Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-29

has not outgrown the period of an expert
ment only ten years old, and 1t is not IN
cined to embark in other public commercial
enterprises at it's own risk. Said Mayor
Beardsley, a distinguished member of the
bar a graduate of the University of Illinois
and diligent student of municipal ques-
tions in the United States and abroad: MY
present attitude is that It would be wise for
any city government to meet each concrete
question it arises and to decide, after
thorough examination, whether II is better,
both officially and financially, for the mu-
nicipality to go into public undertaking or
to grant the service to a private corpora
ton. upon terms that involve municipal
control and regulation.
This city, as do Omaha and st. Louis,
pumps its water from the muddy Missouri
river This service was formerly rendered
by a private company, but in 1895 the city
decided to buy the plant. 1t paid the COM
pany $31GO.OOO and issued for improve
ments 81 100 900 in per cent bonds, making
the original cost 81 100000.
There are now outstanding $3,575, 600 Of 4
per cent water bonds
Here is the way the mayor figures the
present outcome of this municipal invest
ment: Consumers of water have paid up
to April 1905 Che end of this city's fiscal
year,, total of $5.2l3.2S2 To this add
contribution from the general tax levy for
the sinking fund of sSSS, 040, and the total
cost of the municipal water service is
S. 1O1, 322
If the former contract and rates with the
private water company had continued. the
consumers would have paid $5,1IO733 and
the city would have PAID for hydrant rent
ais 81 .663, a total of s. .207,396. Thus
there has been in ten years an apparent
saving to the city, under municipal owuci-
ship, Of 81 101 ,0I4.
No allowance is included here for the
taxes that the city would have derived
from the property of the private company.
The mayor essayed to furnish these figures,
but they were not available.
Vindication of System.
The revenue of the city water depart
ment in 1905 was $685.. 1886; it's expenses were
$40, 737, leaving an apparent profit of $224,-
500. From this the mayor subtractS an al
lowance Of . per cent upon the investment
for depreciation of plant of about $121,O0O,
and adds credit of $4,000 in saving of
hydrant rentals. leaving a total net saving
or profit of $296,O0O, or nearly per cent
on $4,000. 900 which - approximately the
cost to the city of the property. That is,
the estimated equity, at revenue of per
cent of the city in its WaterworkS, accord
ing to these figures, may be placed at
st, 900 900.
These statistics are available for use by
advocates of municipal ownership as vim
dicaton of the system. Kansas City Is
proud of them, although they ignore the
loss of public revenue from taxation and
although statisticians may question the suf-
tfciency of the amount allowed for depre-
citation.
One contributory cause to this measure of
success has been the civil service. The en-
ployes of the water department. it is claim
ed, have been kept out of politics by COM
plete reversal of the usual civil service
method. Instead of making 1t hard to get
in and easy to get out of public employ
ment. the board of public works composed
of the pr sident of the upper house of coun-
ellis and three bipartisan members OF coun-
ellis appointed by the mayor make it easy
to get employment and hard to get out.
This is the oldest civil service scheme, per-
haps, ever tried
Public Employment.
When the city bought out the private wa
terworks company it retained all the en-
ployes. Their experience made the
basis of the new system of public employ
ment. In making appointments to higher
positions each administration has sent the
names to the council for confirmation.
When appointed, these men cannot be dis
charged except for cause after a public
hearing. This system, which will be viewed
with horror by professional civil service re-
formers, has worked well in practice. The
laborers for the department are of two
classes, paid Sit and 81 per day. and their
work day is eight hours. The work day of
the private company was twelve hours.
All of this experience with its waterWorkS
has not impeled Kansas City to plunge
headlong into further experiments in mu-
nicipal ownership. But it is considering a
gas franchise that has behind it the mu
nicipal ownership idea hitched to business
brake. The city is at present supplied with
artificial gas by private corporation con-
trolled by the United Gas and Improvement
Company of Philadelphia. Its charges are
city by popular vote rejected a proposition
to issue bonds for municipal electric light
ing plant.
drilled With Pipe Lines.
Just across the river lies Kansas, state
grilled and honeycombed with pipe lines
tapping its natural gas wells. private
corporation asks of Kansas City a fran
chise to furnish natural gas at p cents a
thousand feet for domestic use and at 10
cents to manufacturers. The proposition IS
to issue bonds for the actual cost of the
plant and lands. Then, out of the Income
of its business. the company would pay to
itself interest on the bonds, operating eX-
penses and a profit OF 10 per cent on its
investment. Its net earnings, after these
items are deducted, would go to a sinking
fund to retire the bonds After ten years
the city would have the option of acquiring
the property by paying for whatever bonds
outstanding, whether all or part or
none.
In the meantime the council can reduce
the charges, If the reduction would not in
terfere with the payment of interest, oper-
atng expenses and 10 per cent profit. 1t Is
represented lNdl tHlS dIloullls 10 d contract
between the city and company by which
the city is to get cheap natural gas and
can buy the plant at its cost even if no
bonds are redeemed after ten years.
The question is. Where will be the natural
gas of Kansas ten years hence? Even now,
it would be brought from 80 to 30 miles
to this city. The experience of Toledo with
a natural gas plant. where an investment of
s. $50 OJO was left underground with a re-
manning asset of 500 900 might be cited.
This sturdy and most American of cities is
debating carefully this projected extension
of municipal ownership.
E. c. ROWLAND.