Hopkinsville Kentuckian. [volume] (Hopkinsville, Ky.) 1889-1918, 1909-02-25
BRITISH TRAMWAYS,
They Are Really Losing, Not
Making, Money.

In his pamphlet supplementary to
the report of the committee of the
National Civic federation on municipal
ownership, Mr.. ]. w Sullivan gives
many facts of Importance which were
either not admitted to that report be-
cause Of the objection of NJ o. mem
bers Of the committee or have come to
light since that report was compiled.
Among these is an account brought
nearly to date showing how the
claimed profits Of the municipal tram
ways of London have been transform
cd by proper bookkeeping into heavy
losses:
London, which when our commits
sion visited 1t two years ago had Of
fcially municipal ownership in full
swing, has undergone a popular re-
vulsiOn against 1t. In the twenty
eight boroughs hardly enough munic-
ipal ownership councillors remain to
maintain a discussion. In the London
county council also the Socialist-Pro-
gresslve majority has disappeared, and
the opposition is carefully looking into
the true financial condition Of the mu-
nicipal ventures so hopefully launched
in the heyday of optimistic municipal
ism
IF there was any one scheme which
seemed to it's supporters certain Of
great profits it was that Of the London
I county council tramways. It's outcome
to the present time may be taken as
a criterion Of the very best that ram
pant municipalization in London has
given to the world. And what actu-
ally is the result?
"At a meeting of our committee of
twenty-One at ST. Ermin's hotel, July
8, 1906, TO hear leading representatives
of the municipal ownership movement
in Great Britain, Mr.. T.. McKinnon
Wood said Of the county councils
tramways: The total capital is f4,S1S,-
600. This includes the purchase mon
ey. The sinking fund is about $780,
O0O OF the f4S1s,0OO capital we have
paid off 1907, 900, and of that 1907, 900
about E45O,OO0 is sinking fund. We
have also put a sum of E290,O00 to re-
lief Of rates
"But, alas, on March %, 1908, a spe-
cial report on the tramways, made by
the president of the Institute Of Char
tered Accountants and others, was
laid before the county council. In brief
1t showed that the E293,592 that had
been applied 1S971904 in relief of
rates ought to have been applied to
making up loss exceeding E1,0O0,000
overlooked in the councils methods of
bookkeeping on the displacement Of
the horse traction system Besides, on
improvements undertaken or proposed
In connection with tramway schemes,
substantial, but as yet unascertain-
ed, proportion of f3S7 ,43S' should have
been charged to tramways capital ac-
count, whereas it was set down to the
general Improvement account and on
improvements for the purpose of gen
eral traffic q considerable, but as yet
unascertained, proportion Of f864,121
should also have been charged to tram
ways capital account
'That is, up to March 81, 1907 the
London county council tramways, in
stead of earning profts of 81 100000,
were anywhere from S4,0U00O0 to &c.
10000 behind hand on the accounts
mentioned, with nearly another million
dollars arrearages on renewals and
central Office charges.
Here Is one of the fatal flaws in
municipal ownership: By an erroneous
ALLEGATION of costs the general munich
pal treasury may for time carry the
burden of low fares, blunders and lib
crafty In general-tO come to disas-
trous end on a day of judgment liter
ally as sure to arrive as taxation. The
fatal flaw Of municipalism is in the
finances-that is, deficits must be
made up by taxes"
One of the chief appeals of M. o.
agitators to labor union men Is that
cities are better employers than pri-
yate companies. Glasgow especially
has been held up as a model in this
particular. Mr.. Sullivan, however,
presents figures which go to prove
that the tramway department Of that
city has great difficulty in getting
along with its men;
"In the seven electricity years Of the
tramways, 1923, the total number Of
men leaving the traffic service alone
was 1912. OF these, 1928 were dis
missed and 2,3s4 resigned. In the other
branches of the service-the perma-
nent way force and the car works
force--the total that left through dis
mlssal or resignation In the seven
years was 1894. The grand total Of
vacancies, including the 1912 traffic
force, is therefore 9,440.
1.-THE total number OF men employed
In all the tramway branches, by years,
for the seven years lending May 81
bach year., was: 1902, 1924; 1908,
B,3OG; 1904, 1851; 1905, 4,4sO; 1906,
300; 1907 4,o60 1908, 1880 The
leaching Of these various sets of amaz-
Ing figures is that in the land where
! frequently a Job descends through gen