New-York tribune., 1906-04-02
EAST ANGLIA LESSONS.
High Tares Without Municipal
Orcnersbip-Electric Investment.
Norwich. March q


were making to draw public life into channels
which must be disastrous 20 the weIlbeins O.
the country since money was taken from rata
payers to carry on Improbable and unsuccessful
schemes. Norwich is not exposed 20 this
| proach. So conservative has been the municipal
MANAGEMENT that the water. gas and trarauay
services have remained under the control o:
private companies. and only within a few years
| has there been any investment OF public money
in electric works. The opponents OF municipal
enterprises are in the habit OF attributing ths
/ increase Of local taxation 70 the diversion o.
public resources and energies 10 industries
which ought to be kept under private manage
ment. Norwich does not prove their case. II
has not gone in for municipal ownership except
on small scale yet the tax rate is high. With
out expenditures for water. gas and tranway
| services it ran up from Is. I'D 20 9s- Sd IN
1903. and is now 9s. "a. II is among ths half
dozen highest tax rates in the United Kingdom
The town clerk and the public accountant have
various explanations to offer for this anomaly
One is the large number OF street improvements
involved by the expansion OF the cathedral city
into a manufacturing centre. Another is the
adoption OF three successive systems for the
disposal of sewage. Mr.. E. c. Shaw. the cour-
teous deputy accountant, while admitting that
the rate IS high, denies that IL IS burdensome
since the valuations which II Is levied ara
abnormally low. large proportion OF the pop
ulation Of 10000 occupies small houses. and
rents low. and consequently the high rate
does not cover oppressive taxation When full
allowance IS made for low valuations and FOR
heavy expenditures for pauperisn. education
sewage experiments and street improvements
the fact cannot be explained away that city
which has not run up a great debt for schemes
of municipal ownership has a noticeably high
tax rate
The advocates Of the new municipal policies
can find support for their own theories IN the
Insignificant relief for ratepayers from public
industries here The markets yield about f2 600
in net profits. about f2 $50 comes into the town
treasury from rents. and something IS added
from the management OF two large halls owned
by the corporation; but when the profit account
is footed up there is only 3D. available for the
reduction OF the tax rate, whereas IN Leeds and
Liverpool full shilling is taken OFF by munich
pal ownership. and IN other cities the gain is
increased 20 is. Cd. even Is Sd On this
count there is considerable discomfort IN Nor
wieh with the sluggishness Of the town council
IN introducing new policies. which are ordinarily
not only self-suppOrting. but ara materially
helpful IN lessening the burdens OF local taxa
ton Whenever proposals are made for the pur-
chase OF the plant and goodwill Of private COM
panies the reformers discouraged by the ex-
which ought TO interest American advocates OF
public ownership. Negotiations have been
opened several times for the acquisition OF the
water supply. but these have been suspended
because the companies ask an excessive price
for their works. There similar ob1eGtions 70
the purchase OF the gas service and the electric
tramways. The private companies are willing
to sell out at their own figures; but the capital
has been watered more less. and purchase
will involve large Investments OF capital and a
great increase IN local Indebtedness. with the
certainty that the city win have to wait fifteen
or twenty years before the municipal industries
can yield net profit equivalent TO q shilling FOR
the reduction OF the rates. For this reason con-
servative taxpayers consider 1t safer TO remain
old fashioned and to be charged with lack OF
enterprise. They console themselves mean
while with the reflection that their gas bills are
only little higher than IN towns where there
are municipal supplies. and that the trarnway
fares are cheap and the service Is fairly well
adapted to public requirements
Norwich IS not entirely behind the times since
1t owns and operates the electric lighting and
power supply. This undertaking was purchased
three years ago. when a private company had
expended moro than E144.OO0 on the enterprise
The price paid was s214.OOo. and the net capital
outlay now stands at f259442 The plant Is an
excellent one, the direct system being employed
With standard voltage Of 0.440; and with
more than three thousand consumers there are
net receipts OF over 10000 after the working
expenses have been met When the interest and
other special charges have been paid ana q
contribution has been made TO the sinking fund
for the reduction OF the debt there remains a
surplus OF f45S5 which Is set aside for the re-
serve fund and Is not available for the reduction
OF the rates. The officials gave me fun facilities
for examining the plant and the accounts. and
convinced me Of the efficiency OF the manage
ment- The percentage OF working expenses 70
receipts is AZ. or about the same as In liverpool
and Manchester. and the price per unit TO con-
suners for lighting power Is $3.50 which IS
reasonably cheap The city has a self tanning
industry, which IN the course OF forty years
ought to repay all the capital now represented
by the investment. and may ultimately Yield a
profit OF 10000 or 10000 annually when the
number of consumers Is doubled At present
the local authorities required by act Of
Parliament TO accumulate from year 10 year
reserve fund until it shall equal ne-tenth OF the
capital expenditure: and consequently there IS
nothing Immediately available for the reduction
of local taxation.
The tramways now operated by private COM
pany have an electric supply Of their own. with
an improved plant The tramway powerhouse
is on the river, within a stones throw OF the
municipal electric lighting works. The tramway
company has invited purchase through its d.
rectors. and economics can naturally be effected
if the electric lighting and electric traction are
combined. is done in towns where both in
dustries are municipalized. AT the electric
lighting works power easily be supplied for
moving every tramcar in the city and the sub