New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-30
NEW YORK DAILY TRIBUNE TUESDAY, SEPTEMBER 90 1yoz

ing Of Els, 600 in the operating expenses IT,
Scotch prudence with which the rnunicinaI No.
agelnent of the tramway business is conduc+aa
conceaIs the actual earnings Of the servico
which is highly profitable. although every eff
fort is made TO promote public comfort ND
convenience and the working force is ,ei+bo
nincbed nor starved. The experience Of C,1ae-
cow as il stands is a strong argument fo
roYn;ciral management OF local transit for tba
cannon welfare When the loans are paid and
the capitaI is refunded there will be highly
rernunera tive business available for the relief
of +axravers instead Of the enrichment of stock
holders
The corporation Of Liverpool was making a
n-of+ of 80 $40 out Of rentals when in 1897 II
bouebt the IeasehoId rights. property and good
will of the private companies for to6t,315 The
capital required for this investment will be paid
back in the course Of thirty years. and accord
inglv there is an annual charge Of a bout 1900
,,non the working balance Moreover about
eleven miles Of additional tramway have been
constructed. and experimental lines on the over
head system have been enlarged into a fairly
complete circuit of electric transit While there
&c q balance Of 056 in the receipts and
zrorl,i,- Axnenses the bulk of it is required for
interest and sinking fund payments on a total
canital axnAndirrIra Of fl.552.941. and also for
reserve and depreciation accounts The amount
set aside for the relief OF the ratepayers did not
exceed f16O45 N 1901, and this was less than
the rentals yielded before the service was
brought under municipal control The business
viii be highly profitable when the cost Of the
n1anr and electric mechanism has been repaid
through the operation OF the sinking funds.
Meanwhile there has been reduction OF fares
and an increase Of 1913 per cent since 1891 in the
number Of passengers carried Liverpool has
;,,+ ba I-v3f+a
one Of the best trauway services IN the ChlIed
kingdom. and under municipal management IT
ministers 10 the comfort Of all classes.
Birmingham has Jagged behind the other pro-
vincta1 Municipalities in obtaining control Of
the tramway service. being content with pront-
able leases for lines constructed by the corpora
ton: but the policy Of complete municipallzatlon
will be adopted as soon the present agree
rneuts expire Manchester and SalfoFd AFTER
leasing the lines constructed by themselves and
receiving for the common good more than ~ Per
cent upon the original investment, nave UNDER
taken rau7tcipal operation as the leases nave
fallen in and have also introduced electric trac-
ton The financial results cannot ne clearly
stated when the system is in 4 transiroh stage
The outlay for electrical equipment OF one
hundred and fifty miles is large and IL VIII 'e
thirty years before il can he provided for under
the oneration of the sinking funds. Leeds In
municipal undertakings. and converting 1henl
into electric railways There has been an enor-
mons increase Of passenger traffic. with a re-
ducrion of fares and the amount applied in re-
lief Of the rates IN 1901 was f2105S, after pay
n1ents for sinking fund had been reserved Inc
provincial towns are all moving in the same d.
re~tion MANY Of them began with the SOUND
principle of never surrendering their streets 70
private corporations. and those which allowed
tranawav companies to lay the rails soon dlscov-
cred their mistake and purchased the undertake
inzs After leasing the tramways on prontaole
terms. the municipalities have been forced 10
TAX up the mana cement in order 10 secure the
Introduction Of electric power and TO promote
the welfare Of the community. So long as the
renewal of leases a matter OF uncertainty
private companies would not provide any sub
stftute for horsepower. so that the English and
Scotch towns have been backward in employing
scientific methods Of local transit. Behind the
times IN the introduction Of improved n1echani-
cal devices. these stafd old towns have been ex-
trernely forward in applying principles Of col
lectivism or municipal socialism: but while they
are not yet deriving financial relief from the
rnunicipalfzation Of tramways, they have made
an investment which will ultimately prove high
~ remunerative. L N Z.