The Bridgeport evening farmer., 1909-07-27
PEOPLES FORUM
TAXES vS. DIVIDENDS
Editor of The Farmer: sir:-

Editor Of The Farmer: SIT
 The July number of the Success Magazine contained an article that should be of vital interest to every tax-payer-Cities that pay dividends by Franklin C1arkin.
 According to the census it cost. in 1905, to run the one hundred and fifty four cities of the United States which have over thirty thousand population, $570, 900 900. Receipts from all sources, not Including SS1, ,251. 900 new borrow ings, amounted to s494, ,O0O. 900. That is, the corporate payments exceeded the official revenues by seventy-six million dollars.
 "There Is not any doubt whatever that the reverse should be true-that that S76, 900 GOO deficit ought honestly to have been excess revenues. Cut off the waste, the extravagance. and then see to the collection of all proper reve- nues, and these one hundred and fifty four citieS-who can compute to what incredible point their cost of govern ment would be reduced?
 '1n Germany, forty-five cities own and conduct their gas works. electric power plant, abattoirs. bath-houses, etc, and ten of them their street rail- ways. Gas works alone produce an annual net surplus of $7,500,0 900 and electric plants. $2,S00000.
 Some of the greater cities still let private water companies furnish them an e1ement which is sister to the air. This, notwithstanding that net profits from municipal waterworks in the others. every cost and investment and depreciation reckoned out, was in 1905. S15, ,923, ,631. Los Angeles. in five years of waterworks ownership, reduced the cost of water to one-third of what San Francisco pays, and out of profits ex- pended four million dollars for the benefit of her people,
 Three or four IowanS settled on a sandy beach to experiment with city without taxes. As others joined them, the settlement formed a legal corpora tion-quite as the ancient Romans in Britain did-for the purpose of regu- lating domestic policy and administer ing powers of government; and as a means of checking up government by public opinion. the initiative and refer endum was instituted.
 After fourteen years F'airhope is thriving happily. Land is owned by the corporation. which is the commun- ity, and is leased to individuals for ninety-nine years. When one has paid into the communal treasury the annual ground rent of, say, $25 for his lease hold, $50 down for installing tele- phone Gf he wants one)-that is all the government exactS.
 And in return for it there are three free schools; a water system without rates; g, public dock; library that is free without Carnegie foundation; a telephone system with absolutely no charges within the county
 All these were established out of the surplus from ground rent, after paying the State and county taxes, and the cost of administration and improve ments.
 You see, according to this, there would be really nothing supernatural or miraculous about dividend-paying citiesI Only an extreme sort of practi- ca1ity.
 The main desideratum would seem to be that you must catch your city young, and thereafter protect it from private exploitation.
 Yet give attention to this extract from an article by R. OckeI in the Westminster Review for July, 1907:
 No fewer than fifteen hundred towns and villages in Germany still own and have owned. right down from the Mid dle Ages, so much common land that their inhabitants pay neither rates nor taxes. Five hundred of these town ships and villages derive so great a rental from their lands that they are able, in addition. to pay every citizen, on New Years Day. bonus of from 95 to e2O CPS to s100) as his share of the surplus revenue.
 There is your annual dividend from city to citizen! Is it news to you? Then it is news a long time coming. for it is dated-"Middle Ages"
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