The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-12-31
THURSDAY, DECEMBER 81, 1903.
Municipal Trading.

I Municipal Trading.
An intelligent London correspondent
gives an instructive account of tho mu-
1iclpal trading done in England and
Scotland. By municipal trading ho means
the ownership and operation by cities Of
trainways. lighting plants, water works
and tile like. Ho declares that the scheme
Il IL generally successful; that the people
5 are pleased with it, and that the only
opposition to 1t comes from private cor
porations, which do not wish to give UP
their privileges. Ho admits that the own
ershlp and operation of municipal enter
rrises involves a vast increase in local
Indebtedness, but, on the other hand, he
Il insists that such inves tnents arc safe and
; sound. and that the people got the bcne-
@ tit.
81 Iii discussing the matter, tho Municipal
Journal reproduces Mr.. James Carriers
tables showing the estimated receipts in
sixty-sx English towns from remunera-
3 tive undertakings and tho amounts which
are applicable for the reduction OF the
rates Mr.. Carter Is the borough treasurer
y =
4 stntiatician. lie sets down in columns
Z the proportion OF profits from markets.
4 gas, water, electric light, tramways and
estates transferred to the borough or
district fund during the current year,
and estimates the amount in tho pound
available for tho reduction of the local
rates This amount varies from two or
- a.,
shilling or Is or 20 pence inalnrger cities
I'm Manchester tho profits transferred
from the markets, trnmways and gas
services amount to c1ai,0oo and this is
equivalent to n reduction in the local
* rates Of 10 pence In tho pound, In I.iv-
erpooi tho amount available for the low
erlng or the rates is .cl50.0SS. or II IL
4 pence in tho pound In Leeds with n
highly profitable tramway service, the
reduction is a full shilling; in Nottingham
it Il 15 pence; in Wigan 1t is fraction
over Is pence and in Darlington 1t is 20
pence. In all these instances no account
\ is taken Of the gross profits OF the rnu-
n!ciral services. but merely of the amount
available for the relief of the rates when
Z the Interest charges have been paid, the
sinking funds provided for and the pro-
portion for depreciation OF plant and
property written Off The tramway, gas.
electric light and other services. lie con-
n Guides. arc conducted on the most con-
sentative principles For tho benefit Of
the public. and not, like private corpora
tions for the enrichment of sharchod-
els.
i} In considering this subject, however.
ne must not jump at the conclusion that
because a system has operated success
fully and satisfactorily abroad It will
necessarily operate in the same way In
American cities. This correspondent says
that the town and district councils in
England and Scotland arc elective bodies.
which are compelled to render an account
OF their stewardship, and that II thoy at
tempt to do too much or manage the In
terestb OF she community badly, they are
exrored to criticism and suspended from
office. He points out that the members OF
the council are the trustees and directors.
while the taxpayers arc the shareholders
In municipal enterprises. and that the
business could not 60 on II the share.
holders were dissatisfied with results.
He argues that the development OF munic-
ipal ownership in the English and Scotch
cities has been continuous, and that there
has rot been, except In n few instances
OF gross Encouragement, any organized
opposition. which Is decisive proof thai
the Taxpayers interests have been ade
auatcly protected
In conclusion, he says that American
readers must not forget that the success
az ,runicipa enterprises In England ant
Scotland is due TO the sense of publi
obligation on the part of tho well-to.d
classes "The councils" he adds. ARE re
cruitec from retired merchants, wealth.
landowners and successful business mer
who are content 10 devote a large shar
OF their time to public work withou
other reward than the consciousness q
belag active and useful citizens WhG
&a there Is this sense or public duty til
lnsiress Of local administration can y
conducted and supervised without tain
OF corruption, scandal or partisanshil
and Investments involving municpf
ownership and collective benefit can h
ni,ely and safely made for tho immediat
relief OF taxpayers and the creation {
future sources Of revenue
q The crux OF tho matter Is Just here
municipal corporation Is business COZ
poration. and there Is no reason, from
democratic point of View, why Co
pnr4t.on should not control public util
ties, and no reason why Il should ~
operate them, except TOR the fact that
American c!ties the system becomes
f.t,n,, an nolitics nor would there