The Springfield herald., 1897-09-17
MUNICIPAL BUSINESS.
How ENoLlsHclTlEs MANAoEIr
Birmingham = Shining Example of the
Wise Use of Funds to Reduce Cost of
Public Utilities,


William E. Curtis writes as follows
to the Chicago Record about the man
agement of municipal affairs in Eng
land:
There are some curious features of
municipal government in England
which may be copied with great advan-
tage by the cities of the United States.
1t Is customary to issue bonds to meet
the expenses of all important public
works. AS rule these bonds run
for twenty-one years and the interest
and sinking fund charges are SO ar
ranged, either in the form of taxes or
fees for the enjoyment of the privi-
leges and cOnveniences furnished by
the works, that they will pay for them
selves when the bonds have matured.
For example, the city of Birmingham
built its gas works on this plan and
when the twenty-one years expired the
establishment was owned by the city
free of debt, and became source Of
revenue which may be devoted to other
purposes and caused a reduction in the
general taxation. The same plan has
been adopted for water works, street
railways, bridges and various other
public enterprises.
The most interesting and conspicuous
of these enterprises is Corporation
street. in Birmingham, which is
monument to the energy and oversight
of Mr.. Joseph Chamberlain, who served
! several terms as mayor of that city
and is now minister for the colonies in
the imperial Cabinet His wife is
daughter of Mr.. William EndicOtt of
Newburyport, Mass, who was secre-
tary of war during the first administra-
ton of Mr.. Cleveland.
In 1875 the center of the city of Bir-
mingham, including the railway sta
tions, the city hall, the chamber OF
commerce and other public buildings,
was surrounded by loathsome slums-
about ninety acres of tenement houses
separated by narrow streets and still
narrower alleys, which resembled the
Five Points Of New York and the lower
Pacific avenue district of Chicago. In
this area was housed population of
about 10000 of the most vicious class
in England 1t was hotbed of vice. a
nursery of criminals and a constant
menace to the health as well as the
morals of the community
Mr.. Chamberlain proposed that the
district be purchased by the municipal
government, cleaned out and replaced
by wide streets and better buildings.
After much difficulty and delay his pur-
pose was accomplished, the property
was condemned by the courts and pur-
chased by the city. Every building was
torn away, and the rubbish, so far as
possible, was burned. New and wide
streets We're laid out and the vaGcnt
land was leased at auction to the high
est bidder for terms of fifty years upon
the condition that buildings of GER
tain class should be erected upon it.
1t is now the handsomest and most
popular business section in Birming-
ham. 1t is occupied by the finest build
In, tn no ,it nd hnc fln It,nc
lar shops and offices. The cross streets
correspond.
The entire cost was SS.0O00OO. The
city borrowed the money and issued
fifty-year bonds The annual charge for
interest. sinking fund and other ex-
penses of about 100000, which is met
by receipts from the rental of the leas-
ed ground. Thus the enterprise paid for
itself. The property is increasing in
value. At the end of fifty years, when
the leases expire. the city of Birming-
ham will be the richest municipal cor
pora ton in the world. for it will be the
owner of ninety acres of the most valu-
able real estate under its Jurisdiction
covered with fine buildings, which are
estimated to yield an annual rental
now equal to the total original cost of
the enterprise.
AS rule the municipalities of Great
Britain own gas works and electric
lighting establishments. which have
been acquired in Il similar manner. In
some cases they are operated at loss,
but in a majority of instances they are
n source of revenue. The prevailing
rule Is to fix the rates for private CON
sumers at an amount that will not only
pay the cost of manufacture and main
tcnance, but also the expense Of light
ing the city buildings and the streets
BOOKER T. WASHINGTON.