The Birmingham age-herald., 1916-05-29
GLASGOW A MODEL

ship which have been heraded as great trumphs for the plan Glasgow, for example has been held up to the world the model in public ownership and op- erat1on ot street railroads, and emphasis is placed upon the low fares When however, 1t is understood that there the system is used and the low fare is for the short ride, the benefits claimed lose some of their lustre For distances greater than 58 miles Glasgow's fares are higher than our 5-cent fares Glasgow has mile of track for every 5154 inhab- itants, while Philadelphia has one mile for every 23oO. Cleveland is often cited as an instance of low rate municipal electric light service and vet the low rates are at the expense of the taxpayers who must make up the money to pay interest sinking fund and depreciation. Columbus, Ohio, city of 250000 has municipal electric light plant valued by mrl- nicipal authorities at approximately $6000O0, while the city has $900000 of bonds outstanding against the plant. Recently a taxpayer of Columbus sought to enon the sale of electric current for com mercal purposes by the municipal lighting plant claiming that 1t being sold for less than cost but the court held that the sale of current could not be enjoned on the ground that the city was losing money.
 In the report of the municipal street railroads of San Francisco for 1914 there is an item of $122642 for interest on funded debt There are however bonds outstanding for $5,475000, the proceeds of winch used for the construction of the system The annual interest these bonds amounts to $263,S75 Seattle has tried street railways and an electric light plant under municipal ownership with the result that the street railways show loss for the year ending May 31, 1915 of $1093123. This loss does not take into account interest depreciaton loss in taxes, etc., which, if taken into consideration as would be necessary with private corporation would be nearly $80000. At recent meeting of represen- taves of the Pacific Northwest Municipalities, held in Seattle, former superintendent of Seattles pub
 lie utilities declared that the city's public utilities have been operated at loss of 1856 000 in the past 10 years instead of profit of 1902, claimed. He pointed out that the mana cement of the city lighting department had neglected to show in its re- port the excessive cost of street lighting, and the taxes lost to the public treasury through exemption, which private concern would have to pay; nor were there charges for depreciation interest upon funds and investments above bonded indebtedness
 Numerous examples of so-called successful munic- pal ownership might be cited, but we have yet to find one in which the benefits claimed are not more than offset by osses which may not appear upon the surface, but the less vital In the past when municipal ownership has been adopted, it has usual y been entered into hastily without careful consid eration of the question and analysis of the facts Recently, however, since the results of some of the socaled successful municipal ownership properties have been subjected to careful scrutiny, the public has to realize that what public officials have called profit is not profit, unless it is after paying operating expenses, including such mainten- ance charges shall keep the property in high state of operating efficiency together with interest on investment, depreciation, sinking funds, etc., as well as the joss of taxes which the municipality would receive If a private corporation were operating the plant. A municipal undertaking which does not take these matters into consideration cannot truly sue ceed any more than could privately owned plant which neglected them. Their neglect ultimate failure.
 Recently the people of Dayton defeated an ordin- ance which provided for bond issue amounting to &500O00 to establish municipal electric light plant. The voters of Duluth last rejected ordinance providing for appropriation of $85500O for the erection of municipal plant to district in West Duluth. Spokane, Wash not long ago com pleted investigation, extending period of two years, to determine the feasibility of municipal
 light and power plant, which resulted in the rejec- ton of the plan.
 The Portland Oregonian, in commenting upon the Seattle municipal undertakings sad Before Port land is frightened into emulation of Seattle in too many matters requiring the expenditure of much money, it will be well to wait and see whether Seat tie is wise in mortgagng the future for the sake of unrc;lizable present.
 The New York Sun, recent editorial on the re- II port of the municipal ferries of New York city, said
 Nothing is to be gained Oy juggling figures on the N municipal ferries books to represent that experiment II with municipal operation paying one, when it is actually losing money It might we'll be admitted that the cty's ferry service is costing and will con- tinue to cost, the city whole lot of money Il Plain statement of facts may, indeed be useful in dis couraging any further authorization in field that is dangerous both Spoliticav snd financally.,
 If tile theory of municipal ownership conld be worked cut, the plan would result in benefit to the cOmmunity hutw wi l{ t4t t,.t taetit