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

wise. may be travelled for a uniform fare
in the United States. He insists. however.
that the test is not the possible distance.
but the average distance traversed. He
comedies that the average haul in the United
States is longer than 1t is in England, be-
cause the dispersion Of our population
necessitates a more nearly universal use OF
transit facilities than do the conditions OF
British cities. Despite these conditions
he maintains that the cost of transit to the
riding public 10 very much less In Great
Britain than IL Is In the United States. The
average fare paid on all Britain's public
tramways was but "a cents In 1905. II We
assume that the average fare In the United
States is five cents the difference
viously be equivalent TO a saving OF many
millions Of dollars 20 the British public
over what q similar number Of passengers
have paid In this country. We are told that
many British tramway managers insist
that low fares explain the success Of the
public undertaking. Certain IL IL that Q
great increase OF traffc followed the reduc-
ton In fares.
Dur author ~testiies that at every turn
the foreign passenger on British tramways
10 impressed with the thoughtfulness for
VIZ St'HaCtt vi Nv PVplfos ~
Of rare Occurrences. In Liverpool there
was but one fatal accident In eighteen
months from persons getting underneath
he trucks. and that was due to gross care
l~eesnees or a suicidal intent. The same
thoughtfulness is manifest in the cleanli-
ness and attractiveness Of the cars. In
Glasgow all advertisements are excluded.
In all cities one usually obtains a seat for a
f.-. H. .-.lu. --.--.A-l A. 1891 L. Il.
car Ia limited 10 from four to six. The
double decker type OF car 10 all but uni
versal, and the car In 80 constructed that
Il may be opened or closed at the will OF the
passenger. II is another noteworthy fact
that on the British tramways employees are
invariably courteous and are very jealous
OF their jobs. They are compelled 20 be
considerate Of the public. because every
Rider has a sense Of proprietorship In the en-
terprise. The attitude OF the British public
toward it's municipal tramways is in marked
contrast to that Of the average American
toward a private company In which he
has no interest and over which he can have
no control.
American critics OF British municipal
ownership are cautioned to keep In view
the fact that Parliament requires all enter
prises operated by the cities TO pay taxes
at the same rates as private companies and
calculated on the same basis. They must
also provide a sinking fund for theu ultimate
retirement Of the debt. The time Of repay
ment ranges from fifteen to sixty years,
according to the life OF the investment.
The average period Of debt repayment Is
about thirty years. and IL involves an an
nual sinking fund OF about 8 per cent. In
addition to these burdens the British city
maintains the tramway plant at it's original
efficiency out Of earnings. When the
debt is repaid the enterprise is owned by
the community free from obligations.
Mr.. Howe's objection to the management
Of British tramways is that the financing
Is too conservative to be fair to the present
generation. The conservatism Ia attributed
to the terror which the average councilman
feels of the rate paying classes and the fear
that some new invention may render obsolete
the undertaking itself. In the year 1905
the Glasgow tramways earned 1852 $50
over operating costs. OF this sum-, 81, $780,
OBS was used for debt repayment, deprecia-
ton, ~renewals and the so-called common
good. q fund peculiar to the Scottish cities.
upon which the council may draw for emer-
gencies. All of this sum went into the prop
erty in some form or other. Now the aver
age fare in Glasgow that year was but i.se
cents. Yet even on this basis the earnings
were so heavy that the council could have
reduced all fares, irrespective Of distance,
to the insignificant charge Of one cent.
and still have met all operating expenses.
depreciation and taxation.
The financial success Of other towns is
scarcely less remarkable than G~lasgow's.
The city OF Liverpool reduced fares rs per
cent. when it took over the tramwsys,
and by this mean saved the travelling
public s., ZOO. 900 a year. It's employees re-
ceived sls4. 900 a year more than they would
nave been paid at the rate of wages prevail
ing under the private companies. Neverthe-
less. in the face Of these charges and of the
reduction Of fares the Liverpool system
Of municipal tramways will be free from in
debtedness in about twelve years time at the
present rate of repayment. In seven years
no less a sum than 81, $40 .oes has been set
aside for this purpose. Equally successful
are British municipal tramways. IL measured
by the returns on capital investment. In
1905 the net revenue OF the Glasgow system
amounted to 1878 per rent. OF the total
capital employed and 81 IS per cent. on the
outstanding Indebtedness. The same year
Manchester earned 1888 per cent. on its
capital: Leeds, iI.9s, and Liverpool, s.se
per cent.
I'll.
What has this student OF British institu-
tons to say about other experiments in
municipal ownership of public utilities, as,
for example, gas and electric lighting?
The answer TO the question will he found