The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-12-17
Loaded Down for Centuries.

roughly tie equivalent Ia American dol
lars.
Loaded Down for Centuries.
The estimates on some Of the under
takngs started within the last eight
or ten years indicate that they will be
paid FOR within "a generation, while the
date Of ultimate ownership OF the older
enterprises is reCkoned by centuries.
The reason for this apparent dis
Crepaucy IS that none OF the bonds for
the newer enterprises have yet matured
SO there have been no second loans. The
dates named are the ones when the pres
cnt issues mature, but I'm no instance IS
the propOrtionate amount OF money in
the treasury 10 redeem them.
1 have alsO credited each municipality
with the amount OF money supposed TO
be I'm the sinking fund, whereas this
money is not in any fund. but is invest
cd In other enterprises and IN many in
stances sQuandered.
Pluneing i'm municipal trading IS made
possible here by reason Of the fact that
there Is no limit set on the indebtedness
that a CITY may Incur I'm Richmond the
Limit is eighteen per cent. OF assessed
value OF real estate. or about $1,000 Nfo.
In Great Britain "A city may borrow just
as long as there r. any one to lend.
Bonds at a Discount.
This has gone on until municipal bonds
are now issued at heavy discounts. There
Is no requirement here as in California
that bonds must be sold Tor par and
accrued interest.
Tho London County Council recently
sold an issue of municipal bonds. whose
face value was 4a000o FOR E4JoO,uo
cash, discount OF $3.50 600 Some Of
the County Councils municipal trading
ventures have since become 80 wobbly
that these bonds are quoted at consider
able discount below this selling price
When the council desired 10 place an
other issue OF 5000 no this year the
Bank of England advised the Finance
committee not 10 attempt IT, AS II would
be practically impossible TO market them
oven at a great discount
During the last six years the County
o. "a be- a
ing e5o00.ooO a year FOR municipal trad
ing ventures. The city's indebtedness for
these ventures alone at tAc present time
4 glance at tho table which accom-
uanies this article viii show that Lon
dons municipal trading indebtedness.
population considered, Is no greater than
that OF the average municipal trading
city.
Taxes Fierce.
And how has this result affected the
tax rates Of the municipal trading cities?
contrary TO me expectations OF t-e So
citiist labor union prophets, IL has in
creased the taxes on AN average OF
twenty-five per cent ia the last ten years.
This is tie feature OF municipal trading
THAT has caused the present reacuonary
English cities fell into the slough OF
municipal ownership while following the
lure of promised lower tax rate But
Tie tax rates have grown higher instead.
he more they have struggled 20 escape
these high rates the deeper they have
become imbedded ga the trading bog.
The statistical reports issued by the
Imperial Board Of Trade. the English
equivalent To our Department OF Com
merce. and Labor. show that the indebt-
tdness ~ the English public trading cities
is about five times that Of the average
American municipality.
They further show that the middle and
working classes pay az least three times
Tie amount Of local tax that is paid by
these classes I'm America
Aud an the local taxes have increased
az least twenty-five per cent since the
cities started TO follow the Socialistic lure
OF municipal trading.
John BurnS's Fallacy.
Bernard Shaw and John Burns assert
that the rates would have increased re-
gardless OF municipal trading. that the
increase has been occasloued by the wider
range OF duties OF the municipalities. a
comparison ~ the rates OF English and
American cities FOR number Of years
eucctually oispos - n this faIlacious Argyll
mtut The resident ct an English city
enjoys the advantages OF cleaned and
lighted streets. a sewer system, removal
of garbage. police protection and free
schools in rcturn for his taxes An
American city supplies the same. But in
America - IS not necessary 70 make the
the last in order 20 provide the recognized
necessities.
Many English municipalities 90 farther
They provide public baths. but they
charge enough for their use 70 make them
IN MUNICIPAL TRADING AND THEIR