New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-10-03
THE ELECTRIC SUPPLY.
/, PROMISING FIELD OF MUNICIPAL So
cIAITsM IN ENGLAND INVEST
MENTs WHICH WILL RE-
DICE TAXATION.
DUCE TAXATION.
London, September 20.


,ortsnt municipal industries Of the United
ty,,qaom. The provincial towns having pur-
..sas and enlarged the gas plants for light
a., houses and streets were reluctant al the out
-, 10 introduce an electric system. and were dis
,osed 10 allow private corporations TO expert
roent with il. but as soon as its commercial
,slue was ascertained they took advantage OF
he short periods for which concessions had been
ohtained by electric lighting companies and OBJ
,sined control Of the business on reasonable
,srms. Parliament had been wiser than the
,oUn corporations in this matter A select COM
r,ittee had conducted investigation in 1873
ana an act passed in 1882 arming munich
rsutes with fun power TO undertake electric
s,pply and either limiting the privileges OF phi
,ste enterprise 10 seven years or enabling the
local authorities 10 acquire buildings and plants
Al the expiration Of twenty-one years at orig
inal cost less depreciation, without any allow
ance for goodwill prospective profits. The
term was subsequently extended by an amend
ed act 10 forty-two years, hut the conditions for
municipal ownership and operation were so lib-
eral that private enterprise languished. The
municipalities waited until the experimental
period had passed and many private companies
had failed They profted by the experience Of
the United States and Germany, and finally took
possession of the business when il could be sci
entAcaly conducted. and when moreover. cleo
trlc supply Nas required both for lighting and
for tramway traction. Municipal enterprise in
Great Britain is slow and cautious, but il Sc
cures control Of every legitimate industry as
soon as the commercial success Of progressive
methods is demonstrated.
Electric supply, being still In tentative stage,
is less conspicuous as municipal industry than
gas supply. The latter industry has been COM
pletey mastered by over TWO hundred towns
in the United Kingdom. London. Liverpool
NeWcastle-on-T Tyne and Dublin are the only
cities which do not control and manage the gas
supply. Primarily the object TO cheaper
gas for consumers rather than 10 create a source
of revenue for municipalities. but the business
has become profitable, and will be highly re-
munerative soon the capital and loans are
repaid by the operation Of the sinking funds. In
Glasgow the surplus profits are used for effect
ing reductions in charges, which have been,
lowered from As. I'd. 10 IS Cd in the course OF
thirty years. I'm Manchester the charge for gas
has been cut down TO IS. Sd. and the gross
profits. amounting 10 f130.405 in 1901 leave a
net profit Of f52.7Jo after the sinking fund pay
ments are made; and this is turned over 10 the
treasury for the reli'f Of taxpayers. Stafford APP
plies f325 10 the reduction Of the rates, Bir-
mingham E29,S2l, Leicester E27334 Bolton
10000. The price Of gas ranges from Is ID.
Blackburn, the ordinary rate being about
IS Sd out Of 240 municipal gas undertakings
there Is a gross profit of fl.657,525 and when
the capital invested. approximately 1911, Jeoeso
has been repaid through sinking funds there
will be a large source Of revenue for the relief |
OF local taxation The gas supplied is Of excel |
lent quality and is cheap There could hardly |
De a more practical illustration Of the practical
utility Of municipal socialism.
The achievements Of municipal trading in cleo 4
trc supply are less noteworthy than in gas sup |
ply but are most encouraging. Bradford was 1
the FIRST city 10 enter upon this field Of industry,
and after a season OF experimental work il now /
has a self-sustaining industry. With capital /
OF fs54 204. and loans amounting 70 t266.l5s /
there Is a large investment 10 be covered by the 1
operations Of a sinking fund. and consequently /
the net profit. after the interest and fraction /
OF principal have been paid is only tS.52s. The /
charges. however, are low-ahout 4lsd for light /
ing. and from ID 10 %. for motive power. /
Brighton which was the second city 10 IN
dertske municipal electric supply. has one OF
the best plants in the kingdom. and has dis /
played exceptional enterprise and scientific man
agemeut The gas supply is controlled by a pri-
waite company: but the electric lighting arrange
ments have been ordered ny the municipality, /
and so marked has been the public preference I
fog this system that new power station has /
been constructed outside the town in Shoreham /
Rarbor, where coal can be shot into the station
from the bunkers Of GOLFERS. This station viii 4
cost 100000, and viii effect material econ
omies in electric service. The charges are on
sliding scale. according 10 the amount Of cur
rent used, the average price being 3 2-5d. There
Is working balance OF $4,000, out OF which the
interest and sinking fund charges are paid. The
current for the municipal electric tramWays is .
obtained from special plant in the electric light
ing station, and the two systems % lighting /
and power win be operated most economically.
About l15 municipal undertakings Of this
class are now IN operation; but the financial re-
suits cannot be clearly ascertained until electric
traction has been fully ordered. The majority
OF these enterprises are self-sustaining, and the
plant has been supplied at moderate prices.
Electrical syndicates have not been employed In
The United Kingdom in financing tramway and
hghting companies and overwhelming them
with costly mechanism. This was done in Ger
many before the reaction against speculative
activity SET IN two years ago. and II was one OF
me causes OF the prevailing depression. The
British municipalities have financed their own
electric supply economically. and In many In
stances are now prepared 90 sell on the lowest
commercial terms units FOR lighting, heating
"no motive power. The outlay for plant has
'esh large and in some instances the require
nlehts OF the community have been Overrated, so
Nue' There Is a small deficit In operating eN-
Fe.'aes 1no Interest payments; but these electric
tpt'ses have been cautiously conducted as
-, Sho The business is in sound condition
ices vary In different localities, a sliding
'eihs generally adopted for both light and
~ IN Board Of Trade units. AT Blackpooi
me charge Tor lighting is "a. for the first hour
'u "a. afterward: and power is supplied for
' eieclflc tramWays a ID rer unit Al Aber-