Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1905-06-22
.ON CITY OWNERSHIP
some Interesting STATISTICS
FOUND IN CONSULAR REPORTS
Regarding municipal Ownership in
Europe. The NuniCipalizatiOn of
Natural MOnOpOlieS Seems to Re.
suit in Public Good Wherever
Tried.

Tried.
The consular reports are giving some
interesting information in regard to
municipal ownership I'm Europe. Below
will be found extracts from the report ol
Consul Walter q. Hamm, of Hull, Eng.
land, and Consul Frank w. Mahin, at
Nottingham. England. The municipali.
zation Of what ae known as natural
monopolies is going on in England, and
where the experiment is tried it is nearly
always found to result in great benefit to
the community and to the employees.
For instance, Mr.. Hamm says that the
construction of the municipal telephone
system at Hull has brought about a
speedy reduction in rates. The muni-
cipal telephone has reduced the rates in
Hull to about 81 a month, and street car
fare to cents. Gas is being sold at less
than so cents a Thousand feet, and elec.
tricity is furnished at 8 cents per unit.
At Leicester the city has taken over
the street car lines, or tramways az they
are called. and is going to operate about
fo,ty-two miles. The fare is cents, and
sometimes the distance travelled is nearly
three miles. The gas and electric plants
are also in the hands o! the public in
Leicester, and will run ct profit. Mr..
Hamm says:
1.-THE construction OF municipal tele-
phone system in Hull has brought about
a speedy reduction in rates. At a recent
meeting Of the corporation telephone
committee it was announced that the
charge for unlimited Ger ice over an ex-
elusive line would be a5 ($24.33) per an.
mum to private houses and E6 IS (30.65)
to business premises. This reduction
has been followed by large increase in
the number OF subscribers. The National
Telephone company has been compelled
to reduce it's rates for unlimited service
to private houses from Gl0 (48.66) to half
that amount. To what extent this re.
duction will effect the company in other
towns and cities is matter of interest.
1t is stated that in the agreements which
the National Telephone company has
with practically all the large towns and
cities in England, and by which the COR
porations OF those towns granted the
company underground way leases, it was
m Ade condition that in case it reduced
its unlimited service rate in any place
below $48.6S, similar reductions must be
made. it. demanded, il all other towns.
If this is the case, then other cities may
now demand the same telephone rate
that is made in Hull. Thus the competi.
ton in this city may prove beneficial to
every city in England.
"a recent report Of the comptroller Of
accounts of the Hull corporation throws
some light on the position of other cor.
poration enterprises and the success at.
tending their municipalization. On &C.
count of the crematory $3.50 A was ex.
pended for maintenance and $3O6.58 was
received in the year ended April /, so
that there was an excess Of expenditure
of $l.110.53. In the gas department the
profit in the year was $3.50. from
which there is to be deducted interest on
! the debit balance and sum for the sink.
ing fund, leaving net credit balance on
the revenue account Of $2.637. The
working profit Of the water. works was
$40 1893; deducting $l2,652, city fund
annuity; $57 ,449. interest on loans, and
1892 for the sinking fund leaves the net
profits $7l 1852. The revenue account OF
the electric lighting shows a working
profit OF $SS, 1896, from which there are to
be deductions for interest on loans,
sinking fund, and meter installments,
leaving the net profit $7,976. The work.
ing profit on account of the street cars
for the year was $685. from which
$48, 1929 is to be deducted for interest on
loans and $45,70O for the sinking fund,
and $37 400 to be transferred to the re.
serve fund, making the credit balance
for this year $57 500.
"ln each instance, then, with the ex.
ception OF the crematory and the baths,
the municipalization of public utilities in
Hull has resulted in profit to the city
treasury. The profit it is true, is small,
but it must be remembered that the
charges for these public services are ex.
tremely low. A ride on the street cars
in any direction to the end of the line
costs on y two cents; an exclusive tele.
phone in private houses costs less than
$25 year, and in q business Office about
$50 year. Gas is sold at 4S cents per
thousand feet and electricity at 9 cents
per unit. The object is not 80 much to
make profit for the city out of these
utilities as to furnish the public with the