3 1822 00639 6758 WV}, i^rtt'^l^J'^ Job n^i>n 11^ 7/^ THE UNIVERSITY LIBRARY ■ UNIVERSITY OF CALifORNIA, SAN DIEGO LA JOLLA, CALIFORNIA UNIVERSITY OF CALIFORNIA. SAN DIEGO 3 1822 00639 6758 BOOKS BY FREDERIC C. HOWE Published by CHARLES SCRIBNER'S SONS European Cities at Work. 12ino. net, SI. 75 Wisconsin: An Experiment in Democ- racy. 12mo net, $1.25 Privilege and Democracy in America. 12mo net, $1.50 Tlie British City: The Beginning of De- mocracy. 12mo . . . net, $1.50 The City: The Hope of Democracy. 12mo net, $1.50 EUROPEAN CITIES AT WORK U S£ ■28 O ^2 ^5 i?S EUROPEAN CITIES AT WORK BY FREDERIC C. HOWE, Ph.D. AX7THOB OF "THE CITY: THE HOPE OF DEMOCRACY," " THE BBITISH CITT: THB BBQINNINQS OF DEMOCRACY," "PRIVILEGE AND DEMOCRACY IN AMERICA," "Wisconsin: an experiment IN democracy" NEW YORK CHARLES SCRIBNER'S SONS 1913 COPTBIOHT. 1913, BT CHARLES SCRIBNER'S SONS Published May. 1913 TO NEWTON D. BAKER A MAYOR WITH VISION THIS BOOK IB AFFECTIONATELY DEDICATED PREFACE Some years ago I wrote a book which bore the title "The City: The Hope of Democracy." The subtitle was received with protest by some, with incredulity by others. There was little to justify hope at that time. Our cities were under the searchlight, and the evils dis- closed seemed inherent in great industrial aggre- gations of people. How could the city govern itself honestly and efficiently under democratic forms; how could it assimilate great masses of untrained foreign- born people; how could it relieve poverty, vice, and disease? The city seemed to many to be the behe- moth of civilization. Since then there have been house-cleanings all over the land. A new feeling of confidence has arisen, in which democracy is the dominant note. Reform has brought with it the commission form of government, simple, direct primaries, the short ballot, and the abolition of the party emblem on the one hand, and on the other the ownership or control of public-service corporations, the protection of human health and life, the play-ground, and, more recently, the com- prehensive planning and building of cities. Reform viii PREFACE is both political and social. It is already beginning to change the face of our cities. As yet there are but few commanding achieve- ments. We do not think in big community terms. We have not begun to plan and build with a vision of the whole. We do not appreciate the possibilities of city life. But there are cities that justify hope; cities that are administered by trained officials; cities that are built by far-seeing statesmen, and that consciously promote comfort, convenience, happi- ness, life. Such cities are to be found in Germany, and in a less developed degree in the other countries of Europe as well. And this is a study of these old-world cities as they appear to an American; it is a study gained from contact with burgomasters, officials, and busi- ness men in Berlin, Frankfort, Hamburg, Diisseldorf, Dresden, Munich, Vienna, and Brussels; with the mayors and councilmen of Glasgow, Manchester, Liverpool, and London. It is the result of many visits to Europe, one of which was to make a mu- nicipal investigation for the United States Govern- ment ; another was made as a member of the Boston Chamber of Commerce Party in 1911, which went to Europe to study city conditions. It is a study of the things that distinguish the European cities from our own. And the German city is an experiment-station for all of us. It is SLfreistadt, a little republic, with power PREFACE ix to do almost anything for the welfare of the people. The city is sovereign, and it uses its sovereignty to build in a conscious, intelligent way. It can mould its destiny as did the cities of ancient Greece. It controls property as well as people. It acts with a vision of the future; not alone of the city, but of the lives and comfort of the people as well. The Ger- man city is being built something as Pericles built Athens, as Louis XIV planned Versailles, as the two Napoleons rebuilt Paris. Twenty years ago the phrase "municipal house- keeping" was common in Germany. This expressed the current ideals of city administration. Thought has progressed since then. Men now talk about "conmiunity living." Officials seem to realize that the city involves vicarious costs that can and should be shifted from those who suffer from city conditions onto those who profit by them. And already the cities of Germany, and to a con- siderable extent those of Great Britain and the Con- tinent, have demonstrated that many of the sac- rifices of the modern industrial city can be avoided. Poverty can be reduced, and the life of the people be enriched in countless ways not possible under rural conditions. Cities realize that many activities are so closely related to the life of the people that they cannot with safety be left in private hands. There must be provision for play, for leisure, as well as for education. The land-owner and the house- CONTENTS PAOB Preface ▼" CHAPTEB I. The Birth of the German City 3 II. Impressions of European Cities 11 III. DtJSSELDORF and MUNICIPAL SOCIALISM 37 IV. Frankfort-on-the-Main — An Example of Busi- ness Administration 68 V. Town Planning and City Building 86 VI. Cities for People Ill VII. Protectinq the Worker 125 VIII. The Vision of the German Citt 143 IX. The Housing Problem in Germany 156 X. Socializing the Means of Transit 177 XI. New Sources of Revenue; The Unearned In- crement Taxes 189 XII. The Budget of the German City 208 XIII. How the German City is Governed 219 XIV. The Business Men Who Rule the German City AND Their Ideals 243 XV. The Explanation of the German City .... 252 XVI. Impressions of the British City 271 XVII. How the British City is Governed 293 xiii XIV CONTENTS CHAFTEB PAOa XVIII. The Explanation op thk British City .... 309 XIX. Municipal Ownership op the Gas Supply . . . 328 XX. Municipal Transit in Great Britain 334 XXI. The American and European City — A Compari- son 346 Index 363 ILLUSTRATIONS Letchworth Garden City Frontispiece TACINa PAGE German Railway Stations 12 Town Planning Suburban Allotment, Dusseldorp ... 44 Frankfort-on-the-Main. Municipal Theatre and R6- MERBERG 70 Streets: Charlottenburg and Frankfort-on-the-Main . 94 Elevated Railway Station, Berlin, and River Embank- ment, DUSSELDORF 106 Palm Garden, Frankfort, and Exposition Park, Munich 148 Berlin Model Apartments. Essen Altenhof. Work- men's Colony 166 The Elevated Railway in Berlin 184 City Halls, Dresden and Munich 258 Port Sunlight, Garden City, Residence Street .... 288 Port Sunlight Back Gardens 306 EUROPEAN CITIES AT WORK CHAPTER I THE BIRTH OF THE GERMAN CITY I KNOW of no cities in the modem world which compare with those which have arisen in Germany during the past twenty years. There are none in Great Britain, from which comitiy official delega- tions constantly cross the North Sea to study the achievements of the German city. There are none in France, in which country the building of cities has made but httle progress since the planning projects of Baron Haussmann made Paris the beau- tiful city that it is. There have been three great periods in which the building of cities inspired the dreams of men. In the age of the Antonines the Roman people gave them- selves with enthusiasm to the embelhshment of their capital. The public structures, temples, amphithe- atres, and palaces then erected still remain the won- der of subsequent centuries. Durmg the later Mid- dle Ages the cities of Italy, France, Germany, and the Netherlands erected similar monuments expres- sive of the pride awakened by their freedom. Now again in the twentieth centuiy the German people are expressing their love of the fatherland in monu- ments of the same permanent character and artistic 4 EUROPEAN CITIES AT WORK splendor. Capital cities like Berlin, Munich, and Dresden, as well as more commercial cities like Diis- seldorf, Mannheim, Frankfort-on-the-Main, Cologne, Leipsic, and Stuttgart, are vying with one another in the beautiful, the orderly, and the serviceable. Important as are the honesty and the efficiency of the German city, it is the bigness of vision, boldness of execution, and far-sighted outlook on the future that are most amazing. Germany is building her cities as Bismarck perfected the army before Sa- dowa and Sedan; as the empire is building its war- ships and merchantmen ; as she develops her water- ways and educational systems. The engineer and the architect, the artist and the expert in hygiene are alike called upon to contribute to the city's mak- ing. The German cities are thinking of to-morrow as well as of to-day, of the generations to follow as well as the generation that is now upon the stage. Germany almost alone among the civilized nations sees the city as the permanent centre of the civ- ilization of the future, and Germany almost alone is building her cities to make them contribute to the happiness, health, and well-being of the people. This seems to be the primar}^ consideration with officials and citizens. It is this that distinguishes the cities of this country from the other cities of the world. Far-sightedness characterizes Germany in all things. The Kaiser seems to see the eagle of the Hohenzollerns not only at the head of his battahons THE BIRTH OF THE GERMAN CITY 5 and flying at the mast-head of his dreadnoughts; he sees not only the merchant marine challenging the supremacy of Great Britain and the German factory- burrowing its way into the ports of the world; he sees as well that his people are being drawn from the countryside and into the cities. Already 49 per cent, of the people are living in towns, while the per- centage living in cities of over 100,000 has increased 50 per cent, in ten years' time. Further than this, the reports of ministers disclose the fact that poverty has come in with the city; that something like 80 per cent, of the population of the larger towns is living in cellars, garrets, or under unsanitar}^ surroundings. And, far-sighted statesman that he is, the Kaiser sees that his regiments and his battle-ships, no less than the mills and the factories, must be manned by strong and well-educated men. These the city is imperil- ling. It is sapping the Hfe of the people. And the Kaiser and his ministers are studying the city as they do their engines of warfare; they are thinking of human beings as well as of rifles; of protecting men as well as of destroying them. All Germany, in fact, seems organized with the definite ambition of becoming the dominant force in the world. This is a conscious purpose, not of the Kaiser alone, not of his ministers, but of councillors, business men, and citizens. The army and navy are but parts of this programme. The university and the technical schools, the colleges of commerce, the 6 EUROPEAN CITIES AT WORK classical and the scientific academies, even the com- mon schools themselves, are part of a national engine designed to produce the highest possible efficiency in 65,000,000 people. Health is studied. Education is adjusted to new conditions. The children are watched over and cared for. There are insurance, pensions, and hundreds of agencies to protect the worker from accidents, disease, and even the in- termittent nature of his work. The railways are owned by the state and are used as an agency to promote the empire. Rates and charges are adjusted to bring fuel and raw materials to the manufacturer and to give him in turn prefer- ential rates to the markets of the world. The rivers Rhine and Elbe are deepened almost to their sources to cheapen transportation and develop new centres of industiy, while canals mtersect the country in every direction. At Hamburg, Bremen, Kiel, great ocean harbors have been constructed in the face of natural obstacles that would have discouraged other peoples, while along the Rhine practically every city has developed docks and harbors, almost any one of them superior to the ocean docks of an American city. Through these harbors cities have been con- nected with the sea, while round about them indus- trial areas have been opened up with cheap manu- facturing sites and the best of water and railway transportation. There is no conflict between the railways and the water-ways, no struggle to strangle THE BIRTH OF THE GERMAN CITY 7 the canals or to prevent competition. Transporta- tion is open to all on equal terms, irrespective of the size of the undertaking. In this imperial movement the cities have become one of the chief agencies in the industrial develop- ment of the country. They compete with one an- other, but never against the empire. The business men who rule them seem to think in social rather than in individual terms. They have a sense of team- play, of co-roperative effort, of being willing to sacri- fice their immediate individual interests to the wel- fare of the community. Cities co-operate with the state, they spend generously for education, they make provision for hospitals, for recreation, for housing the people. The city partakes of the spirit of the em- pire. It inspires a kind of loyalty I have never seen in any other country in the world. Germany is treating the new behemoth of civilization, the mod- ern industrial city, as a creature to be controlled, and made to serve rather than to impair or destroy humanity. She is doing this through city planning, the new art of city building; through education; through sanitation and hygiene; by uniting the ex- pert with the administrator, and by making science the handmaiden of politics. The German city, like our own, is the product of the last generation. Only its location, its traditions, its royal palaces, and its beauty are old. Diisseldorf had but 70,000 people in 1871; it now has 356,000. 8 EUROPEAN CITIES AT WORK Frankfort-on-the-Main has grown from 80,000 in 1871 to 411,000 in 1910. Berlin was a capital city of but 800,000 in 1870; to-day it contains 2,064,153 people. There are thirty-three cities in Germany whose combined population is over 12,000,000 peo- ple. This is 20 per cent, of the whole, while the total urban population equals 49 per cent, of the total. We are accustomed to think that the American city is anomalous in its growth. But the American city is typical of the industrial world, whether it be in Germany, England, France, Belgium, or Italy. The city is a product of the nineteenth century; it is a by-product of steam, electricity, and transpor- tation. Civilized life has become urban, and to an increasing extent metropolitan. And in all proba- bility the city will continue to contain an increasing percentage of the people in all civilized countries. It is the official recognition of this fact and the organized effort to control the urban problem that makes the German city unique among the cities of the world. The German city has sprung into existence during the past thirty years. There were but few industries of any importance prior to the formation of the em- pire in 1871. In 1816 less than 2 per cent, of the population of Prussia lived in cities of over 100,000 population. By the middle of the century the per- centage had crept to only 4 per cent. This was the era of immigration to the United States. Only after THE BIRTH OF THE GERMAN CITY 9 the war with France did Germany respond to the industrial revolution which began in England in the latter part of the eighteenth century. The awaken- ing came with the formation of the empire and the French indemnity paid on the close of the Franco- Prussian War. At that time 68 per cent, of the pop- ulation was engaged in agriculture. By 1907 the percentage had fallen to 28 per cent. In the latter year the percentage engaged in industry amounted to 43 per cent, of the total. Almost the whole in- crease in population in the last generation, or about 24,000,000, has been added to the cities. In 1871 only 25 per cent, of the people lived in towns of more than 5,000 people, at which time there were but nine cities of over 100,000 population. There are now forty-seven. According to the census of 1910 there were seven cities in Germany with more than half a million people. They are Berlin (without including the suburbs), 2,064,153; Hamburg, 936,000; Munich, 593,053; Leipsic, 585,743; Dresden, 546,882; Co- logne, 511,042; and Breslau, 510,929. There are four cities with more than 300,000 people. They are Frankfort-on-the-Main, with 414,406; Diisseldorf, with 356,733; Nuremberg, with 332,539; and Char- lottenburg (a suburb of Berlin), with 304,280. Twelve other cities have more than 200,000 and twenty-four others have from 100,000 to 200,000 people. 10 EUROPEAN CITIES AT WORK Q ^ < r/} w W H Ph H H g O a u H- 1 o ^ H P H w m w H H ^ ^ 1— ( 1— ( a ^3 I— 1 m § H a H^] « 'A -Jj < % P5 Ph P s ElH o O >H (^ H o •— ( Q CO »— t W Oh HH <1 H 1— 1 P^ U W ^ a o H m H H O Q o t=^ !^ 1— 1 »-H t^ >^ o 'A yA < ^ ^, ^ H o W H d 00 c ■*. <^ o c 05 c Oi rH 1-H rH S; (N CC CO CO CO OC O cc CO '** •* 00 •* GO t^ ": lO ^ 00 'id rH CO "<}< 00 ^ i-i C<1 c^ 1-H (N 1-H 7-i :?S H ■< o c o c o c o c o o o »o O » CO fc CO CO CO CO CO CO CO CO CO (M p o o o c o c o £ o o o >o ffi .— 1 rH rH rH rH r- »— 1 rH T^ y-\ rH O f- s o a 0> c: o c- O C" o o 05 O «« rH rH ' o^ ' w- ^ ' w ^ y-* i-i w^ S CO 05 lO iM lO (M 00 -* CD C5 OS t^ O (M ?:S t^ OC (M OC CI CO •<*< CO CO lO rH a> ■< TjTo CO"rH <£(C CO IM <* CI oo ■>* 1^ O rH C^ rH CO ■<* (M C i !>: Tji t^ l> (M C^ CO (N lO (M lO CO I> CO o: CO CO 00 -^l^ -^O r-{ 1-H c-c^ g (M 00 !>■ Oi ■* rfi ,-H CO I> C. CO iO^O_ CO »o qI lO (N (N-c^i r-Tio •*"co IC rn" cfco o CO rt* lO l^ 00 a- O CO t^ CO CD O (2 CO CO IM CO CO ^2 1-H (M <© OS T-H (M CO CO CQ -*< ■* CO § 05 O S8 CO C lo c C5 CO CO ic 00 o o o c Oi c^ OS »o CO (N «o a O iC o cc o »o 00 o 0^ O lO IC ,-H (n"o rH~eO C^ CJ CO 00 05 CO LO 00 -* r^ CO CO CO "^ CO CO (2 (N CO (M (N OC 00 lO CO o CU lO c^ LO ■* CO C CO^fN ■* o S iS O »o r^ lO '^ .-H (N a. ^ 1 > c c 6 bX) > s 2 3 a 1 c c 'c S Si Oft mc "aO ^K a.z pio 1 CHAPTER II IMPRESSIONS OF EUROPEAN CITIES No Baedeker is needed to advise the traveller he has entered a new countiy as he crosses the boun- daries of Holland, Belgium, or France into Germany. If he enters at Cologne, Diisseldorf, or Frankfort, as many travellers do, he comes at once to the most finished cities of the modern world. Here in south Germany, cities have grown with the rapidity of our own; here is industiy like that of Cleveland, Detroit, or Pittsburgh; like that of Sheffield, Birmingham, or Manchester. Here are iron and steel mills, machine shops, silk, woollen, and chemical industries that have made "made in Germany" a nightmare to Eng- land. Here along the Rhine are cities that might be like our own factory towns. They might be "schlecht und billig,^' ragged and unkempt, in need of a survey to arouse the people to the dangers of their slums, the backwardness of their schools, the poverty of parks and playgrounds, the lack of beauty and charm. These cities might be like Pittsburgh, Milwaukee, Buffalo, Cleveland, or a score of other American cities which have assumed metropolitan proportions during the last twenty years. 11 12 EUROPEAN CITIES AT WORK But these German industrial cities are not mean and tawdry. They are not like the manufacturing cities of America or the mill towns of the north of England. Their factory owners do not hasten to Berlin or Paris to escape the dirt and smoke which their mills create. They remain at home and devote themselves to the improvement of their cities, to making them attractive and livable. And in this they have succeeded. For the cities of south Ger- many are the best examples in the world of what can be done with this problem that has become our despair. They do more for their people than any cities I know, and they do it honestly, efficiently, and well. That seems to be the ambition of city officials and business men. That seems to be the ambition of the people, who have a wonderful pub- lic spirit. The railway station is a symbol of the whole. It is like the portal of a cathedral or the towering gate of a mediaeval town. It is conmiodious and com- manding. There is ever}-- provision for comfort and safety. Frankfort, a city of 415,000, has a station costing $10,000,000. It was built when the city had only half of its present population. The stations of Cologne, Diisseldorf, Hamburg, Bremen are all of the same architectural splendor. The German city would be ashamed to have its gateway anything else. In front of the station is the station-place, the bahn- hofplatz. In the foreground is a formal flower-garden in ■Hiifl Frankfort Railway Station. Dresden Railway Station. Railway stations are of splendid proportions. Tracks rarely disfigure the city and are built for permanence and beauty". IMPRESSIONS OF EUROPEAN CITIES 13 surrounded with clean, well-paved roadways for traf- fic. Here the street railways converge. There are places for carriages and pedestrians. Round about the bahnhofplatz are hotels, restaurants, and shops of uniform height and in harmony with the station itself. The open space is usually a half circle, and is care- fully designed for use and beauty. Broad streets radiate out from the bahnhofplatz, like the ribs of a fan, to different parts of the city. They are usually the retail business streets. The railway station is but one of several city cen- tres carefully planned as such. There is no dirt or smoke and little noise and confusion. There is dignity, comfort, convenience. Obviously the city's gateway is under public control. It is the twentieth- century adaptation of the mediaeval city gate that has been so carefully preserved in Munich, Cologne, Diisseldorf, and elsewhere. We have made a beginning of building gateways to our cities. The Union Station at Washington is of commanding size and classic design. It opens into a spacious plaza which at night is brilliantly il- luminated. In the distance the Senate building and Capitol rise on Capitol Hill. The intervening space has been razed of buildings so as not to obstruct the vista. From this centre the street railways radiate. The gateway of Washington is probably the most monumental in the world. It is worthy of the cap- ital of the nation. 14 EUROPEAN CITIES AT WORK The new Pennsylvania and New York Central stations in New York are also of magnificent pro- portions. There is nothing in Europe to compare with them. But with few exceptions our cities have been compelled to shift, as best they can, with un- sightly, inconvenient, and inadequate stations. The new Hohenzollern bridge across the Rhine at Cologne has commanded something of the thought that inspired the architects who spent centuries on the building of the Cologne cathedral. It is tj'pi- cal of the care shown railway and passenger bridges all over Europe. The approaches are adorned with massive towers and statuary, while the lines of the bridge add greatly to the beauty of the city. The same concern is manifested in the railway approaches. The railway is an incident. It does not ravage whole sections of the city, its water-fronts and dwelling areas. There are no grade crossings. The overhead work is inconspicuous and is designed for beauty. The sides of the tracks are sodded with grass. There is every possible protection against danger. We are in the habit of speaking of the superior railway service in America, but we overlook the ugly trail the railway makes. It gives us speed, but at a terrible cost to human life. It ignores the rights of the community to cleanliness and beauty, and im- poses a heavy cost on all of us in the way it dis- figures the community. There is no protracted warfare in Germany for the IMPRESSIONS OF EUROPEAN CITIES 15 possession of streets like that waged for years to force the New York Central off Eleventh Avenue in New York. There is no coercion to compel a city to give up property worth millions as a considera- tion for the building of a railway station. There is no prolonged htigation over water-fronts like that which has exhausted many of our cities. There are no dirty, incommodious stations. In Germany the railway is an integral part of the community. It exists to serve. It is owned and operated by the state. As one leaves the station at Cologne the great Gothic cathedral rises high above the bahnhofplatz. A few minutes' walk along a shaded river embank- ment brings one to a broad parkway which encircles the older part of the city. It is the Ring Strasse, built on the site of the old fortifications which pro- tected the Rhine cities from their warring neighbors. As the city outgrew its mediaeval shell, population leaped over the fortifications and spread out into the country. Cologne acquired the fortifications from the nation at a cost of $2,950,000, and converted the encircling belt into an octagonal parkway which separates the old city from the new. It was laid out by experts and adorned with gardens and flow- ering plants. Upon it were erected fine residences and public structures. The ring strassen of Vienna, Frankfort, Bremen, and others of the older cities have been treated in the same way. They have 16 EUROPEAN CITIES AT WORK been laid out with great care and are the most com- manding streets in Europe. Cologne is a city of 511,042 population. The official projects for its suburban development are like those of most German towns. Uniformity has been discarded and the streets have been made as uncon- ventional as possible. The main traffic thorough- fares are broad and spacious, but the side streets are designed to discourage traffic so as to be cozy, quiet, and restful. The}^ are planned for variety. The checker-board street so universal in America is rarely used in Germany. It is too monotonous. It affords no vistas of house fronts. It is bad for traffic. Many of these suburban streets are designed to be narrow and crooked. Some of them come to a dead end. There are numerous small parks and play- grounds. Streets are planned by artists and are treated with almost reverential consideration. Even the near-by iron and steel centre of Essen reflects the German idea of what a city should be. Essen is the Pittsburgh of Germany. Here are the iron and steel mills of the Krupp Company. From Essen come the engines of destruction for the armies and navies of the world. Essen has a population of 294,629. It is almost exclusively a mill town, most of the workingmen being employed by the Krupp Company. The city has few natural advantages, and does not compare in beauty with Diisseldorf or Cologne. Yet it is clean, wholesome, and free from IMPRESSIONS OF EUROPEAN CITIES 17 the dirt and ugliness that characterize Pittsburgh, parts of Cleveland, Chicago, and Milwaukee, wher- ever the furnace and the foundry have made their home. There are parks and trees. Many thou- sands of workingmen are comfortably housed by the Krupp Company or the municipality in beauti- ful detached cottages or in model tenements sur- rounded by gardens. Rents in Essen, as in other German towns, have risen with great rapidity in recent years, thus caus- ing congestion and overcrowding. In the private apartments workingmen 's rooms rent for thirty dol- lars a year. In contrast with this the one-family houses of the Krupp Colony rent for from forty-nine dollars to fifty-five dollars a year. The Krupps de- scribe their plan of housing as ''one of enlightened selfishness, serving in the first place to attract work- ers and foster a filial loyalty, as shown by the small number of strikes at the works. By being a land- lord itself it heightens the competition among the other landlords^' This is the motive of cities and co- operative building societies. By building houses they check the rise of rents and the greed of private landlords. Around the city of Essen are garden colonies like the garden villages of England, one of them, Alten- hof, being inhabited only by retired and infirm work- men, who occupy the cottages rent free. There are wonderful hospitals, sanatoriums, and convalescent 18 EUROPEAN CITIES AT WORK homes. Even in Essen the spirit of the fatherland, that holds human Hfe in such high regard, prevails in the minds of city officials and employers. As one sails up the river Rhine, city after city presents the same finished appearance. The river banks are not disfigured with factories, warehouses, and private docks such as line the water-fronts of our cities. Nor are they appropriated by the railroads. In Bonn, Coblenz, Mainz, and Wiesbaden the em- bankments are clean, orderly, and beautiful. Land- ing stages are provided for passenger boats and freight craft; there are wonderful harbors with hy- draulic and electrical cranes for the economical hand- ling of freight; there are pubHc bath-houses and en- closed basins for pleasure-boats. The embankment is a promenade-way and is lined with trees. There is provision for the widest possible use of the water- ways for business and pleasure. The water-fronts of rivers, canals, lakes, or inland water-ways are almost always in public rather than in private hands. Hamburg, Bremen, and Liibeck are city states. They are the only free cities which remain of the old Hanseatic League. They occupy a position in the empire similar to that of Prussia, Bavaria, Baden, or any one of the twenty-five states that compose it. They have about the same status as would an Amer- ican state and city combined. And they are as proud of their independence as were the Romans, the Florentines, or the Genoese of earher days. For IMPRESSIONS OF EUROPEAN CITIES 19 centuries they were members of the Hanseatic League of towns; for centuries they maintained their liber- ties against the encroachments of surrounding pow- ers. They had fleets and armies of their own; they made war and treaties. They became rich in wealth and in commerce; they developed a life of their own and created among their people a local pride that continues to distinguish these cities even to-day. It is a greater honor in Hamburg to be one of its sena- tors or burgomasters than to occupy a seat in the Imperial Reichstag. Hamburg and Bremen are more like American cities than any in Germany. Officials think in terms of business, of commerce, of the promotion of over- seas shipping. The street railways of Hamburg are in private hands, and if one comes from Diisseldorf or Frankfort, where public ownership prevails, the difference in service, in the courtesy of employees, and in the many provisions for comfort, that seem to follow in England and Germany as a matter of course on pubhc operation, is at once manifest. Nor is there that concern for the welfare of the people, for recreation and beauty, that one finds in the south German towns, where the business men have risen above a limited commercial point of view. The im- pression one gets of Hamburg is of a city that is run for business. Hamburg is situated on the river Elbe, seventy miles from the sea. Its harbor is its life. The har- 20 EUROPEAN CITIES AT WORK bors of Boston, New York, and many other seaport towns in America have far greater natural advan- tages, but Hamburg has developed its limited op- portunities until it has become the greatest seaport on the continent and, along with Bremen, is the point of clearance for the trade of Germany, Aus- tria, and Russia. Its chief competitor is Antwerp. The foreign trade of the city is colossal. The harbor and the docks are owTied by the city and are equipped ^ith railway tracks, warehouses, and wharves to facilitate the handlmg of vast quantities of freight in the most economic and speedy way possible. This is characteristic of German harbors. The docks and warehouses and machinery for trans- shipping freight from vessel to vessel or from water to land are all mider public control and are operated as a unit. But the thing that distinguishes the harbor of Hamburg is its free port, which is a survival of the old free city. Inside the main harbor is a free har- bor into which ships can come, load and unload, ship and transship cargoes wdthout the payment of tariff duties. Customs dues are only paid when goods enter the country. "When Hamburg became part of the empire it abandoned its free-trade pol- icy but retained a free harbor to protect its trade and commerce. Goods may be brought into the free port and reshipped to other vessels or stored in ware- houses without visitation from the customs authori- IMPRESSIONS OF EUROPEAN CITIES 21 ties. Under this arrangement vessels from the Ori- ent and the Occident, from North and South Amer- ica, from England and Africa can transship their cargoes and leave for other parts as freely as in an English port. The free harbor is a clearing-house or counter through and across which individuals and nations do their bartering on a large scale. Experience has shown that commerce will travel many miles to avoid a tariff wall. For commerce hates customs barriers, and Germany has lured the vessels of the world to the North Sea by this simple device for avoiding the disasters which everywhere follow the imposition of customs taxes. In the heart of Hamburg is the Alster, which con- sists of two lakes which form the recreational cen- tre of the city. Years ago the Alster was low-lying marsh-land of little value. Some of the land be- longed to the city, some of it was acquired by pur- chase. The land was then deepened and reclaimed as a water park. Surrounding it on three sides is the residential part of the city, so that Hamburg somewhat resembles Geneva. The shores are laid out in parks and driveways with frequent gardens. In the business section the water-front has been con- verted into a wide esplanade with cafes and restau- rants. In other sections are public bath-houses, while the Alster itself is covered with innumerable motor-craft and sail-boats. Small power-boats do a thriving business to the many caf^s which sur- 22 EUROPEAN CITIES AT WORK round the lake, where the population gathers in the evenings and on hoHdays. Navigable canals run in many directions upon which a large part of the local traffic is carried on. With the exception of Venice, probably no city in the world possesses as thoroughly developed and as intensively used sys- tem of inland water-ways as does Hamburg. The buildings which surround the Alster are of harmonious architecture. Their height and distance from the roadways are fixed by the city in order that the entire territory shall resemble a parkway. The Alster is probably the most beautiful piece of inland water in any city in the world. Charles River Basin, in Boston, is the only water-way that compares with it in this countr}^ It is almost the only at- tempt made by our cities to conserve our wonderful advantages in this respect. Berlin, like Boston, is a city within a circle of cit- ies. Its population (1910) was 2,064,153. To the casual traveller the charm of Berlin is a manufact- ured charm, much as is its architecture, its parks, its art. It is pre-eminently a new city which the present Emperor has determined should vie with Paris in its splendor. But Unter den Linden fails to be a second Champs Elys^es. It does not compare with the Ring Strasse of Vienna. The commanding group of buildings about the Lustgarten, with the imperial palaces, opera-house, university, cathedral, and museums, is imposing in its splendor. The IMPRESSIONS OF EUROPEAN CITIES 23 Sieges-allee in the Tiergarten, with the statues of the Brandenburg rulers, has never commanded the ad- miration of the Berliners, nor has the new Reichstag building at one of its ends on the Konigsplatz. Berlin is distinguished for its beautiful suburbs, for the planning projects of the surrounding towns, as well as for its municipal undertakings, hospitals, sanatoriumS; labor bureaus, and care of the poor. Its administration is a model of efficiency and far- sightedness. The city has a big municipal sense and officials seem to think in metropolitan proportions. It is, and for a generation has been, consciously built as the capital of the empire. Now a Greater Ber- lin planning project is being undertaken, for which prizes amounting to $40,000 have been offered, and for which the architects and town-planners of all Ger- many competed. Just as Paris was planned by Louis XIV and the two Napoleons, so Berlin is dreaming of a truly cosmopolitan city, planned from centre to circumference as a capital worthy of the ambitions of the fatherland. The system of sewage-disposal is one of the great undertakings of the city. In former times Berlin drained its sewage into the Spree, but with the com- pletion of a new water supply proper drainage was deemed necessar}^, not only for the health of the city, but as a means of keeping pure the rivers and canals which intersect it. After prolonged study the city adopted a system of natural purification by using 24 EUROPEAN CITIES AT WORK the sewage as fertilizer on the city-owned farms bought for the purpose. To the north and south of the city are municipal sewage-farms, "vv^th a total area of 40,000 acres, purchased as agricultural land many years ago. The city is divided into drainage dis- tricts according to the topography of the land. The sewage from various districts converges at centres from which it is pumped to the sewage-farms on the different sides of the city. Here it is treated and spread out over the land, which, by this proc- ess, has been converted into the richest sort of soil. When acquired, the land of the disposal farms was of Httle value for intensive agriculture. Nearly $4,000,000 was spent in laying out the property, in trenching and preparing it for cultivation, and in equipping it with necessary' improvements. Six thousand acres are leased in small holdings to cul- tivators, while the remainder is cultivated by the city itself. The total cost of the undertaking ex- ceeded $30,000,000, but the indebtedness has become little more than nominal through the increase in the value of the land. The sewage-farms alone could be sold for more than enough to Hquidate the total city debt for all purposes. Aside from this, they are a source of profit. For intensive cultivation upon the enriched soil has made the farms enormously pro- ductive. They have been laid out in orchards and nurseries. Big crops of vegetables are grown on the market-gardens. The whole territorj^ roimd about IMPRESSIONS OF EUROPEAN CITIES 25 the farms is clean and wholesome and apparently free from any unhealthy or unpleasant odors such as would be expected from the surface use of the sewage of a city of 2,000,000 people. One returns to old Germany as he journeys to the south through Dresden, Nuremberg, and Mu- nich. Especially does the old town of Rothenberg suggest the life of mediaeval Germany. By official decree the city has been protected from invasion by railroads, street railways, and modem innovations. The old walls, the narrow streets, and overhanging structures are carefully preserved, as is the institu- tional life of the city. Rothenberg is a monument of the past, as carefully preserved as are the art treasures of the country's museums. More than any other city in Europe, unless it be Paris or Florence, Dresden makes a commercial re- turn from its beauty. It is a residence city par ex- cellence. There is a permanent English, American, and foreign colony that numbers many thousands. Millions are brought annually to the city by trav- ellers and permanent residents. With all its beauty, Dresden is a factory town with a great variety of industries. It has grown with great rapidity and has a present population (1910) of 546,882. But in- dustry has not been permitted to disfigure the city; it has in no way diminished its charm. There is no dirt or smoke, no suggestion of the towering chim- neys of ugly factories, nothing of the pervasive com- 26 EUROPEAN CITIES AT WORK mercialism of the British and American city. Indus- try is subordinate, no matter how important its claims may be. Nor is there much obvious poverty, although poverty of course exists. I do not remember ever to have been oppressed by the factory in any town in Germany, with the possible exception of Essen, Barmen, and Elberfeld, although I spent months with business men in fac- tories and industrial districts. While Germany has devoted her efforts for the promotion of industry, she has not permitted it to become a nuisance to the community. Dresden is the capital of Saxony, one of the king- doms of the German Empire. It was planned as a capital city long before city-planning became a rec- ognized art. The palace of the King forms the cen- tre of a group of buildings, including the cathedral, the art gallery, and the new town hall. The Zwinger is an enclosed garden of Renaissance architecture connected with the palace group. There is the most perfect harmony in the architecture of these build- ings, which rise high above the Elbe, still navigable from the sea at Hamburg. The high banks are ter- raced down to the water's edge with a series of em- bankments. Below is a busy river traffic; at inter- vals bridges of splendid design span the river, while the embankment itself is a promenade-way which has earned for itself the name of the "Balcony of Europe." The rulers of Saxony were lovers of the IMPRESSIONS OF EUROPEAN CITIES 27 fine arts. They encouraged the opera, built palaces and museums, and gathered together the master- pieces of the world which draw thousands to the city each year. Close by Dresden is the garden-city of Hellerau, the most successful garden-city in Germany. It is but a few years old but has led to the promotion of a score of similar projects. Housing experts in Germany, as in Great Britain, look upon the garden-city as the most promising of all proposals for the housing of the working-classes. Dresden, too, has just completed what is said to be the most complete slaughter-house in the world. It cost over $4,000,000 and is almost as artistic in its architecture as a world's fair. Here all meat sold in the city must be slaughtered under city supervi- sion and by the most humane methods possible. In 1911 an exposition of hygiene was held in Dres- den. It was first suggested by a private individual but was financed by the city and the state. It was planned on an ambitious scale and was designed to teach Germany what is being done all over the world for the prevention of disease and the promotion of health. There were models of hospitals and sana- toriums; there were exhibits of the common diseases so portrayed by photographs and illuminated models as to be easily imderstood even by children. There were kinetoscopic exhibits of class gymnastics and photographs of methods for improving the health 28 EUROPEAN CITIES AT WORK of school-children, as well as elaborate displays of the value of food products. School apparatus, play- ground equipment, all that Germany is doing in its fight for health, was presented to the tens of thou- sands of adults and children who came to view it from all over the empire. America was almost the only nation not represented, while the meagre ex- hibits of other countries showed by comparison the nation-wide concern of Germany for the health of her people. Munich, the capital of Bavaria, has a charm of its own, a charm for many possessed by no other city in Europe. It boasts of its gemuthlichkeit, its com- fort, of the universal sense of community living. The city has been embeUished by extravagant rulers, who bequeathed a heavy indebtedness to Bavaria, but left a heritage of great beauty as well. Yet Munich is a manufacturing city of 593,053 people (1910), while its administration is one of the most enterprising in Germany. Two things especially im- press the visitor and characterize the planning of the city. One is the number of splendid civic centres, each with a group of public buildings and each rep- resenting a function of the city's life. There is the Hofgarten in front of the palace, to which the people drift on summer afternoons to listen to the music in the open-air cafes. Here whole families visit with their friends. The city's art treasures are housed in IMPRESSIONS OF EUROPEAN CITIES 29 four classic structures about another centre, while the university buildings form another. The city hall, a splendid piece of Gothic architecture, flanks Marienplatz, which was the old market-place of the city. This is the business centre as it was in medi- aeval times. The towered gates about the city hall have been preserved and the environing architecture has been made to conform to the old. Within the past few years a new centre has been developed on the opposite side of the river about the municipal opera-house. Munich, like other German cities, is engaged on a comprehensive planning project which includes the suburbs for many miles around. Recently a com- petition was held which was participated in by engineers and architects. The competitive plans provided for the growth of half a century at least. One of the features of the proposals is the establish- ment of a large number of new centres in the sur- rounding suburbs, about which the municipal build- ings, school-houses, and other public structures will be erected. These centres will tend to the wider distribution of population and the creation of local activities and life in each suburb. No other city in Germany has as many splendid vistas as has Munich. This is the second feature which distinguishes its planning. Streets terminate against a public building, terrace, or monument, many of which have no other value than orna- 30 EUROPEAN CITIES AT WORK mentation. Copies of the triumphal arches of Rome have been reproduced across streets, while museums, galleries, and other structures are located at conspicuous spots, usually across a fine avenue, and designed to harmonize with their surround- ings. The city has recently erected a splendid opera- house, to repair its error in refusing to become the patron of Wagner. Musical festivals and an opera season are held each summer to which thousands come from all over Europe. A large subvention is paid to the theatre, as is the custom in many German cities. On the outskirts of the city a group of buildings has been erected as a permanent exposition at a cost of $2,000,000, exclusive of the cost of the land. About the exposition halls is a great garden with restaurants and cafes which is the favorite play-place of the people. Here sym- phony and military band concerts are given daily. In the buildings various kinds of industrial, elec- trical, and art exhibits are held for the promotion of efficiency and the attraction of visitors. Similar permanent exposition halls are being built by other German cities in competition with one another for business. They form part of the big- visioned busi- ness and educational ideas of Germany. They stim- ulate industry and attract travellers and have a direct commercial value to the city. Along with Diissel- dorf, Frankfort-on-the-Main, and Dresden, Munich IMPRESSIONS OF EUROPEAN CITIES 31 is one of the best examples of big-visioned municipal life in Europe. Vienna vies with Paris in its claims to be the most splendid city in the world, and here, as in Germany, beauty is the result of the most scientific and intel- ligent planning. Prior to 1850 Vienna was most congested. Its population was huddled behind the massive fortifi- cations which completely surrounded the town and restrained it within an area of about one square mile. Round about the fortifications was a broad moat outside of which were military and parade grounds which, for military reasons, had never been built upon. The title to the fortifications and parade grounds was in dispute. They were claimed by the Emperor, the nation, and the city. Finally, in 1857, the controversy was settled by the Emperor and an order was issued for the destruction of the fortifica- tions and the comprehensive planning of the whole territory about the old city. A planning commis- sion was created for this purpose with plenary power to control the entire territory, to locate new build- ings, streets, gardens, and open spaces and lay out the surrounding territory. No large city in Europe was in greater need of a building programme, for population had grown with great rapidity and the inner town was congested to its limits. The suburbs were inaccessible because 32 EUROPEAN CITIES AT WORK of inadequate means of transit and the inability to use the undeveloped territory between the fortifi- cations and the surrounding villages. The oppor- tunity for the building of a splendid city was com- mensurate with the needs, while the ownership of the land by the community enabled the planning commissions to carry through the project at rela- tively little cost. The replanning of Paris under Louis Napoleon had necessitated the cutting of ar- terial boulevards through the most congested part of the city at a total cost of $265,000,000. Vienna was saved much of this expense by reason of the public ownership of the land. For several years architects and landscape artists were engaged upon plans for the stadterweiterung. A portion of the area demohshed was converted into the Ring Strasse which follows the line of the old fortifications about the inner town. A second part w^as laid out in parks and gardens closely contigu- ous to the Ring Strasse. A third portion was dedi- cated as sites for public buildings, while a fourth portion was set aside for building lots which were sold to private builders and the proceeds used for the erection of many of the public structures and the laying out of the parkways and gardens. The entire arrangement was carried out systematically as a whole, with far-sighted business intelligence and with the utmost concern for the harmony of the project. The Ring Strasse is of octagonal form and is bor- IMPRESSIONS OF EUROPEAN CITIES 33 dered with trees and promenade-ways. At intervals there are formal gardens and parkways. Four-fifths of the land was retained for public uses, for parks and as sites for pubHc structures. Flanking the Ring Strasse splendid public structures were erected which include the royal palaces, the Parliament building, and the Rathaus. The University, Royal Opera-House, Cathedral, Palace of Justice, the Ar- senal, and the Art Museum were given appropriate locations. All of the details of the building project were laid out nearly fifty years ago, and subsequent building has followed the lines originally projected. About this centre the official and recreative life of the city moves; here the population comes to prom- enade, to listen to concerts, to sit at the cafes and restaurants. There is so much space between the individual buildings that the effect of the Ring Strasse is of a long, continuous garden. Many build- ings are located at the termini of streets so as to secure commanding vistas. The one-fifth of the land which remained unused for public purposes was laid out for private busi- ness and residences. Lots were sold under restric- tions as to the kind of buildings that could be erected and the style of architecture that could be followed. The total sum realized from the sale of one-fifth of the land was $80,000,000, which repaid a large part of the cost of the undertaking including the build- ings, for the city secured the full value of the land 34 EUROPEAN CITIES AT WORK by holding it until the project had been perfected. Purchasers were induced to erect fine buildings by being relieved from taxation for thirty years on all buildings erected during the first five years, and for twenty-five years on buildings erected in the next five years. By these means Vienna was able to carry forward a colossal planning project at a relatively low cost, and to control its development in the inter- est of the whole community. It made Vienna one of the most beautiful cities in the world. The beautification of Budapest, the capital of Hungary, was inspired by Vienna. Following the revolution of 1848, through which Hungary acquired a quasi independence, the Hungarians turned to the building of a capital that would vie with Vienna in its splendor. The two towns of Buda and Pest, which occupied opposite sites along the banks of the Danube, were consohdated in 1873. A commission was then created intrusted with the planning of the city. The river was made the central feature of the plan. Great stone quays were erected on either side extending for miles up and down the river. Below are embankments for passenger and freight traffic; a little higher up are roadways for vehicular traffic, while upon the top broad promenades are carried up and down the river. A new parhament house was erected, near which are the National Academy, the city hall, the custom-house, and other build- IMPRESSIONS OF EUROPEAN CITIES 35 ings. Farther on along the river the quay becomes a broad boulevard devoted to cafes and restaurants frequented by the fashion of the city. On the op- posite side and rising high above the river is the Imperial Palace, up to which great stone terraces rise, while the river itself is crossed by bridges of monumental design. Margareta Island, which lies in the middle of the river, is the city's playground. It is laid out with gardens and filled with restau- rants, bath-houses, and other public structures which are widely used by the pleasure-loving Hungarians. The buildings of Budapest involved colossal expen- diture, but the city has been made one of the most beautiful in the world. There are many other cities like those enumer- ated. Mannheim, on the upper Rhine, is the best example of formal city-planning in Germany. It has the largest river harbor of any city in Germany, if not in the world. Diisseldorf and Frankfort-on-the- Main are described in detail in other chapters. Nu- remberg retains its old mediaeval castles, its walls, moats, and passageways, its cathedrals and market- place, much as they were in the sixteenth and seven- teenth centuries. Leipsic is a university and musical centre. It is the seat of the imperial court of ap- peals. The town hall is of massive architecture, with a great dome which commands the whole city. In all these cities one is impressed with the solici- 36 EUROPEAN CITIES AT WORK tude for things that our cities neglect as of no pub- lic concern. There are countless provisions for com- fort and convenience. There is universal beauty and harmony. Ugliness is not tolerated. Business is not permitted to trespass on cleanliness. Com- munities seem to possess a city sense that has not yet arisen in America and that does not exist in Great Britain or in any other country in Europe. The German city has demonstrated to the world that the city need not be the despair of civilization. Rather it is an agency of great possibilities for its up- building. CHAPTER III DUSSELDORF AND MUNICIPAL SOCIALISM A SHORT ride from the city of Cologne is Diissel- dorf, the "Garden-City" of Germany. It has been officially planned as were the garden-cities of Letch- worth and Hampstead, as are the proprietary gar- den suburbs of Port Sunlight and Bournville, in Eng- land. The city owns more things and does more things for its people than any city I know. Munic- ipal socialism has been carried far beyond the sug- gestions of the most radical in this country, and it has been done with the approval of all classes. Yet the city is not governed by socialists; it is governed by business men — by business men who elect the council, choose the burgomaster and the magistrat, and make the public opinion which approves of these things. At the beginning of the nineteenth century Diis- seldorf was a small town with but 20,000 inhabi- tants. For centuries it was a Hauptstadt, the capi- tal residence of the Princes Palatine. The city grew but Httle until the Franco-Prussian War. In 1850 it had but 40,000 inhabitants. By 1860 its numbers had grown to 50,000, while in 1875 it had only 80,- 695 people. From this time on, however, its growth was rapid. In 1885 population had increased to 37 38 EUROPEAN CITIES AT WORK 116,190, while ten years later it was 175,985. In 1900 it had passed the 200,000 mark, and in 1910 the population had risen to 356,733. The area of the city is approximately 29,000 acres. It covers a larger territory than any city in Germany. Diisseldorf was not rich in the many palaces, gar- dens, and monuments which beautify Munich, Dres- den, and Berlin. There were no traditions of com- mercial eminence like those of Frankfort, Nuremberg, Hamburg, and Bremen. It had its old quarter about the city hall and the market-place. There was the old gate upon the river and a moat about the old town, all of which have been religiously preserved. Diisseldorf was not very different from the average American city a quarter of a century ago. It was ambitious for business and population just as are our own cities. It was in competition with Cologne, Duisburg, Essen, Barmen, and Elberfeld, all of which were struggling for eminence in this busy Rhine region from which a great part of the industrial wealth of Germany has come. Diisseldorf achieved eminence by consciously building a city which lured business, wealth, and travellers to it. In a dozen years it has taken rank beside the older cities in beauty and become one of the leading manufact- uring centres of Germany as well. Late in the nineties Diisseldorf cast about for a burgomaster. The city wanted a man with a vision and the experience necessary to carry the vision DUSSELDORF AND MUNICIPAL SOCIALISM 39 into execution. The town council selected Dr. Wil- helm Marx for the post from the competitors who offered themselves. He surrounded himself with ten other experts, who comprise the paid members of the magistrat, and with a town council of sixty mem- bers proceeded to build the city in a big-visioned way. He remained as burgomaster for twelve years, and during his administration Diisseldorf carried through more big undertakings than any city I know in an equal length of time. The city's centre is the Konigs AUee, a broad parkway which runs through the heart of the city, and terminates at one end in the business district, and at the other in the Hofgarten. It is a miniature Champs Elysees. It is laid out in formal style and is one of the most finished parkways in Europe. It is flanked on both sides by splendid buildings of har- monious architecture, some of which have been built under plans prepared or approved by the city. At one end of the parkway is a hotel owned by the trustees of the municipal art exposition. At another corner is probably the most artistic department- store building in Europe. Its walls are lined with mosaics and adorned with mural paintings. Its ar- chitecture is of the massive perpendicular style which has been developed in such variety in recent years in Germany. The office building of the Ger- man steel trust, the Stahlhof, flanks another corner and is more like a palace than a business edifice. 40 EUROPEAN CITIES AT WORK Farther on is a group of government provincial buildings carefully arranged in a harmonious setting about the parkway. Through the centre of the Allee runs the old moat, preserved, as is every bit of water-way, by the German city. At frequent intervals it is spanned by stone bridges ornamented with fountains and symboUc figures of commanding size. On one side of the Allee are cafes and shops, all under the watchful eye of the city, to see that they do not disfigure the beauty of the whole, while the opera-house, art gallery, museum, and post- office are in close proximity. The Konigs Allee is fixed as one of the city's cen- tres, as was the Forum of Rome. There can be no serious change in realty values; there is no excuse for cheap and transitory buildings. For the city controls its own development and establishes busi- ness, governmental, and other centres, so that values cannot materially depreciate. Nor are "tax-earn- ers," such as disfigure the average American city, permitted. By some means the German city pre- vents the irregular, speculative development so com- mon in this country. To this municipal centre the municipal tram-cars come. Metal signs indicate the routes and destinations of the cars. The Allee is the centre of the city's life, with provision for busi- ness, recreation, and refreshment. To this parkway the people come in the evenings and on holidays for rest and play. DtJSSELDORF AND MUNICIPAL SOCIALISM 41 The banks of the Rhine at Dusseldorf were low- Ijdng marsh-land. Retaining-walls were erected for miles along the river front within which land was made for park purposes. A promenade- way extends along the top of the embankment, from which stone steps and driveways lead down to the freight and passenger-boat landings below. There is an en- closed harbor for pleasure-craft. Along the river front are frequent municipal bath-houses, while the river itself is crossed by a splendid bridge whose approaches are ornamented in a commanding way. The central pier carries the gigantic figure of a hon, symbolical of Dusseldorf. Upon the made land, fronting on the river, a group of government build- ings has been erected, while farther along is the per- manent art exposition building in which annual art and industrial exhibits are held. Here the Diissel- dorf school of art is encouraged. Between these buildings and the river front are gardens, tennis- courts and playgrounds, all maintained in harmony with the whole. Toward the city, from the art exposition building, the embankment narrows into an esplanade or Rhine Promenade, like that of the Seine at Paris or the Victoria Embankment of London. Steam and street railway tracks have been laid below the upper level for handling light freight from the river. But the commercial uses in no way impair the beauty of the river front for pleasure and recreation. 42 EUROPEAN CITIES AT WORK Farther along is the new harbor, first opened by the city in 1896, and greatly extended in 1902 by the reclaiming of the foreshore of the river. The original cost of the harbor was $4,500,000. In area the harbor is among the largest on the Rhine. Its turn over increased 300 per cent, in the first ten years after its building and now amounts to 1,100,000 tons per year. Under the Rhine Navigation act, which was passed to encourage the erection of harbors, cities are not permitted to draw profit from their harbor dues, but the indirect effect of their construc- tion has been to stimulate greatly the commerce and industry of the city. These docks, as in other German cities, are mar- vels of construction. The most modern hydraulic and electrical machinery has been installed, which is operated in connection with the warehouses and state- owned railways to minimize the cost of transship- ment of freight. There are harbors for lumber, for petrolemn, for coal, and for general merchandise. The grain harbor is connected with elevators into which the boats are unloaded by mechanical means. Similar terminal facilities are provided for other kinds of freight. The whole undertaking is operated in harmonious co-operation \sdth the state-owTied railways.^ The opposite bank of the Rhine was also ^ For a description of the type of inland harbor erected along the Rhine, see Chapter IV, Frankfort, an Experiment Station in Business Administration. DUSSELDORF AND MUNICIPAL SOCIALISM 43 reclaimed. It was low land covered with unsightly dwellings which were torn down and the long, shelv- ing shore developed into a recreation park. All these provisions for commerce, for traffic, for beauty and recreation form part of a well-developed, officially approved plan of city building. Nothing is left to chance or the unregulated license of private business or the land speculator. The city has been built as a unit, much as Gary, Indiana, was planned by the Steel Corporation. Gary was planned for the making of iron and steel; Diisseldorf was planned for people. Shortly after my arrival I called upon an old ac- quaintance who was a retired business man. His house was close by the retail business district. He had lived there for many years and desired to end his hfe in his old home. He told me that a few weeks before he had been annoyed by noises in the adjoining house. He notified the municipal authori- ties, who sent an inspector to learn the cause of the disturbance. It was discovered that the premises were being used by a goldsmith and that the noises were those of the tapping and hammering of the ar- tisans on the metals. The noise was not loud and would hardly be considered a nuisance in this coun- try, but the authorities promptly notified the gold- smith that he must remove his shop to another sec- tion of the city. For German cities make special provision for factory districts. They compel shops 44 EUROPEAN CITIES AT WORK to locate upon the railway tracks, in the suburbs, and on the lee side, away from the prevailing winds, so that dirt and smoke will be driven away from the city. Factories can locate nowhere else. This is the common practice in German cities. It explains in part their cleanliness and the absence of that ob- trusive industrialism that characterizes the cities of America and England. All this is of real advantage to the factory-owners, for it insures them the best of transportation facilities by rail and water as well as proximity to the working-class residence districts. It also protects residence property from depreciation by shops and factories. Every part of the city has been planned with the same foresight and care as the railway station, the river embankment, and the Konigs Allee. Undevel- oped land, far out in the suburbs, has been laid out in detail for many years to come. The maps in the city hall show the location of proposed streets and boulevards. They indicate the land to be used for parks, open spaces, and sites for public buildings, all selected in anticipation of the city's growth and purchased at their agricultural value. The width, style, and character of streets are planned with ref- erence to the use to which they are to be put. To these plans the owner and the builder must con- form. They are not permitted to destroy the har- mony of the whole or use their property in such a way as to injure their neighbors. Beauty, orderli- Building Plan of Suburban Allotment, Dusseldorf. Showing method of street planning, style of house permitted, and generous allowance for open spaces and boulevards. Streets are from 60 to 135 feet -wide. Black building dots indicate that these sites are reserved for houses for one or two families. The other shadings show similar restric- tions, some sites being restricted to houses for one or two families and others for two or three families, as well as indicating the type of building permitted. A large amoiuit of space is required to be left vacant in front of and in rear of buildings. DUSSELDORF AND MUNICIPAL SOCIALISM 45 ness, and comfort are the first consideration. Sites for school buildings, for little city centres, have been purchased in advance of their increase in value. Some sections of the surrounding territory are re- served for mills and factories. Neighboring prop- erty is set aside for workingmen's cottages or apart- ments. In other sections the land is dedicated to villas and more expensive residences. Everywhere, even in the heart of the city, the height of buildings is limited. Rarely in any Ger- man city may buildings exceed in height the width of the street. The area that can be covered by build- ings is also determined beforehand. Houses must be so located that there will be a certain frontage devoted to gardens, while the houses themselves must be a certain distance apart. Thus the tene- ment and the slum cannot reappear. Nor can the character of the section be changed without the as- sent of the city. In this way values are protected from the selfishness of a single individual who may destroy the value of a whole neighborhood by the erection of factories or buildings which are a nui- sance to the neighborhood. The city is like a feudal overlord. It says in ef- fect to the land-owner: "Whatever value your land enjoys is due to the city. We, all of us, have created its value. You in turn must so use your land that it will not injure the community which has enriched you. The city is paramount. Its people are sov- 46 EUROPEAN CITIES AT WORK ereign. To some extent you must subordinate your private rights to the common welfare just as you do your personal actions." In America a man may do what he wills with his land and the courts protect him in his actions. He may erect a dirty factory in the heart of the resi- dence district. He may put up a twenty-story sky- scraper and destroy the light of his neighbor. He may maintain a miserable tax-earner in the midst of a fine business district. He may lay out mean and narrow streets on his allotment, may pave and sewer them as he wills, or use the territory for any- thing that suits his fancy. There is no such license in the German city. The city is first in the eye of officials and citizens. And the streets are treated with almost as much rever- ence as a great public building. And streets, parks, and open spaces, the suburbs and the water-fronts, the fixing of building zones and the height of build- ings are all the work of the expert, trained to the calling of town-planning just as is the engineer or the architect. Radiating out from the business centre of Diissel- dorf are broad, parklike thoroughfares through which the life of the city moves. They are arranged like the ribs of a fan. The parkway in the centre is planted with trees, flowers, and formal gardens. There are benches where the people gather in the evening. The street-railway tracks are placed on DUSSELDORF AND MUNICIPAL SOCIALISM 47 either side of a parkway and are sodded to keep down the diii; and noise. On either side of the tracks are roads for vehicular traffic. These radial avenues are from one hundred and fifty to two hun- dred feet wide and are so arranged that one can traverse almost any section of the town along a beautiful shaded roadway. Round about the city is a circular boulevard like the Ring Strasse of the near-by city of Cologne. Out at the extremity of one of these radial thor- oughfares is a city woods which covers the hills on one side of the city. They have been left in their natural condition, and on a holiday or Sunday they suggest fairy-land; with the long, straight-trunked trees, clean of foliage up to twenty or thirty feet, and with pathways running up and down the hill- side filled with people. Such municipal forests are common in Germany, and Switzerland. They are not parks in the Amer- ican sense, but are preserved in their natural state and are used for tramping, for picnics, for all kinds of recreation, as well as for the cultivation and sale of timber. In many cases these public forests have been owned for centuries. Farther on is the Diisseldorf race-track, where officers of the army and ambitious business men ride their blooded horses several times a year. To these meets, which are social events like the Ascot in England, the wealth of the neighborhood gathers. 48 EUROPEAN CITIES AT WORK The races are orderly and well conducted, the bet- ting being under government supervision. The Ger- man horse-race is in striking contrast with that of America or England. It partakes of the spirit of the German city, which seems to insist that any- thing that is worth doing should be done in the best way possible. While the development of Diisseldorf seems to have been adequately provided for, for a generation to come, its officials are not content with what has been achieved. The growth of the past twenty years suggests the possibility of metropolitan proportions. To anticipate this probable growth, the city invited town-planners to compete for a still more compre- hensive project. And as an aid to the competitors, topographical surveys, maps, studies of land and building values, statistics of traffic, of industry, and the density of population were prepared by the city. A prospectus was issued which announced that the successful plan must provide for the future develop- ment of steam, water, and electric traffic, for health and for beauty. Existing public buildings are to be retained as far as possible. Suggestions are to be made for the extension of existing streets and tram- way Hues as well as of the steam railways. Terri- tory for industrial uses must be designated, with pro- vision for workingmen's dwellings as well as the traffic arrangements with surrounding cities. Residential quarters, with plans for dwellings for DUSSELDORF .\ND MUNICIPAL SOCIALISM 49 persons of large means as well as the location and style of workingmen's cottages and apartment houses, are to be included. The city is planning a new city hall which is to form part of the competitive designs. Provision is also to be made for an arts and crafts school building, a museum, concert hall, public gar- den, and a city theatre. Sites and plans for market halls were requested and the best means for the bringing in of food. A new slaughter-house is to be built. Playgrounds, parks, and open spaces were to be included in the plan as well as sites for primary and secondary school buildings. Competitions such as these are common in Germany, those of Berlin, Munich, and Diisseldorf being the most notable.^ The officials of Diisseldorf projected their imagi- nation far into the future in calling for this competi- tion, much as did the group of architects who laid out the ground-plan for the World's Fair in Chicago. The day-to-day policy with which American cities are permitted to develop has been superseded by intelligent prevision for the future. Municipal administration is a trained profession in Germany, and Diisseldorf has recently opened a college for the education of officials in city adminis- tration and town-planning. The curriculum covers two semesters of three months each, at the end of ^ Prizes were awarded to five competitors and a description of their plans with maps and drawings was published by the city, entitled, Sonder-Katalog fiir die Gruppe Stddtebau der Stddteaus- slellung zu Diisseldorf, 1912. 50 EUROPEAN CITIES AT WORK which time students are required to take a gradu- ating examination. The course covers such topics as municipal law and administration, the labor ques- tion, the relief of the poor, sanitation, and the proper organization of city government. The teachers are for the most part practical men and administrators, university professors and officials connected with city departments. The college is open to those who have had a gymnasium course or who have passed an equivalent examination. A similar college devoted to town-planning has been in operation in Berlin for a number of years. Diisseldorf engages in the greatest variety of busi- ness undertakings, and has carried municipal social- ism further than any city in Europe. The gas-works have been owned for many years and involve an in- vestment of $3,750,000. In 1907 the net profits from the plant, above all proper charges, were $304,000. Electric-lighting works were erected in 1890. In 1907 they supplied 2,300 consumers. The invest- ment in the plant is approximately $3,000,000, and the net profit for the year 1907 amounted to $140,000. The prices charged for gas and electricity are lower than in most German cities. The water plant has been owned since 1870. The net profit in 1908, after all charges, was $218,000. The street railways were the property of a private company up to 1900, when they were acquired by the city. The year before the city took possession DUSSELDORF AND MUNICIPAL SOCIALISM 51 the railways carried 10,000,000 passengers. Eight years later the number had increased to 40,000,000. For some years the system was operated at a loss, but in 1907 it turned over a net profit of $51,000. The investment in the plant is $2,500,000. The tracks are laid close to the pavements so that they offer no obstruction to traffic, while the rails are so solidly embedded that there is Httle noise or rattle. Cars are clean and freshly painted, the newer ones being models of beauty and comfort. They are more like the private car of a street-railway magnate than a car for ordinary passengers. The rate of fare is two and a half cents. I do not pretend to know all of the enterprises of this thrifty German city. It carries on a wine busi- ness from which it realizes a small profit; it also operates one or more restaurants. As indicative of the way German cities experiment as well as the freedom they enjoy, Diisseldorf appropriated a spe- cial fund of $3,750,000 some years ago to be invested in industrial undertakings of a profitable nature iden- tified with the city. It acquired six-tenths of the shares of stock in the Rhenish Tramway Company, which operates electric lines to surrounding cities and carries on an extensive business in land specu- lation. In addition the city itself is a land speculator on a large scale, its realty holdings amounting to nearly 2,500 acres. Since 1900 a special fund of $5,750,000 52 EUROPEAN CITIES AT WORK has been set aside with which to buy and sell real estate just as does a private operator. The purpose of the investment, according to the city's official dec- laration, is "to restrain the unnatural augmentation of the price of land." Through its large land hold- ings the city is able to compete with private specu- lators and keep down the price. It also participates in the "unearned increment" which the growth of the city creates. The city operates a municipal mortgage bank, the first of its kind in Prussia, which has advanced more than $5,000,000 on loans for the building of working- men's homes. In addition the council has erected twenty houses for workingmen, with one hundred and forty-one apartments, as well as fifty-one sepa- rate houses for the same purpose. A home for un- married people has recently been added partly out of municipal, partly out of private funds left to the city for that purpose. Here, as elsewhere in Ger- many, private land speculation and the housing problem are controlled in part by municipal com- petition. Diisseldorf was a pioneer in a comprehensive hous- ing poHcy. Ten years ago it realized that the rapid growth of the city created a house famine which pri- vate capital was unable or unwilling to satisfy. Its officials were concerned over the question, and in 1902 a report was published by Doctor Meydenbauer in which it was stated: DUSSELDORF AND MUNICIPAL SOCIALISM 53 "The fact that capitaHsts do not lend much money on mortgages of land and buildings is well known. It had become difficult to obtain credit, especially for a plot of land which had not yet been built upon, in excess of the value of the visible security. "As capital could not be obtained, house building had come to a standstill. In this way a house- famine was created here as in other towns, the miti- gation of which the Town Council was compelled to regard as its task. The way was obvious ; the need, created by the disinclination of private persons to advance capital, must be supphed by the credit of the town. "The Town Council decided at a meeting on the 24th April, 1900, to grant mortgage loans on land in the town district of Diisseldorf, and to appoint a committee to manage the mortgage business in con- formity with instructions given by the Council. A grant of $250,000 was made from the town treasury for the beginning of the reserve fund of the new de- partment. For the purpose of obtaining funds the Council resolved to raise a loan of $5,000,000 at 4 per cent, interest for the promotion of the building of dwelling-houses in the town district, by the issue of bonds — the loan to be issued in twenty instal- ments of $250,000 each, according to the amount granted in mortgage loans, and to be repaid, from the sixth year after the issue of each instalment, by payments of half of one per cent, on the capital to a sinking fund, in addition to the interest laid by. The payment would therefore last 57 years." ^ Diisseldorf aims at being a model employer. It treats its 4,800 clerks and workmen more generously ^ The Improvement of Dwellings and Surroundings of the People: The Example of Germany, T. C. Horsfall, Manchester, England, p. 85. 54 EUROPEAN CITIES AT WORK than do the private corporations and goes beyond the requirements provided by law in regard to sick- ness, accident, and old-age insurance. It grants all workmen and employees a retiring allowance as well as pensions for widows and orphans. The wages paid rise with the years of service, while the con- ditions of work are determined by municipal regula- tions. In addition to the savings-bank and mortgage bank, the city operates a pawn-shop where loans can be secured on easy terms and at relatively low rates of interest. A commercial court and trade court decide disputes between masters and employ- ees and arbitrate other controversies arising out of trade matters. These courts enjoy the confidence of all classes. The procedure is very informal. Law- yers are not encouraged and litigation is disposed of quickly and at an insignificant cost. These indus- trial courts are found all over Europe and are widely used by the working-classes. A few years ago a legal-aid department, where advice is furnished free, was opened. This, too, is maintained by the city. To encourage thrift, the city conducts a municipal savings-bank. The city also maintains a labor exchange or em- plojmient bureau which is a clearing-house for em- ployers and employees. During the winter months emergency work is furnished to men out of employ- ment. In 1909 the city offered work to 1,300 DUSSELDORF AND MUNICIPAL SOCIALISM 55 unemployed men. This is a not uncommon prac- tice among German cities. There are but few private charities in Germany, almost all relief work being administered by the city directly. This is the almost universal policy, it being assumed that the care of the poor is a public rather than a private function. Aid is granted almost exclusively in the form of out-door relief according to the Elberfeld system, in-door institu- tional relief being confined to the sick, the infirm, and the homeless. The city defends this policy by saying : "The great value of this system is based upon its maintenance of family life and the economic inde- pendence of the persons assisted. The system is administered by persons of both sexes (in Dussel- dorf by about 500 persons in all), who give their services gratuitously, and to each of whom a definite local relief district is allotted. The direction is in the hands of a poor-relief board, the members of which are all unpaid. The chairman is, however, an official, a sort of alderman or assistant mayor by profession, who, with the assistance of a numerous body of clerks, first prepares and then carries out the resolutions of the board. In the year 1907 an average of 10,337 persons per day were relieved, with a total expenditure of 384,762 marks ($96,190) in the year. Further 171,930 marks ($42,980) were dis- bursed for single and special cases of relief, some- times in supplies instead of in money, in which sum is also included the cost of accommodating destitute persons in the six municipal almshouses and in pro- viding for the homeless in the town asylum." 56 EUROPEAN CITIES AT WORK Orphans and poor children are known as munici- pal "foster children" and are under the constant care of professional nurses and physicians. The city maintains a corps of eighteen physicians who give gratuitous service to needy persons, while numerous hospitals, infirmaries, and sanatoriums are provided. The general hospital of the city cost $1,750,000 aside from the land. It is equipped with every resource of medical science, and comprises a group of 25 separate buildings with 914 beds. In connection with the hospital is an academy of prac- tical medicine as well as a society for the rearing of infants. The city also maintains a municipal nursing establishment for convalescent invalids and those who do not require hospital treatment. The expenditure for the relief of the poor and of orphans increased by 100 per cent, from 1897 to 1907, but the city explains the increase by saying: "This great increase is no sign of growing poverty but rather of the increasing eagerness of the town administration in the work of help and charity, and the increase would probably have been still greater had not the German workmen's insurance act in- tervened at the same time to reheve the town." Public sanitation and hygiene have been carried to a high degree of perfection by German cities dur- ing the past twenty years. The public health is a matter of universal concern. The city says of its work in this direction: DUSSELDORF AND MUNICIPAL SOCIALISM 57 "The eagerness in the work (poor rehef) above referred to has developed still more remarkably in matters of hygiene. The modern German city, in accordance with the social progress of the time, rec- ognizes it as its duty to change its activities in the sphere of hygienic policing, from the almost exclu- sively curative policy to one that is in a still higher degree preventive. "The town has established a special institute for testing food and provisions. It maintains a slaugh- ter house to protect the community from objection- able meat. The use of the abattoir is compulsory on all butchers, and no meat can be killed in the city except in the municipal establishment. A new slaughter house was erected some years ago, which, with the adjacent cattle yards, cost approximately $1,000,000. All the meat slaughtered and used in the city is inspected by municipal veterinary sur- geons." Constant oversight is maintained of the health of the children. On entering school the child is exam- ined by the school physician to ascertain its physical condition. The examination is usually made in the presence of the parents, who are advised as to the food and other precautions to be taken in the care of the child. The school buildings are equipped with gymnasiums and are surrounded with playgrounds which are provided with all kinds of apparatus. As one travels about the country one sees classes of school-children, from six to fifteen years of age, tramping through the country with their teacher, studying trees, flowers, and nature. Similar classes 58 EUROPEAN CITIES AT WORK are seen in the zoological and palm gardens as well as in the art galleries and museums. The teaching of swimming is compulsory, and during the summer months the public baths located on the rivers and water-ways are crowded with children under the care of a swimming-master. Weak-minded children are taught in separate classes in order to permit of individual treatment. Special courses are held for children who stutter, while for those suffering from curvature of the spine and similar diseases, orthopedic gymnastic exercises have been developed. Special schools are main- tained in the country for subnormal children to which they are sent until they are able to enter the city schools. Poor children receive a hot breakfast in winter, which is served gratuitously, while hohday camps, milk, and saline bath cures are provided for those in need of rest and relaxation. These and many other precautionary measures are taken by the school and health authorities of Diisseldorf to con- serve the child and give it every possible chance to grow up a healthy and efficient member of the com- munity. The administration of Diisseldorf is not dissimilar from that of other cities in these respects. All Germany is engaged in a war on disease. The new school buildings erected in recent years are models of architectural beauty. They contain splendid assembly halls. The laboratories are well equipped for the teaching of physics, chemistry, DUSSELDORF AND MUNICIPAL SOCIALISM 59 biology, and the sciences. In all of these respects the school administration of Diisseldorf is in keeping with the standards of the empire. School attendance is compulsoiy up to the age of sixteen years. The elementary schools contained 36,000 pupils in 1908, distributed among 56 schools with 675 classes and about 700 teachers. This was about 50 pupils to the class. The elementary school curriculum includes courses in manual training for the boys and various kinds of domestic science for the girls. The total expenditure for elementary schools in 1907 was $500,000. The work of the elementary school is supplemented by from two to three years' additional work in the continuation and technical schools, held mostly in the evening. These schools are designed to train the children in trades, in technical matters, and in domestic science. There are eight such continua- tion schools in the city, three of which are of a com- mercial character, two are technical schools, one is a drawing-school for boys, and one an applied art school for the industrial arts. Provision is made for higher forms of art expression in the Royal Fine Arts Academy, an old and celebrated institution under public control. Above the elementary and continuation school sys- tem are a number of high schools or gymnasiums in which the work is specialized rather than general. There is a high school for the training of governesses and a general high school for girls. There is another 60 EUROPEAN CITIES AT WORK school for those who wish to pursue a professional career^ as well as a lyceum for girls who desire to study domestic and household economics; such as the rear- ing of children, house-keeping, sanitation, and pub- lic work along the lines of charity administration. The course of study in these high schools is adjusted to vocational needs. The high schools for boys con- sist of two g^Timasiums which prepare for the uni- versity, as well as g}^mnasiums for technical training. The total cost of the educational system of Diis- seldorf amounts to $1,000,000 a year exclusive of the expenses of administration. This was equiva- lent to a per-capita expenditure of four dollars, which, when the relative salaries and cost of ad- ministration are considered, is considerably above the per-capita expenditure of the average American city. The per-capita ex-penditure of several American cities of comparable size to Diisseldorf is as follows: Milwaukee, population 350,852, $3.66 per capita; San Francisco, population 402,836, $4.26 per capita; Buffalo, population 405,714, $3.96 per capita; Detroit, population 426,592, $4.00 per capita; Baltimore, population 549,079, $3.32 per capita; Washington, population 321,128, $6.40 per capita. The average expenditure of American cities is below that of progressive German cities, and when the purchasing power of money is considered, the ex- penditure is veiy much less.^ ^ See Study of Expenses of City School Systems, United States Bu- reau of Education, Washington, p. 90. DUSSELDORF AND MUNICIPAL SOCIALISM 61 The school system of Diisseldorf is supplemented by a number of other agencies which have a distinct educational value. The city owns and maintains a theatre in which high-class operas, dramas, and comedies are produced, which are made available to the poorer classes by cheap tickets and special pro- ductions. During the summer special performances are given by the Rhenish Goethe Society. The city owns a splendid concert hall, known as the Ton- halle, in which a restaurant and wine-handling busi- ness is conducted. Symphony and military concerts are given here several times a week, as well as pro- ductions by the local choral society. The city sup- ports a symphony orchestra of sixty-one players, and provides a musical director who conducts the orchestra and directs the lower Rhine musical festivals which are held every three years. Diisseldorf was the first city in Germany to erect a public reading-room in connection with its town library. Popular lectures and classes are held dur- ing the winter months by the joint action of the municipality and the chamber of commerce, which are frequented by clerks and workingmen. A fine arts gallery, a museum of natural science and his- tory, and a zoological garden are maintained, the latter being a favorite recreation centre for the chil- dren. All of these agencies are correlated with the ed- ucational system. Play is given a cultural value. It is difficult to find a German man or woman who has not 62 EUROPEAN CITIES AT WORK some appreciation of musiC; of the classical dramatic productions, and a critical sense in these matters. The budget of Dii&seldorf is several times the budget of an American city of equal size. In 1907 it amounted to $28,250,000; or almost $100 per capita. This is nearly five times the per-capita budget of cities like Cleveland, Pittsburgh, Milwaukee, or Chi- cago. Of the total budget, $21,000,000 was devoted to the operation of the many industrial activities of the city; $1,250,000 was for charges against the debt account, while the balance, or $6,000,000, was expended for municipal administration proper. The total amount collected from taxation was but $2,875,000, or about $10 per capita. Of the latter sum considerably more than one-half is raised by the income tax, which is in the nature of a surtax on the state income tax and is calculated at a certain per- centage of the state rate. The municipal rate varies greatly in different cities, the rate in Diisseldorf being 140 per cent., which is below that of any large city in Rhenish-Westphalia, although a few German cities have a lower rate, that of Frankfort being but 90 per cent. In recent years the policy has been adopted of shifting the burden of taxation from incomes and onto property. Increased taxes are being laid on land and the sales of real estate. In 1907 the land tax yielded approximately $500,000, the tax on the transfer of real estate $250,000, or together about three-tenths of the entire municipal taxes. DUSSELDORF AND MUNICIPAL SOCIALISM 63 The indebtedness of Diisseldorf is also of extraor- dinary size. In 1909 it amounted to $29,000,000, almost exactly the same as the budget of the city. This has been incurred in the purchase or construc- tion of the street railways, gas and electric lighting enterprises, in the purchase of land and participa- tion in industrial undertakings, in the building of schools, streets, and other municipal activities. The most extraordinary fact about the indebtedness, as stated by the city, is that "No less than 87.3 per cent, of the habihty is for industrial undertakings, a proportion not obtained by any other German town." "Consequently," the city says, "even this considerable increase of municipal liabilities is noth- ing else than a sign and an attendant phenomenon of a highly prosperous town, the administration of which is constantly pursuing higher aims." As against the indebtedness of $29,000,000 the city possesses assets in excess of $40,000,000, which not only earn the interest charges on the cost, but turn into the city treasury a substantial revenue for the relief of taxation. Less than 13 per cent, of the indebtedness is for undertakings and improvements of a non-profitable kind. The financial operations of the city for the year 1909 were as follows. The figures are in marks, ap- proximately twenty-four cents. The receipts from municipal undertakings indicate the extent to which municipal socialism has been carried by the city. 64 EUROPEAN CITIES AT WORK © W >* I— I W H (±1 O f4 O Q ►J CQ 02 Q O o H W K H O H CO h-l o (=4 OS 0} o t^ • SSSS • l> O O 00 • • Q Oi O lO ; oa5"oo (M ; ; . CO (N lO Ol . . »C CO . »C O C» i-H . . T-H CO IM 1-1 8 O . . t^ . . . . CO lO • • 00 1-4 . . CD ■* . . c^ T-H . . •-< 00 . . 1— 1 : ; "* ; : . . CO . . 00 1— 1 1-H i-H I— 1 a 5 O O O O Q CO 05 Tjr oT (m" cT o id" lo o ■*" o i>r iOiOiO(M-*OOi-iCOO(M COOOt^iOOOlCDrH O0C^ 00 0_ 05^ ■*~ oo" rn" o6~ co" cd" ocT o"~ -*~ 00'-HOO(M'#Oi05 1— i050T-(Ort<»-iO of r^ r-Ti-T j-T PS < PS H o H I < fl-e •-1 rr -_.,:. ^i^"!., vMs y(^- l-.j.'ir^H - ^ 1 ..ii^^ ^v r n =__ ■■ ■■ & '■\. • Exposition Park, Munich, where all Kinds of Exhibitions ARE Held. The Palm Gardens, Exposition Halls, and Zoological Gardens are the favorite resorts of the people. There are open-air restaurants, with band and orchestral concerts In the evenings and on holidays. THE VISION OF THE GERMAN CITY 149 to the air, are clean and free from disorder, and play an important role in the life of the community. They are accessible to even the poorest and are frequented by all classes. Many cities, too, maintain rathskellers in the basement of the city hall. Diisseldorf owns a Ton Halle in which the best of symphony concerts can be heard three or four times a week. In recent years cities have been erecting exposition halls for indus- trial and art exhibitions, for manmioth concerts, and a great variety of purposes. They are usually sur- rounded by a park and form the recreational centre of the community. These ex-positions are designed to promote industrial efficiency and knowledge of local industries. They attract many visitors to the cities and indirectly pay for the expenditure in this way. It is about the open-air concert in the parks and public halls, in the opera-house and the theatre, that the leisure life of the German revolves. It is lei- surely, restful, and cultural. It provides for the fam- ily rather than for the individual; it is social in char- acter and is consciously directed toward refinement and the development of the artistic senses. The sub- traction of this public provision for leisure from the every-day life of Germany would be the destruction of much of the country's charm. Provision for lei- sure begins with the cradle and ends with the grave. It supplements education, and relieves the tedium of 150 EUROPEAN CITIES AT WORK toil. The efficiency of the German workman is in no small degree traceable to the rest, to the change in environment and in mental interests, which the community offers in these ways. There is little drunkenness and few of the environing allurements leading to excess which characterize the commercial- ized recreational opportunities in America. In recent years the playground has been developed along American lines. The new suburban extensions include provision for play places and gardens within a few minutes' walk of every man's home. These playgrounds are designed with the greatest care, so as to secure the maximum of beauty and use. The gardens are of great variety and are filled with plants and flowers. The Hofgartens in the capital cities are crowded with mothers with their children every after- noon in summer enjoying the concerts. Cities almost always maintain all-year-round bath-houses, and public comfort stations. The teaching of swimming is compulsory in the schools, and during the summer months crowds of children may be seen with their teachers on their way to the baths which line the water-fronts. Almost every city has its zoological and palm garden, to which the children are brought in groups with their teachers. There are restau- rants in connection with them where band concerts are held. The city of Munich maintains a wonder- ful Turkish-bath establishment of splendid architect- ure and the most complete appointments. It is lo- I THE VISION OF THE GERMAN CITY 151 cated upon an island in the river, and is thronged with people at all hours of the day. Some idea of the attitude of mind of the city to- ward the leisure life of its people and the prominence which it gives to recreation may be gained from the expenditures which it makes for these purposes. Co- logne, a city of 500,000 population, spends $129,000 a year for parks, $97,000 for public baths, and $500,- 000 for the theatre, for music, for art and science. It spends nearly $1.50 per capita for these purposes. Were New York City to spend as generously, taking into consideration the relative purchasing power of money, it would spend from $10,000,000 to $12,000,- 000 upon recreation, the theatre, music, and provi- sions for recreative culture. Diisseldorf, with 350,- 000 people, spends $64,000 on its parks, $110,000 on its theatres and orchestras, $45,000 for the arts and sciences. Mayence, with a population of 105,000, spends $29,400 on the theatre, $16,000 on baths, and $19,000 on an orchestra. Essen, with 265,000 people, spends $9,730 on its orchestra and $12,500 on its theatre. In addition there are other subsidies and subventions which increase the appropriations to a much larger sum. The German city looks upon happiness as a public obligation. It freshens the artisan and relieves the dull monotony of his daily work. We in America have not yet realized that provision must be made for the leisure hours of the people and that their di- 152 EUROPEAN CITIES AT WORK rection and control must; of necessity, be in public rather than in private hands. The same intelligence characterizes expenditures for social ends. Emergency work in hard times, for the opening up of a slum area, for the building of new schools and hospitals, is made with an apprecia- tion of the ultimate value of such expenditure in re- ducing disease. The burdens of taxation are treated as a kind of investment from which dividends will be reaUzed in the future. There is no question but that expenditures will be made with economy and with the best talent the empire commands. Officials enjoy long tenure of of- fice, and are selected with a view to the big projects which the city has in hand. City councils, too, com- mand a high order of talent, drawn from business and the professions. The term of service in the council is six years, with only a partial renewal every two years, in consequence of which projects can be planned over a long period of time, while the ability of the city to borrow without limit makes it possible to project plans in a long-visioned way. Much of the waste of the American city is due to the Umitation on its borrowing powers. Cities have to adopt a hand-to-mouth policy. They are com- pelled to spend a hundred thousand dollars instead of a million because of the debt limit fixed by the legislature. New York has been cramped within Manhattan Island because it could not borrow THE VISION OF THE GERMAN CITY 153 enough money to build its subways, and when re- lief was secured it was so inadequate that the city had to rely on private credit at colossal cost to the future in order to complete the system. Docks and harbor development projects are ham- pered by similar limitations. The city cannot pro- ject plans to be carried out as the needs of the city require because of its inability to secure the neces- sary funds. Each department clamors for appropri- ations which compel an annual adjustment of the budget, not to what should be done, but to what can be done. The city of Chicago is helpless to carry out its planning and harbor projects because of limits on its borrowing capacity which have kept down its indebtedness to an insignificant sum. Cleveland has planned a harbor development for years, the city has been alive to the need for adequate sewers, new bridges, parks, playgrounds, and hospitals, but the almost inflexible debt limit of the city makes im- peratively needed improvements impossible. The in- troduction of the expert or the improvement of the machinery of government would not correct our city problems so long as officials are cramped as they are by inflexible laws which control both the borrow- ing capacity and the tax limit of the city. Big improvements are carried through in Ger- many on a scale which anticipates the needs of the community for generations to come. Suburban proj- ects are worked out with great care long before work 154 EUROPEAN CITIES AT WORK is begun. An opportunity is offered for criticism and suggestion. When the project is ready for actual work a wide area is undertaken at once. The streets are planned in as much detail as the specifications of a great building. The project may cover a half dozen years in its completion, but when it is finished every provision has been made for a community of several thousand inhabitants. Water, sewage, and harbor projects are undertaken in the same big-visioned way. The city of Munich long suffered from a high mortality rate due to the prevalence of typhoid fever. The water supply was inadequate. In 1883 the city undertook to bring water from pure springs far up in the Bavarian Alps. The project was a most costly one; it involved en- gineering difficulties which required the best of ex- perts and involved many years in its completion. Great sewers were run through the city which are flushed by running water, impounded in the Isar River, and carried at a rapid flood through the cen- tral part of the city. The water-front developments of cities are of the same ambitious sort and include provision for every possible need. Stone embankments are built along the river front with promenade-ways on the top, while the street and steam railway tracks are on a lower level with quays and landing-stages at the water's edge for passenger and pleasure craft. Com- manding water-front sites are reserved for public THE VISION OF THE GERMAN CITY 155 buildings, for exposition halls or parkage. Still others are dedicated to playgrounds or open spaces, while provision is made for a dock and harbor sys- tem susceptible of development to meet the growing needs of the city. It is this vision of the municipality with a life of its own that marks off the German city from the rest of the world. There is a sense of community living, an appreciation of the fact that the city is here to stay and that its coming involves vicarious sacrifices to the many that must be relieved by the few. There is something of the municipal sense of the cities of ancient Greece or the towns of Italy, Germany, and the Netherlands during the renaissance of municipal enthusiasm of the latter middle ages. This feeling is found among all classes. It animates artisans and employers, councillors and burgomasters. The city is a conscious, living thing with a big life of its own and a definite mission to perform. CHAPTER IX THE HOUSING PROBLEM IN GERMANY Germany has not solved the housing problem any more than have we. But Germany has attacked it with courage and intelligence. Bad housing is rec- ognized to be a national menace which must be cor- rected in the interest of the health and efficiency of the people. And officials seem agreed that the trouble is that there are not enough houses. Not only that, but private capital will not build enough houses to keep pace with the demand. It is not the magnitude of the problem that prevents capital from building; it is the absence of a commercial interest to induce it to do so. It is good business to perfect the automo- bile; to make it cheap, safe, and durable. Competi- tion compels this in most industries. But there is no such motive driving capital to build houses or to improve their appointments. Rather the reverse is true. Capital instinctively appreciates that a limi- tation of the supply of houses keeps up rents and increases the value of existing property. This is true because the housing problem is a land rather than a house problem. Land-owners act just as do coal 156 THE HOUSING PROBLEM IN GERMANY 157 operators, cotton-growers, or sugar-refiners in re- stricting the output. There is more money in land speculation than there is in house-building. That is the crux of the housing problem all over the world. Men speculate rather than build. Land speculation has created a house famine. This is the real explana- tion of high rents, of congestion, of the slum. There are lumber, bricks, and material enough to build all the houses the people want. And labor is eager to work upon them. There is no more difficulty about house-building than there is about any other indus- try. The thing that differentiates it from other ac- tivities is its identity with the land. And its identity with the land leads men to speculate and withhold land from use in the hope of increasing profits from this source. All over the world the city is growing with the same rapidity, and with the growth of the city land values tend to increase. The urban population of Germany in 1871 was 35.5 per cent, of the total. By 1895 it had risen to 49 per cent. In the latter year 13.2 per cent, of the people lived in cities of over 100,000 population, while in 1900 the percentage had risen to 16.18 per cent, and five years later to 18.97 per cent. It is this growth in urban population that leads men to speculate in land rather than to build houses. Professor Eberstadt, of Berlm, describes the situation of the modern city by saying that "the mediaeval town was surrounded by a wall to keep the invaders 158 EUROPEAN CITIES AT WORK out; while the modem industrial city is surrounded by a wall of land speculators, who keep the people in." Nowhere in the world has the housing question been studied with the thoroughness that Germany has given to it. The housing problem has been stud- ied in its relation to land, to transportation, to the health and well-being of the people. It is looked upon as one of the most important if not the most impor- tant municipal problem. The greatest variety of experiments are being made by cities, states, co-oper- ative associations, and private individuals in the working out of the problem. City authorities issue reports upon the subject, all planning schemes are related to it, while individual factories and industrial developments are laid out with reference to the proper living of the people. There are the most minute regulations as to the height of buildings, the amount of land that may be covered by the structure, the distance houses must be set back from the street, as well as the distance which separates one house from the other. Streets are arranged so as to give the maximum of sunlight in the hving-rooms. Their width is fixed so as to permit adequate open space around the houses. There is the most careful super- vision of plumbing and sanitary arrangements, as well as in the provision for small parks and open spaces. The literature on the subject is voluminous, as is the legislation of the various German states. We have nothing like it in America. England, THE HOUSING PROBLEM IN GERMANY 159 France, Belgium, and Austria are far behind Ger- many in their knowledge of the subject, while in no country in the world is it treated with the same big vision and appreciation of its meaning as in Ger- many. Studies have been made of the relation of urban land values to the rents people pay. In an article en- titled " Wohnungsnot" ^ Dr. Miiller asserts that the land underlying the city of Berlin increased in value during the twenty years from 1870 to 1890 by $857,- 000,000. It is this increase in land values that in- creases rent, and especially the rents of the very poor. It is this that drives up tenements, destroys the open spaces, and diminishes the size of the rooms. It is this, too, that makes it more profitable to speculate than to build. And it is realization of this fact that has convinced German housing reformers that the problem cannot be left to the free play of demand and supply, as in other industries. Mr. Camille Huys- mann, of Brussels, in a study entitled. La Plus- Value Immobile dans les Communes Beiges, has ana- lyzed the increase of urban land values in the cities of Europe. Speaking of Berlin, he says: "Taking a hundred inhabited houses, the average site or land value increased from $82 in 1855 to $166 in 1895, an increase of 100 per cent.; while the groimd rent of the individual person increased from 19.68 thalers in 1850 to 35.28 thalers in 1872. Of these hundred * Conrad's Jahrhucher, 1902. 160 EUROPEAN CITIES AT WORK houses the ground rent or annual site value forced up rentS; so that, whereas in 1865 30.74 per cent, had paid less than $37.50 a year, in 1895 only 8.47 per cent, paid this sum." Continuing he says : "The many inquiries conducted in Berlin demonstrate beyond question that the increase in ground rentals is more rapid than the increase in the value of real estate; that the number of cheap tenements tends to di- minish, while the number of dear tenements tends to increase." He shows that, while the number of houses increased from 1886 to 1895 by but 24.8 per cent., rentals increased 36.7 per cent. Insurance on buildings increased by $500,000,000 from 1870 to 1890, while land values increased by $875,000,000. In 1881, 16.23 per cent, of the people paid an aver- age rent of less than $37.50, while ten years later only 7.32 per cent, paid less than this sum.^ Investigations in Berlin have shown that the poorer classes pay from one-fifth to one-quarter of their total income in rent. Six hundred thousand, or nearly one-third of the population, Hve in dwellings in which each room contains five or more persons, while 80 per cent, of the working people in the larger towns of Germany are said to live in cellars, attics, and tenements inadequate to the maintenance of a decent family life. Official reports on the sub- ject show that in the following cities, out of every 1,000 persons, there live in dwellings consisting of ^ La Plus-Value Immobile dans les Communes Beiges, pp. lQ-12. THE HOUSING PROBLEM IN GERMANY 161 only one or two rooms the following number of per- sons, to wit: in Berlin, 731; in Breslau, 742; in Dresden, 688; in Hamburg, 523; in Hanover, 679; in Konigsberg, 760; in Magdeburg, 726; in Mann- heim, 610; and in Munich, 524.^ In the solution of the problem, Germany has adopted three general policies. In the first place, the land within and without the city is planned with great care to prevent the reappearance of tene- ment conditions in the new quarters. Second, the municipality either builds or promotes the building of suburban garden communities or the erection of model apartment-houses within the city. A third policy, referred to elsewhere, is the taxation of vacant land at a higher rate than improved land, to force the owner to build. In addition, the cities generally own the means of transit, which, together with the state-owned railways, are used for the distribution of population out into the country and surrounding villages. The housing problem is treated as an integral part of town planning. When a suburban district is opened up, transportation facilities are at once pro- vided, and before any building is permitted details of streets, parks, and open spaces are fixed by ordi- nance of the council after exhaustive study of the subject by engineers, landscape artists, and industrial and sanitary experts. This is all done before the \ Die Wohnungsfrage, Dr. Eugen Jaeger, Berlin, 1903. 162 EUROPEAN CITIES AT WORK streets are constructed or the land is placed upon the market for sale. Health and sanitary conditions, as well as the gen- eral welfare of the people, are constantly kept in view. Residence streets in the workingmen's sec- tions are of narrow width, in order to keep down the paving costs and permit a larger area of land to be used for parkage and open spaces. Playgrounds are provided at frequent intervals, as weU as public gar- dens. All this is part of a conscious health pro- gramme; it is part of the conviction that healthy citizens are the best asset of the state, and that health can only be enjoyed with proper home sur- roundings. It is further recognized that cheerfulness, hopeful- ness, and a love of life itself have value, to promote which the newer sections have a park-like appearance, it being generally recognized that the larger the town the more numerous the open spaces should be. In order to insure fresh air for everybody, buildings are lower in the outskirts than they are in the centre of the city. The towns are divided into building dis- tricts, or zones, in each of which the building regula- tions are adjusted to local conditions. As one passes from the centre of the city to the outskirts, the height of buildings gradually diminishes, until in the outer section only two stories are permitted. In the second place, towns quite generally build apartment-houses or construct suburban garden cot- THE HOUSING PROBLEM IN GERMANY 163 tages either to rent or to sell. The state authorities frequently provide houses for their own employees, while many of the larger employers have made ex- tensive provision for the housing of their people. As a general rule, however, housing projects are carried through by co-operative building societies, which are aided by loans from the insurance funds of the state, or by the city, at low rates of interest. Such socie- ties are found all over Germany and are making sub- stantial progress toward the solution of the housing problem. The various states lend their hearty approval to this programme of municipal activity; they urge towns to build houses, to loan money to workmen, to acquire land, and extend the means of transit to the suburbs. The Interior Department lends every assistance possible and places the stamp of its ap- proval upon this line of municipal enterprise. The ambitious building schemes of Germany would have been impossible without this co-operation. Money is loaned for the construction of workingmen's dwellings from the reserves of the old-age pensions, accident and invalidity insurance funds, at from 2)^ to ^}4 per cent, interest, with provision to amor- tize the loan in a given number of years. ^ Some- ' Up to December 31, 1910, the various insurance funds had con- tributed $76,175,598 as loans for the erection of workingmen's houses. Of this sum $4,470,801 was invested in lodging-houses and other means of providing for the needs of unmarried wage-earners. The average rate of interest ranged from 2i per cent, to 4i per cent. An exhaustive study of housing reform in German cities is found in 164 EUROPEAN CITIES AT WORK times the money is loaned to the municipahty, which builds the houses, but more often it is loaned to co-operative building societies, which find approxi- mately one-tenth of the necessary capital, the in- surance funds providing the remaining nine-tenths for the purpose. The mortgages run for long periods of time, and the conditions of repayment are made as attractive as possible. $76,175,598 has been loaned out of the reserves of the insurance funds for this purpose. The dividends to private investors in the stock are limited to not more than 4 per cent., while the workingmen become stockholders by making par- tial payments in the form of rent, for which stock is issued. Subscriptions by the tenants can be with- drawn on notice, so that their investment is, in fact, like a savings bank deposit. The rents are low and are so adjusted as to pay the maintenance charges of the property, the interest on the loan and the stock, and ultimately amortize the debt. By this means a sense of home ownership is assured to the tenant along with an investment that can readily be converted into cash. The tenants acquire an interest in the entire apartment rather than in an individual home, which leads them to watch their neighbors and prevent any misuse of the property. Wohnungsfursorge in deutschen Stddten, Berlin, Carl Heymann's Verlag, 1910. It shows the remarkable progress made in recent years in the building of new houses, as well as in the more effective control of private construction by inspectors. The building regulations gov- erning the erection of dwellings are included. THE HOUSING PROBLEM IN GERMANY 165 They are guaranteed against any increase in their rent and participate in the administration of the undertaking by the election of a certain number of the board of directors or trustees. Many thousand people already live in these co- operative apartment-houses in Berlin, erected by voluntary associations aided by the insurance funds of the state. Something like ten thousand apart- ments are provided in the blocks so erected. These new apartment-houses are not barracks; they do not suggest the cheap, tawdry tenements of New York and Chicago. They are usually designed with great care by competent architects; they often oc- cupy an entire city block, and are designed to secure the maximum of comfort and architectural effect. The blocks are frequently arranged like a figure eight with two court-yards in the interior, one of which is equipped as a playground for the children with grass and sand plots, gymnastic apparatus, and other opportunities for play. The other is for grown- up persons and contains gardens, flowering plants, benches, and an opportunity for men and women to spend their evenings or holidays in a park-like en- closure. Other apartment-houses are set back from the street and have garden-plots in front. Balconies are built upon all sides of the apartment-house, which are usually ornamented with flower-boxes so that the block offers an artistic effect, with Httle to sug- gest the tenement. 166 EUROPEAN CITIES AT WORK The Berlin Savings and Building Society is an example of many others in Berlin, as well as of most of the large cities of the empire. The society was organized in 1881. It now has 958 dwellings or apartments in a dozen great structures. It has 5,000 members, of whom 3,500 are workmen and 1,500 are clerks. Of the 958 apartments of the Berlin Society, 223 rent at from $50 to $75 a year, 114 rent at from $75 to $87 a year, 164 at from $90 to $100 a year, while the remainder run up as high as $225 a year. The more expensive apartments contain a private bath, while all of the apartments have the use of pub- lic baths in connection with the house. Even the smallest apartment has light in abundance and a compact little kitchenette. Rooms are of comfort- able size, are clean, and thoroughly sanitary. The most fastidious would find nothing to offend in the cheapest of these apartments. They bear about the same resemblance to a New York or Chicago ten- ement that a country villa does to a workingman's house in the mill districts of Pittsburgh. There is free water in each flat, as well as many other con- veniences. Each apartment-house is a community by itself. Usually there is a free kindergarten in which the children can be left while the parents go out to work. It is presided over by an instructor. There is a res- taurant as well as a smoking, lounging, and club room for the men, with all kinds of games. A well- Berlin Model Apartments. Erected by co-operative societies from insurance funds. Apartments rent for from $4.50 a month upward. Essen, Altenhof. Workmen's Colony of the Krupp Company. THE HOUSING PROBLEM IN GERMANY 167 chosen library and reading room is also provided. In connection with many of the houses are co-opera- tive stores and baking establishments in which the tenants buy their supplies at cost. In the basement there is a free public wash and drying establishment. All these services are included in the rent which the tenant pays. There is no suggestion of charity and little patronizing oversight. Each house is admin- istered separately, partly by the tenants, partly by the society which erects them. The tenants choose a house master who collects the rents, watches the premises, and represents the tenants before the board of directors. These tenements are highly prized. There is a large waiting list of applicants who can- not be acconmaodated. The Chamber of Commerce of Frankfort-on-the- Main, in a pamphlet prepared by it entitled: A Glimpse of Social Reform in Germany, describes the co-operative apartment-houses erected by the city, as well as their relation to the state insurance funds, as follows : "The [insurance] administration has loaned, up to the end of 1909, 280,000,000 marks on mortgage to small apartment building societies, both joint- stock and co-operative and also to individuals. The seventy-six houses [in the city of Frankfort] cost 1,430,000 marks, and the provincial administra- tion loaned to the company 1,350,000 marks, or 92 per cent, of their value. It loaned almost the full value because sufficient provisions for a sinking-fund 168 EUROPEAN CITIES AT WORK have been made and because of the indirect benefits it derives. That this way of employing the funds of the insurance is a step in the right direction is proved by the fact that the mortahty in the apart- ments of the society is but six per cent., as against an average of 13.84 per cent, in the city as a whole. The mortality of 5.8 per cent, among the infants con- trasts very favorably with that in the city generally, which is 12.37 per cent. The state insurance authori- ties cannot invest their money to any better pur- pose. The society in Frankfort is a joint-stock com- pany whose sole purpose is to build small apartment houses. It belongs to the class of so-called pubHc utility societies, as it does not seek an economic rent, its dividend being restricted by statute to three and one-half per cent. All earnings above this rate are used for the maintenance of the so-called dwellings extension. As it is impossible for the rent paid by the tenant to furnish each apartment with a parlor, library, and nursery, separate club-houses have been erected. In these club-houses the youngsters are taken care of by trained kindergarten nurses, while their parents are earning their living or while the mother attends to her household duties. Here the tired father may read the papers in the evening un- disturbed or play a game of chess or dominos with his next-door neighbor. Entertainments are given in the club-house, and on Christmas Eve a big Christ- mas-tree celebration is held." The city of Ulm, in Wiirtemberg, has carried through the most ambitious and famed housing pro- gramme of any city in Germany, if not in the world. The city is an important manufacturing centre of about 56,000 inhabitants and owns 80 per cent, of THE HOUSING PROBLEM IN GERMANY 169 all the land in and around the city. In 1902 the city authorities acquired the site of the old fortifica- tions which surrounded the city, and began the development of a town planning and housing pro- gramme. It was seen that the razing of the fortifica- tions and the opening up of the outlying territoiy would greatly increase the value of the real estate, so the city determined that the improvements should benefit the city itself and not the land speculators. As early as 1891 the council began to buy the sur- rounding land, and by 1909 nearly 1,200 acres had been purchased, at a total cost of $1,389,640. Four hundred and five acres were later resold for $1,623,- 924, leaving the city with 805 acres, and a net profit of $234,284 from the sale of one-third of its purchase. Ulm was already a large landlord, and the addition of these holdings brought the total area of the city's possessions up to 4,942 acres. The territory surrounding the town, including the fortifications, was laid out for the purposes for which it was best fitted. One section was set aside for all kinds of business, for minor industries and dwelling- houses. In another section close beside the railways provision was made for large manufacturing plants. Elsewhere a suburb was planned for the working classes, while in another section the land was planned for villas and houses of substantial size. A great woods was reserved for recreation and sport. Mu- nicipal ordinances were passed which fix the tjrpe and 170 EUROPEAN CITIES AT WORK kind of houses that may be built in the several dis- tricts. Almost all of the houses are of the detached- cottage type, those in the workingmen's district being required to be at least seventeen feet apart, while those of clerks and well-to-do persons must be twenty-three feet apart. In the more expensive residence district the interval between the houses must be from thirty-three feet to forty-seven feet, according to the value of the property. Inasmuch as the city owns 80 per cent, of the land it is able to keep down prices for both industrial and residence purposes. The contracts of sale contain re- strictions as to the type and character of houses that may be built, as well as a provision that purchasers must build within a given number of years. Specu- lation is eliminated by a reservation which permits the city to buy back the land and to refuse its as- sent to any sale to other purchasers, as well as to control the rent to be paid. The city itself has built 175 individual houses, con- taining 291 apartments, for 1,367 inhabitants. These apartments are built for sale rather than for rent. The purchaser pays 10 per cent, down and the bal- ance at 3 per cent, interest and 2 per cent, for the sinking-fund to repay the mortgage. Co-operative societies have constructed 18 other apartment-houses containing 62 flats. The kingdom of Wiirtemburg, the postal administration, and several industrial un- dertakings have also erected houses for their em- THE HOUSING PROBLEM IN GERMANY 171 ployees. The houses are of cement, are usually two stories in height, and are so arranged that the pur- chaser can rent one floor and occupy another. Rents range from $41.65 per year for two rooms up to $90.44 for three rooms. The houses erected by the building societies are on municipal land under a leas- ing system, the city agreeing to buy back the houses at the end of seventy years for 80 per cent, of the construction value. Just outside of the city of Dresden, and connected with it by trolley, is another experiment in the solu- tion of the housing problem, which is being widely copied. It is Hellerau, the first garden-city in Ger- many. It was promoted by a private individual, but is being carried out along co-operative lines. Three hundred and forty-five acres of land were pur- chased and laid out as a suburban residence for ar- tists, clerks, and workingmen along the lines of medi- aeval German towns. The undertaking was started in 1909, and the first year one hundred and fifty cot- tages were built, which were immediately occupied. The next year as many more cottages were erected. By 1912 nearly 300,000 square metres of land had been developed for dwellings, country houses, and in- dustrial purposes. Cottages are erected by a co-operative building society and are rented to members only, at from $62 to $150 annually. Each cottage has a garden, a cel- lar, a separate scullery, with water, gas, and electric 172 EUROPEAN CITIES AT WORK light. The smallest cottages contain four rooms — a kitchen and living-room on the ground floor, and two bedrooms on the upper floor. The houses con- tain the most compact equipment for heating, for cooking and laundry purposes. In order to become a member of the society stock to the amount of $47.60 must be subscribed for. In another quarter of the village villas and residences are being built, to rent for from $200 to $500 a year. These contain steam heat, warm water, and other conveniences. AH of the houses are built by the garden-city company, and are let on a basis sufficient to pay interest on the value of the land and building and the ultimate repayment of the cost. The whole village is laid out like the garden-cities of England. Artistic effects are secured through a building commission which passes upon all archi- tects' plans. In connection with the village is a physical training institute. There are schools for younger children, while an agricultural college is planned. In two years' time the population has grown to 2,000. The success of Hellerau has led to the organization of other garden-city societies in different parts of the empire. Karlsruhe started a suburban garden-city in 1911 of 30 acres of land, and Ratshof with 500 acres, and a building project of 55 houses. Nuremberg and Munich have laid out 165 and 200 acres, respectively, THE HOUSING PROBLEM IN GERMANY 173 along garden-city Knes. Nuremberg plans the erec- tion of 74 houses, while the Munich project involves the ultimate housing of from twelve to thirteen thou- sand people. All of these undertakings are financed by direct action of the municipality or through co- operative associations supplied with funds at a low rate of interest by the municipal savings-bank and the insurance department of the empire. One of the promoters of the German garden-city describes the motives underlying these new experi- ments as follows: " We understand, then, by a garden city or garden suburb, not a pleasant town or suburb with a few gardens within its walls. Nor has the term any- thing to do with the colonies or villas which land speculators adorn with the name of 'garden cities' in order to attain public recognition of their purely commercial enterprises. A garden city is a sys- tematically planned settlement on suitable land which will be in the permanent possession, in the last resort, of the community (state, commune, society, etc.), in such a manner that any land specu- lation will be altogether prevented and the increment in value assured to the community. The social and economic basis provides and secures to the newly established city the garden also — (even for those of slender means) — and so makes it a garden city." Germany is attacking the housing problem in still another way. It is being treated as a land as well as a house problem. And along with the building of houses by municipalities, state authorities, and co- 174 EUROPEAN CITIES AT WORK operative associations, the cities and the state are using the agency of taxation to discourage land spec- ulation. This is one of the motives behind the un- earned increment tax described elsewhere; it is a motive fully appreciated by city authorities and housing reformers. Cities tax unimproved land at double the rate imposed on improved land. By this means they place official approval upon those who build. The imperial unearned increment tax of 1911 exempts land used by co-operative societies, munici- palities, and associations organized to build small homes, for the same reason. The world has only begun to realize that taxation can be used to promote a social pohcy, just as it has been used in the past to promote an industrial policy. By means of the protective tariff we attempt to en- courage domestic industry by excluding foreign com- petition. By means of high Hcenses and excise taxes we seek to control the liquor traffic, reduce the num- ber of saloons, and increase the cost of intoxicating liquors to the consumer. During the Civil War we drove the bank-notes of the State banks out of circu- lation by a Federal tax of 10 per cent., which made their issue impossible. For different reasons Germany, England, Austraha, and Western Canada are beginning to tax land mo- nopoly to discourage speculation. Increased taxation on vacant land forces the owner to use it or to sell it to some one who will. The tax imposed in these THE HOUSING PROBLEM IN GERMANY 175 countries is not yet very burdensome, but it has been found effective in discouraging idle landholding. The Mayor's Committee on Congestion in New York a few years ago recommended reducing the tax rate on improvements to one-half the rate im- posed on land, to encourage building and discourage land speculation. It seems quite obvious that a tax on buildings discourages buildings just as the Fed- eral tax on bank-notes destroyed their issue. It is equally apparent that the taxation of idle land com- pels its owners to use it. The increased taxation of suburban land will open it up for homes, for market- gardening, for all sorts of purposes. It will make jobs for more men, and this, in turn, will increase the labor demand and improve the standard of living of the workers. This policy of land value taxation will destroy the psychological motive, referred to earlier in the chap- ter, which obstructs the building of houses. For if we tax land heavily enough there will be less reason for holding it idle in the hope of speculative gain. Men will be compelled by economic necessity to use their land. It will not be possible to erect tax-earners which disfigure the community, or to hold a growing city close confined within narrow limits. Taxation will offset the hope of speculative profits. Land- owners will be driven by the same forces that, drive automobile builders to perfect their output; they will be driven by necessity to build, and when that 176 EUROPEAN CITIES AT WORK time comes the building of houses will be like any other competitive industry. If we compel owTiers to build, the housing problem will take care of itself. There will be no need of municipal dwellings; Httle need of tenement regula- tion. Competition will take care of this. At the same time the art of house building will become a real art, as it must become if houses seek tenants in- stead of tenants seeking houses. It will awaken architects, artists, and decorators. Then men will build houses that combine use with beauty, variety with comfort — houses that reflect the inteUigence of the modern world. And the conditions which now prevail in housing can only be reversed by some such pressure as this, that will increase the supply so that tenants will al- ways have a choice. If landlords compete for ten- ants just as business men compete for buyers, then a new type of house will be erected; then the tene- ment will be improved of necessity, while the com- petition of suburban land will lower rents to all classes. And this condition of competition by land- lords for tenants can only be brought about by two means: either by the erection of dwellings by the community in competition with private owners, or by such a hea\7' taxation of land values that land cannot be kept out of productive use. CHAPTER X SOCIALIZING THE MEANS OF TRANSIT Tra-nsportation is a private business in America. In Germany and England it is more of a social agency. It is an agency closely related to the housing of the people, the distribution of population and the increase in opportunities for more wholesome living and play. All the countries of Europe, with the exception of Great Britain and France, own the steam railways, while outside of France and Belgium the street rail- ways are generally in public hands. Officials treat the means of transit as integral parts of the streets and highways which control the place as well as the way in which people live. Transit fixes rents. It de- termines the comfort, the health, and physical well- being of the community. Even the morals of the city are related to the means of transportation, be- cause of their close connection with housing, conges- tion, and opportunities for recreation. For the means of transit control urban life. They determine the height of buildings and the nature of construction. It was belated transit facilities that shot up the tenement and the skyscraper. It inten- sified land values and created the slum. People had 177 178 EUROPEAN CITIES AT WORK to build toward the heavens because they could not build along the ground. High rents and inadequate housing are the costli- est burdens of private ownership of the means of transit. Excessive fares, fictitious capitalization, all these are far less burdensome to the community than the artificial, unsanitary, and unwholesome living conditions which the close crowding of people creates. And these conditions are largely traceable to the private ownership of transit. Railways and elevated Hues in Europe are built into the city as though they were its circulatory system. They do not offend the eye; do not de- stroy whole sections of the community with ugly approaches, bad terminals, and unsightly overhead work. The stations are things of beauty as weU as of use, while the water-fronts, when occupied by tracks and terminals, are protected from destruction by them. Grade crossings have everywhere been eliminated for the protection of life. And the over- head work is designed by artists, so that the elevated structures of Germany, Belgium, and France are adornments to the city. Everywhere service is the paramount consideration. Industry is encouraged by cheap rates, while travel is made as cheap and comfortable as possible. The engineer, the artist, and the administrator unite in the development of trans- portation facilities as a social rather than a merely profit-making enterprise. SOCIALIZING THE MEANS OF TRANSIT 179 Of the fifty largest cities in Germany twenty-three operate the street railways, while of a similar num- ber in Great Britain forty-two operate them. In neither of these countries is there any movement away from municipal ownership, even where the most rigid regulation is possible. For experience has shown that regulation touches only the evils of over- capitalization, excessive charges, and obviously bad service. Private ownership does not permit the city to build in a far-sighted way or to treat transit as an integral part of city building. German cities adopted ownership, just as they did in Great Britain, after a test of private ownership. Franchises were originally granted to private corpo- rations for from twenty-five to forty years. But con- flicts were constant over the same questions that arise in this country. Employees were overworked and underpaid. The service was unsatisfactory. Cities desired extensions into the suburbs in con- nection with their housing programmes. The cor- porations, on the other hand, resisted such exten- sions; they tried to restrain the city within narrow limits, as short hauls increase car-mile earnings. For it is the car-mile rather than the gross earnings that determine street-railway profits. High car-mile earn- ings mean high dividends. Low car-mile earnings mean small dividends. That is the reason for street- car crowding. It explains the strap-hanger. It is always to the interest of street railways to congest 180 EUROPEAN CITIES AT WORK population in the smallest possible compass. It is to the interest of the community, on the other hand, to distribute population as widely as possible. Herein is an inevitable conflict between the community and private interest in the business of transportation. It is this that makes it essentially a public function, for no matter what the regulation, this conflict of interest precludes the harmonious adjustment of the private to the public interest in the matter of transit. This conflict does not exist to the same extent in other pubHc utihties. Transfer to public ownership in Germany was gen- erally coincident with the change from horse to elec- tric traction. This enabled the cities to acquire the properties at a relatively low valuation before the corporations had appropriated the economies and increased earnings which followed the electrification of the lines. And everywhere the change has been fol- lowed by improvement in service. This is obvious, even to the casual traveller, as he passes from Diis- seldorf, Cologne, Frankfort, and Dresden to Ham- burg and Berlin. The public lines are more perma- nently constructed than the private ones. Cars are better, cleaner, and more comfortable. The employ- ees are more courteous. Everywhere tracks are laid flush with the pavement, while girder-grooved rails are universally used. There is scarcely any noise from worn-out cars or bad tracks. Some cities have abolished street-car advertisements. And in all SOCIALIZING THE MEANS OF TRANSIT 181 these cities the strap-hanger is not permitted. There are no "step forward," "step lively" orders from the conductors. This is true even during rush hours. Comfort and convenience are studied in construction as well as in operation. The artist confers with the builder in the designing of cars, in the building of waiting-rooms to protect the people from inclement weather, as well as in the signs along the route which indicate the destination of cars. In the wider streets the tracks are sodded with grass to keep down the dust and reduce the noise. The zone system of fares prevails in Germany as it does in Great Britain, the rate being generally 23^ cents, which includes the right of transfer. Beyond the city limits higher fares are charged. But the aver- age fare is much lower than in this country. There is a curious custom in Germany of feeing conductors, in consequence of which wages are lower than they are in England, although they are higher than under private operation. Dresden is typical of other German cities in the number of devices adopted for the convenience of passengers. Even a stranger can use the street rail- ways without knowing the language or the street ar- rangement. Each of the eighteen lines is designated by a number instead of by name. Cars on the even- numbered routes are painted red, while those on the odd-numbered routes are painted yellow. The num- ber is conspicuously displayed on the car, as are the 182 EUROPEAN CITIES AT WORK general route names, which are indicated by signs on the sides. Within the car is a map, on one side of which are shown the routes of all the car lines to- gether with their numbers, while on the opposite side are the various zones into which the city is divided. There are two belt lines which intersect all other lines and make every part of the city accessible with a maximum of two transfers. Cars are supplied with clocks furnished as an advertisement. Stops are in- dicated by red signs attached to the lamp-posts. They are usually in the middle of a block, so as to interfere as little as possible with traffic at street intersections. Illuminated index signs are placed at the principal railway stations for the convenience of strangers. The rates of fare are arranged according to the zone system. Two cents is the fare for a single average ride, while four cents is the maximum. Trailers are used during rush hours in which smok- ing is permitted. In Berlin, where the lines are in private hands, the service is excellent. There are more seats than pas- sengers at almost every hour of the day. There is little or no overcrowding during rush hours. Not more than seven persons are permitted to stand. The rush-hour traffic is handled by the use of trailers, which are of light construction but easy-running. Each car contains descriptive maps and indicators arranged so that the passenger can tell where he is SOCIALIZING THE MEANS OF TRANSIT 183 as well as the route and destination of the car. In the suburbs tracks are laid in grass-plots in the cen- tre of the street. The rate of fare is a flat charge of 2]/i cents, which entitles the passenger to a maxi- mum ride of thirteen miles. Workingmen's tickets are sold at the rate of 23.8 cents a week when used twice a day and for half that sum when used but once. Tickets for school-children cost but 71.4 cents a month. Most of the lines are so routed that transfers are not necessary. Berlin is also served by a private elevated and sub- way system which has been extended far into the suburbs. There is scarcely any noise from the ele- vated lines, as the tracks are heavily ballasted. The stations are completely enclosed from the weather, and are of beautiful design. Those in conspicuous places have the imposing beauty of the German rail- way station. The elevated is called the "Umbrella of Berlin," because it offers a means of shelter from the rain and the sun, while the operation is so nearly noiseless as to cause the minimum annoyance to the public. The city of Frankfort-on-the-Main, which began the operation of its lines in 1903, is consciously pro- moting suburban development through its tramways. The new industrial sections, as well as the surround- ing villages, have been linked with the city railways in a comprehensive way. An official statement of the policy of the city in regard to transit is as follows: 184 EUROPEAN CITIES AT WORK " It is of great importance that there is good tram connection between the city and the new district. The city of Frankfort is in a fortmiate situation of being the owner of the tramway, and can carry out a scheme for traffic quite independent of a too far- reaching consideration of receipts. Frankfort will, therefore, immediately lay down an electric tram connection so that it will be already in use while the industrial section is in course of development. Further, the city will construct its own suburban lines, with its special permanent way, which will travel with greater speed. This railway wiU run to the surrounding villages, where the working classes can, in general, live cheaper, better, and healthier than in the city." The steam-railroads of Germany are also used for the development of suburbs and the improvement of housing conditions. Very cheap commutation fares are charged, which are consciously adjusted for luring the working classes out into the surrounding country. One can live many miles from Berlin and travel to and fro each day at less cost than that of surface transportation in this country. On holidays and Sundays innumerable train-loads of people are sent out into the country at very low fares. From early morning until late at night the trains are filled with families taking an outing. As one enters the crowded stations or goes to the various resorts, it seems as though the whole population were out on a holiday. In Switzerland, Belgium, and Denmark tickets are sold good for a fortnight, which entitle the holder to Copyiight h-j Viulei-irond i(- Cmlenruod. Elevated Railway in Berlin along Canal. Showing method of construction, development of water-ways and water-front parking. SOCIALIZING THE MEANS OF TRANSIT 185 travel as far and as many times as he likes. They are designed to stimulate travel and a knowledge of the country. They are a kind of vacation tickets, limited in time but not in distance. No country in Europe has done as much as Bel- gium to consciously use its railroads to distribute the working population out into the countryside. It has done this by extremely low fares upon the state-owned railway lines. Beginning in 1870, the government inaugurated workingmen's trains on almost all of its lines at very low rates, and at hours to suit the con- venience of the work-people going to and returning from their work. A man may live six miles in the country and travel to and from his work six days a week for 24 cents; he can hve 31 miles and pay but 43 cents, and he can live 62 miles and pay but 60 cents a week. This is for two trips a day. While the ordinary fare in a third-class compart- ment is 58 cents for a single return journey of 31 miles, a workman can travel this same distance to and fro six days in the week for 43 cents. This has worked a profound revolution in the dis- tribution of workmen. In 1870, when the system was inaugurated, 14,223 tickets were sold, and in twenty years' time their number has increased to 4,515,214. The great majority of these tickets are sold to men who make six journeys a week to and from their homes. It is estimated that from ninety thousand 186 EUROPEAN CITIES AT WORK to one hundred thousand workmen, or a ninth of the total industrial population, travel daily on the state railways to and from their work. They live in the country and enjoy some of the advantages of living on a farm. The effect of this policy has been described by Emile Vandervelde in these words: "Nothing surprises the traveller who goes from London to Brussels more than the contrast between the solitary stretches of pasture in Kent and the ani- mated landscapes in the neighborhood of Belgian towns. Enter Hesbaye or Flanders from whatever side one may, the countrj^ is everywhere thickly strewn with white, red-roofed houses ; some of them standing alone, others Ijong close together in popu- lous villages. If, however, one spends a day in one of the \dllages — I mean one of those in which there is no local industry — one hardly sees a grown-up workman in the place, and almost believes that the population consists nearly entirely of old people and children. But in the evening quite a different pict- ure is seen. We find ourselves, for example, some twelve or thirteen miles from Brussels at a smaD rail- way station in Brabant, say Rixensast, Genval, or La Hulpe. A train of inordinate length, consisting almost entirely of third-class carriages, runs in. From the rapidly opened doors stream crowds of workmen, in dusty, dirty clothes, who cover all the platform as they rush to the doors, apparently in feverish eagerness to be the first to reach home, where supper awaits them. And eveiy quarter of an hour, from the beginning of dusk till well into the night, trains follow trains, discharge part of their human SOCIALIZING THE MEANS OF TRANSIT 187 freight, and at all the villages along the line set down troops of workmen — masons, plasterers, paviors, car- penters with their tool-bags on their backs. Else- where it is colliers, miners, workmen in rolling-mills and foundries, who are coming from the Mons dis- trict, or Charleroi or Liege, some of them obliged to travel sixty or seventy miles to reach their homes in some world-forgotten nook in Flanders or Limburg. And on other parts of the railway, in Campine, in Flanders or the Ardennes, Antwerp dock-laborers, weavers in the Roubaix and Tourcoing factories, metal-workers, travel daily into France, and when their day's work is done return to the country place where they find their beds. In short, in Belgium, there are few villages which do not contain a group of industrial workers who work at a distance, and often at a great distance, from their homes." A study of the Em^opean city compels a readjust- ment of one's ideas of municipal ownership. Instead of inefficiency one finds efficiency. In the place of indifference to improvements the city is more open- minded than are the private managers. The public employees are more courteous than are the private ones, while officials are constantly on the alert to increase the comfort and convenience of the people. In addition to the other advantages, public owner- ship enables cities to experiment in a way that is not possible under private management. They ascertain for themselves as to what the service costs. They have also been able to introduce many new devices. And improvement has almost always followed the 188 EUROPEAN CITIES AT WORK change from private to public hands. With cheap and adequate credit, and with no fear of franchise expirations, the city builds for permanence. And the pubHcly owned Unes are far in advance of the private ones in this respect. Almost everywhere in Europe the means of transit have taken their place alongside of health, police, and fire administration as natural activities of the community, and as in- separably bound up with a proper city programme. CHAPTER XI NEW SOURCES OF REVENUE; THE UNEARNED INCREMENT TAXES All over the world governments are seeking new sources of revenue with which to satisfy demands for war and naval purposes as well as the social legisla- tion which industrial conditions have created. All over the world, too, protests are being made against the injustice of customs and excise taxes, exacted mostly from the poor; against the many indirect taxes that have come down to us from feudal times. And it is interesting to note that a tendency is manifest to return to the sources from which all rev- enues came in early times; to the taxation of the land itself, which for centuries was almost the only source of state and local revenues. The beginning of the movement for the taxation of land values in Germany is generally ascribed to the activity of the Bund der Boden Reformer, or Land Reform Society, of which Dr. Adolf Damaschke, of Berlin, is the leader, while the first experiment with the unearned increment tax, or wertzuwachssteuer, was in a distant Asiatic colony. In 1898 Germany ac- 189 190 EUROPEAN CITIES AT WORK quired the harbor of Kiaotchau from China under a lease for ninety-nine years, with all the rights of sov- ereignty. The area of the concession was 160 square miles. In twelve years' time Kiaotchau has become one of the most successful German colonies. The harbor is said to be the finest in eastern Asia, not even excepting Hong-Kong, while the city has been planned in a comprehensive way by experts on the subject. Its trade has grown with phenomenal ra- pidity, the exports having increased from $1,650,000 (Chinese dollars) in 1899 to $15,143,847 in 1907, while the total trade of the port increased from $6,000,000 to $51,000,000 during the same period. German land reformers trace the success of the harbor to the land and taxing policy adopted on its transfer to German authorities. At least the ex- perience of Kiaotchau is constantly cited as proof of the wisdom of taxing land values. The admiral com- manding the German squadron. Von Diederichs, and the Chinese commissary. Doctor Schrameier, were both members of the German Land Reform Society. They saw that the harbor was bound to grow, and that land speculation would ine\dtably follow. They appreciated that the growth of the harbor might be checked by real-estate speculators, and that the community itself might be enriched if it retained the speculative profits itself. A German wiiter^ describes the means employed to prevent specula- » R. Ockel, in Weslminster Review, July, 1908. NEW SOURCES OF REVENUE 191 tion and encourage the development of the harbor as follows : "The system of land tenure adopted in Kiaotchau is largely responsible for this phenomenal rise of a previously unknown place. On taking over the land at the price ruling before the seizure by the German Government, the order of the 2nd September, 1898, stipulated that the buyer of land shall pay a tax of 33 per cent, on the increased value, and that if a plot of land is not sold for twenty-five years, the owners shall pay a tax of 33 per cent, on the increased value found by assessment to have taken place. The owner of land has to give notice of any intended sale, and (in order to prevent under-assessment) the Gov- ernment has the first option to buy at the owner's figure. In addition, every land-owner has to pay each year a tax of 6 per cent, of the capital value of his land. The owner's valuation is taken, but again (in order to avoid under-assessment), the Government has the right to buy at the owner's figure. This tax effectually stops all speculation in land, and prevents the holding of land idle. The withholding of land from use is further checked by the regulation that, if land is not being built upon at a certain date, in accordance with the stipulated plan of building, the owner forfeits his right of property, and the Govern- ment takes it back, paying only half the assessed value. Instead of forfeiting the right of property, the order of December 31, 1903, imposes a progres- sive land value tax, which effects the same purpose of forcing the land into use." The motive of these taxes was to discourage any one from acquiring land except for use, and at the 192 EUROPEAN CITIES AT WORK same time to compel purchasers to use their holdings in a productive way. Land speculation is made costly rather than profitable; for no one but the com- munity can hold land idle in the expectation of spec- ulative gains. Prior to this experiment Germany had been famil- iarized with the idea of taxing land values by the work of Professor Adolf Wagner, of the University of Berlin, probably the leading authority on finance in Germany, who had advocated the taxation of the unearned increment of land for years. Prior to 1893 German communities assessed real property on the income it actually produced, rather than on its actual value for purposes of sale. This was the universal practice in Europe, as it still is in many other countries. About twenty years ago the interior department of Prussia issued an order based upon an act of the Prussian diet advising cities and smaller local di\'isions to assess land according to its selling value instead of upon the rent derived from it. Within a few years 350 communities adopted the new system of valuation in the face of the hos- tility of speculators and large land-owners. Rev- enues from real-estate taxes increased greatly. In Breslau they sprang from $2,530 in 1898 to $79,000 in 1899. In Schoenberg receipts increased from $356 in 1895 to $56,724 in 1902. In Kattawitz they in- creased from $93 in 1901 to $8,506 in 1902. "The result," a German writer says, "has been to discour- NEW SOURCES OF REVENUE 193 age the holding up of land and to open to both labor and capital further avenues of employment. As a matter of fact, hardly any unemployed are to be found at present in Germany, and a scarcity of labor has set in that seriously troubles many an employer." ^ The periodical valuation of the land at its selling value made it possible to introduce the unearned in- crement tax, or wertzuwachssteuer. It disclosed to the authorities the increasing value of city land, and confirmed the claims of land reformers that here was an untapped source of revenue for local purposes. German cities have great freedom in local matters and wide latitude in the matter of taxation. In 1904 the city of Frankfort-on-the-Main evolved the un- earned increment tax, which in a few years' time spread to nearly every large city in Germany. It is not the single tax of Henry George, and it has awa- kened little enthusiasm among his followers, although it is a partial appropriation by the community of the values which the community creates. For the single tax would collect all the needed revenue of city, state, and nation from the land, irrespective of any increase in value. By so doing it would force land into use and prevent speculation. The single tax is primarily a social philosophy and only incidentally a means of collecting revenues. The wertzuwachssteuer, on the other hand, is pri- »"The Taxation of Land Values in Germany," R. Ockel, Weat- minster Review, London, July, 1907. 194 EUROPEAN CITIES AT WORK marily a revenue measure; although it does dis- courage land speculation. Under the municipal ordinances of Frankfort the following land taxes were collected. First, on every change of ownership a tax of 2 per cent, is paid on the selling price of the property. This is simply a transfer tax, irrespective of whether the property has increased in value or not. Second, the unearned in- crement taxes were di\'ided into two classes: (1) those on the increase in the value of land, which continues without transfer in the hands of the same owner, and (2) taxes upon speculative profits realized from its sale. In the first case an ad-valorem tax of from 1 to 6 per cent, is imposed upon the increase in value, the tax upon land which is improved or built upon being about one-half of the tax upon land which is not improved and is held idle. This is to encourage improvements. The rates upon profits made from the sale of land are higher, and range from 2 per cent, to 25 per cent., depending upon the size of the profits and the time in which they are realized. These taxes were only imposed when twenty years elapsed between changes of ownership, and where the increase in value is more than 15 per cent. The seller is held responsible for the tax. The new tax has swept over Germany with great rapidity, and indicates the way new ideas are adopted in that country as well as the indifference of ofli- cials to property interests that stand in the way of NEW SOURCES OF REVENUE 195 the city's welfare. Community after community adopted it until, in April, 1910, the tax had been intro- duced into cities and towns with an aggregate popu- lation of 15,000,000. Nor is there any substantial protest against it, in spite of the fact that real-estate interests are active in city politics as well as the pro- vision of the Prussian law that one-half of the mem- bers of the city council must be owners of real estate. The tax meets with all but universal approval. Mr. Robert C. Brooks, writing in the Quarterly Journal of Economics, states that, following its adop- tion — "the new tax started upon a triumphal progress through the German municipalities. Before the end of 1907 it had been introduced by eleven cities, among which, besides Cologne, the more consider- able were Dortmund, Essen, and Frankfurt-am-Main. Since that date the accessions have continued with increasing rapidity until by April 1, 1910, no fewer than 457 German cities and towns had adopted the unearned increment tax. In Prussia alone 159 cities and 13 rural counties had introduced it prior to 1910. As the new form of taxation found most favor in rap- idly growing places of large and considerable popu- lation the true significance of the foregoing is greater than the bare figures might indicate. Of the Prus- sian cities and towns which had introduced the tax prior to April 1, 1910, 27 had more than 100,000 in- habitants, 72 between 20,000 and 100,000, and 64 be- tween 5,000 and 20,000. Berlin (2,018,279 popula- tion), after rejecting the new principle in 1907, finally accepted it in March, 1910. Nearly all the hustling 196 EUROPEAN CITIES AT WORK suburbs of the metropolis had anticipated it in this action. Among other large cities not already men- tioned which have introduced the unearned increment tax are Hamburg (874,878 population), Leipsic (503,- 672), Breslau (470,904), Kiel (163,772), and Wies- baden (100,953)." 1 In 1909 the Reichstag considered the advisability of adopting the unearned increment tax for imperial purposes, but action on the measure was delayed to enable the government to study its workings in the cities. In February, 1911, the proposal became a law, with the approval of all parties save the Social Democrats, the Cathohcs, and a portion of the In- dependents, the vote in the Reichstag being 199 for its passage to 93 against it. The Imperial law is an adaptation of the ordinances of the cities. Sales of land in individual parcels of 5,000 marks ($1,250) are exempt, as are large parcels of 20,000 marks ($5,000). Land held by public au- thorities, by housing associations which limit their return to 4 per cent., and holdings of philanthropic associations are exempt. These exceptions are de- signed to encourage the building of homes and the ^ "The German Imperial Tax on the Unearned Increment," Quar" terly Journal of Economics, August, 1911. See also a prior article by the same author entitled, "The New Unearned Increment Taxes in Germany," Yale Review, vol. XVI, p. 236, November, 1907. A number of reports on the local ordinances of German cities are to be found in a special consular repwrt entitled " Municipal Taxa- tion in Foreign Countries." Vol. XLII. Issued by the Bureau of Manufactures, Washington. For the latest information on the sub- ject see Daily Consular and Trade Report, June 22, 1912. NEW SOURCES OF REVENUE 197 promotion of co-operative and municipal housing schemes described elsewhere. The basis of the tax is arrived at from the follow- ing facts: first, the price paid for the property at the last sale; second, the cost of the permanent im- provements which have been placed upon it by the owner; and third, the selling price. The unearned increment or profits subject to the tax is the differ- ence between the selling price and the sum of the other two items. The measure was opposed by the land speculators and real estate interests, who suc- ceeded in so amending it that its friends claimed it "had no teeth in it." Increases in value are calculated from December 31, 1910, to catch a large number of sales made dur- ing the consideration of the measure. Stock corpora- tions had also been formed to anticipate the law, and the measure was made retroactive as to such transfers by being made apphcable to all sales subsequent to March 31, 1905, about the time of the adoption of the first municipal ordinances. Finally the law reaches back to January 1, 1885, to ascertain the price on which increments are calculated. And if no sale had taken place subsequent to that date the valuation of the property as of January 1, 1885, is taken as the base line from which increases are to be estimated. Included in the improvements which may be de- ducted are all permanent betterments as well as all 198 EUROPEAN CITIES AT WORK assessments paid by the owner for sewers, street improvements, and other municipal betterments. Other exceptions of a rather compUcated kind are permitted which include ordinary carrying charges at a fLxed per cent, on the investment, as well as the costs of the transfer. In addition the whole incre- ment is exempt unless it has advanced at a rate of from 4 to 5 per cent, a year. The rate of the tax imposed depends on the percentage of the unearned increment to the purchase price subject to the exemp- tions referred to. Consul-General A. M. Thackera of Berlin describes the new law and the rates of taxation imposed as follows : ^ "The rate of taxation varies from 10 to 30 per cent. The highest rate is imposed when the value of the real estate has increased 290 per cent, or more, and the lowest rate when the increase is less than 10 per cent." The table on nexi; page gives the rate of tax- ation. "The high rates are rarely assessed, as large in- creases in value occur only after the real estate has been held by the same owner for a long period, whereby, according to paragraph 16 of the law, there is a great reduction on account of long tenure. For every year that comes into consideration in levying the tax 23^ per cent, is added to the value of real estate valued up to 100 marks per are (2.21 cents per square foot). When the value is more than 100 marks per are, 23^ per cent, is added to that part 1 Daily Consular and Trade Reports, June 22;. 1912. NEW SOURCES OF REVENUE 199 up to 100 marks, and to the part above this sum 2 per cent, is added if the land is not improved, and 1^ per cent, if improved. As a result of this allow- ance any real estate whose value is increasing gradu- Increask op Value Up to 10 per cent . . 10 to 30 per cent. . . 30 to 50 per cent. . . 50 to 70 per cent . . . 70 to 90 per cent . . . 90 to 110 per cent. . 110 to 130 per cent. 130 to 150 per cent. 150 to 170 per cent. 170 to 190 per cent. 190 to 200 per cent. 200 to 210 per cent. 210 to 220 per cent. 220 to 230 per cent. 230 to 240 per cent. 240 to 250 per cent. 250 to 260 per cent. 260 to 270 per cent. 270 to 280 per cent. 280 to 290 per cent. Over 290 per cent . . Tax on Incrbabs Per cent. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ally and whose ownership remains unchanged is, in the event of a sale, in part or wholly relieved from paying this tax. " In addition to the foregoing far-reaching provision for length of ownership, paragraph 28 of the law pro- vides that the tax be lessened by 1 per cent, for every entire year considered in assessing the tax. If the property was acquired before January 1, 1900, the reduction is 13^ per cent, a year for the whole pe- riod up to Januaiy 1, 1911. Commenting upon the 200 EUROPEAN CITIES AT WORK law, Dr. W. Boldt, of the city council of Dortmund, says: "'By this twofold reduction the extremely large gains which are realized in the large cities as the result of original possession or of acquisition many years ago through speculation are favored entirely too much. While this allowance for an increase of value without taxation, provided for in paragraph 16 of the law, is thoroughly approved of in principle, it seems urgently to be desired that the reduction of the tax provided for in paragraph 28 of the law should be done away with or considerably lessened in the event of the revision of the law. This reduction of the tax, besides favoring the increased values pro- vided for in paragraph 16, benefits particularly the large property-holders and real estate which was ac- quired through speculation many years ago, as well as encouraging the retention of real estate in the large cities for speculative purposes.' "Certain transactions are exempted in levying the tax, of which the following are the principal : (1) In- heritances, so far as this would cause double taxa- tion owing to the inheritance-tax law; (2) changes in the tenure of real estate on account of marriage or in certain other family transactions; (3) the exchange of real estate to improve the shape of adjoining prop- erty." In the discussion of the law it was frankly admitted by all parties that land values are created by the growth of the community rather than by any efforts of the individual. And representatives in the Reichs- tag of the empire, the individual states and cities, all emphasized the extent to which their constituencies increased land values. Each claimed a share of the NEW SOURCES OF REVENUE 201 increment as its own creation. Under the final ad- justment it was provided that 50 per cent, of the proceeds of the tax should go to the empire, 10 per cent, to the individual states, and 40 per cent, to the cities or local governments. In addition, cities were authorized to add an additional local tax (zuschlag) to that imposed under the imperial law. Thus con- siderable freedom was left to the cities, while at the same time the whole unearned increment tax was brought under imperial control. The history of the unearned increment tax indi- cates the freedom with which German cities experi- ment; it indicates the liberty they enjoy at the hands of the state and the advantages that spring from a large number of experiment stations working on local problems in their own way rather than under hard and fast rules laid down by the state. Out of the Frankfort experiment the unearned increment tax spread to Great Britain, the Lloyd George budget of 1909 being in large part inspired by German experi- ence. It has been adopted or is being officially con- sidered in Austria, Switzerland, Denmark, and Bel- gium. Germany treats her cities as we do private business. We assume, without question, that the industrial progress of America is largely due to the freedom that private business enjoys, but we re- verse this principle in municipal government and assume that the best results will follow from a rigid and inelastic control of the city by a distant legislat- 202 EUROPEAN CITIES AT WORK ure, ignorant of local needs, and quite generally prejudiced against the city. The movement for the taxation of land values has spread to our own continent. In 1906 the city of Vancouver reduced taxes on houses and improve- ments by 50 per cent. The results which followed were so generally satisfactory that two years later the tax on improvements was reduced to 25 per cent. Finally, in 1910, the city abolished the taxation of houses, improvements, and personal property alto- gether. The result of the change was to greatly stimulate building operations, and to some extent to discourage land speculation. Idle holdings were broken up, and workingmen became home-owners. New capital came to Vancouver because investments in business and improvements were free from taxa- tion. There was an increased demand for labor which increased wages and stimulated business. Vancouver has grown with wonderful rapidity. Its prosperity is generally attributed in part at least to the exemption of capital and labor from taxation. Other cities in western Canada followed the example of Vancouver, until nearly all of the leading commu- nities collect their local revenues from a single tax levied on land values. These cities are Edmonton, with a population of 30,000; Victoria, with 60,000; Westminster, with 15,000; Lethbridge, with 15,000; Prince Rupert, with 8,000; and Nanajino, with 6,000 people. NEW SOURCES OF REVENUE 203 Land- value taxation has also made rapid progress in the AustraHan states. In 1896, New Zealand passed the "Rating on Unimproved Values Act," which is applied only to cities. The law is optional with each locality, its adoption being decided by ref- erendum of the voters. Up to 1909, eighty local bodies had adopted the provisions of the act. A supplementary act was passed increasing the rate of the tax according to the size of the holdings. The purpose of these measures was to break up idle land holding by taxing it into use. The rate is only a penny in the pound, which is low in comparison with our rates, but the principle of taxing only land values has been established. In South Australia and Queensland similar laws have been enacted, in the latter country all local rates having been levied on land values since 1891. In New South Wales, which contains one-third of the population of Australia, the tax has been rapidly ex-tended. In 1894 a tax of a penny on the pound was levied on land values. In 1905 local communities were required to levy the general rate on the unimproved value of the land, while further rating or taxing of land values was left optional with the shires or counties. Almost without exception, the one hundred and sixty-one municipalities have decided to collect their local rates from land values. Sydney levies an average of 3^ pence in the pound and other cities have raised the rate as high as 5 pence. As this method of assess- 204 EUROPEAN CITIES AT WORK ment can only be adopted with the approval of the voters, and as only real estate owners are permitted to vote on the question, this decision is obviously the reasoned conviction of the more conservative elements of the community that speculation rather than thrift should be taxed. In Sydney owners of improved property had their taxes decreased by from one-third to two-thirds, while owners of va- cant land had their burdens increased from 200 to 500 per cent. A parHamentary inquiry was made by Great Brit- ain as to the effect of these new land taxes. The testimony of local officials was all to the same effect. The report said building had been stimulated by "rendering it unprofitable to hold land for prospec- tive increment in value." The "effect on urban and suburban land has been very marked," it has " com- pelled owners either to build or to sell to those who would build." An " owner of land occupied by build- ings of Httle value, finding that he has to pay the same rates and taxes as an owner having his land occupied by a valuable block of buildings, must see that his interests He in putting his land to its best use." The rebuilding of WeUington, the report says, "is largely attributable to the taxation and rating of land values." The effect on rent is to bring it down rather than the reverse. "As the tax becomes heavier," the report continues, "it tends to bring into beneficial occupation land not put to its best NEW SOURCES OF REVENUE 205 use, and so reduces rent, the improvements being entirely free from all rates and taxes." The adoption of the single tax or its modification by lowering the rate on improvements and increasing it on land is comparatively easy in those states that separate the assessment of land and improvements as is done in Ohio, New York, Massachusetts, and elsewhere. In these States the growth in land values is easily ascertainable, and reports show that the in- crease in cities is colossal. New York and Boston have the most accurate statistics on this subject. In the former city the assessed valuation of improve- ments and land have been kept separate since 1903. They are published in the annual report of the com- missioners of taxes and assessments. From these reports it appears that land values alone increased by $786,004,307 in four years' time, between 1904 and 1908, or at the rate of nearly $200,000,000 a year. Between 1908 and 1911, the increase in land values was $712,759,780, or $237,586,590 a year. The spec- ulative increases in land values alone during these seven years was in excess of the total budget of the city, which amounts to approximately $180,000,000 a year. The city of Cleveland made a re-appraisal of its property for the purposes of taxation in 1909. It was found that the land underlying the city had in- creased by $177,000,000 in ten years' time, or more than twice the amount collected for municipal taxes 206 EUROPEAN CITIES AT WORK during these years. Wherever investigations have been made it has been found that land values increase at a definite ratio to population, and that in growing cities the growth is in excess of the annual expendi- tures of the city. This increase is from 4 to 5 per cent, per annum, which is the normal growth in New York. Four per cent, is the estimated increase in German cities, where the subject has been more ac- curately studied than it has been with us. And if we study population in relation to land values, we find that the latter amount to from $600 to $1,000 per capita, depending upon local conditions, or to from $3,000 to $5,000 per family. Land values reflect population. They reflect industrial prosper- ity, expenditures for improvements, for streets, for sewers, parks, and schools. They are increased by good transit, the extension of water, gas, and elec- tric lighting faciHties. Expenditures for these pur- poses add to the value of the land and of the land alone. They do not increase the value of the im- provements, whose value is always the cost of repro- duction. This is why land values are social values. They are not traceable to the industry of the owner or to any activity on his part. They spring from the close crowding of people, from the demand for build- ing sites, from the improvements in the art of living, of production, of transportation. All these things contribute to the value of the land, and to no other form of wealth. NEW SOURCES OF REVENUE 207 Land values are a natural source of taxation, grow- ing with the growth of the community, and respond- ing to the expenditures and improvements made by it. Year by year they increase with the coming of people and the advances of industry. And it is be- cause land values are the creation of the community, that they should be taken by the community for community purposes. CHAPTER XII THE BUDGET OF THE GERMAN CITY Three things stand out prominently in the budget of the German city and distinguish it from our own. One is the size of the budget and the generosity with which cities spend for things which would hardly be expected in a country where substantial wealth is of very recent appearance and where the great mass of the people are still very poor. In the second place, despite the fact that the cities are governed by busi- ness men, the taxes are almost all assessed against income, property, or business. Thirdly, the budget of the German city includes many business under- takings that in this and other countries are left in private hands. The extent to which such activities figure is shown in the budget of Diisseldorf, as well as in the budget of Mannheim referred to later in this chapter. Cities generally make a charge for many services that in this country are rendered free. There are admission fees to the zoological and palm gardens, to the museums, baths, and concerts. The German city tries to make as many services self- supporting as possible, while many activities realize an increasing profit with which the burdens of taxa- tion are being reduced. 208 THE BUDGET OF THE GERMAN CITY 209 Wide latitude is enjoyed by the city in the matter of taxation as in other things. There are no inflex- ible limitations on the tax rate or the indebtedness imposed by the state constitution or by law. The city is assumed to be the best judge of these matters, although the interior department maintains a watch- ful eye to see that well-recognized standards of effi- ciency and conduct are observed. But the city has considerable latitude to place its taxes where it wills, to shift them from incomes to real estate, to tax business, luxuries, and transfers of property as suits the judgment of the community. The laws of the several states also differ from one another, although a general uniformity prevails throughout the empire. Real estate bears a very much lower rate than in this country. Up to very recently, under the system of assessment which prevailed, it bore an inconsid- erable burden. Nor is the general property tax found in any state. It is unknown in Europe. No- where is it assumed that all property should be taxed at the same rate irrespective of its character. Personal property is not taxed at all, nor are stocks, bonds, mortgages, or intangible forms of wealth. From one-fourth to one-half of the tax receipts come from the income tax, which is the central feat- ure of the system just as the real-estate tax is with us. Real estate is taxed by three separate taxes, one levied at the time of sale at a certain percentage of the selling price; another tax is levied on the capital 210 EUROPEAN CITIES AT WORK or rental value of the property, while a third, or "un- earned increment," tax is collected from the profits of speculation or the increasing value of land. Taxes on business yield a very substantial sum, as do licenses on the sale of beers and wines. Dogs are taxed, while the tickets or receipts of theatres, con- certSj and places of amusement yield a considerable sum. The latter are in the nature of luxury taxes. The income tax is a source of both state and munic- ipal revenue. It is assessed against all incomes and at a progressive rate, incomes below approximately $225 a year being exempt. The municipal tax is in the nature of a surtax added to the state rate. For instance, if a city contributes $1,000,000 to the state from the income tax, and requires an equal sum for municipal purposes, the municipal income-tax rate is said to be 100 per cent.; i. e., 100 per cent, of the state rate. The rate ranges from 100 to 200 per cent, in the larger towns. In some very poor munic- ipalities, which contain but few rich men, the mu- nicipal rate may run as high as 500 per cent., or a total of from 12 to 15 per cent, on very large in- comes for both state and local purposes. The in- come tax rate in Berlin is 100 per cent., in Nurem- berg and Diisseldorf 140 per cent., and in Spandau 250 per cent. The state income-tax rate is moderate, beginning with 2^ per cent, on incomes of about $225 and increasing to 4 per cent, on incomes of $250,000. This would make the average rate for THE BUDGET OF THE GERMAN CITY 211 state and city purposes from 5 to 12 per cent., de- pending on the size of the income. Municipalities are permitted to levy up to 100 per cent, without notice by the state authorities, but if the rate exceeds this percentage, the central gov- ernment reserves the right to participate in the ad- ministration of the city. Berlin collected $8,227,148 from the income tax in 1907. The second source of taxation is the grundsteuer, or real-estate tax. Real estate is assessed on both its capital and its rental value. Prior to 1893, the rent received by the owner was the basis of assess- ment rather than the selling value of the property. If land was used for agricultural purposes, when it was ripe for building, it was assessed on the rental secured as agricultural land rather than on its value for building purposes. In 1893 the interior depart- ment issued an order advising cities to adopt the capital value instead of the rent received as a basis of taxation, the value being ascertained by capital- izing the rental value of the property. The order was complied with by a great number of local authori- ties, and the taxes on real property were largely in- creased in consequence. The tax on real estate in Berlin amounted to $5,523,000 in 1907, or about 4 per cent, of the sum realized by the city of New York from this source. In addition to the tax on capital value, there is a 212 EUROPEAN CITIES AT WORK transfer tax assessed at the rate of 1 per cent, of the selUng price of improved property, and of 2 per cent, of the seUing price of unimproved property. This tax is levied at the time of sale. A third source of taxation is the gewerlesteuer , or tax on trade and industry. It is assessed upon all persons engaged in trade or commerce according to the amount of capital invested and the net profits made the preceding year. All trades are taxable, but small concerns are usually exempt. Frankfort, for instance, exempts all industries where the net profits are less than $375 a year or where the capital em- ployed is under $750. This tax is also progressive. BerUn collected $2,449,119 from this source in 1907. Almost all cities collect taxes from restaurants, hotels, and places where intoxicating liquors are sold. The license tax, however, is nominal and is not de- signed as a sumptuary measure as in this country. The Hcense is fixed by the profits of the business. In Berlin the license tax on the sale of liquor is but $2.38 where the profits are but $357, from which the rate progresses slightly, a restaurant that earns $11,- 900 a year being taxed only $23.80. The total rev- enues from liquor licenses in 1907, in Berlin, a city of over two million inhabitants, was but $760,927, or about what would be collected in a town of 60,000 inhabitants in America from the same source. Department stores are taxed on a different scale than retail shops. There is a tax on pedlers and THE BUDGET OF THE GERMAN CITY 213 transient dealers. Dogs are generally taxed, a sub- stantial sum being realized from this source. In Frankfort $4 is paid for the first dog owned and $6 for the second. There are also many fees in the nature of special assessments. There are drain dues for connecting a house with the sewers; dues for the removal of gar- bage and refuse at a certain percentage of the rent of the house, as well as special charges for the erection or alteration of buildings. The unearned-increment tax described elsewhere yields an increasing percent- age of the municipal revenues. Hamburg is a free and sovereign state in many of its functions. It is a city of 936,000 people and its revenues for the year 1908 were as follows: Real-estate tax $4,417,008 Income tax 9,331,143 Stamp revenue 710,683 Registration fees 133,447 Tonnage dues 779,013 Inheritance tax 1,082,474 Tax on sales of property 1,015,870 Amusement tax 18,874 Dog tax 74,190 Contributions for fire brigade 218,830 Customs (share of state refunded by Imperial government) 1,619,629 Share in federal receipts for distilling tax and imperial revenue tax 700,391 Total $20,101,572 Earnings of business undertakings occupy a prom- inent place in the city budget. The receipts from public-utility corporations, from docks, markets, ab- 214 EUROPEAN CITIES AT WORK attoirs, forests, etc., are frequently many times the amomit collected from taxation. The 1908 budget of the city of Mannheim, with a population of 192,- 000, shows the sum of $3,683,647 as derived from its many undertakings; while the direct taxes on in- comes, real property, industrial capital, and business yielded but $1,553,440. The gross earnings of the more important industrial undertakings for the year 1908 were as follows: Street railways $627,488 Buildings 463,491 Agricultural land 18,207 Markets 27,650 Transportation of merchandise 128,392 Management of lands 32,403 Water-works 256,986 Gas-works 711,291 Electrical works 409,122 Abattoir 172,532 Fountains, etc 12,993 Cemetery 37,502 The net gain from the street railways amounted to $44,942, from the water-works $123,021, from the gas-plant $165,641, and from the electrical light and power $127,366. These undertakings are operated only incidentally for profit, the motive of operation being the maximum of service at a relatively low charge. Out of a total budget of $5,237,086, all but $1,553,440 consisted of earnings of business under- takings and special fees for services performed. The tax upon incomes yielded $466,345, or about one- third of the total taxes; $475,976 was collected from THE BUDGET OF THE GERMAN CITY 215 trade and business taxes, and $500,400 from the sev- eral taxes on real property. The business men who rule the German cities have assumed the bulk of the burdens themselves. They have taxed incomes, business, land, and property, rather than tenants, as in Great Britain, or the con- sumer through the octroi, as in the Latin countries. Ahnost all of the local taxes are collected from the well-to-do classes rather than from the poor. In the matter of local taxation, at least, the Amer- ican city is far in advance of the cities of Europe, not excepting those of Germany. This is true in spite of the general property tax and the faulty assess- ments made by many of our cities. We collect our municipal revenues more justly than do other coun- tries, because the bulk of them come from real es- tate and, by the nature of the case, from land. In recent years, too, great advance has been made in the art of assessing property for taxation, following the example of New York, in which city the assess- ment of real estate has been brought to a more nearly scientific basis than in any city in the world. Land is the natural source of local revenues, for land values are so obviously a social rather than an individual product that they should be taken for municipal purposes. They are social in character. And undoubtedly our cities will collect an increas- ing share of their local revenues from land values, as is evidenced by the many movements for the re- 216 EUROPEAN CITIES AT WORK duction of the taxes on improvements, as well as their exemption from taxation altogether. In re- spect to the collection, if not the disbm'sement, of revenues, the American city leads Europe, as is shown by the tendency in Gennany and England to increase the bm^dens of taxation on land values. That is the meaning of the change of basis of assess- ment from rental value to capital value in Germany; it is the meaning of the unearned-increment tax, or wertzuwachssteuer. It is this that has animated five hundred municipalities and local communities in England to demand from ParUament the right to rate land values and tax them for municipal pur- poses. The indebtedness of many European cities is much in excess of the indebtedness of cities of the same size in America. Thisisnot viewed with concern; it is rather a sign of intelhgence and progressive ad- ministration. For in Germany and England the bulk of the indebtedness is for street railways, gas, electricity undertakings, for docks, harbors, slaugh- ter-houses, and markets, which not only carry the interest charges but frequently yield a substantial income as well. The debt of Berlin amounts to $100,000,000, yet officials say that the sewage-dis- posal farms have so increased in value that they could be sold for sufficient to retire the whole munic- ipal debt. In addition nearly $65,000,000 of the total is for business undertakings which carry themselves. THE BUDGET OF THE GERMAN CITY 217 The average indebtedness of thirteen British cities with an average population in excess of 200,000 is over $100 per capita. In Germany the average is $85 per capita. Manchester has a per capita debt of $180 and Frankfort of $140. A considerable part of the Manchester debt was incurred in the building of the Manchester Ship Canal. The per capita debt of Munich is $125; of Diisseldorf, $130; and of Char- lottenburg, $120. The average indebtedness of the American city is much less. The per capita debt of Chicago is very low. It is but $43.92. That of Cleveland is $69.29; of Detroit, $30.31 ; of Washing- ton, $44.84; of Milwaukee, $32.47; of Philadelphia, $65.09; while that of Greater New York is $207.16. The debt of the latter city, however, includes sub- ways, docks, ferries, water supply, and other invest- ments of a valuable kind that support themselves in whole or in part out of earnings. These figures indi- cate the gross debt. The net debt is somewhat less.^ As indicating the extent of municipal indebtedness in Germany, as well as the large proportion incurred for productive undertakings, the following table of seven Prussian cities is instructive. The figures are for 1908, and the productive undertakings include street railways, gas, electric light, water, harbors, baths, etc. The "other purposes" are schools, streets, sewers, and all non-productive undertakings. • Financial statistica of cities. Bureau of the Census. The fig- urea are for 1909. 218 EUROPEAN CITIES AT WORK FOR PRODUCTIVE OTHER TOWN POPULATION TOTAL DEBT UNDERTAKINGS PURPOSES Berlin 2,001,032 $99,254,000 $64,767,000 $34,512,000 Elberfeld... 168,000 13,595,000 7,252,000 6,392,600 Halle 176,798 9,500,000 2,877,000 4,612,000 Solingen . . . 50,961 3,285,000 2,257,000 1,029,000 Magdeburg. 247,358 15,005,000 7,775,000 7,503,900 Remscheid. 69,700 3,930,000 2,790,000 1,147,000 DtiBseldorf . 284,439 28,585,000 22,260,000 6,327,000 A similar table of the indebtedness of seven Amer- ican cities shows the amount as well as the distri- bution of indebtedness between productive and un- productive agencies.^ POPULATION INDEBTEDNESS FOR PRODUC- FOR OTHER 1910 1909 TIVE PURPOSES PURPOSES Philadelphia. . 1,526,383 $99,355,026 $30,776,642 $68,578,384 Cleveland .... 538,374 37,304,908 5,613,684 31,691,224 Minneapolis. . 294,330 14,927,202 1,933,424 12,993,778 Indianapolis. . 228,690 4,790,401 22,000 4,768,401 Denver 207,112 5,814,419 329,200 5,485,219 Omaha 122,187 8,598,997 Grand Rapids 110,060 3,184,612 1,137,500 2,047,112 ' Financial Statistics of Cities, 1909. Bureau of the Census. CHAPTER XIII HOW THE GERMAN CITY IS GOVERNED The German city is governed by experts who de- vote their lives to this calling. Men prepare them- selves for city administration as they do for law, medicine, or any other profession. They take special courses in the universities or technical schools in law, finance, engineering, town planning, education, or sanitation. On graduation they compete for a municipal post along with other candidates. Some- times they enter the permanent service from the city council, or the state civil administration, or the pro- fession of law. They rise from one position to an- other or pass from city to city, much as a clergyman or professor in this country moves from place to place. In time they hope to become burgomaster, and if they make a success in their city, their rep- utation is known all over Germany. This is true of the burgomaster, of members of the magistrat, or administrative council, and of the important per- manent officials generally. In this respect the city is but a cross-section of the nation at large, for public offices are almost always held by men who have prepared themselves for the 219 220 EUROPEAN CITIES AT WORK particular post to which they aspire. This is as true of the civil service as it is of the army and navy. The intense competition for place has something to do with thiS; as has the universal education of the empire. But aside from these influences, the tra- ditions of Germany treat public service as a profes- sion open only to those who are fitted for the par- ticular work to be done. The framework of municipal administration in Germany is essentially different from that of Amer- ica or Great Britain. In America authority has been gradually concentrated in the mayor, as an easy means of escape from the evils of the council system. Through this de\ace, as well as through the commission form of government, we have found a means by which we can hold some one responsible, and through responsibility substantial improvement has been secured. This and simplicity are the great gains from the federal plan and the commission form of government adopted by our cities so generally in recent years. In Great Britain, on the other hand, all the powers of the city are lodged in the council, which is a large body acting through committees. The mayor is an unsalaried figure-head, with but little power and that of a titular character. The British and American cities are antipodal in these respects. The German city is governed by a composite sys- tem in which the burgomaster is the central figure, HOW THE GERMAN CITY IS GOVERNED 221 although he is not the repository of as great legal power as are mayors in America. Associated with him are a large nmnber of expert advisers, who form the magistrat. Approximately one-half of these are paid, and make a profession of their calling. The city comicil, or gemeinderat, is a large body, elected in Prussia under a restricted property qualification, and is generally made up of men of only less distinc- tion than the magistrat itself. The German city is the most generously endowed political agency in the world so far as talent and training are concerned. Municipal administration is the work of the expert rather than of the politician. In Prussia the burgomaster is chosen for a term of twelve years; in other states for nine or six years. In Leipsic, Dresden, Hanover, and some other places, the burgomaster is chosen for life in the first instance. When a vacancy occurs in any city, the council examines the qualifications of candidates who are suggested or who offer themselves for the position. The available persons are finally reduced to two or three, from whom the choice is finally made. The same procedure is followed in the selection of mem- bers for the magistrat. Elections are made without regard to residence, and candidates for important positions present themselves from all over Germany. At the end of the term the council may refuse to re-elect an incumbent, but inasmuch as burgomasters are entitled to a pension if not re-elected, the choice 222 EUROPEAN CITIES AT WORK in the first instance is made with great care and is expected to be permanent. Burgomasters are elected by the council rather than by the people directly. So are all other higher administrative officials. There are many burgomasters who have served from ten to twenty years in their respective cities. The burgomaster of Halle has been chief magistrate of that city since 1882. Dr. Martin Kirschner, until recently the chief burgomaster of Berlin, was first a judge, but in 1873 he entered municipal life as a town councillor in Breslau. Later he became the city's legal adviser, and in 1893 was called from Bres- lau to become one of the burgomasters of Berlin. Six years later he was elected chief burgomaster, which office he held until shortly before his death. Dr. George I. Bender, chief burgomaster of Breslau, entered municipal service through the law, much as did Doctor Kirschner. He became a magistrate in the city of Thorn, and in 1888 was elected burgo- master of that city. In 1891 he was chosen as chief burgomaster of Breslau and was elected a member of the Prussian House of Lords. Doctor Adickes, the present burgomaster of Frank- fort-on-the-Main, began his municipal career at the end of the Franco-Prussian War as burgomaster of Dortmund, where he served for four years. In 1877 he was chosen burgomaster of Altona, and in 1883 became its chief burgomaster. In 1891 the city of Frankfort-on-the-Main called him to be burgomaster, HOW THE GERMAN CITY IS GOVERNED 223 which oflSce he has held ever since. In addition to his municipal office, he is a member of the Prussian House of Lords. He has received many orders, in- cluding that of the Imperial Red Eagle. Frankfort is a very wealthy city ; it is rich in tradi- tions, in old monuments, and Doctor Adickes awa- kened the ambitions of the citizens and proceeded to build a new city of splendid proportions about the old mediaeval town, which for centuries was one of the free cities of the Hanseatic League. He used the city as a laboratory for experiments in taxation, in town-planning, in industrial, housing, and harbor developments. New municipal ideas have issued from Frankfort much as new discoveries in science issue from the university laboratory. When Doctor Adickes became burgomaster, in 1891, the population of the city was but 180,000. To-day it is 414,000. Much of the growth is due to the big-visioned ad- ministration of its burgomaster. Diisseldorf is another example of the influence of the expert professional mayor. In 1898, when Diis- seldorf was a town of less than 200,000 population, Dr. Wilhelm Marx was called to be its burgomas- ter. The city was not unlike a score of American cities fifteen years ago. It might have been as un- interesting and disorderly as any of our own. But Doctor Marx appreciated that his city could only successfully compete with its neighbors by hav- ing greater advantages than they. So he proceeded 224 EUROPEAN CITIES AT WORK to build a city that would attract business and people. Under his administration the municipal debt was in- creased to $100 per capita for the acquisition of the street railways, electric-lighting and other plants. The city engaged in the purchase of land; it became a land speculator on a large scale; it invested in the shares of Diisseldorf industries and entered on the greatest variety of industrial activities. A great harbor was constructed, suburbs were laid out, edu- cation was perfected, and the city made alluring to business and residents. In a dozen years Diissel- dorf acquired the name of the garden-city of Ger- many. It now has 356,000 people. The German steel trust has made it its home, while many other industries came to it because of its advantages. Diisseldorf is a centre of art, music, and education; it is one of the show cities of Germany to which travellers come from all over Europe and America. What Diisseldorf has done, Detroit, Cleveland, In- dianapolis, Denver, San Francisco, Los Angeles, al- most any one of fifty American cities, could do were they but inspired by a vision of their possibilities and were our political institutions adjusted to the employment of permanent experts in city adminis- tration. Having achieved these things. Doctor Marx re- tired from the mayoralty at the end of twelve years of service, and Doctor Oehler, of the near-by city of Crefeld, was chosen by the council to continue the HOW THE GERMAN CITY IS GOVERNED 225 programme of city-building on which the city had entered. There is keen rivalry among German cities. The struggle is for bank clearings, factories, and business growth, just as it is with us; only these ends are attained by different means. Cities vie with each other in the promotion of the arts, beauty, and com- fort. They develop opportunities for factories, per- fect their educational systems, and improve their facilities for water and rail transportation. The professional burgomaster has much to do with this. He wants to make a showing, to achieve a reputa- tion which will lead to his being called to some other city. The German burgomaster corresponds roughly to the American mayor, although his legal powers are not nearly as ample as those of the American city operating under the federal plan. In practice his in- fluence is likely to be as great as his abilities. If he is a man of force and originality he becomes the di- recting spirit in the administration. He presides over the magistrat, promotes city policies, oversees other departments, and is the official representative of the municipality on all state occasions. He may sus- pend and punish officials who have been remiss in their duties, but his power to discharge is subject to review by the administrative courts, to which an appeal may be taken by the discharged official. He is also directly responsible for the police administra- 226 EUROPEAN CITIES AT WORK tion, over which the state maintains a watchful super- vision. In the larger Prussian cities, however, the state may appoint a police commissioner responsible to it directly. The burgomaster has no veto over ordinances and may be overruled by the magistrat. He neither pre- pares the budget nor introduces it. That is done by his associates. Nor has he the large appointing power lodged with mayors in this country. In a legal sense he is but the first among equals. Some cities have two burgomasters, in which case the senior one is called the chief burgomaster. In some of the larger cities he is known as the ober- burgomaster, but this title is only permissible when authorized by law. In a sense the King is the fountain-head of mu- nicipal administration, for while the council selects the burgomaster, its choice must be ratified by the King acting through the interior department. Such approval is usually given as a matter of course. Some years ago, however, when the council of Ber- lin selected a burgomaster who was persona non grata to the King, the action of the council was disapproved. The council reaffirmed its selection, but the King refused to rescind his veto. For some time the city was without a burgomaster, but finally the council receded from its position and selected a candidate who received the royal approval. Sim- ilar conflicts have occurred in some of the smaller HOW THE GERMAN CITY IS GOVERNED 227 cities where the radicals have selected candidates representative of their opinions. It is not improb- able that the royal veto will be called into play more frequently in the future, especially in those states where the Prussian three-class system of voting does not prevail, while if manhood suffrage is introduced into Prussia the same conflict is likely to arise in that state as well. In Bavaria, where the Prussian system of voting does not prevail, members of the SociaHst party are already found in the magistrat, and many of the cities are likely to fall into the hands of this party. This will probably not involve any change in the character or integrity of the men or the efficiency of administration, for many of the leading municipal experts in Germany are Socialists, actively connected with the party, but identified with the municipal movement. The salaries paid the burgomasters are higher than the salaries of mayors in this country, even aside from the greater purchasing power of money. Ber- lin and Frankfort-on-the-Main pay their oberburgo- masters $9,000 a year, while Leipsic, Cologne, and Magdeburg pay $6,250 a year. Dresden and Mu- nich pay $5,000, and Hanover $4,250. In the smaller municipalities salaries are correspondingly lower. In addition the burgomaster receives a number of sub- stantial perquisites which may amount to several thousand dollars a year more. He is entitled to a pension of from one-half to three-fourths of his sal- 228 EUROPEAN CITIES AT WORK aiy on retirement from office, depending upon the length of his service. To be burgomaster of a German city is one of the most alluring of professions. Not only is the office highly paid, but the city is the largest single corpora- tion in the community. It conducts a multitude of undertakings and has a large budget to control. In salary, in social position, in power and opportunity, as well as in permanency of tenure, Germany has provided a system that attracts men of talent and ability to city administration. Associated with the burgomaster are a number of assistants, who form the magistrat, or stadtrat. Their duties are primarily administrative, although they both initiate and influence legislation. They form the executive branch of city government and constitute an upper chamber, which meets apart from the coimcil but is fused with the elective body in actual practice. For there is no superstition in Germany about the necessity of separating powers and responsibilities between legislative and execu- tive branches. There are no checks and balances in city administration. These are poHtical fictions which have never had any place outside of America. The aim is rather to merge administration and legis- lation as closely as possible in the interests of effi- ciency. The magistrat is a body of experts, who, like the mayor, make a profession of city administration. HOW THE GERMAN CITY IS GOVERNED 229 The members are chosen from men who have achieved distinction in the comicil, in the state civil service, or who enter it after special training for some depart- ment. Each member is an expert in his line of ser- vice, and is chosen for some definite position. This, at least, is true for the salaried members. There are experts in law, in finance, accounting, education, en- gineering, charity, housing, and town planning. With the burgomaster, who is an expert in chief, they form an executive council, each member of which is trained in his department and thoroughly familiar with what is being done in other cities of the country. A great business corporation is not more efficiently organized than is the German city, and few business corporations, whether in this country or abroad, are as wisely and economically managed. There is no waste, no need of efficiency surveys by private agen- cies. The city itself is equipped with men whose life is dedicated to their work, and whose hopes, am- bitions, and social standing are satisfied with the opportunities which city administration offers. The magistrat contains from one-fourth to one- third as many members as does the council, by which it is chosen. Approximately one-half of the members are salaried, the other half are not. The number of paid members is determined by the coun- cil itself, and usually depends upon the size of the city and the activities in which it is engaged. Ber- lin, with a population of 2,099,000, has 17 paid and 230 EUROPEAN CITIES AT WORK as many more unpaid members of this body. Mag- deburg, with a population of 240,633, has 12 paid and 15 unpaid officials, while Breslau, with a popu- lation of 510,939, has 14 paid and 15 unpaid officials. There are 14 paid and 18 unpaid members of the magistrat in Dresden, 12 paid and 15 unpaid in Leipsic, 16 paid and 20 unpaid in Munich, and 9 paid and 8 unpaid in Frankfort-on-the-Main. Like the burgomaster, the names of the paid members of the magistrat must be submitted to the central au- thorities for approval. The number of unpaid members is fixed by law and depends upon the size of the city. Municipali- ties with from 10,000 to 30,000 people have 6 unpaid members; those with from 60,000 to 100,000 have 10 unpaid magistrates, with 2 additional ones for every 50,000 people. The unsalaried members are usually chosen from the council, much as are the aldermen in Great Britain, although they may be chosen from outside its membership. The unpaid members are almost all men of comparative leisure, and are held in high esteem in the community. Their places are practically permanent. The paid and un- paid members sit together in the same body much as do the aldermen and councillors in Great Britain. It is amazing how generously the German city makes provision for administrative officials. While New York has a board of estimate and apportion- ment of but eight members, and while most of our HOW THE GERMAN CITY IS GOVERNED 231 large cities have from four to six salaried heads of departments, the German city of equal size has from two to three times as many salaried members in its magistrat. In addition there are as many more non-salaried ones. Many of our cities are under- manned; they are unable to handle the many big problems which confront them, not only because of the lack of experience of officials, but because of the inadequate number provided for. The salaried members are usually chosen for the same term as the burgomaster, but the unsalaried ones are selected for six years, the same as members of the council. The former are chosen by competi- tion, and re-election generally follows as a matter of course. They give their entire time to city adminis- tration and receive salaries which are relatively high. In Berlin, for instance, salaries range from $2,500 to $3,000 a year, while in the other large cities they run from $1,200 to $3,000. There are other perquisites attached to the office, as well as a pension on retire- ment, and a high social position in the community. The unpaid members are chosen because of known abihty demonstrated in the city council, in pubhc service, or in private pursuits. Each of the salaried members is assigned a par- ticular department which he supervises. The de- partments correspond roughly with our own. One member, the Kammerer, occupies the post of city chamberlain or auditor. Another, the Syndikus, is 232 EUROPEAN CITIES AT WORK at the head of the legal department. A third, the Schulrat, has control of education. A fourth, the Baurat, has charge of the public works. Other spe- cialists are assigned to charity administration, hos- pitals, and institutions for the relief of the poor, while still others have charge of the street railways, gas, electric lighting, and other profit-making utilities. AVhen a vacancy occurs in a given post the council frequently advertises the fact, and invites competi- tion to fill it. It is not unconmion to see advertise- ments in a German newspaper like the following taken from the Gemeinde Zeitung of July 28, 1906. "NOTICE "The post of Syndikus in the Magistrat of this city has become vacant. The stipend is 6,000 marks per year with an increase of 600 marks every three years until the maximum of 9,000 marks is reached. The appointment is for life; and provision is made for a pension on retirement after long service, as well as for the granting of an annuity to the widow or orphans of a deceased incumbent of the post. The Syndikus is expected to preside in the Industrial and Mercantile Court (Gewerbe und Kaufmannsgericht), and is intrusted with a general supervision over the legal affairs of the city. Candidates who have passed their second legal examination and who have had suc- cessful administrative experience are requested to submit applications accompanied by testimonials and other suitable documents to the city clerk before August 20. " Frankfort-on-the-Main, ''July 17, 1906. The Magistrat." HOW THE GERMAN CITY IS GOVERNED 233 Candidates send in their names and references, from which the council selects the candidate best qualified for the post, which selection is then reported to the central authorities for approval. Unsalaried members of the magistrat frequently aspire to be- come salaried oflficials, while persons in private em- ployment or those occupying a post in some other city also respond to the inquiry. Every consideration is ignored save the qualifications of the candidate for the place. Neither politics, friendship, nor personal consideration have weight in the selection, although Socialists would probably not be accepted in Prussia. They are, however, frequently found on the magis- trat of the Bavarian cities, where the Prussian limi- tations on the suffrage do not prevail. The unpaid members of the magistrat are advisers in general on municipal problems. They are not chosen for special posts, as are the paid members, or because of any especial training in particular branches of administration. There are no qualifications pre- scribed by law for their selection save that they must be residents of the city. The council, however, usu- ally chooses them from out its own members or from successful business and professional men with recog- nized aptitude for the work. The standard of quali- fication is very high, and service upon the magistrat involves heavy inroads upon a man's time. In spite of this fact, cities fill these positions with men of high character and attainments. For official life has 234 EUROPEAN CITIES AT WORK a lure in Gennany of which we have no conception. Caste runs throughout the nation and affects the ambitions of all. At the top is the junker, or large landed estate owner. Below him is the mihtary caste, whose ojficers are almost exclusively recruited from the landed classes. To the professional men and merchants municipal office is almost the only avenue of official distinction. Wealth as such car- ries little standing, much less than in America or in England. Everywhere the official class is the ruling class, and every title of distinction, no matter how insignificant, is jealously guarded by its possessor, whose rank and position are scrupulously observed in official and social relations. One explanation of the size and importance of the magistrat is the fact that the city is the agent of the state in the administration of many laws relat- ing to education, sanitation, insurance, and the ad- ministration of industrial functions. The munici- paUty has jurisdiction over the property of the state church. It appoints the clergymen and church officials. In this it differs radically from the Amer- ican city, which rarely performs any state func- tions. Members of the magistrat initiate much of the legislation which comes before the council. They do this sometimes at the request of members of the council, but more frequently on their own initiative. Ordinances adopted by the council must have the HOW THE GERMAN CITY IS GOVERNED 235 approval of the magistral, much as legislation in Congress must be passed by both houses. The coun- cil is the agency of the pubUc intrusted with the promotion of policies, while the magistral is the ad- ministrative department, serving both the state and the municipality, and promoting in every possible way the advancement of the community. Rarely is there any conflict between the council and the magis- tral, for spoils, opportunities for political preferment, and the privileged interests have little influence in city politics, while anything which savors of dishon- esty is practically unknown. The magistral is free from supervision by the council in executive matters, except where the ex- penditure of money is involved. It has control of the public utility enterprises of the city. It builds and cleans the streets, controls the schools, parks, and housing. It is the educational agency of the city, for education is merged with city administration in Germany as it is in England, rather than being a detached, separate activity. In all of these depart- ments the magistral acts with wide freedom, for not only is the city free to do as it wiUs, but the magis- tral is rarely interfered with, either by the state au- thorities or the town council. No moneys can be paid out of the treasury with- out its approval. It controls the coUection and dis- bursement of revenues. It has no power to levy any taxes or to make general appropriations, but aside 236 EUROPEAN CITIES AT WORK from this it administers the budget of the city. Members of the magistrat rather than the burgo- master make appointments for office, but these ap- pointments must be confirmed by the council. The magistrat meets as a separate body, and is presided over by the burgomaster. Its meetings are not held in public. No announcement is made of a vote or division on a question, so that whatever action the magistrat takes has the appearance of unanimity. In practice the magistrat combines many of the powers which we intrust to the council, mayor, and heads of the various departments. Long tenure of office, recognized efficiency, and the absence of polit- ical controversies and spoils make jurisdictional quar- rels with the council infrequent, in spite of the fact that the magistrat is selected by the latter body. Made up of men with the greatest variety of training, and aided by the interior department of the state, with its accumulated experience and statistical in- formation, it forms probably the most efficient ad- ministrative agency in the world. It need hardly be said that there is no spoils sys- tem in Germany. Nor is there any rotation in office, either among the elective or the appointed employ- ees. Even among unskilled workmen tenure is dur- ing good behavior. This is part of the traditions of Germany, in which country men in all walks of fife choose their callings early and thus establish their status. And municipal service, from the most sub- HOW THE GERMAN CITY IS GOVERNED 237 ordinate position to the highest, is a recognized ca- reer the same as any of the professions. While the burgomaster and the magistrat form the central feature of administration, the city council or stadtverordnete or gemeinderat is the final source of power. It is a representative body elected by wards or districts the same as in the United States and Great Britain. Councilmen are elected for six years, and one-third of the membership retires every two years. None of the councilmen are elected at large. In Berlin, under the Prussian system of three-class voting, there are 16 districts assigned to voters of the first class, 16 to voters of the second, and 48 to voters of the third class. The first and second class districts elect a councillor every two years, while each of the 48 districts in the third class elects a councillor eveiy six years. In Bavaria, councilmen are elected for nine years, one-third of the body retiring every three years, while in Saxony the three-year term prevails. Many electoral provisions militate against the free expression of the popular will. There are no nomi- nations of candidates by primaries, caucuses, or con- ventions. Any qualified person can be voted for, but in practice candidates are selected beforehand, and are well known as such. Prior to the election there are canvassing and meetings in the support of candidates, but so far as the action of the voter is concerned he is left entirely unaided by parties or 238 EUROPEAN CITIES AT WORK by ballots in the making of his choice, for there are no printed ballots. Candidates must receive a clear majority of the votes cast, and if this is not secured at the first election, a second is held. Only the two candidates who have received the largest number of votes are eligible at the second election. The councU is a relatively large body. In Berlin it numbers 144 members; in Karlsruhe and Mann- heim, 96; in Dresden, 78; in Leipsic, 72; and in Munich, 60. The size of the council is fixed by law according to population. In Prussia there is a mini- mum of twelve councilmen in the smaller municipali- ties. The council is a much larger body than it is in America, but is about the same size as in England. All over Europe the large council prevails, and every- where the organization is substantially the same. There is no parallel to the commission form of government which is rapidly being adopted in the American West or to the federal plan, such as has been generally adopted by our larger Eastern cities. A high order of ability is found in the council, for the talent of the commimity seems to be at the ser- vice of the city, and business and professional men deem it a high honor to be elected to that body. In university cities, members of the faculty are fre- quently chosen. Members of the council receive no salary, and there is no chance for pecuniary emolu- ment of any kind. Service is obligatory, for a man HOW THE GERMAN CITY IS GOVERNED 239 can be fined if he refuses to accept an election — a contingency, however, that rarely, if ever, happens. The work of a councillor is very exacting. He has to devote a considerable part of his time to city busi- ness. The council usually meets once a week excq)t during the summer months. Discussion is spirited, and where Socialists have found a place in the coun- cil, it covers the whole range of municipal policy. The burgomaster and members of the magistrat have a seat in the council chamber with the right to speak on all questions but not to vote. They may be in- terrogated by members on public questions. Much of the work of the council is prepared for it by mem- bers of the magistrat. The procedure differs from that of the British council, where each committee controls its own department, selects its managers and subordinates, and combines legislative and ad- ministrative work in the same body. In this respect the German council is more like the American one. With us, legislative as well as administrative work has been assimied by the mayor and the directors of the various departments, who prepare the budget, formulate policies, and draft most of the ordinances for consideration by the council. This transfer of legislative power to the executive department is fre- quently at variance with the theory of our charters, which assume the separation of legislative and ad- ministrative functions under the practice which pre- vails in the state and Federal governments. 240 EUROPEAN CITIES AT WORK While the magistrat is the actual directing agency of the German city, the council is by no means an unimportant factor in administration. It has not lost its dignity or authority, as has the council in America. It selects the burgomaster and the mem- bers of the magistrat. It advises with the magistrat and sometimes comes in conflict with it. Every legislative measure which affects the municipality must be passed by it. In case of a deadlock with the magistrat, differences are adjusted by a joint conference committee, and if this fails the appropria- tion or question in dispute is referred to the central administrative authorities for decision. The laws of the several states — Prussia, Bavaria, Saxony, Wiirtemburg, and some of the cities, like Hamburg, Bremen, and Frankfort — differ as to the size of the council and the magistrat, as to the length of terms and qualifications of the suffrage, but in the main the cities are administered under the same gen- eral plan. And this plan has remained practically unchanged for more than a centuiy. The laws gov- erning municipal administration are based on the reforms of Stein and Hardenberg enacted in 1808, which reforms gave the cities large freedom of action and established the machinery upon which subse- quent legislation has been based. Just as the main features of the British system are traceable to the Municipal Corporations Act of 1835, so in Germany the small town has grown into the metropolis under I HOW THE GERMAN CITY IS GOVERNED 241 charters provided before the industrial city made its appearance. While reformers in America have de- voted themselves to changing the form of the char- ter, to finding new political machinery for doing things, the German and British cities have accepted administrative forms a century old, and concerned themselves with the functions and possibilities of the city, rather than with finding new ways to govern them. In both countries there have been many changes in the substantive law; the powers of the cities have been enlarged and the laws have been codified, but the cities have moved on from one activity to another with little complaint as to the agencies employed. In this they differ radically from the cities of this country, where reform has been concerned more largely with method than achievement. It is not probable that we shall adopt either the German or the British system of administration, although we shall undoubtedly develop means for securing permanence and the trained expert in office. This is already being done indirectly through the establishment of efficiency and research bureaus in connection with many cities. The commission form of government makes for permanence in personnel, while the suggestion has been made in some cities for the employment of a city manager, to whom the actual administration is to be transferred under the direction of the council. It is only a matter of time 242 EUROPEAN CITIES AT WORK before our cities will find means for identifying train- ing and experience with administration. In this, as in many other problems, om* cities are working out a solution in their own way and without being conscious of the fact that it is being done. I CHAPTER XIV THE BUSINESS MEN WHO RULE THE GERMAN CITY, AND THEIR IDEALS The German city is democratic, even socialistic^ in its services, but not in its political machinery. The American city, on the other hand, is democratic in its machinery and professions, but not in its ser- vices. Yet the cities of Germany and America are in reality ruled by the same class, by the influential business men. In Prussia the control is direct and official. It is legalized by a system of voting. In America, on the other hand, control is secured indi- rectly through the ascendency of private interests in the state legislature, city council, and party machin- ery, as well as through the agencies of public opinion, which for the most part are owned or controlled by the privileged classes which stand behind the boss, the party, and the machine. The business men who rule the German city are not the small shopkeepers as in Great Britain ; they are the bankers, merchants, real-estate speculators, and professional men. They form the ruling class. They elect the council, which in turn elects the burgomaster and members of the magistrat. In Prussia this control by the well-to-do classes is 243 244 EUROPEAN CITIES AT WORK secured by the laws which control the suffrage of that state. ^Miile manhood suffrage prevails in elections to the Reichstag, it does not prevail in the Prussian Diet or in the cities of the state. Through the methods of voting the large taxpayers select the ma- jority of the council. The power of the voter at the ballot-box is determined by the amount of his income tax. Taxpayers are divided into three classes, each one of which elects one-third of the council. The classification for voting is as follows: beginning with the highest single tax-payer, men are checked off in order until one-third of the total taxes is ascertained. The taxpayers in this group constitute the first class, and elect one-third of the council. Then those whose aggregate taxes comprise another thkd of the total are checked off, and they constitute the second group. The great mass of the electors, whose aggregate in- come taxes comprise another third of the total, make up the third class. This, in substance, is the law governing the suffrage in Prussia, although in 1900 the method of procedure was changed somewhat, and made rather more complicated. Under this arrangement an insignificant number of persons elect one-third of the city council, while a small minority elects two-thirds of it. The first class rarely consists of more than 3 per cent, of the total number of voters, while the first and second classes combined range from 10 to 20 per cent, of the total. In Essen, where the Frederick Krupp Steel Works 1 GERMAN BUSINESS MEN 245 are located, there were in 1900 only 3 electors in the first class, with 401 in the second. These 3 men elected one-third of the council, while 404 out of nearly 20,000 electors chose two-thirds of the mem- bers. In HaUe, there were 178 voters in the first class, and in Aachen, 130. In Berlin, in 1903 there were 1,857 electors in the first class, and 29,711 in the second; 31,568 electors out of a total of 349,105 chose two-thirds of the council. In Breslau, with a voting population of 26,211, there were 669 in the first class and 4,358 in the second. In Cologne there were 511 in the first class and 5,659 in the second. The total number of voters in the third class in Breslau was 21,184, and in Cologne, 41,321. From these figures it appears that a very much smaller percentage of the population votes than in America, for in our cities of the size of Cologne or Breslau, the total number of votes cast would run from 70,000 to 100,000. The example of Berlin indicates the limitations on the suffrage, and the way the great mass of the people are denied any hope of control. The registered elec- tors for the year 1909 numbered 351,000. For every elector in the first class there were 21 electors in the second, and 214 in the third. In the city council of Berlin there are 144 seats, one-third of which, or 48, are apportioned to each class. As a result, 34 electors on an average select a councilman in the first class, and 721 electors select a councilman in the third class. 246 EUROPEAN CITIES AT WORK This is the Prussian three-class system, against which the Socialists and radicals are protesting. It applies to state as well as to municipal elections. When the imperial constitution was adopted in 1871, Prussia, which is the dominant power in the empire, based its suffrage on the wealth and income of the taxpayer. It is this system of voting that Hes at the heart of reaction in Germany. It is this that gives the large land-owners of east Prussia control of the state and the wealthy business men control of the city. It is this that prevents the Socialists from se- curing control of the towns, in which they are par- ticularly strong, for nearly every large city sends So- cialist members to the Reichstag, for which body the suffrage requirements are on the democratic basis of one man, one vote. In imperial elections the suf- frage is universal, as it is in America. In addition to these inequaHties in the suffrage other limitations are imposed on the selection of members of the council, which tend to make it still further conservative. In Prussia the suffrage is con- fined to male citizens of twenty-four years of age who have paid municipal taxes, who own a dwelling-house or pursue a trade or profession which yields an in- come. Even some corporations are allowed to vote. In addition the ballot is open rather than secret, while a considerable period of residence is required in the city. The laboring classes are still further excluded by the requirement that one-half of the GERMAN BUSINESS MEN 247 members of the council must be owners of real es- tate — a limitation which tends to make the land- owners and real-estate speculators unduly prominent in city affairs. The three-class system of voting does not exist in Bavaria or in a number of smaller states. Propor- tional representation was introduced into Bavaria in 1906. Under it members of the city council are chosen by political parties in proportion to their vot- ing strength. The suffrage is still not universal, but is much more nearly so than in Prussia. In Munich, the capital of Bavaria, one must live in the city for two years, have an income of $300, and have paid $37.50, for admission to the rights of suffrage. In Munich there are now fifteen Socialists in the city council, while four members of the magistrat belong to this party. In Hamburg, which is a free city, and in Frankfort the suffrage is on a somewhat different basis, as it is in many of the smaller states of the empire. Prussia, however, contains most of the large cities. There is relatively little politics as we understand it in city elections. The system of voting and the selection of members of the council by wards pre- clude it. Nor is there much controversy over the policies to be pursued or the programme to be fol- lowed. The permanent magistrat and its willing- ness to engage in any kind of activity for the wel- fare of the community preclude such controvereies. 248 EUROPEAN CITIES AT WORK The Socialists, it is true, have a definite municipal programme and would carry municipal socialism much further than any of the cities have done. And in order to promote their programme they conduct aggressive municipal campaigns. In Bavaria they will probably control the councils of many cities and attempt to carry their programme into execu- tion. Despite the political power of the business men, they do not legislate in the interest of their class, as they do in America. That is one of the anomahes of Germany, for I know of no other country in the world in which this is true. Political power is almost always used to promote the economic interests of the class which rules. Men seem unable to detach their public from their private interests when elevated to places of trust. They still vote as railway and fran- chise owners, as manufacturers and land speculators. The German junker, who controls the politics of Prus- sia, and through Prussia the politics of the empire, almost always votes as a junker. He represents his class. And the tariff laws of Germany, as well as measures affecting the internal administration, re- flect the economic interests of the landed aristocracy. The same is true of the landed class of Great Britain. It is true of the business men in the American Con- gress, in the legislatures of our States, and in the administration of our cities. But the business men who rule the German cities seem to have risen above GERMAN BUSINESS MEN 249 the interests of their class. They have built cities for people, for all the people. They have adminis- tered them for business, but for all business rather than for that of a limited class. They have con- trolled the factory and the mill-owner and compelled them to locate in certain limited districts. They have taken the street railways, gas, electric-lighting, and water companies away from other business men. They have erected docks and harbors to encour- age competition rather than monopoly. Pawn-shops, savings and mortgage banks, have been municipal- ized in the interests of the working-classes, while mu- nicipal houses have been erected in competition with private landlords to improve the housing condi- tions of the city. Business men approve of munici- pal land speculation schemes as a means of keeping down the price of private speculators. But, more remarkable still, they have shifted the burdens of taxation from the poor onto their own shoulders. They have taxed their incomes heavily, have taxed business and luxuries, and imposed the unearned in- crement tax on the profits of land-owners. From one-third to one-half of the revenue of the German city comes from income taxes, while the bulk of it is derived from wealth in some form or other. More- over, income taxes are progressive, and bear most heavily on those best able to pay. The complaint is frequently heard that real-estate interests and house-owners' organizations control city 250 EUROPEAN CITIES AT WORK administrations; that many projects for the wel- fare of the poorer class are defeated because of the opposition of the property-owning classes which control the suffrage. The Prussian law provides that one-half of the council must be owners of real property, while the suffrage itself gives the large tax- payers a predominant influence in elections. Real- estate interests have undoubtedly defeated trans- portation proposals designed to open up the suburbs; they have prevented the laying out of new territory and the natural expansion of the city; they have prevented the increase of taxes on real estate. The imperial unearned increment tax of 1911 was seri- ously weakened by the amendments which the real- estate interests secured during the consideration of the measure in the Reichstag. Some housing ex- perts explain the universal prevalence of the tene- ment and apartment house, in which the great mass of the people dwell, as a result of real-estate interests and house-owners' associations, which have pre- vented city-widening proposals in order to main- tain city rents and urban land values. It is claimed that the extension of suburban transit in Berlin has been checked by these same interests, while the com- plaint is also heard that the suburban planning proj- ects are delayed in execution or confined to sections available only for the well-to-do classes by the same unconscious class instinct. Undoubtedly these class interests do influence city administrations, but this GERMAN BUSINESS MEN 251 is the most serious charge I ever heard against the administration of the German city. Aside from this charge the German city is honestly administered. Scandals are of such rare occurrence as to be almost unknown, as is bribeiy or corruption. The councils attract men of integrity and ability. The best citizens are willing to accept election, no matter what the claims of their private affairs may be. Public place carries with it social prestige. The King has encouraged public service in the mili- tary and civil departments, and the rank which a man and his family take is in large part determined by official precedence. In addition, municipal ad- ministration is alluring, even in the council. It offers opportunities for men of talent. One's associates are agreeable and intelligent, while many distinctions and social opportunities are opened through it. CHAPTER XV THE EXPLANATION OF THE GERMAN CITY Why is the German city so eflScient, honest, and business-like in its administration? What Hes back of the pride of the business men? Why do they serve so willingly on the council? Why do they accept such burdensome income, land, and business taxes, and submit to the control of their business and their freedom with so little organized protest? I have asked these questions of many business men. I have tried to understand the German city. It is not long experience in city administration, for the industrial city is of even more recent appearance in Germany than in America or England. Its life covers but a generation. There were no great cities prior to 1870, long after the British city had risen to importance, long after the American city had begun to be a problem. Nor is it traceable to the ascendency of the busi- ness men at the polls or the limitations on the suf- frage, for the attitude of the business men is the atti- tude of all classes. The Socialist party, which would control many of the cities under universal suffrage, is as free, probably more free, from interested mo- 252 EXPLANATION OF THE GERMAN CITY 253 tives than the other classes. It sends many eminent men to the Reichstag, and is essentially a party of principles. And it has a well-defined and very ad- vanced municipal programme. Universal suffrage, on which they insist, would probably not change the character of municipal administration or the quality of the men in the permanent service. It would un- doubtedly affect the policies of cities, and still fur- ther widen their activities. The explanation of the German city lies deeper than these things. It is found, I think, in the psy- chology of the people, and that psychology, in turn, is traceable to home rule, to the freedom of the city to do as it wills in almost all matters which affect its life. Of all the causes I think this is the most im- portant, for each city has liberty of action to work out its own destiny. Without this freedom the city might have been honest and efficient. It never could have become the model of the world. For the German city is free, free to own almost anything, free to control the individual and his prop- erty, free to borrow, free to experiment, free to develop as it wills. Its bonds to the state rest so lightly that it is almost unconscious of its chains. The citizen is a subject of the city, just as he is a subject of the state and the empire. And his de- votion to his city is very much like his devotion to the fatherland. Under the laws of the state the German city can 254 EUROPEAN CITIES AT WORK do anything it is not expressly forbidden to do, or that the central administrative authorities do not for- bid. Generally speaking, it can do anything an in- dividual can do. Under the municipal act of 1853 local authorities have authority to perform any func- tions that are necessary or wise for the welfare of the municipality, provided only that these activities do not come in conflict with the laws of the state. Dr. Albert Shaw says: "There are, in the German conception of city government, no limits whatever to municipal functions. It is the business of the mu- nicipality to promote in every feasible way its own welfare and the welfare of its citizens." ^ The powers of the city are not specifically enu- merated, as they are with us. The city is assumed to have all the power necessary for its local life. This, roughly, is its status under the laws of Prussia and the other states in the empire. For the laws which govern the cities are enacted by the individual states, as they are with us, and not by the empire. This is where the German city differs most radi- cally from our own. For the American municipality enjoys only such authority as is specifically granted to it. Its powers are set forth with the utmost par- ticularity. There are few presumptions in the city's favor; it has few implied powers. It has none of the liberty of a private corporation or of an individual. It can only act as it is told to act. And the courts * Municipal Government in Continental Europe, p. 323. EXPLANATION OF THE GERMAN CITY 255 interpret the things it can do and the way they must be done, with the presumption against the city rather than in its favor. The American city is in bondage to a higher au- thority, to which it must constantly go for rehef . In many instances it cannot control its own employees or change their salaries. It can only enter on the smallest undertaking after it has secured permission from a reluctant legislature. It cannot regulate the public service corporations that lie so close to its life; and, generally speaking, it can own only water and electric-lighting undertakings. It cannot secure better street-car service, extensions to new territory, or a change in the lighting power of gas or the charges for any of these services. The tenements and the slums are almost immune from the city's control, as are the height, style, and character of buildings. The city cannot borrow as it wills, for its borrowing capacity is limited by law, and is usually below what is needed to keep pace with its growing necessities. Nor can it collect revenues beyond a certain limit or experiment with taxation. The American city lives within the most carefully prescribed rubrics, designed not to promote efficiency, but to protect property. The powers it enjoys lag many years behind the needs of the day, and are only enlarged after exhausting contests before the legislature or too late for the prevention of abuses that can only be corrected at colossal cost. Privileged interests, political bosses, 256 EUROPEAN CITIES AT WORK and suspicious farmers have been engaged for a gen- eration in welding chains about our cities, until they have become our most helpless and inelastic polit- ical agencies. The denial of home rule is one of the many anom- alies of our poHtics. In a countrj'- where all the as- sumptions are of democracy local self-government in important things is almost non-existent. Consti- tutions, charters, and judicial decisions have so cribbed, cabined, and confined the American city that the wonder is that it has done as well as it has. Monarchical Germany reverses this principle. It assumes as a matter of course that the city should be as powerful as a private individual, certainly as powerful as a private corporation. And the things forbidden are relatively few. The city has wide lati- tude in the ways it can raise its revenues. It can adopt the business, license, or real-estate taxes, and fix the rates that shall be paid. There is no legal limit to the tax rate, although the interior depart- ment reserves the right to participate in the admin- istration if the income tax exceeds a certain figure. Nor are there any limits on the amount of money that can be borrowed or the purposes for which it can be used. And the debts of German cities are frequently many times those of an American city of the same size. The city engages in land speculation for profit ; it owns farms and forests, docks and har- bors, savings-banks, mortgage institutions, and pawn- EXPLANATION OF THE GERMAN CITY 257 shops. It loans money for house-building, erects houses for its working-people, owns opera-houses, theatres, and exposition buildings, and operates wine- handling businesses for profit. It controls the land speculator and plans his land for him; it determines the purposes for which the land shall be used before it is sold. It determines the height to which men can build, the amount of land that can be covered by improvements, and the distance houses shall be lo- cated from the street. In some sections villas only may be erected, in others apartment-houses, in others workingmen's cottages. The city prescribes where factories shall go; it prevents smoke and noise, and by direct or indirect action controls the style of archi- tecture that may be employed. The power of the German city over property is as far-reaching as its power over persons. The German city has more than home rule. It is almost a Httle republic, like the freistddte of the middle ages, which owed allegiance to no one. Cities are, however, subject to administrative supervision by the interior department. New undertakings must be sanctioned by the central authorities, which may disapprove of them if they seem too great a departure from municipal experience. Bond issues must also be approved. The interior department oversees the enforcement of certain laws which relate to purely state policies, such as the maintenance of the minimum educational standard of the state. 258 EUROPEAN CITIES AT WORK Below this the city must not fall, although it may extend its educational system indefinitely beyond the minimum. The interior department is also an advisory agency. It sets standards, collects statistics, and encourages projects of importance to the nation or the community. It is a bureau of municipal re- search. Its function is one of encouragement and direction, rather than repression. The German city is subject to administrative rather than legislative control by the state. Under this arrangement great elasticity is secured. There is local freedom, subject to the possibility of veto by the state. Every city can develop as suits its particular local needs or ambitions. It must live up to a certain standard, but beyond this it can go as far as it likes, and as long as the central authority does not intervene. This procedure has great advan- tages. It makes each community an experiment station. Most of the municipal achievements of Germany have been first worked out by one city, and when success has been assured the idea has been copied by others. Freedom, too, has had an inspiriting effect on the people. It has created a love and pride in the city that is not found in England, France, or America. And such pride cannot arise without freedom. Men cannot be aroused to interest in a movement which they cannot achieve or in which they do not directly participate. It is impossible to awaken enthusiasm New City Hall, Dresden. New Gothic City Hall, Munich. City halls in Germany are of great splendor. They are used for a variety of public purposes and usually contain rathskellers in the basement. EXPLANATION OF THE GERMAN CITY 259 for a project that involves first a change in the Con- stitution, then a change in the State laws, then the assent of the local authorities. It is hard to become interested in a cause when the fruits of victory may be taken away by the courts or the next session of the legislature. We have violated all social psychol- ogy — violated it so completely that the wonder is we have any city spirit left. Wherever the city has been free — free to govern itself as it willed, to build, to reahze the ambitions of men — there local love and patriotism have flowered. There, too, civilization has reached a high develop- ment, for the civiUzation of every age has been a city civUization. The Greek cities had such freedom. Each city was a little republic. The individual was almost lost in the community. Athens, Corinth, Syracuse, were the centres of art, culture, and the drama. There was no conflict between public and private rights, for private rights were not recognized when in con- flict with public needs. The city built temples, rather than homes. Rich citizens adorned the city with expressions of their patriotism. Leisure was provided for, as were education, the drama, and the arts. The Greek city was free to change its form of government. It could collect its revenues as it willed. It was free to spend them as the ambition of the community decreed. For the city was also the state. 260 EUROPEAN CITIES AT WORK Rome, too, was a city republic. All Italy was tributary to the city, rather than the reverse. Here, too, civilization flourished again. And in Rome, as in Greece, the ambitions of men found expression in temples, gardens, public baths, amphitheatres, and other monuments of public character. Florence, Genoa, Venice, Padua, the cities of medi- aeval Italy, were also free. They had no distant over- lord. In these cities civilization awakened again af- ter slumbering for centuries. They gave birth to the greatest art the world had known since Athens. They recalled the learning of the past, and produced painters, architects, and men of learning whose work has enriched subsequent generations. In these cit- ies the rich merchants vied with one another not only for power, but for the beautification of their cities. They, too, were free to give expression to their am- bitions without the supervision of constitutions, laws, or the authority of a jealous overlord. The mediaeval cities of Germany and the Nether- lands were free cities. Frankfort, Hamburg, Bremen, Liibeck, Nuremberg, Brussels, Bruges, Ghent — in these cities commerce came to Hfe. The burghers cast off the chains of the dark ages. They bought or fought for their freedom from the baron on whose territory the cities came into existence. And free- dom produced the splendid halls which still adorn these cities. The guilds erected palaces which still remain in Brussels, Bremen, and Frankfort. For EXPLANATION OF THE GERMAN CITY 261 three hundred years these free cities kept alive the liberty of Europe and enabled men to acquire wealth and learning, to engage in trade and commerce; to lay the foundations for present-day civilization. Again in the twentieth century the German city recalls the ideals of earlier centuries. Even the al- most disfranchised workingmen have a city sense. Certainly the business men, who in this country are either indifferent to the city or are actively at war against it, are very proud of their cities. They are interested in the big things the city is doing — in the schools and hospitals, in the parks and public gar- dens, in the business activities of the city, in its health, its comfort, its beauty. To the promotion of these things men contribute of their wealth. They do not give to charity, to the endowment of hospitals or universities; rather their gifts are for gardens, pub- lic places, the building of schools, or for work of a constructive character. It is difficult to know how far this city sense ex- tends; as to how universally it is felt by the working classes who participate so little in the actual control of the city. There may be great numbers who care Httle for the city, for large numbers do not vote, for one reason or another. And the attitude of mind of rich cities Hke Diisseldorf and Frankfort is undoubt- edly different from cities like Essen, Barmen, and Elberfeld. Among the classes accessible to the trav- eller, however, there is a wide-spread affection for 262 EUROPEAN CITIES AT WORK the city that does not seem to exist anywhere else on the continent. There are still other explanations of the German city — explanations that are traceable to the tradi- tions of the comitry, of a feudal society in which the individual was subordinate to the state. From these traditions Germany has never been emancipated. Up to forty years ago the population was almost wholly agricultural. The change to industr}^ was sudden and abrupt. The factory appeared almost a hundred years after it came to England. The com- mercial classes have never been powerful enough to control politics, as in America; nor have they united with the landed aristocracy, as in Great Britain. And the traditions of feudalism still affect all classes; they mould the prejudices and the philosophy of the state. One of these traditions is the dignity of the state. Germany has never known that license of business that exists in America, a license that has moulded politics, the press, and pubhc opinion to its will. The ruling political class in the empire is still the landed aristocracy, an aristocracy almost as feudal as it was at the end of the eighteenth century. And the jun- ker is jealous of the commercial classes, fast rising to power. But while the junker rules Prussia and looks out for his landed interests, he has no city posses- sions to protect as in England. The ruling aristoc- racy do not own the franchise corporations, the EXPLANATION OF THE GERMAN CITY 263 docks, the markets, or city land; nor do they own the railroads, the express and the telegraph com- panies. These industries are the property of the in- dividual states, and have been for three-quarters of a century. Having no privileges to protect, the ruling aristoc- racy in the state gave the cities freedom, the right to own things, to control property. There is no con- flict between their economic interests and their pa- triotism as there is in Great Britain and America. This in part explains why the cities have been given such unlimited freedom in local administration. In addition, the idea of public ownership is old in Germany. It is part of the traditions of the coun- try. All of the German states are great land-owners, while cities own forests and agricultural land. The stateaj own coal-mines, the railways, telegraph and telephone systems. As a consequence of these tradi- tions every one in Germany accepts the idea of public ownership as the most natural thing in the world. The universities reflect this attitude of mind, for political economy was not influenced by the in- dividualism of Adam Smith, Ricardo, and John Stu- art Mill as it was in England and America. There is no presumption against the state or the city, no assumption that what the community does will be badly done, and that only through enlightened selfish- ness will the social welfare be best advanced. German cities, too, are very old, older than the 264 EUROPEAN CITIES AT WORK cities of England. Berlin was the capital city of the Hohenzollerns. Dresden, Munich, Mannheim, and Karlsruhe were capital cities. There are numerous other hauptstddte and seats of bishoprics. Hamburg, Bremen, Frankfort, and Liibeck were free cities, with traditions of a highly organized industrial life running back into the fourteenth century. All these cities retain many monuments of their early life. They are embellished with palaces, museums, art galleries, and hofgartens. Rulers vied with one an- other to promote the arts and to beautify their cap- itals. The cities of Germany were old before the industrial revolution burst on the world. In America we have no such traditions, no such monuments. Our only memories are those of shops and factories, repeating themselves like the rings of a growing tree about the centre. Our ideals are formed by the men who built the railroads, mills, and factories. Only recently have we begun to think in other terms than those of private business. To these traditions must be added the determina- tion of Germany to become a world power. To this end much of the best thought of the empire is dedi- cated. In this prograname the city plays a promi- nent part, as does science. The university prepares men not only for private but for public professions as well. There are courses in law, political science, municipal administration, and town planning. Men are trained to be burgomasters as they are to be law- EXPLANATION OF THE GERMAN CITY 265 yers. The universities and their laboratories are at the command of the city as they are of the state. Science is close Hnked with politics. And nowhere is the intimacy closer than in the study of the prob- lems of the city. In this imperial programme of industrial eminence the city is recognized as an agency for its promotion. The health of the people is endangered by industry. They must be protected, educated, trained to be good workmen as well as good soldiers. The city can promote trade or retard it, it can stimulate in- dustry by offering facilities for transit by rail and by water, or it can strangle industry by leaving these agencies in monopoly hands. The city is also recog- nized as a means for bettering the conditions of life and for the promotion of comfort, convenience, and happiness. These are some of the influences that lie back of the German city. They explain the attitude of mind of the voter, of the burgomaster and the council- men. They explain the mind of the artisan and the business man as well. There are other forces at work which profoundly affect the psychology of the German city, forces which are intimately related to the honesty, efficiency, and pubHc spirit of official and citizen. The most important of these is the bigness of the city, its atti- tude toward itself, toward the activities it should assume and the things it should do. The German 266 EUROPEAN CITIES AT WORK city is the most important corporation in the com- munity. Its budget is larger than that of any pri- vate corporation. The budget of the city of Diis- seldorf in 1909 (population 325,000) was $28,642,070, of Cologne (population 467,653), $42,297,000. This is many times the budget of an American city of the same size. These expenditures include all of the activities of the city, the street railways, gas, water, and electric-Hghting enterprises, the land owTied by it, the docks, markets, banks, and other undertakings. The actual receipts from taxation of Diisseldorf were but $2,856,600, and of Cologne but $4,810,000, or in the neighborhood of $10 per capita. The business undertakings of the city are nearly ten times as im- portant as the activities maintained through taxa- tion. The great part of the city budget relates to business pure and simple. And these activities link the city with the lives of the people. They touch them in a multitude of ways. The police, health, and sanitary departments are vigilant and efficient. Education is in close touch with the home. The workman goes to the city pawn- shop to make a loan and to the city savings-bank to deposit his wages. If he desires to own a home he borrows from the city mortgage bank or invests in one of the co-operative building associations with which the city is identified. WTien sick he goes to a city physician, a city hospital, sanatorium, or con- valescent home. His insurance against old age, sick- EXPLANATION OF THE GERMAN CITY 267 ness, invalidity, or accident is partly managed by the city. The city also offers him many means of recreation. He bathes in the municipal bath-houses along the river or in the splendid public baths about the town. In the evenings he goes to the Tonhalle, to the palm gardens, or to the exposition hall, where he hears the best of music for an insignificant sum. He spends his Sundays and holidays in the zoological gardens or tramps with his family through the great woods about the city. The parks and water-ways offer clean, healthful amusement at no cost at all or at a small charge. Art galleries and museums, streets and palaces, opera-houses and theatres all reheve the tedium of life of rich and poor, and all are supplied by the community itself. Germany realizes that the leisure time of the people must be provided for and cannot with safety be left wholly to private hands. There is a necessary psychological reaction from this policy, a reaction on all classes. The attitude of the citizen is largely traceable to the attitude of the city toward the citizen. The city is the most important thing in his life. It touches him in count- less ways. Life is a social rather than an individ- ualistic thing. Men come to think in community terms, for their life is circumscribed by community agencies. Every activity is related to something the city does; every desire is in some way influenced by the city's services. The hausfrau thinks in terms of the city that guards her children, that ministers 268 EUROPEAN CITIES AT WORK to their health and happiness. Her recreations and her market-baskets are suppHed by it. The city is so important it cannot be neglected; it cannot be ignored. This, too, explains why men are wiUing to enter the city comicil ; it explains why they aspire to make administration a profession. It explains, too, the expert who has become a necessity. Business men are eager to serve on a board of directors which deals with millions. They desire to be identified with the biggest thing in the commmiity. There is honor in being part of an enterprise of such proportions and with such possibilities of service, and just as men in this country seek places on the board of directors of a bank or a street railway, in Germany and Great Britain the alluring posts are in public administra- tion. The council is the most important directorate in the city, while the magistrat is an executive com- mittee far more alluring than that of a transconti- nental railroad. In addition, pubHc ownership of the pubHc service corporations puts an end to the conflict between pub- lic and private interest. Business and professional men can enter the council, for there are no fran- chises worth millions owned by themselves or their friends to be protected. There are no special privi- leges which ramify into the banks and trust compa- nies, the press and the clubs, into all the professional classes, as do the privileges of the street railways, EXPLANATION OF THE GERMAN CITY 269 gas, water, and electric-lighting companies in this country. I have no doubt but that the city coun- cil in America would command the best talent of the city^were our politics free from the conflict of interest which makes the men of wealth and power fear better government. For our business men ac- cept place on Hbrary and education boards, on the boards of trustees of hospitals, chambers of commerce, and other public and semi-public agencies, where there is no conflict between their patriotism and their purse. But such men dare not accept nomination to the city council. Nor would the voter trust them. The private ownership of pubHc service corporations has created a condition that divorces the talent of the community from poHtics. Philadelphia, Cincin- nati, San Francisco, Denver, Cleveland, Detroit, To- ledo, all tell the same story of the class conflict which was precipitated by the attempt of the city to regu- late these interests or even secure proper Hmitations on the renewal of a franchise. The business and pro- fessional classes were arrayed against the city in its efforts. So were the banks and the press. The city was deprived of its talented men at a time when they were most needed. The class which owned, and the class identified with the class which owned, do not dare enter municipal politics because of this con- flict, a conflict which does not exist in either the German or the British city. Home rule has enabled the German city to build 270 EUROPEAN CITIES AT WORK as it willed. This has given variety to the city. It has awakened local love. The traditions of German life, the long, uninterrupted history of the city, its traditions of beauty and order, the universal efficiency of the empire — these, with the big-visioned services which the city renders, explain its honesty, its effi- ciency, its eminent success. And it is the absence of these elements, rather than the inherent dishon- esty or incapacity for self-government of our own people, that explains our failures. For we have created a condition that makes honesty and effi- ciency almost impossible. CHAPTER XVI IMPRESSIONS OF THE BRITISH CITY If you come in contact with the mind of the man behind the ballot in the British city, you meet a very different mind from that of the man behind the bal- lot in the German city. It is a very different mind from that of the man behind the ballot in America. And it is the mind of the man behind the ballot in eveiy country that makes the city what it is. I first came in contact with the men who rule the British city in a social club in Glasgow, in many ways the most aggressively efficient city in Great Britain. I lunched with a group of merchants, shippers, law- yers, and business men. It was such a group as one would meet in a club in any large American city. All of the men enjoyed local eminence. And each of them, I afterward learned, was connected with the government of Glasgow, or of one of the surrounding communities. And for several hours these Scotch business men talked city politics in a language with which I was not familiar. The previous day had been an annual clearing- house day in the council. Several committees had given an accounting of their work. They had sub- 271 272 EUROPEAN CITIES AT WORK mitted a statement of earnings and expenditures, of assets and liabilities. And these business men were talking of their community's balance-sheet. They discussed the municipal tramways, the earnings for the last year, the surplus carried to depreciation and reserve, and the contributions to be used for city pur- poses. There was an obvious pride in the fine show- ing of the committees, a pride in the rapid debt re- duction and the efficiency of the lines. The followdng day I read the report of the tram- way committee, and it justified the pride of these business men as did the gas, electric-light, and water committee reports which had been made the same day. I accompanied the lord provost and mem- bers of the council on a tour of inspection of the many activities of the city. It was an annual survey of the city at work. We drove to the municipal lodging-house designed to afford a home for widows and widowers with children. It is provided with kindergartens and creches in which the young chil- dren are left when the parent goes out to work. We visited the slum-clearance enterprise and municipal dwellings erected on the site of one of the most dis- ease-breeding spots in Great Britain. For the tene- ments of Glasgow are terrible. The wretchedness of the poor is only surpassed by the east-end WTiite- chapel districts of London. It is stated that 50.6 per cent, of the population of all Scotland lives in two-room cottages, or apartments, and conditions in IMPRESSIONS OF THE BRITISH CITY 273 the towns are, of course, much worse. We visited the central fire-department station and saw the firemen at work in the shops building and repairing fire en- gines, wagons, and equipment. For the firemen of Glasgow are artisans as well. They perform a double duty. During their leisure hours they build and maintain the fire apparatus for the city. We passed numerous bowling greens as smooth as a billiard table, where workingmen spend the long summer evenings at the favorite Scotch play of bowls. The inspection closed with a banquet at the city hall at which the chairmen of the various committees dis- cussed the achievements of their departments during the past year and their hopes for the future. There was no suggestion of partisan politics, no talk of personal advantages or spoils. There was something akin to religious enthusiasm for Glasgow. I met the same municipal mind in the restaurants, about the hotels, on top of the double-decker tram- cars. Almost always the talk drifted around to the council, to Glasgow, to the tramways, gas and elec- tric undertakings, to the art galleiy, the parks, pub- lic lectures, or the playgrounds. I fomid even the workingmen knew about the budget; they were fa- miliar with the life of the lord provost as well as the personal characteristics of councilmen. They knew how much was spent on wines and luncheons by a committee, and there was some protest against the wine bill, which is one of the little extravagances 274 EUROPEAN CITIES AT WORK that arouse much talk at elections and in the radical press. And always and everywhere the talk turned to the rates (taxes). They were too high, all agreed. Every voter is a taxpayer, and he pays his taxes directly as a tenant. He knew to a penny what the city cost him. For local taxes in Great Britain are paid by the tenant rather than by the owner. The population of Glasgow is 1,150,000. The city is terribly congested. Attempts have been made to distribute population out into the countryside by the building of new municipal tram lines which were oper- ated at a loss. Immediately suburban land-owners increased the price of their holdings, so that it was impossible for the poorer classes to take advantage of the transportation facilities constructed for their reHef . This aroused the municipal authorities to the necessity of controlling the land speculator. If evciy effort to improve the condition of the people only re- sulted in an increase in the value of land, there was no way out of the housing problem. This led to the organization of a movement for the taxation of land values to check speculation. The council made an appropriation of $15,000 to promote bills in Parlia- ment to permit cities to tax land values for local purposes. More than 500 communities were organ- ized into a league to further the measure, for other cities had been thwarted in their efforts to improve housing conditions by the same causes. For years J IMPRESSIONS OF THE BRITISH CITY 275 the league has besieged Parhament to permit cities to levy taxes on the capital value of land by the same methods employed in America, but thus far the land- owners in Parliament have prevented any legislation on the subject. Glasgow is radical. Yet the council of Glasgow is made up of business men, many of them eminent business men. There is a sprinkling of Socialists in the council who are constantly in controversy with the conservative members over the management of municipal undertakings. These labor members, like the business men, give generously of their time to the city, and with no other remuneration than the satisfaction which comes from the service. And the men in the council reflect the point of view of the men in the club, in the restaurant, on the street. I doubt if any elective bodies in the world more accurately mirror the opinions of those whom they represent than do the councilmen of British cities. They are a cross-section of their con- stituents. They have to be. If they depart from the Scotch standards of thrift in their opinions or votes they are sure to be challenged at the next election, when they will be heckled on the platform by their neighbors and opponents. For heckling is a fine art in Glasgow. Through it new ideas are pro- moted, and candidates for municipal and parliamen- tary office are pledged to definite issues. The taxa- tion of land values was promoted by these means, as 276 EUROPEAN CITIES AT WORK was municipal ownership. And any proposal which increases the burden of local taxation is sure to arouse opposition and frequently to invite defeat. Some years ago one of Glasgow's most eminent business men, Sir Samuel Chisholm, who had been identified with the city administration for years, was defeated for re-election because of his advocacy of a badly needed health and slum clearance project. It in- volved an increase in taxation for which his constit- uents were not ready to stand in spite of the eminent services he had rendered to the community. In addi- tion he was an outspoken advocate of temperance reform. This, too, contributed to his defeat. But nothing, miless it be dishonesty, is more hazardous to a municipal career than a proposal which prom- ises to increase the burden of local taxes. This is the nerve centre of every British citizen. In Liverpool, Manchester, Birmingham, Sheffield, Leeds, people talked about the same things. They seemed to understand municipal politics and issues. And always the rates and taxes, municipal owner- ship, the taxation of land values, or some other eco- nomic question entered into the controversy. No- where was there a suggestion of dishonesty. Every- where there was an alert citizenship that looked upon the council chamber as of far more interest than Westminster. Everywhere men seemed to feel it was a high honor to serve in the council, an honor to which business men very generally aspired. I IMPRESSIONS OF THE BRITISH CITY 277 I attended a banquet of municipal officials in Man- chester and sat next to the chairman of the water committee. He had been on the council for thirty years and had just been knighted by the King in recognition of his services. Great Britain does not pay her elective city officials; she holds out what is far more desired by them than money, and that is knighthood or a baronetcy for distinguished action. This is the goal of the business man who has made his leisure secure. For this he will serve for a life- time. For it he gives generously to his political party, to charity, or to some public cause. Sir Bosdin Leech seemed far prouder of the chair- manship of the water committee than he did of his business success. He had seen the department de- velop, had watched its earnings grow, and its finan- cial stability become assured. He was prouder of his work for the water supply of his city than a rail- way president, and talked about it with the enthu- siasm of a parent for his child. Asked by an American guest as to how it was pos- sible for busy men to give so generously of their time, he replied that he did not know what inspired it, but "he could assure the inquirer that no man who entered the city council ever made a penny out of it. If any man were found using the corporation as a vehicle for his own enrichment he would be drummed out of the city." I visited the Manchester ship canal in company 278 EUROPEAN CITIES AT WORK wath municipal officials. It is partly a public, partly a private undertaking, the city having subscribed for a large part of the securities. Manchester is an inland town lying 35 miles to the east of Liverpool. It suffered from discriminatory freight rates on the rail- ways and was at a disadvantage in competition with the seaboard towns. The canal is 35 miles in length and has cost more than $75,000,000. It was eleven years between the passage of a bill in Parliament in 1883 and the opening of the canal for traffic in 1894. Deep cuts had to be made, some of them for miles through rock from 50 to 60 feet in depth. There is a difference of level of over 60 feet in the 35 miles of canal-way. Five huge locks capable of accommo- dating great ocean steamers had to be constructed, while the Bridgewater Canal is carried over the ship canal far above grade, the section which crosses the ship canal being so arranged that it can be swung completely around to permit the passage of ships while filled with water. The harbor itself is of im- mense proportions, and is surrounded with ware- houses, grain elevators, sheds, and railway tracks connected with hydraulic and electrical cranes for the transshipment of freight. The canal company controls the railway sidings and performs a lighterage business in order that costs may be kept at a mini- mum and the harbor be operated as a unit. The harbor water-ways cover 104 acres and the quays 152 acres. There are five and a half miles of dock IMPRESSIONS OF THE BRITISH CITY 279 frontage in all. For years the canal failed to meet interest charges on its obligations, but recently it has begun to pay. It saved Manchester from decline and made it one of the great ports of the world. It is a monument to courageous municipal spirit. The chairman of the Manchester tramways com- mittee, who spoke at the banquet, talked of the mu- nicipal street railways as though they were the most important thing in England. He was proud of the cars, which are models of beauty and comfort. They are as clean as they can be kept and are almost noiseless in operation. There was no sign of over- crowding even during rush hours. Manchester thinks too highly of its people, of its factory women and girls, of its clerks and workingmen to permit them to be herded into inadequate cars for the sake of profits. There are no strap-hangers. The trans- portation system is designed to serve the people the same as the schools and parks. They are the best that the ingenuity of the council and the tramway manager can devise. There is no deficit to be made up at the end of the year by reason of this ' ' seat for a fare ' ' poHcy . Man- chester has done what the private street railways in America say cannot possibly be done, and has done it as a matter of course. In 1911 the tramways paid all operating expenses, interest on the investment, sinking-fund charges, and even taxes, and in addi- tion turned over to the city treasury the sum of 280 EUROPEAN CITIES AT WORK $375,000 with which to reduce taxes. This was in a city of 900,000 people and with an average rate of fare of a trifle over two cents. In addition, there was a saving of several millions of doUars a year in car fares to passengers as compared w^th what would have been collected by a private company in America. Manchester sells gas from its own works for forty- eight cents a cubic foot. The price is even lower for fuel purposes. The city encourages the use of gas among the poor by the introduction of penny-in-the- slot machines attached to the meters. It lights its alleys and slums generously as a means of checking \nce and crime. It is a common sajang in England that a lamp-post is as good as a policeman. Even at the rates charged, the gas plant earned $325,000 for the reduction of taxes after meeting all operating and fixed charges. And the chairman of the gas committee seemed to reflect the attitude of the officials of the city when he said that "public men in England had been taught from the cradle to do their utmost to promote the happiness and welfare of their fellow-citizens. It was a more serviceable honor," he said, "to be a member of a city council than of ParHament." There is a dignity about a title or an office in Eng- land, even though it be an obscure one, that does not prevail in this country. The sons of the aristocracy serve in the army, the church, or the state. Success- IMPRESSIONS OF THE BRITISH CITY 281 ful barristers aspire to Parliament. Members of the county families serve as magistrates in the county courts, while in the cities the tradesmen seek place on the council as an avenue for the expression of the same spirit of public service. There is a passion for public place in England among the highest and the lowest. Mr. Joseph Chamberlain began his remarkable career, which led him almost to the premiership of the empire, as a member of the town council of Bir- mingham. He was a wealthy manufacturer, and for many years was connected with the council, and later was mayor of the town. He is almost the only British mayor who achieved distinction as a positive force in municipal affairs, for usually the British mayor is but the presiding officer of the council, en- joying for a brief term the honor of being the first citizen of the community. Rarely does he actively engage in the promotion of a programme or in the carrying forward of a policy. Birmingham was redeemed from the almost uni- versal ugliness of the British city by a great slum clearance and rebuilding scheme which Mr. Cham- berlain promoted during his incumbency as mayor. In the heart of the city was a blighted area, the centre of disease and vice. In 1875 the city ac- quired forty-five acres of slum land which included this area. One-fourth of the land so acquired was opened up as business streets, of which Corporation 282 EUROPEAN CITIES AT WORK Street is the most commanding. The remainder of the land was laid out in building sites, which were leased for long terms with provision for the periodical reappraisal of the rental value. The municipality became a landlord on its own account, and is now reaping dividends on its invest- ment. For the improvement has paid for itself in several ways. The total taxes collected from the slum area in 1875 were but $52,563. In 1909 the taxes on the same property increased to $220,443, or a gain of $167,880 a year, or 300 per cent. The carrying charges for interest and sinking-fund amount to $111,929 a year, or only two-thirds of the increase in taxes alone. Within a few years' time the annual debt charges on the improvement will be reduced to $97,330, and will ultimately disappear altogether, when the sinking-fund accumulations have repaid the loan. But this was not the only financial gain. The land has greatly increased in value, and when the present leases expire the land, together with all the improve- ments, will revert to the city without cost. When this occurs, the revenues from the undertaking will amount to $485,650 a year. All this is in addition to the saving in health, as well as the great improve- ment in the appearance of the city, which has been transformed by the splendid streets and the rebuild- ing of the business district. The British city is honestly administered. Of that IMPRESSIONS OF THE BRITISH CITY 283 there is no question. Public opinion does not toler- ate the placing of friend or political supporter in pub- lic office as a reward for political service. There are no spoils and no suggestion of graft. There is, however, something very like graft that goes almost unchallenged in the British city. It is the influence of privileged classes in the council. I once heard the question of municipal honesty raised by an American visitor at Liverpool in conference with a group of city officials. The American asked : " Is there no graft in connection with municipal own- ership, no corruption incident to the many under- takings which the city carries on?" "No, there is no corruption in the British city," the official replied, "it does not exist. Liverpool is honestly administered in the interests of the people." " But," the inquirer continued : " are there no busi- ness interests, no land speculators, no privileged classes, that in some indirect way control the council or influence its actions? Is the British city free from this sort of influence also?" An elderly alderman who had taken no part in the conversation interposed and said: "Liverpool owns the street railway, the electric-lighting and water plants. It does not own the gas plant, although proposals have been made to buy it. There has been some complaint that too many stockholders of the gas company find their way into the council, and are active in the protection of their private interests. 284 EUROPEAN CITIES AT WORK If that is what you mean by indirect influence, there has been some of it in Liverpool." I heard this complaint in a number of cities that do not own the gas or electric-lighting plants. The companies send their directors or stockholders to the council, where they use their influence to pre- vent the purchase of the plant or to secure Uberal valuations when it is acquired by the city. Where private ownership prevails, companies are active in politics, as they are with us, but in a less aggressive way. There is no criminal wrong-doing. And the Enghsh people, with their veneration for men who have achieved distinction, find it difficult to suspect a prominent citizen of wrong-doing in such a matter. His advice is assumed to be only the wisdom of greater experience. Liverpool, like most British cities, is badly con- gested. The tenement districts are old, unsanitary, and involve a fearful cost in disease and death. But the city boldly undertook a number of slum-clear- ance projects at a total cost of 82,000,000. It tore down great areas of tenement land; the streets were widened, and 2,000 individual cottages erected to take the place of those destroyed. Citizens vie with officials in Liverpool in claim- ing that their tram ways are the most up-to-date in Great Britain. ^^Tlatever merit there may be in the claim — a common one, by the way, heard all over Great Britain — the tram ways are wonderfully effi- IMPRESSIONS OF THE BRITISH CITY 285 cient and comfortable, and are an ornament to the streets. The cars are fresh with paint, the employees are courteous, and the public is proud of the financial balance-sheet. There is no overcrowding at any time during the day. A great workshop is operated by the city where cars, motors, and machinery are both built and repaired. There is a spirit of enthusiastic rivaliy to make the service the best that can be offered. Municipal ownership, far from deadening initiative, seems to have given it the fullest oppor- tunity to express itself. This is true all over Eng- land, as it is in Germany. The manager of the tram ways invented a plough life-guard which has been copied by other municipal tram ways. It consists of a diamond-shaped guard made of lumber which runs so close to the tracks that any one thrown down is pushed off to the side by the fender. He cannot get under the wheels. In conse- quence, fatal accidents are reduced to the vanishing- point. Experiments were also made by the city with cars of every variety to find the one that was most popular, that would provide the most seats, and carry the greatest number of passengers with the maximum comfort and the minimum cost. The trams com- mittee purchased cars in America, Germany, and Belgium, and tried them out exhaustively to ascer- tain the type of car most wanted by the community. Finally, the double-decker type was adopted. It has so many advantages one finds it difficult to under- 286 EUROPEAN CITIES AT WORK stand why it is not introduced in America. The en- closed stairs have been found to be perfectly safe. The upper decks of the cars can be used in any kind of weather. In addition, statistical studies show that these cars can be loaded and unloaded as quickly as the single-deck cars universally used in this country, while double the number of passengers are comfortably carried. In addition, they are so pleasant that they greatly stimulate traffic. Many other improvements have been worked out in Liverpool which, so far as the public is concerned, are far in advance of the private lines in America. The cars are cleaned every night, as are the trucks. The signs upon the cars give the routes and destina- tion in detail. Stopping-places are marked by con- spicuous signs. On the narrow streets the span-wires are carried from rosettes on the buildings, rather than from poles. Employees are picked after the most careful examination; they prize their jobs, and are courteous and considerate to passengers. There are no strap-hangers at any time, for the double-decker car offers more than twice as many seats as the average American single-deck car. Across the river Mersey, from Liverpool, lies the village of Port Sunlight, one of the first garden-cities of Great Britain. It is a proprietary village of the Lever Brothers, soap manufacturers. The garden suburb is the most-talked-of municipal topic in Great Britain, and along with town planning has appropri- IMPRESSIONS OF THE BRITISH CITY 287 ated the municipal thought of the nation. It seems to mark an era in the whole city movement, and to offer a solution of the housing problem. In 1898 a book appeared entitled "Garden Cities of To-mor- row/' written by Ebenezer Howard, which proposed the building of model villages on cheap land, planned in detail in advance of their building. Several years passed before the book was taken seriously, but dur- ing the last few years thirty or forty suburbs or independent communities have been erected along the line laid down by the author; while the idea has been enthusiastically adopted by housing reformers in Germany, France, and the Continent generally. Port Sunlight was one of the earliest of the self- contained garden-villages. It differs from Letch- worth, Hampstead, and most of the subsequent un- dertakings in being a proprietary village, much as is Gary, Indiana, built by the steel trust. Fifty-six acres of land were first purchased, about five miles from the centre of Birkenhead, of which 32 acres were set aside for village uses and 24 acres for the factories. The original area has since been increased, until it now includes 230 acres, of which 90 are occu- pied by the works, and 140 by the village proper. The planning of the village was placed in the hands of an expert. The roadways are curved and skirt the ravines, which were dedicated to park purposes. The village now contains about three thousand peo- ple, all of whom are housed in detached or semi- 288 EUROPEAN CITIES AT WORK detached cottages erected by the company. There is great diversity of style, but perfect harmony in the whole. Almost every village need has been provided for. There are a church, a wonderful art-gallery, and a library. There are a gymnasium and club-houses, with an auditorium, swimming and other baths, tennis and cricket fields, and opportunities for out- of-door sports. In all of the garden-villages the greatest thought has been given to the leisure Hfe of the people, and the most generous provision has been made for play spaces, in winter as well as in sum- mer, for adults as well as for children. The cottages are surrounded with hedges, and the front gardens are kept up by the company itself, which makes a charge of six cents a week for the care of each cottage garden. The roadways are bordered with parkage, trees, and gardens, as are the open spaces. From a financial point of view the rents do not maintain the village, partly because of the large out- lay in the building and maintenance of the conomu- nity institutions, such as the institute college, gym- nasiums, baths, and so forth. The total investment approximates $2,500,000, upon which the company receives no interest, the rents being only sufficient to maintain the cottages and keep them in repair. The loss of interest to the company is about $170,- 000, which the company treats as a contribution to efficiency. The owners claim that the improved IMPRESSIONS OF THE BRITISH CITY 289 health of the employees, due to better homes and open-air Hfe, yields a return in the increased out- put of the factories that reimburses it for the loss on the investment. In this respect Port Sunlight dif- fers from the other garden-cities, like Hampstead and Letchworth, which are organized on a com- mercial basis and yield a return on the investment, the same as any other commercial enterprise. Sir William H. Lever, one of the proprietors, insists, as a matter of principle, "that every diligent em- ployee has a moral and indisputable right to live in a decent home, to possess the opportunity to bring up his children in decent environments, to enjoy the best possible facilities for the development of his own, his wife's, and children's faculties, so as to make them healthy and strong and long-lived. Business, he says, cannot be carried on by physically deficient employees, any more than war can be successfully waged by physically deficient soldiers. Business efficiency therefore demands better housing condi- tions for employees, apart from the principle of the employees' own unquestionable right to the same." The houses at Port Sunlight are in striking con- trast to the slum districts of the near-by cities of Liverpool and Birkenhead. And the improvement in the appearance of the working-people and the children on the streets is a demonstration of the terrible cost of bad housing to the life and morals of a people. Careful statistical investigation showed 290 EUROPEAN CITIES AT WORK that the height of Port Sunhght school-children at fourteen years of age was 62.2 inches, while those in the public schools of Liverpool ranged from 55.2 inches to 61.7 inches. The weight of the same chil- dren in Port Sunlight was 108 pounds, as compared with 71.1 to 94.5 pounds in the pubHc schools of the near-by cities. The statistics of the death-rate are quite as eloquent. In the average industrial cities in England it ranges from 14 to 19 per thousand, while in Port Sunlight it ranged during seven years from 5.55 to 12.87 per thousand. The garden-city is England's greatest contribution to the housing problem. After a generation of fruit- less effort to relieve urban congestion by regulation and the construction of municipal tenements, the garden-city has awakened the enthusiasm of housing reformers not only in Great Britain, but on the con- tinent of Europe as well. A proprietary garden-vil- lage has been built at Boumeville, near Birmingham, while within the past ten years 30 or 40 other garden communities have been started. The best-known are those of Letchworth and Hampstead. The former has grown, in seven years' time, from 400 to 7,000 population. It is located 34 miles to the north of London, and is planned upon a large estate, purchased for the pmpose, of 3,818 acres. It was laid off like an old English village, with the retail shops confined to certain streets near the station. The factory sites are by the railway track, away IMPRESSIONS OF THE BRITISH CITY 291 from the residence areas, which are planned for work- ingmen or retired well-to-do people. Streets are of the greatest variety, as is the architecture. Restric- tions limit the height of all buildings as well as the distance from the street. There is generous pro- vision for athletic sports. A conmiunity club-house has been erected, as well as institutes and public schools. Land speculation has been eliminated by a provision in the by-laws of the company, under which earnings on the capital stock are limited to 5 per cent., any profits in excess of this being used for the conmiunity itself, ultimately for the reduc- tion of local taxes. A similar garden suburb has been developed at Hampstead, on the outskirts of London. It, too, is a co-operative community, in which the dividends are limited to 5 per cent, on the investment. A score of other garden-cities have been begim in the neighborhood of London, Manchester, Liverpool, York, and elsewhere. Possibly the garden-city will redeem the British city. Housing conditions are everywhere bad, and poverty is so general that it has alarmed the nation. No country in Europe is so nearly exclusively urban as Great Britain. The census of 1911 shows a popu- lation for England and Wales of 618 to the square mile. Sixty years ago the population was about equally divided between the country and the town, but in 1911 the census shows that no less than 78 292 EUROPEAN CITIES AT WORK per cent, of the population live under urban, and only 22 per cent, under rural conditions. Seventy per cent, of the people live in towns of more than 10,000 population. Decade by decade the urban population increases in spite of constant official ef- fort during the last ten years to create a movement back to the land. Two movements have recently been started which promise to relieve this tendency. One is the taxa- tion of land values, which had its beginnings in the budget fight of 1909 for the valuation of land and its taxation at a low rate; the other, the garden-suburb and garden-city movement, whose possibilities are as yet only faintly realized. The threatened taxation of land values has stimulated the sale of great es- tates to small farmers, while the garden-city move- ment has indicated the possibihties of industrial and residential decentralization, which, from the present interest in the idea, give promise of changing the character of the British city. All these ideas look to the utilization of the powers of government to im- prove the condition of all classes. They are a sug- gestion of the potentiality of democracy when con- sciously directed to social ends. ^ For a more extended description, by the author, of The Garden Cities of England, see Scribner's Magazine, July, 1912. CHAPTER XVII HOW THE BRITISH CITY IS GOVERNED The administrative machinery of the British city, or borough, as it is legally called, is very simple. The town council is endowed with all the powers the city enjoys. There is only one elective official, and that is the councilman. The people do not select the mayor or judicial magistrates. There are no boards or commissions which confuse the voter as to where responsibility should be placed. The mayor is chosen by the council. So is the town clerk. The managers of the various departments are nominated by committees and subsequently confirmed by the council. Up to 1902 local education was in the hands of separate agencies, but by the education act of that year it was transferred to the council, which admin- isters education through a committee. This is all there is to the government of the British city. It is simple, direct, and easily understood by all. The town council is a large body, much larger than it is with us, but about the same size as it is in Ger- many. The election is usually by wards, although some of the smaller towns elect councilmen at large. Most of the larger boroughs are divided into sixteen 293 294 EUROPEAN CITIES AT WORK wards, with three members from each. In some cit- ies the comicils are much larger. The London county- council has 118 members. In Manchester there are 103, in Liverpool 134, and in Glasgow 75. Mem- bers are elected for a three-year term, and one-third retire every year. All citizens except clergymen, including women since 1907, are eligible to member- ship. Even non-residents may be chosen if they own property in the municipality or pay certain rates and live within fifteen miles of the borough. Nor need candidates Hve in the wards which they repre- sent. In consequence the councils of the larger cit- ies contain many members who live in the suburbs, but do business in the city. This is also the rule as to members of Parliament, and is one explanation of the long service of capable men in British politics. It enables the community to draw on talent wherever it may be found. A capable man defeated in one ward can stand for election in another. This reduces log-rolling. It raises the whole city above its parts. In addition to the councilmen there are a certain number of aldermen, usually sixteen, chosen by the council upon its organization, either from out its own membership or from distinguished citizens outside. Except in special cases the number of aldermen is fixed by law at one-third of the council. Aldermen are chosen for six years, and one-third of the number retire every three years. The usual practice is to select the older and more experienced councilmen HOW THE BRITISH CITY IS GOVERNED 295 for this distinction, by-elections being then held to fiU the vacancies. Frequently candidates who have been defeated for the council are elected as alder- men. Re-elections are the rule, and it is common to find men in the council who have served in one ca- pacity or the other for a quarter of a century. Aldermen have the same powers as councillors. They sit in the council, which has but one chamber, and vote on all questions. The only distinction be- tween councilmen and aldermen is the method of election and the greater dignity which attaches to the latter oflBce. Partisan considerations enter into the selection, although it is not uncommon for an under- standing to exist by which the minority party re- ceives recognition. Aldermen quite generally hold the important chairmanships by virtue of long service. In a way the aldermen correspond to the unpaid members of the magistrat in the German city. Their experience is that of long training, however, rather than of special qualifications for a particular post. Here the analogy ends, for the aldermen are members of the legislative rather than the administrative de- partment of the city. The councilmen and aldermen sit together and form the town council. They elect the mayor and appoint the committees. The more distinguished members sit as magistrates. This is all there is to the machinery of British cities, all of which, with the exception of London, 296 EUROPEAN CITIES AT WORK have the same form of government. There is no provision for the permanent expert, as in Germany, for neither the members of the council nor the mayor receive any salary. Nor is city administration a pro- fession to which men devote their lives. Such per- manence and expert assistance as is secured is ob- tained through the permanent heads of the depart- ments, who are trained in a limited field rather than in the art of city administration. In consequence the British city is far less brilliant than the German city. It has little of the imagination and little of the social outlook which the paid magistrat and per- manent expert burgomaster give to the latter. City government in England is part of the politics of the nation, although it is free from many of the evils which characterize city government in this country. The work of a conscientious councillor is very ex- acting. The council meets regularly, while the com- mittees are in frequent session. There are inspec- tions to be made, a great variety of city functions to attend, while if the councilman is a police magis- trate his official duties may easily consume one-half of his working hours. The simplicity of English administration is one ex'planation of the success of the city, as well as of the high order of men who enter the council. This, too, in part, explains the alertness of the voter. He understands the charter. He knows who is responsi- ble. There is no confusion of powers, no conflict of HOW THE BRITISH CITY IS GOVERNED 297 authority between departments, for there is but one. It is easy to understand the procedure, to follow the reports of council meetings in the newspapers, where they are fully reported. The voter probably knows his councilman personally. He certainly knows how he votes on all important questions. Nor is there any complicated machinery of nom- ination or election. Any man or woman can be nominated by the filing of a petition signed by two proposers and eight seconders. Nothing more is re- quired to place a nominee on the ballot. There are no caucuses or conventions, no primaries or delegates between the voter and his agent. There is no boss to be seen, no campaign contributions to be made. The only pledges of the candidate are to his constit- uents in the ward. The ballot is as short as it can be made. It is simplicity itself. When the voter goes to the polls at a municipal election in November, he receives a ballot printed on plain white paper which contains the name, residence, and occupation of each candi- date. There is no reference to his party affiliations, for the party is not recognized by law in municipal elections. Names are printed in alphabetical order, and after each name a blank space is provided in which the voter indicates his choice. This ease of nomination has not produced a large number of candidates, as would be expected. There are never more than three or four candidates, and 298 EUROPEAN CITIES AT WORK usually there are but two. There are no national, State, county, and school tickets upon a long blanket ballot; there are no alien issues which have no pos- sible relation to the city. The only question the voter has to decide is as to whether he wants John Doe or Richard Roe as his councilman. Members of Parliament are elected at separate elections, and usually only once in four or five years. Local and national elections are divorced, and each campaign is waged on its own merits. The expenses of the election are borne by the municipality, although the ballots are printed by the candidates. England seems to have adopted, quite as a matter of course, an easy means for enabling men to enter politics and to remain there if they prove efficient. At the same time the voter can readily change his representative if he has proved unsatisfactory. Municipal campaigns are often hotly contested, quite generally along party lines; for, while the ma- chinery encourages independence, the party organi- zations usually select the candidates and aid them in their campaigns. Voters adhere to their parties quite as tenaciously as they do in the United States and the independent candidate has relatively little chance of success. Quite frequently there is no contest in a ward for years. Wherever the party is overwhelmingly strong or where a councillor has been satisfactory to his constituents he is left undisturbed in his seat. It HOW THE BRITISH CITY IS GOVERNED 299 has happened that all the candidates at a city elec- tion have been returned without contest, while in the election of 1899 less than half the seats in one hundred and three boroughs and urban districts were contested. In thirteen of the municipalities there was not a single councilmanic contest. The council usually organizes along party lines. The mayor is chosen from the dominant party, as are the town clerk and a majority of the aldermen. The issues which divide councillors are much the same as those which divide members of Parliament and are grouped around economic and industrial policies. Members of the Conservative, or Tory party are generally opposed to any extension of municipal trad- ing and are likely to be found protecting the inter- ests of the landed classes. The Liberal party is es- sentially the party of business men whose interests are only incidentally landed. The Socialist or La- bor group is committed to the extension of munic- ipal activities, but only in a few of the boroughs around London has it become the dominant party. Contests within the council relate to the administra- tion of the street railways, the gas, and other activi- ties, to housing proposals and the feeding of school- children. Labor members demand a reduction in the rates and charges for public services, while the Liberal and Conservative members are inclined to operate the municipal undertakings so as to relieve the rates and taxes. 300 EUROPEAN CITIES AT WORK The British city is really governed by council committees. They are both legislative and execu- tive departments. Each committee is a council in miniature, which directs the department committed to its care. In the larger cities there are from twelve to twenty standing committees, each of which is further subdivided into subcommittees to which are assigned special branches of the work. The sub- committees report to the main committee, and the main committee reports to the whole council. The mayor is an ex-officio member of all committees, al- though he rarely takes part in their deliberations. Committees are not appointed by the mayor, but are made up by the council itself. Immediately fol- lowing the election a committee of committees is created, which reports suggested assignments. These recommendations are then referred to the council for approval. Ordinarily the personnel of the com- mittees continues with little change from year to year. It is not uncommon to find men who have served ten, fifteen, or even twenty years on a given committee. Places on important committees are much sought after as a means of making a reputation or for po- litical advancement. When a vacancy occurs in a chairmanship the deputy is usually advanced to the post, just as members of the council pass to the post of mayor. To be chairman of an important com- mittee is an honor that is greatly prized. This is HOW THE BRITISH CITY IS GOVERNED 301 particularly true of those committees which control the street railways, gas and electric lighting under- takings, which offer spectacular opportunities for economies, earnings, and service. To be a member of one of these committees, with a budget running into millions of dollars annually, is like being on the board of directors of a railroad corporation in this coimtry. And it is sought for for the same reason. The chairman is a kind of little mayor, selected by the committee on its organization. He presides over its meetings, and if he is interested in its work be- comes an ex-offi,cio director of the department. The committee employs the director and staff. It fixes wages, salaries, and the details of management. It prepares and spends its annual budget. All of its actions are, however, referred to the council for ap- proval. At stated intervals a voluminous report is made, usually at the end of the year, which is dis- cussed by the council as a whole. The managers of the various departments are usu- ally trained men, frequently chosen by competition from other cities, or advanced from one post to an- other much as are the managers of a private corpora- tion. They are paid good salaries, and are rarely changed for political reasons. Employment is per- manent, as it is in Germany. A professional class of expert officials has thus been produced which makes a business of municipal administration. The Brit- ish city expert differs from the German burgomaster 302 EUROPEAN CITIES AT WORK in being the director of a single department rather than in being one of the managers of the city. The committee is the central feature of the British city. To it all matters are referred. From it almost all initiative comes. The great increase in munici- pal functions which has taken place in recent years has made it impossible for the council as a whole to familiarize itself ^dth the details of administration in each department or to have an intelligent opinion about its needs. In consequence the recormnenda- tions of the committee are usually approved by the council as a whole, and in most of the details of man- agement it acts as though it were an independent body. The position of mayor or provost — as the mayor is called in Scotland — is a social and titular rather than executive post. The mayor is chosen by the council each year upon its organization rather than by the people directly. He is the chairman of the council, and his selection is often determined by seniority of service. The council system of admin- istration ofTers no place for a strong mayor, as do the German and American systems, for all of the de- tails of administration are lodged with the council conmiittees. The public does not hold the execu- tive responsible for the success or failure of city administration, and rarely does he promote a policy or stand for a programme. Almost the only notable exception is that of Mr. Joseph Chamberlain, who was Mayor of Birmingham from 1873 to 1876. HOW THE BRITISH CITY IS GOVERNED 303 Despite the lack of power of the mayor, his social activities are very absorbing. He entertains the city's guests, opens hospitals and public buildings, and presides on all public occasions. The town hall is the centre of many activities, of receptions, balls, and other functions, at which the mayor is the host. He is called upon to adjust labor disputes and to represent the city on formal occasions. If the King honors the city with a visit he has the distinction of entertaining him. These, however, are his extra- legal powers. By virtue of his office he is a member of all committees, although he rarely attends them. He has no veto power over legislation, and makes no important appointments. He is a justice of the peace and sits as magistrate in the disposition of petty cases. In spite of this lack of power, the office of mayor is the goal of the business man's ambition. For this distinction he serves in the council. Toward this honor he looks forward as the end of an honorable career. In anticipation of the burdens it entails upon his purse, he saves. For in the larger cities the mayor must be a man of wealth. And if his fondest hopes are realized, retirement from office is crowned by a knighthood from the King. This is the apothe- osis of the British tradesman, the shopkeeper, and the manufacturer, who form the ruling class in the cities. The office involves heavy expense to the mayor's 304 EUROPEAN CITIES AT WORK private purse, for he receives no salary. He is, how- ever, relieved of a portion of the burden which his many social obligations entail by an appropriation by the council for the puipose. In some of the larger cities, like London, Liverpool, and Dublin, he has a mansion house as a town residence. Some cit- ies also maintain a coach and pair for his use. On official occasions he is adorned with robes and jewels, and cuts a distinguished figure before the community. For some years Dublin appropriated $18,000 a year for its lord mayor, but this appropriation was re- cently reduced to $8,000. Bristol allows him $5,000 and $600 more for a private secretary. Edinburgh appropriates $5,000 for its lord provost, while Brad- ford, Leeds, Belfast, and Hull make no standing appropriation, but provide for the expenses of enter- tainment on special occasions. But no matter what the appropriation may be, it is rarely sufficient to meet the expenses incident to the proper maintenance of the office. In spite of this fact the mayoralty commands the talent of the community and excites the ambition of successful business men. The British official who corresponds most closely to the German burgomaster, and in some respects to the American mayor, is the town clerk. The office is a distinguished one and requires a high order of ability. The clerk is elected by the council; he re- ceives a generous salary, holds office during good behavior, and makes a profession of his calling. He HOW THE BRITISH CITY IS GOVERNED 305 is usually a lawyer and must be familiar with the many special acts relating to the city and be able to appear before parliamentary committees for the promotion of local legislation. The clerk of Glasgow receives $10,000 a year. Some years ago when a vacancy occurred in that city, the council advertised for a clerk just as the German city advertises for members of its magis- trat. Partisan questions usually influence the selec- tion, but not to the neglect of ability. The clerk is in a sense the guiding spirit of the British city. To him the council turns for advice upon all kinds of municipal questions. He is the secretary of all committees, and the custodian of the city's records. He reports to the local government board and the board of trade, and prepares the offi- cial transactions of the municipality. He attends the meetings of the council as well as of important com- mittees. He prepares reports and performs such other duties as the council may provide. In the larger towns he has a number of assistants who are trained like himself. The town clerk, together with permanent salaried heads of departments, constitutes the expert element in British city administration. There is no such thing as the spoils system in the British city, nor are there any civil service laws as there are with us. Public opinion would not tolerate the use of public office for the organization of a party machine or the payment of personal debts. Merit 306 EUROPEAN CITIES AT WORK is recognized in all departments, and permanency of tenure is assured, even among day laborers. Nor has the extension of municipal trading, with the thousands of employees which it has added to the pay-roll, weakened the traditions or the sanctity of pubHc office. It is quite possible that municipal trading has strengthened the merit system by reason of the bigness of the city and the importance of its activities. The introduction of the spoils system would dislocate so many services that it would arouse an irresistible protest. There has been some fear that the increase in the number of employees might lead to the coercion of the council by organized labor, but this fear has never been realized, partly because the city pays a higher standard of wages and treats its employees better than do the private employers, and partly because public opinion would quickly re- sent any such attempt. The British city is honest; of that there is no doubt. There have been instances of favoritism in awarding contracts by the smaller communities, but these have been ruthlessly uncovered. A few in- stances have also come to light in which members of councils were stockholders in corporations or were otherwise interested in contracts from the city. In Manchester, where an alderman had a slight interest as stockholder in a company which secured an award, even though the award was to the lowest and best bidder, the alderman was forced to resign his office. A Back Garden in Port Sunlight, Garden Village. HOW THE BRITISH CITY IS GOVERNED 307 Instances of this kind, however, are rare. None of the evils so freely predicted as inherent in municipal ownership have followed the municipalization of the pubHc service corporations. There has been no graft, no machine, no spoils. Rather the reverse has been true. The importance of the city's activities has in- creased the sense of responsibility on the part of the public and the press. It has brought the city into close and intimate touch with all the citizens, who are jealous of the services rendered, of the earnings and the success of the undertaking. The British city is also eflBcient. It has not the big vision of the German city nor the generosity of our own. The system of taxation creates a cheese- paring policy on the part of the council, and resent- ment on the part of the community of any under- taking which increases the burdens of taxes. Nor has the city the co-operation of the university and of science as it has in Germany, where every municipal problem is the subject of exhaustive study and a voluminous literature. Economy is the prevailing note in administration, and expenditures are scruti- nized when made for anything save obviously nec- essary purposes. The fear of the taxpayer is present in every councilman's breast. This checks much needed expenditure for schools, parks, playgrounds, and those social activities that have developed so rapidly in this country and Germany. Councilmen, too, come from a different class than 308 EUROPEAN CITIES AT WORK in Germany. They are for the most part tradesmen, small shopkeepers, self-made men of limited educa- tion and imagination. Rarely do the leism-e classes or the aristocracy seek municipal office. They do not mix in city affairs, but live almost exclusively in the country. But there is a fine earnestness about city administration, and conscientious devotion to public work. Council meetings are well attended, and the discussions are very animated. Members of the council as well as the permanent officials are highly respected in their communities. In recent years labor candidates have been finding their way into councils. They have not obtained control in any of the large cities, but they do exert a stimulat- ing influence on public opinion. There has been no suggestion that administration has suffered, or that honesty and efficiency have in any way depreciated, by their coming. CHAPTER XVIII THE EXPLANATION OF THE BRITISH CITY We can only understand the cities of Great Britain when we understand the class which rules the nation of which they are a part. This is because the city has no life of its own. It is not independent; it is the creature of Parliament in Great Britain, just as it is the creature of the state legislature in America. In both countries it has only such powers, only such life, as the legislature permits it to enjoy. In this respect the modern city differs from those of ancient and mediaeval times. Then the city was free, free in the sense that Athens, Corinth, Syracuse, and Rome were free; free as were the city states of Ham- burg, Bremen, Frankfort, and Liibeck. Present-day cities, however, are political wards. Their life is minutely fixed for them by state laws. This more than anything else distinguishes the twentieth-cen- tury city from the cities of antiquity. And until we appreciate this fact, and all that it imphes; until we know the laws of the state and something of the class which makes these laws; until we fathom the economic interests that control legis- lative bodies, we cannot understand the city at aU. 309 310 EUROPEAN CITIES AT WORK Even the psychology of the people is traceable to economic rather than to racial influences; it is traceable to economic influences which in turn are traceable to laws which create the environment in which people not only live but think as well. Students of the city have failed to realize this fact ; they have failed to see how completely the city is moulded by laws in whose making it has no part. Yet the attitude of mind of the people, their love or indifference, the psychology of the voter, is the re- flection of the legal status which the cities enjoy. The physical appearance of the city is a product of the same antecedent legal conditions. It is beauti- ful or ugly; it is comfortable or the reverse; it is healthful or unsanitary — all these local conditions re- late back to the state itself. They are consequences of the class interests which dominate Parliament, diets, and legislatures. And if the city is the prey of privileged interests, if it is denied the power to own or regulate the physical basis of its life, it will reflect the license of private property, as it does in England and America. The British city has little liberty. It enjoys none of the freedom of the German or Italian city. In many ways it is far less free than are our own. There is no ripper legislation in Great Britain, no changing of charters for partisan reasons or at the behest of some powerful boss or corporation behind the boss. This is unknown and inconceivable. And the city EXPLANATION OF THE BRITISH CITY 311 has substantial autonomy in police and sanitary matters. There has been no change in the form of municipal government for three-quarters of a cen- tury, for the Municipal Corporations Act of 1835, which provided a uniform charter for all municipal corporations, has remained substantially unchanged since that time. And because Great Britain is free from ripper legislation and legislative interference with the form of government, we have assumed that the city enjoys home rule and substantial self- government. But nothing is farther from the truth. Cities have far less power to control the things which lie at the heart of their life than do our own cities, crippled as they are by the jealousy of state legis- latures and of powerful business interests. The British city has been treated by Parliament as a feudal possession, as though it were still the property of the landed aristocracy, as it was in feudal times. Legislation affecting cities has been enacted with an eye to the creation and preservation of pri- vate rights, rather than for the development of a free community. Parliament has thought but little of the claims of the city. It has thought of the prop- erty of its members, which has been safeguarded in every possible way. During the nineteenth century great cities came into existence on the landed estates, into which the country is still divided, for to this day the feudal aristocracy, which dominates the House of Lords, 312 EUROPEAN CITIES AT WORK and is ascendant in the House of Commons as well, retains title to nearly all the land of Great Britain, and collects ground rents from the great majority of the British people. City dwellers, rich and poor alike, are tenants — ground tenants. They do not own the land on which their houses, factories, or office build- ings have been erected. They are like the tenants of the Astor estate in New York or the ground ten- ants of Baltimore and Philadelphia. The land is still owned by the descendants of the families that owned it when the country was almost exclusively agricult- ural. It is this that has made the aristocracy of Great Britain so rich and all the rest of the nation so poor. It is the universal system of land monopoly and the political control of the land-owning class that explain the British city, for the powers which the cities enjoy have been granted with a jealous eye to the rights or claims of the landed classes. The extent of land monopoly is almost incredible. One-fourth of the land of the United Kingdom is owned by 1,200 persons, another fourth is held by 6,200 owners, while the remaining one-half is dis- tributed between 312,150 persons. There are twelve landlords who own four and one-half million acres between them. The land underlying London, with its 7,000,000 people, is owned in large part by nine estates. The city of Huddersfield, with its 95,000 people, is owned by another noble lord; so are the cities of Sheffield and Bury; so are Burton-on-Trent EXPLANATION OF THE BRITISH CITY 313 and Devenport. City after city is built upon the land of one or more great owners, whose rent-rolls have reached colossal proportions through no efforts of their own. The lands of the aristocracy are entailed or pro- tected from alienation by settlements. Owners can- not sell their estates even if they would. It is the universal custom to lease land to tenants with the provision in the contract that all the improvements made by the tenant shall return to the landlord without compensation on the expiration of the lease. By this process the landed aristocracy gradually ac- quires all of the improvements on the land, and by periodical reappraisal of the leases they increase the burden of rent which the producing classes pay. Not only is this true, but wherever possible the landed aristocracy in Parliament has converted mere licenses into vested interests that can only be taken away or acquired by the public on the payment of heavy damages. Privileges without number have been so created. Markets are rights appurtenant to land. If the city desires to open a market, it is re- quired to pay not for the land alone, but for the right to maintain a market as well. For cities have no general right of eminent domain or compulsory pur- chase, as they have with us. They have to negotiate with the land-owner, and to acquire the land on his terms, and then go to the same landlord and his associates in Parliament to secure the right to enter 314 EUROPEAN CITIES AT WORK on the enterprise. All London with its 7,000,000 people is dependent upon Covent Garden Market, owned by the family of Bedford, from which the present duke enjoys a princely revenue; and so pow- erful are the present owners that the London County Council has never been able to secure the right to open a market of its own even on the land which it already possesses. Docks, too, are monopoly privileges which can only be acquired on such terms as the owners exact. And the right to own the docks has to be first se- cured by the city from the class which owns the land to be acquired for the purpose. Even the right to maintain a public-house or saloon is a landed privilege which can only be taken away by the pay- ment to the land-owner of the capitalized value of the rental he has received from the public-house keeper for its use for that purpose. The measure of damages is not the injury suffered by the saloon- keeper; it is rather the capitalized value of monopoly rents which the owner of the land has been able to collect. Cities have to pay extortionate prices for the right to lay water-mains to distant water-supplies. They cannot build until the tribute which the land-owners demand has been satisfied. Nor can they condemn slums and tenements; they can only raze them on payment of the capitalized value of their congested rentals, rentals which have been artificially enhanced EXPLANATION OF THE BRITISH CITY 315 by overcrowding encouraged by the owner in antici- pation of such purchase by the community. Street- railway, gas, and water undertakings can only be ac- quired in the same way on the payment of their franchise value. The class which rules in Parliament owns all these agencies which lie so close to the life of the people. And the noble peers at Westminster have only permitted the cities to regulate or to buy them on such terms as the owners themselves dic- tated. The cost of this class control of the cities is colossal. It is seen in the indebtedness of the towns, in the capitalization of the steam railways, in the burdens imposed on municipal enterprises. Most of all, it is seen in the terrible suffering of the people, in the poverty of the cities, in the depopulation of the countryside, for these conditions are traceable to the privileges created by those who own and who at the same time rule the nation. This is the economic foundation of the British city. It is the product of class rule. The House of Lords is almost exclusively a landed body. Its power was recently limited by the abolition of its veto on the budget and its suspension on other legis- lation. But the landed classes are still powerful in the House of Commons. They control the Conser- vative party. They are powerful in the Liberal party. But far more important than their present power are the laws adopted during preceding cen- 316 EUROPEAN CITIES AT WORK tunes which protect their privileges in every possi- ble way. There are a thousand restraints on munici- pal initiative, hundreds of laws, customs, and usages that suppress freedom. Great Britain had no day of feudal renunciation, as had France during the Revolution. It had no Von Stein and Hardenburg, as had Germany, to repeal the old abuses. At no time has democracy been able to repeal the multi- tude of class laws which were largely swept away in Europe under the influences of the French Revolu- tion. Costly as are the examples of class rule referred to, the costliest of all is the system of local taxation which the landlords in Parliament have imposed on the cities; a system under which all of the local taxes have been shifted onto the backs of the ten- ant. Incredible as it may seem, land as land pays no direct taxes for local purposes at all. The land has not been assessed for taxation since 1692, when Great Britain was an agricultural country and Lon- don was httle more than a village. The landlords have never permitted a revaluation to be made or their taxes to be increased until the budget of 1909 was adopted by a recent Liberal ministry. As stated elsewhere, all local rates or taxes are paid by the tenant. Whereas we ascertain the sell- ing value of real property, and upon this valuation assess the local rate, which ranges from 1 to 2 per cent., in Great Britain the rent actually paid by the EXPLANATION OF THE BRITISH CITY 317 tenant is ascertained, and then the tenant is com- pelled to pay an additional sum as taxes. His taxes, or rates, are determined by the amount of his rent. If his rent is $500 a year, he pays from $150 to $250 more in taxes; and if the property is not occupied, it pays no taxes at all, for there is no one from whom they can be collected. If it is unimproved or is not used, it is tax-free. It may be in the heart of the business district and be worth millions of dollars, but if no rent is received for its use it pays no tax. It is against this injustice that five hundred local communities have organized to promote a measure in Parliament for permission to substitute the Ameri- can system of taxation, based upon capital or selling rather than upon rental values. But the landlords have repeatedly thrown out the bills, for tax ex- emption is the most valuable privilege which they enjoy. By this simple device they relieve them- selves from taxes, which, if assessed as they are in America, would amount to approximately $200,000,- 000 a year. That is what the landed aristocracy would pay if their land were taxed as it is in this country. New York City alone collects approxi- mately $80,000,000 a year from land values, exclu- sive of the taxes on improvements. The system of local taxation explains the poverty of the people and the wretched housing conditions which everywhere prevail. It also explains the ap- pearance of the city. For the exemption of land from 318 EUROPEAN CITIES AT WORK taxation enables the owner to keep it out of use; this in turn congests the city within the smallest possible limits. It increases rents through the mo- nopoly holding of the land, and this, together with the bad houses that are built, explains the tenement and the slum. In consequence, Great Britain is a land speculator's paradise. The owner is under no necessity to im- prove his property or to dispose of his holdings. He can hold them out of use for an indefinite time. Congestion follows as a matter of course, for building sites are held until they are ripe for tenements. Population is kept closely confined until it can be re- strained no longer, and then when it overflows it passes on to land as prohibitive in price as that from which it was crowded. This is why British cities are built close up to undeveloped agricultural land; this is why tenements may be seen close packed upon the land with hundreds of acres of open coun- try all about them, tenements which are almost as crowded as those in the centre of the city. There is no pressure on the owner to improve, for he is able to realize the last penny in the pound by holding his property until it is absolutely needed for building. Parliament exercises its power over the city and protects the interests of the ruling class in many other ways. Cities, it is true, are generally per- mitted to enter on industrial undertakings that are not too novel or too hazardous. They have little EXPLANATION OF THE BRITISH CITY 319 difficulty in securing power to acquire a street rail- way or a gas plant, to build model houses or tene- ments. But all these things have to be authorized by a special act. They are not enjoyed as a matter of right. Every new bond issue, every new project, has to come before Parliament for approval. In- vestigations are first made by the local government board, which makes a report on the subject, after which Parliament legislates. And it is through the conditions imposed on the project that the privileged classes exercise their control and exact their tribute. A slum clearance is authorized only when the land- lords in Parliament are assured that the owners' esti- mate of damage will be satisfied. Docks can only be built with the permission of the same class and on its terms. The acquisition of new sources of supply for water plants, the regulation of the liquor traffic, the acquisition of markets — all these must be submitted to the owners of the property affected in Parliament before approval is given. This is the way privilege protects its interests. And the laws enter into the greatest particularity as to the way things shall be done, the amount of money that shall be spent, and the method employed in comput- ing damages. In this way the city is supervised by Parliament not for its own good, but for the good of the class which is supreme in politics. The special acts relating to a large city fill half a dozen volumes. The time of Parliament is consumed 320 EUROPEAN CITIES AT WORK with private acts promoted by municipal authorities for the enlargement of their powers. Private acts are initiated by the town council, which directs that a bill be prepared for the purpose. The measure is then sent to the member of Parliament who repre- sents the district. All of the interested parties are notified in order that hearings may be had by the committee to which the measure has been referred. And if the bill involves the expenditure of money, it must be submitted to the rate-payers for approval. Municipal authorities can only borrow money for the extension of their street-railway systems, for change in the method of traction, for the carrying of parcels, or the sale of such accessories as gas- stoves and electric equipment, with the slow and tedious approval of Parliament. Such powers as the American city enjoys as a matter of course in condemnation proceedings, special assessments, the issuance of bonds, the management of water under- takings, the building of docks, or the opening of markets do not exist in Great Britain. And it is these activities which control a city's life. They are far more important to the comfort and convenience and health of the community than are the forms of the charter, upon which we place so much emphasis. Special legislation, too, is very costly. Pariiamen- tary barristers, who belong to the privileged classes, must be employed to promote each measure. Ex- pert witnesses must be secured. A parliamentary EXPLANATION OF THE BRITISH CITY 321 report shows that during the six years from 1892 to 1898 the local authorities of Great Britain spent $3,490,000 to secure new powers or to protect them- selves from private bills introduced by special in- terests which were opposed by the cities. The London County Council spent $750,000 to prevent the passage of a franchise grant for an electric light and power monopoly. This sum was used for legitimate purposes in the payment of parhamen- tary agents and experts in the controversy over the bill. Private and local bill legislation is so costly that it is impossible to correct many minor abuses or to secure affirmative legislation for many activi- ties that should be enjoyed as a matter of course. The city is also subject to supervision by the local government board and the board of trade, which are cabinet portfolios, like the interior department of Prussia. The local government board sanctions and supervises all loans. It investigates as to the advisability of any new project. The health of the city is supervised by the state authorities on the assumption that the city is an integral part of the nation. The board has control of poor-law admin- istration and the board of guardians. In England and Wales it audits the accounts of local authorities by accountants who go from city to city to see whether any irregiilarity has occurred or any funds have been spent in violation of law. The town planning act of 1909 was intrusted to the local 322 EUROPEAN CITIES AT WORK government board, which passes upon all proposals for the development of suburban areas and the pro- motion of health and sanitary arrangements. There are no statutory debt limits, as in America. A municipal corporation may borrow in any amount that Parliament or the central authorities permit. But it cannot borrow a penny without this assent. Orders sanctioning loans carefully prescribe the rate of interest to be paid and the provisions for the repa3mient of the debt. Nor does the city grant franchises to public util- ity corporations. These, too, are made by Parlia- ment by special acts which impose the terms and conditions for the use of the city streets. The city is consulted in these grants, but it has no power to make them. It would be difficult to exaggerate or even enu- merate the evils which flow from this control of the city by Parliament, a control which is in effect lodged in the hands of those who own the things which most vitally affect the city's life. Just as the American city is cramped and confined by class legislation, in- spired for the most part by public service corpora- tions, railways, and land speculators, so the British city is in chains to the landed aristocracy, which re- fuses to endow it with home rule, and which watch- fully supervises every grant of power to insure that its own property and privileges will be protected. In possibly no country in the world is privilege more EXPLANATION OF THE BRITISH CITY 323 absolute in its ascendency or more costly in its con- trol than in the cities of Great Britain, whose achieve- ments have been made in spite of, rather than in consequence of, the aid and co-operation of the state. But the cost of this class control does not end here. This supervision over the city, but most of all the system of taxation and land monopoly which prevails, explain the physical appearance of the city; they explain its lack of beauty and charm. These, too, explain the meanness of city architecture, and the failure of the British city to grow as have the far more beautiful cities of the Continent. For the British city is ugly. There are but few exceptions. Parts of Edinburgh and Dublin are beautiful. So are Oxford, Cambridge, and Chester, and the cathedral towns. But they are old seats of learning or religion which the landed classes love as they do their country estates. They are part of their class traditions. But this almost exhausts the list of beautiful cities. The great industrial towns, in which one-half of the British people dwell, are the ugliest cities of the world. They have none of the charm that makes men love cities. Manchester, Sheffield, Leeds, Liverpool, Bradford, Belfast, Bir- mingham, Glasgow, there is little in any of them to relieve the universal monotony of street and archi- tecture. Public and private architecture, too, is bad. 324 EUROPEAN CITIES AT WORK There are few fine buildings, the parks are inade- quate, there is little provision for recreation and pleasure. Miles of brick and stone cottages, all much alike, line the streets. There is little of that city sense so universal in Germany. Architecture in Great Britain has never found expression in the city. It has never awakened the ambition of the artist. Nor has the town house or the business block. No city in Great Britain has done what Budapest has done, which city boldly re- built itself to express the pride and ambition of the nation. None of the smaller towns are built as are Diisseldorf, Munich, Frankfort, or a score of other German cities. The British city is an expression of the license of the manufacturing classes, cramped and confined by the land laws and the system of taxation which prevails. The appearance of the British city is traceable to the fact that there is no pressure behind the land- owner to improve his land, while the tenant has no incentive to do so. For the improvements all pass to the landlord without compensation on the expira- tion of the lease and must be made as the landlord dictates. Every incentive to fine buildings or the expression of private taste is lacking under the sys- tem of land tenure and taxation which prevails. In addition to this, the aristocracy is a country aris- tocracy. Its life is not a city life, as it is in Germany and America. The aristocracy lives in the country EXPLANATION OF THE BRITISH CITY 325 from its rents, and only goes to London for the season. It has a contempt for trade, and has never mixed with commerce. The city has never inspired the architect or the artist, as it has in other countries, for the art, architecture, and education of a nation always reflect the interests of the ruling class. Because of this divorce of the landed aristocracy from the city Parliament has always treated it as an alien thing, much as it treated Ireland. The church has a more important place in its affections, as have the game laws. The city does not command the thought of the nation, the interest of the press, or of literature. Even to-day, with the city the most portentous problem of the empire, the litera- ture of the city is very meagre. Not more than a half-dozen books of recognized authority on the sub- ject have been written by Englishmen. There are few exhaustive statistical studies, year-books, and scholarly monographs on municipal problems, of which there is such a quantity in Germany. Nor is municipal administration studied in the colleges, as it is with us. The city is neglected by the univer- sity, by statesmen, and by publicists. It does not interest the ruling class or the public opinion made by that class. The cities of Great Britain differ from the cities of America and Germany, not so much in racial qualities as in their economic foundations, and it is these economic foundations which mould the mind 326 EUROPEAN CITIES AT WORK of the voter. The local taxes are very heavy; they amount to from one-fourth to one-half of the amount of the tenant's rent. And the voter watches every new undertaking, every new suggestion, with the fear of increased taxes always in his mind. Coun- c'ilmen reflect this point of view, for they, too, are rate-payers. They, too, think in terms of taxes. The British city thinks through its purse. Its ideals are limited by this fact. This explains the cheese- paring economies of the council; it explains its un- willingness to spend for anything save imperative needs. The movement for municipal ownership sprang largely from the desire of the rate-payers to relieve themselves from taxation by the profits of these undertakings. A second explanation of the psychology of the voter is the extent of municipal trading. The public utility corporations touch the community in count- less ways. The tramways are under daily inspec- tion. They affect the comfort of the community in so many ways. Through municipal ownership the citizen acquires a sense of the dignity of the city. He is a stockholder as well as a voter. He can- not afford to be indifferent to municipal elections; cannot afford to permit incompetent or dishonest men to be chosen. The British voter thinks in economic rather than in personal terms. This ex- plains his alertness, his intolerance, and his insistence on honesty and eflSciency. EXPLANATION OF THE BRITISH CITY 327 These are the influences that make the British city what it is. It is moulded by class laws enacted by Parliament for the protection of the pecuniary interests of its members. The landed classes legis- late for themselves just as do the franchise-owners, railway magnates, tariff interests, and mine-owners in America. And they sacrifice the city in every possible way. They have made it what it is. CHAPTER XIX MUNICIPAL OWNERSHIP OF THE GAS SUPPLY The British city is far more limited in its activi- ties than are the cities of Germany. It has neither the freedom nor the social vision of the cities of the latter country. Municipal trading, as it is called, is almost confined to street railways, gas, water, and electric-lighting undertakings, to docks, markets, and pubhc baths. It has not been extended to pawn- shops and savings institutions, to land speculation, to the many institutions of social service which char- acterize the more progressive cities of Germany. There have been many housing experiments, but they have not been as intelligently planned as those of the latter country, nor have they been as successful. They have been directly built by the city, but have been handicapped by a heavy initial cost for the slum clearances which they involved. Ten years ago municipal trading was the most dis- cussed question in Great Britain. The papers were full of it. There were innumerable pamphlets upon it. But trading is no longer a debated question. It is the nearly universal policy of all large cities and of most of the smaller ones. There is abundant in- 328 MUNICIPAL OWNERSHIP OF GAS SUPPLY 329 terest in the subject, but little controversy over it. The cities have won their case by the logic of finan- cial success. They have fortified their position by good service, by cheap rates, and by the introduc- tion of economies. Nowhere is there any suggestion to return to private management. Water plants have been widely owned by the cities from the verj^ beginning, as they are with us. Two hundred and ninety-eight local authorities own gas plants, and this includes most of the large cities with the ex- ception of London, Liverpool, and Sheffield. The street-railway and electric-lighting controversy has been the most acrimonious, because of the organized nature of the electrical business and the universal movement for its ownership. But even this con- troversy has died down. It had little effect on the spread of the movement. Gas has not been as generally municipalized as have the street-railway, electric-lighting, and water undertakings. The water supply has always been looked upon as a proper field for public ownership, while the electric-lighting plants and street railways were taken over at the time of the introduction of electricity or during the period of transition from horse to electric traction. City councils saw an op- portunity to make money from these enterprises. In addition the private gas companies were en- trenched before the movement for public ownership had gained much headway. Under the rules of 330 EUROPEAN CITIES AT WORK valuation provided by Parliament for purchase the cities are required to pay generously for the fran- chise values of the companies. This, along with the idea that electricity would eventually supplant gas, has checked the municipalization of the supply. The following is a condensed statement of the public and private gas undertakings in the United Kingdom for the year 1910-11, taken from the Municipal Y ear-Book, 1912 (page 575), and com- piled from official returns of local authorities and private companies: Local Authorities Private Companies Number of plants owned by. Capital invested 298 $151,002,560 $54,148,790 $39,512,255 72.86 per cent. $14,636,535 9^ per cent. 2,666,146 60 cents 511 $460,965,955 $102,232,190 $76,544,640 74.87 per cent. $25,687,550 5f/i per cent. 3,751,703 66 cents Total receipts Operating expenses Ratio of expense to gross earnings Net revenue . . . . . Return on capital invested Number of consumers Approximate average charge for gas per 1,000 cubic feet The total receipts of the public plants are about one-half the receipts of the private companies, while the number of public plants is somewhat above this percentage. There is no evidence that the public plants are carelessly managed or inefficient. Rather the reverse is true. Municipal plants are operated MUNICIPAL OWNERSHIP OF GAS SUPPLY 331 at a lower percentage of their earnings than are the private ones, the percentage of the former being 72.96, while in the private plants it is 74.87. This is in spite of the fact that the public plants almost al- ways pay higher wages, give shorter hours, and allow holidays and other privileges not accorded by the private companies. The pubHc plants, too, have only one-fourth of the total capital invested in the business, but serve over 40 per cent, of the total consumers, showing that the cities reach a larger number of potential consumers than do the com- panies. This is done by encouraging the use of gas by penny-in-the-slot meters, by the renting and placing of gas-stoves and appliances, and the stimu- lation of its use in the interest of cleanliness and convenience. Cities realize the value of light as a civilizing agency, and encourage it in every possible way. In addition the local authorities earn a larger re- turn on the capital invested than do the companies, showing again that councilmen are good business men, better even than the directors of private com- panies. In 1910-11 the public undertakings earned 9H per cent, on their capital, while the companies earned only 5H per cent. This was the return after the payment of all statutory charges for deprecia- tion and maintenance as well as taxes. Finally, the public plants sold gas at an average of 60 cents per 1,000 cubic feet, while the private companies charged 332 EUROPEAN CITIES AT WORK an average of 66 cents, or 10 per cent, higher than the municipal authorities. Many of the cities sell gas below this figure, as ap- pears from the following table, the rates for fuel being CiTIEB Belfast Birmingham Bolton Bradford ... Burnley. ... Burton Coventry. . . Halifax Leeds Leicester . . . , Manchester . Nottingham . Oldham.. . . , Rochdale . . , Salford Stockport. . , Net Pbotits $202,000 438,105 148,685 64,675 75,045 70,820 93,160 79,840 90,505 236,635 361,625 245,715 92,400 89,540 167,890 130,960 Price of Gas per 1,000 Cubic Fbet 54 42 to 56 56 50 50 52 to 56 56 50 52 56 58 to 60 52 to 56 46 50 56 60 to 68 cents considerably below the price for lighting. Special prices are also made for factory uses. The municipal undertakings earn large sums in excess of operating costs, which are used to pay off the debt of the plant, for the making of extensions, and for the relief of taxation. The total contribu- tions of all the municipal plants for the latter pur- pose exceed $2,000,000 a year. This is in addition to making provision for the sinking-fund charge to retire the debt, for depreciation and reserve, and for taxes, which the public as well as the private com- MUNICIPAL OWNERSHIP OF GAS SUPPLY 333 panies are required by law to pay. The net profits, together with the charges for gas in the cities, shown in the table on preceding page, are obtained from the Municipal Y ear-Book for the Year 1912, and are taken from the returns to the Board of Trade for the year 1910-11. CHAPTER XX MUNICIPAL TRANSIT IN GREAT BRITAIN Municipal operation of the street railways in Great Britain began with the experiment of the city of Glasgow in 1894. It has since been adopted by one hundred and thirty-six cities and local authori- ties, while forty other local authorities own the tracks but lease the operation to a private com- pany. The success of public operation is now too obvious to be challenged, and practically all classes are united in its support. Almost the only opposi- tion comes from the big electrical enterprises, which are seeking to retain the privileges they now enjoy. Glasgow was the first large city to both own and operate its street railways. It undertook operation after an unsatisfactory experience with a private company which had operated a horse line under a twenty-one year grant. There had been a long con- troversy between the company and its employees, in which the sympathy of the community was with the men. This controversy, together with the in- ability of the council to agree on terms for the renewal of the grant, led the city to municipalize 334 MUNICIPAL TRANSIT IN GREAT BRITAIN 335 the lines. The success was almost immediate, and other cities followed the example. The capital outlay of the tramways of Glasgow now amounts to $17,515,000, and the total receipts for 1911 were $4,747,740. The operating expenses were 56 per cent, of the earnings, or $2,665,895, leaving a profit of $2,081,541, which was distributed as follows: for interest on the indebtedness, $276,- 290; for sinking fund to repay the debt at maturity, $448,970; for depreciation or reserve, $1,356,285; and to the Common Good, a fund used for general municipal purposes, $343,390. The tramways earned 11.88 per cent, on the capital invested, at an average rate of fare of 1.9 cents or less than 40 per cent, of the average fare paid in the United States. They earned $1,699,675 in net profits after paying interest charges and sinking fund, which was contributed to the betterment of the property or to community uses. The zone system prevails in Glasgow, as it does all over Great Britain, on both the public and private lines. There is a halfpenny or one-cent fare for short distances of about half a mile. For the year 1911, 27.86 per cent, of the passengers paid but one cent. Those paying two cents formed 54.85 per cent, of the total number, while the percentage paying three cents was 8.15. 82.71 per cent, of all the pas- sengers paid two cents or less. The one-cent fare stimulates traffic in the centre of the city and is a great convenience. It increases 336 EUROPEAN CITIES AT WORK travel when traffic is light. It is also of great service to working girls and women who go home for their lunches, as do many workingmen. In 1911; 237;967,307 passengers used the tram- ways, and paid $4,747,740 in fares. In America, at the prevailing five-cent fares, these passengers would have paid $11,898,365.1 On the following page is a condensed statement of the operating experiences of the municipal tramways of four cities. The reports are for the year 1911.^ Municipal trading cannot be challenged on its financial showing. Nor can it be claimed that the accounts are inaccurate. Municipal authorities are required to keep their accounts according to stand- ards fixed by the local government board. Annual returns must be made to the board of trade, which is a portfolio of the government, presided over by a member of the cabinet. The reports are published each year and are subject to scrutiny, while the books of the municipality are audited by the central authorities in order that the requirements as to debt repajTnent, depreciation, and reserve may be prop- erly provided for. The extent of public and private ownership in Great Britain, as well as the relative operations of each, are indicated by the following table, taken * For more detailed reports of Glasgow and other British cities, see The Municipal Year-Book, London, which gives complete munici- pal statistics of all the local authorities of Great Britain. » The Municipal Year-Book, 1912, pp. 593, 598, 602. MUNICIPAL TRANSIT IN GREAT BRITAIN 337 ioQ»o"rtio a io ui ui io o ^ re CO CJ -J »+( ,-"1 1-^ /-TS w o LW U-J '^T^ V-/-" ^^ S-4 LW r^ t.^J (J.> ^i.' 1,>I 'i-' ^ €» ^ 10 00 o 05 (n" t>.'' oo" t- oT a^ 10" (m" rH co" i> « Tfi CO CO i> 05 ai t^ f*^ t^ 05 o ca O OOOflOS3"50000 00 lO 0~10 (H rjT . , 05»-H05_0»0 a-^^COC^CCTtiCOj OrrJ^cvfTti i-Tco *^^^^*^, e© e^ ©^ CO «^ ^- * cqi>oOa;io«ci^-*c<)^coGOg i-T t>r ■^" (m" ^ (m" CO ^ *^ i-T *^ r-T r-J ,-H €^ €© CO «^ 00 €© €© .2 I 3 ,i3 ^ _g o ^ 63 S^ "^ a^ o ^ -tf CL • 3 S « ° &, on, p. 131; sanatoriums, p. 133 U Ulm, housing in, p. 168 Unearned increment taxes, pp. 189-207; need of new rev- enues, p. 189; origin of tax, p. 189; Kiaotchau, new harbor in China, development of, p. 190; land tenure, Kiaotchau, p. 191; method of assessment, Prussia, p. 192; effect of new taxes, p. 192; Frankfort, or- dinances of, p. 194; spread of unearned increment tax, p. 195; imperial measure, p. 196; the Lloyd George budget of Great Britain, p. 201; Cana- dian experiences, p. 202; Aus- tralian experiments, p. 203; American proposals, p. 205; land values in New York and Cleveland, p. 205; reforms for unearned increment tax, p. 206 UnemplojTnent insurance, p. 141 Vienna, pp. 31-34 Virchow Hospital, p. 132 Visions, city, Diisseldorf, p. 56; Frankfort, 71 W Wagner, Professor Adolf, p. 192 Wandering workers, provision for, p. 135 Washington, plans of, p. 92 Water communications, Ger- many, p. 6 Water-fronts, Rhine cities, p. 18 Water supply, Mimich, p. 154 Water-ways, improvement of, p. 41; planning of, p. 105; Amer- ica, p. 107. See Town plan- ning Wertzuwachssteuer. See Unearned Increment Tax Widening, city projects, p. 90 Workingmen's railway tickets, p. 183 Working-people, what the Ger- man city does for, pp. 125-142 Zone system, pp. 101, 102 (see Town planning); Diisseldorf, p. 44; Glasgow, p. 335 BOOKS BY FREDERIC C. HOWE PUBLISHED BY CHARLES SCRIBNER'S SONS EUROPEAN CITIES AT WORK i2mo, $1.75 net Dr. Howe, looking upon the development of city administration as the great hope of future civilization, presents in this book a constructive vision of the city of to-morrow. It is the third of his inspiring studies of city life and govern- ment, and as the first, "The City: The Hope of Democracy," presented the structure of cities, so this volume deals rather with the activities of European cities. He places emphasis on the social side of city life, the new art of community living — planning for health and beauty with an allowance for future growth, laying out suburbs like garden cities, building model apartments, founding municipal pawn-shops and savings- banks. THE BRITISH CITY : The Beginnings of Democracy i2mo, $1.50 net " The author views the history of municipal government in England, describes its structure and form. . . , His position is unquestionably sound, and he reflects the spirit of the age and the dominant tendencies and ideas. He has written a vital and significant book." — Chicago Post. "There are few persons interested in municipal questions who will not find it of value." — The Nation. " Fascinating as a good story, packed with reliable infor- mation from cover to cover." — The Chicago Record-Herald. BOOKS BY FREDERIC C. 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