The indicator., 1897-09-18
MUNICIPAL BUSINESS
HOW ENoLlsHc,TlEs MANAoE.r
Blrminsham Shining Example of the
Wise Use of Funds to Reduce Cost of
Public CtilltIcs,

William Il. 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-
fnge 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-onc years and the interest
and sinking fund charges are 80 ar
ranged, either In the form of taxes or
fees for the enjoyment of the privl-
leges and convenienccs 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 n source of
revenue which may be devoted 10 other
purposes and caused n 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 ms 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 secrc-
tary of war during the first adniinistra-
tion of Mr. Cleveland
In 1870 the center of the city of Br-
mingham, including the railway sta
tions, the city ball The chamber of
commerce and other public buildings,
was surrounded by lcnthsomc slums-
about ninety acres of tenement houses
separated by narrow streets and still
narrower alleys. which rcscmhled 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
i'll England. 1t was Il hotbcd of vice. IL
nursery of criminals and II constant
menace to the health MS well us 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 ana 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, 50 far rs
possible, was burned. New and wide
streets We're laid out and the vaG,nt
land was leased al auction 10 the high
est bidder for terms of iifiy years upon
the condition that buildings of II GER
tain class Should be erected upon it.
1t is now the handsomcst and most
popular business section in Brming-
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 SS,oGO.oOo. The
city borrowed the money and issued
fifty-year bonds. The annual charge for
interest. sinking fund and other cN-
penscs of about Si0n.Uu which is met
by receipts from the rental of ihc lc:is-
sl ground. Thus the enterprise paid for
itself. The property is increasing III
value. At the end of fifty years, when
the leases expire, tile city of Birming
ham will be the richest municipal cor
porat ton in the world. for il will be the
owner of ninety acres of the most valll-
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 n 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
tcnnnce, but also the expense of light
Ing the city buildings and the streets.
Gas is almost universally used by the
people. A traveller from the United
States in visiting England is always
surprised Mt the small amount of elec-
tric light furnished. In London very lit
tie is used in the streets. and although
most of the hotels and private houses
are fitted up with wires. electricity is
not anywhere as common as in the
United States or on the continent of
Europe. venture to say there are more
electric candles in Tokyo than in Lon
don, and that Buenos Ayrcs has five
times as many. The long twilight and
the early dawns in this latitude enable
the people to get along with much less
gas than is consumed by the CORE
spending class in Chicago and other
American cities. and they are satisfied
With much poorer quality.
While the gAslght furnished in many
American cities is bad enough, the
worst is generally better than You gen
orally find over here. But the price is
very much lower. In Glasgow the city
authorities manufacture water gas for
Is cents per 1000 feet. II is sold to
the public for 80 cents 1000 feet. In
birmingham the price is 90 cents and
in other cities il varies from 30 to -
cents. At these rates the municipal
authorities claim that they can pay all
expenses. including the lighting of the
streets and public buildings. the in
'crest upon the investment. aud pro-
vide for a sinking fund which is TO
wipe out the indebtedness in lMnniN-