The Republican. [volume] (Oakland, Md.) 1877-current, 1908-01-16
GERMAN N, 0, THEORY
Public Utilities Operated by Cities
Must Pay Their Way.

Have to Pay Taxes-"undertakin
Limited to Localities Where the Pat
ronage viii Be Large.
In theory public utilities operated 10y
German cities must pa! 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 are not
required TO make good the taxes for
mery paid by the companies they su-
perseded. But the effort to put these
services on Il 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 at once.
Professor Hugo H. Meyer i'm recent
articles in the Electrical Railway Re
view and the Journal of Political Econ
omy describes tie results OF this re
strictiye policy on street railways anG
electric lighting, ana the following
facts are taken from his articles:
The cities that went into the street
railway business adopted uuiforiu
fare of - cents, but with two cxccp-
tons abandoned this after short trials.
The experience Of two typical German
cities will prove of interest a shown.
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 II
miles and 3.75 cents for the maximum
distance, 60 miles. After operating
them awhile the city authorities raised
the fare materially while extending
slightly the minimum stage The pres
ent charges are % cents for 10 miles.
3.79 cents for $40 miles, cents for
5.63 miles and Cos cents for distances
over : e. miles
Tho rftv of Bu.saldnrf ,.h;ch ~.
quircd its Street railways in 1900, at
tomntod to onor,tp tbcm ot tho uni.
form fare If . : rents which had hnnp
cbor,,o1 I,,. tho stroo, r,fI,,-,,. ..,,,,
pany, but soon found that it was LOSING
money and ,imiteJ tba . : conf fare Ia
. al miIes charafno = - ccnts for dis
tances betwncn that and + - nd,es
After INCREASING thn .roo, n,iIcara t1,n
CITY ocoin raised the faro ronsid ,r3hly
rn6rcino tbn minimum STAGE IN.
nricn. now. charcoal arc y :, coptS for
5G miles . :, cnnts for = 10 miles ;
cents for + miles q ~ ccnts for 1 -
miles ~ cents for Gas miles S75
con+s for 10 miles and 10 cnnts for
-o4 miles
II sbou1d ho horne in mind that these
nricos AFRO rneIIv very much HIGHER
than corrosnondinc rates would be in
tbi. country bocouse v-,ons in Cor
many, oro much 1ovar than in thn limit.
Oh states Tho ovorhitanco of these
cborres * shown Inv tbe fact that in
NtinnooncIis = civ of tho Same size
nc Drsso1dorf - nasscnonr can ride
+birtaon miles for : cents while in
RufroIo which has 4 nopuIation about
canal to that Of Cologne the passcn.
cor cots rourtcon miles for q nickel
Tho desire Of thc cities 70 make all
rossihro nrofts ont Of franchises and
70 limit them to short terms has re.
su1tod in GREATLY DELAYING tho dovnlon-
mont Of nuhIic electric lighting al
tboucb tha naonln vero onxious to
hove tho now licbts installed This IS
shown nv tbo fact that in 1S94-95
tbern wnro in oner,tion in factories
stores orc moro thon A7-G privote
e,octric ught nIon+s aIthouoh two
raars Iater thara were only LITTLE
more than 200 central electric lighting
stations in tho whole of Germany As
tho nrIvate or isolated nlant os if is
coI,od IN tbis oorntrv IL for lose oco.