The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-07-21
STREET RAIL WAYS.
Comparison of the Systems
of Municipal and Pri-
Vate Ownership.
NEWARK AND GLASGOW
General Manager Young Shows the
Jersey Towns Gain Over the
Scottish Metropolis.

theme Tor Qepate among students oi ecu
nomics. much has been said Of the results
achieved by the corporation of Glasgow,
Scotland. In that city the tramways are
owned and operated by the municipality,
and some reports a been circulated
which would Indicate that the Scotchmen
are either far ahead of the Yankees In the
management of urban railways. or else
the profits of the American street car
magnates have been much greater than
most people are aware of.
As an instance the argument has been
advanced by advocates of municipal
ownership that the profits of the street
railway system in Glasgow were sufficient
to almost meet the running expenses Of
the city government, and that it was ex-
pected that, with the growth of a few
| years more, the railroads would furnish
| enough revenue to obviate the necessity
of assessing taxes on the real or personal
| property of Glasgow citizens.
Were the statements concerning the
| Scotch metropolis based on a solid foun-
dation the comparison with the Console
| dated Traction Company in this city, for
example, would be odious, but a little fig-
uring seems to show just what relations
| the respective railroad systems bear to
tIl6 ilCOllCS III oA&c6OW cAiA - N'
Glasgow has a population of $4,000 in
round numbers. probably a little more.
Its railway system is operated on. an en-
tirely different principle from that in
| vogue here.
1t was 1872 before Glasgow had a street
railroad of any kind. The year previous
! the city began the work of constructing
a tramway system, but it was August,
1872, before it was ready to be operated.
Every foot of the track belonged to the
municipality, but the road was leased to
a stock company. The latter was COM
PEELED to make annual payments to a
sinking fund of sufficient amount to
liquidate the capital invested; pay inter
est on capital invested; an additional
amount not specified, to meet
the expense of renewals and a rate of $3.50
per mile Of track
After the original investment the au-
thorities extended the road, at an expense
of SIT, 475, but under the terms of the
lease no provision could be made to COM
pei the lessees to make additional pay
ments to the sinking FUND for the liqui-
dation of the costs of extension. The
amount paid for mileage increased and
varied. depending upon the amount of OPP
Grafton, and the greatest sur ever receiv-
ed by the city authorities from this
source was sos, 800, in 1894.
An agreement could not be reached be-
tween the city and the lessees for a re-
newal of the contract n the city as
sumed control and started to operate the
road July l, 1894, thus beginning the test
of municipal ownership to its fullest ex-
tent. AT that time there was seventy
+Ir1o rai1ac ne tpo clc on thfrfu-Sauan
streets in the city. For the first fiscal
year. less one month, ending May 81. 1895,
the Street Railway Department turned
over to the city treasury ''for the com
mon good" Sal, 300, an increase of S13, 900.
This sum was still further added to in
1896, when s45, 900 was contributed to the
city treasury, as profits.
The statement returned by the Glasgow
Street Railway Department, as incorpor-
ated in that city's official report for the
fiscal year ending May 81, 1896, shows the
following, with the amount given in
American money instead of pounds ster-
ling
Receipts ..-a..... ........-........Sl6Il,S $50
Working expenses ............... 1,255,55O
Balance 5000. .............. S4l6, 1896
The balance was divided as follows
Interest on capital, $63, $50; sinking fund,
$50, 705; depreciation, SS9,045; way renewal
fund, $500 paid to common good in lieu
ST. S. @ 81. rates etc. 80 000; reserve fund.-
The fact that all the roads in Glasgow
are still operated by horse power and that
the cost of horses is included in the de
probation item. explains why this sum
reaches such proportions.
Glasgow also has its own methods of
charging fares. A Number of stations
have been established at varying dis
tances, and the fare is one cent from sta
ton to station. Different colored tickets
n p O1Upn fn no p0rxc NV h ayr a+a~
designating the particular station to
which the former desires to go, and the
fare is based on the distance to be trav-
elled., At each station the tickets are col
lected by an Inspector n a penalty
might be enforced against a passenger
who refuses to show his ticket when re-
So much for Glasgow and municipal
ownership; now for Newark. In this city
the, Consolidated Traction Company con-
was granted outright by the city, but
the municipal authorities have power to
regulate the operation of the road to a
certain extent. Thu came holds good in
the case of the Newark and South Or
ange Street Railway Company, which
corporation operates but comparatively
It's, For the, privilege of equipping their
roads with electricity the companies were
q few years g compelled to pay FIVE
to the city as a special tax. In addi-
ton 70 this the corporations pay taxes
oh iedl anu PERSONAL properly anQ pay IL
cense fees for every car run in the city.
As told in the News" Thursday the
Consolidated Traction Company paid $50
1921 as its five per cent. tax, which
sum was nearly $4,000 in excess of the
net earnings Of Glasgow roads under
municipal ownership for the twelve
months ending May 81, 1896. The South
Orange Company paid Newark SIS. 6S6.6
this year. bringing the total $23. 900 above
Glasgow's report for the year before last.
David Young. general manage of the
Consolidated Traction Company. has
probably given as much study to the rel
ownership of street railroads as any man
IN this city. Speaking as a railroad man
to a News reporter, he said
Municipal ownership of street rail-
roads is out OF the question in this coun-
try. as a city couldn't begin to give the
facilities for transportation that a pri-
yate corporation can, Take, for IN
stance. our West Orange line. II the
municipalities owned the railroad and
streets to go to Eagle Rock, you would
pay your fare to the Newark authori-
ties That would be FIVE cents. Then
what would East Orange want? At least
five cents more. Orange would come IN
for another FIVE probably, and West Or
ange. not to be outdone, would also de-
mand five; SO 1t would cost you twenty
cents. for a ride You can now get for a
nickel.
Il tell you. the people don't realize what
we are doing for them" said Mr.. Young
and the smile that is peculiarly his own
vanished for q moment. "Tll admit that
about our system, but we have done a
rnSf nraa1fuf cf r,rrir d,1ri,r xha 1891 49,