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Photographic
Sciences
Corporation
23 WEST MAIN STREET
WEBSTER, NY. 14580
(716) 872-4503
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TORONTO UNIVERSITY STUDIES
IX
OX<I7IOJLX. SOISITOS
W. J. ASHLEY, Editor.
VM
FIRST SERIES. No. II.
MUNICIPAL MONOPOLIES
AND THEIR MANAGEMENT
SXZVO£<^ZR, B.
UtuverMp CMUgt, Tonmto,
-'^ 1 '
®
TOROXTO:
PRIHTKD BT WARWICK A SONS, 68 AND 70 FRONT STRICT W18T.
1891.
.1
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TOItoNTl) rNIVKRSlTV STlhlKs
IN
IP O T. I T I c ^ r. S O I E nsT C E
\V. .1. \S!| l.KV. I'M. Int.
FIRST S F. H I FS. N m. I I,
/
MLINICIPA]
ES
AND TIIRIK MANAdHMliNT
BY
A.. H. 8 I isr C 31, A. I R, e. A..
/'M-
^^.
TO no N To :
■PRINTKI) l)V W.VHVVKJK & SONS, i\H & VO FKONT STREET WEST.
IH!)1.
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''"''"" ■■"■'" "'"■■- ' '■' ■■'■•■'"■•■ ' n^;;^n..:;..,:~^z,,.,, ,„^: ;;-~-^
TAIU.!' or CONTI-XTS.
\'\>.y
ntiniii.
Pn-fai-
Ml NH ii'.M, MoMiri'MK.-- vMi riii.iit M\nai.imi;n.
("liqitiM' I, -M iiniriiMil Muiiniiiil n .■
Si-c'tinii I.- On CV'itdiii l{t'(|iiisiti/s uf Mml. in <'iiy L tf
1. WiiteiwiiikM
'J. StlM'l -CiilS
;>. LiyhhiiLC
1 1 . 'I'ii«'ir l\('liil i.'ii ti> ^ Iiivorniiiunt
111.- The MoniiiiuiisLic CliiinictiM- (if tiiu Sovoi-iil [iKhisMic
1. Siivot. UiiliViiys
li. Waturwoi k«
;i. (iiis Supply
4. KK'ciiic I<i'ilitii'-'
Ch:M>^»'I' "• - (^iin'piiri.tuii <ij' I'lililir iiinl I'lirnli Mmntijiuiii iil uf M " iiiii/'n' .\r'i"7'"/" v
S.'(; i'> I I S iiiio Almtnifi. Kinamial .iml I'lcniiiiiiic Cnnhiili-nitii'ii-"
II I!. I.itivo KiiiLii'iu'V i.f i'uMii' .-ni'l i'liv.itf S,r\:iii*-
III. Si)li:'> ( 'iiiuiialMtix (• St:>l'.stii-s
!, WatiTWiir k.s
'J. < i,l'^ Sn|.|ily
.'!. Kiiiiiii' Liujlitit)!.'
4. 8tm-t ciis ...•
Pi'. SlrlUC 1 LlifbHinll*
7
7
m
I
,H
10
II
15
1(1
17
18
•21 >
•Jl
24
27
•27
29
.■14
36
30
l{ilili(ii;raiii>v
37
riM-JWci:.
Till' iluf nliiiiiiii Iictwi'tii civic ( iiivtiiuiiriit iiinl (•••ifiiiii iiiihi-^lrii'. wliicli,
wliil*' I't' liisl cniisctiiiciicc tu ilif itilialiitiiiits .if cilifs, aii- yt iirci-s-^iirily moiin|»-
• )li>i(lr ill Hicir I'lmr.'U'ttr. i-. .1 i|iii'stii)ii i.l iii'Ljt'iit im|Hir<iiH"' . Tlie jin'«*('iit position
lit" (ifl.iirs ill till- cliicf cil V i>r(»iit.rio lla^ *.u:,'i,'t'.'»t<'(l t > tlic IMilur the <lt'Hiniliility
of il(\ iititi^ |i> tlif ciinsiiliTatiiiii <ii' t iii-^ \<>\i\(' tin- m coiiil u|' tin- Toruiito (Jiiivfrsity
Stii'lit'"' ill I'lilitirHl Sciciicf.
Tin' ciiiThT )iiirtiiiM nf .Mr. Sim-Iiiir's Kssay i> ncnijiif 1 wiili n stntiinciit of
tin- ci.nditions nfrtctiii^' tin- iiwli'sti ics in i|iii'sti(>ii, nixi :i ilisfiissioii nltln- v.-iriotis
cnnsiiicrutifiiis wliicli liavr tu Ix- ial<i'ii iiiln ihtoiihI in (Ik- flftcriiiinitii'ii i.f iniini-
cijuvl jiolicy. Ilfii'in in' i-. tu n !ar;4:f extent, tni\(r>in^f yroiiml uIi-chIv <'X)iiiiiiicii
liV t tliris ; anil sncli list I'lilncss is tin- K.vsav will iiesscs*; will lie dfrivcil iViiii il><
('(ini|inrati\ 1' (.Miii|(li'tt'iH's^ unil its >.\ v{, nuitic nt'iaii'^i nirn!. Tlie lattT ]iart i>t' (In
K^s»i\ , I'DWfVi r i-, in my "|iiniiiii, "I' liiu;li<-r vmIih' ; fur il i^, ns far a^ I l^iiow,
till' lii>-l ini;i;iiM iai alti'iii|i! lliat lias \t\ Lcii inaMr Id n»iii|>ar<' tin- liiiaiiiiai
|)ii>.ii inii iif |)i|lilic \\ ith tlia! lit" ] 1 i\atr niiiln takiiiLTs. This <'i)tii]'ai is'>n ou'^dit to
ilo >'iiiii'\vliai In iiii.ili ralf t lir ai loiir d ( \tr. mists on fi: Iicr side.
Into (lie ilrtail ol' Mr. Sinclair's arL,''niiii'nt. it is not lic^ii-alilr to ciMi r in tlii-
note. lint llin-r ny< ( \vm aspt'cts of tin- .snliji-ct| wlii'ti hr lia> not toiiclh'd, ami
Upon which some oliscrvalioiis may imt he out of place.
.An ciilai\'t'nii'nt of iiiiiiiii-i|tal action in relation to nioiiopnlistic iii'ln.-strit's
ha> lii'cii vi ry widely siipjiorted, es|icfiall\ in the fnited Slater, in the lielief
which has heeii freely expressed, that it would If a step in the direition
of Socialism, or ' .Na'ioiialism." Siu-h advocaix cin -caiTely he ie;;Midcd as
altoj.r,.th(T wi^c. Ill the iii-i place, it implies that we cm foim ihiteamncii ihmi-c
dc^finite cunce|.tioh of th" hrni ijanization of s «eiety t.haii i-^ ji'Tiuit tc I l>y an
intcllii^cnt hciiel in si.cial e\nlntion. In tht; --econd piace, it ai.ai^c.s the opp tui-
tion i/f men who would ot lierw isc j.r icjidy to a-'-i-f mi a piMctical r'-form : and
allo\v-^ tho>-c who are stru:4<4liii:,' to retain in lleir own hairU tin' advan'a^c.s i>f
nwMiopoIy to shelter tliein-'el\-es hi'hind the princijjh of industrial licedoiii-
It wiaiM lie at I'lice nioii scieiiMti*- and more expedicn; if tin- advoeato of nniiii-
cipal action wnuld allow thai a> the world is now coii-tilutccl. iiidivi liial enier
j)ri>e has olivioiis advantaLjes. and then l;<) on to point out liiat in the
case (if eeriain cily indnstrie.-< these advantai^t's cannot he ohtaincd, since, from
the nature of the case, comjtelition is there inipossihie. Wliat the conunnn seiisr
citizen lias to nndci.^tand is this, that to try to niaintaiji individual enter-
prise in a ticiii wheie it cannot, he allowed with adxanta^c, is to di'-cr dit
individual enterprise even in fields where it is desirahle.
.-()
H"^ nM„.r usp..,.t ..}• tl... sul.H.(.t to wl.icl. Mr. Sin.-l.-ur has not H.|v..,t..l, 's its
;'"'*"•" '"""• '■^'"""•-..pl.,v...l. TI... .I,.,i,.. t ,.,„•.. i,u,.n.v...l ...n.liti.,„sfur
l"l-»r ,s ,1,.. vUri UMMiv.. r„r t!M> K„.ll.l, M-itali..,, f,,,- nnnm-ipali/aMnn for
M.sUuK-.ntlM. n.soof tli.- hun-luM -locks an-l ..MM.uav. lu A ri,. , this n.n-
sph.iaM.a, IS ...l.h.M, lM,ar.l ol" ; ai.-l it is th- flMancial a-lvaniavM- to th^. city that
.s pi.t in thr Con.irroMn.I. I'.nt it i. ..vi.l..nt that this is a f,„...sti,.n whirl, will
t-r,. ,t,s..ir uir.n puhhV attention, , v.n if it i. not raise.! iv ).l.ilM,.tl.ropv W'h. ,v
lar^f l.o,l,..s of cnn>pnr«tiv,.ly m.skillo,| iahoiuvr. an- ..n.p!ovv,|, th.-.v' is always
'■ priahlm-.Tof l.ilH.nr .Hsputos ; mh is snfllri..nllv .•vi,|,,.ncv,| !.v t h.. stn-t .."ir
strikes in N.w York, V:.nna. Ton.nto, an,l !n.| 1 i, .f ^.vat rities. nut. lal.our
.h-pul,..s involv.n- a c-ssation in th. supply .,r wa...r or .as or >,,,.,! ...r STvice
'""••' nMn>...lu.l..|y air.ct puhlir safety .■.n,l co,iv..uh.neo than auv o.!,-,- similar
•litlu.nllM.s.Mn.l c-all nin,v | ||v i',,, .^ ,,.„„.,|,, ,, j, ,ii(,i,,,|, ,,, j,,,;,.,,. ,j,„t j,,^,
IHvsrnt anarchy .-an h.n^ continu.'. in th.- interest of th-, ,:.s,.rs of tl,.. s.-rvice
if not in that of th.- lal.o,u,.rs, son,,, nirtl..,.! of pul.lio n-uiation nnist .oonrr or
h.t-r, I... .u-Hnv.I at. |!ul w!...tl,-r .li.v.t n.nnicipal n.ana-.-nn.nt w,a,h| l„. an
<ii.in..Iiat.- an.l satislactory way out of ih,. Wiilicnlty n.av w-H I... lonhtcl. The
solution of thr prohl,.,,, niuM .!,.p,.,M on the cin-.nn.stan.-." . .f radi plac... in the
present (.-omlition of municipal politics in most American cities, to a-M -rcatly to
H- nnml.-r of voters in the pay of the corporati-.n wonhl certainly he (lan-.eron,s.
\\'
.-()
MUNICIPAL MDNHPOLIES AND THEIR MANAGEMENT
CIIAI'TIIU I. MI'Mfll'AI, MuNol'OlJKS
S-r/liui I. On Ciitiiin hi'iiuinil'H lit Miitiri, I'iljl /.!'•.
TliiH is .111 ifj*' of yrrut cities. I'lny Ii.im' .^wipt over ili'ir olil h miiil uii'H : ami
adjaociit towns aiid iv.n rmiiiiifs liavf Imcii .t'lsnilii'il. In llu' rniii' i Stuti's ;i liiiiidrt <l
yi'KiK itifo. till re wi ic nniy liJcitii's niim'fi in;,' iiiDrc tliiii ."i.UO ) mliiitiit mis ; not oui'
limi iiioii! thuii lO.tKK) ; and of '!!<• tut il popiiliuinM of tlw country only ."V'i |'"'i* ''»»i»t.
lurd ill cificH (if inoio than N.O(i(». In iN8(t tlnrc win- I'M liti.s of nion- liiiin TlOOO.
1m l^'.lil till re iii(! 7 I "f iii'irf Ml 111 lU.iMMJ; 'JN dt niort' thun iUi.OKU : and iiim- tinit'H
lis l)iii,'t' a pi're«!iUaj,'n (21*. 1 I ) o! ili.- Uit.il i'0|iulatiun live in citicH ol more thiiu S.OOO in-
ImiiitiuitM,
Thi"* (cndf'tioy to a;;;,'!'">iatiMn liaM nut, been conliiii'd t,o ni'W <Miiiilrii'H.* Tin'
iiipitiii.s ' f (Iri'.tt lliituin, !''r:UH.''', (iiTiiiiiiv and Anstnti li;iv<' fiuih int;r«'as«'d in pi|iulali')ii
liM'fold siiifc tS(U), .ind tlii-ir cxii'iiplr! Iiii.s liccn followrd Ky tin' |irovIiii'i:il <iiii'H. hi
iMiifiand and Walrn, duriiiir tin- ton y-.ivs is71 "^1, the population of city dislricta
iiK^rciiHid l!'.<i:i per ci'nt , whiU* tlmt ol country tlintrii'tM incrciitt'd only ".."I'i p<'i oniit.
With thi.s ripid jt(i.r>vth nf cities, wliicli I'oniis so strikin;? a cliaract<Ti>tii i*)f the
|)n'8ciit century, in w and iiiit'orescen diHicullieH liiive Hpniiii into cxistMiice. Old forms
(d' ci\ ic :;o\eniiiwnl, on lieiiiLj Milijected to tin- severer sirain, ii.ive not stood it widl.
They seem to have lifc-.i out-efown, as tiio circle of tliiir inllueiice widened ; and, in the
f'ice of new conditions, all the j^'i'iit niunicipnliti'S of the world are strixinj; to solve th««
trenienduii.s prnMeins they (iiid conlVontiii,' ilii'iii.
of the necessities of inoderii city life, that i,'ive ri-;e to tin
H(i
^^'ll:lt illr S .in<
prolilenis
A<i'ciiipiiiiyin;; tiie incrca.-ini^ importance of citii's, partially the cause, iiut iniioh
more liir;,'cly the result of that (hnelopineiit, i.s the atU^npt to protect their inliahitaiits
from the manifest evils sliewn in .^oiiie of tiie existing cities of the Uld World to lie tho
result of iiowdiuga laiu'c jiopulation into a small area. The latenX discoveries of physiiMl
science liisve hern called into .service ; and it has heen I'ownd that r/<iiii/iii>'.is in a necessary
precaution against the epidemics that attend the tilth and .'■i|Ualor of Eastern plaijue-
iwept cities. Of the eood tint can he at:complislied in this direction an excellent ex-
ample is presented in the c-ise of Liverpool, which "comprises an area of 5,210 acres,
witli an estimated population of .'•'JD,7."m"^, or 1 Ifi peo|ile pei- acre, heini; the most <lenseiy
populated city in (jrcat Ihitain. The total uumlicr of ileatlis duriiii,' the year ISSi)
was 12,159, e.jual to 20.3 per 1,000— a r.'du.-tion of G.9 per 1,000 since ISSiJ. The
total numher is l,SI71ess than in lSS7,Mnd lV"*0 !i"1ow the avera^'c of'the last ten years
-notwitlistandin:,' the increase in population — which is attrihuted to the j^ood smilary
work of the health comniittee."t
\\'.\i'Ki{WOi{iis. — For cleanlinoss an ahundant fiupplv of water is ahsolutelv necessary.
Jt would, no douht, he possible in nio.-t cities to ohtain sullicienl water for tlis pur-
pose from wells ; iiut health deinaiids that the water used should he of a purer ([uality
* A compariRoii lutwi'in mi uM mid a runv country in this reHpect Ih intercHtiiiK-
In <ii'riii!Uiv ■ 2.S per ci!iit. of tin- 'icmii!!' live in citit-.n of iiiurt' tliaii .'i.OOO iiihaliitaiits.
In th-fiiitMl SutfH'Jti " " " •• l,0()0
Rutin " " IS " " 100 fitiea of more than 20,fXM)
While ill ticriiiaiiy • HI " " 1K5 " 20,o.K)
.So tliat ill tlic I'liitcd Statt's (as compared with (jprtnany), the lar^fp citicH have kfiown at the expense
uf the Hiiiall. — Miivo Siiiitli, .s^(/</.<^c.< (iinl Houtiniiiieii, \>. ;U. {I'ltb. Aimr. Ecm. .l.wdC, Vol. III.)
+ Mr. Sliernian in L'niltd Utatix Cunsular Jii ii„rlii, June. 1S90.
8
[52
tliJin (.'iiii \)i: olitaiiu'd fioni tlio soil of citins, iiiiprcgnatfd as it must bn with tli«
priiis of discasi'. lu oi(<('r to lio jmn', tin; water sup])ly must llicicfori' lie l>rought
from l)(>yoml the reach of this coiitiimiiiatinf,' influfiicf. It must he lirou<;ht from
its source either in mains or l)y aiiucduet, and distrilaitod ihrouyliout the city liy a
Hyst«'m ot pipes. WliateviT metliod lie aih)pted, it is evidently a matter involvin;,' a very
f,M'eat onthiy of capital. Tlds cost is j^'reatly enlianced hy the fact tliat in order ii3
supply lli^h huildiiigs, and to </\\r' "a head " of water in case of lire, it is dosirtdde to
keep a much i^reater pressure nt" water in tlie mains thjin would othei-wise l»e necessary.
A far lieltcr luid more <'ostly piping' is es,s(Mitial in order to staml the strain of this |>re->siire ;
and the loss of water hy l'.'.(kaf.;es hecomeH important, since the amount n[' n lluid passing
thronti;h an oriCn e in a j,dven time varies directly witli tlie force hejiind it. A ,-;ystcm of
water-works is thus a. 7ii:crssi/,i/ for a city.
'J"he jijrowth in the numher of water-works in the I'nited States and in Canada is
ilhistr.ited hy the fcllowing tahle * .shewin;,' the nnmlier of works operating,' in the years
nn'utioncd : —
rnited State
Oaiiiula
I sno.
(J'.t
G
•20
1S>'.').
1.037
ISSII
l,'J«iO
87
r_'0 companies operating; witli !i
lu tireat ni'ilain and Ireland in ll^80, there w
capital of ,i;7,0O''.O0O, (e.xclusixc of S in J.ondon witii a capital of ,f 1 L'/OOO/'CH), inid n
num'ier of nmnicijial plants in (ilas^ow, r.i)-ininL,diaia, Manchester, etc.r
Stkki:t ('aiis.— Another nec< ssity arisiiiL( from modern conditions of city lii" is somo
mode of (du'ap and speedy transportation from jdace to ])lacc within the city limits.
Not ouJy is this esseiitiiil as a mode of conniiunication hetween tin' business sections
of a <iiv, hut, hy cnahlini,' artizans to live farther from their work, it also acts as v safety
\iil\e to relieve tlie conifested disti-icts of population i'rom the strain thai would other-
wise come upon them.
'I'his strain is far too j^reat already, hut uiuler existinir conditions it must t.'row
i;r(alir. In the new (,'ounty ol LoiKioii tliere are 11«^ sipi.ire miles, which have
\in (ircna/f of .■!l',.')00 inhahi'auis to the; stpuire mile ! in tiie mari' densely Jiopulated
(cuiral sections, i;.;/., Whiti chapel, tlie nuiuuer will of course he vastly u^n-ater. Ai»;ir);
iroin the (iuty of the (jomnniii'ty to relieve the misery mut prevent the e\ ils resulting
from such scLrree^iion^ it;,^ mere prese/ire is a very real iiKMuice to the safety of tlie cit.y.
All great ciii<'.s jiave somewhat similar districts: I'aris, i'.eriin, (jlas<.fow, L5irmin,i;ham,
New York, (;hica.no, have them ; and it they an not (juite as wretched or nearly so largo
;is those of London, it is-only hec-ause these cities have not reached i'n iinint ot numhers
the " had eudnence " she lias attained. If tlie density of such sections could i)e reduced
to one-half hy tlouhlii.g (he areti of a city, the greatest dilhcuity would he overcome:
light and fresh air (or children, and a certain degree of seclusion would then he po--
Hihle. Uut this increased area invohes living at a greater distance from the .scene of
one's daily employment. So that some mode of transportation is essential : and if it
Were only cheap enough, and speedy enough, it would meet the reiiuirements of the csise.
This niM'd, HO far as it lias heen nu't at all, is meu in all European towns, h\ elabor-
ate systems oi' omniluses, M'hich ply on the principal streets at regular inter\als. A
moderate rate is charged, usually varying according to tlie distance travelled. Tln-se
omnibu.ses are ihe direct (h'.scendunts of tlie old stage coach, and are lietter adapted to
tralhc on narrow and crowded streets, than the slaoeL railway systems which take their
place in Aiiurican cities. These I.tst are a very modi-rn institut.ion indeed, tiie tirst
street railway having been built about, IS;").'). Their development seems, however, to have
kejit pace with that of municipalities ; and there are now, as nearly as may he, ',).")7 street
railways on this continent, having S,SlS miles of track, and worth in the neighborhood
of Sl."iu,0( 10,000. 1
" Ciiuipilt'il froiii t.ibk's ill ^^r. M. X. Haider's /Icii )'/cn)i fV'iitf ricorks Manuul fur lSS'.)-UCi, (Etujiiufriiiij
iVViM (y/tfof, Xi'w York.) fSirT. H. Vnrrin; Stati hi Urlali-Jti toTrivli. (limj. (Hliun !if:ri(i<\.'\t. W'X
X Elictrical WnrUl, Nuv, l!2ii(l, IS'.IO. The writer has reduced the vahu's ^iven by tlie Nariimsconi-
lianics al)nut (Hie-tciitli.
\52
>-l
Ai>;iri:
TliftSJ- arc <livicl('(l f\s follnws : —
."»!^'.t road-:. r),71S iniits cf ti'ack, run liy /mr.'O'.s,
valiii'd at •■^r> 1,0(10,000 : cost nl' Dinning; '•.7c. jn r mile, fnr carli car''
4!' roa'l.s, H'JT iiiilis ot' track, run ''V rnUr,
\alufd at s| l.dOn.OijO -. (•(>st of niniiini: - ;"'c. per- mile " "
-\i) roads. L',(i"_'l iiiiics of track, nin l^y ilicl rii-i/i/,
valued at s I l,OUi),000 ; co.st (^.t ru'nin,' J -Jc. j.< r mile " "
■l.'i roads, ."i."i 1 miles of track, rnn liv .-.,'■ r///,
valued Jit 87, 011(1, oO'i : cosi of riiiniiiiir r).(lc. |.ei mile " '•
No tiiat '■ iiorse " ro ids do tiK.' ,■ tiian liali' the tr.illic. 'I'lii.^ is to !'<■ e.\[iected fioin tlu-
circumstance, under wliifii .streei. railwaya liavc de\ elope. 1. .\ '• horse ' road is the e.i-i.st
and I lieajicst to liuild : altlioiij^h it is said to cist .norc to " run ' than tlie nthcis. 'I'lir-
olijcctioiis to it ai'e : Ist, Its .vA/z/vc-.s' ('S|Mci.illy for sulaii'han tratlii-, « here all tlie other,"-
are j,'really its superior in thi-; respect. L'ud. Ii reiiuires a 'ar;ie stall' ot' unskilled
cniploveis. 'Afd. its stiililis must ii' in a (.enijul part, and n.-uiHv constitute a nuis.ince .
while the excreta ot' .■^0 uuiuy iidditional animals contriliutc s lar^ieiy to the uncleanline.-s
of the .^licet.s.
I''lec(ricity st.-uids second, ahhou^h ii is so new an elcMnent in moti\(' powers, i anil
lias w(ui its wiiy to popularity in iiu <liiim-si/ed to^ns. It is in a UMiisiti 'iial state, im-
provfinents liein_' coniiniially made in it : so that u ])lant tliai may lie \er\' i;ood to-day
may lie (piite ancient in a yeai". Tlie luru'-i cities rec.^i;ni.,i' t!ll^:, and. li;i\c ht en ( iiutious
in in\estinir l-ir^e .-urns in the eiiteiprise. It. is liowe\i>r li-comiiii^ mme stahle cvei y
year, laid more imporiant loails are ado|ilin..' it. Tlio lar;,'e»l ehctric r.ulway is in
Ijostun. whei'e tlie " \\'e>i I'nd System," with 2^1 luilc.■^ of rai.'k, h t> tilt miles of il elec-
trically CljUipped.
'I'liei;' are t wf) kiuds;J o!' ele,.'(ric .nlrect car: fine in which the power is e;irri''I in tlie
car, wldcli is called thi; "storaj^e hattery '' system ; and an;ith"r which ohtains its power
from a wii'c oserhiad. connected with the car l>y ;; trrdley or arm fasten«d to the car,
and ha^■inJ^ on its iijiper end a pulhy which tuns on lie- wii", thus ( Diniilctin'.,' tie- circuit.
Th(^ advocates ct' tin- twu .systems wai^e (jnthuaia.siic war upuii e.ich other. '{'hr lattei
seems so far to he mther the more suc.i-esatul ; nolwiiiisraiidimr tiie disadvantage it lahors
under, of lieing ohliyeil to striii;^ its wiri's upon poles which makes it necessary tlitit ill"
track should he by the s:ide of the roa!, and in case ot'douhle ri-.i'kf;, one on eai it i-ide of
tin; roail ; oi-el.sethat the poh s should lie, placed in the roadway in tin' spai e Instween the
tracks. In t iihc!- case tin oiiiitruction to Liatlic is coiisideiaiiio.
i>otli systeuKs have the following; disadvantau;i'H : 1st, Tliev ai^- iill'e-te I liy electrical
chatii,'! s in the atmosuh.Me. L'ud. 'I'liey .are oft"n dania^e.-l hy lii{hlniiiv'. '•>i\\. Tiie track
must be kept perfectly ch-Mr of siio-v m wi.itec, I ili I'li,- c I'.'s .ire often stripped from
the yearinii in connection witii the dynamo, h-ivini; the c ir in'l[)les.s on the street,;;' "itli,
'I'hey are unable toasceml very heavy i^r.ides. Tlieir limit in this la>t direction w.-uld seeni
to be ascertained by the following.,' examples : -Milwaukee has an electric r.iilw.iy workin;;
KUccc'ssfuIiy over a 10 per ceiit. Lfrr.de. liVim (.Mass.) has a sy^tem whose cars succeed in
climiiins,' a yrade of \'.\.'2 perc-ii'. In Taco ;ia an eUctric railway was stttrii'd : but it wtis
found unable to master a ri.se of 1 in 7, and ii, has bei n r>p'.i ed by a cable line.
* F"r conii)ari.-<im with this may he noticed tlie foUowini,' I'siiiiiute .if cn.sl of ciiii>iructii.ii "i ii tiMi iiiilf
roii'i wiili lifteeii cais, ac Kixiii liy ;i ciiiiiiiil.cc el the .-Xm. .Street liaiiway Ass laati-in in >( |ii.. l.s'.li).
Cal>Ie sy.stiin — Ciift m i-;il)le ciirslruct i.m, .>7tlO,00<J : i :ii ^. •'Sl,'>.lOO: |ii>w.i "plant, .■SlL'U.OOO : totiil. .sslU.tjOO.
Klej-trio ■Acilieiid wire system -tj(i.-t iif roailiicil, o70,iMH) : winiij,', .:!.-!u,nOii ; c-ar^, >iiO.O'iO ; power plant,
js.li»,00a; t^tal, .■slii.i.iMNj. .Storage Ij.ilterv .-v.-<t-in -(,\,st .>!' rouill.e.l, .'<7u.0Ui» : car-, .ST.'i.UOU : i>ower plants
.'s;<0,0(K); total, .sl7o,0a.). " •
t The tir.-it (-lectrical .str-rt railuMV u.'^Mii iniiiiiiiH' in C'iev el.-ni'I. < >.. in Ksst.
] .\ diinl variety, whei-.^ ih.- w.n 1- in .-i e uvl'iit IbuciIIi the tj-a.-U. li.i-^ lieeri Iriid in I!..rt'>ii aid in
|)e)i\ er. lint at sncli r"'i .is in lie ..nt .it llie i-naiit
S " Fin'ii live ii.i lULe.s t.i ilirce ye.xr-), " wan tht' reply ..r ati eleK.trical expert to a ipiesli.iii as in the iifu
of tln'1-e J,'earillJ/s.
10
[54
Electric systems have great ii(lvant(\j»os however ; —
Ut. Thi'v secure speed (from 3 to 20 miles ]ier liour 1>ein^ ol)tiiiii;ihle iit tln' will of
i]\(' t'lirnluetnr) -a irreat i-onsiclcratioii. (specially in siilnirlian flistricts.
■Jnd. In i,'a'«' of danger, ehM^tric ears can stop more (|ui(;k!y (owin;^ to tli(( dynamo
l>eini( reversilile) tlmn either horse or lahle cars.
•'ini. 'riicy are di'Mji,'' and, with the ranid inipi'oviMui'nts mid" in electrical s''iencn
All) pro'.alilj' soon ln'Oiix' <'lH'n]H'r still.
'Dii- lalilc system. tli(Mitjh (lieay) to operate, is very costly to estahlish; and is adopteri
oidy where thmc is i;reat trallic in liiri;e (Mlies, or wlierc th-'re ire stei'p inrdin<'S to sni'-
mount. Theirarsare propidh'd l>y ai\ endless chain, runninu' in a tuntel lii-neaU' (h ■ track,
and eonni'ele,! with the car liy a elntidi whieh passes from the latter tlii'oni;li a groove
into the tunnel. 'J'he eli.'iin is kf[il- in 'nation liy a central engine. Sliouid tlie eiutch
eat ell on iin ie' i|inlit\ of tie' ehaiu, it .■sometimes heconies impo' >il>le fur lie- londnei.or to
release ii. The eni' then runs anui -k, till it smashes .i^^ainst some oirstrm-ti'in, or till the
ei'iitrid stiiiion e,in he cimnniniealed with, and the eliiiin stoppeil. This of course stops
all fh" other ciu's on th;it liiu".
Stenni is a motive p.uver for street cars, is not popular for ohvioiis reasons. It is
used on the elev.i'ed lailwav of New \'ork, and the underground railway of Jjondon.
In ih<' tenner cMse i'.s noise and lillh er.nstilute a niiis.uice to the inhahiiants of the
distriit^s tiji versed, and in l!ie 1 itt -r to the :r.i\-idh'rs tln'inselves.
l.n.iiTiMi The lii^litin^ of |iiildie lhorou<,difai<vs <'arly recomuK-nded itself not
nn rely as a convenience hut also as a necessary f)recaution for the suffix of »iie inh.iljitants
and their )iroperty, " A gas liiiht is as ^<jod as a policeman," is a common sayins;,
and the state of atVairs so i.;ri| din 'ally portrayed liy Macaulay,f as existini,' in Kiiijflisii
cities of the 17th cenlnrv would no lonji;er he endui'ahl". " When the eveninir closed in,
thediHicnlty and danger of walkin;; ahont l-ondm hecame si^rious indeed. Falls, hruises
and hroken hones were of constant occurrence. For, till the last year of the reii'n of
Charles the Second, most of th(! streets were left in profound darkness. Tiiieves and
rohhers plied their trade with impunity ; yet they were hardly .so terrihle to peaceahht
citizens as another class of ruflians. It was a favoriti^ amusement of dissolute young
gentlemen to swagger hy night ahout the town, lireaking windows, upsetting sedans,
heating quiet men and offering rude caresses to pretty women. . . . The machinery
for keeping the peace was utterly contemptihh^ ... It ought to he noticed that
in the last year of the reign of Ciiarles tin; Second hegan a great change in the, police
of London, a change which has jierhaps added as much to the lia|>piness of the great
hody of the people as revolutions of much greater fame. An ingenious projector named
Eilward Ifeming ohtained letters patent, conveying to him, for a tei in of year.s, the
exclusive right of lighting up London. He undertook for a moderate consideration to
])lace a liglit heforc! evt^ry tenth door on moonless nights, from Michaelmas to Lady Day
and from si,\ to twelve of the clock. Those who now see tlie capital all the year, from
dusk to dawn, hla/ing witii a splendor compared with which tlie illuminations for
La Ilo^ne and I'lenheim would have looked pale, may perhafis smile to think of
Heming's lanterns which glimmered feohly heforo one house in ten fluring a small part
of one night in three. But such was not the feeling of his conteinporaries. His scheme
WHS enthusiast'cally ajiplauded and furiously attackcnl. . . . ]\lany years after the
date of Heming's patent theie were exten-^ive districts in which no lamp was seen."
Progress in lighting 1ms kept pace with other improvements; *. and even Macaulay's
London of fifty years ago " hla/ing with splendor "' would prohahly appear hut poorly
lit!
bei
lii
dc
.stj
ovl
Wtl
*T lis clnapiii M-" is I;ir(:cly tli>' rf^ii't i>f tlieir Hjiced. If a iikkI can run its ciis half as fast again as
tliose of aiM'tlicr, two thirds tlic iiuiiiler of cirs will siilliop.
+ //ix/"rii i.f HiidIiiiiI, \()1. I., cli. ;<.
;ln IsS;', ill Cieat Uiitaiii and Irdaiiil iIm le were t'-'iO. 000,000 cii!.'.igeil in tlie business : in 18S!) the
capital liad iiRTea.-ed to t(i(l,OOO,O0O.
:)4
:)r>
'i. It is
Jjoiidon,
s of tho
lit lis compared witli the iiverat;" city of to-ilay. lln' iiiiportanoo of lliorouijli li::litiiii» is
beiiit( ni'iCf mtkI more n-couniz d. In (Ila'JC^'ow tin- mii!ii''ipa! antlioritics comp»'l thu
lii^litini,' of stiifA'ays in tiMic unnt honscs, and pav pair of llif i.'o.st. Tln^v can atlnrd to
<lo )-o out of ulial is saved in tlie co^^t of ytreservinu' order. Oil i« ofcdnrsi- no loni.'er hhimI for
street litjlitiiii,'. I''roiii l!if' ads-anta;i;es ltis oli'i-rs in the way of convenience and safety
over oil lamji'^, they ac<' Wi-iiit; rapidh' displaced liy it as an illinuinant for pvixate use as
Well, especi illy in niaiiufictot ies or where liir<:;e (]i|intitie< niiiy lie "s.'d.
Apart from its iiu'l tint,' pro{)erf!es its applications are miidfold. ft has licen found
nsffid as a lieatiu^' :iu"'"t on eiilu-r a lar::!e or a small scale ; in the former (o drive stcain
en:;in"S, ir» t)i(! latter for doiiiestiu purposes, it i.s ohvious that eoal can l>e more
cheaply handled in lai'.'o (piantities -il '.^a-^-work-: than when dis'rihnted in small
quantities thiduuhout a «.ity. Moreover ii !,'is-\voiks the liv jiroducts of th'- coal are
almost ,ill tuil'/.ed. iicarcely auv w.i>te o'currini,' in the prodi.'tion of yas. In the
liuriiiiiL; of '_'as it is estimated tiiat SO jicr I'cn!. of th" l'eat-|iro(Uieint; pr-uer may Im
utili/eii, wlnle in coal stoves 10 to L'U jicr eciit, ii ohlaiiied and in a _;iare lir(? only
3 [)er ci nt.*
As a motive jiosver i;:is would <lo away with ihat Itaiie of urc-at cities, the smoke
nuisaiice, 'aIio^c far-reacldni; re-^ults for evil upon the jihysieal and moral constituti m of
cili/eiis are 'lein;:; more fully ajipreciated f If the price of ^r^is eouid ix* reduced it would
help in all the aliove-mentioned r'elorms. It would h' truicli ntore !ar;^eiv use), and in
con.se(pi(Miee eoidd he produced still more cheaply. It is also held l)y sonv that, if it oouhl
V>»-/llO*llU«-ll'-' V 'Jlll't »M I/|i>l|;.t\«V« .^l.lll lllJi'. ',il«t».l'». lLil-^illO\/lt\ll_« ' t r .-?(#Il|i- HULL, tL lt'ly<7l4ll
be olttained at a sutheicMitly low price, its utilization as a motive power to drive small -^.v
(^nqiiies would tend t^ do away witli the oncentratien of industry at !ora! centres ren lerei
nticcNsary hy the introduction of the steam enLjiiu' at the l)e;,'inni!i;^ of th" i^-ntury. J
In li.nhtiii:,', as in street railway traili'. ehctriiuty is rapidly M-<suMUnf» a very iin-
poit int jilave. In Ameri,.-;. it, is estimated that there are :500.'iOO are, and j.OOo.ODO in-
oan le.-^cent lamps in use, recpuriii:.,' the euiijloynu'iii of .imj.OO'l men, and the investm -nt
of ."500 million.s (,( dollars. ,i It has thus iieconiea ;,'re.it rival of ■^.^<, ii< ati iliuminmt.
Their peciili.iritifs seem, however, to map oit dillV'reiit sp'ieres of u-, fuine-!s for eich.
The jj;reat hrilliancy of the arc ii<,dit tits it for places where .an intense li^'it is cilled for,
or where it commands a loii^ distance, f.. </., a ship, a lii,dit hou^e, or a jeadiui^ edcy
thorouiihf'are ; whiie ;l,' is, heim^ more divisdile, is therefiire the; cheaper a't'-rnative whert^
only a small space re(piires lightiin^. So that for city streets a sysceui iiom'oiuin^
electricity and gas is hest ; using the latter for suhurhs wh(^re very clear iilumiu iti(ei is
not so neco.ssary, for courts or for wooded avenues, where sev.-ril gas-lig! 's at short
intervals are much more elhcacious than one urc lamp. As the i lertric li^d^t does not
take oxyL,'en from the air as gas does, and as it produces hut little heat, it is tj.specially
adapted f(H' ])ul)lic halls, uinhu'ground railways, inner rooms of buildings, etc., where;
ventilation presents rlitliculties. Tiie incandescent lamp, Iteing entirely pi'otccted from
the atmosphere, is available for m airy places, a. y., mines, wliere gas (• innot saftdy be
introduced
Seetion
-Tlii'ir It'hilidii to h'nrrnnihnf.
It will be observed that all these indust^ries have dev(doped their present import-
ance since 18r)0. This period marks the triumph nf the " laissez faire " theory of politics
by which the duties of government are contineil to the narrowest po.ssii)le Hunts; individual
freedom of action being considered all in all and competition the natural ruling factor in
every industry.
*l'rol. .(iune<, Till It'h'ti'in 111 tiiiMnili rii Mimifi/i'ihlii ti tlir 'I'n.i Siij,ji/ii, p. 11.
t.Vii irvleriwtiiig adjqitatien of tlie liHutitiK l"'"er i)f ii pis jet jh ^liewii in ili.> tliMrmii-'l: ventilation
ol)taiii("l ill iui etheiulHe st:i;,'niint-:iire<i reoni l>y kei'|iintf a jet luiniiiit,' in the viinlutiiifj tine.
l:lt has n..t yer lieen oliiained i-hiMp eneuijh. hii\ve\ci; iiml wiirtier tlil.s re.^iilt would |m11..w is \tev-
liap.s .alsiidiiiihtfiil. The same cliiiin i.s raiseii mi behalf <>! elec'tricity. Lord .Sali-'lmry, in ,i recent speech,
said, " Kh'ct.rii.'i'y will se/ittei- the [ireseiit unhealthy aeKrei,Mf,ien <.t lahor." The truth of thi> is .|iie,i mn. <[
\)y the Klirlf'-hi-liiiixrhi r Aii-.i iiii }• \\\,'\r.\\ iiejds tliat it will aiinihihitt' siiiall industries. In .iiiy event it
seems seareelv likely tli.-it when se tiiany eeiiditii. us vitally atfectinx industry have ohiui>;ed witliin luO
years, that the state ni thiiiif.s then existing* eeuld he retnnied to l>y simply i.diminatin^? what was at that
time th" distuiliiiii,' "lenient, \i/, , the steam en^-ii.c. Whdh'jr, under the new re^'ime tliat would r -suit,
the werhiiif,' iii.iii wmild he hetter situ.ited than at present remains to he proveil.
SMr. M. d. KraiicirtC'o, in a paper read before the National Eleulrii; Light .Vssouiation, Au^'. I'.i, I'^'JO.
Th« priiR'i]il(> of litisKcz ia'wo wiis itself a rcl<t!!ion a^.iiiisr an cirliiT system of
ini'iutu a!ul iiiaiiifi'ld it^ulatinn of private »'iitf'rpriKi' on tiif; part of yovprninL-nt,. Wliili'
it was not ill adtiptcd for tlic ni;f in wljidi it liail its rise, fiiat syst'in Inni lost its usc-
fulni'SM under i-han;;e(l conditions. Instcarl of lieiii^; a ]n-(itection to the weak", as it was
intended to lie, it iiad V)iconic a l>ar to their pros^Tt'Ss, an instrnnietit t'nr their o[i{iression.
T}i" paternal theory of tlie slate was still la);j;<'ly nir'-'tinj^ I'-ntdisli industry, wlien Adani
Smiili wrnt( liis " W'efdtli ot Nations." IJe opened tlir way for its <i\erlhi-o\v ; and, in
view of the iiijn-tiie arising Croni its praetical workiii!,'. it i.- i\ot snrprisi:i<,' that lie sliouhl
)ia\e ".'one to the opposite extreme in ndvoi atini,' iiidi\ idualisni. Self interest he lield to
be the tfreat hond ot society, and comprtiiioii tlie nainral, sole and universal rr'^'ulator of
ev( ry industry. His hook was written in ]77<1 ; hut itwan not till the repeal of the Corn
J.,aw,s th:it tlie principle lio advocated attained i(s full triunipli. ('onditions had ai,'Min
ihan<re(I in the interval, luiwever ; and .'-oniO considerations which had htcn wliolly over-
looked hy Smith had 'n come mutters of tirsl-riite imj)crtani'e.
OnI\ liy slow dej.'rrc.s Ijave men come to see that, under some eiicunistances, iih t-
alone policy may permit the strong to oppress tlie weak ; and tliat a caiefully eoiisidcied
ijiterfi rence l.y tlie authoiitics with the tree iiction ol the individual may he necessiny
foi' tlie mora! and nial<'rial weJtar" ot iJie nation. •' Comp< tition ne ha\e h :irni is
neither •;ood nor <vii in it.'-elf ; it is a lorce wliich has tf) lie i-tii(li<d and controlled ; it
iiiiiy he (tonijiared to ;. stirain w ho.se .sti-eiiiith and dirt ction lia\ c to he oh.s"r\ed, that
( iiihaiiktr.ents miiy he thrown up within which it may <lo its voik iiiomhssly and hen«-
ficially. lUit nt the. period we are coiisiderinff it came tr- he heliexed in a.s ii .yosjx'l, and,
the idea <f necessity heinjj; superadded, economic law., thfiuced from ilu as.-umptioii ot
imivt rsal unrestricted comj^etiti'ii were comeried into practii al prccepis, Iron; vvinch it
was regarded fis little short ol immoral to ilepiirl.'' *
()n(^ ci'he iir.'-t cxiiinples of !ejL.'a! interference h((iMiiini( iicif-sary v^as in connection
vvi'li parents" control of tlieir fnmiiies. 'Jhe l'"a<tory 1 aws jia\c (IcprixMl jiaifiitsof one
niean.s of supjiMt, \i/., ilie earnin.ys i f tlieir yonuij cliildren ; i'lil mastt is have, a' the.siune
time, liad closi d to them om? source of clicaji lalior. While the < mjilo\ mi^nt of dearer
adult hdior Ins not icsulted iii the increas-ed piiie prophesied for it, .■■tdl !h(> cost, of some
man li fact un d products Jias prohalily tiei n < iihanced. I lie clian^e hr'.uiiht ii certain amount
of ^'iU'eiini; as CM ry chiiie_e must cio. Y(-t, w.'i^hiiii; the ev il.> a;^aiiist the heiiejjts oiit^iined,
e\< ryont; must ctincede that it was hitter liiat the dilliciiliies eiit.iiii d Ity tin cliaii^e
should hi; endured tlain that (hildicn sliould he alio\\i(l to >;rfiw up "vilh tin piiysical,
iiienl:d and moral tlis, ases invai'iahly accompany iiti,' 'lie oMer system.
' had so ion.;- sioed ill the way of
.■>wuHi; .so far to the o)'positt'
Ihif, in the icviilsion lioni the restri( live pfilic\ t
rial proirros, the scale of op!ni(.)n had iialinall\'
extreme i)iat it wa.-; not to he hrouirht h.uk to tie' halanci^ hy such an example ol' the
lienetits to !"• derived fuuii o.ca-i:nal iii'ei feri^nce as the precerlitii,' That was in
behalf of childKU. Mi" w re con-ider'd a' le to 1moI< alier themselves. .\i, f-xainple is
seen m tiie c(jn(lict hetweiMi hihor and capital U In n a laho' er ,mumhlcd at ic-uii]!,' his
waj,'( s ri diired he «ns represented as hein;,' \ery unn as^ nahle ; for could he not stop
work it he lik' (I / Wvir tin re not others ready to take hi- place at the. new wagen,
and should not compc'itiuii and iiecdi^m of contract rule in all such matiers '. lait the
laliorer -savv that wiiile tJii m- mi<j;lit Ik- competition Ixfwfen himself and other latua'cis,
there conkl he no iii t-doni of contract lietweeii him.-elf an;! his emoloyi-r. Jfe Jmil a
family de|iendinL; on iiis earnin,..;s. to whom a day's 'os- of wa^es meant privation, and
the time spent in lookii;;,' for anew place starvalifiii. His master could wait for montliH
if lU'cessaiy, hut usually iiad a lait;e numlier of applicants for the vacancv from \< hom to
choose 'J'he hthoier vmi.s adv i.scd to huhmit patiently to his lor, which was natural and tli<?re-
fore riyht. To make tlie persuasion t ir-ctual, ri.;id laws a;(,unst comhinations of employt>c.s
wtre I nforced. Smailin^' with a s use of injustice, wnrknieu com'iitii;d m.-ipiteof the laws
and W(!re successful. Jii this p^riod aro.^io the nsentmenl of employees ai^aiiist employer.
*Arnel(i Tiiyalice, T/n J n'tusii inl H( rn/iiiih)!, \i. S".
Ol
\:\
'I'll!', liittcr ;iniii<j;uiiiMii lasted tor a yfucratioii, laid tlic foimdatioii of Socialism, and even
now wh"ii till! worst t-vils hnvv l)t><'u n^iintlii'd may s'ill l»e mit with from timn to time.
Tlii'^ htru'.".'l<' of I'apitiil and lalior hud an cduM'ivi; cllt'ct. It fmpliasizrd tiit- faiit
that i'oni|i<'titi')a c aild li'' t'rci^ only jmon^ i-i/mtJ.s. Tli.' id'^i that men couM, by comhiii-
ini; ihtMns<d\(;« to^'i-ihcr, piodncc .soni-ihiiiL; n^HCMiiMinL,' tliin «M|ualily with thoir nniployora
was a iifw one. I'. showc(l t'cononiir-ts 'li:if tln-v iiad Iii'imi wrcjii^; in csf imit n^ th^- con-
ditions of cf)mj)''tition. The whole i,'ii>uiid ha;; liecn l.'i>iic o\ it au'aiii, ainl t In- conclusion
di'.iwn tVorn tiic la-l twciitv yi arx' rxp' rience ni.tv hi stated :is follows :
While cfinipeiition may he a \e)y i^'ood ami useful tliiii:^ in itself, still it m'lst very
M-hhim et.'i'ur lliitt jifldition.ii circumstances do Tiot so entei" into tlie consideration of any
jiarticular indiisti'y as to make a'lsoiuti'ly free and ei|iiai com|tetitioii in itui\ imp issiliility.
'I hns, turning; to the (piestion immi diateiy hefore ns, ami askine how far a useful
and eiri('ti\e c(>mpet it ioti iiet ween tlh'ise iMiLraijint; in the same liusinesH is re, illy pissilile,
it will 1.1- found thit industries run throu.;h the i^'amut from ihos" in whiih competition
is hy hir tlie j^riatest factor to those at the other cxtremi' whose naturaliy mono[)olislii!
features overshadow thfir enmf)e|itive ones, in some ins! iie-e^ deslroyin.; tli'-in almost
entirely. At tlio 'aMer nd of i he si.'ile will Ite found th )se industries wh isc rem irk I'ole,
(levelupmeiit !ind pei'nliu- po-ition a-
ne(
essitie'-, of eiry lif,. hue heen (h's'iiW.' I in
Section f., VIZ. Waterworks, Street railways, (las and Klectric Li;^ht,in:^ and Teiephono
service.
Tliey were not dealt witli tiy Adam Smith heciuse they were not in (ixistmice In his
dav. Ainoiif,' the first to t(nich upon their monopolistic characteristics was .fohn Stuart
Mill.*
r.ut why slioiild thesi! industrial undertakin.,'s he moaonolies i I; is t video' th it i,li.;ir
nionn|i(>iistH; character is not of the same kind as that of th" aiiilicial monopolies ijrauted
hy Elizabeth, .lames I,, and (Jiiarles (,, in wliich an ordinary liusiu'Ss w.is coiilineil to
F'ated per-ons by the crown a.utliority, in return for annual paym-'ots to the t.reisury.
N'T are they akin tr> those iindertakinifs, such as inventions, or the establishing of new
industries in a cimntry riipiiriiii,' them, on whose behalf 'jjovcrnment mav st"p in aiid ve-
strain coinpolition by j^rantini,' patents, or by imposing,' a protectivi! taritf. In fact they aro
diametrically opposed to the last mentioned in the pirticulir t'lit L^iv.Tn nents, whether
fjetmral or local, have attempted tocr'-ufi- competition in them, and in spite, of the altoiupt
they have bi come nioiiopolies.
In what tlien dj they ditJer so widely IVoin other pursuits ?
Sonu' of their characteristics '^dven by Sir T. II. h\irr(^r in his book "'The State in
Relation to Trade " arc as follows :
" 1. Wliat they supply is a necessary.
" 2. 'J'hey occupy peculiarly favored spots or lines of land.
" '.]. Tho article or convenience they supply is useil ,tt the place whei'e and in con-
nection witli the plant or machinery by which it is supplied.
" 4. Tills ar icie or convenience can in j,'eneral be largely if not indetinituly increased
without proportionaio increase in plant and capital.
" '). Certainty and harmonious airanijeinent, wliich can only be attained hy unity, are
paramount considerations."
No o«/^ ot'thesc peculiaritit's seemsat all sutlicient to constitute any of the industries
under consideration a monopoly.
1. Their character as ni-ce---iinries has .already been dealt with in Section I. ; but they
are. not more necessary to city life than, say a dry-!,'oods store or a bakery, and these are
industries clearly open to competition.
'2. Here we meet a much more important diHlrence between tbein and such a busi-
ness as the sale of dry goods. By oljtaining a i^ood site for his store, «.</., the corner of
* He notices them brii-tly in liis I'ulificul Ecuiioiny, book v., chap, xi., .s. 11.
14
[oH
two loiuliiif; th()roii;;lifiirfs, (I iii"icli;iiit olitaiiis nn ikIvidiIi:;"- over hi-< rivals, liut c miiot
hIuiI tlicrii out. Uiit all tin- iiidiistiics witli wliidi wi' iii<- iIimHiij; ociMijiy tlif /"/A/Zc stn-ila
t/ieiiixeires for their liusiiic ;■■ ; so tliut c<'ii]]M'titiiiii ii-, of iicct sNit y. limited to u sniall iiutn-
b<T of i;otiipaMi<'H liy the phvHical iiii|iosciliiiity of crowdiiii; an iiulrtiiiitL' miinhpr ot'strcft
car trat.ks, i,'as aiul water mains, eliTirie li;^lit, tele^niidi and i,ele|ijp)ne wir. s njion nni
street, wlictlier upon llie hurlaee, lienealli.or aliosf^ it. 'I"lie nnmlier mi;.;!it !>'> j.'ri'aier if
the Htrc'-th wer« wliolly j^iveu uj) to tlicm ; init tlml is hardly what .streets are for. Their
UKe ri\' the KtreetK is a Ljreat ineoiivenience to the i^ener il pMl)lie;aiul each athiitiona! traik
or main or pole imi-e.seH the .innoyanee and (ilii-tiuciim in a lar ^re.itei' raiio than its
proportion to tliOHe alren.iy " Incatt d " wouhl at tirst sis;ht had us to expect.
While the people ma} he complacent uiuler tie' hre.il^ini,' ep nf a .-•leet fur two (;r
tlu'ei; wefik.s in a season l>y the ojjeration of hiyiu'.; or re|i lirinij the water nriins of a
company, and may lie aiije to endure having' the nni-aiu'e ineria.sed tu twice ihiit ien^^th (>i'
time l.y the Hicursion ol'a si i 'mrl i omnaiiy; slill,if a third I'oiejiany apf e.ir rm I lie scene wit li
tlie siiiie deinand. it is exiddit that an increa.se <;f only .'jU per ci nt. in tiie titee dnrini'
which the dii!!' iihy lastr. will he vn-wed i.y the ordinary rifi/eu as an inci--ase (.if at h-a-i
1(H) per cent, in i he ,iMhf>yance. Is thcn' not a pfijnt at whii h huni.in pat ieiii-e njust L;i^<
way'/ With tlie tipjie.irance of a fourtli ■■onip.in} will not that p'lint !»■ reached, altiiou'^h
the iiMiense ii: linw ask< d for he hiii oiH-third ' i he troulih- is not in aiiy wav le!->i'iied
hy all the coii!p;ii.ie:; ( aiiyin:,' un their icpairs at once, lor thut would stop trathc- en rlie
stn et etitin ly. (irmfini,' (ill this, liowever, it ilocs not [)iM\e an ah.-.()|ute nionopuly of :> 1
th(- imhisiiii K. lor tiiere i- room on each st re t for at hast t>»"o competing' con^panies, with
the exception of .street cars: and flie.-c ndj^ht he ei\( u adjacent pariillel streets or aliowed
to use < he* one liin- in < omnion as a meatis of accss to important hiisincss .'•octions, as is (lore
in many American citie-- S.. that ilm mo.vt tl at can he said I"!' this second oonsiilerntion
of physical iiecessji.y, apart fr in otln r onsidci.tion^, is thaT it linnt.-- ci.onpei itioii to a
coiiipar;iti\-ely sinaJl numlK r.
;'). Their third or /o'-'il clciractori.stii; is al.so mi i'ii[)ori.int one in connecti(ni with S'>i:i'-
of the.^e in(histries, If <.'as ooiihl lio easily soiiili'lcd or rethnjed to a .-mall hulk, so as n*
admit, lii.e (-otton or -uij.ir, of transportation to disti»nt plac-s, it would make all th"
ditii i. nee in the way in which it could he supplied. ( ompetition svould at once he
extended to all ;,'as-preduein^ companies within an nrv.w, ^reat or small, accoi'diuLj ti> the
cost of freight on the article sent. Thi; same i.^ true of \\at(^rworks. Ifaslreetcar
ticket pc-'-essirl the inl'.i^ien' propei'ty on heincr torn of convoy in;:; it.s hoi ler to hi.s cl'stina-
tion all c(nnp:ini( s in the world ijould compete ii\ supfdying tlto lioknts, thou'^di they shouhl
cost the conj'.,ni<s • s much ar^ th" present .-;ei \ ice docs.
In tlu' ahuve cases of stieei car, watm' and uas supply, competition must h' looal in its
character : since, lioni the initr.ic (if things, tle^ pl.mt sup;'!ying a (o'a n must he jilaced svithin
tile town or ;i( ar it, s(j that hu: inej-.s is reslricted to nm' c'.ty on the pai't of any company.
'Ihe local character of the i-uvply. as u ciiu.M- limitin;.,' com[)"'ition, ap{)lies hut in a slii,dit
d( ,i,'ree to te!(>phone companies, and to telei'iaph compaiues scarcely at all, siu'-e elec-
tricity, thi> form of force us(!il in them, is .o easily transleired over long distances,
•h By an industry of " increasin;^ retm ns ' we mean one in whii-h if we invest SIO^OOO
we mav ol)tain a net return of S'lUU a year, hut, if we invest •'-'2<t,000 we ohain it net
return ol" //a'/v than si, 000, ifi.. hy investing just twice the original amount wt- ohtain
more than twice tin' gain.
Now, tho.se we .are consid* ring are typical industries of that kind, hut they are not
the only om-s. In fact almost any business partakes of tliat nature n|> to a certain point,
e,(/. the large piano manul'acl-uri r usually has a great advantage over his rival who works on
a siu'ill scale, from the tact that the former is enahled to huy materials in larL;er lots and so
get reduced rates. He is enahhal to (Mn|)loy specialists, etc. Still this, as we kuow, does
not dt-stroy cotnpetition among su<;h manut'actur rs. Omi reason is that there come.i a
point heyond which, from the nature of the industry, thi? iu.lvantage.s of increasing the
capit.al involved htcome less and less.
[oK
iiut c uinnt
ililir nt I'll ts
smihII iiiiiii-
IT of HtriM-t
upon olir
• ;;ri'ilMT if
■or. Tlicir
i()M>i! Ir.'ick
io tliaii its
fur two (ir
iiiuiiis of a
it ltMi<i;tli f>f
.sui'iu' with
iiM' ilnriiiii
(,i lit !-ii-t.
' must i^iv*'
1, ;iltliuu;,'li
IV leii>i'iii'(l
ittic on rlie
ipcily of ii !
unit's, with
or iillu\v<'(l
, as is (Ioi;»^
isi'li'i'iition
■titioii r.j a
witli -nil''
k, so us to
i'. all t!i"
, oncf he
lit,' to thfs
>; 'fct car
is (1 'stina-
li'V sliOlllU
)C.ii 111 us
'd svittiin
>uiii;iny.
a sliu'lu
■ e t;lec-
I SI 0,000
lin a net
iC olitivin
are not
lin point,
works on
Its and so
osv, doea
conies a
ksing the
5t)|
15
While in tin- ciisc of sipcet railways, i,'iis, cto., this point nviy not he «') quickly
reaclieil as in most uthers. it i'i finally Ibund ; an i extension Iteyond tliat point can lie
carried on only at a lohs. This fourth reason is not, then, suiRcient in itself to constitute
them nionopolii.'s.
5, As to the lust reason ^i\('n, vi/.., the itreit ad\antai;e of cei'tainty and li innonions
ftrianjjfinent whicli can only lie attained hy unitv, this advantai^e is esjieeially marked in
the case of tlu Leiephone, where its utility larijeiy depends oi lieiin^ able to r niiiiuinicate
with litii) of tlu! services in the city. It is mori easy to .irrange a system of transfers
hetwe<'u lines of street cars if they lielonii to oim company if there ho a lir>'ak in the
waier or i.'as mains or defect in teicphone wire>i one i- iinpany cannot cast the Mame up'Hi
ttiioiji' r, if iheie he hut one company in a district. That company must at once shc'-Iuer
the responsihility and attend to th<! defect.
Ihit these are not the only industries where the .same clement of certainty is an advan-
taj,'e. As a matter of faer, a family seldom I'hanj^e their Ifiitcher or grocer, because
they know what to expect of him; and yet these are calliiiLjs not at all monopolistic m their
cliaracter.
We have now examined the (Ive conditions and tiiid tliat no oii'' of tlieiii is present
in such a way .is to ciinstitutc street car traliic, waterworks, gas or eleotrii.' liglu, or tele-
phone ser\ ice a ifioiKiiioly.
Hut if we consider the.se fi\e co!iditions, t<ilc''ii l>'j'/fi'!r, the r.'sult is .juite dilT ri nt.
Tlie lirst ensures a dcinand, the secoii'l narrows competition to two or three companies on
a tlnir'iULihlare, the third contines competition to om^ town, the tourth makes the prize of
olilaining .^ moni^poly .-o great as to change c.jiiipi'tition into a war to tlu^ de.ith, in which
the weaker ciimpany must he " ah>>orh. 'I " : while the tifth makes it a matter of piUiUc
con\enienre that tiK^rt sliuiild not ln' <'oniii"t.iti m in ihe.-i; industries.
yir.ctioa -J. — Tli.-i Man ipiiUsdc (Jharii'l.iw nf t'l.'t Sevcfa/ Iiulnslrira,
1. Sfn^'^f /I'liihrai/n. — .Since it is pliy ically impossihle to have more than one doidile
tracic on a street, iheonlv way in wliicii cam|ietitioii h'-comes at al! p'issilile l^
(1) To allow compi.'ting companies tunning powers over a comninn 'diu! ui rails, di
(2) To let them use aflj icent str"ei> for t le'ir tracks.
( )f the two metliiiis the fMniicr is cl.-irly tlie better; lor in the latter c is-, the e,).,i;
of layinir and iiiaintaiiiiii:;- an extra track (from .'51, -'UU to oJl),UUU per miie; ' is s.j
gieat til-It tiie eompany could allbrd to give lietter si;rvioe, it the mo ley wasted in
building the sec'ind track couM he .^avcd and expend-d in thi', wa\. Moreivor.
the im|)eiliiiieiit to traliic oll'ered iiy slieet car line.s, aiul the c mstant annoyanc
they present ui residential (juarters would he sullicient I'eason, apart from tinauuiai e<>n-
siderations, for conliiiin^ them to the smallesl nuni'ier uf' streets po-sihle'.
So that, dismissing the case of competing on adjac-nt streets as w.istcl'ul :>\id as ,i
multiplication of an uiinecc^ssary aiinoyanci;, wi^ h.-wi; remaining the first nainwl in^'th 1 1, or
that ill whiih tlui same track is usetl in common by com[)etiiig companitis. This plan,
with various modilications, is adopted in many Ane rican cities i ; where it is usual
for a numiier of companies to have runiiing ptiwers over co'umon tracks in the " ihiwn
town " or business sections of the city, and outside the'.-^e to have their indi\idual
private track.s.
Now the chief consiih'rations in a street car service are ; (I) Th it it should take us
to our ilestination with as little walking as possible ; (2) That v.-e should be able to get
there as (/nii'/,/i/, ('■>) as ronifhrtnh/if, and (1) as ch-niiltj as possible.
Over that part of the road wliiea is private property there can lie no eom|ietition ; for
if roads are on ulternate stre-ts. the disadvantages in the way of wa^Lelulne.^s and annoy-
ance deah. with above make theins(dves felt. If, oi the contrary, they diverge to a
Toronto Street Railway Arbitration.
+ E. g,, CItVfland, Ohio.
10
[GO
diHtiinen from caoii otht-r so as to catiili a local tiallic, as is almost alwayn tin- onso, com-
^K'titioii is at omu- (l((.stri>y(!il, for no uik' ".vill walk cvi'ti tsvo lilockw t'artliir" tli in In^ nccil
in order to {liilronizf a rival coi ipauy's line ; nK.n- csin'cially a> tin' timr lo.^t in so iloiny
will usuiilly niori' than match any a-un in spp'-il >u- Tare on llu! part of the nioti- distant
company's rars. N'ow, it is only for thnsi- takint; a lonj,' ride that I hi' item of comfort
}>('C!oinos im|ii)itaiit ; liut in takiiit,' :i loiii; ridf thf (ra\<-lli'r is olili^cd to approach the
jjuhurlis when) railways aro far apart, and, as uc havf just seen, in siioh a casd thu para
mount consirlcrationa arc ncariicss and si't'cd.
Althoui^h compf'iitioti is thus sn powcilrss as a rc^Milator of street railway trallic, the
faith that has hccn rcposi'd in ii hv Americm cities is riMnarkahlr. Fkjiu a list in thn
{^trcf't Kailway .Jnnrmd of July, 18'JO, the t'ollowin*,' lit,'ur(s have Ik'hm cmipuN-d :
lt^^ Ami'iican cities and ti'wns have f^7^ street railways. Of these ;!.'?'» have liut ont!
railway, 0") have 2, "J'? have ;{, If) have i, S have a, 'A have 0, 1 have 7. '•'> have I-*, 2 havo
i). one lijis 10 milways, one 11, one I'J, one I :•, and (Uie 1'). San l-'ranscisco lias 1(!,
St. 1/aiis I'J, Now Vork I'.t, I'hikulelphia L'l, and ritslmri; rejni'^es in the possession of 21.
The attempt to produce <'nmpetiLion as shown in thfse ligures lias not lieen attendfd
■with iiny nnirkMl succpss. In f.et, in faco of the diliiculties that have heen sketched
ahove, it would 1m! veiy surnrisiiii( indeed if it htid licen. In Phihuh^lphia a syndic-ate
lias l>een formed, which contrnlH most of the roails in that city. W'iien the elevated roads
of New Vork wore Ituilt, an illort was mado to kenp the three lines distinct ; hut this
etFort was d(>feated, and they cpiickly aiiiMl^amated. The street railways of Newaik, N. J.,
liavo heen consolidiited, and I'oston, Detroit. IiuHalo, RucIh stcr and Coluiiilais, < )hio,
have recently followed tlw. example. The Toronto City Council, after consideriusj; various
proposals to introduce competii.tj lines, have also, recently decided in favor of "an
•i.fchtKtvi'. rij^ht to operate street railwtiys in the city."
Mr. C. E. Stump, Vice-President ol' the Stre, t IJailway Puhlishini,' (Jompany, New
York, under date of Jan. 12th, 1S!)1, writes: '• It is inipossilile to tell how many lines
are heing controlled hy syndicates, as lines are continually heiiig hought up. When; the
.Unes of a city are not all under control of a syndicate, those which are retain their
individual name. 'I'he railroads of Now York city are controlled hy the .Metropolitan
Traction Company."' Mr. I'Veeman, of the Detroit Street Railway, says : '• Ai,'reenieniH
usually exist hetween the street railways not to interfere with oiu^ another, and to run
on common agreements."
So that it is evidcmt that competition anion;^ street railways exists only in name,
■A-nd that if the American cities in tht! list from which the writer ohtained the above
general figures granted charters <jii the supposition that they were going to ohtain com-
j)«tition, they made a mistake.
The sooner that attempts to regulate this industry hy comiietition iire utterly ahan-
<doned, the lietter. Let us face the inevitalde ; and avoid the useless waste of capital
involved in such efforts, hy recognizing tii(> true character of street railway trailic as a
anonopoly, and by dealing with it as such.
2. Waterworhs. — The monopolistic features of waterworks are so apparent that they
have been more dearly seen and more generally acted upon than in the case of any other
of the industries mentioned. The nece.ssity of water supply is so evident ; the cost of
providing it is .so great ; the public annoyance from the breaking up of streets in the
laying of mains, etc., so considei'able ; the imine<liat«i attention necessary in case of a
3)reak so unavoidable for the safety of the surroundings ; in short, the whole industry
is 80 intimately connected with civic interests, that very few American cities have
■attempted to create more than one system — far fewer than have duplicate systems in gas,
K)r electric lighting, or street car service.
In Europe the movement is clearly in the same direction. Most of the cities provide
Their own waterworks ; and, where this duty has been delegated to more than one com-
pany, the resulting inconvenience has been so great that there is an agitation in most
places to al)ate the nuisance.
[GO
I' cnsn, coiii-
IHIl lit! 11('«'(1
t ill so iloiiiy
nnrr flistiiiit
1 i)f foinfort
|»pioacli the
ISC (lie para
y (radio, tlir*
ii li^t in tho
ilN'd :
lavt! Imf-, otKf
^•c' t<, 2 iiavt>
isfo has 1 (!,
iHsion ot' 24.
■iTi aftf'iuled
I'll sketched
a syiKJirate
ivatfil roads
t ; l)ut this
wark, N. J.,
MlliUH, ( )hi(),
■iiii^ various
vor of " an
ipany, N'cw
inany lines
\Viu!ro tho
retain tlieir
•trupolitan
\i^ceenieniH
and to rnn
ill name,
the al)')vo
l)tain com-
terly al>an-
of capital
radio as a
that they
any other
»e cost of
Kts in the
caso of a
e industry
ifies have
niH in <»a3,
ea provide
one com-
in most
-ill
17
London has S water companies supplyini,' ."i,t)5M.(^0(i people One cliaiijes C J Is for
what another char;,'es C'MTs, and for the same service that tli" < Jla-i^ow svaLerwurks,
which are owned i»y thf numicipality, charge t'l Ds iM ; ssith tiie fiirthci' diHep nee that
<ilasu;ow pro\i(leH "lO ;(allons per day, and the London companies puivide only M
ijalUns pec head of a population seviii times as i^rtMt. The Lundon companios
chaige rates accor'din;^ to ilie rentals of the houses tluit tiny >uiiply. I'hese rentals
have trchled since If^'t.'), Iiave double! since \Hi]H, and Imve incriMx-d -'' /, sinci*
1 SSQ ; uiid yet the coiupaiiies ll:ouL;h rliari^iii;,' thesi' increased rates, actually supply
less water per houni' liian they did lU yi-urs a:,'o. The value nf tlieir >t(n k doulileil in
the years from 1^71 to ISS.i, Somt! of the companies had a maximum dividi nd of 10'' j,
pruvitled for in tli( ir charter ; this limit two of the companies h.ive reacled. < )nc oou>-
])any liux inj^ no le^al limit to its dividends pays ll'l^ ,„ uiul the luwi st pays t)*\,,.
The total value ot the waterworks in the city is >£;J."5,(iOO.(liM.), and alter dedii'tiui,' runninji
expenses, etc., it is estimated that tiny ii'pav their owners c?'>(IO,Ol)0 a year over the. current
rates of interest. I n so vital ,i matter ti> (he city, moreover, as irotection ai,Min>t con
dii^'rations, (he Kire l!rii;ade iinds il>elf' oontiuually hampered l)y the lack of pressure .md
scircity of wudr under the j)resent system. In February. lf>l)U, a inminittre was
ppiiinted by the Loiiclon (bounty ("ouncil, to tonsidf r the (Mkiii^; over cf ihc various
d the I mjMrial
nil'
waterworks This coininiltec! has reported in favor of the >,. h
I'arliatnent is beiii^ asktul for tlu; necessary powers.
:'), i,',(s Sujijili/. — In this industry the tfuidency to monopoly is scar ely less m irked.
The ditliiuilties of attempting t) re:^ulate it l)y competition and ilii' Ix-nelits of mananini,'
it as a rt'co,'ni-.e.| moiioiioly, are so clearly proven liy the past exp'Timie of American
and iMiropean cities liial a reference to some of lluuu will lure be niadi-.
In London, Knglaiul, the principle of assii,'ninj,' t ich company a di.slinol territory
which had been in voguo for 20 years was abandoned in iSJi' and competition encouraged.
As a icsult, six diri'en>nt companiis laid mains in Oxford Street. Diirin:,' the pandemo-
nium tliat ensued, .-uch little incidents as vvasti' in Icaka^t! resulting from a ch.in!,'t! of
service hastily made, the counectin},' of a hoii.se service with the m.aiiis of a wroii;,' com-
pany, or even the conneclin.:;of two dillerent companies' mains to;,fether, pas.se 1 unnolioe I
in the clamor for cu.stomers. In the war of rati s that ensued, consumers o'liained
gas for one-sixth tlie price of pioduolion, while, tluough the jealous .sect coy main-
taineil liy the coni[ianies, .some, obtained their gas for nothing' l<y n presenting fhem-
.selvos as taking from some other coinjiany than tin; one demanding ptyment.
This state of things could not long endun^. The tearing up of the streets for the
fretpient changes ol' servici^ jiresenteil such an obstacle to tialiio, and ihv escape of "as
Viccaiue so dangerous as well as disagreealiK', that the au;horities had t>) interfere.
In addition to the public inconvenience, the companies suirered sevi n Iv and severil
became virtually b.mkrupt. In IS.").") ihe l-i companies came to terms with one
another, divided tho city int > districts each taking one, cea.sed competition and tuch
adojited one uniform rate for the whole of its district. Prices were greatly increa.sed,
and it was (.'vident tliattho consumers would now have to pay tor the unnece.ssarv
mains, etc., that had been buried during the eiithusi.tstic period of competition.
Xotwilhstanding the public outcry a Parliamentary imiuiiy, alter careful consideration,
indorsed this action, and provided a system of regulations. .Vmalgamation of the
companies tollowed, and by I86.ithe thirteen companies had beoomo three. T'heir stocks
now .sell at from two and a half to three times their nominal v.ilue and their owners
receive from 12 t<j IS per cent, interest per annum. In the Lnglish provincial towns,
and on the continent, much the .same result was obtained more qii 'kly, ,'jj , in L'aris tho
companies werti ''districted " in LS^'.t, and consolidate I in 1S.').'J.
The same experience has been passed through by u[ivv.irds of a score of .Vmeric
cities and always with the .same result. The case of iJt'troit is a typical one. I
mayor, Mr. IL 8. Pingree, writes as follows : — '
" A franchise was granted to a second company to do away with the monopoly of
the first. One of the conditions of the grant was that there shouM
2 (M.)
Ill
he
never bo any com-
IS
[()2
liinntioii, or ilivisioii of territory im<lci jk imlty of tin* forf»'inirf of tln' friiiii'liiH'-, and of
ft hrnvy hnnrl, wliu-li was titittT'-.i into ut tip- tiiiu' of tli" ijraiit. Williin two yoars, uh I
rciiirinlicr it, tin' <• iiiipinifs ilividcl tt-rritory, ridi t ikiiii; oiii'hulf ol tlii> city, ('xcliniiufd
|ii-M|ii-rty a •.'oriliiii^ ti» loiii'ioii, an I iniiui'iliutfly imt ili" priif of !,ms up to tlu' oM
iiguri! hffon- coiupt'titioii roiiuncmMvl. Tim city fnu!,'lit the cam' in tin' courts, lint whk
cv 'titniillv liciitcii. and thti i'.)ni[i:»iii''.-i li iv" l.-cn L;oini,' jiIoiil; in tli-dr own way fvcr
sinic. '
A CoiiRffHuioiml (JoMuiiltii> Ims rc|'oitt'd ilut "it is l"ad p >li' y to piTmii ninrc than
oiii' j{as company in tln^ .-^anit' pail of the cily." •' ( 'onipi'tition unolvis ut least two
or tlin-' and evn more wofUs wlii-re one would li.- siitliiient. it means two or
tliree or even nioie uiain- where one would lie ample. It iH'ccssila'es a eorrespnnil-
in;; nnndier of dillt lejit siM-viees m eucli house, and an enormouhly lai'i't' mnnher
of ins|iictii. s mid c;nllectors and all f^r what f Che.iper i^as ? !!y no ne i\iis. The
enormou.-i >uni-; of capiltl which sui !i a -yslcni w.i te.^ will eertdnly try to eiirn
dividend'- in Kunie way or otlier, and the only nie.m.^ is in hi:;h prices <ti -^n.-i, or eU-' what
.iniuunts to much the same thin;,', in a iMorer i|udii>. VVhtMi the puhlic is tin illy
compellfd to takt> hold of the matter in earne.-t, to remedy 'he al)U.se, as it always must
sooner or later, the laru<' suniH of wiisted cafiital ar^' always piii, for. vard as eii'.ith'tl to
s line i.iinsi'ieration in li\inLf the rates."*
Win tin-r cities have leirni'd Irs-iuns fro n hisr )ry. or wlmleMc th" reason, te\vii
attempts at lumjii titioti in the "as industry ha\i Iccn made of late yeais than formerly,
ami tlie husiiuss may now sal'ely he set lioun as an alis-lute moiiop' ly.
■1 Tim EU'ctrir Lhihliinj industry is soyouny llnit ii has .scarcely \et heen sutlieienlly
studied to be rel«pated lo a linal jtosition. Kiom a comparison with the characteri.slics
;,M\en on paye l.'i as pcciiliai to municipal mono) oiies, it may fairly lie inclndcil in tlie
nundier. as it possesses tliem all to a very consideraMe deeree. It has hecoine a m-ci ssity ;
it occupir-K favored tracts ot land : the plant must be in or very near the pl.n-e su|. plied:
it is an industry of inerensinj; returns ; and roipiires certainty and Inirmony in its
woi'kin,i.;s. Ol' the '/'i'liyi/i<m>' .<frriri' nuich the same Joay be said The last named
consideration, liuwexer, that of certainty and harmony of arran^enn-it, beconu-s far more
important. A prime necessity in the use of the telephone, is the certainty tlnit from any
(ine inslrunn-nt any other in the city may be reached t.hrou<i;h the one central oliice. A
choice of lini s would be no less coiifns:in'_' than would be the necessity ol choosini; one
of lialf-a-ilozen alternati\o routes when mailing a lettiM'. One would always be possessed
of the exasperating.; fear that )ie had clioseii a wronf; one, and tliat his mo8sat,'e wouhl,
after all, fail to reach its destination.
Probably the most characteristic feature, liith of electric liiLjhtini,' and of tclephonfi
service is their nccujiation ot the public .streets, either above or lifdow f,oound, for their
M'ircs. One has but to look about to see tlm nndesirability of increasinf^ the unsi;;htly
maze of wires above our heads. On the first appearance of these industries, almost
every town, carried away with enthusiasm, '^tivc, som(^ company untrammelled rights,
trusting that, if it abu.s"d its privileges, .some otiu'r company would i-eadily enter
into compt^ition witii it, as in ordinary undertaking's. From their peculiar monopolistic
nature, this expectation could not be realized ; and wliere competition did ensue, it was
of the deadly charaiter previously mentioned, j^ivinjj; the consumer a short ecstatic
period of cut prices, but ending in the ruin of one company or its con.so!idation with its
rival. In either cast^ tlie survivor would not forget to charge sutlicient to make up the
loss it lias 8u.staincd. So, too, it often happc^ns that in tlie a'rial labyrinth there are
some "dead wires" of defunct companies left there when the sma.sh came. Thes(; go to
swell the constantly increasing number of overhead wires. It is evident that this can-
not go on for ever. The pul)lic cannot consent to have their sidewalks fenced oil from
the roadway by a palisade of more or less ungainly poles.
*Not only this, but the multiplication of wires constitutes a very real menace to public
safety. The following, from a recent Chicago paper illustrates a common occurrence : —
*Pf of. James, The Bchtion of the Modcr,
A
III
oil
.11
n|
a(|
t;
til
imcipal
Supply.
[(5:
liiMi>, aiul nf
) yciifs. us I
, I'xcliaii:,'! (I
to ih«' olcl
•fS, Ipllt WIIK
■II wav fViT
' iM'Tf tlifti:
t least two
iiK tw.i or
foirt'spmnl.
i':.'<' iniinlicr
!■ ;ilis. Tlic
y to <'!irn
r flsi' what
i: is till lily
'•iititlctl to
iisoii, t<'\v< I
11 f.'MHcrly,
SUllici.'iuly
IfUtiTJ^lirs
I'lc'l ill tlic
:t necessity;
oiiy in its
iist iiuiucd
far more
fii'iii any
ollicc. A
losiiij; Olio
{>nssi\SH<'.l
.'e Wouhi,
telepliDiif
for tlieir
unsj-htly
es, almost
<i rights,
ily enter
nopolistic
uc, it was
ecstatic
witli its
e uj) tlic
tliere aro
ese ({0 to
uliis ean-
oll from
to public
reiice : —
i\^]
10
"Tlif lire alarm wires hfcaine crosscil aii'l tiiii^led with tli )He n'.' the tel.>,'r.i;)!i an I
t,el«|ilioiie companies, cut liy the liremeii 'I'h" result o'" this w.n to r'"ii>|er us 'iess th >
m)ii;{s ami lielLs in the poli -e stations and iiMW-ipipT olli cs. T.ie i»rovt s^oa;^ in th- eiiy
hall :;ot out of ord«>r at midiii^'ht, and refused to nicorl an alarm In th>- oiii "s th^
hulls, the ronneetiii^ wires of whii'h were crossed with te!e|iliou" wic's, rin,' il n i>' in
ceHKantly. "
It is evident that ipiite apart from linanci il considerations, lh>- sudd<'n dis
oigani/ation of the hystem of communi' ation upon wliii-h 'he order ai 1 safety nf a city
are lia'^ed, is a very serious matter. The advantages of p'lluciii,' th" wires lo the least
mimlit r pnssilile, uhi-nstruni; overhead, are manifest. When stretcheil in siKvvays th"
advanta^'es of limiting' t'"' numiier are f)f another kind. Here i-ost h-coiiien the rnlin;;
factor, and inerea^"s willi the iiumher of wires, ») thit a \ast and nnnecesiary outlay of
capital must accuinpany any attempt at coiiipetili>jii, such as we saw to lie the case with
the pvs miiiiopuly.
When eiectrii'ity was lirst introduced as a li;4htiiii,' a.'eiit. ir was opjio.s -d l.y :,'aH
I'oiiijiaiiies, who claiiiiMl liy their chatters a monopoly. In tireat hritiiin and inland an
Impi-ri.il Act (i'l iV l'< \ ic, c. ."it'i). estalilished that what they pu.ssessed was a priority,
lint oi li'^'ltiiii;, hut only of i^as sujijily. Klectiic comp:inies at ome entered into com
pi-titif>ii with j,'as ; and thih competition has had a \ery consideraM" ellect- upon prices.
As previously pointed out,* liowever, each seems to lie specially htiid for some kind of
illnmiiiiitinii ; and it is a si^'ii'tiiimt fait, that in the I'nited Siate.-i, more than 'itiu .•om-
panie .lie operiitin:.' ehniric lights in coiucctioii with their ^a:- works, an I that duriiii^
the y. ;u I'l'iiii .Mar.'h 1 S8'.t 00, the f^as companies increased tin ir ownership of cl'ctric
li^^lus hy almost. ."lO jur cent. f
W'lure competition i.> attempted in telephom ser\ iic the kind of w.irtare that ehrtrae-
terizes tlie^e monopolies is .shewn ill a couple of (Jamnlian instuiies. In .Monti al tiie
IJell 'J\lt pliom* (Jo. is oppO.sed i>y the Kethual Tell phnii" i'l). Mr. Si/.e, the rre>ldilll of
the torir.i r Company. s;iys : —
" ( tf course the liusiiiess in that city f Montreal) is lieinij operated u a lo-s, hut wo
are iloiu;,' live-sixths of the Wusiaess there " ( )!' I'eterii rouL;!i, ( >nt., where the llell (Jo.
is also opposed, he says : — " We are now supjilyin;,' instruments free of chart;' t' kill
opposition."
I'letore lea\in.,' the suliject of electrical o|ieratiiins it is nc'.'essary to point out that
one undertaking^ is often consideralily impelled liy tic neir presence! ot another ; and
that their ici-iprocal actinn one upon tlie other is often productive of serious and tmex
pccted results. Tiius where an electric street railw^iy is in opei.ition, the '■ return cur-
rent " from the car always interferes with the telephone .service to a i^'reater or less
dei,'iee. And at,'ain, when an electric lii^ht wire touclie.s .u lelephoii" wire th" latter
immediately sutlers, often hurniiiL,' out the iiistruments, and htcoming a source of
danger to the neij^hliorhood.
An attempt has been made in the pr(;cedini{ |iat;es to prove that some industries
necessary to city life, r.y., water supply, street railways, {i;as and elfctrii; lii^hlinu', and
•telephone service, are, from their nature, incapalile of rej^ulation by competition. .. If
this 1p<' true, and competition is attempted, it can only 1) • carried on at ;,'reat los.s of
capital and public convenience. If the monopoly be partially rucogni/.ed, as whero
* I'agf 11.
tTlie electric street railway cniiipany, the pas C'>ini>any, and the electric light company liiive recently
aiiialgiiiiiated in l)anville, III. In two C'anailiun tnwn.s, Slierlirnoke, l,>ue., anil Mnncton, N.H., tiie electric
liglit, gas and waterworks are the property of one company, with good financial results in each cane,
accoriling to all accounis.
:^ l^uoted ill Th- Mmutdnj Times, Toronto, January 10th, 18'Jl.
§ " A new corporation invariably joins with the old, andjthe.thuinb.screws of the double monopoly are
turned ui) tigliter." Inaui/ural Aldrcas of the Mayor of New Haven, Conn., Jan., 18'Jl.
•2i)
|.U
lAch <'<iin|>iuiy is i-iiiiliiicil to oiu* iliHtrii-'t <it iht) uity, all Md- inlv.intugc of' nirryiii:{
on II Ixuiiii'ss on !i liir;,'"' .scil.-, .7, a ininnn' .livision of la'ior, uml with it a morn
(lioron;{li I'lassilioiitidii ami liainiony of iuaik:ii(<'ini'nt is lost. Tlii' i:it.y, iiistfinl of nupin^
tlio tr< iik'ikIouh a<l\aiitai;i>H uri^iiii; liMiti its iliiii)U)sioim, iH virtnaiiy split up iiilo a
numlii 1' (if Hinall towns, rii|uiciii,' nitirly scpiriti' plan's fof cai-li, xiiiinl to its si/»',
thus involving a yrt-it w.isli' ol 1 u[)i(al. So that all tin- chaiiccs for po>.-il>|i' cii-apin'ss lit*
on till' si(l<- of a nioiiopoly, ai»nUiti- and nn<livi(|ci|. Tlit' trur way tu dfal with ihi-H*>
indiistiii s ihfii, is to r- coLjni/" fully 'heir ui iiio|>olis'ii' natun', discoiiiili'iiainM' any at-
tempt ai coinpi'tilion or part ilionini^ iIk* liiy int 1 distri'-ts, and maintiiin cuili frantdiiso
intai-t.
Ah the mdinary ni'-ans of kr<'pini,' tln'^t? iirhiilii"s within proper limits, viz, com"
petition, Inis failed, mid ns linniitn nature iH not y<'t fri"i from MellUhness, we must (iii'l some
met hud liy whieli we may sciiire tlie Id ly p ilitin from the inonvenieiKjes that will resilt
it the Miipply "f sndi service- is left to pri\ate initiative fr^e from ■ ontrollin^ ooiulili ms.
Nowhere is Lhens a m.ire a'osolnte Wre.ik ilown of tin jir-mise on whiidi is reared t he
policy of iiiissf, I'ai '-. vi/. ; tliit what is most for the inten^st of the individual, is also
inosit for the inieiisi of the communily.
Win te shall we olitaiii the power to compel thi' o.irryin;^ on of tln:se iindertakiiii^s
in a manner not aiitit;">iii-.li(; to the intci'ests of the :^.'iieral piiMie.' Tiere em li.- Init
oiK^ answer, vi/. , in the ]ii)Wer oi control vesteil in the niMiiii.'ip.il or the central authorities.
The only (piestim that ean arise is. How far shall piihlio control extend, and how
iar;^e a domain may liesl l»i! left to private enterprise .' A thon.sand (•on^ich'ration.i must
enter into the determination of e.ach individii il can- : an I ae^ordini^ to whert; the line is
drawn will the man.ini'meiit of any monopoly he assii^ned its place in one nr other of
these two divisions :
1. Manai,'eiiienl Ijy /'//(•(</'' rnterprise, whether coupled with In) jnivate ownership,
{/)} private ownership with rii,'ht of |)itl)lii; e^proiiriation, (/•) puhlio tiwnership.
2. .Management hy a salaried stall' of pnhiic ollieials, tin- nmnieipality owniiii,' the
plant and carryiiij^ en the iiuhistry.
DFrAPTKR n. CO.MPAIMSON OK PIM'.LKJ .VND PllIVATK M AN At ; KM MNT
OF .MI'NI(.;il'Al. .MONOPOLIES.
In docidiui; whether any ijiven innnii'ipality shoul I assume full control of any one of
thes(! monopolies, or if not, how far it should ^o in imposinj,' restrictions upon the
private parties cxiryini,' on th>' monopoly, so many ipiesiioiis peculiar to tho localitv.
and the people intere.sted must he t.dcen into consiih'ration, that any attempt at tlie
draftin;,' of ahsoluto rules must h(f alimdoned as hopeless. The greatest of these
ilistniliing elements, and one vvliioh must, he a factor in the ijuestion everywhi're, is the
di.shiinf'.sti/ of public olliciahs. Phis must of course vary in every town, according to
the ]iul>lic sentiment and the morality of people and olUcials, the carefulness of the in-
^peclion given, the proportion that the salary of public servants biiars to the e.xpensi^s of
the style of living they are pn suineil to adopt, and a hundred other things. Now it
would seem that if we could free ourselves from this most ditlicnlt element, and
neglect it for a time, wo might be able to arrive at some geiu-ral conclusions near
enough to the truth to be of value, which would admit of (jualitications to suit the
(iifl'erent degrees of faithfulness luet with in the ditferent administrators of public alfairj.
\r,i
(\r>\
SI
of niiryiii:»
it II iiiort)
il of rnlptll^
up inlo II
I lo its .-ti/.f,
ll<'Hpll)-HS liti
witli ilii'sc
ri(,-i' ;iiiy lit-
II franoliiHi*
s, \ 1/ , coiir
si timl NoiiKt
L will rus.ilt
L'omliti )iiH.
H'ttHMl tll«>
Itial, is also
idcrtiikim^H
Mil II.' Iillt
aiitli'it'itic-i.
, mill liow
vtimirt imist
tin- liiii- is
or otiicr of
owmrsliip,
owning thi'
ii;\|i;.NT
iiiy line of
upon the
iocilitv .
It at tlin
ut' those
'I', is tin;
iitlini^f to
if tilt; ill
pt'ns(!s of
Xow it
ont, iind
ons nc;\r
suit thi'
ic ait'aii'd.
Sn'titni /.- Soiii" Afmh'ii'l Fltmnrinl in'l Et'oiiiniiif (JiniKvhriUinnH.
i((')iriii)( in mind, tlit>n, that fm tlii< prcHi-n' wr itti> li'UNiiiL; thin i|u<<H(ion <it° tin-
r«'Ifttiv(' ( (licjciKy of piilijic and pri\iil<' service on diii- i.idr, Nt us |(ioi< ut ►onic (if tln'
finmii-inl und ■'■nnninir oonHidfriitioiis (Imt iiiu>t lir t.tkiii into iti-couiit in dt'cidin^ Im
pnlilic or for private control.
Tliroo caHcs uriHo :
Irtt. Where the monopoly fails to pay expeiiHOH.
•Jnd. Where i(s eiiininj,' power is iieai (he Imrdir line ot expenMen, eithi-i ulmve nr
helow.
•Srd. Where it is yielding larj^e returns,
I . In the first case, \vlier<' the monopoly is deurly u losing ;,'iime, it is evident i hut i\tr
leHs tli(! niunieipality Ins to do with it in tlir wiiy nf assuming' the property the Ketter.
A Inwn iimsf icHch a eertain si/e lietore Ihosc indiistiies we are < onsideriii}; can ln' iniide
prolitalili. ' 7., to have a street railway in an onlinury town of les-i than TiiOOO people
is a folly for which some one must pay.*
Ai'i'ordinuly we lir.d that it has heen a general rule for the (irst street railway eoin
paiiy estalilished in a town to 1:0 under in the course of a few years. Tie- plant is then
lioui^ht up iiv Koiiie other coiiifiany at a fi artion of its cusl ;tand the eariiiiiv'- whieli were a loss
to the first ennipany may hrint,' a surplus to t he sii-ond, owini,' to thi' le.-is ii'iiount of capital
they have invested. When the municipality lieyins to tliink ot" assnniint; ih*' Inisine^'i,
it is also a i^i'ie'ial rule for the .secund company to ur:,'e (he hanlship \iiideri,'one liy fh"
lirst, as if that weie a reason why they should he paid more, when they have already
profited liy the disaster of their predecessors.
(ireiit caution must lie exercised to determine the true condition of affairs. In
represenlini; the returns of the liusiness, if a yood shewing; is desired to lie made, it is nut
uncommon to huive mit of ac(?ount such items as interest on the cajiital e.speiiiled, any
percenta;.,'e foi sinkinij fund or deterioration in value, etc. ( )ii the other hand, com
panies may find it advantaj,'ec.us to (onceal their real profits, under the cloak nf
secrecy which many of them are still uiiforlunately ahle to cast over llieir proi;ee(l i nj^s.
'I'here is a shrewd suspieion aliroad that the hu;,'i' masses of stoi'k upon wliich some
ot' tliem reckon dividends have heen olilaincMl mainly liy the aihlition of l.ii';,'e (|uaii
titles of water. One of tim j^'reat dilliculties atteiidini,' this sulijeet in its (;onsidi'ra
tion. either hy municipal authorities oi- economists, is the almost insujieratile o'istaeles
in the way of oli'ainini,' rclialile st.itisti(;s. This has prevented investii,Mtion in this
field ; lor if there is oni; thing more discourattiny than another, more likely to lause
paralvsis of action, it is to find ntieiiy eonliictini; tii,nires ijiven on the mie hand liy
those who have all the means of kiiowiiij; liui whose interest il wiuld he to supprcs.s
the truth, and uu tlu; other hy tho.se who, thou;,di honest enoii;,'ii, have no imans of as, er-
tainint,' whether the estimates they L'ivc are more ilian men' L,'uesses. ."^ome ninre ade,|U iii
returns shoulil lie insisted upon than are at ])rescnt olitaiiialih' trom these monopolies in
most of the cities of tlie United States and I'annda It is clearly an advantai,'e In h ae
the ]iowor of appointing an auditor to go over the Ik nks of the gts compiny in
Toronto, rather than to have iiu such power as in Montre.tl. or as in the ('uses ..f the
street railway conipanitf.s of hoth cities. Tliis information mii;ht he given to tie; pi 'die
or it might not ; hut in any case it sliould li(> known to the authorities df the miiiii -i-
*How itlcisely ill" prosperity "fa street railway coiresjiDnii-. with the ki.iuiIi nf iKc city it is in, is nli. wa
by the fdllowiiig tii.'-iirfs j,'iveii hy tlie Torniitii Street Railway Ce, ilnriiijr tlie rcoeiit iirlutralicai : —
Trips jier
I'.iss. iiffers head ef
Year. I'lipulation. carried, population.
1,S"0 .")O..Mtl OIC), li;0 12 •_'
18S0 "."sllO L'.W.i.tWJI ;(.s.2
188.^ ur>,'.'ii 7,:ts(;,L'(i.s 70.1;
IWK) 1110,141 lt),;no, t44 101. s
t In .St. Thi.ina.^ Out., the .Street Kail\v:iy tliat cost .«Sl4,C00 t. l.aild wa.s recently -old f,.r !J2,;«X).
99
[GO
palicy. Jt would not 1)0 any injustice to tho owners of tlie monopoly; ft<r, as tlie business
is one not mscf ptilih; of competition, it cannot Ijo injuncl liy the oiit>i(Ie world comin<f
into possession of tlm knowledges. Tho, only way in which it could result in a way detre-
mental to 'lie owners would be liy its lieinj^ taken advanta^ie of hy thf urhaa authorities,
■wlio. from the intimates connection between tlie.se monnpoHes and the public interests,
have a rij^ht to the information ; and if it were granted l>y the owners it would nt once
fnc them from that "carping' criticism, unreasonini,' hostilily and base suspicion"
uiiilt'r which tliey i^roan ko bitterly, and whicli is no doubt, in very many cases, (piite
uncalled for. The remedy, however, lies in their own hands.
This rii^ht of secrecy was no doubt granted when these undertakings wen' tirst set
on foot, in tlie cai'elessness I)orn of nosclty. enthusiasm and ignoi-ance of resuUs. IJut it
is high time the puijlic authorities disposed of this unfair advantage.
( Hir municipal aiUlioritiiss themselves have liecni scarcely guiltless : and the book-
keeping of some American cities in I'egard to those monopolies over which they have had
even full control, has been done in a maiiuer mystic, wondfrl'ul, which none should ridi-
cule, for suHily none can understand.
2. Wliere tlie earning power is upon the bonier luu- of expenses, it may be advant-
ag"0us for the iiuinicipality to acquire tlie industry in the following cases :
in) Where a town is growing, so that, its future being assured, a surplus maybe
relied upon in time.
(/>) Where the town already owns one such monopoly, and can economicallj' manage
another in connection with the liist, ''. </., by utilizing for electric light the power
nece.'^sary for waterworks. In such a case care should be taken to keep the accounts
of each jierfectly distinct.
(r) Where a municipal corporation can use its credit to borrow money at a consider-
ably smaller rate of interest than a ))rivute company and this difference is sullicient
to turn a deficit into a surplus at the end of the year.
The position is not changed liy the company using its own money instead of borrow-
ing : for itK members will hardly enter into an undertaking oircring lower interest than is
obtained from, say, first mortgage bonds, upon which there is no risk. The rate of interest
upon such bonds is almost always more than that yielded liy city delientures. The con-
stitutional limit placed to the borrowing power of cities in the United States, although use-
ful as, a check to rash speculation, lias in some instances been an obstacle to progress. It
has hindered the attainment of necessary pi'operty which was rapidly increasing in value,
so that when at last the city has finally ol)tained what it neetled it has had to jiay many times
what would at first have b( en necessary. A case in point is the; taking over by the
City of New York of the lands reepiired fur straightening streets. Another is the
(btliculty met with by many cities of the Central ami Western States in the assumption
ot their gas and waterworks, etc, The limit should at any rate he more elastic. Tlu'
attainment of a valualile and necessary asset in return for the money borrowed to win it.
need scarc(»ly be looked upon as a menace to a city's future.
('/) Where the management of the private company is so iiiellicient that the muni-
cipal authorities can certainly improve upon it, so as to niak(> the investment a lucrative
one. This is a state of affairs that, according to the advocates of private initiative in
bu.sine^;s matters, can never occur.
Social contiidvrations. A company, under the terms of their charter, sometimes can-
not be compelled to conform to the wishes of the municipal government, cgr., in the
matter of extending their system to sparsely .settled suburbs, or the giving of such con-
veniences as the transfer of passengers from one route to another. If the change pro-
posed is financially expedient for the company it will, of course, usually be ready enough
to comply ; but it would often nol pay the company to do so. If the municipality is
obliged to subsidize the company to get it to carry out the improvements, it is clear,
[66
tlif Imsiness
irl(l coming
I way ilctre-
Hiitlioritif^H,
c intcrcfit.s,
uld at once
suRiiicion ''
;a.scs, (juito
■re first set
ts. l>ut it
1 til.- hook-
y Imvc had
ilioulil ridi-
bi- advant-
iis may bo
liy manage
the power
10 accounts
a consider -
■! Kullicient
)t' liorrow-
st llian is
interest
riio con-
lough use-
ross. It
n value,
ly times
l)y tile
is the
um[)lioii
o win it.
)fi
or
10
niuni-
ucrativo
itive in
mos ran-
, in the
uch con-
ng(> ju'o-
enough
lality is
s cl<-£!r,
from the nature of things, tliat since; tlie ciim]iany must In- lioLter ;il»Ii' to tell tlio real cost
of sucli iin])rovement than the city otliciais can l)o, and since there can ho no c()m]>etiHou
with till' ostahlisliod company, tin; city must always jjay very dearly indeed for the
improvement. In such a case the oxoieist! of the right of the comiuunity to take over
the ciimpany's franchise, if the munici|iality possestes the right, may ho a convenient
way out of llie ditliculty.
fndood, it is the duty of the city govoinmont to provide for th(? free extension of
city limits : ami, hy securing tor the people of the suhurhs sur(> and easy access to
the ceiuio, together with tiie ordinary amenities of city life, to relieve the central parts
of that excess of population which is now its cui>e. Not only this, hut it is the duty
of the community to provide for tliost; wlio cannot otherwise alVord them at less than
cost, and even free where n<cessary, those e.ssentials to a decent life, such as ahundant
pure water, light, etc., whidi have been <lwolt upon in the l)(>ginning of this |)apor.
Private companies cannot he e,\pect( d to tlrain their [lockets to accomplisii this
result. It is as much the work of the community as is the free puldio school system of
which America is so proud, ;ind should go lumd in hand with it. The intimate connec-
tion hetween llllh, disease and the commoner kiiuls of crime is heconung morn clearly
understood. < ihtsgow supplies free fountains for the u.se of the poorest classes to draw
supplies for domi;stic purposes, and the hospitals and rharitie.i of the city an; supplied
gratuitously with water. The city also pays part of the cost of lighting th(i stairs of
tenement houses with gas ; and it arranges with tin' street car company for certain
"runs'' much us'hI hy workmen at the rate "f a penny for a •' run " of considerably more
than a mile, whih; morning and evening cars are put on at a charge of about a cent per
mile.*
It is said tliat in London, England, the sanitary improvements oi the last few yeata
have lowered the mortality rates by a third. t Although this is probably an over-e.^ti-
maie, ^ still a great improvement has undoubtedly taken jilic" in the mortality rale, and,
as an accompanying result, probably a still greater decrease in the amount of sickness,
for which there are no statistics. .Ml this points to an increasing attention being paid
by cities to their sanitary condition.
"A .solemn duty exi.sts to treat cle.inliness and police and drainage and water supply
as (jucstions of business and philanthropy to lie settled on their own merits, from which
there is for honest and humane men no escape. In this lies the .si;!utiou of the great
municipal problem. 'I'here is no other way in which great cities ean b(^ saved." .s
Whetlifv one of these industries will reap for the city a rich iinancial harvest is not the
tirst or only (juestiou which should be taken into cotisider.ition. How they can be best
used for the general well-being of the citi/.ens is a more important ijuestion. That this
consideration varies in importance as applied to tin; various industries \vi'. are considering
is of course; ap[iarent. .Sewers an; n c; ssary though they yield no tinancial return.
SulHcient water supply and a certain amount of street lighting are not less essential ;
althougn for the latter, gas as providing a less brilliant, more divisibli; and, therefore, less
expensive light than electricity, is more of an e;-sential ami less of a lux' ry than it.
In Vi ry large cities cheap transportation is an essential, in small cities it is not.
And wc have not yet arrivenl at the point, nor probalily e\er shall, when telephone communi-
cation will (;xert such an inlluence upon the people at large that its charactt;r will be
changed from being a luxury to being an essential.
* l^ut altlimif^h ( JlaRf^ow has cxtuniliil Ik r iianaital imlicy to the pnividiiiK iif |iiil)]ie i)ictiire i^'alliTJei
for tlk' iiiidille classes, aiul pulilic lauiiiliies ami e > ■koii;,' stdves fur liiesi; at the low. 'st etui ..|' tin? ..(leial
ladder, she .still empties lit r siwi riit;c din'ctly iiit" lier ddck-burdercd riviT, a fact which aiivnin^ who lia.s
liad occasion to travel u|ioii the Clyde has distinct cause to reuieinljer.
t.\. Shaw in the Cen.tury Mafjazine, N'ov. ISHO.
t; See S!iitist/i\t iDi'l h'ciiniiiiii'\i, by !{. M. Smii
noiiiic Ass( ciation.
^ .Uttiiii-ijial (iuKriniK lit if Nin' Yurk, in the Xoitli .Vnierican Kcview, October, ls!)0.
;; See .Sliitislii'.t nil'/ h'riinniiiir.i, l)y !{. M. Smith, in \'ol. I|[. of the I'tiblications of the American
f^cononiic Ass( ciation.
24
(IS
li. WlifTO a lav(j<' .•iitr)if}ts\H l)ein<; oanicd l)y one of tlu-sf city iiiojioyiolirs, it is jilainly
lictlcr tliat tli(! g^iiii slioiild f^n into tlic civii.' treasury than that it should liiid its way
into tlic pocl<('tH of tlio holders of the monopily. This is especially true in view of the
ditliciiliics ill tli<' way r>^ \i\ ei|iiitMl)le mode of le\yiii^' tixes in e.ity conmiuiaties. These
dilliculties have prcsenU'd themselves so strongly to writers upon taxittion tliat some of
tliein have seizeil upon the apparent solution or partial solution of the proldeni of city
taxation y)reKf ntcd liy the revenues which these monoj)olies can lie made to yield. They
would turn this n.oney into the city cutlers and lower ^'eneral taxation
liut this is merely putting in i he phu'e of ilir>-r/ taxation with its easily seen cases
of injustice, a mode oiindtrrct taxation wliith though not less unjust is more difficult to
trace, and therefore more ilillicult to rectify. Lik<> indirect taxes in general, this may be
paid witli less outcry than a direct tax would lie, because those payin;,' it do not know
that they are being ta\<-d. but it is not less unfair on that account and but little less
injurious in its etlcct. liaising liinds for civic necessities in this way 1ki.<, of course, the
incidental iidvantfig<!K possessed by all indirect taxes, <;.(/., that they are collected in coni
])aratively small sums, and are therefore not so much felt by the consumer as a direct
tax payable in large amounts would be. JJut rates for water and liirhting paiil ([uarterly,
amount to sums sul1ici<aitly huge to lie seriously felt by the ordinary householder ; and
the case of street railway trallic, to whirji th;' above i-ule ol small jiayments would
particulaily apply, pnsents a fatal objection in the fact that a tax up mi it is a tax upon
the lower and middle cla.sses oidy. The cars of a street railway are scanely used at ali
by tlu> very wealthy who have their own horses and carriages. This, then, i.'^ not a
solution to the great problem ot" linding an e(|uital>Ie mode of taxation for American
cities.
The lesson fr.im tiie preceeding is, tliat wluiii a city assumes control of one of it.s
monopolies, whate\(>r mode of futures management may be decideil ujion, whether jiublie
or private, that inanai;ement slnuld lie based on the principle that only a very moderate
surplus, if any, should be obtained, and tint the conditions attached to the franchise and
the {irices exacte<l from con.sumers should bo fixed in order to bring about such a result.
S'ctiiiii. .'. — Rclntlv. I'jjju-lenrii (if ]'i(l)lf ami I'rirat'- Sernihts.
'\\\\> is probably the nio^i important as well as the mo>t ditlicult suliject to consider
in connection with th" manrtgement of .Municipal .Moiiojiolies.
It is (lllfi-iilt, from th" state ol' ali'iirs never b dng precis"ly the same in diHorent
localities, and from the manifest ob^taeles in the way of arriving at truth wh','U the only
]iersiins who could L;i\e the desired information are tlio.-;e who are interested, who vill
give us only such returns as they see fit, for l)usiiiess pui|)os"S. to publish, unaceoiiipanied
by any guarantee of their accuracy.
It is inrporf'^iil, from the fict, that, in th" ordinarv city, the iielustiies we are cnii
sideringdo notyiehl such unlimited revenues tint an incapable management cannot change
a plying concern into one with a deficit : while an administration that is capable, but
corrupt, may so use the funds derived from their control ot puldic industries as to intrench
theiiis(dvcs almost impregnably again.st the attacks of lione.st citizens. A notorious
example of this is furnished by the L'as ring of Philadelphia.* Successful crini'' is the
most contagious of all diseases ; so that in such a case, the most import int consideration
to be regarded is not the direct (inancial loss, great as that may bo.
Waterworks, street railway.s, etc., have attained their importance during the last
lialf century, the same period that has witnessed the triumph of democratic principles of
government. We should, theri'fore, expect to find, where the management of these
industries has been taken over by the municipality, that that inanagenient will partake
of the evil characteristics as well as of th" good, belonging to ''government by the
people." This form of government is supposed to reflect' very clos<dy in tlie rulers.
See Bryce'g Amsrican CmuiuoniveaHh, Part v., Chap. 89.
(i,S
(;f»]
20
I is plainly
(I its way
(-W of th<!
'H. These
it sonic ot'
'111 of city
Id. Tiicy
spoii I'ase.s
lirticult to
lis may br
not know
little less
ourso, thi»
^d in com
! a direct
ijuarterly,
Idt'i" ; and
its would
tax upon
sell Hi all
!.-> not a
Atiicricat!
oiii' of its
\0Y public
mo Icrati'
K'liisc and
1 a roKuit.
consider
dillorent
tlic only
wlio vill
inpanicd
ar'o cull
it change
il'Ic, but.
intrench
lotorious
ne is tile
ideration
the last
ciples of
of tliese
partake
by the
p rulers.
the moral pet-uliaritie- of the iuIkI New, it may probably lie set down with perfect
safety that the bedy of Uritish eletf.ois, or the residents of British cities are neither
more intellii,'ent, more honest, nor le-s deinocratii' tliaii tlieir compeers on this continent.
Yet it is fjeiierally cnineded that Uritish cities are more fortunate in tlieir .^election nf
magistrates than :ire fhoM' .i| the ITnited States or ("anada. Why .should this be so '
The jiicputut frankness witli whicli American newspapers are wont to explain to
public servants their pn'sent and piasi failin-.'s is not calculated to inspire cup.ible men
witli mucli enthusiasm for civic honors. Itut what is probal)ly of more imfKntanci-
than this in dctermininj; the ])ersonel of our city councils as compaud with those of
Kngl.ind, is our lack of a wealthy class, who, liaving the time to devote to the manage
ment of pul>lic aliairs, enter political life without any desire to make an income by it,
and thus nnintain a comparatively hij^h standanl throughout the whole of public life.
<'ap:ible Americans are too busy making money to spend time in the uinppreci.ited
labors of city manigement. In (Germany, on the otlier haml, where a bureaucratic
system calls the best men into public service, we find public afl'airs better a'tended to
than private. It wouM seem that in this matter " we cannot spend our penny and keep
it.'' In America, tlu're has been an excessive; application of intellect and ability tf> the
furtherance of private interests, and publie interests have sutT'ivd accordingly.
As a result of this seltishne.ss of the capabl' (witli. of cour^i'. the usual honorable
excejitions) a poorer class comes to tiif;. froir. 'i"hi> would not l)e 3> serious witc it not
that iijion the character of the In-ad of a department depends so much of its elliciency.
The orilinary paiil subordinate sees lufore him no \ery liigh or lucrative situntion to be
atttained by cxctiptional brilliancy. It i- not the cusnm to pay 'Dii/ civic servant such
a nmuineratioii as for example many bank managers obi. in ; and while there may be but
few ver)' good positions in private Imsiness, yet tvery em^ loyee feels that lie lUfii/ reach
one. and the chance nerves him to higher endeavor, and makes him salislied witli
smallei' wages at tirst. It thus hapjums that private concerns pay less salaries to
begin with and offer greater priz 's in the end thin pu'dic depirtments.
liesides the dilVerence in po.ssible reniuuer.ition, there i> the dillerciue in the way in
which advancement is to lie oljtained. The public servant knows that what his ]irincip;il
desires of him is the quiet perforunnce of his duties in such a w.ay as not to attract
publit; notice, and the criticism which is preUy sure to accompmy it. Nothing n(!W is
wanted ; above all, no exp'riments. In the routine of oilier: work, the public employee
soes nijre and more clearly a-> tim > g;)'; by, t!i:^ in >tto bef.ire him :
" .Ml li ipe ab.iiulciii ye wlio cuter here."
and he relapses into a vegetative exi.st mic •, "v.iiliiig for his superiors to die that the way
t ) his adsanceiiient may be cleared. Ibit this is not the only niftde of clearing the way ;
and when he observes the potency of out-;ide pressuie upon his chief, he may give up
the attem])t to rise by merit and lu ly dire •! his attention to the procuring of the iieces-
sai'v influence.
The privat( employee kno.vs he is lieini' ^vatched clos. ly Uy his i>rincij):tl : a man who
understands the intricacies of the businffss, and whose repulse to a i'e(|uisition for
increased salary is timii, until it is revoked by a conviction of the increased value of the
services render< d. With a knowf^dge of the absoluteness of this decision, the private
employee sets himself to earn the increaie instead of manipulating wires.
When civic otlicials are exposed to dangers and temjitations such us these, the with-
drawal of c.ipabh; men from public life as representatives of the; people, is the more to be
deplored. The public service is surely not less a duty calling for unseltish action by those
competent to manage its att'air.'^, than would be its defence if physically assailed. In the
meantime, municipal politicians may very often be placed in one of two classes, the honest
incapable, and the dishonest incapable.
20
[70
Tho dl.-ihoH'^t inc'tjxihlr, (rocs into politics "for tlu> iiuiuoy in it/' and is th«! lo;,'iti-
mate rosult of the excc-^sivoly wido I'rancliiscf wliicli has l)e«n very i,'on(M'ally i^'rantod in
Aniorica with no ^(uarantcf for its intcllif,'cnt, usi'. This, and tip extent to wliieli fcil(!ral
politics ar(! carried into munici])al all'airs nnke tho I'nited States city his reco,i,'ni/ed
home, As a "ward politician" he is tliorouj^lily in Ids element ; and representiiii; a small
constituency, hfi makes it his " liusinc-ss " to kmiw everyone in it. The honest, he can
often ni i,dect ; for tiny .--Ikv.v thi'ir dis^'ust of tlf way thini;s arc; manaLjed, and their
contem|»t for him and his ways l>y "not takinc; any interest in mmncipal matters;"
precisely the coiuNfi he would have tlieni pui.'-ue. With th(iF(^ "wnrd lieelei's " who
sympai'iise with his viesv that '• the city is made for the aldermen," he has more ditli-
culty. I!ut, hy the lnn<f discipline hi' undergoes hefore he has reached the top, he has
learned the systfm nf " L,'ive and take,'" which is ntiessary to pn vent " unph asantne.=s "
among his friends.
Another result of the long training he lia-s undergone with the prize of the spoils
hefore him as an incentive in the race, is an experience wliich makes him more than a
match fur the Iinin f^t iitcniinliln wlio lias been placed in tlie council hy a [lassing wave
of ])uhlic interest produced hy some impropriety more glaring than usual. As a result
of their c.)ml)ined efforts, we have die American system of municipal hook-keeping.
li^nder circumstances in whiidi truth is so hai-d to discover for the average citizen,
and 1h; knows not whom to ludieve wheri^ anyom^ may 1)0 interested, it is important that
the central power should take steps to ohtiun accurate returns. And yet in the cen.-^us
reports l)oth of the United States, and of CaniKJa, nothing of im]jortance is shown in this
dopartuHMit. In Great JJrilain, the sessional papers give closer and more accurate figures;
hut on this continent it is still possible for ollii.'ials to charge the expenses of one depart-
ment to sucli other department as is best suited for their purpose, «?.'/., the expense con-
nected with running electric light plant is sonu^times put to the debit side of water works
account, and cost of refitting carbons, etc., to lire alarm department.*
Xow, it is evident that tliis outlay must i)e entered in the Ijooks somewhere, and it
just as (ivident that if there is no check upon ]\im. the head of two departments, one
paying, the other losing capital, may render the un[)rotitabl(; one less unpoptilar by
charging its deficiency to the former.
This may be done in all honesty, where an electric light plant is being run at ni.elit
by the same (Migines as supply the w,it(!r works during the day ; a great saving is
effected, and who shall say I'.VfirfJi/ how much coal, labor, and wear and tear of machi-
nery should be ascribed to the cost of (dectric lighting and iiow much to waterworks .'
This is a ipiestion for teohnioal experts to settle, and thm-e is evidently a consider-
able mari^in for honest disagreement. But if wo find that under such circumstances
uow, of the expense is cliarged to the electric lighting department and nl/ to the water-
works, we may be tolerably sure there is some "mistake;" and to ai'cept results so
obtained as the hap[ty result of municipal control of electric light as compared with
private manngemmit is most unfair to the latter.
Again, in the case of municipal waterworks, the city generally arranges a
schedule of rates calculated to just meet expense's and no more. Wiiat are fxpi.'7is''s I
Should interest on the cost of construction be reckoned in the list ? If so, what
rate of interest I (") That paid on the construction bonds, of say ten years ago, when
money was dear, or (6) that paid on present cheap''r lo.tiis ellected by the city % There
are reasons for adopting cither of the two methods and according to the rate decided
upon will the water rate be placed at a higher or lower figure.
Hut if we find a city where tlie waterworks debt has all been paid, say by taxation,
and where accordinely there is no interest at all to pay, or, as is tin* general rule, part
of the debt is paid and part unpaid ; if, in the first case, no interest is taken into
account at all, and, in the second, only that paid on the still outstanding del)t, it is evi-
dent that the water rate charged citizens will be less than if these interest items were
Uel
thl
orl
tr|
0Ci|
111.
thii
esti
(
do(|
hisl
oili
as
est]
anc
am
it
if I
bot
* See tlie statements uf Mv. Fraiicisce at the t'.lectric Li^jlit <_'o!i\>nti"n iit Cape May, N..r., Aug. I'J, 18il0.
[70
s thn Iej;if:i-
• ^Tantod ill
liicli fcilcr.'il
I recognized
itiiii,' a Kiiiaii
lost, he can
, ;ind tli(Mr
matters ; "'
'dors " wlio
1 iitoro diHi-
;op, lio has
asantnt'ss "
I' th(f spoils
iiorc! than a
ssiui^ wavR
Vs a result
[)ing.
ige citizen,
ortant tliat
the census
5\vn in this
ate figun^s;
)no depai't-
:|ienso cun-
ater works
'TO, and it
iionts, one
jopular Uy
n at night
saving is
of inaehi-
terwork.s t
consider-
iMistances
lie water-
•I'Sidts so
red with
iges a
io, what
L'M, when
There
decidf (1
ixation,
Lile, part
on into
t is evi-
us were
19, ISiiO.
71]
27
d(;liited to the waterworks account, as a private company would ho oliliged to debit
them in order to make Ijoth ends meet. Where the citizens have thus taxed themselves in
order to ol)taii\ low water rates, it is scarcely fair to regard such reduced rates as a
triumph for municipal managciMont.
Inder any system of management, breakages must lie accounted for wheiv they
oerui'. lUit how about deterioration in value? A buried gas pipit has a life of so
iiiiiny years, ;tt the end of which it is useless. Some account should l)e taken of
this, and, as each year contributes to the destruction, so should there be an annual
estimate of the loss put by as a sinking fund to replace the pipe when necessary.
Compuiies take this into consideration and charge accordingly. The city otUcial
does not always do so. Hoping it may not occur in his time, and desirous of pleasing
his constituents by reducing the gas or water bills that always seem so largo, he puts
oft' the evil d;iy, on the piinciple " Aft(>r me the Deluge."
While considering the advantages that civic ollicials have, or take tor themselveB,
as coiiijiired with the servants of a private com]iany in rendering their accounts and
estimates, we must not neglect one great disadvantage. When the municipality owns
and cimtrols one of the monopolies, it is the custom not to charge the city with the
amount of service it re(juiros of that de))artment, i'.(j. : if a city owns its waterworks,
it does not usually pay for water roijuired for street sprinkling or tire purposes ; while,
if a private company were carrying them on, the city would \)G obliged to pay for
both.
S''ction J. — Sonic Comparniive S/nlistics.
How a system has worked in the past is perhaps the very best criterion of its value.
But to form an absolvitely accurate estimate of past experience, we must be in posse.ssion
oi full information regarding it. This is evidently impossible. We can never know a
period in the history of an individual I'ully ; for to do .so, it would be necessary to
pen:'trate his thoughts : and even he could not enlighten us, for there are num-
berless outside inllucnces continually at work upon him of which he is himself un-
conscious. If impossible in the case of an individual, how much more so when we
consider an industry, a city or a nation, i'ut the fact that we cannot hope to arrive at
absolute truth is surely no reason for ceasing our endeavors to approach it more
clo.sely. The more uncertain our statistics, the more rough must be our conclusions
diawn i'rom them. The sci<Mice of the statistician is on(i of com{)uratively recent origin.
Its importimce is becoming moie clearly seen every year ; more aciiuate methods are
being arrived at ; and each succeeding Government census embraces many new depart-
ments.
In the I'.ritish " Parliamentary papers," reasonably rcdialile figures may bo found ;
but in America these munici}i;il monopolicis have not as yet been reached. ' We must
therefore depend upon private entc-rprise for such knowledge as w*; possess regarding
their working in America, except in a few States having special iJoards of ( !as and
Electric Lighting Commissioners.
\\'tiJiTir,,rh-s~—\w this department, credit is due to the very complete descriptions
and ligures given in tin' " .Manual of Ann lican Waterworks " from which the following
facts are gleaned : —
( >f the l,i)'iO waterworks in the United States, 818, or 41.7 j)er cent, are owned by
public' coi'porations, and 1,10G, or .")G.l per cent, by private; companies; re-
maindei' unknown.
nf the 8:i waterworks in Canada, 48, or.")?. 8 per cent, are owned V)y public corpora-
tions, and 35, or A'l.'l per cent, by private companies; remainder unknown.
Ihit although more than half the works are in the hands of private individuals, yet,
owing to the large cities almost invariably owning their own water supply, tlie popula-
tion served l>y private works is only about one-half that served by public works.
With the exceptinn of a (iliort iietice nf telet)heiie .'service in the United States census of 1880.
'2S
72
Coining; now to tlic |iric»'K olinrg( d tor ('(hkiI service l)y pulilio and \>y privutc wiiter
works n'spi'ctiv fly, tlic editor of tlie " Miumitl " liiids tlm followinf;; differences : —
'J'lie n\ernge totiil fiimily rate lor ."US public works is SJl.Ti'i per year.
' " " •' i:',0 private " .*;'.0.S() "
fio tliftt tlie private chiirj^c is \'.\ per ci'nt. moir tlian tlie |.uliiic iliai'.i,'e.
In (Canada the. aliove diaries are, pulilic .~?1.'1.07, ]iri\ate ."^.'H. I.'!.
In Ontario " '•' '• *-_M.ll', " slT.OI.
In Canada as a wliole und in Ontario hv itself, therefore, tlie private ciiar^e is f)!*
]ier cent, and '20 per coit. rei-pe(;ti\cly, more tiian the pulilic ehart'e.
But if a system has co.v/ tnoie it is only fair thai it should r/mri/'' nioif for what it
supplies ; hut
In the I'nited States, includin;,' tlu; Pacific States, th(» cost of private works per
family was IH pc^r cent, more, whil(! they cliariji; 13 per cent, more than puhlic.
fn tin- I'nited States, excluding tli(! Paeifii States,* the cfLst of private works per
family was ;{,', per c<'nt. less aiul tliey charge, 31.', per cent, more than
public.
in Canada, the cost of piivale woiks is i'2 ]ier cent, less pel' fiiinily, and they cliaruje
.^O per cent, more than public.
In Ontario, the cost of j)ri\ate works is :'>•"> jier cent, less per family, and tliey diarge
•_'() per c<'nt. more than public.
Tn re<,'ard to tlie above iinures. which shew so <,'reat a triumph for jtublic, a.s com-
pared with private ownersliip ol' waterworks, the libjeciiou mii,du lie ui.ir''d that they are
the returns for rich men's reijuirenients, and that tin ordinary citi/,( n does not re<]uire
water for a horse, or to wash a carriaije, vvhich are, it may be r<Mi arked. included in the
editor's estimate of family consuni]i!ion. .\ closf' e.xaniinaiion of chari,'es slunvs, howcNcr,
tliat little ehaiiL^e in the above results would be elft^'ted liy tnkiiis,' into ac<'ount the piice
of the lirst water t.ap merely.
Applyiiif; the criticisms of public management ^iven on jip. 2(\-'27 , the advocates of
private control will immediately claim that these figures are of no value, since munici-
j)alities do not expect to imet interest on the wiiole cost of the v.aterwork's, nor yet do they
provide a sinkincj fund for det(;rioration in value, that the plant must underijjo from year
to year: and. therefore, that to the charges of pijblic works, sliould be added yearly
a certain per<'cntage of the cost pi'ice. As a matti'f of fact, In^weviir, this is far from
correct. In si.xteen towns and cities of Ontario, having public waterworks, i)f<;,'
per cent, of tlieir cost is still unpaid ; :ind an examination of American city finances
shew that we are perfectly safe in estimating the debt on public waterworks as
over 1)(^ per cent, of their cost. The charges on water are usually placed liigh
pviAM.'j, to cover interest on actual delit ; as a result, the only advantage possessed
'!■'•' workT over private, in this matter of unpaid interest, is the interest on this
If y ■ it. of the cost price ; which at 5 per cent, would amount to one-half of one
nt.r en' " r annum. A sinking fund is not often provided by civic administrator.s, the
r-:l ■,)',. jairs being counted when they occur. On the other hand, however, many
citiea Avr in the habit of raising part of their revenue from a surplus water rate,t so
tliat th(f charges of pulilic works are thus higher than they need otherwise be.
• The rea<i(iii for p.\cliidiiig the Pacific States is that large irrigating projects are coailiinod witii the
water s>i])])ly i)f tnwiiH. The difTerence there is si.\ tiiiies as great as in any other group of utates, tlie eost
of public works being $02 jier family, and for private S275
t Toronto has raised $290,000 in this manner during the jiast six yearfi.
[72
at I' water
73]
29
large la nl*
or what it
works per
an public.
rt'ork'H per
iiorc than
cy oliarL,'e
nn' iliar^o
c, as 00111-
: they arc
)t require
led in the
iiowevcr,
the piice
•oeates of
inunici
fh) tJir'y
0111 year
d yi'ai ly
ar from
ks, n^;,'
I nances
•orlcs as
•ed ]ii<rh
insse.-^sod
on this
of ono
orH, the
many
ate, I- so
witli the
, the ('(.St
In favour of public chai'ifeH also, is Ihe <»nMt"r sum paid l)y a city for tlm water
reipiired for public purposes, « (/., strei't s|irinkliiii,' and lire supply, whern a private
com[)any supplies tho water, when ronipared with what is ])aid when the city owns its
own works, in tli(! latter case but a paltry stun is char!.;ed to <,'eneral taxation, ofton
nothing, seldom more tiian one-htlf of one per ci'iit. on cost of the works. When
obtained from a private comp.vny, tiiis water is charged for : the annuil ch.irge varying
from 1 p<-r cent. <m tlii> c ist prii'c i)f [\w works, to il per cent. ; *■ tli" usuil aiiiounfc ix'ing
aliout 2^ per cent.
'I'iie.se ailditiunal advaniaL;f> and defects of iiiuniripal waterworks, as compared
with private works, (a comparison which we are not able to institute with entire satis-
faction, partly l»ecau-ie of tlie defective way in which civii- de[)artmental accounts are
roiKioreil, and |),u'tly t'rnm 1 li'' al).sonco of collected statistics), might probal)Iy be .set oil'
a,i.;ainst one another. If sn, the tnsmendous advant.ige of pulilic over private ownership
of waterworks, regarding their cost and I he prices ■•harged is tnddent from th(> ligures
just given.
If the chari^e.s of public waterwoi'ks iijre tie' same proportion to those of private
comp.mies, as their cost bears to the t'ost of private works, tiie cities and towns of the
United St.ites might on the aver.ige put liy o per cent, of tiio cost of their worka
annually as a surplus or sinking fund, those of Ontario, 1 1 per cent., and lliosi- of (.lanada,
2.') per cent,t over .and above any provision that they now make. The adv.antages of
public ownersliip are nnioh mort; appar<nt in large citiiis than in small. The in.ijority of
AiiH.-rii'an citi'S, li;i\inga population of more than 10,000, own their ()'.vn witerworks. [ii
Great Hritain al.-o tlie large cities ad(jpt the siiiie policy, parciiularly those where a
reform in municipal government lias recently beon htl'coti'd, '■.(/., [Jirminghim, Glasgow
anil Liverpool. From an early recOL;:iilion of the intimati! relation ix-tween the
general I'evilopment of a city and its water supply, these cities liave usually applied any
surplus arising from its management to a further reduction in the price. The Public
He.ilth Act (Imii. Stat., 187.")) p.-rmiis local authorities to provide a water supply, if
they have none ; or, if tlio supply is inudcipiate, they may undertake the construction of
works by obtaining the consent of the Board of Ti.ide.
<i<i.-'. — According to returns gi\-en in an Ivnglish Parliamentary i'liper, there were,
in 18S9, in the Ihiiled Ivicigdom, lOo gas works owned liy private companies, operating
with a capital of £38.000,000, and 17.'> owned l)y municipalities, wn'th t;L'l,i;i)0,()i)().
The average production, in culiic feet, of gas was, for tho private works about 1 17 mil-
lions, for the public 171.', milhoiH, or one-tiMith more,—/.';, pulilic works an^ larger th.iii
firivate. From each ton of coal used the private companies get 10, "J 12 cubic feet of gis,
wliile the public works get 'J,U7-"'). This ditFerfUico may arise from tie- ditfcrent grades of
co.ii used, or from the dilferiut procivsses used in extr.icting the gis. A [)r.)cess which
e.vtracts morn gas from coal leiviis tin' rt\sidua!s loss vabialile for the purposes to which
thoy are now'applied, ''.ij., tlie production of dyes, ammoni;i, (-tc. ; and it is a ipiestion how
far tlu! baking process sLould be carrie I in order to giv(! the best linancial results. Tlicf
dili'erence in policy [)ui'sued in this respect seems to hive iicen (h'cide 1 upon some y(?ars ago;
as the average since 1881 lias been for piivati' .vorks 10,2:i.") cubic feet of gvs, per ton of
coal, rtnd for public works 9,98") cubic fe.t. .V maticr of nuicli more im|)ortance, as
showing the comparative elil(;iency of iciblic and jiriv.ae managi'Uicnl., is the amount of
gas actually consumed, as compared with that made, the diirerence repr.isentiiig the leik-
ago that occurs. Tho private companies delivered 92!L per Cfuit. of the amount male, the
public 91^ per cent., tho private companies having the advantage of aljoiit 3 .'iths of one
per cent, in tht^ etllciency of their systems in preventing lo.ss of gas. IJoth private and
public are gaining in this particular, as the average for the last 8 yevrs has been 91.92
per cent., and 91.08 per cent, respectively, or a gain on the part of the private coinpmie.s
of \ of one per cent., and on the pulilic .', of one per cent. The pulilic works are tiius
coming up to the private in this respect.
* The latter is the oharf^e in Brantfunl. Ontario.
t Calculated from the figures |/iven in tiie " Maiuial
before referred ti'
30
174
( ■>
TliiH greater loss tlirou<^'li liiakiigf (^xptiricnced in tli« piililic gas works iiuiy neces-
sarily atcoiiiiiany a division of tins supply aiiioiig a greater nunilx-r of coji.suineis. and tlif;
incrt'ascd numlier of litlin^s rcmUri'd nfccssary l>y sucli ininuti' snlxlivision. Tlu' a\('iiii,'o
nunilii^r of consiinicrs on piivati- wocks is *2,7f>7 ; tin' iivi'i'm^i- niimlit r of con.sunH'rs on
public works is (),() Hi ; so tliat the avfiat,'i' amount uskI liy ciic-h custoin»M' on pri\ati'
works is r>2,S0(t (MiliiL' I'cct, wliilc Llie asiraL;c amount used liy each customer on public
woiks is 21 J) W) ciiliii: feet. With the saini' sized tamilies, etc., the puliiic woi'lcs will
rei|uir(i almost twice as many .-ervices as the private. The pul)lic works seem to lie
adniinistereit as eilectivt.'ly a.s they would lie if tlioy wfue under private management,
judj,'inL; liy thesis results, l-'uitlier, the puldic provision of gas has had the ell'ci't of uudx-
ing its use in small (|Uantities muili more general tlian where private companies fnovide
the supply. lv<coL;nising the importance in city life of this e.\tt nsion of the u.se of gas,
iJirmingham is completing a system hy whiih it can lie delivered in as small quantities as
one penny wortli ai a tniie.*
Tlie cost of privatt? works was alxait L'MU,UO() each. L'iil>lic works each cost lialf as
much again, while, as we have seen, dividing oue-tenih more gas among twice ns m.iny
people. Whether this gritater cost of the municijial works was necessary under ilu cii-
cunistaiiceH is a (picstion for experts,
'i'lie puliiic works, in addition to covering,' expense.s and ( si.ahlisliing a fund of I! per
cent, to T) }h r cent, per annum to jiay the inler< st on loans, annuities, sinking fund.eic,
hasc poured into the civic tiea.siiries in eight years the sum of .l'j,."i.")(t,0(lO, t-<v sexeiiiecn
and three-ijuarter millions of iloliars, as a surplus, whiih has gone to tlie lessening ot the
burden of general taxation iii iheir resjK'ctive cities. But the prico of gas in municipal-
ities prf)viding thi ir' own supj'ly is iieci's.'^arily enhanced by this method of raising money,
which is virtually a tax on coal.
Notwithstanding the incieaso in the price of gas supplied i.iy the municipalities in
order to obtain this siiriilus. and also the l;u:t that in many plaees the iuithovities provide
the public lighting free, the price of ga.-; from the public und'riakings is less than that
charged by the companies, as the foUowitig rciturus tor the years iiientieued show : —
AL'trayej rrceipls jirr //luuxand mhir jut nf
.-u/</.
Companies
Local authorities
5.
■ 1
l.ss'.t
ii.
:.\2
LSS.S
7.','
iss;
,s, (1.
;i <J>2
',
:'..ti7
• >
■■•,A2
;i .-J.:'.!
Companies' overcharge. .. . .■i.7."> 1.78 .'», 18
If tlie expenses of municijialities in managing their works are less than those of
companies, it navy lie a valiil (ixcuse lor the latter to charge more. L(;t us then compare
expenses ; — ■
Exjienses jier t/iuamnul cuhic It-et of (/as.
issu
.y. 'i'.
Companies 2 G.7 1
Local authorities 2 l. 1
isss
-/.
2 o.ti.")
•-' :},11
18S7
2 G.G8
2 .•;.(i7
L'.fil
1 J.L'.-.
11. 'J 8
3.01
«. d.
1 L81
11. G7
Companies' over-expen.se . , 1^.31
Coinpanifs' j)rolits ] 0.G8
Authorities' do 11.127
Froin their profits, companies paid average dividends of £8 lis. 0;jd., per £100,
During the previous year they paid £8 10s. ll^d.
* Journal ofQas Li'/htinff, Dec. 9tii, 18'JO.
tLowest price of private ga« was Is. !)d. at Plyuiouth, where a dividend of 12:^ per cent, was also made
" " public " In. lOd, at Leeds, " surplus of 1791)
Highest " private " 7s. (id,, and of public Cs, 3d, per 1000 cubic feet.
cent.
in;
srale
.Mel.
prop
hlV^^
wlin
worl
then'
(tc,
and
1821.
17-1.
V iicces-
, and llif;
• avL'iiitjf'
uuu'is on
I jirivati'
)n pulilio
[)rl<s will
•ni tl) lie
ugcuicnt,
t of nuilv-
s })iovi(l<'
sc of JillS,
ntuii's iih
St iiait' lis
as ni.my
■r tin tii-
of 1 .'. per
und. lU'.,
i('\ enici'U
nif of the
>in\i(.'i}al-
ly iiioiu y,
laiitii'S iu
s iiroviil(!
puui that
V
those of
jonipare
r £100,
Isio made
;
lOU companies paid lOp'Tiv nt. divi. lends ; and til nmipunii s paid 10|- 17H pc
cent.-'', the liijilifT dividend usually accompany in,:; a lower price, according to tlie " slid
ing scal(f " |pl;in, to hi- Hul)se(|uently deserii)ed. The lli^dlest p 'rcentai^es under a sliding
scale were Ki per cent. Ijy the Harrow^Mte Company, and I I ] per cent, liy tiie Soulli
Metropolitan <'onip;iny.
In \'2 citi's til" pulilie i,'as works yi"lded a surplus of L'J'.M),()(i(), In Mniiclie.'-ier it is
pinposed to turn the Iai;i,'i' ijas sufol IS over t . th" water woi'ks cnnimiit^e lo meet out-
luyn hy that d(.'p.irtment, In view of th? t'a 'fc tli u- there are ."iO,UUU pei'ple in Manchester
wliudo not use j^'as. while everyone u^cs water, it seems a peeiiliar way to jiay for vater-
woik.s. The j^as cousune'r.-, may, howjser, coiisol" tIii'msei\e-< with tiie know li ilf.;e that
their munici])al '.^as w.irks an- u) h- put on a thorou;.di husine.ss Kasis r<'uiirdinn exjn ns(s,
I te., so that they svill know exactly how ruuoh tiieir special tax is.
Of I'j ICn^'lisli city companies the iucim^c charj,'e for gas is o'JJ, c, i.ts per ihoo.-and.
i:(l the cost of inaiiu'^actmin'' is estimated to he
cents.
In America, of 1. 000 gas iiiidertakin^'s, only live are uiuh r muni'ijuil control.
t)f (i.s.'S gas coiiipnnies in the IJni'ed .States, tlie chiru'e per ihou^.ind ^u'lic feet was
Icjllows : — i-
7 coiii[)atU'
■s charge
>!1.00
:]-2
companies
..harge
8i.-"0
04
t.
•'?1.7i3
11 s
ti
( .
8-' 00
57
(1
.'?2.2r)
11:.
u
(.
SL'.oU
20 "
<(
si.'.75
NO
u
u
ir.'l.OO
26
ki
^a.fiO
r.)
it
•'
Sl.l.M)
1 1^1' onipanies charge intei'veiiing prices.
It is evident ihat tliC cost of gas, 1> -Ing larg.'ly dependent upon local c,!ii(liii..ns. must
\ aiy grciily in dillerent localities. Is it not, then, somewii.it remark, ihle that ^(> many
cniiipauics ;.h(juld liave such gra^el'iiUy symm trical prices I Probahly "roMiid luimliers'
are set foi' ease in (! vleul ilioii, irrespective of rliH price of i)roductiou ; and, as companies
ar-i not prone to sell at a losing price, eustouiers must wait for a revluction till jiroduction
price is clearly h.^low the nexr lower " n )tch '' of L'.5 or .")0 cents per ihousand.
According lo the llejiort for 1><S9 of the, biard of ( ois and lllecliic Light Commis-
sioners of jM.assachusetts, ; the co^t in that State, of making coal gas is 40 — 57 cents per
thousand cuhic feet, and of water gas, IG — 5") cents, representing the cost in the holder
in each case. An increase of oO cents per ton in coal, or of one cent per gallon in oil,
makes an increase! (j1 ten per cent, in tlie cost of coal gas and water gas, respectiM'ly.
In Massachusetts, the a\erage; piice charged in IW!^!; was cl.7J ; in 1S,S7, .^l.CG :
in
18!^8, .irl.."iG ; and in ife8'J, Sl-li';; per thousand, showing a grailual decrease.
During lb89—
'20'.) million cubic feet were sold at 81.00 per thousand.
20;j
ii
u
u
l,or.i
u
:^G7
11
231
1.
220
1.10
!.•_'.-.
1.30
1.50
1.75
2.00
During the year, .fune liS88-8'.i, tliese companies accounted for 01.05 per cent, of the
gas made ; the leakage being thus very nearly the same as with tln^ English coiejianits
and municipalities before referred to,
The company in Newburyport charged an avcragi* price of SI. 98 per thousand, pay-
ing stockholders a dividend of 18 per cent, on their invested capital ; although to do so
meant an increase of 61.45 per thousand over production price.
1821.
*The latter percentage was paid by tlie Cmiipany at Kingston-upoii-Avon, operating under the Act of
1.
t C. W. Baker : Monoixilicx and the People, p. G4.
X Fifth Annual licpurt. Public Document No. 35. Boston. 1890.
§ In 1880, eleven companieB paid no dividendi*, and seven paid from BurpluB of previous years.
[7'-'
In I'ittsliclJ, till- iMiiipiiiy LjriiL'ioiisly Imvcrcl tln' prioc from -"rlli'.' lo .^l.'.tti. Tht-y
still iiiiido a prolit of lU |mt oi'iit.. ; to olttain which thi'y i;hari,'t'il "S n-iiis moir tiiiiii ihi-
proiltu't.ion price
In Taunton, ihi' ill II I'holilcrs, ia ordci' to Ljivi- tlii-ni-si'lvis I .') |nr (cut. ijividciicl •,
chiir;;p ^l.r)-J ; which i.s M cents above cost of production.
Tho Adams Co. cliari^e .?lJ. .'}'.) \\>r thousainl. when tiny mi:,'lit charier <'>'2\ oi'Uts l>s^,
did tlx'v net p.iy a}ciuiy dividend <>{' 20 percent.
I'he taxes paid Ity ilie rompiinies in ihe .Stato aniounted in | ss'.) to >'L'0'.(,."}00, m
avcra,!^!' of IVGS cents per ihonsaiid cutdc feet sold. Tlds was an iiic)<a.s(^ over the
pr<'\iiius \e,ir of aliiiui •^;'>, 0(111, wildcat the same I line n .c.is a decrease <it' one ci nt per
thousand feet sold.
'riie se\eral conip'tides increiised ilieir m t eainines fmm •- 1, llti"<,<iOi) in lSt<S, to
.*l.>'il.'ri,l)iin in IS.^K. Ait( r }layill^' divi.Ieuds of .-'.Hi, 100 in h'^SS, and .-•l,U'Jl,.'^O0 in
1 ■^S'J, tlicTi- w.is left a net .-urpins of •-:.'> 1 7,0(iU in IS.^S, and .s(;(.);i,.')0() in h^S'l. Some
of the -uins tiiat ]ieijiiitled ihis were — an iiK'iease <)!' !?i^.'J,000 in the L;as sold,
tho net CO, t of cod anil residuals j- remalnin^ almut the sam(^ ; the receipt f)f ■<'>\,i)t)0 for
electee- liL;hiinu;, in place of .•>-_'.5,OU0 the p'levious year ; a reilue'ion "i' •■::'10,OIMJ inullictrs'
salaries, iir20,00(t in \\a„'esof nn tertakers, cullccturs, etc., ami .■-^l I,OUO in wa^es at works.
'Phis 1,'reat reduction in wai;t:s marks a fuilher dilleien i- l>et\vien the systems jmr
sued liy pulilic Mild liy pri\a*e ni inayei-s. In puiilii; woiks, !ii'.dier wa^'cs are u.-.uaily piid
tlmn in private, fur the rou;:her kiml.s ol' work. In smie ciiie>, a mininiuni wa^e per dny
is li.Ncd l>y iheOonncil, -.y , in Ohica„'o a Ky law e.\i.sts, makirii; e'"J per day tho hast wajrc
to he p.iid I'V the li^jhting coniniihsiouer.s. ( 'omp.mies, of cfurso, get as cheap lahor as
chey can.
A 1 omparison lias Ikmii instituted lulween the Unston < las C!omp.uiy's w>prks iiiiil tlie
Mtiniciiial (ias wr.rks of Philadelphia, which is net supposed lo md in confusion for the
latter.
The output of I'liiladelpliia was 1', 1 7^ mil lien feet m l.^.'^O. and :5, l.")0 million leet in
18."-*'.)— an iiKii ase (f l.'t per c( nt. The output of lio.stf.n was 712.', nalliou fe(;t in 18M),
and I,;H'J ndllion feet in 1SS9 — an im rea.se of 8.").', percent.
Each char<j;ed A2, m 1S80 ; in 1S,'S'.) Philadelphia (d,ar:^ed -^l.-M) and IJo.ston ■<\.:M).
Philadelphia providtd //'"^ i/n--- /or jik//'ic /uir/nitii .s ; which, if paid for, would liave
amounted to -H^.c. far thous.md on all the^as made in IS.^'J, and to 'Jdjc. in 181)0. The
f<7(r]'/us that the works <'aiiied f(jr the city amoiuiteil in 1>*^8'.) to ■'ir8U7,0<.>0, or 'Jo.ic. p* r
thousand feet sold ; and in 18'.)0 ii was •'?89;5,O00, nr 27c. ]i< i- thousand.
Thus the JMuidcipal works charecd ol j,c. in 18.^9 iind in 1N90 oiie. per thousand iiiori'
than cn.st price ; which w.js theretore i)8\c. in IS89 and in 18'.iO ahout !)7c. per thou-
sand culiic fi 1 1. If they had to a-Ul tvi this a tax of Gc. per thousand (the amount paid hy
the Hobtoii Company), the public svorks of Philadelphia would still have been abh; to sell
gas at 81. 05 in 1^-89, and •■:'1.03 in 1890. 'Ihe ilill'trence between this and the
pric(! they actually charge, is so much gain to the city tieasuiy.
.lu Boston the company paid its shareholders dividends during 1889 of •■~'267,8t)0, and
wrote oil' a constniction charge of 81 1 l,O()0.:j: These items together are over 28c. per
thonsantl on the gas they made during the year, it would s(;eni therefore that the iJoston
Company could afford to reduce the price to the neighborhood ot .-'1.00 per thousand.
The dilb reni'o between this atid the price charged goes into the pockets of the shave-
holders instead of into the municipal coU'ers as in Philadelphia.
What the advocates of private ownership must prove is not that private management
is more econondcal than iiublic, so far as the cost price of gas is concerned, although even
*'l'lii'rp was an iiicrciiit' uf .sl2",000 in the amount of gas sold tn private [larticH, but a decrea.se of SAi,
000 in the anum.nt ef ga-i sold for |iuulic hmqis.
t Kesiduals left from the gas making were sold for '( the cost of the c i<il, etc., used in 1S.S8 ; and in
1889, they were sold for 'M per cent, of tiie cost.
X Fifth Annu'il Itei«'rt of (Jasand Electric Light Board for Massachu.setts \t. 122.
[7>>
',c. per
ihi.H mciiia no* cliarly iirnvon. Tliny must show tlmt tho sorvioc n-inliTi'il to the orilinury
citi/cii is iiH cliiMi" iiy tlir nw iiH'tli'iil ,i.s ilic Dtlicr. Wln'ii tlif I'liiliulrljilnu ri»i/cii |>;iy.s
■■^l.'tU liir a thoiisatnl fo t uf ;,'iik Ik- jxiys AOc. of it an h tax wliiuh iiiaktH liis iitli<r lixrs
iha( iiiiii'li less ; l)ut when (lie I'lctHtnii mini |iays .SI..'!!) his othff taxt-Mair not <ii in a.id al
all, '■\('i|it pt I'h.ipH to the ( xtMif of Uic ()c. just iiu'iitiiin il. 'I li" n >iilt i.s tliat the laitrr
icaHy pays for iiis u.is ,'?1.'J| whiTt' the toriiicr I'nys ."^ IJ.l-"*. It is ii|h' to ciiiiiii that thti
I'.if. (lill'c. »«iu'( is due to ore ittnost in BMston, in xifw of tiif liahiiici'S ■tlinwii \i\ ihitoni
}'<iiy. It iH»<|iialiy un^atisfnitory tocxiiiain it I'y the <,'n'aN'r fllii'i'iicy of ihi- luinpany's
><Mvaiits, wht'ii we oliscrv*' ilic rc^uhs of I'ritish »'xpfiiriiii' in -jus fttui AnHfican i'\|icri-
iiii'c m \vat<'iworks previously i|iioti'(l. If the (•har.,'e of the private ooiiipauy wcie lnii ii
f<'W I Ill's more tlian that of fhe iniinicipality, an<l soine system of keepini,' if ai that point
coiilil lie rjevisi'd, it woujd sei ni mnie aihaiila^eais that the wli.ije matter shoulij he re-
mo\tvi from the sphei'e ol i leal poiitics. It ciri ii<ser lie wholly iemn\i'il, howevi r, lor
tho diarter must Ik* renewefj peiioiliealiy, ami tie' ioii.'ir tin- p' riods that ehipso, the neire
can till' conipiMiy .-ilTord to spend in Hecurijii,' the letiiin of its suppnitiT> in the parti<ular
yeai' w hiti the eii.irti I' falls ill, althoii-h a h 11,1,'thened al'see.ee from the politiral arena
must make Huch an oliini nK^re diHiinilt to ao'ompli>iii.
In the French oapird, til'- <,'a8 company in I^J-'i") ^jot a charter lor '>0 years, which
lixed the |)rice of i;as at a ceitaiii [)oiiif, Tlie iiii|ir.)seiiients in m:inufactuiirn,'soon i.'i iMtly
lowered th(* cost of production upon whi'Ii the old price was hised; and chnini,' ihe
troul'li'sof 1.S70, the shanholdrrs were oMii^e.l to recast the a:;reement so as to divido
with the city all prttils ahove I l,(JOO,(iO(J francs per year. Commercial causes have a;,'ain
cheap'iHul yas, and theiomjiany now otters to lower i.\w juice of ^'as hy one-sixth, and to
nt'ce)it a lower annual piotit,on comlition that the concession is iciiewed to them for forty
years, and that they may employ if they choose, electric lij,dit. Tiic olijeit ion t* this pian
is that it would involve the retention for forty years of tlie price now fixed.
A lielter system is tliat known as the slidiuLj sc;de,* I>y which tlie pereeiiiai,'e profits
of tht> shareholders mav increase, hut 'Mily in proprirtion a> the price is li/wered. It thus
hecoines the interest of the com|):iny to .snjiplv the gas at tho !ow( st po-^silile rate.
In this siiiiph' form it h;is oeen adopted liy tlie I'riti-h I'nili im"iit in fixing' the
charters of ciiny companies ; the usual arram^ement lieintj that, for oacli ri' Inetion of one
penny perthonsand feet of i;as, tin* company may inireise its dividends one (piart(;r of
one per cent over a certain stated dividend. Iiy lliis moans tin- averai;** price of i,'(,s in
London wlii'di was^l.OS per thous.ind was lowered to fUc. in ISS"'. Of course the dilH
culty in carryini,' out such a scheme lies in tho necessity of obtaiiuni^ accurate statistics
from thecomp.uiy, with whom tliere is always a tendency to over-cajiitalization. Some
advorato n\unieipal arrani;ement as a refuge from this dilliculty : hut tin- liiatd of Ti'adi?
returns which are given in (Jrcat Dritain, seem to possess tolerahle ai'cnr:icy.
In Massachusetts a different method is pursued. The Act of the Li'gislalure, es-
tahlishing the Hoard of Gas (.'ommissioners (Act.s of ISS.i, ch, ."1 1 I, s. !)), jirovided that
" upon the complaint, in writing of a mayor of a city in which a i.,'as company is located,
or of twenty custonurs of such company, either of the (juaiity or [)rice of the gas sold
■ ind delivered by such company, the lioard shall notify the cnmjiany of such complaint,
and shall, after notice, give a puiilic hearing to such jietitioner -md such company, and
after .said hearing, may order, if they deem just and proper, any reduction in the prico
of gas or improvement in (piality thereof." , Their decision is final, unless specially
re\('rsed by the .State Legislature. Tlvse wonderfully wide powers seem to have been
exercised with moderation; and while apparently giving general .satisfaction, have
.settled many difHcult tjuostions that have arisen sini'c the organization of the commission
in LS8.5.
The commission consists of thi'ee members appointed for three years by the State
(Jovernor, subject to approval by the Council. The returns recpiired annually from
A sliding scale of jirices depeudeiit (!i the price ( f (c»l WHS ntiii t( rl 1 y d rgn h-* in i's ngriinifnt
witli the ^\■a'hillK'tlH| gn-^ cemnaiiv : i,iit tfie culiiv>any teen ud'u.td its \ liii s tn ;i << ieii!f'i;ili'y
than tlmt called for,
3 (Ji.)
liitc
.'U
r7s
onch fOiii|iiiny imliuli' tlx- luununt of its ntitln'riz-"! <;!Hiitivl. iiM iti'li'l't<'<lni"<8ftii'l fiimii. iiil
(■ntiilitif'ii nil .liiii Isf, iiikI m Hhitcinriit nf iin itn'onif iiiul rxjx ihi m iliiriiii; 'Ip |iii'cciliii;.'
V<'(ir, »f)t;('lli« r \v lili it-. ili» idi'inls, |h.ii| or clnl in d. it ml ii I isf CMMhiiiiiii'^' tin- iiaiii.'-> of all
•tH Kiiliiiicd oIlIciTH Willi till' i\iiiMi:kt hiiliiiy piil to cinli ; tin- rrtiirii tn In- sit;ii(>(l and
Hworii to hy tlir pr< Hiilciit uiid inasiirtT if i-.k li roMipJtiiv, mid n iniijorit y of its dimetors/'
In Oiitatio, fill' II< \ iKid Stfitnics (li^^Ti, rli. It'i-I), jirnvidi' tlmt any the or niorf
prTsons may form ii CMimmiiy for sniijdviiiy yah, wafer, cr liofli. fo any tiiiiiii(i|ialitv liy
o) taiiiinu' llx' innscnf <it' fhi' iiiiiiii<'i|ii| coiinril. 'V\u' iiiuiiiripal iiiitlioiifii .s iii.iy l.iko
Hl(i(k in Mii'li roiiipiiny, tliiis ocelli iM;U' fpri'scntaf ion on '.li'' lloiird of I Uri'ilors. aii im
poitnjit provision for flu' «iift' yiiiirdii'!,' of city intii<Hfn. Tin pciind set as flm outside
limit, of flic ( oii']i!!iiy's fxi-ii'iifc is ,'(» yi ats, and tin inMiiii ipal aiillimitii's mav nf. aiiv linm
aciiiiiic llic Works of anv rompany iiirorjiorateil at!ir .M.inli, l^S-J, l.y payii'.; siii li com
piny ill'- ailmil vnluc llicicof as diti iiniiiiMl liy Mrhitratifm. " iiaviiii.' r<j,'ard to what tlni
siiiiH' would cf'st if tlif WMikN slioiild tlun In- foUKtrm t'd, or flu propi ity flicn lionyjit,
n;akiii^' dill' alKn'. ain'i' fi'f ditiriot.it lop, \vi ar and tiar, a'd makiu',' all oihrr proper
all< »'. iiiiees. and sliall iiiiTnue i|ie anioiitil so aseerlaiiied liv lu per centum tlitrciif, wiiii;li
iiieiiaMil sum liic ai liiimtois sli ill award to the eompuiy."
Klirli'if fji/litiili/. 'I liere lirr alioilt l.:>'i() elretrie li;.dii iuLj plaiifs ill Aim rii'a, of
wliieli at, leiisf ."() ;ire owmd liy mimic-ipil aiitlioiitie-> In wpito, liowovnr, of flm
aliundant diser, •^ioi; in it ici t yearn as to flic relative nc rits; ( f muiiieijial and private
iiiiinjij,'emeiit, the </"/.' wjih wliieli we are presciit< d fur die piirjiose of formiiiif an opinion
ani less .-atisfaetf.ry ilim in ."iiy of ilie othi f iudiiMii' s we aie now eonsidei in^ Thti
refnns oi" cost, etc, si dom t:'ke accoi.iit ol jiiterisi on momy invesfid in the plant, ur
mention any ;ip[)i'"pi i;iiion for di terioratiui in viliie. or for tin* purpD-'i-s ol' a sinkin"
I'und : y t t'l muke ;ii \ m-eful (oiii|Mrisoii, ilii-e niM^t lie esfimated. In ( 'liinifjo, the
( leilrie lillits wiiess.id to eost .';;7;'> ein h. pel' yiar. lairiins,' every iii^hl ail the nii^ht
thronnh. At an Kleifrii! I.i.yht t'oiiMniioii, the Mi|'erinletic!eiif of the ejty works was
chai'. ( d w ith 111 t i\ iiiu a' these us: lis ly ' iie'j'' <.'iin<.' Itt>;''>'i vv ait r n ni . iiiti ii sr on invest-
ment, insiiiiime. repiiirs, di pni iatiou or leie v^al of phini in il'i neial, and liy ch ir:;iiig
the \viij.es of the ilcilrie liLilii linem n ui ih'- lire alarm ti le;.'ritp|i (lrp;ir' meiit," |t, w'us
aiymd thiit. it these w.re piojieily (iieonntid j'ov, the I'li'^r would he sllMJ.I).'} per year per
lamji. 'I lie niperintei,ilent , iIiohlIi 1 res' nt, iiad too Hcvire a loM to lej'ly. Ir, answer
to tiie v\ liters apiilii atinn for inforimitieii, one nunirh later he v/ 1 , " pre[)HtinLt a reply ; "
hnt hiilf ayiar atterwaids. when another (nijuiiy wtis made, he " re^jri tted limt th<i mayor
had forliiddeii tlie heads of depurt-ments frwii ^ivin;,' sl,ili->tic-. re^ardiiiij municipal niat-
tfMS, except what is oiveii in tin' annual reports. " Many other places seetnei I to ha, ve
auiveil at ahonl the same de:,'ii r of neciiracy.
Where iJLihiiiii,' plant can he snpplitd with power rrnm works already owned !)y the
city, as in N'|isi(anti, Mirhi:,':in, wlieie they are inaiiayed in ivMHi" tlou with ilii'i;it\' water
works, evidently tiny can li" run more econoniically than would he pnHsil.le in a separate
estiiMisI n eiit. .)mli;inu' hy the rdurns of the Miissacliu.-eils (las and I'.lectric Liidit
Uommissioin rs, ihe busiiuss in that .stute is not e.xci ( din^^ly lucrative. [''ourteiMi com
panics in tlie ^tafe paid dividinds iv(ia;;ii:i( a.liont live^ui cent , and only twenryoiie
cf ii'puni* s out ( f sixlv piid any dividi i,ds at all. 'I hen- aie no mnnicipid ]>lantn in .Mass-
achusetts,! so that if is not pc.ssihU^ to insti'utea cemj'M'i.ci;. Indeid ;he whole (;lec'rii
light husiiie's has hirhcrto hi i n o<'Vi lopii.y so tiipidiy, with ever ciiangin;^ conditions, that
scHicily any of fh(t estimates of cost in the past aie of use for the tuture. '{"he air is
already cli aiinj;;, liowever ; and it will jiot he lonix h<forH nioio udeiiuate in;itiiial wiji
1h> alioid'd. In the mraniiine. niunicipalilics should avoid any action that would tie tlieir
hands for the future.
* A stiitcini r.t of the fnriii in vvliirli tiic iiifiniiiiition is rerniirt-d front ( ia.^* Coiiipariios lu.-iy lie f' unci at
the (test' 111 till' .Annual Hi |niit el' .Ian. lSs7. anil frnni I'^lce-triu l/i^ht Conn>anie.s in tlie irmut of 18S'J.
t An Act to iMMiiiit citii < and t(i\Mi> tu |in)viile tlicir ffns or jlcctiic light 1ms ii].('at(illy lnoii breuffht
before the State l.i>,'i.-latiiii , and will [irnlLdily ]ii
r or later. It piovides that if Ivvoiljirds of the
city Couruil for two -ncci i dug ytars. the intivor ti r I wu yt ai>, and a pnlilic ineeting of citizens favor sucli
action, that hoiuis may lit' i>,-.ui d for not more than 20 jears, and to the extent of not more than 5 \>vr cent
of the ratable proDerty d the town,
70]
Til drpiit I'iritftih, tin- KIcctrir liiRlitina; Act of IHH'i, (45 fi |('. Vict, c '>!]). provide
tliat t\v' llonrtl iif Tnido mny lioonw lociil iiMthoiitit'* or privato I'Dinpiiiios, with the con
Mcnt (if tlic liiciil autlioritic-t, (mid without it, if UMrfft-toi\iil)lt' opposition ih nlVtrcd), to
provide electric Ii;,'lit, lint it ciiimot conlcr i\n cxclimivc ri^'lit, hh the district nmy In- anuin
;,'riinted to another. 'I"h(> uinh'rtakcrH of tlie enterprise nniHt annnrilly pnhiihh Huch
ii'tuiiiH as the Hoard of Trade calh for. S<'c. '27 provides that the local authorities may
r< (piiri^ ft private company to ^cll the plant, etc, at its market value, '• Iml without any
addition in respect of compulsory purcliase, or of yood will, or of any prolits which may
or ndyht have Keen or he made from the undertaking;.' Such re(pii-,ition to sell lan
lie enforced only at the end ol forty two years from the >,'raiitin;,' of the company's
charter, and at the end of every suhseipient period of ten years,* unless shorter periodH
ate specilii'd in tlwi charter. 'I'he value is determinid liy arhitralion. .S(.cs. \'.\ and 1 I ;,'ive
hical authorities a veto on the strin^'in;,' of wires, hreakin;; up of streets, etc,, Kuhject to
an appeal to the Board of Trade. I'rivate initiative has had the tiehl almost to itself
rluriii;; the two years since th»< recent amendmt nts, and it is sii^nilicant that <hirini,' ISOO
not one municipal plant was started, t
Strpit Cars. — In Great Hritaiii, out of 'M municipalities which own their stre»^t cars —
with a (juarler of the total niileaj,'e in the kintfdoni- '2;< ailminisler their nwn proju-rty.
Where the rnad has lieeii leased to a coiupaiiy, the city in ;,Mantiiit,' its charter has us'ially
paid more attention to the olitainiiii^ of an eir''Ctive service than to ;,'reat (inaiiciul ^-iiin.
In (ilas^ow, the city huilt the road in 1S7'2, and leasf^d it fnr twenty two years to a com-
pany on condition of payini; interest on tin; city's investment, cstaMishin^,' a sinkiiii,' lund
sullicient to pay the exp»'nse of Imildini,' liy 1.S04, and the payment of 1 periint. of income
to keep tiacks in repair, toj,'eth(r with a rent of L'TfiO per mile of street in (he centre of
the city. Kor new lines in the more sparsely settled outskirts, much le»s is paid. Since
\>''^0 the comnany lias done well. The char},'es were to he not more than one penny per
mil'-, and some runs ol' much more than a mile used hy htliouriiii,' men and arti/ans were
r»'.-*o to he a penny. iMorning and evening cars tor workmen run for ahoul one cent p(!r
tnile.t
In l*irminL;hani, " the city huilds the street railways in order to keep control of its
streets.".^ In Liverpool, the company leasint; the track ])ays uliout 1(1 per ctMit. ot its
cd^c as a rental. In all these cities the tracks are laid and kept in repair i)i/ f/if corpo
riilinii,, !Uid of all may justly lie said as the city en<,'ineer of liiverpoo! reports of his city.
'• The tramways do not I'orm the slii^hlest impediment lo irallic, even to the narrowest
wheeled veiiicles." The ditl'ereiice litstween their cities and ours in this respect is very
strikini,', and the attention of American municipal and street railway authorities is
respectfully directed for the niillionth time to the sultject.
In America, tliere are no street railways operated hy local authorities. In Toronto,
in IS'il, a franihise was granted to a company for thirty years, at the end of which
lime the city could assume the propeity on payment of its valu(! to lie determined liy
ailiitration. The city decidid to take over the' road in ISfJO ; hut while the future
action of the city has not hcen detinitely settled, the franchise will pr.jliaiily lie ai,'ain
leased for a percentaf;;e of the (y?Y,.i.v receipts. This is the hest form of hMse ; and is
lieconiing more and more general in its adoption hy American cities. In iH.St the New
Voik Legislature pa.-sed an Act /x'rinilfiiii/ such compensation if the fraiuhise was sold
liy auction. In the city of New York the aldermen knew how to di.sjiose of the l!road-
wiiy franchise in a lietter way, and tlie restlt was that the city got nothing. Tliis led
to the passage of a State Act (Laws of 188G, Cap. (if) |!) making it cotn/i/i/soj-// that the
.■>alo of any street railway franchise should he "at public auction to the bidder who will
*In the Act of 1882, the period of taking over was at the end of 21 years, and every snbsp(]iient 7 yearn.
Tliin Hi-eiiis t'l liiive been conHidercd tmi stliort, and liy an Act of 18S8, the periods were chiiii^ed to tliuHe
^'iven in the text.
t Journal of das Li(;htin(j,'Dec. 30th, 18'.)0.
X (•'his:/""; " Municipal Stwhj ; Albert Shaw, in The Caitury ATnguzinc, March, 18!K».
§ Julian Kaliili, in Harper' h, June, 18!)0.
' With amending Acts of 1886, ch. «i42, and of 1889, ch. 664.
36
[80
agree to give tlie largest pproentiigo per animni of tlio gross receipts," aiifl " tlio said
V)i(l<]er, Avlio may btiild and opcriilf tl](> loail, sliall k(.'('|i a:'('uratc. Imoks nf aci-ouiit of its
earnings, \vhi(.'h hooks sliall at ail (inii-s !»' siilijcut to tln! inspt'otion of tlic loci.l autliuri-
ties." Umlpr tlu'so provisions,* fiaiicliises have lu'en sold for as Iiigh as '.'7 piM- oi-nt. of
the gross n'ccijits, 'J'his plan, liy which rrccipfs from the roid arr sjnead over the years
('uiing which the franchise runs, s(cins prct'cralile to tlic irKjdc adnptcd in \e\v Orleans
where a lump sum was accepted. t The great- dilUculty with tlu; " percentaLre of gross
returns system," is, of couue, the unwillingness of a company to exttnid their linrr into
suhurhan districts whei'e an extension is necessary, hut will not pay %ery wc'.l, or perhaps at
all. As has heen previously shown it is ditlicuitand unwise to jjitroduce a new ccunpany ;
and the city autlu)riti(;S are thus at th(! mercy of the compaviv in posse^-sion, which may,
hy its refusal to act;cpt reasonahli; prollts. paralyze the city's u'lV'wth. Whit can tin- city
do hut make any terms the company retiuires ? This would he as unfair as to give the
city power to compel the company to extend its lines. On the other hand, if the street
railway shareholders own proptirty in a suhurh which they are desirous to " hoom," they
may attract inhaliitants hy special rat<'s. When they have sold out their pioperties
they may withdraw the service, to the ruin of the citizens who have removed there. It
has hcen well olj.served that the fact that this has not occurred more frecjuently is an encour-
aging example of connnercial prohity. Scmie sort of government cnniiiiis-ion is evidently
necessary to regulate .such matters, as well as to exercise a general supervision over this
rapidly developing industry. It may Vie that tlie dilliculties arising from the determining
of earniiigs, the insjiection of hocks, the employment of lahonr, or the reduction of fares,
etc., may lead to an assumption hy municijialities of this iiidustry as the easiest way
out of the ditilculty.:f
81]
for moi
raunicij
Tl
place, h
Suction IV. — iS'"W/t' CuivlutiinHS.
The financial results of such comparison as wo have lje(m able to institute seem then
to indicate : —
1. That water .supply is an undertaking in which • nicipal management has heen
eminently successful, hoth in America and in I'iUroiie, and in both has yielded large
financial returns, which have hecsn used to lighten the Imrden of general taxation; hut
that there should, if possible, he a lowering of rati.- required from tin; more needy, by, if
necessary, a higher charge for such additional service.s as are practically luxuries.
2. That while the municipal direction of street railways has been attempted but sel-
dom in Euroi)e and never in America, street car service is a source whenc(! large
revenues might he derived hy great and growing cities, revenues which may be ohtaiiKid
either through the power of control rendered necessary by their puijlic oharacter, or hy their
direct operation on the part of th(> city. 'I'his latter course may he rendered necessary hy
the dilUculties in the way of the former: but in any event street railway.'^ .should not he
operated with a vi( \v to a very large surplus as this would involve a .special tax on a class
not the most able tu support it,
3. That the gas industry, where undertaken by the municipal authorities, has been as
successful as wlien in private hands, and has, in addition, provided large sums for tiie
local treasury. The tax on consumers is perhaps not more ineipiitably disirihuted than
isoidinaiy taxation, hut an attempt should he made to furnish ;i .-ertain amount of the
service cheap enough to be withiu th(! reach of all.
* Additional iirovis-ions exist proliibitinpr the .sale of a street railway franciiise in a city of more than
250,000 for 11 less yearly payment into the treivsuvy than S piT cHiit. of ttic grosn receipts for tin' first five
years after tlie eoninii iiceineiii of operation, and ."i per cent, thereafter.
f The eoiiiiiany nniintaiiiin^,' the entire jiavinj,' of the streets traversed l>y its lines, however.
:',; The rapid increase in street railway jirotits is illustrated hy the following figures for the State of
New Vorls : Net income ISS',1, 5.811 per cent., IS'.IO, li.L'l per cent, on capital stock ; dividends in T,SS!(,
4.41 per cent.. ISIIO. t.(i7 jier cent. ; surplus. IS.-ii .'S.MS.OOO, in IMIIO, .Solid.OOO : net earnings ).er |iiishenger,
1.18 cents in 188(1, in 18110, J. 27 cents ; net earningM per mile of road, 18811 $7,3111, in I8!)0, .'?8,01e. /i"ry.<)7<
of Hiiihiind (.kmminsiuhirii, Vol, 11, p, 70, 18!)0.
81]
37
■1. Thiit elcctri lightint,' is still iti too unsi'ttlfil a st:\£,'o I'or iis to lio ahlc to draw
detinito conclusioas reijardiiig it. riicn; aro iiidii-itioiis that iiiid(!r ordinary couditions
it vill pay a town bntt«r to leaso the fraiiuhi-*!, hut whero the iiulustry can readily he
joined to one already in the possession of the municipality it can often he inana'^^ed more
eeononiiually than by private enterprise.
5. That of tfilephono service so little is yet Icnowa tint thoui^h its peculiarities call
for more than th(! ordinar}- amount of public control, it would be unwise to attempt
municipal management.
The above are but ,f,'eneral ooiiclusioiis.and would, in their application t) any particular
place, be modiiied by distur'bing local c>ndilions which may 1)'.' so ditl'erent from those
that are usual as utterly to destroy their validity. No absolute rule can be laid down,
and what has been saiil is s lid only in the ho[)e of makin<; the detenuiiiation of these
problems more easy. Tha'. m'on genera! results may be helpful cannot be doubted, and
the writer regrets that the.-.i; cannot bit rendered more accurate owing to the paucity of
reliable statistics. This lack of slatis'-jcs is the result of the newn".ss of the con-
ditions involv(!d, and must c mtiniie ^'.il ihere is fuller recognition of the imp )rtanc" of
these industries. They have [lassed ihe bounds at which priv.ite attcniipts at eoUeetiug
information can be at all (.iFectuil. D. 'tailed gov3rnnuMit d returns are absolutely
necessary. '
tl
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h
\)
[H2
.TH, 16'J0.
,T^
■t. Is!)0.
" •'nllUS
«
irpiTs
sun.
of Am.
>Sr
-OU(J
0)1,
and Ti
• York
Pul.
p. I OS
11.1 (;,|.
1H87.
G, 152.
1883.