CIHM Microfiche Series (Monographs) ICI\/iH Collection de microfiches (monographies) H Canadian Institute for Hittorical IMicrorsproductiont / Inititut Canadian da microraproductions hiitoriquas 995 Technical and Bibliographic Notes / Notes technique et biDllographiques The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may significantly change tht usual method of filming are checked below. fyl Coloured covers / ' — ' Couverture de couleur D D D D D D D D D D Covers damaged / Couverture endommagee Covers restored and/or laminated / Couverture restauree et/ou pelticulee Cover title missing / Le titre de couverture manque Coloured maps / Cartes geographiques en couleur Coloured ink (i.e. other than blue or black) / Encre de couleur (i.e. autre que bleue ou noire) Coloured plates and/or illustrations / Planches et/ou illustrations en couleur Bound with other material / Relie avec d'autres documents Only edition available / Seule edition disponible Tight binding may cause shadows or distortion along interior margin / La reliure serree peul causer de I'ombre ou de la distorsion le long de la marge interieure. Blank leaves added during restorations may appear within the text. Whenever possible, these have been omitted from filming / II se peut que certaines pages blanches ajoutees lors d'une restauration apparaissent dans le texte, mais, lorsque cela etait possible, ces pages n'ont pas ete fllmees. L'Institut a microfilme le meilleur examplaire qu'il lui a ete possible de se procurer. Les details de cet exem- plaire qui sent peul-§tre uniques du point de vue bibli- ograprtique, qui peuvent modifier une image reproduite, ou qui peuvent exiger une modifications dans la meth- ode normale de filmage sont indiques ci-dessous, I I Coloured pages / Pages de couleur I i Pages damaged / Pages endommagees I j Pages restored and/or laminated / Pages reslaurees et/ou pelliculees |~7 Pages discoloured, stained or foxed / ^^^ Pages decolorees. tachetees ou piquees I I Pages detached / Pages dftachees r^ Showthrough / Transparence D Quality of print varies / Qualite inegale de I'impression I I Includes supplementary material / Comprend du materiel supplementaire I 1 Pages wholly or partially obscured by errata slips, tissues, etc., have been returned to ensure the best possible image / Les pages totalement ou partiellement obscurcies par un feuillet d'errata, une pelure. etc., ont ete filmees a nouveau de fapon a obtenir la meilleure image possible. I I Opposing pages with varying colouration or discolourations are filmed twice to ensure the best possible image / Les pages s'opposant ayant des colorations variables ou des decol- orations sont filmees deux fois afin d'obtenir la meilleur image possible. D Additional comnrtents / Commentaires supplementaires: This item is ftlmad at the reduction ratio checked below/ Ce document est filmc au t«ux de reduction indique ci-dessous. ^0« MX 18X n: 22X Th* copy film«d h«r« has b««n raproducad thanks to tha ganarosity of: National Library of Canada L'axamplaira filmt fut raproduit grlca i la gtnArosit* da: Bibliotheque nationals du Canada Tha imagas appaaring hara ara tha bast quality possibia considaring tha condition and lagibility of tha original copy and in liaaping with tha filming contract apacificationa. Las imagas suivantas ont ttt raproduitas avac la plus grand sain, compto tanu da Is condition at da la nattata da l'axamplaira filmi, at an eonformita avac las conditions du contrst da filmaga. Original copias in printad papar covars ara fllmad baginning with tha front covar and anding on tha last paga witti a printad or illuatratad impraa- sion, or tha back covar whan appropriata. All othar original copiaa ara filmad baginning on tha first paga with a printad or illustiatad impraa- sion, and anding on tha last paga with a printad or illuatratad impraaaion. Laa aiamplairas originaux dont la couvartura an papiar aat imprimia sont filmas »n commancant par la pramiar plat at an tarminant soit psr la darniAra paga qui comporta una amprainta d'Imprassion ou d'illustration, soit par ia sacond plat, salon la cas. Tous las autras axamplairas originaux sont filmAs an eommanpant par la pramitra paga qui comporta una amprainta d'imprassion ou d'illustration at an tarminant par la darnitra paga qui comporta una taila amprainta. Tha laat racordad frama on aach microflcha shall contain tha symbol — ^ (moaning "CON- TINUED"), or tha symbol y Irnaaning "END"), whichavar applias. Un das symbolaa suivants spparaitra sur la darnlAra imaga da ehaqua microficha. salon la cas: la symbols —^ signifia "A SUIVRE", la symbols V signifia "FIN". Mapa, platas, charts, stc, may ba filmad at diffarant raduction ratios. Thosa too larga to ba antiraly includad in ona axposura ara filmad baginning in tha uppar laft hand cornar, laft to right and top to bottom, as many framas as raquirad. Tha following diagrams illustrata tha mathod: Las cartaa. pianchas, tablaaux, ate, pauvant itre filmte 1 das taux da reduction diffarsnts. Lorsqua la documant ast trop grand pour atra raproduit an un saul clicha. il ast filmA i partir da I'angla supAriaur gaucha. da gaucha i droits. at da haut an bas, an pranant la nombra d'Imagas nicassaira. Las diagrammas suivants illustrant la mtthoda. 1 2 3 1 2 '^ 4 5 6 MICtOCOTY HSOLUTION TEST CHAiT lANSl ond ISC TEST CHART No 2i 10 !!■- i- ^ ^ If Ilia I.I 11^ '1.25 11.4 mil 1.6 A APPUEO \MA3E \nc "octieslBf, Utw '0'" '*C (7161 *e; - 0300 - Pno"* (■"6) ^38 ' ^969 - ""o 7j HuniciEaLOmncreliij^oiPublic unities Hv I'ROFKSSOK (AMES .MAVOK OK IHE IXIVERSITVOF T(iR,>STn r, M ^f""=«'As-'0=iafon and the League of Michigan Municipalities, held at Ann Arbor, Mich., February 11-12, 1904 M..hto„ Pomic.1 Sci.„o.A«,".„".VoII';,N„.4 MiNicii'Ai. ()\VNi:usii:i'oi'i"iiii.i( I Tii.irii:s I'ROIKSSDU JAMKS MAVOH, 111' UH-; rM'-KEiSITV DK Any ci'iKTi'lr casi- of projtrtcil iiiiiiiiii|iMl ■'Wiicrsliip iii.-iy 111- 111. iked ,il fiMiii llirci- (litlVrcin |i. liiits nf view at 'cast. Wc may look at it from the |ioiiit of view of /'olilifs, from wliidi may lie estimated tlic effect of the |irojoct ii|ion tlic interests of political iiaKies, and also the effect of it u|ioti the |ioIitical develo|imein of the city or State. Or we may look at it from the I'coiuniiic ]v\m of view, from which may he estimated the extent to which the prn- jectei! ownership would he an economic adxaiitapfc or disadvantase, in hricf, how much it would cost the citv. and how much the city would jjct for it in tansihlc and in intantjihle returns. Or wc tiii,i;ht look at it from a point of view which is neither specifically political nor specifically economical, hut which mav he descrihef us inifjlit on occasion sym- pathize. Iiiit one cnmint (liscn^s it apart fn>in a concrete case, ar ' one can apply to it no principle cxccptiiif,' ttie Rcneral one, that it is usually uiiwisu lo.' a connniinity to allow itself to lie stampeded. There tlnis remain the luo first mentioned |ioiiits of view — the political and the economic. A. From the political |Kiint of view there is the consideration that any extcn';ion of the pnhlic anthority involves the diminntion of privalc freedom, and there- fore of individual initiative. The vast auricnltural and industrial development of the I nited States has been accomi)lisheil practically wholly hy spi^ntaneous individ- ual, or hy spontaneous cor|iorate .action. The compulsory |iowers of Federal, State or munic- ipal authority have rarely hecn exercised in llic industrial field, and when they liav-e hecn exercised, it has heen attvmpteil rather to rcfjulaie than to orn.i'iize. There is much to he said for the arfjument that safety lies that way. There are tindeniahle dangers in the unrestricted pur- suit of private gain. This unrestricted pursuit heconics apparently more dangerous when it is accon)|)li5hevi'. il ti'iuls tu ili'slmy inivalf initiative ami ti> linKliiii' a slitc of till' |.iililic iiiinil mi wliii-li tin- ouninti- iiity is ri'Karileil as a iiniviT-al iimviikr. Tliis state "f mind is up Ui a certain pnint inevitaMe in (•■■tintrie'. where llie aeeiinuilatiiin t»f private capital jimeeeils sinwly. and when; enterprises thai seem indispensahle tn iininieipal pni)4:re-v are nndertaken liy enmpiilsury aetinn. liecailse private initiative does not exist on an adeipiate scale; lutt it is a danj;eroiis state of mind t" cultivate. It tends alni'ist inevitalily toward petty political chicanery, and to tile wholesale purchase of constituencies liy the party in power. It is not realized that every draft upon the piililic purse is sooner or later a draft upon the private piir»c of the citizens. There are iiiiincrotis instances of nuinicipal- ities lieiii^; urt;ed hy eiitliiisiasts into iiiidertakiii),'s which have lieen liurdeiis to them, even althotii,di some heiiefits may have accrued. There are. for ex:iiii|'le. the case of (inciiinati ;iiid the Soiithern K.ailway, lialtiiiiore and the Western Maryland, tlic small City of Whcelinf,' and its railway hoiids. and I'hil.-idelphia and its ^as works. It was assnmci^ that the enterprises were necessary. Pri- vate enterprise was at the time too fiehle. and under pres- sure of enthusiasts the puhlic found itself impcllcil to enter upon them. .So also institutions which in well- estahlished c. ininuinities are supported hy priva''- endow- ment or suliscriptioii — as hospitals, r.fnges and the like — are in less well-estahlished communities wholly or par- tially jirovided out r.f the tax revenue. There is a wide- spread illusion tli.il the quickest and easiest. tliDURh in the lonn run it is the most expensive way, to have any improvement effected, is for the i uhlic authority to do it. This course appears to cost mihody anything. The iirncticc of drauincf on the puhlic authority for tiioncy and services, prohahly in the hcfjinninf; necessary, '\ ) — IS - I.CI III' lin k,'(| Mil. ,1, ;i« |.|^ kni |||l.,„ ;„ ;| I l-lii-s rirv I,, 1... ,|,,T„ii Tin- |iiiM,r aiitli,,riiii.s "l' the l"i " I'MI-.' lornr, t, aic ,i|,|,r, , "■""'"'"„>■ ,„ ,,n,|„,r,„,„ ,, ,1,,.^: ■;';' "■ iMiitiin,,,-,! .■Miiiinist,,,,!,,,,, „,, '111' iiU'Milurs I'liarw 1,1' il,.. r,. ' iii-iTaii.,ns »|. , , .Ills - •;M..rn.ar.,,,H,,w,;.:':;':;;!::?;;;:;'^'' "; •licscleinaii.ls. ' ''■'"' ''■""f "f -' I'llCri' IX ;,|s,, ,|l,. ,•..„.,. 1 : ' tilt ( . iimiirx , '""- ■""I- 1" liiiiiiiiisli tin. total ■ iii|iiil I'l-ivaii "•" Iir.iilticti. .n;- l 'tiller a svsn i'.v. litt, u„„M ; , , in '""'•''•^■•■''''>- ••'IMM-..a,li „„,al- v'-^''--"ia . ."irr'^^/^''-''^''^^ " "f I'rucluct,.,,,' ' ••""■'■11^ 'TU-aiiizalion ''ap»--e,an!e;r: l,T;';,;''"'■^■•,'''''^"'■'-- ™'''-'\->'h->>niiu.:;^;:r ,;^;;^:■-''-7"- 'ii-ss!,,„;C;;::\:;;;;;:;;'"^ •-■>•-■>■".. It. ,;..,,,.. .hi^'^n.STtlr?™''''^- '^r «"•-'-''-■-. .t, — 6- United States or in Canada to embark in expensive scien- tific enterprises, such as electric lighting, while the streets are iinpavecl or badly paved.' while so-called grade cross- ings endanger life." and while the streets and alley-ways are the breeding places of disease.' while the sewage sys- tem is defective' or where fhe water supi)ly is inadeiniate.' seems, on the face of it. a futile proceeding. New municipalities are anxious to emulate rapidly the older cities, where the slowly accumulated results of cen- turies of labor constitutes an inheritance which can only be rivab'd at immense cost to the generation that attempts the rivalry. 4. While mai.y of the criticisms which may be urged against the extension of municipal activity intti the indus- trial field. a|iply with equal force to municipal activity in Europe as well as in Ainerica. there are certain notice- able differences in conditions which must be taken into account. On the continent of Europe the Central Gov- ernment exercises a very stringent (perliaps too strin- gent) control ovei the municipalities. During the eight- eenth and nineteenth centuries, local self-government was seriously diminished, in France es])ecially in the eight- eenth century, and in Germany in the nineteenth ; in • Great Britain local self-government was nivaded in the nineteenth century, but later has been to some extent rees- tablished. Thus, on the Continent, the municipality finds its policy largely prescribed for it. In Great Britain the municipal government is in very many cities in the hands of the same persons who constitute the boards of direct- ors of companies, or who are otherwise in the daily habit of transacting business cin a large scale. It is therefore '.\s in Chicago and St. Louis. '.\s in many Eastern cities. 'As in Chicago. *As in Baltimore. 'As in Cincinnati. — 7 — not unreasonable t„ expect them to manage the city fheTal' T l^ ^-J-inistration of the public tnilities w h' the same skill and mterest which thev throw into their pnvate affa,rs. If one glance, at the names of mhe uf the lown Councils of Glasfjow or liirminsham for example, one finds those of leadin,. business men in b'h i This is the reason that the people have beeh willing , ^ to entrust them with large enterprises. The traditi o! personal honesty which f, ,r n.any years has attach isel t<. the councis of the larger cities, the .lefinite exch n ..f general party politics, the ,lisinteres,ed cha act r of cerned-they are not pa>d as in the United States and Canada) an,l .he practically complete absence of atr!",^ age (so far as the councillors arc concerned, comC o make possible the extension of municipal activi^e in fields that could not without grave risks be occ pie, v municipalities, either in the United States or i, cTnada under present conditions. v^ana.la, 5- In the present state of municipal and commnv accounting ,t is impossible, and in any conceiva I ta.e of accounting, it would be difficult to make pre e cm parisons between the cost to the public of mun c pal nd joint stock supply of public services '"""'"I'-il and It IS therefore not surprising to have the most diver- gent mferences from the available data. We are driven (a.) If a municipality is in a position to borrow money at a lower rate than a joint stock cLpanv I .s because its tangible property afifonls a relative v more ample security than the property of the Joint sto k com pany. The risk to the lender is less in one case th-,V, the other,, but the risk of the enterprise is he s^nT^e borrower, in one case the joint stock company, is obliged to pay in tlie interest payment for a risk which the prop- erty does not enable it to carry on its own acconnt ; in tlie other case, the municipahty tatces at least a jiart :>f the risk on its own shoulders. Its relatively ample property enables it to do so; but the difference between the inter- est paid by it and the interest that would be paid were the money to be borrowed by a joint stock coin]iany is not gain, it is an insurance premium on a risk taken by the municipality, and it should be dealt with as such'. Apart from the question whether the public author- ities are entitled to embark on s])eculative enterprises with the funds of the public, there is to be considered the effect upon the borrowinp; powers of the municipalities, of incidental additions to their debts, caused liy embarka- tion on public service enterprises. If a municipality borrows even for productive pur- poses larf^e sums every year or two. its securities arc a])t to ckifT the market, and however high the city may stand financially, it may be difficult on occasion to negotiate its securities. Even national governments find these diffi- culties at times. A distributed load is generally preferred to a concentr.ited one. The equilibrium is more stable. The presumption is that the mor» a city borrows in proportion to the total taxable value of the property of the citizei^s. the higher rates, other things being equal, will the city have to pay ultimately on the whole of its debt. If loans are contracted with specific liens upon par- ticular productive enterprises, they will be effected at a higher rate of interest than would be the case otherwise ; because the margin of value for risk is less. So far as interest on borrowed capital is concerned, ' Tht: iiueslion of risk lias been fullv discussed t>y Major Dai remarkable book on Municipal Trailing. — 9 — it is thus not clear that the immicipahty has any ailvaii- tage over tlie i)rivatcly orsani/ed joint stock company. (h. ) The manafjenient hy nuinici|ialitics of