The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1907-12-12
GERMAN N. 0. THEORY
Public Utilities Operated by Cities
Must Pay Their Way.

4 |tl1eso 70 localities where the Pat
rOnase Win BE Large.
In theory public utilities operated by
German cities must pay their own
way. This theory is not, however.
fully borne out in practice. because the
allowance for depreciation Is frequent
ly inadequate. and the plants IRE not
required to make good the taxes for
merry paid by the companies they su-
perseded. But the effort to put these
services on a paying basis has resulted
In limiting the various undertakings to
districts where they are sure to pay
On the other hand. when these utilities
are operated by companies the same
restrictive results are noticed. because
| almost without exception the fran
chises are so weighted down with pro
| visions for payments to the city and
are at the same time OF such short
duration that the companies would not
/ be warranted In extending the service
beyond the districts in which they are
sure TO pay ut once
Professor Hugo r. Meyer in recent
articles In the Electrical Railway Re
view and the Journal OF Political Econ
omy describes the results OF this re-
str1ctive policy on street railways and
electric lighting. and the following
facts are taken from his articles:
The cities that went into the street
| railway business adopted uniform
fare of % cents. but with two excep-
tons abandoned this after short trials.
The experience of two typical German
cities will prove Of interest as showing
what high rates are charged when
cities attempt to operate utilities on n
paying basis
When the city of Cologne took over
the street railways the fares charged
were % cents for distances up to Is
miles and 3.T5 cents for the maximum
distance. GO miles. After operating
them awhile the city authorities raised
the fare materially while extending
slightly the minimum stage. The pres
ent charges are 30 cents for 10 miles.
80 cents for 80 miles. cents for
5.G3 miles and G.25 cents for distances.
oyer 5.G3 miles.
The city of Dusseldorf. which ac.
quired it's street railways in 1900. at
tempted to operate them Mt the uni.
form fare of % cents, which had been
pany. but soon found that 1t was losing
money and limited the % cent fare to
2.44 miles, charging 2.T5 cents for dis
tances between that and 4.2J miles.
After increasing the track mileage the
city again raised the fare considerably,
reducing the minimum stage. The
prices now charged are % cents for
1856 miles, 3.I5 cents for $40 miles. >
cents for miles. G.2J cents for as
miles 10 cents for 6.3S miles, S.T5
cents for T.f6 miles and 10 cents for
7.94 miles
1t should be- borne II mind that these
prices are really very much higher
than corresponding rates would be in
this country. because wages in Ger
many are much lower than in the Unit
cd States The eXorbitance of these
charges is shown 10y the fact that in
Minneapolis. n city OF the same size
as Dusseldorf. a passenger can ride
thirteen miles for 5 cents. while in
Buffalo. which has population about
equal to that of Cologne, the passcn-
ger gets fourteen miles for nickel.
The desire of the cities to make all
possible profits out OF franchises and
to limit them to short terms has re-
suited in greatly delaying the develop
mept of public electric lighting. al
though the people were anxious to
have the new lights installed. This is
shown by the fact that in 1S94-05
there were in operation in factories,
stores. etc. more than 4.TT6 private
electric light plants. although two
years later there were only little
more than 300 central electric lighting
stations in the whole of Germany. AS
the private or isolated plant. rs 1t IS
called In this country. is far less eco
nomical than the central station. this
restrictive action OF the German cities
has thrown great burden OF cost on
its progressive citizens. The situation
is the more remarkable because at the
time of the introduction of electricity
for lighting and traction purposes Ger
many was far better equipped to per-
feet and develop these systems than
was the United States. vet It has been
completely outstripped by our own
country. chiefly IL not solely because
here private enterprise has been given
comparatively free hand.
In closing one OF his articles Pro
lessor Meyer says:
THE unwillipgncSs OF the cities to
suffer financial losses on behalf OF the
congested city populations after those
cities had denied those congested pop
ulntionS RELIEF Mt the hands OF profit
seeking conparlcs Is in instructive
contrast 10 the eloquence with which
the advocates OF purchase by the cities
had denounced the dividend seeking
companies"
p,,.t...d Current mor. Economical