The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-05-26

/ PWUTTD TEHTTTTE OF IIUTUVUT ~ TUE"t Ut 70
which date the streets OF the town were
| lighted with oil. From 1925 to ls{9 the
Continental had a monopoly. in Berlin and
elsewhere, but the high prices charged
induced the Berlin city fathers 20 start a
gas plant OF their own. Competition went
on until both companies were threatened
with destruction by the perfeotinR OF the
electric light. Then came the incandescent
burner, the stocking, as 1t Is called in Ger
many. The Continental now lights the
centre Of Berlin. charging for it's supply
!2.35 pfennigs q cubic metre. as against 40
pfennigs. the cost Of lighting by electricity.
SO perfect have the company's incandescent
lamps now become that one of the large
open places Of the city is being lighted
with them instead Of electricity.
The nenny in the slot meter was slow
TO be adopted in Berlin. but It. has become
popular in the last three or four. years and
there are now 10000 IN u-A. The comre-
tition between the Cont'n ,nt9l and the
municipal plant ceased in 1901. when a
common price was agreed on. The Conti-
mental has still a monoDoly in the centre
| Of the city. paying an annual rent or sub
sidy Of S12S. 900 TO the municipa lily, besides
possessing long term fra in the
uburb
Notwithstanding the rent and the similar
! conditions under which II works IN other
Continental and German towns. It Is able to
pay q dividend of = per cent. on q capital
of SIS ,OO0, 600. The lowest wage l. pays
it's unskilled %worknten is o a dollar a
day, and It's skilled workmen S1.H5. It Is
contemplating the introduction OF an eight
or nine hour day.
Nothing serious can be alleged against the
municipal system OF gas supply, for though
IL has an apparently cumbrous stan. includ-
ing four managers, two OF whom are iurists
and two engineers, with a multitude OF
technical experts, this is due to the fact
that il manufactures and builds all its
accessories. reservoirs. plant and piping.
In the case OF the Continental these ao-
cessories are put into the hands OF other
private companies, n money and work
are thus circulated more freely among the
community.
The street car system Of Berlin is private,
with the exception of two lines, to Trepow
and TO Pankow, in which the municipality
owns about half the shares. The company
running these municipal lines, Siemens d
Halske, binds itself to make good any failure
to pay dividends. A noteworthy feature
in it's administration Is that II is managed
by a council Of five, including two member
OF the municipality, two member OF the
Siemens a Halske.
The line Is thus practically municipal
and suffers from being 30 in that its plant
has been allowed to become old fashioned
up to date requirements. The Berlin mu-
nicipality is about TO start four electric
lines In competition with the main system
OF Berlin-the privately owned and man
aged street car company.
This company leaves little to be desired,
save possibly in the matter Of speed, but
here II is limited by the Prussian police
regulations, which up to last year did not
allow the cars to travel at, more than ten
kilometres (say six miles) an hour, though
this has since been slightly increased and
with an immediate growth in the number
Of passengers as a consequence.
The company has a capital OF $40 900 900
and for the last four years has paid a divi-
dend Of between 7 and 8 per cent. In 1905
it carried $50. 600 900 passengers, or II 900 900
more than in the year previous. The in.
come in the same yea was 81, 500, 900, OF
which 81, 800, 900 was net profit. The cost
OF electricity was about 81 900 900 over
about 500 metres OF rail. About $500 per-
sons are, employed. Cars number 2.4s3.
The company pays an annual subsidy
to the municipalities, namely to Berlin,
8 per cent. Of the gross income amounting
to $3.50 800 in 1o05), and a share OF the net
profit (Sol, 500 in 19o5). To Charlottenburg
and Sch6neberg Suburban municipalities)
the company pays a rent Of 81 for each
metre Of double track. The company
also bears the expense Of paving, asphalt
ing, maintenance and cleansing Of streets.
On the expiry Of the agreement in 1920
the system and appurtenanoes pass into
the possession OF the municipalities. |
In consequence OF more practical organiza-
ton and more intelligent direction the pri-
vate system lie in a position to do the work
IN q ota ~
the public han the municipal. 1t is SUI !
perior to municipal working in respect to
rapidity Of decision and energy, because
it does not require so complicated an estab-
lishment nor need entertain the many con-
s~iderations with regard to other municipal
interests which hamper municipalities.
The public is better served, because the
Improvement OF the system and conse-
quently the increase OF the traffic are the
sole aim OF the private company. The
cost Of administration is cheaper in the case
Of a company and the fares therefore
The dividend in 1908. was 8 per cent:
loA, ~ per cent; 1905. ~ per cent. The
indemnity to shareholders on the handing
over Of the system consists in the creation
OF an amortization fund by annual reserves !
from the profits, sufficient to indemnify the
s~hareho!dars on the expiry Of the municipal
contracts. The amortization u amounted
in 1905 to t4,375, 900.
The Berlin Electrical Works Company,
with a capital Of about $40 900 900 Increased
recently bv SO, 900 y0o0), has a monopoly
from the city, though 30 far limited that an
opposition company may be at any day
started IL 1he municipality consents. For
this franchise the company pays a certain
percentage of its profits, amounting in
1905 to 1925 900, which went into the munici-
pal treasury, without the city having
either risk or trouble.
The company has been at work more than
ten years without the municipality having
shown any desire to take IL over. The
present contract runs till 1914, when II
will most probably be renewed.
Director Datterer is very emphatic as
TO the advantages OF private company
working. According to him a municipality
has not the freedom or facility OF working
that a company has. There are competing
claims on its funds and a really pressing
may have to be postponed a year
or two or three in favor of some equally
or still hore pressing claim. 1t cannot
venture, as a company must, TO sink large
sums in plant and machinery which some
improvement or invention may suddenly
render obsolete.
Its decisions will be passed too slowly
too hastily, and persons must have u
voice in them who may be unqualified by
experience or technical knowledge.
He sees no objection TO the simultaneous
working OF more than one company In a
town, provided, Of course, that proper
protective measures are adopted.
In Vienna there are five competing CON-
panies. Some large towns in Germany
their own electrical plants, Frankfort
and Breslau among the number. These are
not unsuccessful because they happen to