Evening star., 1908-01-21

carried to such an extent that more than
billion dollars Of borrowed money has
been invested in public utilities by the. au-
thoritieS Of the various cities and towns.
The money has been borrowed on bonds.
which have been taken by investors in
preference to the consols Of the kingdom.
because they pay q higher rate of inter-
est. The low price Of consols is attributed
TO this cause. The taxpayers are now
beginning to feel the enormous burden of
taxation which Is necessary to pay the
interest and keep up the sinking FUNDS
upon these loans. because, as rule, the
public utilities do not produce sufficient
profit for that purpose. 1t has been dem
onstrated in almost every experiment that
a municipality cannot compete with pri-
vate corporation. There are too many
bosses; there is too much politics in
volved. A government Is compelled to
pay higher wages and employ larger
number of men, and. rule the serv-
ice is not SO satisfactory. because private
enterprise is compelled to cater to public
approval, where public administration
is not.
For these reasons it is predicted that
a reaction will soon take place: that the
taxpayers will soon become tired of meet
ing deficits. and will dispose Of their
public utilities by sale or lease on the
best terms possible.
Two Laws Working Well.
The law enacted a year ago to legalize
strikes and picketfng and boycotting in
the United Kingdom has been a success.
and 1t is said that there have been fewer
strikes and less violence and rioting dur
ing the past year than ever before. This
Is explained in curious way. 1t Is as
serted that the labor unions realizing
that they have the lawful power to use
those familiar methods of enforcing
strike, refrain from doing so. and that
on the other hand, their employers, know
ing that it is seless for them to resist
avoid collisions. 1t Is asserted that there
has been very little boycotting since the
act was passed.
hardship growing out Of the extraordinary
workmens compensation act, also
passed about year ago, which makes
an employer responsible for the death
or injury of any person, even a domestic
servant or an errand boy, or 1aundress.
directly or remotely employed by him
while in his service. Employees have
thrown the whole responsibility upon the
insurance people. who have accepted it,
and the law Is complied with by paying
stated premium annually to some COM
pany that assumes the entire risk.
The old-Age Pension Bill.
Those who are most familiar with the
situation predict that the "old-age pen
sioa law" will be passed by parliament
at the approaching session. The leaders
of both of the great political parties must
corcede it because the trade unionists
and the poorer classes generally are de-
termined to have 1t, and they can and
will defeat any man who opposes it.
Mr.. Chamberlain promised them that they
should have this law. and he cannot evade
the issue. although he Is trying to make
1t conditional upon the adoption of a
protective tarif, and says that his as
surances were based upon an agreement
that the two must go together. because
duties upon imported goods will be neces-
sary to raise the money to pay the
pensions.
Mr.. Asquith. the present minister of
finance, has pledged himself that an ex-
by that pledge, although he has never
disclosed the particular features of his
scheme. There fore both parties will be
compelled to take it up. and, as usual, will
divide on the details.
The great objection to the bill submitted
by the labor party is that it gives shil-
lings week to every person in the king
do over sixty-five years of age. whether
he needs or deserves it or not. No dis
tinctfon Is made between the rich and the
poor. the Industrious and the indolent, the
tramp and the honest Workingman. the
infirm and the vigorous, the dependent and
the non-dependent If the labor union
demands are carried out every lord and
every labOrer will be entitled to q free
gift of shillings from the public treas
ury every week. and the taxpayers will
have to bear the burden. Any man or
woman who Is entitled to the pension
may decline it. of course, but the number
who will do so will not be large enough
to make much difference In the revenues
that will have to be raised for that
purpose.
The strongest argument in favor Of the
proposed pension law is that it will re-
lieve the almshouses and the funds for
Outdoor relief" which are furnished both
by taxation and by private subscription.
During the year 1906 in England and
Wales 914, 143 paupers were supported by
charity. 1923 in Scotland and 1O2 4Ol in
Ireland. making a total OF 1.127. $50 in
the Kingdom out of a population of
100000. These paupers were supported
both in almshouses and in their own
homes by contributions from the authori-
ties and private charities, which is called
outdoor relief" 1t Is asserted that this
may be largely withdrawn as no longer
necessary II the national government pays
a pension to the aged. 1t Is asserted
that the state is held responsible for the
health and lives Of its impoverished citi-
zens by every civilized country, and 1t is
claimed that the old-age pension system
has reduced pauperism in Australia and
New Zealand, the only places where it
has ever been tried.
Experience in New Zealand.
New Zealand has gone farther than any
other community in state socialism. There
wages are fixed by law: the eight-hour
law is enforced in all trades and occu-
pations; arbitration is compulsory; no one
is allowed to hold more than a certain
amount of land; the graduated tax, which
increases very rapidly with the acreage
held by q single owner, prevents 1t. I'm
improved land is taxed just as high as
that which yields revenue: the income
tax Is also graduated In such way as
to make it inexpedient for people to ac-
cumulate large fortunes. and the death
taxes are SO high that the heirs to large
estates are compelled to share their lega-
cies with the public. There is not mil
lionaire in the country; there has not
been labor strike for twelve years: there
cripples, imbeciles and insane. and about
1900 orphaned children are wholly main
tanned by the government in industrial
schools or are boarded out with farmers.
The old-age pension In New Zealand Is
500 a year, and Is paid to every person
over sixty-five years of age whose yearly
income is less than $500. The total
amount paid for old-age pensions In 1905
was s995. .5O5.
When they have provided for the sup
port OF their grandfathers and grand
mothers by the state. the socialists Of
England will next attempt to secure the
public maintenance of their children also.
The free maintenance Of school chill
dren act'' Is becoming very popular
measure, but shall have to discuss that
and several other similar socialistic
propositions in another letter.