The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-21

number Of public electric plants was s3,.
with n capital investment of Si5S. TBS. 600.
AZ the same time. the number OF private
plants wa l74. with a total capital Of si3s.-
s2s. ZOO. In the London metropolitan dis
tricts there are fourteen public plants and
an equal number of private plants. The
public undertakings in London are in the
hands OF the Borough Councils and do not
compete with the private enterprises. Par
Lament looks upon the electric industry
as a natural monopoly. and rarely permits
competition. The public and the private
undertakings supply different areas.
A very large percentage OF the municipal
electric plants have been opened during
the last five years. Most OF the opposition
to municipal ownership and operation Of
public utilities 10 based upon the outcome
OF the electricity undertakings. There are
grounds for the charge that the municipal.
ties have not made a business success u
these ventures. The towns have made
their investments in electric plants witt a
view 10 future rather than existing needs.
Moreover. tho use OF electricity is Of slow
extension. The critics Of municipal owner.
ship nave made no allowance for those
facts. but have pointed out that the British
cities have not. as a whole. been able To
meet all OF the operating expenses. together
with the proper depreciation allowances
and the sinking fund charges imposed hy
Parliament upon electric undertaking..
In May. 1905. the number OF municlra,
electric plants making a profit was rs.
the aggregate surplus for the year beng
81, t2l, 900. At the same time there were
sixty-seven public electric plants which
shove cd a loss amounting In the aggregate
to 1856, 600. Year 10y year the number O.
plants exhibiting an annual deficit dimin-
ishes. The author of this book think that
henceforward the public plants may be
expected TO show increasing efficiency
and a marked expansion in earning power,
II is towns like Glasgow. Manchester and
Liverpool which have installed large gem
Grating stations. and which have been busy
bringing the service to the people, that
are already earning large sums, which are
being applied to depreciation, to debt
repayment, and TO the reduction of charges
to the consumer. The rates charged by
the public plants differ widely. II we
take the United Kingdom as a whole they
average about 8 cents a kilowatt hour
for private lighting and from "a TO a cents
for power. The Glasgow electric plant
is one Of the largest and most successful
in the kingdom. IL has more than 1000
consumers and Is valued at moro than
90. 900. 900. At a total income of nearly
SCOT 900 in 1905, the gross profits in excess
of operating costs were S543,000. Those
gross profits were devoted TO depreciation,
TO the payment OF interest on the debt Of the
plant, to the retirement Of the Indebtedness
and the creation of a reserve fund az a
protection against any unusual emergency.
The average charge for private lighting in
Glasgow was Q cents a kilowatt hour and
2.55 cents for power.
Nv.
There is a large class OF citizens on both
sides Of the Atlantic who would limit a
city's public activities TO the so-oalled
natural ~monopolies. to industries which
make use Of the streets and are closely
identified with the we'll being OF the COM
munity and the administration Of the city.
Many members Of this class do not believe
in applying the principle Of municipal
ownership and operation TO industries Of
q competitive character. Nevertheless. In
Britain municipal trading has become a
much wider issue than the ownership OF
bttCCt tdiiWdybt gas " vi .hb
water services. It has long included
markets, baths and sewage farms. The
fearful condition Of the tenements has
forced many Of the larger cities to become
landlords and erect model lodging houses.
Local conditions. too. have produced GER
tain local enterprises. For example. the
city Of Brighton owns a r~aoecourse. from
which il derives a considerable revenue.
Two cities nave opened municipal theatres.
The city Of Glasgow has acquired a number
OF halls, where concerts. lectures and enter
tainments OF a high order are given at a
nominal cost. Many Of the cities sell gas
stoves and fittings, while others have opened
electrical supply stores which are run in
connection with their lighting plants. Ice
in sold by Wolverhampton. and West Ham
manufactures its own paving stones. SOM
British towns are agitating the idea al
municipal coal mines from which to supply
fuel to their enterprises and to individual
citizens as well Municipal INSURANCE
schemes are discussed with favor in s)m,
quarters. as are savings banks and broker
age establishments for the sale of public
securities. The manipulation of the
milk supply is also being urged. as well "a
that Of the production and distribute IN of
ice. The city Of Manchester has enlarged
it's tramway service so as to includ' In,
delivery Of packages and merchant 81
both within and without the CITY. DDcls
are widely owned by seacoas: towns. a.
though they are usually administered wv a
separate body from he council. Mun.ci-
pal slaughter houses have been sugGestei,
as well az the utilization of sewage farms
for the supply Of food and grain to the
city's departments.
All these facts indicate that the move
g toward municipal trading is hut
beginning in Great Britain. Mr.. Howe
points out that inasmuch as the big in
dustries which the cities have taken over
have yielded satisfactory returns it will
prove a difficult matter to check the ey-
tension Of municipal ownership 10y apl cgJ-
ing to abstract reasons for preferring
private to public authority.