Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1905-04-04
~ EYoND all question transpor-
. tation occupies first place
ouaonx tho r,o,anininal 1ax.ohlor,aa

at the cost Of the company. In 1879
the company entered into an agree
ment with the city under which the lat
ter purchased the existing lines for
$4,000 and completed various other
lines, leasing the whole system to the [
company at rental of 711a per cent on
the purchase money from the date Of !
construction, the lines to be maintain i
ed at the cost Of the city. In 1895 the
city made lease to the company ex-
tending until 1915, but reserved the !
right to purchase under certain condi-
tons.
Two years later the patience of Liv-
erpool was exhausted. The company
utterly failed to properly manage its
affairs. Its rates were extortionate
and its service worse. It absolutely re-
fused to introduce mechanical or cleo
trical power, and after due deliberation
the city decided to acquire and operate
the undertaking. Parliament granted
the power, and in 1897 the entire
system passed into the hands Of the
municipal authorities, the purchase
price being about S2.Soo 900.
The city went about the tramway
enterprise in thorough business way.
It proceeded to engage the services Of
O. r. Bellamy, one Of the foremost Of
English civil and mechanical engineers,
man fully conversant with the sci
ence and practice Of transportation on
both sides Of the Atlantic. In two
years time the hundred miles Of horse
car tracks had been transformed to
electrical traction, and in addition
there had been laid forty miles Of new
track.
The citizens were delighted with the
change. In the place Of filthy, Ill light
ed and slow moving horse cars, run
ming at long intervals, there was In
stalled system which in all respects
compares favorably with the best mod
ern practice in the United States or on
the continent. More than that, the city
made sweeping reduction In the
rates Of fare.
It reduced the hours of its conductors
and motormen from eighty to sixty a
week and actually paid them more for
the shorter hour day than they had for
merly been receiving. The private
company sold the mems uniforms and
received tidy profit from the transac-
ton. The city gave uniforms to ita
men and only insisted that they keep
them clean and in good repair, SO as T.
reflect credit on their employer.
The first year of electrical traction
and Of trial Of all Of those radical re
forms was 1901, and when all expenses
had been paid there remained profit
Of more than 100000 The best the
private company had been able to show
with its high fares, low wages and mig
gardly policy was $1S4, 900. After pay
ing into the sinking fund, meeting n
terest charges and setting aside $11b,
900 for renewals and depreciation there
remained large sum.
The profits for the second year were
$3.50 an increase over the proceed
ing year Of $165,OOO. The tramway.
department contributed $125, 900 Of thi!
to the general tax fund.
In addition to its voluntary contribu
ton to the general fund the municipa
tramway pays its taxes just as II Il
were private corporation. This prac
tice is common with the municipal
enterprises Of all cities in Great Brit
ain. Municipal tenements and cottages
municipal gas plants and electrical
lighting and power stations, tramways
markets and all other revenue seeking
institutions pay not only city but also
income taxes. Last year Liverpoola
tramways paid in taxes sum exceed
ing $65,000. The city owns the cleo
trical power plant, but the tramways
department was charged with every
unit Of power it used. It therefore
stands squarely on its own bottom.
Almost simultaneously with its pur.
chase of the tramways Liverpool SET
about to acquire the electric lighting
and power industry. The private com
pany was fairly prosperous one, but
parliament gave Liverpool the right te
purchase it's plant. After protracted
negotiations a price Of $2,OOOO00 was
agreed on. OF this sum 100000 was
bonus, while the balance represented
| the actual value Of the plant turned
over by the company.
The city did not make this purchase
for the sole purpose Of generating
electricity for its municipal use. II
sought and obtained grant which en-
abled 1t to furnish light and power tc
| all users. The advocates Of this step
urged that numerous benefits would
follow from the installation and opera
ton Of municipality owned and op-
Grated plant. The city would obtain
Its light and power at cost, private
users would receive theirs ats mini
mum advance over the actual cAst, and
manufacturers and merchants would
y therefore have an advantage over out
sue competitors, who were compelled
" pay rates which yielded large divi-
It. uenas to private owners of light and
I'll uo"er plants, Again. the surplus prof
s. lts would go to the relief of tax rates
thereby making the circle Of aconomy
va complete. " osSno'
Il Immediately after tho scorr,r. =,
ms hrouerr the lrauwsys r,sa ~ ~, y.