The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1907-06-06
On PUBLIC ownership
Figures That Alarm Tax
payers i'm England.
A FEW ILLUSTRATIONS
Higher Municipal Taxes Due to
Cities Public Trading Enterprises.
Public Management of Gas
Works Less Economical Than
Private Ownership.

Great Britain has been for fifteen
tears or more the pioneer In expert
nents in municipal trading. The
believers In the principle of munich
pal management of certain forms OF
trade and industry have had re-
markably free hand In London and
lhe principal large cities of England
and Scotland. The public purse has
been open to them almost without
restriction; their control of the large
enterprises In which they have en-
barked has been absolute and their
reports Of the results of their stew
Rrdship have been such as they chose
10 make, says the New York Sun.
The English people are among the
most patient In the world in bear
ING their public burdens. They have
endured with little grumbling the
heavy increase in national taxation
made necessary by the Boer war.
Like the American people, they pay
greater attention to the manage
ment of national than of local
affairs, and this tendency has been
emphasized during the crisis of the
last six years.
The debt Of the municipalities of
Great Britain has increased from
1865, 100000 In 1884 to $2,345, 600
900 in 1904. The amount OF local
government expenditure in Great
Britain in 1892 was 900;
10 1902, the last complete year avail
able, it had increased to S720, ,000,-
eco. The explanation always given
OF the vast growth of municipal in
aehtedness has been that IL was in
cured for renumeratiye purposes
But Englishmen have found that
the rate per year of local taxation
In the country has increased no less
thau 63 per cent. This, of course,
Is entirely inconsistent with the ex-
planation offered.
The impression generally prevails
liz this country and abroad that mu-
nicipally controlled tram lines. gas
and electric supply, water works,
&c, in Glasgow, London and other
important cities show a considerable
Improvement in the matter of econ
0,ny and efficiency over privately
managed enterprises Of the same ma
ture. 1t will be a considerable sur
prise to the general public to learn
that the exact contrary is true.
The accounts of forty-eight NUM-
clpalities working tramways show
only thirteen make any contribution
10 the rates, seventeen make no de-
probation allowance, and only
eleven. allow more than per cent.
We all know how disastrous the
steamers of the London County
Council have been and continue
10 be.
1t is no answer to say that private
companies also make mistakes and
Lose money. No doubt they do; 1t
Is inevitable and is an additional ar
Bument. not for but against muui-
ctpal trading; but the difference Is
that In one cause they are losing
their own money, In the other the
ratepayers.
It will be supposed that in the
matter OF gas supply II In nothing
else municipal management would
Aa able to compare favorably with
private or company enterprise.
Comparative returns without ex-
eeption show the contrary.
The Manchester municipality re-
ports an annual profit to the city
OF $330,000 on Its gas works. IL
the London company charged the
same price as Manchester It's Gus
toners would have to pay $1,000
ooO more year for gas. If Man
chester charged the same price as
the London company their customers
would pay 1895, 900 year less and
the so-called profit would be turned
into loss Of 365,
1t Is In the management of tram.
Ssys that most credit is claimed for
municipal trading experiments in
Great Britain. Lord Avebury ana
Nses the so-called successes. and
the result becomes quite another
story.
There are in London two. tram
way systems, one north OF the
Flames, the other south of the river.
The County Council became pos
sessed Of both in 1900.
The capital value was approx
mately the same, $4,25O,000 on the
north, $4.4SO,0O0 on the south.
The council leased the nothern lines
to company and worked the south
ern lines itself,
During the period, the council has
electrified the southern lines, which
has slightly interfered with their
working, but the result of Ave years
operations Is instructive. The fares
have been the same on both.
The council figures out profit
tor the Ave years on Its lines OF
Sll9,500. During the same period
the lessees of the northern lines
have paid the city $958,000. But.
has been pointed out, even the
claims of the council to profit OF
p19,60O did not bear examination.
In 1888, the Bostonia of Boston,