
IS the cause of l'ngh death rates. Many municipalities
have reduced their death rates from 75 to 92 per cent
by lntroductlon of pure water supplies immediately
f ollowmg municipal ownership.
17. Council Bluffs, Iowa, water plant, under city
ownership, furnishes a water with a reduction of 50%
of the bacteria count and 263% of turbidity in compari-
son with the water supplied during the last year of
private ownership.
18. One Kansas municipality had its business
growth checked, its industries paralized and its popu-
lation in constant fear, because of their alarmingly
high typhoid death rate. In ten ycrs, since 2‘ ;quiring
the property by the city, about 30 per cent increase has
ben made in the revenue, the consumers increased
about 30 per cent and the typhoid death rate decreased
70 per cent.
19. Oshkosh, Wisconsin, since acquiring the water
works, has land by a surplus of $39,315.00, from the
earnings to apply to the bulldmg of a filtration plant.
20. Billings, Montana, pleaded, coaxed and litigated
for years with its owner of the water plant, to aban-
don or purify its water supply. One year after the city
took over the plant by at 5 to 1 vote for city ownership,
the purification plant was in operation. The State
Board of Health now reports the water pure, whole--
some and free from pathogenic bacteria.
21. Billings, Montana, in the first five months of
operation under municipal ownership, cleared $10,-
682.61 above costs of operation, interest on bonds and
depreciation charges.
22. These actual cases are typical of dozens of other
cities. If the municipal authorities are to be held re~
-.sponsible for the health conditions, they should have
complete ownership and control of the water supply,
which is the most important factor in. the health,
growth and prosperity of any city.
23. The health of a community, which-is in propor-
tion to the purity of its water supply, is safer in the
hands of a non-partisan water board of local business
men than in the hands of one individual who may re-
side thousands of miles away, with no civic or com-
munity interest.
24. The record of the water rates of the cities that
have changed ownership shows that withm two years
after changing, a reductlo-n of 27‘per cent has occurred.
25. Not being primarily concerned in “profits
first,” the municipal plants often make lower rates to
large users, thus encouraging the developing of new
industries.
26. Of the 25 largest cities in the United States, all
except two have liiunicipally owned waterworks, and
one of these—San Francisco-“is now constructing its
own supply. ~
27. Where municipally owned utilities exist, the
suburban additions and districts are developed, thus
avoiding congested dlstrlcts. -
' 28. This development of outlying districts with
their lower land values, makes possible the ownership
of homes by the poorer classes, and the improvement
of suburban country estates by the wealthier classes.
29. The freer use of water, light and heat in muni-
cipal plants, for Wading pools, swimming pools, gym-
nasiums, skating ponds, fountains and for park pur-
poses, places that city in a position to outdistance its
less fortunate competitor in the race for commercial
supremacy.
30. In one city that recently changed ownership, :1
new, well-ligl‘ited park, with fountains, wading pool
and aquarium not possible under the terms of the
franchise, and its prohibitive rates, were soon acquired
under municipal ownership.
31. The results and successes of municipal owner-
ship of other citles have started the municipal owner-
slnp ideas 111 many places.
32. Boonville, Missouri, in 1904, bought privately
owned waterworks for $52,000. The present plant,
with improvements and extensions, made out of earn-
ings, is valued at $90,000.00. Outstanding bonds,
$4,000.00 to be retired in 1920.
33. Cleburne, Texas, under municipal ownership of
the water works, reduced insurance rates from 79c to
260, which resulted in a saving of $30,000.00 a year in
insurance premiums to the citizens.
34. First quarterly report at Beaumont, Texas,
after purchasing waterworks, showed a net profit of
$1,212.50 above all costs of operation, maintenance,
including interest and sinking fund charges on a $500,-
000.00 bond issue.
35. Boonville, Missouri, in fifteen years of munici-
pal ownership of water works, has made a net earning
of $50,000.00 over all operating expenses, including
maintenance and depreciation charges.
36. In Kansas there are only 12 privately owned
water plants. out of 225, and three of these are now be-
ing appraised for purchase by the municipality.
37. Nebraska has over 150 city owned water works
and only six privately owned.
38. Minnesota has over 200 municipal and seven
private water systems.
39. Iowa has nearly 300 municipal plants, with only
18 privately owned.
40. Even the most radical advocate of private con-
trol has conceded that the city streets, bridges and via-
ducts are within the province of municipal ownership,
but why must the utilities under the paving, such as
water, gas, sewer or conduit, be owned by another?
41. A municipality that can handle its paving, park-
ing and aquaducts, ought not to be pervented from
using its own city water for washing its paving, its city
water for beautifying its parks and its own electricity
for lighting and making safe all the improvements
already owned and constructed by the city.
42. An inspection of viaducts, streets and parks at
night tells the story of whether gas and electricity are
sold by a company or by the city. Many a dark street
has its bridges and viaducts with ornamental lights in
name only. They reflect no light or glory, either, and
stand only as a disgrace, often broken down or disman-
tled.
43. As an insurance policy against crime, no safer
policy was ever wrltten than that of well lighted streets
and alleys.
44. Can you imagine about how long a merchant
would last in business without adequate lighting facil—
ities? Cities are nothing more than big competitive
merchants and the city, with its streets, buildings, via-
ducts, parks and boulevards properly illuminated, has
a tremendous- advantage in commercial supremacy.
45. The completion of appraisals of several sewer
systems in Texas, Where private ownership of this
important utility exists, has brought to “light some
important facts, showing conclusively that private
ownership of sewers is detrimental to the public health.
46. Two cities are located in Texas having the same
population—of about 20,000 each—one has its munici-
pally-owned sewers serving every home in the city,
with 33 miles of pipe. The other has a privately owned
system of sewers, consisting of nine miles of small
diameter, shallow-laid lines, serving only the best im-
proved districts and incapablev of extensions. It does
not require a sanitary expert to say which of the two
cities. is the most desirable place to live.
47. The sewer connection fee and the monthly
charge for each faucet and toilet as charged under pri-
vate ownership of sewers, acts as a penalty toward bet-_
ter and cleaner living conditions.
48. In many cases the rental charge for sewer serv-
ices for two years on an average 5-room modern cot-
tage will pay the cottage owner’s share of the con-
struction cost of a municipal sewer system.
49. By carrying- out reasonable sanitary measures
and prov1dmg its own adequate sewer faculties, a com-
mumty protects 1tself and sets a good example for
others.
50. All public utilities which are natural monop-
olies, and which by their nature are necessary to the
welfare and happiness of the people, should be under
municipal ownership and operation.
51. .The most noticeable contrast between public
and privately owned water systems is the fire protec-
tion and inadequate domestic pressure in higher levels.
Many cities have experienced needless fire losses equal
to the cost of the entire works.
52. The usual first step taken by cities after acquir-
ing ownership of water plants, is providing adequate
mains of larger diameter, closer spacing of hydrants
and increased pumping facilities. In one plant ap-
praised the average increased carrying capacity re-
quired in the mains was 85 per cent; another was in-
creased 18 per cent immediately after acquiring own-
ership.
53. Companies desiring revenue without assuming
responsibility for fire protection, have added miles of
two, three and four-inch pipe (a practice seldom fol-
lowed by municipal works where revenue is secondary
to service).
54. The rapidity with which all utilities have
changed ownership is in itself evidence of the more
satisfactory results obtained under municipal owner-
ship.
55. Statistics now show more utilities in the hands
of receivers than ever before. This means poo-r and
interrupted service. The resumption of service and the
improvements required are in many cities being ac-
complished by the cities having the properties ap-
praised and taking them over.
56. A city’s credit is always better than an individ-
ual’s credit. In one city that acquired a utility recently
the 5% municipal bonds for its purchase sold at par,
while another utility privately owned was offering its
7% securities at 90c 011 the dollar. ’
57. This utilizing of the city’s own good credit
means less price for light, power, gas, water or other
utility service.
58. Investors are seeking municipal bonds, while
private utility securities are a drag on the market even
at their alluring discounts and interest rates.
59. The old charge of making the municipal utility
a political football has ceased to exist, for the real
shrewd politician finds that the best politics he can
play is to give service to the public.
60. The superintendent of four municipally owned
utilities in Virginia, Minnesota, with its water, light,
gas and steam heating, reports after five years of mu-
nicipal ownership: “Our board is non-partisan, our
rates were not hiked during the war.”
61. Council Bluffs, Iowa, reports after ten years of
municipal ownership of its waterworks, that politics
and the constant interference of politicians with city
affairs ceased when the city took over the works, and
that if all our utilities were municipally owned, politics
would be a lost art.
62. The elimination of politics and the substitution
of good service is the result 'not of abstract theories, but
of experience and the actual needs and demands of the
public.
63. Municipal ownership, as a rule, provides better
working conditions, shorter hours and better wages,
thus fe labor troubles ensue. Strikes in municipal
plants are practically unheard of .
64. Chicago, Illinois, made a net pro-fit of $3,003,-
200.00 on municipally owned waterworks, with rates
about one-half those usual under private ownership,
with the highest wages and best labor conditions of
any similar plants in the country.
65. We would not think of placing our fire and po-
lice departments under private ownership for profit.
These are for the protection of property. Then why
have our water departments operated under such condi-
tions? This is the most important factor in the devel-
opment of the health and prosperity of a. community
and the protection of life.
66. There is a greater tendency toward a fair and
impartial rate schedule under municipal ownership. In
a water plant recently taken over, it was found that
many favored customers were receiving special rates,
while others were paying a much higher rate for the
same service.
67. This special rate matter is one of the ways in
which political favors and influence for rate legislation
are sought.
68. Under war conditions, while nearly all private
owned utilities were clamoring for increase in rates,
85% of municipal plants maintained their rates, and
nine actually reduced them.
69. The best governed cities in the world are the
cities where there is most municipal ownership. \lVhen
a city takes over its utilities it removes the incentive. to
corruption.
70. Municipal ownership tends to distribute. the
wealth and power of a community and increases the
democracy in the industrial and civic life. of the peo-
ple.
71. During the last year, several American cities
have taken over their street railway systems, and many
others are now engaged in appraisals with similar ob-
jects in view. McGraw’s Station List for 1918 shows
35.5 per cent of all lighting systems in the United
States are municipally owned.
i 72._ The municipal street railway system of San
Francisco has made a true net. profit of over $1,000,-
000.00 in the first five years of operation.
73. Detroit, Michigan, has reached agreement with
street railway company on purchase of the property.
The city wants to make sure of adequate and reliable
transportation facilities.
74. Cleveland, Ohio, has demonstrated the success
of municipally owned street railway system.
75. “A franchise is a prize for bad government,” is .
a statement which can be attested to by many commu-
nities.
76. Mr. Francis J. Heney, in a public address in
Kansas City, February 5th, 1912, said: “After five
years of investigating the causes and cure for graft, I
bring this one message: I am driven to believe that the
public ownership of public utilities is the only cure for
graft.” (See Kansas City Times, February6th, 1912,
page 1). ‘

77. Official investigations have disclosed that the
campaign funds of the dominant political party and not
infrequently of both parties, have been derived to a
considerable extent from public utility interests—(Re-
port of National Civic Federation on Municipal and
Private Operation of Public Utilities, pp. 28—39, 41-42.)
78. (ireenville, Texas, of about 10,000 population,
having a municipal light plant, comparing its service
and rates with cities of a similar size, but having pri-
vate owned utilities, showed a saving to the tax payers
of $116,756.40 per year, or nearly enough to rebuild the
plant every two- years.
79. The number of municipally owned light plants
has increased from one in 1881 to 1,609 in 1917, and
there are many more now. The per cent of municipal
plants has increased from 9.0% to 32% of the total.
80. The result of seven investigations of several
hundred light plants showed the average rate for pri-
vate plants $0.1007, and for municipal plants $00868,
or a difference of 16% in favor of the municipal plant
for the same class of service.
81. The results of ten investigations of several hun-
dred light plants showed the maximum rate for private
plants $0.114 and for municipal plants $00873, or a
diffefence of 31%, in favor of the municipal plant.
82. The results of five investigations of several hun-
dred light plants showed the average cost per are light
per year as $89.95 under private ownership, and $59.92
under municipal ownership, or a difference of 50%.
83. The Civic Federation in its 1907 report on the
Chicago plant, concluded that from 1887 to 1905 the
cost of electric lights used by the city was $743,494.78
less under municipal ownership than it would have
been under private ownership, and in six years, from
1907 to 1912, after power was taken from the drainage
canal, the city saved over $4,000,000.00 on street lights
alone, when compared with the rates charged by the
private companies.
84. Pasadena, California, had at 15c light rate with
private ownership. This was reduced to 121/53c during
the agitation for municipal ownership, and reduced to
50 within two years after municipal ownership.
85. In Pasadena, California, within 8 years after
municipal ownership, street illumination had been in-
creased 956%, while the area of the city had only been
increased 20%, and the total cost of street lighting in-
creased only 219%.
86. The saving to the people of Pasadena, Califor-
' nia, in reduced cost of light and power up to July 1st,
1916, or a period of eight years, has been estimated at
over one million dollars. The total cost of the plant
and system up to that time was $486,239.99, and its
invoiced valuation $840,434.44.
87. In twenty years the Kansas City, Kansas, light
plant will have charged off as depreciation, the entire
capital value of the plant and will have retired from
earnings, all bonds against the plant. The city still will
be owning a well equipped light and power plant, as a
result of the policy of using surplus earnings for plant
betterments and extensions. That is contrary to the
rate making plan of public utilities, which is to keep
capital value high for the purpose of procuring rates.—
(Statement of Certified Accountant.)
88. In the city of Holyoke, Mass, in twelve years of
municipal ownership, the citizens saved $1,431,333.45
in light and power bills, $301,326.39 in street lighting;
and $474,159.68 in gas bills; or a total of nearly two
and one-quarter million dollars, as compared with
what they would have paid at the rates offered by the
private company.
89. At Springfield, Illinois, after combining their
water and light plant, the interest or rates of return on
the money invested in the light and power plant was
21.9%, while the rate of return on the total investment
in the waterworks was 9.9%.
90. .At Seattle, Washington, in 1902 the citizens
were paying 20c per K. W. hour for electric current.
The agitation for a municipal plant was followed im-
mediately by a reduction to 12c. Other reductions f ol~
lowed after the city plant was built and operated in
competition with the private plant. The Seattle plant
is earning dividends in addition to the earnings of the
plant itself, of at least $1,000,000.00 annually in re-
duced rates caused by this competition.
91. That municipal ownership improves labor con-
ditions is attested to by the fact that labor organizations
are almost unanimously in favor of municipal owner-
ship.
92. Virginia, Minnesota, has made its third reduc-
tion in light rates since buying the lighting plant.
93. Richmond, Va., owns its gas, water and light
plant. The gas is sold at 800 per 1,000 cubic feet. This
gives a net profit of $271,869.61, although the plant is
maintained in high-class condition and has paid for it-
self many times over out of the profits. The city still
charges interest, depreciation and taxes against the
plant, totaling $123,052.80, leaving net profits of $148,-
817.81.
94. Richmond, Va., has owned its gas plant since
1852. Since that time it has reduced rates, paid for
itself out of its earnings and turned into the city treas-
ury over one and one-half million dollars.
95. The average rate charged by municipal gas
plants in Virginia in 1917 was $1.09. The average rate
for private plants was $1.27. In Minnesota the average
municipal rate for gas was $1.28 and the average pri-
vate rate was $1.40.
96. “It is the consensus of public opinion here that.
the city was wise to build the gas plant, and nobody
wants a change to private ownership.”—B. E. Ludwig.
Director of Public Utilities at St. Petershurg, Fla.
97. “I will say that in my opinion the municipal
operation of the gas plant has been very satisfactory to
the citizens, in that it is furnishing gas at a very low
rate, much below the average for cities of this size at
the present time. We have not raised our rates during
the war times.”—D. A. Reed, Manager, \Vater and
Light Department, Duluth, Minnesota.
98. “An alderman seldom has had sufficient expe-
rience and legal training to prepare a franchise himself,
and in the absence of some consistent theory of fran-
chise policy, he has permitted the attorneys for public
service corporations to draft the franchises they wanted
and present them for his approval.”-— (D. F. Wilcox.)
99. “In the Cleveland gas case the evidence showed
that the company was paying cash dividends of
$1,440.00 a year on each original investment of
$1,000.00, besides stock dividends amounting up to 1892
to a total of $24,000.00 for each investment of $1,000.00.
-~ (Parsons)
100. “Real public ownership is the very essence of
(.lQIIlOCI'EICY.” - Prof. Frank Parsons, Boston Law
School
FINAL \VOBD.
Municipal ownership of public utilities has been
demonstrated to be successful. A word of advice, how-
ever, should be offered. Before undertaking to vote
bonds for a municipal plant of any character where a
private plant is already in operation, competent engi-
neers who are experienced in appraisal Work should be
consulted.
N o municipality should make the mistake of trying
to establish a competing plant. Where a private utility
already occupies the field, it is by all means advisable
to purchase it at its fair appraised value, as the first
step toward municipal ownership.