LO UO CO u LIBRARY UNIVERSITY" OF CALIFORNIA. Class MUNICIPAL FINANCE AND MUNICIPAL ENTERPRISE: OF THE RIGHT HON. SIR H. H. FOWLER, G.C.S.T., M.P, ) oT~ rv~xafc-e.tivA.~-*" WrtsQ^N^O^x^- PRESIDENT OF TUB ROYAL STATISTICAL SOCIETY, Sold by P. S. KING & SON, ORCHARD HOUSE, 2 & 4, GREAT SMITH STREET, WESTMINSTER, One Shilling. CONTENTS OP RECENT ISSUES Of the Royal Statistical Society's Journal. Vol. LXII, Part II June, 1899. PAGE An Investigation into the Causes of Changes in Pauperism in England, chiefly during the last Two Intercensal Decades. Part I. By G. UDNY YULE, Assistant Professor of Applied Mathematics, University College, London 249286 Discussion on Mr. Yule's Paper 287295 The Statistical Aspect of the Sugar Q.uestion. By GEORGE MARTINEAU * 296332 Discussion on Mr. Martineau's Paper 333342 Mr. Martiueau's Reply 343 347 The Stability of Gold and Silver Prices in Recent Years. By MAJOR LEONARD DARWIN 348 372 Miscellanea 373426 Vol. LXII, Part III September, 1899. Report of the Council for the Financial Year ended 31st December, 1898, and for the Sessional Year ending 30th June, 1899, presented at the Sixty- Fifth Annual General Meeting of the Royal Statistical Society, held at the Society's Rooms, 9, Adelphi Terrace, Strand, London, on the 30th of June, 1899 427438 Proceedings of the Sixty-Fifth Annual General Meeting 439442 On Life-Tables their Construction and Practical Application. By T. E. HAYWARD, M.B. (Lond.), F.R.C.S. (Eng.), Medical Officer of Health for Haydock, Lancashire 443483 Discussion on Mr. Hayward's Paper 484- The Flag and Trade : a Summary Review of the Trade of the Chief Colonial Empires. By A. W. FLUX, M. A 489522 Discussion on Professor A. W. Flux's Paper 522533 Miscellanea 534 590 Vol. LXII, Part IV December, 1899. Notes on the Food Supply of the L T nited Kingdom, Belgium, France, and Germany. By R. F. CRAWFORD 597629 Discussion on Mr. Crawford's Paper 630 638 Some Statistics Relating to Working Class Progress since 1860. By G. H. WOOD 639666 Discussion on Mr.Wood's Paper 667 675 Miscellanea 676-754 Annual Index, vol. Ixii (1899) 755769 Appendix. List of Members, Bye-Laws, &c 1 80 Vol. LXIII, Part I March, 1900. The International Money Market. By C. ROZENRAAD 1 32 Discussion on Mr. Rozenraad's Paper 32 40 Census-Taking and its Limitations. By J. A. BAIXES, C.S.I 41 58 Discussion on Mr. Baines's Paper 58 71 Miscellanea 72159 Periodical Returns .... 160182 MUNICIPAL FINANCE AND MUNICIPAL ENTERPRISE. MUNIC The ANNUAL ADDRESS of the RIGHT HON. SIR HENRY HARTLEY FOWLER, G.C.S.I., M.P., PRESIDENT of tie EOYAL STATISTICAL SOCIETY, SESSION 1899-1900. DELIVERED 15th May, 1900. I USE the word "municipal," not as confined exclusively to what are called technically municipal authorities of corporate towns, but as including the local authorities by whom local taxation is levied and expended in England and Wales. The creation of these authorities as they now exist, their varied powers, and the results which they have accomplished, are chapters in the history of England with which, however interesting, I can- not now deal. I must limit myself strictly to the title of my paper, namely, the finance, and the enterprise involved in that finance, of our local authorities. There are no materials for accurately ascertaining the extent of local taxation in the eighteenth century. That taxation con- sisted mainly of the poor rate, the county rate, the church rate, and the highway rate. Mr. Goschen, in his report on local taxation, dated March, 1871, divided the first seventy years of the nineteenth century, as regards local taxation, into three periods. The first, ending 1840, when practically no addition had been made to the then existing rates ; the second, from 1841 to 1851, when police rates and borough rates were added; and the third period, from 1851 to 1869, when modern rates, which Mr. Goschen describes as " sanitary " rates and town rates," were superadded. In 1803 the receipts from the old rates, viz., poor, county, church, and highway, amounted to 5,348,000^., in 1817 to 10,107,000^., in 1827 to 9,544,000^., in 1841 to 8,ioi,oooJ., in 1851 to 8,9i6,oooJ., in 1862 to 12,207,000^., and in 1868, when the returns of rates were for the first time accurately made up and classified, the tota>of all local rates reached 16,800,000^. In 1891 the amount had reached 27,818,000^., and in 1898 37,605,000^. These figures relate solely to rates levied for public purposes, and do not include tolls, dues, and other indirect local taxation, or the receipts from local enterprises carried on by, and at the risk of, local authorities. 1 591 72 2 Municipal Finance and Municipal Enterprise. The aggregate receipts of the local authorities (including these exceptions) during the last year for which we have returns, viz., the financial year ending 31st March, 1898, excluding loans, were 69,144,000;., and the expenditure for that period, so far as it was not defrayed out of loans, was 67,823,000^., which may be roundly stated as spent as follows : Mint. On the relief of the poor ............................................ ioi Police ............................................................................ t( Education ...... . ............................................................. 7! Streets and highways ................................................. ... 8 Public lighting ........................................................... i Sewerage ........................... . ............................................ i Other public works and purposes ............................ 7! Salaries, superannuation, establishment charges, "I a election expenses, and other payments ............ J ^* Interest on loans and instalments of principal repaid i^i Gas and water works and tramways ............... ........ 5$- Harbours, piers, docks, and quays ............................ if Private improvement works ........................................ i The 69,144,000^. aggregate receipts, putting them roundly at 69,ooo,ooo/., were contributed as follows : illM. Kates ............................................................................ 3 7i Treasury subventions, local taxation, grants and] other payments from exchequer, and grants > 1 1 under Agricultural Kates Act ............................ j Receipts from tolls, dues, invested property, fines, 1 , , fees, &c ................................................................. J" Sales of property and repayment in respect of \ x private improvements ........................................ J Waterworks and gasworks and other under- "I & takings producing revenue ................................ J But, irrespective of these revenues and expenditure, there is also a large and increasing debt, and a capital expenditure defrayed out of borrowed money. The amount of debt incurred by local authorities could not be accurately ascertained in the year 1868, but it was then estimated at 60 million . The first year for which local taxation returns give the amount of the local debt was 1875, and ifc was then stated to be 92,820,000^. ; in 1885 it was i73,2O7,oooZ., in 1895 it was 23 5, 335,000^, and in 1898 the out- standing debt was 262,017,000^. The purposes for which this large sum has been borrowed, as far as it is practicable to identify them, may be stated roundly as follows : Municipal Finance and Municipal Enterprise. Mlus. Poor law purposes and lunatic asylums 14^ Schools 28 Gaols and police stations i Highways and street improvements 315 Sewerage 27i Markets -.... f> Cemeteries -f Public buildings, offices, fire engines, and other "I 6J appliances j Parks and pleasure grounds, public libraries, \ L museums, bath and washhouses, hospitals, &c. J Bridges and ferries 4-i Artizans' and labourers' dwellings, allotments, "I and small holdings J Harbours, piers, docks, embankments, &c 37 Private improvements and all other purposes, "1 4 including advances to Manchester Ship Canal J Waterworks 48 Gasworks i8i Electric light 3! Tramways ~ 3i 262 To appreciate the magnitude of the figures I have been quoting, one must contrast them with those of imperial income and the national debt. The imperial income for the corresponding year ending 31st March, 1898, was io6,6i4,ooo/., and the national debt at the end of that year was 638,266,ooo/. Between 1875 and 1898 the national debt was reduced by 13 1 million ; the local debt was during the same period increased by 170 million . It must how- ever be borne in mind that of the 262 million of local debt a large sum represents money borrowed for reproductive expenditure or for purposes producing income, which produced in the same year a gross income of nearly 19 million , and a net income of 4 million ; but after this allowance we are face to face with a taxation raised for local purposes of .38 million from rates and 1 1 million from imperial funds. This expenditure is necessary and beneficial. It is an expendi- ture which cannot be decreased, and must and as I think ought to be largely increased in the interests of the community as a whole. I frankly admit that I am one of those who hold that local taxation is most unfairly levied ; that what ought to be levied on both real and personal property is levied on real property exclusively ; and that where this is partially remedied by and from the imperial purse, the amount and manner in which that relief is given is most unsatisfactory. However, as that difficult question is now under the consideration of a Royal Commission, it cannot be fairly or fully considered until their report is made. A2 4 Municipal Finance and Municipal Enterprise. The objects of local taxation were in the first instance the relief of the poor, the protection of public peace by means of the police, the construction and maintenance of roads and streets and the lighting of the same. That taxation next extended to the works necessary for the preservation of the public health, such as drainage, scavenging, and sewerage, asylums for lunatics, and hospitals for the isolation of infectious diseases, and the establish- ment of public baths, and the other steps necessary to prevent the spread of such diseases, and the improvement of the dwellings of the working classes. All these are matters as to which there can be no option, they are public obligations to be incurred for the benefit of the whole community, and towards which the whole community should contribute. The next step in advance was the provision for the intellectual wants of the community in the shape of education, and free libraries. Next recreation, the establishment of art galleries, and the acquisition of parks and open spaces. These objects rest rather upon the principle of the co-operation of the many to secure for the advantage of all those opportunities for the healthy and elevating enjoyment of life, which were previously confined to a limited section of the inhabitants who were able to procure them at their own cost. Public opinion may have advanced slowly, as it always does in this country, but it has advanced surely, and I do not think that there can be any sound objection to these provisions at the general expense for the benefit of the community at large. The remaining class of local expenditure deals with the establishing and conducting certain enterprises at the risk and for the benefit of the local communities in which these enterprises are established, and this expenditure must be distinguished from what may be called the primary objects for which local taxation is levied. I would follow this division in classifying the purposes for which the outstanding debt of 262,01 7, ooo/. has been raised by local authorities. J for purposes for which local authorities are bound to 36,071,000 for educational and recreative purposes. 87,581,000 for trading and similar purposes. Total 260,864,000 Adding to this i,i45,ooo/., advances for private improvements to be repaid, we make up in round figures the total 262,017,000?. In a detailed consideration of municipal trading enterprises, Municipal Finance and Municipal Enterprise. 5 I am necessarily confined to municipal boroughs, as the parlia- mentary return in 1899 which was laid before Parliament does not include other local authorities. That return deals only with the 265 municipal boroughs in England and Wales, including the whole of the county boroughs, but excluding the London County Council ; but practically this return may be taken to represent the principal municipal enter- prises of England and Wales, although of course there are similar undertakings carried on by other local authorities in more restricted localities. These undertakings may be divided into six principal classes : Waterworks. Gasworks. Markets. Tramways. Electric lighting. Piers, quays, and harbours. It may be stated that with the exception of markets, most of which were founded originally under charters, only 46 of these enterprises were commenced before 1850. But some of the waterworks owned by municipalities date from very early times Southampton from the year 1420, Hull from 1447, Bath from 1500, Plymouth from 1590, Rye from 1600, and Oxford from 1694. We thus see that even in ancient days those who were responsible for the management of some municipalities at least recognised the importance of a good supply of pure water to the public. Of these enterprises waterworks and gasworks are the principal ones, involving the largest amount of capital and the largest receipts. There are 173 municipal boroughs who own the waterworks supplying their respective localities. Of these the bulk were established by private companies, and subsequently purchased by the municipal authorities. The figures relating to the 173 waterworks now under municipal control show Total capital provided by corporations 48,434,890 Capital borrowed 46,546,391 Amount of debt paid off 5,140,486 in sinking funds or loans funds 1 >332,5o8 Average annual income for the five years ending") 31st March, 1898, or where undertaking com- I , menced during that period, from date of f , 2) 44>937 commencement J Average working expenses for the same periods.... 902,61* ,, annual amount paid for interest, and"! instalments of principal on capital borrowed J r >99>3 22 Average annual amount set apart for depreciation 15,211 Net average annual profit ,., 27,792 6 Municipal Finance and Municipal Enterprise. There are 87 corporations who own their gasworks. The figures relating to these 87 gasworks are : Total capital provided 20,175,764 Capital borrowed I 9> 2 54>35 Amount paid off 3>457>3-9 In sinking funds 1,075,802 Average annual income 4,517,1:6 working expenses 3>336,9i8 amounts paid for interest and "1 instalments of principal J Average annual depreciation 37>333 Net average annual profit 370,340 There are 204 corporations who own their markets. The figures are as follows : Capital provided 4,770,301 borrowed 4,211,695 paid oft' 1,361,518 In sinking funds 2 ! 9j339 Average annual income 454,304 working expenses 204,826 annual amount paid for interest and "1 68 instalments of principal J Depreciation 460 Net average annual profit 93 5 337 There are 28 corporations who own their tramways. The figures are as follows : Capital provided 3,213,654 ,, borrowed 2,689,384 ,, paid off 499)3/7 In sinking funds 104,969 Average annual income 435,942 ,, working expenses , 302,670 annual amount paid for interest and 1 instalments of principal J Annual depreciation 8,488 Net average annual profit 34>O79 There are 55 corporations who own electric light works. The figures are: Capital provided 3,416,71 1 borrowed 3^08,533 paid off 108,848 In sinking funds , 101,642 Average annual income 304,499 ,, working expenses I 68,755 ,, annual amount paid for interest and "I ,, , instalments of principal J Annual depreciation 3>747 Net average annual profit 5>338 Municipal Finance and Municipal Enterprise. 7 There are 17 corporations who own piers, quays, &c. The figures are: Capital provided 4>797A$9 ,, borrowed 4,676,829 paid off 3 6l >5 22 In sinking funds 143,029 Average annual income 324,780 working expenses 197,495 annual amount paid for interest and 1 instalments of principal J 1 /54 <2 7 Annual depreciation 13,660 Net average loss 6j,8oz The summary of the foregoing, and of similar figures in respect of baths, cemeteries, working class dwellings, and other miscellaneous enterprises which the Local Government Board regard as reproductive "undertakings carried on by municipal boroughs in England and Wales. The total results are : Amount of capital provided 88,152,595 , borrowed 83,379,931 paid off 11,720,904 To which must be added amounts in 1 sinking funds or loan funds J 3> 2 3>597 14,924,501 Average annual income for five years ended March, ~| 1898, or, when the undertaking commenced during y 8,898,376 that period, from the date of commencement .... J Average annual working expenses 5>3 I 9597 annual amount paid for interest and 1 instalment of principal J 3> I2 7>-/ Set apart for depreciation ,.... 81,167 Leaving the average annual net profit of all munici- "I pal reproductive undertakings J 37>34 The profit in the great majority of cases is applied in reduction of rates. The practical result is that the income produced by the existing municipal enterprises pays the working expenses, the interest and instalments of borrowed capital, and leaves a profit balance of 370, 34.1 /., or about -J per cent, on the outstanding debt, which the Local Government Board, after making certain correc- tions on the foregoing figures, put at 71,883,2327. There is no doubt that the tendency of the present day is in the direction of combination, by which the public can secure greater advantages at a cheaper rate, and in a more efficient manner than they could secure them by private enterprise, and there are beyond question certain public needs which ought to be supplied under the control of the local authorities. The difficulty arises as to what is the true boundary line which mast be main- tained between public enterprise carried on at the public cost and 8 Municipal Finance and Municipal Enterprise. at the public risk, and private enterprise carried on by individual traders or a combination of individual traders in partnership or in companies. The history of the manner in which Parliament has hitherto dealt with this question must be recalled. There are undertakings which require parliamentary sanction and legislative powers for their establishment and management. No individual trader, no private company, can establish for him- self or themselves the right to compulsorily acquire other people's property, or to use for their own advantage the roads and high- ways, which belong to the public. This country has adopted in the United Kingdom the principle that the railways of the country should be provided by private capital, and conducted by private management under public control. In India and in some of the Colonies railways are either partially or altogether managed by the Government. In addition to railways Parliament has vested large powers in joint stock undertakings for the construc- tion and management of waterworks, gasworks, and similar undertakings. The legislature has accompanied the grant of these powers with elaborate conditions, for public control for securing the public convenience, for guarding the public safety, and for enabling the public on certain terms and under certain conditions to compulsorily acquire these undertakings. So far as railways are concerned, I submit, that if the railways of this country are contrasted with what are called the State railways of many foreign countries, the contrast is favourable to the superiority of the management of our railway system. There may be some points on which State control results in a more economical mode of transport. But I am satisfied that no government department could manage the railway system of this country with the efficiency, the safety, and the speed which our great railway companies supply. But be that as it may, we have, in the case of railways, vast private undertakings in which the whole community are vitally interested carried on by private management, invested with large statutory powers, but subject to public control, which successive legislation makes more and more stringent. The competition between one railway and another is now a competition of convenience and speed. A cut- throat competition in railway fares is practically impossible. Stephenson's maxim that " where com- " bination was possible competition was impossible," so far as railway fares are concerned, has been proved to be true. But where there are two competing lines, say, e.g., between London and Birmingham, or London and Edinburgh, going through different tracks of country and charging the same rates, there is an effective competition in the conveniences and speed of the two systems. Municipal Finance and Municipal Enterprise. 9 Bui: in modern times we have seen another kind of locomotion gradually growing into public favour and serving a great public need the construction of tramways in local districts. It is im- possible to have two sets of tram rails in the same streets, say of any borough. You must have but one system, no matter by whom it is owned. In other words, it must be a monopoly, and as such using the public roads and streets which belong to the community. There are also undertakings which are for the common good and for the general use of the wbole community. The supply of pure water, and of artificial light, fall within this category. Parliament has by general legislation controlled the manage- ment of certain undertakings which are for the common good and general use of the whole community, and has sanctioned in the public interest the transfer of these undertakings to municipal public authorities. I do not suppose that any controversy will arise as to the wisdom of the course which Parliament has adopted with respect to undertakings of the character to which I have referred. There is a difference of opinion as to the extent to which municipal enterprise should be further carried. Lord Avebury, in a recent paper read before the London Chamber of Commerce, says that among the businesses which various municipalities are in the present session asking Parliament to grant them powers to undertake, are banking, pawnbroking, coal supply, saddlery, manufacture of electrical fittings, of the residual products of gas, and other branches of trade and manufacture. Those who favour these and similar extensions of municipal trading, allege that a public authority can raise money more easily and cheaply than a private company can, and that therefore to leave certain undertakings in private hands is to sacrifice an economical advantage, that if a profit can be made out of the general supply of some community, why should not the community realise that profit for itself, and that as certain undertakings are of necessity monopolies, it is better that public authorities should hold these monopolies and carry them on for the public benefit. In opposition to this it is alleged that the great difficulty of a cor- poration engaging in a trade is to hold the balance evenly between the ratepayer as a proprietor of the corporation undertaking, and the ratepayer as consumer, that where manufacturing or commercial undertakings are in the hands of the public authority, the power and authority of the authority is used to defend them as such, and to prevent anyone else conducting a competing trade, that in any branch of industry which is of a mobile character, and which depends on the education of the public and the tempting of 10 Municipal Finance and Municipal Enterprise. easterners, it is desirable that the private capitalist, who under- stands his own business, should be free to conduct it in his own way. Without deciding as to the force of these conflicting argu- ments, I want to point out what appears to be some of the practical considerations which deserve special attention. The extension of municipal enterprises beyond those which Parliament has practically sanctioned, involves consideration of (1) the nature and objects of the undertakings which it is proposed to entrust to the municipal authorities, (2) the capital outlay, (8) the probable income and financial results, (4) the management required, the protection of the interests of the ratepayers, (5) the question of competition or monopoly, (6) the protection of the general consumers against any charge beyond those of the open market, and (7) the guarding against extravagant expenditure by the authorities or permanent officials on whom the conduct and control of these undertakings will devolve. I apprehend that there will be a general agreement that any extension of municipal enterprise should be confined to such undertakings as are clearly for the common good and the general use of the whole community, and that they should comprise under- takings which it is for the public advantage that they should be placed under public control. It must, however, be borne in mind that the general user cannot decide the question of municipal enterprise. Take two articles which are perhaps in very general use, tobacco and beer. If general user is to be the test, it might be urged that public bodies should become manufacturers of tobacco and beer. They would be the guardians of the purity of both these commodities, and possibly they might carry them on so as to produce such a profit as would be an advantage to the community where they were located ; but if the price was higher than the actual cost, the consumers of these articles are taxed to the relief of rates for the benefit of those who do not smoke and who do not drink beer. If, on the other hand, the prices are lower than the cost price, then the general ratepayers, including those who do not smoke and who do not drink, are taxed in order to supply cheap tobacco and cheap beer for a section of the community. So far as the financial question is concerned it would, I think, be admitted that where undertakings are promoted by public authorities or private persons there is no getting rid of the capitalist. Whether the undertaking is established by the private individual or by a corporation, private or public, the capital will still have to be found, and the cost of finding that capital is a charge that will have to be met. In raising capital for public purposes, all property of the Municipal Finance and Municipal Enterprise. 11 community is in effect chargeable with its repayment with interest, and the public should therefore be guarded as far as possible against the risk of loss, and that to a great extent depends upon whether the management of the undertaking proposed is such as nan be efficiently and successfully carried on by an unpaid public body having no personal pecuniary interest. This question of management is a main factor in the classification of enterprises which can or cannot be undertaken by public authorities. The industrial success of this country, whether it be manufacturing or commercial, has been attained by individual energy, impelled by the motive of individual ambition and profit, and devoting time and energy to the most minute and continuous superintendence of every detail. And to these characteristics of individual management must be added the constant discoveries of inventions both in machinery, manufacture, materials, and distribution, which render such enormous services to the trade of this country. Public undertakings must be carried on under fhe check of an impartial and constant audit. The system of audit by a public official which prevails through every department of local govern- ment, does not as yet apply to municipal boroughs, although Parliament, in the recent London Government Act, wisely applied this efficient audit to the metropolitan boroughs, it does not apply to municipal boroughs. This necessity for a thorough system of Government audit I regard as vital. The question of competition with private traders is of the greatest importance. The municipality taxes the whole com- munity, and in that taxation includes the private trader, and therefore in the case of competition with that trader, he is compelled to contribute to a fund which might be employed to compete with him in his own business, and so to destroy his trade. And not only is the competing trader affected, but the general consumer may have to pay a higher price in consequence of the creation of a monopoly. We have hitherto regarded, it as the right of every citizen to buy in the cheapest market, and safe- guards would be required to prevent any interference with this principle. The essential principle of free trade is that the whole body of consumers are not to be taxed for the benefit of the producers, and while we have to carefully eliminate from our commercial system everything which infringes that principle, we must not allow it to be violated for the benefit of public authorities any more than for the benefit of private traders. Parliament has just appointed a joint committee of both Houses to consider the princinles whiek. should srovern the power given 12 Municipal Finance and Municipal Enterprise. to municipal and other local authorities for industrial enter- prises. An inquiry into municipal trading is neither directly nor indirectly an attack upon our municipal institutions. Those institutions have worked well in the past, they have accomplished great benefits to the advantage of the whole community, and it would be worse than a mistake in any way to hamper or to inter- fere with their beneficent operations. I have been too long and too intimately connected with municipal life to be a party to such a proceeding. I have always advocated placing the supply of public water, of public light, and similar undertakings in the hands of the municipalities, and I am not prepared to accept the theory that the limit of successful municipal work has been reached, but when municipal and local bodies are claiming wider powers, embracing new areas of com- mercial and industrial activity, questions arise not only as to the extent to which those powers should be granted, but also as to the regulations anti checks by which they should be accompanied. I have referred to some of these questions there are others of great importance and I think that a full and impartial consideration will be a great public advantage. Of course particular cases must be dealt with on their own merits, but all cases should be subject to the same provisions for guarding the interests of the ratepayers, for securing a strict supervision and audit of the expenditure of public money, for preventing the creation of unnecessary patronage, and for preventing the creation of a monopoly which would practi- cally exclude legitimate competition. It is impossible until such an inquiry has been completed to lay down any specific rules, or in other words to anticipate the conclusion to which the Committee may arrive. We can only point out the dangers and difficulties which may arise, the risks which may be run, and the injustice that might result. The true friends of municipal life and institutions are those who desire to see that life developed and those institutions strengthened on the broad basis of public benefit and of public support. They will not be disposed to sacrifice the rare advantages of the devotion, wise supervision and experienced management and administration which are the advantages of the voluntary public service of that large army of citizens who control our local administration, but they will recognise that there are limits to the extent and efficiency of that management they will see that it must not conflict with the just interests of the ratepayers the traders, and the public, and they will not weaken the strength and value of municipal administration by extending it beyond those limits. Municipal Finance and Municipal Enterprise. 13 APPENDIX. TABLE I. Purposes for which the Outstanding Loans of Local Authorities have been Raised, and Amounts Outstanding in respect of each purpose at Zlst March, 1898. Waterworks. Town councils 42,547,294 Urban district councils (districts other than 1 borough s} .. 3,880,877 Joint boards and joint committees 768,151 Rural district councils ... 671,091 Harbours, Piers, Docks, and Quays. Harbour, pier, and dock authorities (in- "j eluding certain town and other urban I district councils) I 33,775,913 4/5 oo 7>'t l 3 Other authorities 425 109 Highways, including Street Improvements. Town councils 15,303 338 34,2OI,OZ2 Urban district councils (districts other than "1 boroughs) ... J 1,690,709 London County Council 11,332430 Metropolitan vestries and district boards 1,216,578 Commissioners of Sewers of the City of London Corporation of London and other authorities 1,232,915 506,718 21 ->tf 2 f>8X Schools (including technical schools, reformatories, and industrial schools). Board schools, school board offices, reforma- tories, and industrial schools School Board for London 9,316,551 Other school boards ,.. 17,859974 County councils (reformatories, &c.) Technical instruction (buildings, &c.) County councils, town councils, and 1 councils of urban districts other than |> boroughs . * J 24,696 602,173 Other schools and colleges Town councils and the Corporation of 1 London . f 121,383 Sewerage and Sewage Disposal WorTcs. Town councils 13 638 950 2 7>9 2 4>777 Urban district councils (districts other than "1 boroughs) J 6,486,839 London County Council 3 864 376 Joint boards and joint committees 1 449 481 Rural district councils 1 497 041 Metropolitan vestries and district boards 253,319 Carried forward 168 A.6< 006 14 Municipal Finance and Municipal Enterprise. TABLE I Contd. Purposes for which Outstanding Loans have been Raised. Brought forward Gasworks. Town councils 15 589 984 Urban district councils (districts other than "1 2,146,957 Joint boards . , 555 178 e Poor Law Purposes, Sfc. Workhouses, infirmaries, schools, hospitals, &c. Boards of guardians 6 796 992 Managers of asylum and school districts Vestry offices Churchwardens and overseers 2,486,164 20900 Union Assessment Acts Boards of Guardians 4142 Markets. Corporation of London 2 708 300 ,300,190 Town councils . . 2 737 495 Urban district councils (districts other than 1 boroughs) 301,060 Commissioners of markets and fairs 56,570 _ Parks, Pleasure Grounds, Commons, and Open Spaces. Town councils ... 3 310815 Urban district councils (districts other than "1 boroughs) J 528,802 Metropolitan vestries and district boards * 317,604 I/ondon County Council 1 006 500 Corporation of London 194 000 Other authorities 37 111 Public Buildings, Offices, $c. (not included under other headings). Town councils 4 195 403 5>3y4>3 a Urban district councils (districts other than 1 boroughs) J 492,980 Metropolitan vestries and district boards \ (mortuaries, vestry halls, offices, &c.) J London County Council (additional office 1 accommodation and coroners' courts) .... J County councils other than the London 1 County Council (shire halls, assize courts, > j udges' lodgings, and petty sessions rooms) J Corporation of London (the Koyal Exchange) Receiver for the Metropolitan police dis- "I trict (police courts) . J 321,453 30,976 291,011 41,600 50,000 Parish councils (parish rooms, parish offices, 1 vestry halls and parish halls) J 8,047 >43 1 >4/ < -' Carried forward 212,695,950 Municipal Finance and Municipal Enterprise. 15 TABLE I Contd. Purposes for which Outstanding Loans have been Raised. Brought forward 3,062,101 1,170,888 930,369 8,000 212,695,950 5i7i,358 5,127,980 / 4,756,894 _ 4,274>9-* 3,674,641 Lunatic Asylums. County councils other than the London"! County Council J Corporation of London Advances to the Manchester Ship Canal Company. 1,776,988* 2,113,679 495,813 110,793 42,172 1,445 216,004 Sousing of the Working Classes. London County Council Town councils Under Artizans and Labourers' Dwellings") Improvement Acts and Artizans' Dwell- > ioss Acts Under Housing of the Working Classes 1 Acts 1890 and 1894 J Under local Acts . .... Urban district councils (districts other than 1 boroiiffhs) Rural district councils Metropolitan vestries and district boards"! and the Commissioners of Sewers of the V City of London J Bridges and Ferries. London County Council 1,772,039 1,050,900 1,000,336 328,681 122,966 Corporation of London Town councils Urban district councils (districts other than "1 boroughs) . Other authorities Electric Lighting. Town councils 3,057,739 134,142 482,601 159 Urban district councils (districts other than 1 boroughs) J Metropolitan vestries and district boards London County Council Carried forward *35i7oi,745 * Including 717,319^. in respect of loans raised since the passing of the Housing of the Working Classes Act, 1890. 16 Municipal Finance and Municipal Enterprise. TABLE I Contd. Purposes for vukich Outstanding Loans have been Raised. Tramways. Town councils 2 402 149 Urban district councils (districts other than "1 boroughs) . 49,673 London County Council .... 803 923 Land Drainage, Embankment, River Conservancy, and Sea Defences. Drainage, embankment, and conservancy ~j boards, and Commissioners of Sewers > (extra-metropolitan) J 2 ,143,672 3> 2 55>/45 Town councils 600 668 Urban district councils (districts other than 1 boroughs) 117,395 London County Council 35,445 Cemeteries and other Burial Grounds. Town councils 288 064* 2,097,150 Urban district councils (districts other than \ boroughs) ' J 272,224* Toint boards and "joint committees 10 172* Rural district councils 59 341* Parish councils acting under the Burial Acts Burial boards and other local authorities] (except parish councils) acting under the > Burial Acts . . . J 137,184 1,962,345 Baths, Washhouses, and Open Bathing Places. Town councils 992 712 ~>/ 2 9>33 Urban district councils (districts other than "1 boroughs) J 80,868 Metropolitan vestries (parishes in Schedule A 1 to the Metropolis Management Act, 1855) j Commissioners of Baths and Washhouses and "] certain other authorities administering i- the Baths and AVashhouses Acts .. . J 513,602 288,418 Carried forward * In respect of cemeteries provided under the Public Health (Interments) Act, 1879, or under local Acts, in cases where the authority does not act as a burial board under the Burial Acts. Municipal Finance and Municipal Ente'i'prise. 17 TABLE I Contd. Purposes for which Outstanding Loans have been Raised. Brought forward Sospitals. Town councils 1,128,855 Urban district councils (districts other than \ ,g 2 390 boroughs) J Joint boards and joint committees 180,109 Rural district councils 146,298 Port sanitary authorities, &c 30,304 Police Stations, Gaols, and LocJc-up Souses. County councils other than the London \ A i Ae)f - County Council J 4 ' 1 '^' Town councils 463,339 Receiver for the metropolitan police district.... 475,000 London County Council 5,333 Public Libraries, Museums, and Schools of Science and Art. Town councils 651,185 Other authorities 223,821 Fire Engines and other Appliances, and Fire Brigades. London County Council (Metropolitan Fire "I Brigade) / ' 41 ' y4 Town councils 216,789 Urban district councils (districts other than "1 ~~ OA /; boroughs) .. J ob ' y ' Rural district councils 1,749 Slaughter Souses. Town councils 146,228 Urban district councils (districts other than "11 QC n o boroughs) / j 36 > U Allotments. Town councils j 38,219 Urban district councils (districts other than! ,, 00 , boroughs) / llj92 Rural district councils 21,852 County councils other than the London"! c KAf) County Council J 6 ' 54 Parish councils 298 Carried forward.... 246,459,600 875,006 817,387 182,340 78, ,218 18 Municipal Finance and Municipal Enterprise. TABLE I Contd. Purposes for which Outstanding Loans have been Raised. Brought forward. Small Holdings. County councils other than the London "I , 251,496,218 6,316 Private Improvement Works. Town councils 529 424 Urban district councils (districts other than "1 borouerhs) . 597,741 Rural district councils . . 17,556 Loans for other Works and Purposes, and Unapportioned Loans* Town councils (municipal accounts) . .. 1 8l7,000*f 1 > ! 44 7 * i (other accounts) 4,742,848*2 Urban district councils (districts other than "I boroughs) J 810,686* London County Council 1,421,27011 Metropolitan vestries and district boards County councils other than the London"! County Council . . .... ..... J 406,348 141,191 Rural district councils 25 039TF Salmon and freshwater fishery conservancy ~l boards.... 1,915 Trustees of certain metropolitan squares Parish councils 1,544 1,876 Port sanitary authorities 180 oy>y / Total 262,017,152 * Including loans which were raised for two or more of the purposes mentioned in this table, but which it has not been found practicable to apportion among the several purposes. f Including 100,000?. in respect of subscription to Hull and Barnsley Railway, 168,550?. for expenses of incorporation and of local Acts, and 5 34, 7 2 7?. for purposes connected with corporate property (other than that specified under separate headings). % Including 135,392?., costs of local Acts; 176,053?. for improvement of insanitary property at Liverpool, 376,134?. for night-soil removal works at Manchester, and 4,757?. under the Museums and Gymnasiums Act, 1891. Including 78,552?., costs of local Acts. || Comprising 1,284,892?. on account of the Thames Tunnel and Subway, 28,295?. weights and measures, 7,273?. gas meter testing, 1,572?. electric meter testing, and 99,238?. workshops and store yards. V Including 332?. legal expenses and costs of local Acts. Municipal Finance and Municipal Enterprise. 19 TABLE II. Loans Owing ly the several Classes of Local Authorities at 3lst March, 1898. Town Councils (accounts other than munici- pal accounts, excluding accounts of town councils acting as burial boards) County Boroughs. Other Boroughs. 42,547,294 13,638,950 15,303,338 15,589,984 3,057,739 3,310,815 2,737,495 2,720,285 2,402,149 992,712 1,128,855 146,228 288,064 216,789 231,142 173,789 135,392 38,219 529,424 4,951,405 110,140,068 15,292,251 34,651,103 9,219,553 12,826,606 11,868,822 2,541,520 2,743,752 2,006,661 2,662,543 2,241,167 678,840 950,265 91,258 172,620 179,004 193,857 99,436 81,808 18,263 304,279 4,332,279f 7,896,191 4,419,397 2,476,732 3,721,162 516,219 567,063 730,834 57,742 160,982 313,872 178,590 54,970 115,444 37,785 37,285 74,353 53,584 19,956 225,145 619,126 Sewerage and sewage disposal works Flectric lighting Parks, pleasure grounds, commons, and "1 Housing of tlic working classes Baths, washhouses, and open bathing places... Slaughter houses .. .... Fire engines and other appliances . Public offices and buildings Sea defences Costs of local Acts Private improvement works Loans for other purposes, and unappor- 1 tioned loans* J Town Councils (municipal accounts, excluding accounts of town councils acting as harbour, pier, or dock authorities) Lunatic asylums . 87,863,636 22,276,432 1,170,888 3,964,261 140,726 322,613 100,883^ 519,187 651,185 1,000,336 534,727 358,547 168,550 5,127,980 1,232,368 1,142,058 3,177,349 130,712 259,036 100,883 425,218 560,884 776,971 394,584 129,992 104,116 5,127,980 1,087,606 28,830 786,912 10,014 63,577 93,969 90,301 223,365 140,143 228,555 64,434 - 144,762 Municipal buildings (not included under"! other headings) J Prisons .... . .. ' Police stations Schools and colleges Technical instruction (buildings, &c.) Public libraries, museums, and schools of~l science and art ..... j Bridges and ferries Corporate property (other than that specified 1 under separate headings) j Piers docks, and quays Expenses of incorporation and of local Acts ... Advances to the Manchester Ship CanaH Companv . Loans for other purposes, and unappor- "I tioned loans* j Carried forward 13,417,389 1,874,862 125,432,319 * Including loans which were raised for two or more of the purposes specifically enumerated above, but which it has not been found practicable to apportion among the several purposes, f Including 308,234?. for floods prevention at Leicester, 176,053*. for the improvement of insanitary property at Liverpool, and 370,1*4*. for night-soil removal works at Manchester, t Including 81,695?. for university buildings. S Including 100,000?. in respect of subscription to Hull and Barnsley Railway, 99,633?. in respect of loans raised under the Bristol (River Frome) Act, 1887, and the Bristol Floods Prevention Act, 1890, and 19,012?. for sea defences. 20 Municipal Finance and Municipal Enterprise. TABLE II Contd. Loans Owing by the several Classes of Local Authorities. Urban District Councils (Districts other than Boroughs) (excluding accounts of councils acting as burial boards, or as harbour, pier, or dock authorities) . Sewerage and sewage disposal works 6 486 839 W aterworks 3 880 877 1 690 709 Bridges and ferries 328 681 2 146 957 Electric lighting 134 142 Parks, pleasure grounds, and open spaces 528 802 Markets . . 301 060 Tramways . 49 673 Baths, washhouses, and open bathing places.... Hospitals 80,868 182 390 Slaughterhouses 36112 272 224 56906 Public offices 492 980 libraries and museums 49 613 Technical instruction (buildings, &c.) Piers docks, and quays . . .. 68,341 30847 Sea defences .... ... 117 395 Costs of local acts 78552 Allotments 11,921 Housing of the working classes 40,635 597,741 Loans for other purposes, and unapportioned \ loans .< . .. j 733,671* Metropolitan Vestries (parishes in Schedule A to the Metropolis Management Act, 1855) and District Boards (excluding accounts under the Burial Acts). Highways and street improvements 1 216 578 i0 )6y7>y$u Sewerage and drainage works 253 319 Parks, pleasure grounds, and open spaces Bridges 317,604 34365 Electric lighting 482 601 Public conveniences . . .. 80191 Baths and washhouses 513 602 Public libraries and museums 67,481 Housing of the working classes 43,504 Mortuaries and places for holding post-"! mortem examinations and inquests . . j 16,272 Dep6ts, wharves, yards, and refuse destructors Other public buildings 314,681 305,707 11,476 1 6C'7 281 6> V 37)6 01 Carried forward 147,487,636 * Including 1,537?. in respect of labouring class dwellings under Provisional Orders of the Local Grovernment Board. Municipal Finance and Municipal Enterprise. 21 TABLE II Contd. Loans Owing by the several Classes of Local Authorities. Brought forward 147,487,636 Corporation of London. Markets 2,708,300 Bridges . 1,050,900 Holborn Valley and Farringdon market im- 1 387,300 194,000 Other purposes (including loans raised for! the Commissioners of Sewers of the City > of London) j 395,060 Deduct Loans raised for the Commis- ~| sioners of Sewers of the City of > London J 4,736,100 325,500 Commissioners of Setvers of the City of London. Street improvements ... 1,232,915 4,410,600 Housing of the working classes 172,500 * Joint Boards and Joint Committees for certain purposes. Sewerage and sewage disposal works 1 449,481 I j45j4 1 5 Waterworks , 768,151 Grasworks 555,178 Hospitals 180,109 Oemeteries 10172 .. Harbour r Pier, and Dock Authorities (in-"] eluding town and other urban district 1 councils acting as harbour, pier, and dock [ authorities) J 2 f9 3> o 9 J 33>7759 I 3 School Hoards. School Board for London 9,316,551 Other school boards 17 859 974 (. London County Council. Street improvements and embankments Main drainage ... 11,332,430 3,864,376 2 7-J I 7j5 2 5 Bridges and ferry 1,772,039 Housing of the working classes . .. . 1 776,988f Thames tunnel and subway . 1,284 892 Parks, commons, and open spaces 1,006 500 Tramways 803,923 Lunatic asylums 613,955 Fire brigade 541,943 Workshops and storeyards 99,238 Carried forward 217,219,180 * This was the amount outstanding when the authority ceased to exist in January, 1898. f Including 717,319?. in respect of loans raised since the passing of the Housing of the Working Classes Act, 1890. 22 Municipal Finance and Municipal Enterprise. TABLE II Contd. Loans Owing by the several Classes of Local Authorities. Brought forward 217,219,180 London County Council contd. Thames river (prevention of floods) 35,455 Weights and measures 28,295 Other purposes 43755 Loans taken over on adjustment of liabilities, &c., between the counties of Middlesex and Surrey, and London Lunatic asylums 316,414 Prisons 5333 Industrial schools 127 Loans to other local authorities 15,710,726 Deduct Loans owing to the Council"! by other local authorities .... j 39,236,379* 15,710,726 f County Councils other than the London County Council. Lunatic asylums 3,062 101 Police stations, gaols, and lock-up houses Shire halls, assize courts, judges' lodgings, "1 and petty sessions rooms J 471,425 291,011 Reformatories and industrial schools 20,794 County bridges 83,218 Highways 44532 Technical instruction (buildings, &c.) Allotments and small holdings 14,645 12858 Other purposes 144 024f Receiver for the Metropolitan Police District. Central office, police stations, &c. 475 000 Police courts 50,000 Poor Law Authorities. Boards of guardians (workhouses, in- "1 firmaries, land, &c.) J 6,801,134 5 2 5> oo Managers of asylum and school districts 1 (asylums, hospitals, schools, offices, &c.) J Churchwardens and overseers (vestry offices) 2,486,164 20,900 Carried forward 2?4.,722,6?Q * The loans outstanding are stated in gross ; whereas, in the tables prefixed to the Annual Money Bill laid before Parliament by the Council, they are shown at their net amount, after deducting the value of land let on lease and other assets. The amount is apportioned approximately among the several purposes for which it had been raised. f Including 2,8 3 3 1., the outstanding balance of a loan raised to pay con- tributions towards the construction of a new bridge by the Corporation of Stockton; 7,000^. for a dairy farm; and 12^,253?. in respect of a loan raised to pay the London County Council a balance of moneys due to them under an award of the Local Government Act Commissioners. Municipal Finance and Municipal Enterprise. 23 TABLE II Contd. Loans Owing by the several Classes of Local Authorities. Brought forward Burial Boards and other local authorities] (except parish councils) acting under the > Burial Acts J Rural District Councils (accounts other than those relating to highways) . Sewerage and sewage disposal works 1,497,041 Waterworks 671,091 Hospitals 146,298 Cemeteries 59,341 Allotments 21,582 Street improvements 3,664 Private improvement works 17,556 Other purposes 29,988 Highway Authorities in Rural Districts Turnpike Trustees Parish Councils. Purposes of the Burial Acts 137,184 Parish rooms, parish offices, vestry halls,"! and parish halls / Recreation grounds 356 Allotments 298 Public lighting 1,476 Other parish property 400 Drainage, Embankment, and Conservancy'} Boards / 2 >70,332 Commissioners of Sewers (extra-metropolitan) 73,340 Commissioners of Baths and Washhousesl and certain other authorities adminis- > tering the Baths and Washhouses Acts.... J Commissioners for Public Libraries and"\ Museums and certain other authorities ad- > ministering the Public Libraries Act, 1892 J Commissioners of Markets and Fairs Port Sanitary Authorities. Hospitals, &c Conservators of Commons and Trustees of\ certain Open Spaces J Bridge and Ferry Trustees Trustees of certain Metropolitan Squares .... Salmon and Freshwater Fishery Conser- 1 vancy Boards j Total ., 254.722,639 1,962,345 2,446,831 61,787 9,435 147,761 2,143,672 288,418 106,727 29,958 35. 2,550 ',544 262,017,152 24 Municipal Finance and Municipal Enterprise. Return (ordered by the House of Commons on 4th August, 1898, and presented 6th March, 1899) of the water, gas, tramways, SUMMARY NOTE OP THE The Principal Undertakings in respect of which particulars are given in this Return are Working Class Dwellings, and Piers, Quays, <&c. Totals in respect of each of these 1 2 3 4 Capital. 5 6 Name of Undertaking. Total Capital, inclusive of Borrowed Capital, provided by Corporation. Amount of Capital Borrowed. Amount of Capital Borrowed which has been Paid Off. Balance of Capital Borrowed which was outstanding at 31st March, 1898. Amount in Sinking Fund or Loans Fund at 31st March, 1898, in respect of Capital Borrowed. Waterworks 4,8, 414,800 46,546,391 <, 140,486 41,570,880 I 3*2 ^08 Grasworks 20,1 7C 764. 19,254 350 2 4.C7 2 2Q 15 796 500 Tramways . 321? 6<4. 2,689,384 4.00 3 7 7 2 190 007 Electric lighting Markets 3>4 l6 >7n 4.,77o,?oi 3,108,533 4,211,695 108,848 i,?6i,7n 361,522 68 076 576,764 4,315,307 5224 95> 6 7 143,029 4.04. Total 88 I <2 5i7,i26 435,94 2 304,499 454,304 99,25 6 902,612 3,336,918 302,670 168,755 204,826 119,414 1,744,361 1,180,208 133,39 2 137,320 249,908 4,871 1,699,322 772,535 90,705 126,659 155,681 46,829 15,211 37,333 8,488 3,747 460 2,268 69,418 61,808 13,048 37,567 I2 ,5H 324,780 35> 6l 3,842 197,495 21,257 8,672 127,535 H>353 21,837 175,427 709 13,660 8,898,376 5,319,597 3,6i3,668f 3,127,271 81,167 are included in Col. 3, particulars in respect of which required for Cols. 4 and 5 cannot be which required for Cols. 3 and 4 cannot be given. representing the excess of working expenses over income in certain undertakings. not appear in this return, as such undertakings have not been considered to be of the kind contemplated by the order of the House. The JOUBNAL OF THE EOYAL STATISTICAL SOCIETY, Vol. LXIII, Part III (September, 1900). OF THE UNIVERSITY OF HABRISON AND SONS, PRINTERS IN ORDINARY TO HER MAJESTY, ST. MARTIN'8 LANE. THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL FINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO SO CENTS ON THE FOURTH DAY AND TO $1.OO ON THE SEVENTH DAY OVERDUE. MAR 5 1934 im- LD 21-100m-7,'33 M/7