The state herald., 1897-09-17
MUNICIPAL BUSINESS.
HOW sNoLlsHclrIEs MANAGE
birmingham Shining Example of tho
Wise Use of Funds to Reduce Cost of
Public Utillties.

William T.. 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 convenlences 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 a
monument to the energy and oversight
Of Mr.. Joseph Chamberlain, who served
several terms rs mayor of that city.
and Is now minister for the colonies in
the imperial Cabinet. His wife is a
daughter of Mr.. William Endicott of
Newburyport. Mass, who was secre-
tary of war during the first adminlstra-
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 a population of
about 10000 of the most vicious class
in England. 1t was a hotbed of vice,
nursery of criminals and 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 were laid out and the vaccnt
land was leased at auction to the high
est bidder for terms of fifty years upon
the condition that buildings of a cer-
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
ings In the city. and has the most popu-
lar shops and offices. The cross streets
correspond.
The entire cost was SSOOO.OOO. 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-
cd 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
poration In the world. for II 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 similar manner. In
some cases they are operated at loss,
but In a majority of Instances they are
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.
tenance, hut also the expense OF light
Ing the city buildings and the streets