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Operation of public Utilities

VOLUME III

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Municipal and priuate
Operation of Public Utilities

REPORT TO THE
NATIONAL CIVIC FEDERATION

Commission on Public Ownership
and Operation

IN THREE VOLUMES

PART II -VOLUME II
REPORTS OF EXPERTS— UNITED KINGDOM

NEW YORK CITY
NATIONAL Civic FEDERATION, 281 Fourth Avenue

LONDON AGENTS

P. S. KING & SON, Westminster, S. W.
1907

COPTBIGHT 1907
BT THK

NATIONAL Civic FEDERATION

COMMISSION ON PUBLIC OWNERSHIP
AND OPERATION

EXECUTIVE COMMITTEE.

MELVILLE E. INGALLS, Chairman (Chairman Board of Directors,

Big Four Railroad), Cincinnati.
JOHN MITCHELL, First Vice-Chairman (President United Mine

Workers of America), Indianapolis.
JOHN G. AGAR, Second Vice-Chairman (President Eeform Club),

New York City.
EDWARD A. MOFFETT, Secretary (Editor Bricklayer and Mason),

Indianapolis.
ISAAC N. SELIGMAN, Treasurer (J. & W. Seligman & Co.), New

York City.
ALEXANDER H. REVELL (President Chicago Civic Federation),

Chicago.

GEORGE HARVEY (Editor North American Eeview), New York City.
SAMUEL INSULL (President Edison Company), Chicago.
JOHN BANCROFT DEVINS (Editor New York Observer), New York

City.

FREDERICK N. JUDSON (Attorney-at-Law), St. Louis.
CARROLL D. WRIGHT (President Clark College), Worcester, Mass.
HAMILTON HOLT (Editor The Independent), New York City.
D. L. CEASE (Editor Kailroad Trainmen's Journal), Cleveland.
FRANKLIN MAC~VEAGH (Merchant), Chicago.
V. EVERIT MACY (Capitalist), New York City.
GEORGE H. HARRIES (Vice-President Washington Railway and

Electric Company), Washington.
Louis D. BRANDEIS (Attorney-at-Law), Boston.
MARCUS M. MARKS (Manufacturer), New York City.
JAMES O'CONNELL (President International Association of Ma-
chinists), Washington.

LAWRENCE F. ABBOTT (Editor The Outlook), New York City.
ALEXANDER C. HUMPHREYS (President Stevens Institute, Hoboken,

N. J.

J. W. JENKS (Cornell University), Ithaca, N. Y.
JOHN F. TOBIN (President Boot and Shoe Workers' Union),

Boston.
FRANK A. VANDERLIP (Vice-President National City Bank), New

York City.

vlll .NATIONAL CIVIC FEDERATION.

COMMITTEE ON INVESTIGATION.

MELVILLE E. INGALLS, Chairman (Chairman Board of Directors,
Big Four Railroad), Cincinnati.

ALBERT SHAW, Vice-Chairman (Editor Review of Reviews), New
York City.

TALCOTT WILLIAMS (Editorial Writer, the Press), Philadelphia.

W. D. MAHON (President Association Street Railway Employes),
Detroit.

FRANK J. GOODNOW (Columbia University), New York City.

WALTON CLARK (Third Vice-President The United Gas Improve-
ment Company), Philadelphia.

EDWARD W. BEMIS (Superintendent Water Works), Cleveland.

JOHN H. GRAY (University of Minnesota), Minneapolis.

WALTER L. FISHER (Special Traction Counsel for City of Chicago
and ex-President Municipal Voters' League), Chicago.

TIMOTHY HEALY (President International Brotherhood Stationary
Firemen), New York City.

WILLIAM J. CLARK (General Manager Foreign Department, Gen-
eral Electric Company), New York City.

H. B. F. MACFARLAND (President Board of Commissioners, District
of Columbia), Washington.

DANIEL J. KEEFE (President International Longshoremen's Asso-
ciation), Detroit.

FRANK PARSONS (President National Public Ownership League),
Boston.

JOHN R. COMMONS (Wisconsin University), Madison, Wis.

J. W. SULLIVAN (Editor Clothing Trades' Bulletin), New York
City.

F. J. McNuLTY (President International Brotherhood of Electrical
Workers), Washington.

ALBERT E. WINCHESTER (General Superintendent, City of South
Norwalk Electric Works), South Norwalk, Conn.

CHARLES L. EDGAR (President The Edison Electric and Illuminat-
ing Company), Boston.

MILO R. MALTBIE (Member of the Public Service Commission),
New York City.

LEO S. ROWE (University of Pennsylvania), Philadelphia. He
resigned May 21, 1906, and was succeeded by

EDWARD A. MOFFETT, Secretary (Editor Bricklayer and Mason),
Indianapolis, Ind.

COMMITTEES. ix

EXECUTIVE SUB-COMMITTEE ON PLAN AND SCOPE.

Professor FRANK J. GOODNOW, Chairman.
Mr. J. W. SULLIVAN.
Professor EDWARD W. BEMIS.

Dr. MILO E. MALTBIE, Secretary until departure for Europe.
Mr. WALTON CLARK, Secretary after Dr. Maltbie's departure for
Europe.

SUB-COMMITTEE ON FINAL CONCLUSIONS.

Mr. MELVILLE E. INGALLS, Chairman.

Dr. ALBERT SHAW.

Mr. E. A. MOFFETT, Secretary.

SUB-COMMITTEE ON SUMMATION OF EVIDENCE.

Professor EDWARD W. BEMIS.
Mr. WALTON CLARK.
Professor FRANK PARSONS.
Mr. CHARLES L. EDGAR.

Dr. MILO E. MALTBIE acted in Professor Parsons' place dur-
ing his illness.

Mr. J. W. SULLIVAN acted in Mr. Edgar's place during his
absence.

EDITORIAL NOTE

When the investigation was being planned by the Sub-Com-
mittee of Five, the various phases of the question of municipal vs.
private operation of public utilities were grouped into four divi-
sions: One included those relating to the history of the under-
taking, the attitude of the public toward it, the franchises granted,
the methods of public regulation and control, and the statutes and
ordinances in force. The second covered wages, hours, conditions
of labor, etc., the organization of the undertaking and the political
phases of the problem. The third embraced engineering matters,
and the fourth included the financial and accounting factors.

In order that each expert might know exactly what matters
were to be reported upon by him and what were assigned to others,
and in order that no detail should be overlooked, specific questions
were prepared to cover every fact which seemed important or
essential. The members of the committee and others interested
in the subject of municipal ownership were asked to submit ques-
tions and to make suggestions. All were then considered, codified
and arranged in systematic order by a sub-committee. Some
matters were included that later were found not to be important,
but it was thought wise to include too much rather than too little,
to go too far into the details rather than to limit too narrowly the
investigation.

Further, in order that the Commission might have before it all
the available facts germane to the problem, whether called for in
these specific questions or not, the experts were instructed as fol-
lows:

"The purpose of this investigation is to obtain all the essential
facts to enable the Commission to determine the relative superiority of
municipal or private operation of public service industries and the con-
ditions most favorable to efficient management. For this purpose, the
following schedules have been prepared. It is believed that they cover
the essential points upon which data subject to quantitative measures
may be obtained. * * * If any facts should be discovered that are
relevant to the investigation, but which are not called for in the follow-

xii NATIONAL CIVIC FEDERATION.

ing schedules, full memoranda should be made upon separate sheets and
sent to the Committee."

After the specific questions had been decided upon, they were
classified into the four divisions above mentioned and called:
Schedule I — General, Historical and Legislative; Schedule II—
Organization, Labor and Politics; Schedule III — Engineering
Matters; Schedule IV — Finance and Accounting.

These Schedules for the undertakings in the United Kingdom
were then assigned to the following persons :

Schedule I— all undertakings — Dr. Milo R. Maltbie.
Schedule II — all undertakings — Mr. J. W. Sullivan and
Prof. John R. Commons.

Schedule III — gas works — Mr. J. B. Klumpp and Mr.
William Newbigging, of Manchester, Eng.

Schedule III — electric lighting plants — Mr. A. E. Win-
chester and Mr. J. B. Klumpp.

Schedule III — street railways — Mr. Norman McD. Craw-
ford and Mr. J. H. Woodward, of London.

Schedule IV — all undertakings — Mr. R. C. James and Mr.
E. Hartley Turner, of Manchester, Eng.

The duty of the experts was to report the facts in accordance
with the prescribed forms. They were neither asked nor expected
to draw conclusions, nor even to tabulate or arrange the facts, but
to fill out the printed blanks, and to leave the work of analysis and
of drafting conclusions to the members of the Commission or duly
appointed committees. This fact should be kept in mind in read-
ing the following pages, for no attempt has been made in this
volume to analyze the data collected or to put the facts into a
readable report, but merely to transcribe into a form as succinct
as possible the answers given by the experts in the various Schedules
for the United Kingdom. The analyses of these Schedules appear in
Volume I.

The transcription of the schedules for this volume was performed
under the direction of Dr. Milo R. Maltbie. So far as possible the
answers were grouped and tabulated. To further facilitate com-
parisons, the municipal undertakings were given first in the order
of their size, and then the private companies, according to size gen-
erally. Where no answer was given in the schedule, the name of the

undertaking is followed generally by a dash " ." The presence

of dots "...." in the tables means that the inquiry is not applica-
ble, or that there were no data to be given. Where an answer could

EDITORIAL NOTE. xiii

not be obtained, but yet the inquiry is applicable, or where there is
doubt as to the facts, a question mark is used " ? ". Estimates
are preceded or followed by the letter " E."

In order that every possible precaution should be taken to
prevent errors in transcription and proof-reading, and in order that
every expert might examine before publication the facts he had
reported, the printed proof was submitted to him for approval, and
printing was not begun until this proof had been corrected, ap-
proved by him and returned. Of course it is likely that some
errors have crept in, due to human fallibility, but it is to be hoped
they are few.

In addition to the matter printed in this volume, the experts
have submitted many exhibits, including maps, plans, photographs,
printed documents, statutes and bound volumes. It has not been
considered necessary or wise to attempt to reproduce them, as they
constitute a small library by themselves ; but all will be deposited in
the Library of Columbia University, together with the original
Schedules, where they may be consulted.

The undertakings in the United Kingdom selected for investi-
gation by the Committee were as follows:

Municipal Gas Works.
Birmingham — Glasgow — Manchester — Leicester.

Private Gas Companies.

London: The South Metropolitan Gas Company.
Newcastle-upon-Tyne and Gateshead Gas Company.
Sheffield United Gas Light Company.

Municipal Electricity Supply Works.

Manchester — Liverpool — Glasgow — St. Pancras Borough
(London).

Private Electricity Supply Companies.

Newcastle-upon-Tyne Electric Supply Company Limited.
Newcastle and District Electric Lighting Company Limited.
City of London Electric Lighting Company Limited.
Westminster Electric Supply Corporation Limited.
St. James and Pall Mall Electric Light Company Limited.
Central Electric Supply Company Limited.
(The last four are London companies.)

Municipal Tramways.

Glasgow — Manchester — Liverpool — London County Council
(Southern System only).

xlv NATIONAL CIVIC FEDERATION

Private Tramway Companies.
London United Tramways (1901) Limited.
Dublin United Tramways Company (1896) Limited.
Norwich Electric Tramways Company.
Bristol Tramways and Carriage Company Limited.

With one exception, all of these undertakings were examined
and reported upon by the experts. Municipalities and companies
were treated exactly alike and the same forms of reports were used
for both groups. The companies even permitted our experts to make
a physical valuation and to examine fully their financial status.
The Bristol Tramway Company alone refused to permit an investi-
gation. To all others the Committee is under great obligation for
their unstinted efforts to make the investigation a success and for
the great amount of work performed gratuitously and freely. With-
out such generous and whole-souled assistance, the investigation
could not have succeeded. It is impossible to express too high an
appreciation of the generous reception accorded to the Commission,
especially when one remembers that the investigation was conducted
by a foreign association and primarily for the benefit of cities in a
country other than Great Britain.

To Mr. Fay N. Seaton the committee is indebted for valuable
editorial assistance, and particularly for the Index to this as well
as to the other volumes.

M. R. M.

New York, October 1, 1907.

TABLE OF CONTENTS

PAOB

Membership of Committees VII

Editorial Note XI

GAS, ELECTRICITY AND TRAMWAYS.

Labor and Politics (Schedule II) :

By Professor JOHN R. COMMONS and Mr. J. W. SULLIVAN ... 1

GAS WORKS.

General History and Legislation (Schedule I) :

By Dr. MILO R. MALTBIE 113

Engineering Matters (Schedule III) :

By Mr. WILLIAM NEWBIGQING and Mr. J. B. KLUMPP 162

Finance and Accounting (Schedule IV) :

By Mr. E. HABTLEY TUBNEB and Mr. R. C. JAMES 208

ELECTRICITY SUPPLY.

General History and Legislation (Schedule I) :

By Dr. MILO R. MALTBIE 248

Engineering Matters (Schedule III) :

By Mr. J. B. KLUMPP and Mr. A. E. WINCHESTEB 292

Finance and Accounting (Schedule IV) :

By Mr. R. C. JAMES and Mr. E. HABTLEY TUBNEB 339

STREET RAILWAYS.

General History and Legislation (Schedule I) :

By Dr. MILO R. MALTBIE 384

Engineering Matters (Schedule III) :

By Mr. NORMAN McD. CBAWFOBD and Mr. J. H. WOODWABD. 453
Finance and Accounting (Schedule IV) :

By Mr. E. HABTLEY TUBNEB and Mr. R. C. JAMES . . 475

xvl TABLE OF CONTENTS.

GENERAL.

PAOB

Taxation of Gas, Electric Supply and Tramway Undertakings :

By Dr. MILO R. MALTBIE 516

Labor and Politics — Further Answers to Schedules:

By Professor JOHN R. COMMONS and Mr. J. W. SULLIVAN... 550

General Remarks in -on Financial Conditions:

By Mr. R. C. JAMES and Mr. E. HARTLEY TUBNEB 628

Minutes of Hearings in London :

Speakers Favoring Municipal Ownership 648

Speakers Opposed to Municipal Ownership 678

Hritish Tramway History:

By Professor FBANK PABSONS 090

Index :

By FAY N. SEATON 748

LABOR AND POLITICS

Gas, Electric Supply and Tramways

(Schedule II)

By JOHN R. COMMONS AND J W. SULLIVAN

SUFFRAGE.

The suffrage qualifications of municipal voters in Great Britain
are exceedingly complicated and are in continuous process of
transition owing to the decisions of the courts. The municipal
franchise differs from the Parliamentary franchise mainly through
the inclusion of women without male representatives, but partly
through the inclusion of occupiers paying less than £10 . rent.
This makes a difference of 120,000 votes in the London County
Council area, where the number on the Parliamentary franchise
is 621,180 and the number on the County Council and Borough
lists is 742,397. In 21 wards of Glasgow the Parliamentary list
has 92,471 names, while the municipal list has 120,267 names.

The restrictions on the suffrage affect mainly the working
class vote.

The qualifications for working-class voters fall under three
heads :

(a) Occupiers of houses or "tenements";
(&) Lodgers;

(a) The list of " occupiers " is taken from the main body of
the Municipal Burgess Eoll — the section which includes women
being, of course, omitted.

(6) Up to 1906 all persons occupying rooms, or even distinct
" tenements," in a house in which their " landlord " lived, could
only claim, if at all, as lodgers. As will be seen below, the law is
now in complete confusion owing to the different interpretations of
a legal decision. (Kent vs. Fittall, in the High Court.)

A lodger vote can only be claimed if the room or rooms occu-
pied are deemed to be of the clear annual value of £10. It depends
upon each separate "Eevising Barrister" — (the functionary before
whom votes must be claimed and sustained) — as to what evidence
of value shall be accepted.

Vol. III.— 2.

2 NATIONAL CIVIC FEDERATION.

It is not necessary that an actual rent should be paid. If a
son should be helping in his father's business and receiving food
and lodging as his remuneration, he would be held to be a
" lodger. If the house were in a " good " neighborhood no fur-
ther evidence would be asked as to value.

Usually the evidence required is that of the "rent-book"
showing the lodger's weekly payments. Not uncommonly, sons
who in fact pay no rent for their room, have dummy rent-books
made up, and the barrister cracks jokes about the marvellously
clean state of these books, or the peculiar fact that entries twelve
months old look no blacker than the last entry of all ! The general
feeling of barristers and of the party agents is to interpret the
law favorably to claimants on this point of actual payment, and
even as to the actual value of the room, if the applicant appears
an intelligent, respectable man. But the room must be in his
sole occupation and he must have the right to turn the key and
exclude anyone else. Any "doubt on this point would spoil his
claim.

There is no Municipal " lodger " franchise. The " occupier "
of a tenement — or under the new decision an independent, uncon-
trolled room — is not restricted by any question of annual value.
Therefore, if the new position be maintained, large numbers of
working-men who have not been able to claim " lodger " votes will
now be able to claim burgess votes and so will become both Munici-
pal and Parliamentary voters. This has already happened in
many boroughs so far as this year's electoral lists are concerned,
and the burgess rolls have been increased by 30 to 40 per cent, in
some cases, and even by over 50 per cent.*

(c) The "service franchise" covers such cases as caretakers,
or gardeners or coachmen living in separate rooms over stables.

Twelve Months Residential Term : In all cases alike the claim-
ant must have been in residence from July 15 to July 15 of suc-
ceeding year. But there is an interpretation of residence which
allows an " occupier " (but not a lodger or " service " voter) to
claim what is called "successive occupation." That is to say, his
claim is sound if he has " occupied " even several different houses
or tenements in turn, so long as they are within the same municipal
borough, and so long as the occupations were successive. The fact
that the "occupations" were in different Parliamentary divisions
of the borough does not matter. His vote will be enrolled in that
division in which he is residing at the end of the term.

London being divided into 28 boroughs, and movements to
follow or seek work being more frequent than elsewhere, the num-
ber of workmen disfranchised is unduly large. In 1905 there
were in the County of London 1,450,000 men of 21 years and
upwards. The number of Parliamentary electors in the same area
was 621,000 — a considerable discrepancy. This is largely due to
"movements," but there is also an important factor in the large

* In one case 57 per cent, (see note below).

LABOR AND POLITICS. 3

numbers of workmen — especially those with not more than one or
two young children — who occupy a room in a furnished house, or
in a house in which the landlord also resides. Many of these can-
not show a value of anything like £10 per annum. Moreover, one
" move " within the qualifying period, even into the next house,
has destroyed their claim. This is the class affected by the decision
of Kent vs. FittalL By this decision, if the occupant of the room
can establish the fact that his landlord has no " control " over the
room — i. e., that the occupant fulfils all his own services and is in
effect as independent as he would be in a self-contained tenement —
he is not a lodger, but an " occupier."

Prior to the making-up of the burgess rolls, the Local Gov-
ernment Board called the attention of all municipal authorities to
this important decision, and as a consequence a number of such
authorities added all such cases to their burgess roll. The different
revising barristers have taken varying views of this proceeding,
and the different effects of their rulings are seen in the fact that
the additions to the rolls vary from less than 1,000 to more than
10,000 in a borough. In Tower Hamlets (Bow Division), with
11,197 voters in 1905, over 3,000 new occupiers are added under
the Kent vs. Fittall rule. In Dulwich Division (in 1905, 14,869
voters) over 4,000 are added. In Shoreditch the 1905 register
showed 14,300 names. This year's will contain 22,000. Increase,
57 per cent.* In St. Pancras Borough (with 28,000 former voters)
over 10,000 new voters will be added. If this new development is
once established, — as there appears no doubt it will be, — a revolu-
tion in working-class franchise will have been effected in Great
Britain. In London alone it seems that not far short of 100,000
electors — practically all of the working-class — will be added to
the Parliamentary rolls.

In addition to the disfranchisement of lodgers, a householder
is also disfranchised if he, or his wife, children, father, mother, or
the father or mother of his wife, have had in or out poor relief front
the Board of Guardians, or have had in-relief from a private charity,
such as an old-folks' home. Lists of such persons are furnished the
election overseers by the Board of Guardians or the managers of the
private charity. In hard times this disqualification causes whole
blocks and streets of householders to be wiped off.

But there is a tendency of the High Court to mitigate the
severity of the exclusion of householders, e. g., medical aid is no
longer a disqualification, even if it be limited to a prescription by the
physician of food for underfed children. Again, in the case of wife
and children, the Board of Guardians issues its warrant direct upon
the householder for their support, but in the case of others they must
get an order from a magistrate. Hence, if the magistrate refuses
to issue an order, the householder is not disqualified, and magistrates
generally refuse nowadays if the householder will agree to pay only a
small part of the cost of support, say Is. a week out of the 12s. or

* Decision arrived at in Court September, 1906, by all parties, not
to oppose new class of voters, of whom Town Clerk supports 8,000 claims.

4 NATIONAL CIVIC FEDERATION.

13s. which the Board of Guardians is spending. This has restored
many hundreds to the register, for it covers the generally accepted
custom among poor people of allowing the parents to go to the work-
house during hard times or when the breadwinner is out of work,
and then taking them back again when work is found. Magistrates
look upon cases of this kind as evidence of good intentions and not
deserving of penalties.

Making up the Register: The way the register is made up is
as follows: The municipal authorities prepare their burgess' roll
from the names of " occupiers " as appearing on their rate-books.
These occupiers do not necessarily pay rates directly. In England
(as distinguished from Scotland) the majority of working-class
occupiers pay a lump sum per week to the house-owner, who in his
turn pays the rates upon all his houses. But every occupier's name
should be upon the rate-book.

The disqualifications for voters are (a) conviction of a crime
or felony; lunacy; receipt of poor relief (by order of an Election
Petition Court) on account of bribery or corruption; (fe) being
minors or aliens; (c) being women (from the Parliamentary fran-
chise only) ; (d) non-payment of rates (from all votes).

If a house-owner has omitted to pay the rates upon a house, the
occupier is disfranchised.

Subject to these exceptions, all occupiers' names should appear
upon the burgess roll ; the women being shown in a separate section.
If an occupier's name has appeared on the previous roll he need not
make a fresh claim. A claimant for a lodger Parliamentary vote
must renew his claim each year. Any burgess may object to a name
being on the voters' list, but must serve the claimant objected to with
notice of his objection by registered letter. The claimant in that case
must appear to defend. An objector must produce the receipt for
the registered letter or he will not be heard. In actual practice,
objections are made by the party agents or by their nominees. It is
a common practice for new claimants, if their politics are not well
known, to be instructed to go to the agent of the opposing party and
ask him to make the claim. A good agent always sees that his new
claimants do this.

The "Eevising Barristers" are appointed by the Judges on
Circuit and are paid 250 guineas ($1,270) for their work, which
lasts two or three weeks. The general fairness of their decisions is
very seldom questioned. Considering the interests at stake, and the
absurdities of the election law, the Revision Courts work with re-
markable smoothness and fairness.

The newly made register of municipal voters comes into force in
the borough elections in November of each year — that is, about one
month from its completion. Special registers are prepared for each
Parliamentary Division, excluding the women burgesses, and includ-
ing the lodgers and " service " voters. These registers do not come
into force until January 1 of the succeeding year. Hence a voter
cannot get an opportunity of voting in a Parliamentary election
until at least eighteen months after taking up residence in a bor-

LABOR AND POLITICS. 5

ough. As Parliament can last for seven years, a citizen might live
for eight years in one house before getting an opportunity to vote.
In the case of municipal elections, which occur more frequently, the
extreme limit of residence required reaches two and one-half years.

The registry of voters is practically made up by the Party
Agents of the Liberals and Conservatives. They have become so
highly expert that the constituted overseers accept their agreement
without question. There usually remain not more than twenty or
thirty cases in a district for the Kevising Barrister. The agent of a
new party, like the Labor party, has the same opportunity before the
overseers and the Kevising Barrister, but he is not so effectual on
account of his lack of experience. Mr. F. W. G-alton, election agent
in London, in a brief article contributed to the Eeformers' Year
Book, 1906 (p. 81), says : " Theoretically, lodgers may send in their
own claims to the overseers. Practically, none of them ever do so.
Hence it is safe to say the whole of this 75,000 voters (or 80,000)
would be absolutely disfranchised if it was not for the work of the
Party Agents in London."

The Party Agents are also depended upon to get small occu-
piers on the registry, especially where, as in London, the rates are
compounded; that is, where the landlord pays the occupiers' taxes.
Of course, in such a case the occupier's name does not appear as a
ratepayer, and consequently the overseers must depend upon the
landlords who are legally bound to return their occupants. These
returns are notoriously inaccurate — indeed, it is charged by members
of the Labor Party that landlords who are Liberals or Tories leave
their tenants off if they do not agree with them in politics.

Since the excluded are mainly from the class of wage earners,
it is estimated that fully 40 per cent, of the male wage earners in
London are disfranchised. This proportion is larger in London than
it is in provincial towns, and especially Glasgow, because of the much
larger proportion of lodgers. This follows from the practice in Lon-
don of the landlords' letting an entire building to one tenant, who
thereby becomes the occupier or householder, but who sublets to
others, who thereby become lodgers. This differs from the practice
in other places where the landlord lets directly to all of the tenants,
so that they are thereby occupiers, or householders. The householder
is permanently on the register each year unless stricken off, but the
lodger must make application each year. That is, the presumption
is in favor of the occupier or householder, but against the lodger.
There are 80,000 lodgers on the register in London, but fully twice
that number are omitted through neglect to claim their rights, and
there is an additional 100,000 who are not legally entitled to be on
the register. This accounts for 360,000 omissions from the register.

Outside London our informants place the number of disfran-
chised at 25 to 40 per cent. These must necessarily be only guesses,
but they are the guesses of parties closely connected with the opera-
tion of the electoral system. In Glasgow, where the landlords let
their tenements directly to the tenants, who thereby acquire the
householder's franchise, and where the system of compounding

6 NATIONAL CIVIC FEDERATION.

rates is not in vogue, a large proportion is nevertheless disfran-
chised for delinquency in the payment of rates. This number is
estimated at 37,000, as against 145,956 actually on the lists, or 20
per cent, of those who might otherwise have qualified. Estimating
the number of women voters at 18,000 (i. e., one-third of the sup-
plementary list of 53,485), it appears that the number of male
voters in Glasgow is 128,000 and the corresponding population
estimated for 1905 is 799,474. This works out 1 male voter for
every 6$ of the population, showing a much smaller disfranchise-
ment than in London.

In addition to the large, proportion of adult males who do
not get on the electoral lists, there is another large proportion
who do not exercise their rights as electors. In ten wards in Glas-
gow where contests were held in 1905 there were 63,405 names on
the electoral lists, and the number of votes cast was 41,651, or
66 per cent., leaving 34 per cent, who failed to exercise their right.
/ This proportion varied from 20 per cent, in the Seventeenth Ward
to 45 per cent, in the Eighth Ward.

It is generally agreed by all of whom inquiry was made that
the classes disfranchised are the following:

1. The submerged tenth; L e., the confirmed pauper,
semi-criminal and casual labor classes.

2. Reputable workingmen of the poorer paid classes at
times of industrial depression.

3. All lodgers in holdings which rent for less than £13
a year. This figure seems to be agreed on in practice in
different cities as the minimum rental below which a tenement
shall not be entitled to a lodger's franchise in addition to the
householder's franchise. This rule practically excludes the
sons of all common or unskilled laborers.

4. The sons of the better paid workingmen who could
qualify as lodgers, but who dread the publicity, the challenges
of the Party Agents, and the exposure of their private affairs.
This often excludes also householders challenged and stricken
from the lists, who prefer not to contest their rights rather
than undergo the exposure.

6. Other classes not wage-earners, especially clerks liv-
ing at home or as lodgers, and even wealthy young men who
neglect to make the application each year for the lodger's
franchise.

An additional overbalancing of the labor vote is the qualifica-
tion which a business or professional man can secure on the
strength of his office or place of business while he has his residence
in the suburbs. This advantage, however, usually shows itself in
only the one or two wards where the banking, wholesale, and com-
mercial enterprises are centered. In two or three cities (Birming-
ham, Liverpool, Manchester) there are wards where the voters on
business qualifications either almost equal or even exceed in num-
ber those on residence qualifications. These are, of course, wards

LABOR AND POLITICS. 7

where the suburbanites have their offices, since a person cannot
qualify for more than one vote within the city boundary.

COUNCILLORS.

Liverpool. Liverpool is divided into 34 wards1 with one
Alderman and three Councillors for each ward, making 137 mem-
bers of the Municipal Council. Of these 137, only 25 live in the wards
they represent, while 112 live outside the wards which have elected
them as their representatives or to which they as Aldermen may
have been assigned. Of these 112 living outside their wards, 50 live
entirely outside the limits of the corporation and in suburban
districts. They have qualified as electors within the corporation
by virtue of their places of business. These 50 suburbanites are
altogether of the upper business and professional classes. But in
addition there are 44 members of the Council living in the six
richest residential wards of the city, making altogether 94 members
who live in the richest of the residential districts, within or without
the corporation, and representing either their own or other wards
within the corporation.

This fact becomes even more significant when we contrast the
situation in what may be called the working-class wards with that
in the residential or " villa " wards. In Liverpool there are twenty
wards which may be described as working class, including at one
extreme the slums and at the other the homes of the upper artisan
class. These 20 wards are represented by 80 Aldermen and Coun-
cillors, of whom only 8 live in the wards they represent and 72
outside the wards they represent, and of this number 53 live in the
six richest residential wards or the suburbs. On the other hand,
of the seven residential wards occupied by the middle and richest
classes, 16 representatives live in their wards and only 12 outside.
Even these outsiders live in other wards or in the suburbs among
people of the same social standing as those whom they represent.
In other words, while the strictly working class wards are en-
titled to 80 representatives they elect two-thirds of them from the
residential wards and suburbs, and while the residential wards are
entitled to 28 representatives they elect practically all of them
from among their own residents. There are also two strictly busi-
ness and commercial wards represented by business men.

These facts will account in part for the classification of mem-
bers of the Council according to their wealth. A few of them are
described as " very rich men," while at least 100 are " fairly well-
to-do" or "moderately wealthy," and only about 20 could be
described as poor men. Of course this classification is only a rough
one and has not been checked off by Lloyds.

A more accurate classification, but not as significant for our
purposes, is that by occupations. This shows 29 wholesale and
retail merchants, 12 shipowners, 12 brokers and agents, 9 manu-
facturers, 12 lawyers, 11 building employers, one trade unionist and

*A new ward without an Alderman and with only one Councillor
is omitted from this description.

8 NATIONAL CIVIC FEDERATION.

one Socialist. Liverpool shows also a larger proportion of brewers
and saloon-keepers than other places, namely 15, but it is significant
that these are nearly all manufacturing brewers and not retail
liquor dealers. Altogether the Council is two-thirds on the side
of the large and small business men and employers of labor, with
about one-fifth professional men whose associations are with the
business men. With but few exceptions the men of means have
acquired their property by their own exertions, and this will be
found to be true in all the Councils except that of London.

Our inquiries for other corporations are not so complete as
those for Liverpool, but as far as they go they show similar condi-
tii-ns. Birmingham has 72 Aldermen and Councillors for 18
wards, and taking 60 regarding whom we are informed, there are
but 10 living in the wards which they represent and 50 living in
other wards and the suburbs. The thirteen working-class wards
are represented by only 7 members living in their wards and 45
living outside their wards. The 72 members include 17 merchants,
21 manufacturers, 6 lawyers, 5 physicians, 5 brokers, 7 wage-earners,
or union officials, and 7 "gentlemen" living on investments.

Manchester. Manchester has 123 Aldermen and Councillors
representing 30 wards. Of this number, 70 live in the wards they
represent, 10 in other wards, and 43 in the suburbs. Of the 13
labor members, 8 live in the wards they represent and 2 live in
the suburbs.

Leicester. Leicester has 16 wards and a Council of 48 Coun-
cillors and 16 Aldermen. Of the Councillors, 32 live outside the
wards which they represent (but 8 of them have business premises
or offices inside the ward), and 16 live in their wards. Of the
Aldermen, 7 live out and 9 live in. Altogether, 39 members of
the Council do not live in their wards and 25 live in. their wards.
The nine working-class wards are represented by 16 non-residents
and 11 residents. The Council has 18 manufacturers or employers,
18 merchants, 4 physicians, 3 accountants, 4 trade-union officials,
4 wage earners, 2 solicitors, 3 newspaper proprietors, 2 publicans,

I land owner, 2 officials of co-operative societies and one government
official.

The London County Council includes 118 Councillors elected
from 58 districts, and 19 Aldermen elected by the Council. The
Aldermen are not assigned to any district, and it is only necessary
that they qualify as electors within the county area, either on
account of residence or business. Of the 118 Councillors, 50 live
in the districts they represent and 68 live outside. The Council
includes 21 merchants, 15 manufacturers, 18 lawyers, 4 builders,

II labor representatives, of whom 7 are trade-union officials and
4 socialists. The London County Council is exceptional in having
10 retired civil servants, and 26 "gentlemen," London being a
congenial residence for the leisure classes. It is also peculiar in
thf large number of members who have inherited their property in
whole or in part, this number being 34.

LABOR AND POLITICS. 9

The subjoined study of the social and political composition
of the London borough of St. Pancras was written by a London
journalist at the request of the labor investigators :

The Borough of St. Pancras, within the County of London, includes
four Parliamentary Divisions, in each of which are two municipal wards.
As far as possible the wards have been laid out so as to include some
proportion of the more comfortable class in each. This has been even
more effectively done in the case of the Parliamentary Divisions
(which cover two wards each). The total population of the Borough
is 237,149, and the number of municipal electors, 33,376.

The nature of the wards is as follows:

Ward Number One — A number of old houses with parks or large
grounds, belonging to wealthy aristocrats (such as Lady Burdett-
Coutts) ; a district of large villas and flats ; a small but very bad slum ;
and a large district of the most respectable class of artisans and
mechanics.

Ward Number Two — Every class of workmen, with shops on front-
age, and a sprinkling of well-to-do business people.

Ward Number Three — Workshops ; warehouses ; and a residential
district about half of professional men and city merchants, etc., and
about half of clerks and working people.

Ward Number Four (Abuts on Regent's Park) — A number of large
houses and villas : the rest well-to-do lodging houses and working-class
dwellings of all classes.

Ward Number Five — Similar to Four, but including Euston Station ;
cheap hotels and lodging houses, and a very " dubious " quarter.

Ward Number Six — Almost purely slum; includes King's Cross and
St. Pancras Stations ; warehouses, shops, cheap hotels, second-rate lodg-
ing houses, and a sprinkling of well-to-do people.

Ward Number Seven (Tottenham Court Road) — Large shops and
small workshops ; good hotels and lodging houses ; second and third
rate ditto ; foreign restaurants and theatres ; French, Italian and Ger-
man (Bohemian) and Anarchist quarters; a number of large "indus-
trial " tenement dwellings.

Ward Number Eight (Bloomsbury) — Some first-class lodging house
streets and squares, and many second-class ditto ; shops, warehouses,
workshops (printers, cabinet-makers, etc.) ; hospitals and hotels; num-
bers of " tenement " dwellings ; and endless streets of houses let in
" apartments " to clerks, respectable workmen, journalists and students.

The aristocrats of St. Pancras take little interest in Borough mat-
ters ; as is also the case with the slum dwellers. The local shop-keepers
and merchants, the professional men and the respectable working class,
take a keen interest, but many of the latter cannot vote through working
too far from their homes to get back in time. Many of the "City's "
business men, merely residing in the borough, now begin to take a part
in local politics. They are mainly Conservatives in imperial politics,
but a large proportion are " Progressives " locally. This helps to account
for the political constitution of the borough Council.

The Councillors are mainly merchants, shop-keepers and profes-
sional men ; or small employers of labor. Mr. Idris, the famous
mineral water manufacturer, and his son, are both on the Council ; and
Mr. Regnart, the Senior Governor of Maples'; also a few "retired"
well-to-do business men and persons of independent means-. There are
also : Doctors, 8 ; Nonconformist ministers, 4 ; architects, 1 ; professional
engineers, 1 ; solicitors, 2 ; insurance agents, 1 ; trade union officials, 1 ;
" workingmen," 2. Seven of the members are Justices of the Peace,
including the Mayor and the Deputy-Lieutenant of the County. Several
of the members hold other public offices. One is in Parliament ; three
are on the London County Council : one on the Metropolitan Asylums
Board, and one on the Water Board. Most of .these are men of "inde-
pendent means " who devote all their time to public service.

10 NATIONAL CIVIC FEDERATION.

There are five labor members, who are the nominees of the local
"Labor Representation Committee," on which the trade unions are
mostly represented. Their election expenses are paid by the commit-
tee, but they do not receive any remuneration for their services. They
consist of one trade-union official (plasterers), one insurance agent; one
working el^ -trical engineer, one non-conformist minister, and one rail-
way guard. In the actual work of borough administration " party "
divisions are not considered, and all sections work together. One of
the labor men has been made an Alderman.

The majority of Councillors live in or near the wards they repre-
sent, or have business interests there. This is possible because nearly
every ward has a well-to-do quarter.

St Pancras might be taken as typical of a large number of the
London boroughs, except that it abuts on Regent's Park and Hampstead
Heath, which gives it an exceptional number of very wealthy residents,
compared with most London boroughs.

Glasgow. The Corporation of Glasgow includes 78 Councillors
and Aldermen, who represent 26 wards, to which are added two
representatives of ancient guilds surviving within the city. Of the
78 ward representatives, 27 live in the wards they represent and 51
outside.

The 14 working-class wards have 12 members living in and 30
members living outside the ward they represent, while 6 residential
wards are represented by 13 members living in their wards and only
5 outside. Five members are considered in Glasgow as men of
wealth, while 50 are moderately wealthy or fairly well-to-do. Prac-
tically all these have acquired their wealth by their own efforts,
although five have added to moderate amounts inherited.

The fact that such large proportions of the Municipal Council-
lors are not residents of the wards they represent attracts scarcely
any attention among the voters. All of our inquiries on this subject
show that the question of a candidate's residence never comes up
in an election. Occasionally it is stated that a resident would be
preferred if there were such a one well qualified, and a few labor
Councillors have declared that owing to the predominance of mem-
bers living in residential wards those wards are disproportionately
cared for in the way of parks and improvements. These labor coun-
cillors, who are themselves also usually non-residents, are inclined
to make sure of the local needs, and in two cases we have learned
where they have adopted the plan of calling together the voters two or
three times a year to report on what the Council has done and to
discuss the needs of the ward. This policy is an innovation. In gen-
eral, the view seems to be held by the voters that the Councillor is
elected to represent the interests of the city as a whole, although a
few have stated that a prominent man who is a non-resident does
more for the ward than a less influential man who is a resident.

Perhaps one reason why the voters, especially those of the work-
ing-class wards, do not insist on residency of their Councillors is
the lack of jobs or offices at the disposal of the Councillor. This is
inferred from the fact that a Councillor living in and representing
his working-class ward receives many fold more applicants for let-
ters of recommendation to officials than others not living in their
wards.

LABOR AND POLITICS. 11

Committees.

The foregoing description of the Councils applies with even
greater significance to the committees of the Council, especially those
committees in charge of the great productive enterprises. Thus the
Tramways Committee of Liverpool consists of 18 members, but only
two of these live in the wards which they represent; and of the 16
who live outside their wards 7 live in the suburbs and 5 in the aristo-
cratic wards. Eleven members of this committee represent working-
class wards, yet there is but one of this number who lives in the ward
he represents.

The Committee on Electric Power and Lighting of Liverpool
has 16 members, of whom 7 live in the wards they represent, each of
these wards being at the same time the residential wards. Nine
members live outside their wards, and of these there are 5 who live
in the suburbs. All of the members from the five labor wards
represented on this committee live outside those wards, either in the
suburbs or in the residental wards. ^

Birmingham. The committees of the Birmingham Council are
smaller in the number of members than the committees of other
Councils, the Gas Committee numbering but eight. Of the members
of this committee, but a single one lives in the ward he represents ;
in fact six of the members live outside of the corporate limits, in the
aristocratic suburb of Edgbaston, and but two of the members live
in the city. At the same time every one of the eight members rep-
resents a strictly working-class ward. This makes it possible to have
a committee of the following qualifications :

1. A chairman who is also chairman of the Birmingham
Small Arms Company, Limited, one of the largest commercial
undertakings in the city. He is also a director of a local bank,
is on the board of several other companies and a manufacturer
of metal goods ; has been a member of the Gas committee thir-
teen years, having already served as chairman of the Works
sub-committee and the Finance sub-committee. Lives in the
suburbs.

2. An Alderman who was for many years a successful
manufacturer in the city, and engaged in the iron and coal
trades, but now retired from business ; member of the Gas com-
mittee twenty-eight years, chairman three years, and chairman
of the Works sub-committee. Lives in the suburbs.

3. An Alderman who is a retired chemical manufacturer;
has served on the committee five years and lives in the suburbs.

4. An Alderman who is on the directorate of one of the
largest iron and steel tube firms of Great Britain ; a member of
the committee fifteen years and chairman three years; lives
in the suburbs.

5. A Councillor who is a successful glass manufacturer;
has been on the committee ten years.

6. A Councillor who is a leading surgeon of the city; has
been on the committee four years ; lives in the suburbs.

U NATIONAL CIVIC FEDERATION.

7. A Councillor who is Secretary of the Tin Plate

Worker*' trade union ; has been on the committee sixteen years,

and livf> in tin- suburbs.

\ Councillor who is an operative brassfounder, and has

been on the committee five years.

Glasgow. A standing order of the Corporation of Glasgow
requires that 9 of its 24 committees shall be "ward committees;"
that L-. th.-y shall consist of 26 elected members, one selected from
the representatives of each ward. Among the committees thus con-
>tituti'.l are those on Tramways, Gas and Electricity. Taking these
iiinittees, notwithstanding the policy of making them rep-
resentative of all the wards, 21 members of the Tramways com-
mittee live outside the wards they represent, 14 of the Gas commit-
tee and 17 of the Electricity committee. Of the representatives
from the 14 strictly working-class wards, 12 on the Tramways com-
mittee live outside their wards, including the chairman, 9 on the
Gas committee, and 12 on the Electricity committee.

The Tramways committee of Glasgow has 6 manufacturers and
employers, 12 merchants, and one each as follows: Accountant,
in •«• .-paper proprietor, banker, retired proprietor, retired police su-
perintendent, co-operator, labor secretary and publican. The Gas
committee has 11 manufacturers and employers, 11 merchants, 2
physicians, 1 accountant and 1 engineer. The Electrical committee
has 15 manufacturers and employers, 5 merchants, 2 accountants,
2 publicans, 1 solicitor and 1 engineer.

The Manchester Gas committee has 8 manufacturers and em-
ployers of labor, 5 merchants, 3 "gentlemen," 2 pawnbrokers and
one trade union secretary. The members have served on the com-
mittee from one to twenty-eight years, and a majority has served
nine years or more. The Electricity committee has five manufac-
turers, including 1 brewer, 1 merchant, 3 engineers, 1 chemist,
1 architect, 1 real estate agent, 1 pawnbroker, 1 bath house pro-
prietor, 1 lawyer and 2 " gentlemen."

The Leicester Gas and Electric Lighting committee of 16
members includes 6 manufacturers, 4 merchants, 2 shoe factors,
1 trade union official, 1 co-operator official, 1 publican and 1 civil
servant. Their terms of service range from one year to twenty

* as shown by the table, and the chairman has held that position
for four years after serving on the committee eight years.

The following table shows the length of service on the several
committees, as far as ascertained. In several cases members have
served in the Council one or more years before their appointment
on these committees. In the case of Glasgow the figures indicate
the period of service in the Council, although their service on the
commit!'"-* i-.a- been practically for the same period:

LABOR AND POLITICS.

YEAES OF SEBVICE ON COMMITTEES.

Birming- Lei-

, Glasgow. > Manchester, ham. cester.

Gas. Elec. Tram. Gas. Elec. Gas. Gas.

21 24

25-28

26 26 19 18

8 16

National Politics. Outside Glasgow and London the nomina-
tion and selection of members of the Council and of the committees
of the Council are controlled by the local committees of the three
national parties — Conservative, Liberal and Labor. That is, the
Councils are elected on political lines. In Glasgow national politics
is said to cut no figure whatever, while in London the two local
parties, Progressives and Moderates (now the Municipal Keform-
ers), are not identical with the National Liberal and Tory parties.
The Progressives include Liberals, Laborites and several Conserv-
atives, while the Moderates include Conservatives and Liberals.

The situation in Leicester is described as follows by one of the
Aldermen : The town is overwhelmingly Liberal, and the Liberal
organization is based on ward committees, each of which nominates
its own candidate for the Council. The Labor and Conservative
parties, not being so strongly represented, rely on their central
organizations to name candidates for the several wards and to con-
duct the campaigns. In Liverpool the ward committees for each
party are selected by the Parliamentary committee, which usually
includes two or three wards. A central committee of delegates
from the Parliamentary committees determines the party policy and
conducts campaigns.

The committees of the Leicester Council are elected anew by
the Council after each election. Each member of the Council desig-
nates to the Town Clerk the three or four committees on which he
wishes to serve, and these self-nominations are laid before all the
members. A few days before the legal selection of committees the

14 NATIONAL CIVIC FEDERATION.

Council holds a " private " meeting — that is, something like a Com-
mittee of the Whole — and by ballot designates the membership of
the several committees. But prior to this " private " meeting the
Liberal members hold a caucus and make up their slate, and this
slate is carried through at the private meeting and at the legal meet-
ing. Members not elected on leading committees are placed on
minor ones, such as museums, etc. The labor men are usually dis-
tributed among the large employing committees, but they are of
course a small minority of one or two. Conservatives are also dis-
tributed among the committees. It is stated in Leicester, as well as
in the other English cities, that once elected and appointed on the
committees politics receives no further consideration whatever. The
different party men work together solely for good administration.
This contention seems to be borne out by several facts, the most
significant being the election of Aldermen. Since Aldermen are
elected by the Council, and not by wards, the Councils occasionally
elect Aldermen of the opposite party who have been defeated or
could not have been elected in the wards. Thus in Leicester, with 42
Liberals and 11 Tories in the Council, the chairman of the Finance
committee is a Tory elected as Alderman by a Liberal Council and
then placed at the head of that committee on account of his recog-
nized financial standing and ability.

The same thing occurs in Birmingham, where the chairman of
the Finance committee and the chairman of the Health committee
are Gladstonian Liberals, both elected to the positions of Aldermen
and chairmen of these important committees by a Tory Council.
Altogether 5 of the 18 Aldermen in Birmingham are Liberals, while
40 of the 54 Councillors elected by wards are Tories and Unionists.

Citizens' Associations.

An interesting institution in Glasgow is that of the ward
committees. These are purely voluntary, non-political associa-
tions, not recognized in law, but they have existed in each ward
for many years. They had somewhat fallen into abeyance un-
til the Citizens' Union some eight years since set about strength-
ening them and endeavoring to utilize them against the policy
of further municipalization. These ward committees are elected
by show of hands at a ward meeting of the electors in the
ward. At a conference of ward committees held in December, 1905,
it was recommended that one-third of each committee who have been
longest in office shall retire annually. These committees take up all
matters of interest to the ward, such as improvements, street widen-
ing, sanitation, tramway, gas and electric service and supply. They
adopt resolutions and address identical letters to the three Council-
lors and the Bailie representing the ward. It would seem that these
committees fulfill a purpose, in view of the non-residence of the
ward councillors, in keeping before them the needs of their lo-
calities.

We have not learned that there are similar committees in any
of the other cities which we have visited. Their place is taken in

LABOR AND POLITICS.

English cities by the ward committees of the political parties, and
these appear only at election time.

There is, however, another class of associations which has
arisen in recent years as a means of opposition to the policy of
municipalization. These are the " rate-payers' " associations. In
Glasgow are two branches of this form of organization named the
Eate Payers' Federation and the Citizens' Union. They are com-
posed mainly of the same individuals, with offices in common, but
with separate secretaries. Their only difference is that the Citizens'
Union was organized to combat municipalization through politics
and agitation and the Eate Payers' Federation was organized to
oppose the policy in Parliament and the courts. The membership
of the Eate Payers' Federation is kept secret, but it is incorporated
and employs legal and other talent as needed.

The policy of these associations as stated by their secretaries
has not been to oppose the municipalization of tramways, gas, elec-
tric, or water supply — indeed they have no criticisms to make on
the administration of these enterprises in Glasgow " when confined
to their proper spheres." At the time when the Citizens' Union was
organized, in 1898, the Socialist program was in full swing, and
propositions were seriously considered by the Council of extending
municipal ownership to housing, banking, insurance, cemeteries,
tailoring, baking, and so on. It was these extensions that the Union
was organized to combat. It also opposed the gas and electric
undertakings in their plan of enlarging their field to take in the
supply of gas and electric fittings, and was successful in the case of
electric fittings, but it came too late in the field to prevent driv-
ing the private traders out of the supply of gas fittings. On this
account electric fittings continue to be supplied in Glasgow by
about one hundred and twenty private traders, and the munici-
pal electricity department is confined to the field of electric sup-
ply. The Union also opposed the extension of the tramway system
to the suburbs until such time as the shortage of facilities within
the boundaries of the city itself was overcome. This shortage, it is
said, has now been made good, and several suburban extensions have
been made, but in the case of one proposed extension, that to Mil-
neygh, the Eate Payers' Federation secured an injunction which,
up to the present time, has prevented its construction. The Citi-
zens' Union has also opposed the Tramways Committee in its efforts
to keep heavy traffic off the tracks to the detriment of horses and
business traffic.

The Citizens' Union has taken an active part in resuscitating
the ward committees in Glasgow and arousing the interest of the
citizens in the management of the municipality. It publishes a
year book for the use of citizens and the encouragement of ward com-
mittees, and it states that the alarming indifference to municipal
affairs which its members found in 1898, and which was taken
advantage of by the Socialists, has now been displaced by an intelli-
gent, active, and widespread interest.

16 NATIONAL CIVIC FEDERATION.

Following is the program of the Citizens' Union, as printed in
its Year Book, 1906 :
The Citizens' Union approves of —

1. Economy and the reduction of taxation.

2. Limitation of the city debt in proportion to the assessable rental.

3. Appointment of Public Auditors by the Secretary for Scotland.

4. Organization of corporation departments so as to avoid over-

lapping and promote co-operation.

5. Appointment of Stipendiary Magistrates.

6. Compliance with the 1897 Act, which limits corporation housing

to the poorest classes.

7. Corporation encouragement of private enterprise to provide

houses for the laboring classes.

8. All further borrowing and capital expenditure on telephones to

be stopped and the enterprise sold.

9. A legal Register of streets, in terms of the decision of the

seven Scotch Judges, and abandonment of the House of
Lords Appeal.

10. Intoxicated persons in the streets to be taken charge of by the

police.

11. Better administration of licensing laws, and reduction of licenses

in crowded areas.

12. Valuation by an outside valuator of the City Improvement Trust

Property.

13. Reduction of the large amount held by the city on loan at short

notice.

14. The recommendations of the Housing Commission as to hous-

ing and controlling the poorest classes.

15. Extension of the municipal franchise to limited companies, and

of the school board franchise to large firms and limited
companies who are heavy rate-payers.
The Citizens' Union is opposed to —

1. Municipal Socialism and municipal trading, unless where some

interest common to all the citizens is concerned.

2. The corporation continuing to hold lands and buildings after it

has cleared an insanitary area, or completed an improve-
ment.

3. A Municipal Works Department.

4. The proposed illegal register of streets.

5. Municipal cemeteries, while the wants of the City are adequately

met by private enterprise.

6. Municipal Insurance, while there is healthy competition for

corporation business.

7. Including rates in rents under £6, which would enfranchise

10,000 persons who do not at present pay rates.
The Union cannot expect candidates to adopt all the above items,
but it is believed that they will serve a useful purpose in letting all
whom it may concern know what are our general principles.

Outside Glasgow we have not been able to secure information
direct from the officers of ratepayers' associations. The only one
that seems to have been aggressive is the London Municipal So-
ciety, with such names as the Duke of Norfolk and Lord Avebury
(Sir John Lubbock). The specific objects of this society are among
others, a uniform system of municipal accounts, an audit by quali-
fied and independent auditors, the principle of public control of
large communal services as opposed to municipal management, re-
vision of the system of compounding for rates, and the reform
of local taxation. In London there are also ratepayers' associations
in the several boroughs.

LABOR AND POLITICS. 17

A leading Alderman and former Lord Mayor of Birmingham,
who was himself strongly opposed to the municipalization of the
tramways, says that the Ratepayers' Association of Birmingham
has been of no practical use to them in the conduct of municipal
affairs, because their view is limited to the one object of keeping
down rates.

MUNICIPAL EMPLOYMENT.

Glasgow.

In all of the municipal undertakings examined the corporation
delegates the control to standing committees. These committees
vary in the number of members from eight, in the case of the Gas
Committee of Birmingham, to twenty-six in the case of Gas, Tram-
ways and Electricity in Glasgow. This figure is reached in Glasgow
in order to give a member to each ward. The committees are
usually divided into sub-committees. The Tramways Committee
of Glasgow has a sub-committee on Finance and another on Stores.
The Gas Committee has sub-committees on " Finance," " Works,"
" Accounts," " Contracts," " Applications for Pecuniary Allow-
ances," and " Hire and Sale of Gas Stoves." The quorum is
usually a very small proportion of the membership; e. g., seven
of the above Glasgow committees and three of the sub-committees.
The actual work of a committee is practically carried on by the
chairman (or "convener" in Glasgow) assisted by the chairmen of
the sub-committees. The sub-committees cannot act except as
approved by the parent committee, and " all findings of committees
must be submitted to the whole Council for approval, unless the
Council has remitted the question to the committee with powers."
(Glasgow.) The chairmen of the committee and the sub-com-
mittees are elected by the Council (Glasgow). They receive no
compensation whatever. The committees meet regularly every
two weeks, so that their minutes come before the Council every
two weeks.

The General Manager, or chief executive officer, of a depart-
ment is elected by the Council, but the selection and nomination
is made by the committee. The following from the minutes of
the Tramways Committee is the contract under which the present
manager, Mr. James Dalrymple, is employed.

Excerpt from Minute Date ItJi December, 1904.
The Sub-Committee further agreed that the appointment ehould
be subject to the following terms and conditions: (1) The appointment
shall be held during the pleasure of the Corporation; (2) The General
Manager shall devote his whole time to the duties of the office; (3) The
General Manager under the direction and subject to the control of the
Corporation, shall have the full management of the Tramways Depart-
ment; (4) The General Manager shall appoint and control the entire
staff, and shall have power to suspend or dismiss any person employed
under him, and shall be responsible to the Corporation for the good
conduct of the persons appointed by him and generally for the efficiency
of the department under his management : provided always that before
appointing or dismissing the head of any of the departments under him
he shall submit the name of such person to, and obtain the sanction of,

Vol. III.— 3.

18 NATIONAL CIVIC FEDERATION.

the Tramways Committee; (5) The General Manager shall in such way
and manner as the Corporation may direct keep regular and distinct
books and accounts showing the whole financial transactions of the
Tramways Department, and shall at such time as the Corporation may
direct deposit all moneys received by him in bank; and (6) the General
Manager shall also at such times as the Corporation may direct submit
accounts and statements showing the entire working of the Tramways
Department ; and shall from time to time make such returns and reports
as the Corporation or the Tramways Committee may require.

From this contract, it will be seen that to the General Manager
is entrusted the absolute appointment, control, and dismissal of
every person in the department, except that of the traffic super-
intendent, the chief mechanical engineer, and the chief electrical
engineer, whose appointment or removal must be confirmed by the
committee. With these exceptions, the subordinate service is en-
tirely under the control of the General Manager, and this is the
situation in all of the departments in Glasgow and other "cor-
porations" (municipalities). In no case is there a civil service
board or commission through which appointments must be made
from a list of eligibles, but the manager makes the appointments
and removals on his own responsibility.

In the Tramways department of the London County Council
all matters of importance in connection with the acquisition, con-
struction, and operation of the tramways are settled by the Council
itself. The Highways Committee of the Council, who consider
and report on all tramway matters, meet and report to the Council
each week. The Council has delegated certain powers to the Com-
mittee of a routine character relating principally to details in con-
nection with the working of the undertaking. The following is a
copy of the resolution of the Council under which the Highways
Committee act in this respect:

" That, as regards the London County Council Tramways (i e., the
undertaking transferred to the Council by the London Tramways Com-
pany), the Highways Committee be authorized until further order —
(a) to purchase horses and stores and other articles required, and to
enter into contracts and to order the seal of the Council to be affixed
thereto; (5) to act generally on behalf of the Council in all matters
regarding the undertaking; and (c) to incur such expenditure as may
be necessary in connection with the maintenance and working of the
undertaking, notwithstanding the conditions contained in the Council's
Standing Order No. 254 relative to estimates of expenditure; and that
the Committee do report to the Council from time to time what has
been done under this authority."

The Highways Committee consists of not less than twelve and
not more than fifteen members, apart from ex-officio members, and
is constituted afresh by the Council in March of each year. The
Highways Committee has appointed two standing sub-committees
who consider and report to the committee on prescribed division
of tramways work. As regards the appointment and dismissal
of staff the Council itself decides as to the employment and dis-
missal of all officials on the permanent staff, although they are
subordinate to the chief officer. As regards the men engaged in
the actual operation of the lines, however, the Council has passed

LABOR AND POLITICS. 19

a resolution, as follows, which gives certain powers to the Chief
Officer of Tramways in this respect :

" That the manager of the London County Council Tramways shall,
until further order, have control of the staff exclusively employed in
connection with the working, maintenance, repair and reconstruction
of the tramways, and with the maintenance, repair and construction of
the cars, omnibuses and other vehicles used in or in connection with the
tramways ; and he shall, except as regards officials appointed by the
Council, have power to appoint and to dismiss any person under him,
and shall be responsible to the Council for the conduct of the entire
staff, and generally for the efficient working of the tramways and under-
taking under his charge."

Eates of pay for all classes of the tramways staff are fixed by
the Council itself, which also determines all questions of a general
character relating to the conditions of service of all the employees
in the tramways department.

The question as to whether the General Managers actually ex-
ercise their authority on their own responsibility or are influenced
in making appointments by pressure from outside, and especially
by pressure on the part of Councillors and committeemen, has
arisen, especially in the case of the three undertakings in Glasgow
and the Gas Department in Leicester. In these cases our inquiry
into the facts has been made as complete as was possible in the time
at our disposal.

The matter came up in a meeting of the Glasgow Corporation
September 4, 1902, in reference to the appointment of relatives of
officials, as will be seen from the following official report of the
proceedings :

Corporation, £th September, 1902.

Return of employees who are relatives of Councillors and officials. —
Motion by Councillor Gibson.

Councillor Gibson, in pursuance of notice given by him on
7th ultimo, moved : " That a complete return of the num-
ber of relatives of members of this Council and the rela-
tives of officials presently employed by the Corporation be
placed beofre this Council. This list to include names of
said members of Council and officials, together with the
names of their relatives and the department in which they
are employed." Councillor O'Hare seconded the motion.
Amendment by Councillor Wm. Martin.

Councillor William Martin, seconded by Councillor McCutch-

eon, moved the previous question as an amendment.
Discussion. — Vote taken. — Amendment carried.

After discussion, a vote was taken, by a show of hands, as
between the motion and amendment, when fifteen members
voted for the motion and eighteen for the amendment. The
amendment was thereupon declared to be carried.

The following is the substance of the discussion on the fore-
going motion, taken from the Glasgow Herald of September 5,
1902.

Councillor Gibson said: "With a few exceptions, members of
the Council were in the habit of finding comfortable, easy, well-
paid berths for their own relatives, ... In the Baths Com-
mittee this state of matters prevailed to an alarming extent, and

20 NATIONAL CIVIC FEDERATION.

it also existed in the Tramways Committee, the Electricity De-
partment, and the Gas Department." Mr. O'Hare " had had
complaints from the heads of departments as to the difficult po-
sition in which they were placed on this account." Mr. Martin
maintained, " that unless in certain circles known to Mr. Scott
Gibson there was not the least discontent or dissatisfaction, and if
they agreed to such a motion they would be doing their best to
destroy confidence in the Corporation. He had no doubt that such
a return as Mr. Gibson desired would show that there were a good
many relatives of officials, but they had trusted heads, who were
responsible for the administration of the departments, and he did
not think that because certain members of the staff were related
there was any ground for inquiry."

Nothing further relating to this matter was considered by
the Council until two years later, September, 1904. At that time
the attention of Councillors was called to the appointment by the
head of the meter-testing branch of the works of his son in a
subordinate position. This son had neglected his work through dis-
sipation, and his fellows made complaint unofficially to the Coun-
cillors over the head of their chief. The meter-testing branch is
subordinate to the "Watching and Lighting Committee," and has
no connection with the Gas Department. It has a small force of
five men. On investigation the Committee dismissed its head,
and he has not been employed by the Corporation in any capacity
since that time.

Following this action the Council took up the matter and
adopted a resolution, which appears as "No. XLV. Employment of
Relatives," in the " Standing Orders of the Corporation of the
City of Glasgow." The official report of the proceedings, and the
form of the resolution are as follows:

Corporation, 15th September, 1904.

Employment of officials' relatives in Corporation Service. — Motion by
Bailie O'Hare.

Bailie O'Hare, in terms of notice given by him on 17th Septem-
ber, 1903, moved : " That no manager, superintendent, fore-
man, or other official employed under this Corporation shall
employ or continue to employ any relative in the depart-
ment over which he has charge unless he has, previous to
granting such employment, had the sanction of the com-
mittee in charge of such department." Councillor Kennedy
seconded the motion.
Amendment by Councillor Steven.

Councillor Steven, seconded by Councillor Wallace, moved, as
an amendment, that the terms of the said motion should be
altered so as not to make it retrospective.
Discussion, vote taken, and motion carried.

After discussion, a vote was taken, by a show' of hands, between
the motion and the amendment, when the motion was de-
clared to be carried — seven members voting for the amend-
ment.

At the time when this resolution was adopted the Gas De-
partment took a census of all of its employees, and it was found
that there were twenty relatives of managers and foremen in the

LABOR AND POLITICS. 21

department of 2,500 employees. This census, with the names of
relatives and managers, was laid before the Gas Committee, which
immediately sanctioned their employment without question. There
was no relative of any Councillor in the department, nor is there
at the present time. The Tramways Committee also made a care-
ful inquiry throughout the department, and did not find an instance
of a foreman or official having taken on a relative.

A broader aspect of this matter came up in a meeting of
the Council April 5, 1906. The Labor members of the Council had
in 1896 secured the establishment of a municipal Labor Bureau
for the purpose of finding work for the unemployed. Ten years
had shown that the bureau was practically a failure, both in the
small number of unemployed who registered and the small per-
centage for whom work was found. In 1905 the number registered
was 5,678, and the number who found work was 1,941, or 34 per
cent. Of these, only 310 places were found for men and 1,631
for women, mainly as domestic servants. The number who obtained
work with private employers was 1,903, including 1,631 women, and
the number who found work with public authorities was only 38.
The largest number who had been employed by public authorities
was 183, in the year 1898, and this number had fallen off to 38 in
1905. In view of this evident refusal of managers of municipal
departments to employ men recommended by the bureau, the Labor
members introduced and supported a resolution : " That the heads
of the several departments of the Corporation in future only take
into the service of their departments persons who have applied
through the Corporation Labor Bureau."

The resolution was debated, but was defeated by a vote of 22
to 13.

In supporting the resolution the Labor members made state-
ments in effect as follows :

" It is the impression that in Glasgow there is no chance to get
employment in the municipal departments without the recommendation
of a town Councillor. This is the painful experience of a Councillor "
(Battersby).

" The Labor Bureau was established for the express purpose of
extending aid to those seeking employment, but not one hundred are
placed through the Bureau. This notorious fact of ignoring the Labor
Bureau offends the sense of justice in the outside mind" (Stewart, P. G).

"The friends of foremen and officials get a preference. . . .
Promotion comes in some cases from outside influence while the lads
in the offices are not promoted. . . . Preference is given in the
appointments to clerical positions of graduates of a certain commer-
cial school" (Forsyth).

In view of these statements inquiry was made of each of the
Labor members as to the facts to which they referred. Following
is the substance of their replies :

" Of course, I was standing for the Labor Bureau, and we have to
make strong statements to get what we want" (Battersby).

" The impression does prevail among workmen that a man cannot
get a job without influence, but the impression is preposterous. There
is no truth in it" (Stewart).

" The principal critics who are in the habit of making these declara-
tions of favoritism are themselves men who have been applicants and

22 NATIONAL CIVIC FEDERATION.

either disqualified on the ground of incompetency or lack of character.
These men frequently turn up at municipal elections and make them-
selves prominent against Councillors who have declined to aid them.
Councillors write these lines to managers of departments, but they are
to be looked upon as an introduction and not a recommendation. They
merely secure an interview" (Forsyth, Stewart, Battersby).

" It was not as a cure for an evil that I introduced the resolution
but as a prevention. I would stop these lines altogether, because they
may lead to abuse. . . . I do not follow up these cases unless they
are very necessitous, and then I sometimes call upon the manager per-
sonally. ... It is not the chairman or conveners of committees
that send lines — they do not use their influence in this direction."
"The lines are not sent on behalf of mechanics or tradesmen, but
mainly for common laborers. . . . Other cases where this influ-
ence is found is that on behalf of Irishmen and non-residents who get
preferences over rate-payers, through Irish members of the Council. A
prominent Orangeman in my district has been able to get lines from
several Councillors on behalf of his friends. ... I have known
cases where a man made application, was refused, but afterwards re-
ceived a line from a Councillor, and got appointed" (Forsyth).

" Of the 15,000 men in municipal employment the number engaged
having lines from Councillors cannot exceed 2,000 at the outside. The
superintendents have the sole power of taking on and discharging all
employees, and that they exercise that power there is not the slightest
doubt. Fifteen years ago when I entered the Council nobody could get
into the municipal service without influence, but with the increase in
the size of the Council, with the exposure of this and other practices,
and with the influence of the Labor Councillors, this has greatly de-
creased, and is now continually diminishing " (Battersby). . . . "No
doubt there is a certain justification on the part of superintendents
in refusing to take men from the Labor Bureau, because the better
class of workmen do not patronize that Bureau — they consider that it
places them in poor company — and those who are trade-unionists have
their own ' house of call ' where they register when out of work "
(Battersby, Stewart, Forsyth).

" Our main object was to induce all the unemployed, and, especially
the respectable unemployed to register at the Labor Bureau, and thus
to be able to know the state of the labor market, since the capitalist
members of the Council denied that there was any serious lack of
employment. We considered that if the municipal departments were
compelled to select their employees through the Labor Bureau, then the
unemployed would go to the Bureau" (Stewart).

Inquiry among other members of the Council and among the
heads of departments confirms the statement that workmen are
continually appealing to Councillors for cards or "lines" of
recommendation. New Councillors sometimes have as many as
five to ten applicants a day. They ask that the Councillor " send
a line" to so-and-so, head of such-and-such department. The
" lines " sent are usually simply the Councillor's card with " To
introduce," and the name of the applicant on the back. Another
one reads : " Dear Sir, — The bearer is trustworthy, reliable man.
If you have an opening in your department will you kindly give
him a start ? " Several Councillors, in addition to sending " lines,"
have come many times to managers and have pressed them to take
men on. Councillors and managers say that they would be glad
to be rid of these importunities, but they look upon them more as
a nuisance than an evil. One chairman said to his manager, when
the latter was appointed, " I shall doubtless send you many cards,

LABOR AND POLITICS. 23

but pay no attention to them." Others advise their managers that
the cards are merely to be looked upon as an introduction. The
convener of the Tramways Committee, Mr. Hugh Alex-
ander, a large manufacturer and employer of labor, -was first
elected to the Council on this very issue. A certain Councillor,
Cronin, who posed as a " labor man/' had boasted in public that
he had found some forty-seven places in the tramways department
for his friends, and he promised the municipal employees generally
that he would remedy their grievances. He had been sitting for
that ward for several years, but Mr. Alexander attacked him and
appealed to the voters on the ground that a man of such influence
was corrupting and a menace to efficient management of the depart-
ment. Alexander was successful by a good majority. He brought
up the claims of Cronin at the first meeting of the Council and
satisfied himself that Cronin's boast was unfounded and that he
had not secured positions for anybody. He was afterwards made
chairman of the Tramways Committee. This election has done
much to educate the public and to strengthen the hands of Coun-
cillors and managers against yielding to the importunities of appli-
cants. Extensive inquiries among both the friends and opponents
of municipalization in Glasgow indicate that Cronin's is the only
case of a Councillor who has made boasts or promises of this kind.
At the same time, Councillors would like to be relieved of the
pressure of applicants, and they state that if the resolution regard-
ing the Labor Bureau had not been made compulsory upon the
managers, but had been limited to requiring Councillors to refer
applicants to the Labor Bureau, it might have been adopted. The
issue, however, was evidently confused by the attempt of the
Labor members to convert what is really an ordinary private em-
ployment bureau into both a private bureau and a civil service
commission. The combination was impossible, because, as is agreed
by all, the great majority of registrations at the bureau were those
of relatively inefficient, often weak and underfed and almost unem-
ployable laborers. The managers of departments were able to make
it plain to Councillors that they could not consent to be limited
in their choice of employees to the applicants who came through
such an agenc3r. And no proposition was made or even imagined
of instituting a civil service commission. Such a measure was not
considered because it was recognized that the conditions of munici-
pal employment have greatly improved during the past twenty
years, and managers are given greater freedom and responsibility.
The reasons for this improvement are the greater publicity and
public interest, and the exposures of even the slightest indiscretions
in the management of departments, such as those above mentioned.
Twenty years ago a Convener would have thought nothing of recom-
mending old and inefficient men to easy positions, such as lamp-
lighcing, cleaning, watching, etc., but since the Labor Councillors
have secured the minimum wage resolution of twenty-one shillings
for municipal employees that form of pensioning worn-out em-
ployees of private firms has been stopped. The quasi-pensioners of

24 NATIONAL CIVIC FEDERATION.

the present time are those who have grown old in the department
and are transferred to lighter work. Of these there is a consid-
erable number in the gas department, but not many in the other
younger departments.

Besides Councillors and managers, several subordinate man-
agers who have the immediate supervision of employees were inter-
viewed and the methods and records of appointments, promotions
and dismissal were examined. The policy of Glasgow in the case
of chief and superior officials is to promote or transfer its own
men rather than advertise for applicants. This policy has critics
among those Councillors who believe that the positions should be
advertised. The issue was drawn especially at the appointments
of Mr. John Young and Mr. James Dalrymple as managers of the
tramways department. Mr. Young had been for several years
manager of the cleansing department, and had brought it to a
high state of efficiency, introducing many new features and greatly
enlarging its scope. Certain members of the Council contended
that the chief of the new tramways department should be an
electrical engineer, which Mr. Young was not, and advertised for
from the outside, bu{ they were overruled. Mr. Young on taking
with him to the tramways several of his subordinates from the
cleaning department, criticism was made that they were his friends
and relatives. It was shown that they were not relatives, though
they may have been friends. One of his assistants was Mr. Dalrym-
ple, a chartered accountant, who had been in the Chamberlain's
and Registrar's departments for thirteen years. Mr. Dalrymple
was made assistant manager, and when Mr. Young left Glasgow
to accept a position with the Yerkes underground road in London
on a much greater salary objection was made to the promotion of
Mr. Dalrymple that he also was not an electrical engineer, and it
was again urged that the position should be advertised. A similar
policy of promotion, rather than advertisement, was followed in
the appointment of the present managers of both the Gas and
Electricity Departments. In these cases, however, the appointees
were technical engineers. Mr. Wilson had been with the Gas Light
and Coke Company of London thirteen years, and was resident
manager of the Dawsholm station in Glasgow for thirteen years
when he was promoted to his present position. Mr. Lackie, Chief
of the Electrical Department, had been manager of one of the
stations, and when the former chief accepted a position with a
private company, objection was made to Mr. Lackie's appointment
on the ground of his youth and inexperience, but the advocates of
promotion carried their point over the advocates of advertisement.

A useful publication of the Glasgow corporation, established in
1898, is the " Annual Return of Officials and Salaries," showing
names, periods of service, salaries, and dates and amount of last
increase. From this return the following table is compiled, showing
the period of service of the leading officials in the three undertak-
ings investigated. It demonstrates clearly the results of the policy
of promotion and transfer.

LABOR AND POLITICS.

•* t-<M 00 t-

Q iH CO

26 NATIONAL CIVIC FEDERATION.

This policy of promotion is followed in all of the departments.
It is not governed by any rule or standing order of the Council, and
there is no rule of seniority, but the promotions, like the original
appointments, are made on the authority and responsibility of the
General Manager. The Labor member of the Council who had
charged that "promotion comes in some cases from outside influ-
ence " being asked regarding the matter, said that he had refer-
ence to the meter-readers in the gas department, and he considered
that they should be appointed by promotion from among the me-
chanics of the department instead of being selected from outside the
department. It turned out, however, that he was not aware of the
fact that the meter-readers are appointed by the Gas Treasurer,
and not by the Gas Manager, and that the Gas Treasurer, under the
Glasgow system, is a co-ordinate official with the Gas Manager, each
of them being independent of the other, and, indeed, intended to
be a check on the other, and both being responsible directly to the
Gas Committee. On this theory the Gas Treasurer appoints his
own force, and he looks upon his meter-readers as a part of his cleri-
cal force. He might appoint them from among the mechanics if
he chose to do so, but such an appointment would be in the nature
of a transfer rather than a promotion.

Clerks. One of the Labor Councillors made the charge that
preference in the appointment of clerks was given to the graduates
of a certain commercial school. On inquiry this Councillor stated
that in his opinion those positions should be opened to all who have
passed the common schools. He was not aware that the actual
method of appointment to clerical positions is through advertise-
ment; in fact, these are the only positions that are regularly filled
by advertisement. The procedure is to advertise anonymously in
a Glasgow newspaper, and then to set an examination for the appli-
cants who appear. Those who stand highest on the examination are
appointed. In this way naturally the graduates of the commercial
school obtain preference over those who have merely passed the com-
mon schools. Recommendations play no part in these appointments
except to the extent that the applicant is requested to give the names
of former employers, and these are then asked to write a reply to
inquiries regarding his character. In the tramways department
the chairman of the committee has recommended but one applicant
since holding his present position, and that was a lad who was em-
ployed as office boy. An examination of the appointments made
during the past six months shows that none of the appointees was
introduced by members of the Council.

Tramways — Permanent Way Department. One difficulty in
measuring the extent to which cards from Councillors are influential
in getting positions for applicants is the fact that usually the de-
partments do not keep a record of these cards. There is one excep-
tion to this statement, namely the permanent way department of the
tramways department. The superintendent of this department,
under instructions from the General Manager, has kept such a
record, beginning September 18, 1905. The object was to enable

LABOR AND POLITICS. 27

the department to keep account of what it was able to do towards
solving the problem of the unemployed. Parliament had created
"Distress Committees" in Glasgow and throughout Great Britain
to deal with this question, and Glasgow had its Labor Bureau for
the same purpose. The several municipal departments had agreed
to co-operate to the best of their ability, and one method adopted
was to carry out during the winter such permanent construction as
they could, in advance of the time when they would otherwise per-
form such work. This was to be done even though it should cost
the departments a larger sum than they would be compelled to pay
if they waited until the following spring and summer. The tram-
ways department had previously gone to the extent of furnishing
the Labor Bureau with blank forms to be filled in when the bureau
wished to refer an applicant to the department for employment.
Practically all of the applications received were on behalf of com-
mon unskilled laborers, and these could be employed only in the
permanent way department. Hence this was the only department
that has kept the record referred to. An examination of this record
for the three and one-half months, September 18 to December 31,
1905, during which time it was possible to carry on this kind of
work, shows the following summary: There were 120 applicants
with " cards " or " lines " from all sources. Of this number, 47 of
the cards were from Councillors, 33 from the Labor Bureau, 13 from
the army, and the remainder from private persons, including min-
isters, priests and charitable agencies. Of the whole number of
applicants the superintendent had employed only 25, but of this
number there were 22 who had cards from Councillors and only 3
who had cards from the Labor Bureau. In addition to the 25 who
had cards of recommendation, the superintendent hired 66 laborers
who had no recommendations, a total of 91 common laborers who
were put to work during the three and one-half months.

In explanation of these selections the superintendent stated
that the men who come with letters or recommendations are at the
bottom of the list and are almost unemployable. They do not stay
very long, but work two or three days the first week, then perhaps a
full week, then drop out. The best men have no recommendations
at all, and are simply employed at the gate, on their own applica-
tion. This statement is corroborated by the fact that none of the
twenty-five who had recommendations were employed at the work
that required strength or skill, such as the work of the " plate-
layer " or the pick-man. They were paid the minimum wages of 5d.
per hour, established by order of the Council, whereas the rate of
pay for the plate-layer and pick-man, whose work is not really
skilled but rather specialized common labor, is 5£d. per hour. The
Councillors, according to the superintendent, are more particular
than others in recommending men, and he could pick out a few who
never send a poor man.

Tramways — Works Department. In the works department,
where the cars are made and repaired, there are 542 employees. Of
the applicants during the past year the foreman believes that about

:rs NATIONAL CIVIC FEDERATION.

one in twenty had lines from Councillors. During this time he
has taken on but one man — a blacksmith's striker — who had a card
from a Councillor, and the Councillor in this case was the Lord
Provost. The majority of employees in this department are skilled
mechanics, and they secure their positions on personal application.
In practically all cases they get notice of a probable vacancy through
a friend or fellow-unionist already on the force, and then they apply
for the position at once. The changes during 6 months, February
and July, 1906, show the men leaving the service to have been 40
arti.-ans, 6 apprentices, and 16 laborers, and the men engaged were
57 artisans, 7 apprentices and 40 laborers, total 62 men leaving and
104 men engaged.

Car Cleaners. In the nine car sheds of the tramways depart-
ment, August 1, 1906, 349 car cleaners were employed. An increase
of 54 since January 1 was due to the increased number of top-cov-
ered cars. In all 86 men were hired during the six months. Six
of them had lines from Councillors and the rest either taken on at
the gate or introduced by drivers or conductors. The following
table shows the length of service of car-cleaners. The number, 86,
who have been employed during the past six months includes the
increase of 54, so that the actual number of changes made was 32.

Length of Service — Oar-Cleaners.

Over 5, under 6 years 37 12 years and over 4

Over 4, under 5 years 30 Over 11, under 12 years 2

Over 3, under 4 years 22 Over 10, under 11 years 2

Over 2, under 3 years 19 Over 9, under 10 years 1

Over 1, under 2 years 66 Over 8, under 9 years 3

Over 6 months, under 1 year . . 32 Over 7, under 8 years 8

6 months and under 86 Over 6, under 7 years 37

Total 349

Motormen and Conductors. The following table shows the
length of service of motormen and conductors :

Motor- Con-
men, ductors. Total.

Over 12, under 13 years 72 25 97

Over 11, under 12 years 70 37 107

Over 10, under 11 years 38 32 70

Over 9, under 10 years 57 25 82

Over 8, under 9 years 47 26 73

Over 7, under 8 years 91 37 128

Over 6, under 7 years 110 52 162

Over 5, under 6 years 114 67 181

Over 4, under 5 years 115 98 213

Over 3, under 4 years 146 89 235

Over 2, under 3 years 238 108 346

Over 1, under 2 years 95 207 302

Over <J mouths, uuder 1 year 3 56 59

Under G months 378 378

Total 1,196 1,237 2,433

The position of conductor-motorman (all platform men must
qualify in both capacities) is filled by appointment on the basis of

LABOR AND POLITICS. 29

an application schedule, a medical officer's certificate, and replies
to inquiries addressed to present and former employers covering not
less than five years. If the employing officer, the traffic superin-
tendent, on oral interview is satisfied that the applicant will not be
suitable for the position, he declines to give him an application
schedule. Here is where the influence of the Councillor is first felt.
A line from a Councillor will usually secure this much considera-
tion, that the applicant will be furnished with an application sched-
ule, which he is permitted then to fill out. The traffic superintendent
states, however, that during the six months ending August, 1906,
there have been appointed 378 conductors and that 8 of them pre-
sented lines from Councillors. This is a falling off from earlier
practice, which he ascribes to the rigid examination which has been
adopted. The applicant fills the schedule in his own handwriting,
stating his name, address, age, height, weight and whether married
or single. He gives his references to present and previous employers,
stating the length of service, nature of employment, reason for leav-
ing, date of leaving, and wages, and whether willing to join the
Departmental Friendly Society. These employers are then addressed
with a "private and confidential" blank schedule, which they are
asked to fill in, by answering the following questions :

' How long was applicant in your service?

' In what capacity?

' Reason for leaving?

' Is he of temperate habits?

' Do you know him to be honest?

' Do you know of any reason why applicant should not be employed

by us?
"And further remarks?"

Other persons, not employers, referred to by the applicant, are
asked similar questions, as follows :

" How long have you known applicant?

" Is he of temperate habits?

" Do you know him to be honest?

" Is he, in your opinion, a suitable man for the position for which

he applies?
" Any further remarks? "

The Medical Officer fills in a schedule on the following points :

"Age, height, weight, chest (normal, expanded), general conforma-
tion and development, feet, toes, joints, hernia or hydrocele, objection-
able scars, varicose veins, skin disease or chronic ulcers, rheumatism,
syphilis, condition of heart, of lungs, of blood vessels, urine (specific
gravity and albumen). Is applicant physically fitted for employment in
the department, and for enrollment as a member of the Glasgow Cor-
poration Tramways Friendly Society? "

An attache in the department examines the applicant and fills
out schedule as to sight; hearing and education, the tests being
made on colors, distance reading, astigmatism, distance hearing,
reading and writing.

The applicant is also required, upon a blank furnished for
the purpose, "to write a report upon the given subject, not more
than ten or twelve lines in length."

30 NATIONAL CIVIC FEDERATION.

These forms and answers are filed and they constitute the
eligible list, from which the appointments are made. After ap-
pointment, a detailed "record of service" is kept. The appoint-
ment is made at the discretion of the General Manager, and is^
practically by the hour, for the employee can be dismissed at any'
time, neither side being bound by a contract.

Electricity Department. Applicants for skilled positions in
the Electricity Department are required to fill in a schedule as
follows :

Corporation of the City of Glasgow — Electrioity Department.

Application.
To be filled up In Applicant's own handwriting.

1. State at full length your Christian and surname and place of

residence

2. Place of birth

3. Date of birth and present age

4. Height

6. State whether single, married, or a widower, and number of chil-
dren, if any

6. Are you a householder and is your house in the City of Glas-

gow?

7. If not, do you reside with relatives?

8. Are you active and strong and in the enjoyment of good health?

9. Are you free from bodily injury or defect, and are your sight and

hearing good?

10. Have you ever beenvin business for yourself?

11. Were you ever bankrupt or insolvent, or did you ever arrange with

creditors?

12. Are you security for any person?

13. How previously employed?

From 18 to 18

18 to 18

18 to 19

14. References ( 1 )

(2)

(3)

15. Can you refer to any one presently employed in the Electricity

Department? If so, Whom?

16. Can you refer to any one presently employed in any other Corpora-

tion Department? If so, Whom?

17. Are any of the Referees related to you?

18. In the event of being appointed do you agree to further and pro-

tect the interests of the Corporation, to devote your whole time
to the duties required of you, and engage not to enter into any
employment yielding income?

19. Nature of situation applied for

NOTE — It is a condition of any employment with the Glasgow Cor-
poration Electricity Department that any employee may at
any time be dismissed from the service without previous notice
or reason given, and the present Application is made in the
Applicant's knowledge of this condition.

Signature,

Date

During the current year 188 of these applications were filled,
and 15 of the applicants were engaged, of whom 5 came with
references from Councillors.

The unskilled laborers employed in the mains-laying branch
of the Electricity Department are divided into six groups of 250

LABOR AND POLITICS. 31

men when the force is full. Three of the foremen of these gangs
have held the position for thirteen years, one for ten years, and two
for seven years. Laborers are not hired by the foremen, but by
the head of the mains-laying dpartment. During the past year
the department has taken on 182 laborers, and while no record is
kept of this class of employees, the manager thinks that not more
than one-sixth of them had recommendations. This depart-
ment has not entered into the arrangement referred to above of
providing work for the unemployed. The manager is confident
that of the one thousand men in his department, nine hundred
have entered entirely self-recommended.

Gas Department. The managers of the several stations in
this department have in times past received a large number of
letters from Councillors, as did the present General Manager when
he was in charge of one of the stations. Yet he thinks these " lines "
do not affect one per cent, of the appointments. No record is kept
of recommendations. The lines now come generally to the General
Manager, who then sends them to the station managers. The
managers are instructed by the General Manager to pay no atten-
tion to a recommendation unless the man is quite as suitable as
anybody else. The foremen do not employ the workmen, — they are
employed only by the General Manager. Each season there are
some five hundred applicants for the two to three hundred positions
to be filled. The lines from Councillors are effective to the extent
that the applicant thus equipped will secure an application schedule,
which he is permitted to fill out, whereas a large number without
such lines are not given an application schedule. All new employees
go first into the yard as laborers, promotions being made to the
retort house and the other better paying positions. Old men have
not been taken on by this department, although the practice was
formerly quite general of finding positions for them as lamplighters
under the Watching and Lighting Committee. The minimum wage
resolution, as noted previously, has put a stop to this practice.
Fully eighty per cent, of the men taken on each year in the Gas
Department are old hands who have been laid off in the spring.
Men are discharged by the station manager, and they have an
appeal to the General Manager. Many of them write to the Town
Clerk, and he lays their communications before the Gas Commit-
tee, but never during the time of the present manager has the
committee entertained an appeal of this kind.

Following is a copy of the application schedule used in the
Gas Department for unskilled labor. The name of the person
recommending the applicant does not appear unless by way of
reference when he has been a former employer:

Preferences in General. In the several departments it is the
opinion of all those who employ workmen that men with lines from
Councillors are not likely to be efficient. They look with suspicion
upon such applicants, and they take the ground that competent men
do not rely upon influence to get positions. This is true not only

32 NATIONAL CIVIC FEDERATION.

of applicants with lines from Councillors, but also of those having
recommendations from others.

There are two forms of preference which are generally given
to applicants, other things being equal. One is the preference to
married men over unmarried, though this is not stipulated by order
of the Council. The other is the preference to ratepayers, provided
by the following resolutions of the Council :

Adopted by the Corporation on 3d February, 1899.

Councillor O'Hare's motion, of which he gave notice on 14th Novem-
ber last, was agreed to, and the Corporation resolved and ordered In
terms thereof: "That this Corporation of the City of Glasgow (Police
Department) declare that the ratepayers of Glasgow have a preferen-
tial claim for employment under said Corporation (Police Department),
and hereby instruct the Manager of each Department to give a prefer-
ence, other things being equal, to ratepayers applying for employment."

" This motion applies to all the Departments of the Corporation."

It is significant that a leading objection raised by Labor
members, in criticising the practice of Councillors' recommenda-
tions, was the preference given to outsiders over ratepayers in
violation of the spirit of the above resolution. This is true, not-
withstanding the managers look upon the cards from Councillors
more as a guaranty that the applicant is a Glasgow ratepayer and
therefore as an aid to them in carrying out the resolution. In so
far as the criticism holds true, it would indicate that Councillors
do recommend others besides their political supporters, since it is
only ratepayers who have votes. Managers find that young men
from Ireland or from the country are of stronger physique and
are less dissipated and more reliable than many who are residents
and ratepayers, and the fact that they give preference to such men
in the face of the resolution of the Council indicates the absence
of a political machine or of political influence. This, however, gives
rise to another criticism, namely, that foremen, officials, and Coun-
cillors bring in their friends from outside the city and get positions
for them. Such is the fact to a certain extent, since outsiders
naturally look to officials in the departments who have previously
come from their neighborhood and have gotten positions and pro-
motions. Whatever may be said in criticism of this practice, it
also indicates that in so far local politics and election promises
do not control appointments.

On the whole, the field in which "pull" and "influence"
are effective in Glasgow in getting position and promotions is
personal rather than political in character. The criticisms are all
confined to charges of giving preference to friends, relatives, aged
and worn-out employees, non-residents from the home neighborhood
of Councillors or officials, and destitute or unemployed workmen.
The only Councillor who in recent years claimed to have aided his
political supporters was signally defeated in the election on that
issue, and his opponent has been twice re-elected and then advanced
to the chairmanship of the Tramways Committee. That there is
a considerable amount of non-political influence there is no doubt.
Its importance lies in the fact that with manifold more applicants

LABOR AND POLITICS. 33

than there are positions large numbers must be turned away with-
out even being permitted to fill out an application schedule; but,
backed by the influence of Councillors, they are at least admitted
to the list of formal applicants and can get their qualifications and
references examined into. This evidently places them in a better
position than those without such influence, and it rests only on the
firmness and sense of responsibility of the General Managers, and
the tone and business character of the Councillors, to prevent the
departments from being burdened with an inefficient class of recom-
mended employees. The fact that the pressure of applicants upon
Councillors for their influence is extreme and continuous, that some
of the Councillors yield to it and in turn press upon managers
for appointments, and that applicants who have the backing of
Councillors have at least a limited advantage over other applicants,
has led certain Councillors and managers to look with favor upon
the creation of a municipal employment bureau different from the
existing labor bureau, to which Councillors should be required to
refer all applicants. Their ideas of such a bureau, however, are
not clear, and they object to a civil service commission similar to
that of American cities, both on the ground that managers in mak-
ing appointments should not be tied down to the applicants through
such a commission, and because they fear that it would prevent
managers from dismissing employees at will. They approve of a
commission or bureau that would eliminate Councillors from the
question of appointments, but object to one that would restrict
managers.

Leicester Gas Department.

A former Labor member of the Leicester Town Council states
that to his personal knowledge " workmen get work on the corpora-
tion through the influence of Labor and other Councillors. Appli-
cants must have the backing of Councillors and others. In fact,
many workmen vote for labor men in hope of getting work and the
candidate has encouraged this hope of getting work when seeking
the workman's vote. And if the hoped-for work is not found, men
have said: '"When are you going to get us a job? What did we
elect you for, if not to get work, and if you do not get us jobs we
shall not vote for you again.' ''

This Councillor, however, entirely exonerates the Gas and
Electricity Department from his charge of employing workmen
through the influence of Councillors. This exception, he said, was
owing to the great ability and the firm character of the manager
of that department. The only instance of irregularity of which
he knew in that department was the case of a foreman of painters
who, through familiarity with his men, had lost control over them.
Their work had cost some thirty per cent, more than it should
have cost through their slackness and lack of discipline. On in-
vestigation it was found that the Councillor was misinformed as
to the facts, namely, that the manager, as soon as he discovered the
situation referred to, had discharged the foreman and his entire
gang, and had employed others in their places. The matter after-

Vol. III.— 4.

34 NATIONAL CIVIC FEDERATION.

wards came up in the committee and in the Council, and the
painters' union entered a protest, but the manager was sustained
and the matter was dropped.

Eespecting this ex-Councillor's charge of favoritism and in-
fluence in other departments we have not made investigation, as
these departments were not included in our inquiry.

Other Municipalities.

The question of the influences controlling appointments to
municipal jobs was more carefully examined in Glasgow and
Leicester than elsewhere because it was brought to our attention
in those cities. The only other undertaking against which charges
of Councilmanic influence were heard was the tramways of Shef-
field. As this undertaking was not included in our assignment for
inquiry, the facts were not thoroughly examined, but we are con-
vinced, from the statements of Councillors, trade-union agents,
and conductors on the cars, that recommendations of Councillors
are an important requisite in securing positions in that service.
How extensive this influence is and how many of the employees
owe their positions to this sort of favoritism we have not learned,
but the number seems to be large and indeed the practice seems to
be accepted as the proper method. Both Councillors and conductors
mentioned it as a matter of course. A similar situation was not
encountered in any other municipality.

We have, however, met but one instance where a municipal
Council or committee managing an undertaking has taken any
formal action to prevent the interference of Councillors in making
appointments of employees. This is the Manchester tramways,
whose committee, at the very beginning of the municipal under-
taking adopted a resolution expressly prohibiting the manager
from paying attention to the recommendations of Councillors. The
resolution is as follows:

" Resolved, That it be an instruction to the officials of this commit-
tee that all letters presented by those seeking employment from members
of the Council be ignored, and that a preference be given to those men
who apply in the legitimate way."

As far as we were able to learn this resolution has been strictly
complied with, and its significance will again be*mentioned in con-
nection with the organization of the tramway workers in Man-
chester.

In general, the subject treated of in the foregoing paragraphs
has attracted but little attention in the municipalities visited except
Glasgow, Manchester and Leicester, where the policy of municipal
ownership has been carried the farthest of all the places visited.
In these cities it seems to have aroused more public interest and
criticism than elsewhere. The only criticism encountered in Shef-
field proceeded from certain labor leaders. Others did not look
upon the practice critically, but accepted it as a matter of indiffer-
ence, pointing to the alleged success of the enterprise as proof of
its harmlessness.

LABOR AND POLITICS.

Glasgow Corporation Gas Department.
MEMOBANDA.
Reference No Remarks.

RAfArAnr»AS wHttAn fnr 19ft

T—

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. as • . . . . r5 • .

. T-l • . . . . . • • 05

: : : : : ::••:: g
::,: M :||ji 1

• • ' &a

Ise information
•Ml

APPLICATION SCHEDULE.

(To be filled up by Applicant. Nothing to be entered by Applicant above this.)
Full Nnmp. . Position Aonlied For...

4
4

T:
<

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'

S 50 ' ' • • • : o
DO g . . • • : :+•» o

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0 05-

ge Height, ft ins. Weight, i

Questions.
Are you at present in good health?
From what ailments have you suffered?
(Mention only those which lasted more than one week.)
How long have you been resident in Glasgow?
How long have you been a ratepayer in Glasgow?
If you have been previously employed in a Gas Works, } At
state fully where, and at what kind of labor you vas
were employed. ) from . . .

REFEEENCES.
Applicants who have been employed in Public Works will give

T>rocAril- r>T- loot mmnlmror TMatno nnrt AHrlrasa

' 03 ja

P~ n

• a fl

) • • •

• § >
'. fl'S

* . .

i : : : -g : : ; s 35

IT.- ••«•••&$

> . . .

"4 • .

. 03 fl)

Length of time in his service,
Nature of employment
Reason for leaving
2. Previous Employer, Name and
Length of time in his service,
Nature of employment,
Reason for leaving,
NOTE. — It is a condition of
is found to hav

<1 r-( N CO •* >O i-

36 NATIONAL CIVIC FEDERATION.

ORGANIZATIONS OF EMPLOYEES.

The managers of all the municipal undertakings investigated
for this report have adopted the policy of negotiating with the rep-
resentatives of their organized employees. This representative may
be either an employee of the department or the secretary or business
agent of the union. In the latter case the managers satisfy them-
selves first that the representative is speaking for employees who
are actually members of the union. They make, however, a distinc-
tion in the character of the grievances or demands which they will
take up with the organization. They will not discuss a matter
affecting only individual employees, such as a question of promo-
tion, dismissal, reinstatement, or other particular involving the dis-
cipline of the department. In all cases they refuse to restrict em-
ployment to members of the union, maintaining what is known as
the " open shop." But they do not object to the employees' joining
a union, although in two cases mentioned below the management is
charged by a union official with utilizing friendly societies to pre-
vent trade-union organization. While the managers negotiate with
the union representatives regarding any question affecting a class
of employees, they will not deal with the union in the cases of indi-
vidual employees. All questions of wages, hours, conditions of em-
ployment and amount of work are frequently taken up and decided,
sometimes by negotiation and sometimes by arbitration. In times
past there have been disputes which have resulted in strikes, but the
latest strike of which we have learned in any of the municipal enter-
prises investigated occurred in 1899. The policy of the municipal
corporations in establishing a minimum wage for unorganized labor
and trade-union wages for organized labor, together with the policy
of managers in recognizing and dealing with unions, has practically
eliminated strikes from these enterprises. In fact, as regards some
of the undertakings, trade union officials complain that conditions
are so much better than those their men could obtain in private
employment that it is impossible to get them to join a union. Some
of the older unionists and some union officials interviewed look upon
this situation as objectionable, on the ground that it diverts the
attention of wage-earners from the effort of building up their
unions as fighting organizations to the contrary policy of relying on
politics and elections. In this view they are supported by certain
facts and controverted by others. Their most significant support is
found in the recent appearance and rapid progress of a singular
form of trade union known as the Municipal Employees' Associa-
tion. This organization was founded in 1894 and had a slow
growth until 1904, when its membership reached 6,410. Since that
time is has increased rapidly, and claimed 13,000 members in
March, 1906. Its General Secretary states that during the present
year the number of members has been increasing at the rate of 2,000
per quarter.

The principles of the Municipal Employees' Association are
new in the field of trade unionism in that the association rejects
altogether any resort to strikes, and openly avows its purpose of

LABOR AND POLITICS. 37

securing its demands through public opinion, the election of
friendly Councillors, and the defeat of unfriendly ones. Its officers
state that public opinion and the ballot are the two weapons in the
hands of municipal employees which the employees of private com-
panies do not possess, and that effectively to use such weapons they
need a separate organization. The regular trade unions, they assert,
do not pay attention to the grievances of municipal employees, since
they are more interested in the mass of workmen outside. There
is a common interest among all employees of municipalities, no
matter how widely separated they may be in the character, intelli-
gence or skill of their work. The street sweeper, the bath attendant,
the motorman, the fireman, the skilled mechanic, and all who are
employed by a municipality, can be of greater assistance to one
another when they come together in one organization than when they
are controlled by those whose interests are in private employment.
If they join only the several unions of their trades, they are com-
pelled to deal separately with their common employer, and cannot
make their appeal to the public opinion of the voters or to the Coun-
cillors or to the councilmanic candidates at election time. It is
because municipal employees are beginning to recognize this com-
mon interest which separates them from other workers that has led
to the recent rapid growth of the Municipal Employees' Asso-
ciation.1 -^,

1 In one of its organizing circulars the Municipal Employees' Asso-
ciation sets forth its claims and metho'ds as follows :

Why We Want a Society, and Why Every Muniaipal Employee Should
Be a Member of the Municipal Employees' Association.

(1) Because unity is strength.

(2) Because we can get all information as to the wages, hours of

labor, emoluments, etc., from every town for each class of
work.

(3) Because we could use our collective influence to get equal wages

and hours, emoluments, etc., for the same kind of work in
every town.

(4) Because we could use more influence if altogether, and acting to-
gether through one channel — i. e., 10,000 men in one Associa-
tion is stronger than 1,000 in ten different Associations.

(5) Because you require a man to represent you who has had expe-

rience in the service of a municipal body.

(6) Because the officers of this Association have worked for years

for a municipal body, and, therefore, know the way to approach
and deal with local authorities for you better than others who
have never worked for a public body.

(7) Because you get more benefits in this Association than any other

for 2$d. per week.

(8) Because it is estimated there are nearly 2,000,000 municipal em-

ployees in the United Kingdom. What could they not do for
themselves if altogether?

(9) Because we are promoting a Superannuation Bill for all municipal

employees not at present entitled to a pension.

(10) Because each branch Jiolds its own funds.

(11) Because, no matter what class of work we do, we have the same

Aldermen and Councillors to work under in each town.

(12) Because nearly every grade of municipal employment is repre-

sented already in the Association — I. e., tramway employees

38 NATIONAL CIVIC FEDERATION.

Of course this appeal to a common interest is based on the
assumption that they can get higher wages and better conditions in
municipal employment than the others can get in private employ-
ment. This assumption is seen in the demands of the Municipal
Employees' Association. They ask for a minimum wage of thirty
shillings in and around London and twenty-eight shillings in large
Provincial towns; 48 hours per week; twelve days' holiday per
annum, with pay; a pension on superannuation; half wages when
sick and full wages when incapacitated through accident. These
wages and conditions are far beyond what similar workmen could
hope to get in private employment and even greatly in excess of
what is now granted by the municipal corporations. The minimum
wages of municipal employees in the places investigated range from
21s. in Glasgow to 26s. in Leicester, compared with wages for sim-
ilar work in private employment of 18s. to 21s. The hours for all
such common labor are 53 and 54 per week; there are either no
holidays or not more than three or four per year, and no wages
when sick or incapacitated. If the Municipal Employees' Associa-
tion should be able to organize this class of workmen and win its
demands, it would place them in a most enviable and favored posi-
tion, compared with private employment.

(an grades), asylum employees (all grades), electricity works
(all grades), telephone employees (all grades), gas workers
(all grades), park employees (all grades), weights and meas-
ures testers and Inspectors, engine drivers (all kinds of en-
gines), boiler stokers, sewer men, fire brigade men, carmen,
pickers, general laborers, masons' laborers, sweepers, and In
fact all grades.

(13) Because you should support an Association founded by municipal

employees in preference to other societies established by others.

(14) Because concessions, estimated to cost the municipal authorities

upwards of £2,000,000 per annum, have been obtained by us.

(15) Because we have never been defeated by a municipal body yet.

If they decline a request to-day, we are up and at them again
to-morrow.

(16) Because there is no need for strikes with us. We can get what

we want without them, if we are united, by returning to the
Council men who are in favor of fair conditions of employment.

(17) Because we are financially sound, and our accounts have been

examined by chartered accountants, and we give each member
a balance sheet quarterly, free.

(18) Because we have no age limits or medical examinations. We aay

the strong helps the weak, and the young the old, because we
are all engaged in municipal employment.

(19) Because we get concessions; not shout and rave about them.

(20) Because we, at present, represent the employees under ninety-flve

municipal authorities.

How We Do It.

(1) By questions to candidates at municipal elections. Those who

will not pledge themselves definitely to the above, we do not
vote for.

(2) By application through the society, by petitions from the em-

ployees, etc.

(3) We do not advocate strikes or lock-outs, but give our members the

money back which could be used in this way in death benefits.

LABOR AND POLITICS. 30

In this respect the policy of this association is directly in con-
flict with and even antagonistic to the policy of trade unions. Their
policy, as found in all of the places visited, has been embodied in the
standing orders or resolutions of Councils, and is to the effect that
wages, hours, and conditions shall be those recognized and practised
by the private employers and trade unions of the town or district.
In case of unskilled labor, if there is no union, the Council desig-
nates a minimum wage and maximum number of hours to take the
place of the trade-union standard, and supposed to represent the
wages paid by the best class of private employers. These standing
orders govern the employees of the municipal departments, and a
clause to the same purpose is inserted in the municipal contracts
for work to be done by private bidders.

The policy of these standing orders may require a reduction of
wages as well as an increase. This, indeed, has occurred. When the
plumbers in Glasgow, for example, had a dispute with their em-
ployers and after a strike the wages were reduced halfpenny per
hour, the same reduction was made in the wages of plumbers in the
gas department, although the department had taken no share in the
dispute, and its plumbers had continued at work during the strike.
While the officials of the Muncipal Employees' Association condemn
it, the trade unions approve even of this outcome, because it serves
to identify the interest of those who have municipal employment
with the interest of their fellow tradesmen in private employment.
Even if it is not necessary for them to strike in support of private
employees on strike or lockout, they at least would recognize their
own interest in supporting the union and the strikers by their dues
and contributions. Trade unionists take the ground that if municipal
employees have better conditions than private employees they will
consider themselves a separate class and refuse to join the unions or
to help in their work of improving the conditions of labor in gen-
eral. This would nullify and even antagonize one of the main
objects which trade unionists have had in mind when advocating
municipalization. Indeed, it is a settled policy of all the strictly
trade-union members of muncipal Councils, as distinguished from
the Socialist members, to refuse to take up the grievances of any
municipal employees unless they are members of the union for their
trade, and then they refuse to advocate on their behalf any condition
superior to those which the trade enjoys under the more favorable
class of private employers.

In both of these respects the Municipal Employees' Association
conflicts with the regular trade unions. It leads to a jurisdictional
struggle, because it endeavors to get the same workmen whom other
unions claim for their own membership. This conflict has not until
recently emerged into the open, because the Municipal Employees'
Association has been insignificant in numbers, and because it has
avoided conflict with the older unions of skilled mechanics. Its
policy has been quite different in dealing with these older and
stronger unions from that in dealing with the newer unions of
unskilled workmen. In the case of the older unions it does not

40 .NATIONAL CIVIC FEDERATION.

invite mechanics to abandon the union of their trade but invites
them to belong to both unions and to pay two sets of dues. Its own
dues are only 2£d. per week as against at least 6d. paid in the
unions of skilled men. But in the case of other workmen who are
eligible to the more modern unions of semi-skilled and unskilled
workmen, the Municipal Employees' Association either solicits them
to abandon their special union or discourages them from joining it.
This class of unions therefore began an attack upon the Municipal
Employees' Association during the last year with the object of driv-
ing it out of the general trade union movement. Therefore it had
the support of that movement, and had representatives in the Trades
Union Congress and in local Trade Councils. In fact, while antago-
nizing other unions represented in these bodies, it relied upon its
membership in such bodies for its weapons of public opinion and the
election of friendly Councillors. The unions which recently began
the attack upon this anomalous association with the object of de-
priving it of this support are the Tramway and Vehicle Workers,
the Coachmakers, the National Amalgamated Union of Labor, and
the Gas "Workers and General Laborers. These unions submitted
identical resolutions to be acted upon at the Thirty-ninth Annual
Trade Union Congress, held at Liverpool in September, 1906, as
follows :

" Resolved, That any method of organizing which seeks to divide
workmen employed by public authorities from their fellows in the same
occupations employed by private firms is detrimental to the best inter-
ests of trade unionism, and that the Parliamentary Committee use its
best endeavors to prevent the spread of such methods of organization."

The resolution was carried by an overwhelming majority, the
vote being 1,196,000 against only 42,000, and henceforth the Muni-
cipal Employees' Association, as well as similar unions in govern-
ment employment, are excluded from the support of trades unions
and their principles are repudiated.

Although the Municipal Employees' Association has increased
its membership rapidly, its 13,000 members are as yet but a
small proportion of the employees of public authorities. It is even
possible that its strength is exaggerated, for of the eighteen local
branches officially reported for Glasgow there were only three which
were paying dues to headquarters at the beginning of 1906, and the
total membership in Glasgow had fallen off one-half since the be-
ginning of 1905. A change of officials, however, in the position of
" Organizing District Secretary " is bringing about a recovery in
membership. The official report for March, 1906, states also that
the organization has fifteen branches in the tramway service of the
London County Council, and seventeen in other departments; two
in the tramways department of Manchester and twelve in other de-
partments: and one branch at Leicester. The organization is not
represented in Birmingham or Liverpool. The two branches in
the Manchester tramways department are in conflict with the Tram-
way and Vehicle Workers' Union, which includes 90 per cent, of the
employees and has represented them in arbitration proceedings.

LABOE AND POLITICS. 41

Altogether, the Municipal Employees' Association claimed in June,
1905, to represent employees of ninety-five municipal authorities.

Another peculiarity of the Municipal Employees' Association
is its demand for the " right of appeal to the committee by any em-
ployee in case of dispute before dismissal." This demand conflicts
with the position taken by managers that they will not discuss with
a union questions of discipline affecting only individual employees,
a position which is conceded by other trade unions. To what extent
the Municipal Employees' Association has been able to win this de-
mand has not been discovered. Its quarterly reports contain state-
ments of " concessions," under which appear items like the fol-
lowing : " Three men reinstated ; " "five men promoted and a
number of men who had been dismissed taken on again ; " " right
of appeal ; " and so on. These " concessions " cannot always be
taken at their face value. Two of their alleged concessions in the
tramways department of Glasgow, relating, however, not to disci-
pline, but to conditions of work, were inquired into, and in one case
their claim was found to be correct and in the other unfounded. It
appears that their officials take credit for a greater part if not all
improved conditions and wages of municipal employees in towns
where they have a branch.

Besides the Municipal Employees' Association, there are a few
other unions made up mainly of municipal employees. This, how-
ever, is an accident growing out of the fact that municipalities
have taken over the particular enterprises which employed the given
class of labor. These unions are not confined to municipal em-
ployees, but their rules include the employees of private companies
in the same line of work. This is noticeably true of the Tramway
and Vehicle Workers' Association, which has local branches under
both private companies and municipal corporations. But, on ac-
count of the greater proportion of municipal undertakings in the
United Kingdom, as well as the lesser amount of opposition to
unionizing, the number of branches affiliated in this union in
municipal corporations is some six-fold greater than the number
in private companies. The same is true, though to a lesser extent,
of the dozen or more unions of laborers and gas workers. These
are usually organized under the form of national unions, including
employees both of companies and municipal corporations. But in
some cases they have narrowed down to mere local organizations,
and in one instance coming under our investigation, that of the
Amalgamated Society of Gasworkers, Brickmakers and General La-
borers, the union includes mainly employees of the Corporation of
Birmingham. In that city the employees of private companies
belong to a strictly national union, that of the Gasworkers and
General Laborers, with headquarters at London. The two unions
act in harmony, although separate in administration. Birmingham
has also, nominally, a union of " Municipal Employees," founded
in 1875, but it has dwindled to insignificance, while another union
of " City Park Men " disappeared in 1905.

42 NATIONAL CIVIC FEDERATION.

In the same class are minor unions of firemen, stokers, en-
ginemen (stationary engineers), dynamo tenders and drivers, and
similar specialized or semi-skilled workmen. These are poorly
organized; they have only a local strength here and there; their
membership is often miscellaneous and indefinite, and they some-
times lay claim to a jurisdiction which overlaps that of the tram-
way worker or general laborer.

The peculiarity of these unions of unskilled or specialized
workmen is that they are comparatively recent; they originated
under the influence of the Socialist movement of fifteen to twenty
years ago ; and they have always been semi-political. In this respect
they differ from the old-line trade unions of skilled mechanics,
although the majority of these have in the past five years followed
them into the political field.

GAS WORKS.

The National Union of Gasworkers and General Laborers of
Great Britain and Ireland, organized in May, 1889, was the pioneer
of these unions of the unskilled. Its organizers and leaders were
John Burns, Tom Mann, Ben Tillett, and Will Thorne. At first
it included only the stokers and retort-house men employed by
the private companies in the London area. Here its success was
marvellous and unexpected. Its demands were granted by all of
the companies without a strike. They consisted in a reduction of
hours from twelve to eight, an increase in the number of shifts
from two to three, a corresponding reduction in the amount of
work, and no reduction or even a slight increase in the week's
wages. The effect of this success was revolutionary in the industry
throughout the United Kingdom. Local unions of gas workers
were formed independently, or through agents of the London union,
and before the year was ended practically all of the gas workers
in the Kingdom had secured the same conditions as those in Lon-
don. In the case of the private company at Newcastle a joint
delegation from the company and the union visited London in
December, 1889, under an agreement to adopt the London scale of
hours -and amount of work and a proportionate increase in wages.
In all of the corporations as well as the companies included in our
investigation, the two-shift and twelve-hour system in the gas
undertakings had been in vogue, and in all of them the three-shift
and eight-hour system dates from 1889. In all of these seven enter-
prises the unions secured their demands without a strike, but in
two of them — Manchester Corporation and South Metropolitan
Company — there were strikes which occurred the following January.
The Manchester strike was led by a revolutionary Socialist who hap-
pened to be the local secretary, in sympathy with the union at
Salford. It was unauthorized and not sanctioned by the national
union, and resulted in the defeat and dissolution of the union. The
eight-hour and three-shift system, however, was not lost, and the
national union has since that time largely recovered its ground and
has been recognized by the manager and the Gas Committee in

LABOR AND POLITICS. 43

negotiations which have brought about further increases in wages
and reductions in the amount of work.

The South Metropolitan strike grew out of the attempt of
the company to increase the amount of work to be done within the
eight hours and its attempts to introduce a profit-sharing or bonus
scheme and a twelve-month contract with individuals designed to
keep the yard laborers out of the union and to win the retort-house
men from allegiance to the union. The union was defeated, the
profit-sharing plan was adopted, the amount of work was increased,
and the twelve-hour and two-shift system was restored in two
stations by vote of the unorganized gas workers, on the ground
that the increased amount of work was too much for eight hours.
In two other stations they voted to retain the eight-hour and three-
shift system, the rate of pay according to the amount of work
being the same under both systems. The union has not been re-
organized, although it is said to have a few secret members in
some of the retort houses. With the above exception at the South
Metropolitan works the eight-hour system prevails in the retort
houses of all the plants investigated, both municipal and private.

The only other undertaking in which the National Union of
Gasworkers and General Laborers has members is the municipal
gas works at Leicester. These are members of a strong local branch
of general laborers, but the number in the gas works is very small
and is confined to one station. The officers of the national union
have recently attempted to organize the gas workers of Leicester,
but did not succeed because the wages and labor conditions were
already better than anything the union could propose. Some of
the other places where the union claims members are the municipal
plants of Bradford, Huddersfield, Leeds, Nottingham, Swansea
and the private company plants of Sunderland and Carlisle. In
the employment of other private companies the union has iron,
steel, and tin plate workers, foundry laborers, quarry workers,
building laborers, rubber workers, laborers in cotton mills, ship-
building and engineering works, window cleaners and car-shed men
in tramways. The total membership of the union in 1905 was
30,000.

The Socialistic and political character of this union may be
seen from the statement of its " objects " as they appear in its
organizing circulars. They are as follows:

1. To shorten the hours of labor, to obtain a legal eight hours'

working day or forty-eight hours' week.

2. To abolish, wherever possible, overtime and Sunday labor, and

where this is not possible, to obtain payment at a higher
rate.

3. To abolish piecework.

4. To raise wages, and, where women do the same work as men,

to obtain for them the same wages as paid the men.

5. To enforce the provisions of the Truck Acts in their entirety.

6. To abolish the present system of contracts and agreements

between employers and employed.

7. To settle all labor disputes by amicable agreement whenever

possible.

44 NATIONAL CIVIC FEDERATION.

8. To obtain equality of employers and employed before the law.
0. To obtain legislation for the bettering of the lives of the working
class.

10. To secure the return of Members of the Union to Urban District

Councils, Boards of Guardians, Municipal Bodies, and to
Parliament, provided such candidates are pledged to the
collective ownership of the means of production, distribu-
tion and exchange.

11. To set aside annually a maximum sum of £250 from the Central

Fund, to be used solely for the purpose of helping to return
and maintain members on public representative bodies.

12. To assist similar organizations having the same objects as herein

stated.

In line with its political policy the union has at times nomi-
nated its officers as candidates for legislative positions. As early
as 1892 its General Secretary, Will Thorne, stood for Parliament
in the district of West Ham, and in the election of 1905 four of
its general and district officers were candidates, and three of them,
including the General Secretary, just mentioned, were elected and
are now members of Parliament. -

In addition to its political program, this union differed from
the old-line trade unions in the early days of its organization by its
rejection of benefit and friendly-society features. These were be-
lieved to have weakened the older unions and to have made them
timid in their attitude towards employers and selfish towards the
unorganized. The new union was intended to be only a fighting
organization and its benefits were limited to the aid of men during
contests with employers. But the force of circumstances, es-
pecially the extreme fluctuations in its membership, has induced
it to annex benefits for disablement, accident, sickness, death and
burial. These are secured, however, by extra payments in addition
to the low regular dues of 3d. per week. The union also furnishes
legal aid to all of its members in protecting and prosecuting their
rights under the Compensation Act, Employers' Liability Act and
the common law.

National Amalgamated Union of Labor.

Similar to the union of Gas Workers and General Laborers,
and organized in the same year, 1889, is the National Amalgamated
Union of Labor, with headquarters at Newcastle-on-Tyne. Its mem-
bership in 1905 was 18,000, covering sixty-two occupations, mainly
in private employment. At Sheffield, this organization has some
3,800 members, of whom about 700 are in the several municipal
departments. The local secretary at that place has been for three
years a member of the municipal Council. The Gas Workers and
General Laborers have also an organization among private em-
ployees at Sheffield, but neither organization has any representa-
tives in the employment of the Gas Company. The former local
union of the Gas Workers disappeared gradually, owing in part to
the shrewd management of the company and the well-known
hostility of its president, who had successfully attacked and de-
feated the union of file makers in another enterprise. The gas

LABOR AND POLITICS. 45

workers' union, however, had received the eight-hour day and ad-
vances in wages, and it retained the older men as long as hand-
stoking was in vogue. But with the introduction of mechanical
stokers these dropped out, and the union has not been reorganized.

The position of the Sheffield company is most significant and
instructive from the standpoint of unionism and labor conditions.
The limits placed by Parliament on the amount of capital issued
and on the rate of dividend at 10 per cent, of that capital, as
well as the limit on the reserve fund, compel the company to use
its surplus earnings either in permanent improvements, in reducing
the price of gas or in raising wages. It has done each of these
things, since the Parliamentary limits have long since been reached
and no extension of these limits has been secured. In addition to
these fiscal limits, the Municipal Council of Sheffield elects three
of its own number to be members of the Board of Directors of
the Company. They are not allowed to be shareholders or to have
any interest in the Company whatever, and they get no compensa-
tion for their services, although the other nine directors, elected
by the shareholders, have £2,000 divided annually among them.
The municipal directors are, of course, a minority, but they are
entitled to sit at all of the official meetings of the board, to be
placed on the three sub-committees, and to have access to all the
works, offices and accounts, the same as other directors. They are
elected annually, and for several years one of these municipal di-
rectors has been a labor member of the Council, the oldest member
(twenty years' service) on the Council, and secretary for twenty-
two years of a local union of file makers. He has considered it to
be his duty not only to guard the interests of the municipal cor-
poration and ratepayers in the Board of Directors, but also to
guard the interests of labor. On all occasions when wages, hours,
and conditions of the Gas Company's employees have come before
the board he has endeavored to secure for them liberal allowance.
His presence on the board, coupled with the large surplus earnings
not permitted to go to dividends, has been a factor in securing
and maintaining the wages and hours enjoyed by the employees
of the company. In the case of laborers the minimum wages are
the same as the minimum paid by the municipality of Sheffield,
although there are but few employed at that rate. In the case of
mechanics the policy of the company is to observe the trade-union
rates of wages for the town, although there are exceptions to the
policy, to be noted later. The wages of common laborers, which
in some cases are as good and in other cases even better than those
which either a trade union or the municipal corporation secures in
Sheffield, have had the effect of loosening the hold of the union on
the employees. They look to the labor Councillor on the Board
of Directors to protect their interests, in much the same way that
the gas workers in the municipal enterprises look to the labor
Councillor instead of the union.

There are, however, certain disadvantages under which this
trade-union Councillor and director labors. Instead of being placed

46 NATIONAL CIVIC FEDERATION.

on the works sub-committee which deals directly with the manage-
ment of the employees, he is placed on the accounts committee;
and since there is no organization of the employees and consequently
no representative to speak for them, he is not informed of their
grievances as they arise and is not in a position to investigate them
to advantage. Employees who complain of grievances have not
made them public nor brought them to his attention, and they
speak of them only in confidence, owing to their fear of being
discharged. This is true of the cases where the company is not
actually paying the trade-union rates of wages and of the cases
where the amount of work required of stokers has been increased.
This latter grievance stirred up a movement among the stokers
during the past winter towards a reorganization of the union, but
it did not go as far as an enrollment. If these grievances had
been brought to the attention of the labor director he is confident
that they would have been remedied, for he holds that there is no
gas undertaking in the United Kingdom from which it would be
easier to get the top wages and the fairest conditions of work.

The National Amalgamated Union of Labor has a local branch
at Liverpool also. This is a small local of about a thousand mem-
bers, the bulk of whom are employed by private firms, but a few
are in the corporation service. The significance of this local union
for our investigation lies in the fact that its minimum scale of
24s. for the wages of laborers is accepted by the corporation of
Liverpool as the trade union scale for the district, in the same
way that the scales of older and stronger unions are accepted.

The only complete and thorough unionizing of workmen in
any of the enterprises examined is found among the gas workers
and laborers of the private company at Newcastle. So complete is
this organization that the company describes their gasworks as prac-
tically a " closed shop," both in the retort-houses and in the yards,
although, in the distribution department workshops, where me-
chanics are employed, the " open shop " exists. This union of gas-
workers is also a local branch of the National Amalgamated Union
of Labor. It has continued an uninterrupted existence since its first
organization. The wage scales since that time have been agreed
upon by negotiation or referred to arbitration between the Board
of Directors and the union representatives. In this way, besides
many partial advancements and improvements, there have been
made two notable advances; first, that of 1889 by negotiation, al-
ready mentioned, and second, a general advance in 1900, awarded
by an arbitrator. During one year, 1898, a Board of Conciliation
was in existence, one-half of the members of which were elected by
the Board of Directors and the other half by the workmen, with a
referee appointed by the Conciliation Board. This arrangement
was unsatisfactory to the workmen and they withdrew from it.
With this exception, and that of 1900, labor disputes have been set-
tled by direct negotiation. There has not been a strike in the works
for forty years, during seventeen of which the works have been
unionized. The reasons ascribed by the two parties for this state of

LABOR AND POLITICS. 47

their affairs are, on the part of the management, that the union,
especially in the past few years, has been entirely reasonable and its
leaders have been honest and fair-minded; and on the part of the
union, that the Board of Directors are reasonable and fair-minded,
that the business has been highly profitable, and that the workmen
have been so thoroughly organized. The officers of the union, al-
though they are admitted to the works at any time without question,
have very few complaints from the men. The men bring their com-
plaints directly to the managers, who often make satisfactory
arrangements without the appearance officially of the union.

The extent to which the Newcastle Gas Works are really a
" closed shop/' as stated by the company, is a matter of definition.
The company does not agree to employ only union men and, as a
matter of fact, is continually taking on non-union men. It is the
business of the union agents and stewards, after the men are em-
ployed, to get them if possible into the union. But the managers
and foremen also advise the new men to join the union, and if a
member persists in neglecting to pay his dues the union has the
help of the management in advising him to pay up. At the time
»vhen mechanical stokers were introduced the hand stokers were
given a preference in manning them, but if they were not efficient
outsiders were substituted. These afterwards joined the union, so
that the introduction of machinery has not displaced the union.
Such being the situation, the Newcastle Gas Works is not "closed "
against non-union men, and is not strictly a " closed shop/' It
would generally be understood to be a " union shop." But the dis-
tribution workships, where the employees are both union and non-
union men, is properly an " open shop."

The National Amalgamated Union of Labor has adopted a
system of accident and funeral benefits, in addition to strike and
victimization pay and legal aid. It has no sick benefit, but has gone
further than the Gas Workers and General Laborers in that these
benefits are all included in the regular dues, which are 3f d. per
week. x

Gas Workers, Brickmakers and General Laborers.

The Birmingham union — the Amalgamated Society of Gas-
workers, Brickmakers and General Laborers — is independent of
the national societies above mentioned. It also was organized in the
year 1889, at which time it secured the eight-hour day in the
municipal gas works without a strike. It includes at the present
time 3,700 members in forty-one branches. It is peculiar in that,
as regards the city of Birmingham, its membership is limited to
employees of the municipality in various departments, of whom it
includes about 2,500. This division has come about through an
understanding with the National Union of Gas Workers and Gen-
eral Laborers, which solicits the employees of private firms. This
union, therefore, while organized on industrial lines with the cus-
tomary provisions for strikes and victimization, approaches in char-
acter the Municipal Employees' Association. That organization has

48 NATIONAL CIVIC FEDERATION.

no representatives in Birmingham. The Gasworkers' Secretary has
for several years been a member of the corporation Council and is a
member of the Public Works Committee which employs members
of his society. He is not a member of the Gas Committee, the
labor representative of which is the Secretary of the Tin Plate
Workers' Union. The schedule of wages and amount of work is
agreed upon by negotiation between officers of the union and the gas
committee. The union has never had a strike in Birmingham,
although there had been two strikes of gas workers in the '70s and
'80s prior to the time of its organization. The Secretary's policy
is openly that of avoiding strikes. The Gas Works are conducted
on the " open shop " principle, and both union and non-union men
are in the service. The foremen hire the men as they see fit, but
through the efforts of the union during the past year in negotiations
with the Gas committee, a rule of seniority has been adopted, in
order to do away with the favoritism of foremen. In line with this
rule, the last man laid off is the first taken on. In case of disci-
pline the employee has an appeal to the engineer and then to the
committee. The union endeavors to secure the men after they are
employed. In this its success has been fluctuating. The member-
ship increased at the time when the minimum wage was being pro-
moted, but fell off after the minimum wage of 23s. was granted in
the gas department six years ago. This experience led the union
to establish an accident benefit in 1903, since which time it has held
its members. It now relies mainly upon the benefit features as an
inducement. These include payments on account of accident, death,
and out-of-work. At present, the prospect of getting the minimum
raised to 25s. has served to increase the membership. The Gas
Workers, as well as the other trade unions in the department, make
their requests for wages and hours through their representatives to
the committee, which after investigation decides.

In Manchester, besides the local branches of the National
Union of Gas Workers and the Municipal Employees' Association,
there are two or three small independent unions of laborers with
a few men in corporation departments. One of these, the British
Labor Amalgamation, had at one time 1,700 members, but has since
declined to less than 1,000, mostly employed by private firms. The
Secretary of this union is also Secretary of the Manchester and
Salford Trades and Labor Council and was elected to the Municipal
Council of Manchester in 1904.

TRAMWAYS.

Of the seven tramway enterprises investigated there are but
three in which the traffic employees are organized and recognized
as a union. These are the municipal undertakings of Manchester,
the London County Council and Glasgow. The employees are not
organized on the municipal system of Liverpool, nor on those of
the private companies in Dublin, Norwich, and London. In Man-
chester and London there are two conflicting organizations, the
Tramway and Vehicle Workers, and the Municipal Employees'

LABOR AND POLITICS. 49

Association. In Glasgow there is a branch of the Municipal Em-
ployees' Association.

The Amalgamated Association of Tramway and Vehicle
"Workers was organized in 1889, through the union of local societies,
and was known as the " Amalgamated Association of Tramway,
Hackney Carriage Employees and Horsemen in General." Its
present title was substituted in 1902, and it claims jurisdiction, as
its titles indicate, over not only tramways employees, but also team-
sters. The different classes of workmen who are eligible are :
" Tramway drivers and conductors, motor drivers, inspectors, time-
keepers, cab, omnibus, and car drivers, and guards, carters, coach-
men, draymen, liverymen, horsekeepers, stablemen, washers, clean-
ers, farriers, yardmen and vanmen." This miscellaneous juris-
diction brings the union into conflict with many local unions of
cabmen and team drivers, but since the adoption of electric trac-
tion its growth has been mainly in the tramway service. Its mem-
bers are mainly motormen and conductors. In 1899 its member-
ship was 7,356, in 1905 11,059. The proportion differs greatly
in the municipal and private undertakings. Of the 19,000 employed
by corporations, the associate has 9,500 members, or one-half, and
of the 5,500 employed by companies it has 1,500, or something
less than one-third. Six-sevenths of its members are in municipal
employment.

The regular dues of this association " for the union part only/'
are 3d. per week, but there are three additional scales for benefits
at 6d., 9d. and Is. The " union " dues provide strike and victimi-
zation pay; legal assistance, travelling allowance and a temporary
accident benefit. The additional scales secure sick, accident, super-
annuation, and funeral benefits. The union had in its central and
branch treasuries in December, 1905, £21,606.

The largest local membership of the Tramway and Vehicle
Workers is 2,100 in Manchester and 935 in Salford — the two cor-
porations which divide the municipal area. Salford is the head-
quarters of the association, and its General secretary is a member
of the Municipal Council. In Manchester the union was in exist-
ence when the service was under private control, and in 1896 it
secured from the company the double shift by which it was agreed
that the hours should be reduced to sixty-nine per week of seven
days without a reduction in wages. Notwithstanding this reduc-
tion, the men worked on occasions as high as one hundred to one
hundred and nine hours per week. When the corporation was pre-
paring to take over the service in 1899, a deputation from the
society conferred with the Tramways Committee respecting the
terms which the members should secure under municipal opera-
tion. The " split turn " system, which the corporation introduced,
of nine hours in fifteen, or fifty-four per week, was opposed by the
society, and afterwards the corporation substituted the double shift
of nine hours per dayr fifty-four per week.

Beginning in this way, the union has played a part in Man-
chester during the entire period of municipal management. In all

Vol. III.— 5.

50 NATIONAL CIVIC FEDERATION.

matters affecting a class of employees the manager consults with
the union representative and issues his orders after such negotia-
tions. In case an agreement is not reached the matter is submitted
to arbitration, this being the case with the demand in the spring
of 1906 for extra pay on Sunday. The question was referred to an
umpire appointed by the Board of Trade under the Conciliation
Acts, and his decision was in favor of the corporation.

On all matters affecting individual employees, such as em-
ployment, promotion and dismissal, it is understood on both sides
that the union shall not be consulted. It is the policy of the
tramways committee to make the manager the sole authority in
the selection of his staff of employees, and this is seen both in a
resolution of committee adopted at the time when the enterprise
was taken over, instructing him to ignore letters from Councillors,
but to give preference to men " who apply in the legitimate way,"
and in the " open shop " policy respecting the union. At the same
time, experience has also shown that the recognition of the union
as the official spokesman for the employees in making their de-
mands relieves individual Councillors of pressure from that side
as well as the manager from the solicitation of Councillors. Largely
for this reason the management has encouraged the unionizing
of all the employees. Demands or requests made through the
union are known to have had the discussion and support of the
employees, but when they are made through the individual Coun-
cillors it is impossible to tell whether they come only from a
few restless and irresponsible spirits or a fully informed and
wholly disinterested Councillor. But when the requests come
through the union they have a definite and precise standing,
they are taken up deliberately, openly and officially, and if they
cannot be satisfactorily met by agreement are referred to arbi-
tration. By this threefold policy of prohibiting letters from
Councillors, preventing union inquiry into discipline, and en-
couraging union negotiation on labor conditions, the Manchester
management believe they have protected the service from political,
personal or other undue influence. As far as we have inquired
we have found no instance or charge of such influence.

Recently the Municipal Employees' Association has catered
to the Tramway employees in Manchester, but its membership in
that department is small and not of importance in negotiations
with the management. It interferes only with the efforts of the
Tramway and Vehicle Workers in securing members. The 2,100
members of the latter organization include the bulk of the traffic
staff, which numbers 2,206 employees. Of the remainder of the
3,800 employees, the mechanics pertain to the old-line unions,
while the laborers on the permanent way and in the car sheds are
diverted by the claims of several weak but overlapping unions.

In Glasgow and Liverpool there has been until recently no
organization among the tramway employees other than the me-
chanics in the shops. In Glasgow within the past six months
the Municipal Employees' Association has enrolled some of the

LABOR AND POLITICS. 51

emplo}rees, and the organizer has been recognized in negotiations
with the manager relative to proposed changes in the shifts for
motormen and conductors. At Liverpool, prior to municipal
ownership the operating company prevented organization of the
employees, and when the corporation took over the enterprise it
retained the same officials who had carried out this policy. On
this account, although the management has been indifferent to
the question, the employees were loath to join a union. Shortly
after municipalization, the Tramway and Vehicle Workers effected
an organization. This was weak and of short duration, partly
because the local officers in charge proved incompetent or dis-
honest, one of them going away with the funds. The union dis-
appeared and has not been reorganized.

In both Glasgow and Liverpool the corporation, soon after
municipalization, established friendly societies, to which both em-
ployees and the corporation contributed. To the existence of these
organizations, described below, the union officials attribute a large
part of their difficulty in organizing the employees, and they hold
that the friendly societies were designed to take the place of the
union. The societies have been described by the former chief officer
of the London County Council Tramways,1 as enormously success-
ful and as an example for other cities to imitate, on the ground
that such an investment, after putting the men under proper con-
ditions of labor, has a tendency to attract good men to the service
and to a considerable extent to bind them to it and also to induce
cheerful, contented and loyal service.

At Dublin there was organized in 1901 a local society, the
Dublin and District Tramwaymen, whose membership in 1902
reached 497. It was dissolved in 1904. Afterwards, on the invi-
tation of the Dublin Trades Council the secretary of the Tramway
and Vehicle Workers endeavored to organize the employees as a
branch of the national organization. Some money was spent and
the town was billed for meetings, but they turned out a total
failure, the men refusing to respond to the invitation. The sec-
retary concluded that " the men allowed their politics to interfere
with their trades-union principles."

At Norwich the same association recently opened a branch,
and the men asked for an increase in wages and extra time allow-
ance. The president and secretary of the branch were dismissed
by the company and were thereupon placed on victimization allow-
ance by the association. Indignation meetings were held and
public men of different shades of politics and denominations took
Dart. But this did not save the organization, for the members
fell away and the branch was dissolved. Sympathizers found po-
sitions elsewhere for the dismissed officers.

On the London County Council Tramways, according to the
estimate of the secretary, about 90 per cent, of the motormen
and conductors are members of the Tramway and Vehicle Work-

1 Address, Annual Meeting of Municipal Tramways Association
of Great Britain, 1903, by Alfred Baker.

52 NATIONAL CIVIC FEDERATION.

era* Association. An attempt was made some time since by the
association to organize the employees of the London United Tram-
ways Company, but they were notified not to attend the meeting.
Two of those who attended were dismissed and the association
prosecuted the company in court for wages in lieu of notice. The
project of an organization fell through.

ELECTRICAL INDUSTRIES AND POWER HOUSES.

The electrical industries of Great Britain have arisen since
the beginning of the "new unionism " in 1889, and although
these have produced a class of skilled mechanics yet the character
of their unions is similar to that of the unskilled and specialized
workmen just described. One of the older unions, the Amal-
gamated Society of Engineers, in addition to its provision for
machinists, millwrights and men of like occupations, provides
for electrical engineers and armature winders. But this union
has never enrolled many of this class of mechanics, and its local
schedules of wages omit almost entirely the armature winders.
The union that nominally includes all electrical workers is the
Electrical Trades Union, and its claim is recognized in the fact
that during the present year it has been admitted to the Engineer-
ing and Shipbuilding Federation along with the Amalgamated
Engineers. This electrical workers' union was established in 1889,
but its membership is only 1,100, which it did not attain until
1902. Its largest local enrollments are 198 in London, 167 in
Manchester, and 149 in Glasgow. It has 41 members in Liver-
pool, 35 in Newcastle, 34 in Leicester and 4 in Dublin. Its dues
are 4d. per week in the "trade section" and lOd. in the "full
benefit section/'

The various classes of electrical workers included in this
union are wiremen employed by contractors in the building trades,
armature winders and instrument makers employed by manu-
factures, and generating station attendants, trimmers and jointers
employed by electrical supply companies and municipalities. The
bulk of its membership is employed by private firms seeking
municipal contracts. Of 250 employees in the plants of the
London County Council eligible to membership the Electrical
Trades Union has 20; and one-fourth of its members in London
are employed by public bodies. It has the armature-winders in
the car works of the Glasgow Tramways. In general the wages
and conditions of electrical workers employed by municipalities
are equal or superior to what the union can secure, and it is there-
fore difficult for the union to persuade them to join. Only in a
case like Woolwich, where the Borough Council proposes to re-
duce wages, are the employees coming into the union.

This union is peculiar in that it relies for the main support
of its membership upon the wage clauses in municipal contracts.1
Under these clauses, contractors for municipal work who can be

1 See Heading : " Trade Union Wages."

LABOR AND POLITICS. 53

shown to pay less than the union rates are liable to be excluded
from competition or to have their contracts terminated. Evidence
of their evasions can usually be secured only in case some of their
employees are members of a union, and an inducement to em-
ployees to join the union is the part it plays in enforcing the wage
clauses of their employers' municipal contracts. A weak union,
like the Electrical Trades Union, with one-fourth of its members
in municipal employment, secures many of the other three-fourths
among the employees of municipal contractors. This is partly a
cause of its weakness; contractors select its members when they
have municipal contracts, but select non-members, at lower wages,
for their private contracts. One plan of the union to overcome
this discrimination is to secure a clause in the municipal contracts,
like that in Glasgow, requiring the contractor to pay the standard
wages " for all classes of work, whether contract or otherwise."
Another plan is that effected in Leicester, where the union has a
trade agreement signed by the representatives of the union and by
the contractors along with the municipal wiring department. The
list of employers signing this contract becomes the municipal list
of eligible contractors who are regularly paying the scale agreed
upon. In other localities, the union has not secured these arrange-
ments, but it issues simply a card of " Working Bules," or " Trade
Eegulation Circular," which it strives to induce employers to adopt
and the municipality to accept as the trade union conditions for
itself and its contractors. That these cards are not effective is
shown by the fact that the rates established by the London County
Council are lower than the card rates in the case of jointers,
transformer winders, switchboard attendants and dynamo at-
tendants.

The Electrical Trades Union is strongly Socialist in character,
and its official organ, "Eltradion," carries on a propaganda for
that cause. " Public services, so-called," it says :
" seem more appropriately to belong to the community and for that rea-
son we give special attention and effort to their furtherance. When
we have conquered municipalities we will put our hands on the trusts
and minor companies. We are under no delusion as to Labor having
an ideal time of it, or getting a true equivalent under municipalization
as at present conducted. It must be patent to the meanest capacity that
the municipal services are worked exactly on the same lines as capitalist
concerns, they taking the latter as a pattern. Pressure, however, can
be brought to bear upon them much better than upon the capitalist,
and we hope soon to see established a municipal wage of 30s. for all
municipal adult labor, until such time as the democracy adds to its
strength and can dictate further demands."1

The officers of this union expect their own industry to lead
in the movement.

" What we desire to see is the Electrical Industry and all its
branches taken out of the hands of private persons. With electric
power in the hands of the people it will pave the way for further ad-
vance when the necessity arrives to enter into the production of some
commodity which has come under the control of a trust, and recognized
to be harmful to the community."2

1 Eltradion, May, 1905. * Eltradion, August, 1906.

54 NATIONAL CIVIC FEDERATION.

Coming to more immediate issues in the electrical industry,
the official organ says :

" The municipality as a wiring contractor is a much better body
to get at than the ordinary contractor, who is perfectly unscrupulous
In his dealings with his men, and who is not above telling deliberate
lies in order to deceive his customers as to the low wages he pays, and
the bad labor he employs. The private employer is not subject to the
political forces that play upon a municipal body. We shall do our best
to see that the best material, as well as the best paid labor, shall be
used by the London County Council. If the L. C. C. takes up the
wiring business with spirit, they should absorb the whole of the wiring
trade. The sooner they do this the better for London and the County
generally."1

Engineers and Firemen.

Among the enginemen (stationary engineers) and firemen, in
Great Britain, there is a large number of local and district organi-
zations. Nearly all of them have been formed, like the unions of
laborers, tram and electrical workers, since 1889. Their financial
system is on the basis of low dues, usually 4^d. per week, which
provides accident and death benefits in addition to dispute benefits,
and they have additional dues for sick or other benefits.

These local unions of enginemen and firemen have not been
consolidated into a single national union. Even those that claim
the adjective "national" are confined to one locality or district.-
The membership of the largest one is 6,000 (1905) ; another has
3,000 members, and others run as low as 15, 27, 30, 70, and
so on. The strongest unions of enginemen and firemen are found
in the collieries, organized separately from the miners. In the
cities these organizations are quite inferior and there are many
records of dissolutions, secessions and annexations. Very few
union enginemen were found, and even a smaller number of union
firemen, except in the gas undertakings, where they belong to the
gas-workers' union. The firemen are not organized separately,
as in the United States, but are claimed by the enginemen. These
unions also sometimes overlap the electrical workers in their claims
of jurisdiction over dynamo attendants, and even the tramway
motormen are on their list. Thus the Northern United Engine-
men's Association (Newcastle) endeavors to include "enginemen,
gas enginemen, cranemen, electric crane, motor and car-drivers,
inspectors and conductors, or friction cranemen, boilermen, fire-
men, or hammer drivers of any department." With these
miscellaneous claims and conflicts of jurisdiction, the work of
organization is not specialized, and the different classes of work-
men are not sought out by organizers of their own occupation. The
firemen, especially, are neglected, since there is no organization
appealing solely to firemen, with organizers acquainted with the
fireman's work. The large number of independent and local
unions, able to support only an office secretary, also prevents ef-
fective work in organizing. Compared with the active unions in
American cities there is in England almost no union movement
among the men in the boiler-room or engine-room.

JEltradion, August, 1906.

LABOR AND POLITICS. 55

Skilled Mechanics.

The employment of skilled mechanics is but a small and inci-
dental feature of the labor force in the enterprises investigated.
It occurs mainly in the "engineering" (machinists, etc.) and
building trades, and among the mechanics who are employed for
repairs and maintenance. New construction is usually done by
contractors, and in the case of municipal enterprises these are
required to pay the union scale of wages. Stores, equipment, uni-
forms, etc., are purchased from manufacturers upon similar terms
respecting wages. The unions of skilled mechanics are therefore
more interested in the wage clauses of the municipal contracts
than in the direct employment of their craftsmen. Only in a
case like the Glasgow tramways, where the department not only
repairs but also builds its cars, is the direct employment of skilled
mechanics a considerable proportion of total employment.

The union of mechanics most generally affected by municipali-
zation is the Amalgamated Association of Engineers, founded in
1851. This union nominally includes a large number of trades,
but its membership is mainly composed of machinists (classified
in the wage scales as fitters, turners, planers, etc.), blacksmiths
and millwrights. The evolution of machinery in the " engineer-
ing " industry has affected this union by the increased number of
semi-skilled machine-workers who are able to take the places of
engineers at lower scales of wages, so that notwithstanding its
large membership of 90,000 it does not include a majority of the
men in the trades concerned. Yet it continues to control a ma-
jority of the skilled mechanics, especially the fitters and smiths.
These are the men required mainly in repair shops of public
utility undertakings where the work is not specialized and the all-
round mechanic is needed. .

The Amalgamated Engineers is a type of the old-line trade
unions with high dues and large benefits. The contributions of the
96,000 " full members " are Is. 6d. per week, or from four to six
times the amount paid to the unskilled unions above described.
Compared with the average wage scale of 35s., these dues are also
five or six times as high as the dues of the corresponding unions
in America. The benefits of the union are extensive, including
payments on account of sickness, superannuation and unemploy-
ment, which absorb two-thirds of the weekly dues. The union
has accumulated a fund of $3,280,000.

In all of its dealings with employers, the "open shop" rule
has since 1897 prevailed, and this is the case in municipal em-
ployment. The union relies upon its benefits to attract and
retain its members and upon the activity and watchfulness of
fellow workmen in getting a preference for its members in the
shops. Several of its members have been elected on Municipal
Councils and they likewise exert themselves to get a preference
for union men in municipal employment. In 1906 the union fur-
nished the Labor Party with five candidates for Parliament, two
of whom were elected. This election enabled the General Secre-

NATIONAL CIVIC FEDERATION.

3,000

4,000

5,000

10,000

40,986

32,000

30,000

29,000

4,000

3,458

3,648

3,863

20,500

20,000

17,835

20,000

12,000

13,000

1,217

1,136

1,099

1,144

10,000

4,000

5,000

7,000

6,245

6,000

3,169

3,106

3,037

3,716

1,524

1,200

1,000

1,300

90,000

65,666

64,666

61,780

57,224

38,410

37,821

35,480

32,000

tary, now a member of Parliament, to get the first hearing for his
and other unions before the Admiralty Board.

The foregoing account of the several labor unions affected by
the policy of municipal ownership brings out the marked distinc-
tion between the old-line unions of skilled mechanics and the new
unions of unskilled or specialized workmen. The latter are the
classes of labor employed in the largest numbers in the enterprises
investigated. The following table shows the membership of these
unions as represented in the Trades Union Congress during the
past four years:

Membership of Unions Affected ~by Public Ownership,*

Unions. 1903. 1904. 1905. 1906.

Municipal Employees' Association ....
Gas Workers and General Laborers . . .

Gas Workers (Birmingham)

National Amalgamated Union of Labor

Tramway and Vehicle Workers

Electrical Trades Union

Enginemen's Protective Association . .
Enginemen, National Amalgamated...
Engine, Crane, Boiler and Firemen . . .

Enginemen, Northern United

Engineers, Amalgamated (machinists)

Carpenters, Amalgamated

Bricklayers, Operative

LABOR AND POLITICS.

After the great impulse of organization among unskilled
laborers in the year 1889 the unions rapidly declined. A long
period of industrial depression, coupled with defective methods,
overlapping claims without centralized control, and the lack of
benefit systems, caused their membership to fall off. The older
unions, having benefits, retained their membership to a greater
degree, but both classes of unions lost their aggressiveness after
the Taff Vale and other judicial decisions in 1901 which placed
their funds in jeopardy. Those decisions had the effect of turning
the older unions into the field of political activity, In this they
have followed the leading of the newer unions, which have always
set forward prominently their political programs. The political
interest of the unions has shown itself not only in parliamentary
elections, but also in municipal elections. Their immediate pur-
pose was to secure amendments to the Trade Union Acts merely
as a means of strengthening the unions as a factor in private in-
dustry. But once launched in that field they have supported other
measures more Socialistic in character.

The initiative in this political movement was made by the
Trades Union Congress. That body, unlike the American Fed-
eration of Labor, has always been an organization mainly to pro-
mote labor legislation. Its Executive Committee is a Parliamentary
lobby, known as the "Parliamentary Committee," and the ses-
sions of the Congress are occupied almost solely with the report

1 Reports Trades Union Congress.

LABOR AND POLITICS. 57

of that committee on legislation, and with debates and resolutions
instructing the committee upon measures to be presented in Par-
liament. The strictly industrial alliances of British unions for
joint action in dealing with employers, corresponding in the main
to the American Federation of Labor, are brought about by a large
number of special, and often overlapping, Federations, the leading
ones being the Federation of Engineering and Shipbuilding Trades,
the Miners' Federation, and the General Federation of Trade
Unions.

The first ten years' existence of the Trades Union Congress
were occupied with the hostile legal decisions of 1867-'71, and the
enactment of the Trades Union Acts of 1871 and 1876. At that
time labor candidates were put in the field and the first labor
members of Parliament were elected. For a period of more than
twenty years this political action was discontinued, but again in
1899, accompanying a new series of legal decisions undoing in
part what the unions had secured in the Act of 1876, the Trades
Union Congress proposed the election of labor members. To do
this the Congress joined with the Independent Labor Party, the
Fabian Society and the General Federation of Trade Unions in
creating a " Labor Eepresentation Committee." The General Fed-
eration of Trade Unions, organized in 1899, representing the
strictly industrial side of British unionism, has 105 societies and
500,000 members (also represented in the Trades Union Congress),
with an accumulated fund of $660,000 for the support of unions
on strike. The Independent Labor Party is the more moderate
of the two Socialist parties, and the Fabian Society is a society
for Socialist propaganda. At the general election in January,
1906, this alliance elected twenty-nine Members of Parliament,
several of whom are secretaries and officials of trade unions. At
this election there were also returned eleven members representing
Miners' Associations, not affiliated with the Labor Party, and four-
teen other labor members. These are mainly members of the
Liberal party and they follow the whip of that party, whereas the
candidates of the Labor Eepresentation Committee each sign a
pledge constituting themselves an independent labor party.

At the Sixth Annual Conference of the Labor Eepresentation
Committee, in February, 1906, the name was changed to " The
Labor Party," and, while a party platform or " program " was
negatived, the following propositions were endorsed:

The Trades Dispute Bill, as formulated by the Trades Union Con-
gress ;

A national system of free and secular education, the education
authority, instead of the Poor-law authority to be responsible
for feeding the school children ;

Taxation of unearned incomes for the purpose of social reform;

National legislation on behalf of the unemployed;

Compulsory closing of shops on the basis of sixty hours a week ;

Local referendum for saloon license;

Equal suffrage for all men and women without property qualifi-
cation ;

Removal of the restrictions on political activity of Postal em-
ployees ;

NATIONAL CIVIC FEDERATION.

Trades Union rates and 30*. minimum wages in Government em-
ployment ;

Creation of special committees by municipal councils " to watch
over the observance of the local Fair Contracts Clause, and to
keep a list of employers who fail to observe it."

The Trades Union Congress, at the session of 1905, adopted
without debate the following resolutions on subjects relating to
municipal ownership:

Municipal Trading. — "That we call upon the Parliamentary Com-
mittee to bring all possible pressure to bear upon the members of Par-
liament, and other public representatives, so that public bodies may be
empowered to enter into, and carry on, any work or business on behalf
of the people, so as to steady the volume of trade and provide work at
fair rates for those who would otherwise be idle."

Municipal Banking. — "That, in order to provide larger means of
carrying out social reforms, public administrative bodies be empowered
to issue their own credit notes, thereby avoiding the heavy interest
charged for the use of borrowed money, and the Congress hereby in-
structs its Parliamentary Committee to draft a bill embodying this
principle, and to use all possible means to get the same passed into law."

Hours of Labor. — " That, in view of the present rapidity of produc-
tion and the continuous introduction of labor-saving machinery* and the
consequent displacement of manual labor in many industries, this Con-,
gress declares in favor of shortening the hours of labor to not more
than eight hours per day or forty-eight hours per week, as a means
towards the absorption of many of those workers who are at some sea-
sons of the year thrown out of employment ; and also calls upon the
organized workers of the United Kingdom to make this one of the test
questions at all Parliamentary and municipal elections."

The statistical progress of these principal organizations repre-
senting the legislative, industrial and political alliances of labor
in Great Britain is shown in the following table:

Trades Union
Congress.

Year.
1889

Trade
Unions.
145

•>

Mem-
bers.
687,035
1,592,850
1,093,892
1,155,448
720,873
1,014,607
960,931
1,028,104
1,093,191
1,176,896
1,120,164
1,225,133
1,195,469
1,363.292
1,300,732
1,320,432
1,469,514
1,484,101

1890

268

1891

274

1892

251

1893 ,

198

1894

165

1895

154

1896

145

1897 ,

149

1898 ,

159

1899

147

1900

140

1901

140

1902

163

1903

162

1904 ,

159

1905
1906

154
165

Local La-
General Federa- Labor Repre- bor Rep-
tion of sentation resenta-
Trade Unions. Committee tion Com-
(Labor Party) . mittees.

Socie-
ties.

Mem-
bers.

Trade
Unions
Affiliated.

Mem-
bers.1

Number.

43
59
72
77
79
85
92

343,000
377,729
409,849
419,606
421,824
423,998
400.250

41
65
127
165
158

375.931
469,311
861,150
969,800
900,000

105 501,299* 158 921,280 75

* Including Socialistic societies, 22,861 in 1901 and 16,784 in 1906.
1 Increased to 601,000, November, 1906.

LABOR AND POLITICS. 50

The alliance of labor forces in national politics is reflected in
local politics. The local Trades Councils have no power to control
unions or support strikes, but they take action on public questions,
and endeavor to shape the policy of municipal Councils. They have
promoted municipal ownership and fair wages ordinances, and have
nominated candidates for the municipal legislature. Within the
past two years the latter activity has been taken up by local Labor
Eepresentation Committees,, of which there are seventy-five, similar
in organization to the National Committee. In 1906 it was decided
to admit delegates from these local committees to the National meet-
ing of the Labor Party, in case there is no conflict with a local trades
Council. At the conference of the national body in 1906 the ex-
ecutive had the following to say of the local committees :

"We cannot pass from Elections without congratulating the local
Labor Representation Committees, which are applying to municipal
work the methods we have adopted in Parlimentary work, upon the
splendid results of the municipal elections this year. The candidates
run, and the gains resulting, have far surpassed the numbers of previ-
ous years, and, for the first time in the history of the Labor movement,
its municipal gains appear to have exceeded those of either the Liberal
or Conservative parties. These gains heralded the victories of the gen-
eral elections." *

The methods and policies of these local committees may be
seen from the following typical report made at the beginning of the
year 1906 by the Manchester and Salford Trades and Labor
Council :

" Local Labor Representation Committee. — In August last it was
decided to endeavor to bring into existence a local Labor Representa-
tion Committee, and a circular was issued to the trade societies of the
district inviting them to send representatives to a meeting, in which
it was pointed out that we have at the present time in the Municipal
Chamber men who, during the last few years have accomplished much
in the direction of better conditions and pay for the poorer class of
Corporation employees, and have, through the Fair Contracts Clause,
largely secured that Corporation work shall only be given to firms pay-
ing standard rates and carrying out those conditions of employment
which have been mutually agreed to be the better class of employers
and the artisans and laborers themselves.

"The ratepayers of Manchester have in the past left municipal
affairs largely in the hands of small employers, builders, and retired
tradesmen; men whose interests have not led them to fully recognize
the vast problems involved. But as increased municipal activity will
be a feature of the future, greater employment by the Corporation
must be looked forward to, that is, work to be done directly by them,
which will necessitate an increase of practical men on the various com-
mittees, to see that work is economically carried out in the interests
of the ratepayers, but at the same time to see that it is carried out
under fair and equitable conditions.

"A second meeting was held, „ and the following resolution was
adopted and sent to all the trade societies in Manchester, Salford and
district:

"That with a view to more adequate and effective rep-
resentation upon the Manchester City and Salford Borough
Councils, this delegate meeting hereby resolves that the socie-
ties represented be urged to contribute a sum equal to not less
than Id. per member to the Trades Council Fund, for the pur-

1 Report, Sixth Annual Conference of the Labor Party, p. 6.

60 NATIONAL CIVIC FEDERATION.

pose of assisting in the election of Labor candidates. It shall
be a condition in the disbursement of this fund, that the E. C.
of the Trades Council shall only make grants to such candi-
dates as are prepared by their signature to give a pledge simi-
lar to that insisted upon by the National Labor Representation
Committee. All candidates who desire to come within the
provision of this resolution must be members of a bona-flde
trade union, the Independent Labor Party or Social Democratic
Federation.

"The results of their efforts were most successful, and many names
have been added to those who on previous occasions have been
announced as representatives who can be approached on matters relat-
ing to Labor.

"Further efforts will be put forth another year, when we hope to
still further increase the number until labor can claim to have a fair
share of representation in the municipal chambers of Manchester and
Salford."

The program of the local Labor Representative Committees is
limited still to local municipal conditions. The following, issued
by the Sheffield Committee, is typical. It will be noticed that the
clause relating to municipal ownership includes " any undertaking
found to directly benefit the rate-payers," and that "trade union
rates of wages " are desired in place of the " minimum rate."

Sheffield " L. R. C." Municipal Programme, 1905. (Same for 1906.)

WORKING CONDITIONS FOB COEPOBATION EMPLOYEES.

1 — A Forty-eight hours maximum week for all Corporation Employees.
2 — A 25s. minimum weekly wage for all Corporation Employees.

HOUSING.
3 — Erection of Cottage Property upon Corporation Lands at a rental

within the means of a 25s. weekly wage.

4 — A more vigorous application of Part III of the Housing Act, 1890.
5 — The providing of Municipal Lodging Houses.
6 — A Free Water Supply for Baths and "Closets" in all Cottage

Property.

HEALTH.

7 — Extension of Public Baths, with Free Water Supply, and a material
reduction in charges for Bathing, and the provision of Free
Open-Air Baths.

8 — Free use of Baths by School Children during Summer Holidays.
9 — The Corporation to be responsible for a Pure Milk Supply and the

establishment of Infants' Milk Depots.
10 — That the Corporation shall provide at least one meal per day for all

School Children.

11 — Special Inspection of School Premises, — Public and Private — also

Medical Inspection of Scholars in Council and Private Schools.

12 — Erection of a sanatorium for Consumptives by the Local Authority,

with Free Treatment for the Poor, and for others payment

according to ability.

CONTRACTS.

13 — "Conversions" of Privy Middens* into "Water Closets," the work to
be executed by the Corporation.

14 — Wherever possible, the Corporation to employ Labor direct,
whether in Building Construction, or in Manufacture for its
own uses, so as effectually to dispose of the Contractor, and
shall take over and work any undertaking found to directly
benefit the Ratepayers, and further, that in the "Fair Wages
Clause," the Trade Union Rate of Wages to be substituted for
the "Minimum Rate."

LABOR AND POLITICS. 61

THE UNEMPLOYED.

15 — The provision of suitable work for the Unemployed at Pair Rates
«f wages.

FINANCE.

16 — That the Corporation shall receive Loans as low as £10, at three per
cent. Interest, subject to three months' notice of withdrawal.
Interest to be payable every six months.

The character and quality of the men elected to represent the
labor element of the municipal Councils is partly determined by the
fact that Councillors receive no compensation and that committee
meetings and Council meetings are held in the day time. The
amount of time required for these obligations during working hours
makes it difficult or imposssible for actual wage-earners to acccept
the position. On this account nearly all the labor representatives
have sources of income other than their daily wages. In Glasgow
none of the labor members are actual wage-earners, and when it was
desired to elect such a man to the Council he was assisted in setting
up a small business in order to provide him a living. In this way
labor is represented in the Glasgow Council by five manufacturers,
three merchants, two officers of societies, one dentist, one surgeon,
one solicitor, and one publican.

In other places, the salaried secretaries of trade unions have
been elected, their unions sometimes furnishing them with an of-
fice assistant in order that they may give a part of their time to
the duties of the municipal Council. Thus, in the London County
Council, of the eleven labor representatives, seven are trade union
officials. The labor delegation in Leicester includes 4 trade union
officials, 4 officials of co-operative and other societies not labor, 3
wage earners, and a coal merchant and a small employer who re-
cently were wage-earners. Eleven of these belong to the labor
party and 2 are Liberals. In Birmingham there are three trade
union officials, three wage-earners, and one building contractor.
In Liverpool, there is one trade-union official and one Socialist. In
Manchester there are 4 trade-union secretaries, 2 wage-earners, 1
architect, 1 civil engineer, 1 manufacturer, 1 clerk of works, 1 sec-
retary of the Housing Council, and 1 miner's agent.

Not all of these so-called labor representatives are officially
recognized as such by the new Labor Kepresentation Committees or
Labor Party. In Manchester, indeed, all of the 13 labor members
have signed the pledge of the Labor party. But in Birmingham,
four are members of the Labor party, while three have been nomi-
nated and supported by the Liberal and Tory parties. In Leicester
11 belong to the Labor party and 2 to the Liberal party. In Liver-
pool there are 2 members of the Labor party, while 3 Orangemen
support them on Labor questions. In Glasgow, where old party
lines are not drawn, there are no official representatives of the
Labor party, but ten of the Labor men are in sympathy with that
movement, while four of them are of the type of Labor politicians
who play for the Labor vote in various ways. One of these was
able to defeat the former chairman of the Tramways Committee and

62 NATIONAL CIVIC FEDERATION.

to retire him from the Council on the ground of his refusal to con-
sider the grievances of certain employees in the department.

TRADE-UNION AND MINIMUM WAGES.

In each of the municipalities visited, the Council has adopted
the policy of paying trade-union rates of wages and observing trade
union hours of labor, and requiring contractors on municipal work
to do the same. This is a policy first proposed in 1884 bj the
London compositors with reference to government printing, and it
was first adopted in 1889 by the London School Board. Since that
time the so-called " fair wages " principle has been accepted to a
greater or less degree by six hundred and thirty-four local governing
bodies in the United Kingdom,1 including those in the localities of
both the municipal and the private enterprises investigated for this
report.

The London County Council has taken the lead in perfecting
the details by which this policy is carried out. At first it was simply
provided that the rates of wages and hours should be those recog-
nized by associations of employers and trade unions, and in case
there was no trade union the Council should fix the rates. This
continues to be the form of the standing order in other places, but,
since it leaves room for dispute and evasion, the Council, in 1897,
began the publication of a list of wages and hours to be inserted in
contracts. This list is settled by the Council on the recommenda-
tion of the Works Committee, and is revised from time to time " so
as to keep it at all times as far as possible in accordance with the
rates of wages and hours of labor for the time being recognized by
associations of employers and trade unions and in practice obtained
in London." Where there is no trade union the rates are those
fixed and revised by the Council in the same way. This is the case
also where there is a union not strong enough to secure an agree-
ment with employers or generally to enforce its scale of wages.
The alleged wages must be actually " in practice obtained," and this
is determined by the investigation of the Works Committee. If
actual wages are lower than those claimed or set up by the union,
the Committee accepts those lower wages, as is done in the electrical
trade, but in any case they are the wages paid by the best-paying,
though not exceptional, private employers.

In case the work is done outside the radius of twenty miles
from Charing Cross the rates are those of the district, which, how-
ever, must be submitted by the contractor for verification. The
lists apply, with differences in details, to works of construction and
manufacture, and to the supply of raw material or manufactured
articles, including clothing, boots, hats, caps, and general stores.
Contracts may not be sublet without the written consent of the
Council under the hand of the clerk, and the contractor is held re-
sponsible for the sub-contractor. Full provision is made for pen-

*See Home Office Returns on "Contracts of Local Authorities
(wages)," August 7, 1905, 307.

LABOR AND POLITICS. 63

alties, recovery of liquidated damages, determination of the con-
tract in case of breach, and payment by the Council to workmen of
any difference between the amount authorized in the schedule and
that paid by the contractor, with recovery from the latter. The rates
of wages and hours are also those paid by the Council for similar
work.

The publication of the lists of wages and hours by the London
County Council is a detail in carrying out the policy of trade-union
rates. Other municipalities have not gone to that extent, although
they have adopted the same policy. Consequently, in other places
the enforcement of the policy is not as precise as it is in London
and there are more complaints of the evasion both by the municipal
departments and by contractors. The Glasgow Council stipulates
that " only firms paying the standard rate of wages or piece prices
to all competent workers for all classses of work, whether under
contract or otherwise, shall be eligible to estimate for and receive
corporation contracts." Where there is no such standard the wages
are those which are " generally recognized as fair in the trade."
Outside Glasgow they are the " standard " or " fair " wages of the
district or place.

Manchester requires the wages " recognized by the associations
of employers and the local organized bodies of workers," and adds
in the specification that " the Contractor does not and will not pro-
hibit the workpeople of the Contractor from joining trade societies
or continuing members of such societies."

Birmingham requires "the minimum standard rate of wages
current in the district" in which the work is executed, but these
instructions do not apply to purchases by any Committee or Con-
tractor of materials, stores, patented or miscellaneous articles.

Leicester stipulates that " the rates of wages to be paid to, and
the hours of labor, as well as the rules and conditions regulating
the employment of, workmen and others engaged or employed in
carrying out the contract, shall be such as are recognized by the
employers and the respective trade unions in the town or district
where such contract is to be executed ; and where no such organiza-
tion or organizations exists or exist, such rates of wages, hours of
labor, and conditions of employment, as are, for similar work to that
specified in the contract, generally paid or observed in the organized
trades in the town or district nearest to the place in which the con-
tract is to be executed."

Liverpool requires the wages " recognized and agreed upon be-
tween the trade unions and the employers," and St. Pancras those
" mutually agreed upon by the associations of employers and em-
ployees, and as in practice obtain in the respective trades."

The policy of London and of the other municipalities is to fol-
low rather than to lead private employers in fixing the rates of
wages and hours. Investigation is first made of the rates actually
obtained, and the result of this investigation is incorporated in the
schedule. This involves continuous revision, and changes are made,
upwards or downwards, according to the state of the labor market.

64 NATIONAL CIVIC FEDERATION.

The following recommendation of the Works Committee, adopted
by the Council, July 10, 1906, indicates the procedure :

"The rate of pay inserted in the Council's list for painters is 8id.
an hour, but the rate agreed upon between the association of employers
and the trade union for painters employed in the ship painting industry
is 9d. an hour. We recommend:

"That a statement be inserted in the Council's list of rates of wages
and hours of labor that painters, when employed on ship painting in
the Port of London, are to receive an extra id. an hour."

The foregoing procedure is apparently simple enough in cases
where there is a substantial association of employers and a recog-
nized trade union. Their negotiations, strikes, or lockouts, and the
results, are practically official and are easily ascertained. But in
some industries, especially the electrical and engineering industries,
there is an increasing specialization of work. Recognized trades
have been split into specialties, and it is possible to employ a semi-
skilled man upon one or two operations at less than the trade-union
rate for the all-round workmen. Sometimes the semi-skilled man
is given a different title to designate his work so as not to bring him
under the trade union rate. The overlapping of trades also makes
it possible to put a man of a low-wage trade on a job claimed by a
high-wage trade. Engineers and managers, both of municipal and
private undertakings, endeavor to make economies of this sort, with
the result that in respect to some of these undertakings there are
grievances and criticisms from trade unionists that the department
or company is not " fair " and is not paying the trade union rate.
These are individual cases of dispute that it has not always been
possible to investigate for this report. They are technical questions
which, on account of jurisdictional disputes, unionists themselves do
not always agree upon, but which the unions bring up for settlement
as best they can. The fact that they have more influence in muni-
cipal Councils than in boards of directors, and the fact that the
Councils have laid down the general principle that trade union rates
shall prevail make it easier for them to get the trade union inter-
pretation adopted in municipal undertakings than in private under-
takings.

Since the trade union wages apply to contractors for municipal
work as well as to municipal undertakings, they are supported and
utilized by unions whose members, on account of the character of
their work, are not employed by municipalities. Such unions as the
boilermakers, boot and shoe operatives, and others are able to pre-
vent firms paying less than their scale from supplying some of the
municipal undertakings with their products. This, with the growth
of municipal enterprise, is a factor of importance in strengthening
such unions. A few younger and weaker unions also rely upon these
wage clauses for support, but in their case the policy tends to
weaken rather than strengthen them. It induces them to lean on
outside help in a narrow field where wages are higher than what they
can hope to get by their own efforts in the wider field of private
work. This is shown in the Electrical Trades Union, described
above.

LABOR AND POLITICS. 65

In the case of unorganized laborers a minimum rate is estab-
lished, either by the Council for all departments and contractors or
by the several committees for each department. In the latter case
the department has only the general standing order of the Council
for its instructions, namely, to pay trade union rates. But for
laborers, except in the building trades, there is usually no union or
recognized standard. In the building trades, the men are some-
times organized in local unions and sometimes in branches of the
national unions of laborers. In a few instances .these have local
agreements with an association of master builders. In other cases
where the laborers are not organized, the Master Builders' Asso-
ciation establishes a local rate. Thus for this class of laborers
there is always either a union rate agreed to by the employers or a
recognized standard established by the employers. But building
laborers including, as they do, the helpers of bricklayers, plasterers,
and slaters, are a somewhat specialized kind of laborers, requiring a
certain amount of skill, such as mixing mortar and nailing laths.
They are subject also to the bodily risks and the irregular and sea-
sonal employment of that industry. And, since their wages are
always based on the hourly rate, they are 10 to 15 per cent, higher
by the hour than the wages of general out-door laborers, and 20 to
30 per cent, higher than the wages of factory and yard laborers.
When these hourly rates are taken as the standard and applied to
the regular wages and steady employment of municipal undertak-
ings, they result in earnings 10 per cent, to 30 per cent, higher than
those of common laborers in private employment under similar con-
ditions. Thus in Leicester there is no flat minimum established by
the Council, but the hourly rate for employees of building con-
tractors is accepted as the rate for other laborers. This rate was
recently advanced to 6£d. per hour for bricklayers' and plasterers'
helpers, and 6d. for general laborers and excavators, the advance
being made on the decision of a referee appointed on the joint ap-
plication of the union and the Association of Master Builders. The
extra fd. for the helpers was granted in recognition of their extra
work and risk. The advanced rates were followed by the corpora-
tion as its minimum. In the Gas department the rate of 6d. is
equivalent to 27s. for a week of fifty-four hours for yard laborers.
Some of the best engineering firms, from the standpoint of the
skilled workmen, pay their common labor 18s. to 20s. per week of
fifty-four hours. Consequently, the 'minimum in the gas works is
35 per cent, to 50 per cent, higher by the week than the minimum
rates paid by some private companies to laborers working under
similar conditions.

The theory underlying the support of the minimum wage for
municipal laborers is similar to that of trade unions in both skilled
and unskilled occupations, and the effects are similar. It is not
based on the character or needs of the work, nor is it related to the
strength or endurance of the worker, but is supported by argu-
ments drawn from the cost of living and the maintenance of a
superior standard of life. It is not intended to be a maximum rate.
Vol. III.— 6.

66 NATIONAL CIVIC FEDERATION.

although it may result in becoming such. It is simply the mini-
mum below which no workmen are to be paid, and the departments
or the contractors are permitted to pay a higher rate if desired or
necessary. This they do not do except to get men for special work,
such as handymen, or helpers. So far as common ordinary labor is
concerned, the minimum, in all cases investigated, has been placed
high enough to secure an abundant supply of able bodied and active
men. For this reason, departments and contractors do not find it
necessary to pay higher rates in order to get enough of that class
of laborers. On the other hand, except, perhaps, in Leicester and
Manchester, the minimum has not been placed higher than the rates
paid by some private employers to these superior individuals among
the common laborers. In no case is it as high as the 30s. indorsed
by the Trades Union Congress and the Labor Party. But private
employers also pay to other laborers, not equally competent, lower
rates than that which the municipal minimum permits. Conse-
quently the true significance of the minimum is its contrast not
with the highest nor even with the average, but with the lowest
wages paid by private employers. These may be the rates at which
laborers start to work, but above which higher rates are paid after a
certain period of trial or experience. The significance of the
municipal minimum is that the laborer starts at the minimum, a
rate which in private employment they get only after a kind of pro-
motion.

Or, the lowest rates paid by private employers with which com-
parison should be made, are those paid to older or less able-bodied
men. These are paid according to a more or less close observation
of the amount of work they can do or the less exacting position they
occupy, compared with the able-bodied and most efficient laborers.
If the calculation is close enough, the actual labor-cost of the work
done is not greater for the able-bodied and not less for the unable.
The municipal minimum, however, placed as it is at or above the
standard for the able-bodied, is uneconomical if paid to the less
able. Consequently, one effect has been that the new men taken on
by the municipal departments do not include that class. This is
particularly noticeable in positions where the work is easy or dis-
agreeable, such as those of lamplighters, watchmen and scavengers.
Those positions were formerly filled, at rates as low as 14s., by old
men or incompetent or almost unemployable men, but they are now
filled, so far as new appointments are concerned, by able-bodied
men. Similar changes, though not so extreme, are found among
yard laborers, car cleaners, motormen, conductors, and all classes
of labor which formerly were hired at market rates, but now are
hired at minimum rates. The men now employed could not have
been secured at the former lower wages. For them the corpora-
tion minimum has not meant as great an increase in wages as the
increase on the books would indicate, because they could command
similar wages in private employment. In general, the minimum is
not so much an increase of wages as it is a change of personnel. A
different and superior class of men is employed, and whether they

LABOR AND POLITICS. 67

perform a larger amount of work or render superior service depends
on the kind of work and the management. In some positions, like
that of yardmen, the amount may be greater and hence the labor-
cost is less. In other positions, like that of watchman or signal-
man, the amount of work cannot be increased. The easier posi-
tions of this kind, however, are filled by older men transferred from
other positions, who are looked upon as pensioners. The minimum
wage policy would increase the cost of this quasi-pension system,
unless exception is made, as in Manchester, of laborers " who, be-
cause of advancing years or deficient capacity, are retained at lower
wages;" or, as in Glasgow where the minimum applies to "every
able-bodied man."

Another feature of the municipal minimum compared with
private employment is that it does not fluctuate with periods of de-
pression. During the past ten years the extreme depression in in-
dustry and the large number of the unemployed in Great Britain
have had a severe effect on the wages of laborers. Consequently the
contrast of market wages with a given minimum rate was greater
in 1905 than it has been under the partial recovery of business in
1906. At the same time the continual pressure of the labor ele-
ment tends to raise the minimum, and where, as in Leicester or
London, the rate follows the standards of the best-paying em-
ployers it is more promptly raised than in places where it depends
on a resolution of the entire Municipal Council.

The minimum wage is strictly a wage for the common laborer.
It does not usually affect the wages of men on special work, or
handymen, since the minimum has not been placed higher than
what such men can command except in times of depression.
Neither does it apply to progressive positions, where the beginner
serves either" an apprenticeship to a skilled trade or a semi-appren-
ticeship in a line of promotion like that of greasers, drivers, and
enginemen in a power house. Nor does it apply to the men work-
ing on the eight-hour shifts, who also are specialized workmen. It
does not apply to boys or youths, but only to adult laborers. These
require special consideration.

In Birmingham the minimum rate is established separately by
the committee for each department. The rate in the gas depart-
ment is 23s., adopted in 1900, and the union is moving for an ad-
vance to 25s. The practice of the unions in playing one department
against another in the matter of wages has led to the appointment
of a joint committee, of two members from each employing com-
mittee, to deal with the minimum wage. This arrangement is ap-
proved and advocated by the labor members of the Council. In
private employment the standard of the organized building laborers
is 6|d. per hour, or 29s. 3d. for fifty-four hours. Navvies, -un-
organized, get 5d. The firm of CadburVs, famous for its treatment
of labor, pays 20s. to 24s. for common labor. Another large firm
pays the same. At the other extreme, and lowest in the district, a
great carriage works pay 18s. to 20s. for fifty-four hours. In
general, the run of wages among unorganized laborers is 18s. to 23s.

68 NATIONAL CIVIC FEDERATION.

The minimum in the gas department is 15 per cent, higher than the
minimum paid by "model" private employers, and 25 per cent,
higher than that paid by others.

At Manchester the first movement to adopt the minimum scale
for unskilled labor was made in 1905, and the resolution set the
figure at 25s., to take effect April, 1906. The minimum prior to
that time had been 23s. in the gas department, 22s. in the electrical
department, and lower rates in other departments. Building
laborers, who are organized, get 6d. an hour, or 26s. 6d. for fifty-
three hours. The large engineering establishments pay 18s. to 20s.
for fifty-two and one-half hours for inside laborers. The cor-
poration minimum is 25 per cent, to 40 per cent, higher than that
in private employment, augmented by extra rates for overtime and
by holiday pay.

The minimum wage of 21s. in Glasgow, established by the
Council for contractors and all departments, is the lowest in the list
of municipalities visited. This conforms to the fact that in Glas-
gow the general level of wages is low. Speaking even of a skilled
trade like that of the engineers, a statistical authority says : " By
simply crossing the border (into England), a man gets 3s. more."
Glasgow is the port to which large numbers of Irish peasants and
laborers migrate, and these, together with hundreds from the crofts
and the fisheries, augment the supply of unskilled labor, especially
in winter. There is no organization among this class of workers,
and even in the skilled trades the relatively low scales of union
wages are not enforced. The lowest wages for able bodied men are
those of the freight handlers — " goods warehousemen " — employed
by the railroads. These vary from 15s. to 18s. a week. Foundry
laborers get 17s. Yard men on the Clyde get 17s. to 19s., a few as
low as 16s.; engineers' laborers and helpers, 17s. to 18s. Navvies
are paid at the rate of 24s. to 30s. for fifty-four hours, but on ac-
count of their irregular work their earnings are much lower. The
same is true of building laborers at 5d. to 6d. per hour, or 23s. lOd.
to 26s. per week of fifty-two hours. Compared with the wages of
those having regular employment, the corporation minimum is 15
per cent, to 33 per cent, higher than the corresponding wages in
private employment.

The level of wages in Liverpool, like that in Glasgow, is de-
pressed by the immigration of Irish laborers. The corporation has
not named a definite figure, but the departments during the past two
or three years have accepted the rate formerly established by the
unions of building laborers and the National Amalgamated Union
of Labor at 24s. Since the building laborers' union has dissolved,
their wages range from 21s. 6d. to 25s., for forty-nine and one-half
hours. The minimum set by the Builders' Association is 21s.
Pavior's laborers receive 21s. to 24s. for fifty-five hours; railroad
freight handlers start at 18s., and employees of the Mersey Dock
Board at 21s. Plate layers (section hands), get 17s. lOd. to 22s.
Foundry laborers get 17s. Yard laborers in the gas works begin
at 18s. In factories, common laborers receive 18s. to 21s., but handy

LABOR AND POLITICS. 69

men or semi-skilled laborers, such as helpers, are paid higher wages.
The organized platers' helpers on ship repairing receive 24s. to 27s.,
and the organized dock-workers are paid for their irregular work at
the rate of 30s. to 48s. for fifty-four hours; other dock workers at
the rate of 24s. The corporation minimum of 24s. is 15 per cent,
to 30 per cent, higher than the corresponding minimum in private
employment, besides one week holiday on pay.

The policy of the London County Council is, not to establish a
flat minimum for laborers, but to determine through its Works
Committee the prevailing rates paid by private firms for all classes
of laborers and mechanics and then to settle each rate on that basis
for the several departments and contractors. This requires con-
tinual investigation and revision, but the rates established are those
paid by any considerable portion of the best-paying employers. The
lowest rate paid to laborers is 6d. an hour for stablemen, laborers in
the engineering trade, motor cleaners in the car sheds and greasers
in the power house. Next are armature winders' helpers at 6£d.,
and navvies, building laborers, paviors' laborers and magnet winders
at 7d. The hours are fifty-four, except in the building trades,
where they are fifty. In one case the rates paid by the Council are
higher than those required to be paid by municipal contractors.
Carmen employed by contractors receive a minimum of 26s., and
those employed by the Council a minimum of 28s. In all other
cases the schedules provide the same wages to be paid by the Coun-
cil and by contractors on municipal work.

Appendix — Trade Union Wages.

London County Council: Standing Orders, May, 1906. pp. 6, 6, 11

to 22.

Glasgow: Corporation Diary, 1905-1906. pp. 136, 137.
Manchester: Leaflet, "Contracts for Works."
Birmingham: Diary, 1905-1906. pp. 122, 123 (General Instructions to

Committees).

Leicester: Year Book, 1904-1905. pp. 88, 89 (Conditions of Contracts).
Liverpool: Standing Orders, 1905-1906. pp. 31, 32.
St. Pancras: Home Office Returns, p. 41.
Newcastle: Home Office Returns, p. 16.
Sheffield: Home Office Returns, p. 19.
Norwich: Home Office Returns, p. 17.
Dublin: Home Office Returns, p. 19.

INDIVIDUAL CONTRACTS.

The relation of trade unions to the several enterprises depends
largely upon the contracts which the management makes with in-
dividual employees. These contracts are governed by legislation
enacted in the years 1875 and 1876, dealing with trade unions, con-
spiracy, and protection of property. Under the law as it stood
prior to 1875, a breach of contract on the part of the workmen was
a criminal as well as a civil offence. On the strong representation
of the trade unions and friends, the Government in 1875 decided
that, in order once and for all to avoid the idea of the criminality
of trade unions, the Criminal Law Act of 1871 should be repealed,
and a new bill should be enacted into law providing in less ob-

70 NATIONAL CIVIC FEDERATION.

jectionable ways for the protection of person and property during
trade disputes. This law, known as the Conspiracy and Protec-
tion of Property Act, 38 and 39 Viet., Cap. 86 (1875), abolished
the law of conspiracy in trade disputes, and limited the criminality
of trade unions to acts which if done by one person would be a
crime. The act then proceeded to distinguish between peaceful
picketing, which henceforth should be free of criminal taint, and
those acts of violence, intimidation, " rattening," etc., which should
be punished by fine or imprisonment. The objection being raised
that the repeal of the conspiracy laws would endanger the gas and
water supplies of towns was met by special clauses. These two en-
terprises were excepted from the general repeal, and a breach of
contract with a Council or private company which the workmen
had reason to know would deprive a place of gas or water was made
a criminal offense, with a fine of £20 or three months' imprison-
ment. In other words, employees in gas and water undertakings
were left in the same position as regards conspiracy as that which
they occupied prior to 1875. The section of the act which made
this exception against gas and water employees also contained a
clause requiring the municipal authority or company to keep posted
a printed copy of this section, and under this requirement there
was found in all of the gas enterprises visited, both municipal and
private, the following large poster :

38 and 39 Viet., Cap. 86. Conspiracy and Protection of Property Act,

1875.

SECTION 4. — Where a person employed by a Municipal Authority,
or by any Company or Contractor, upon whom is imposed by Act of
Parliament the duty, or who have otherwise assumed the duty of sup-
plying any city, borough, town, or place, or any part thereof, with Gas
or Water, wilfully and maliciously breaks a contract of service with
that Authority or Company or Contractor, knowing or having reason-
able cause to believe that the probable consequences of his so doing,
either alone or in combination with others, will be to deprive the inhab-
itants of that city, borough, town, place, or .part, wholly or to a great
extent of their supply of Gas or Water, he shall, on conviction thereof
by a court of summary jurisdiction or on indictment as hereinafter
mentioned, be liable either to pay a penalty not exceeding Twenty
pounds, or to be imprisoned for a term not exceeding Three months,
with or without hard labor.

"Every such Municipal Authority, Company, or Contractor as is
mentioned in this section shall cause to be posted up, at the gas-works,
or water-works, as the case may be, belonging to such Authority or
Company or Contractor, a printed copy of this section in some conspicu-
ous place where the same may be conveniently read by the persons
employed, and as often as such copy becomes defaced, obliterated, or
destroyed, shall cause it to be renewed with all reasonable despatch."

"If any Municipal Authority or Company or Contractor make a
default in complying with the provisions of this section in relation to
such notice as aforesaid, they or he shall incur on summary conviction
a penalty not exceeding £5 for every day during which such default
continues, and every person who unlawfully injures, defaces, or covers
up any notice so posted up as aforesaid in pursuance of this Act, shall
be liable on summary conviction to a penalty not exceeding 40s."

It will be noticed that under this section the mere fact of
quitting work is not enough to render the workman criminally

LABOR AND POLITICS. 71

liable — he must quit work in violation of a contract. If he had no
contract, or if his contract had expired, he could quit work without
fear of indictment for conspiracy. But the courts held that where
there was no formal contract for a specified period there was an im-
plied contract to work during the interval between pay-days, which
was usually one week. A union of gas workers could order a strike
to take effect after their week's wages were paid, and thus its mem-
bers would escape the criminal penalties, and they were not required
to give notice of this intention to quit unless they had entered into a
contract with that stipulation. The contracts were usually ver-
bal ; consequently the employees were bound only to a week's service
at a time. The first gas authority that conceived the idea of ex-
tending the period and requiring a written contract was the South
Metropolitan Gas Company of London. This was done in the
summer of 1889, after the union of gas workers had secured the
eight-hour day without a strike. The company at that time offered
to its employees contracts running for twelve months, or for a
shorter period in the case of winter men, the contracts to be signed
as individuals and the consideration being a share in the profits of
the company. About 1,000 of the yard men and mechanics signed
the contracts, but the stokers' union forbade its members to sign.
Their objection was that the workmen would be brought under the
Conspiracy Act and the union could not order a strike while the
contracts were in force without subjecting its members to criminal
prosecution. It was the intention of the company by means of
these contracts to break up the gas workers' union, but they were
able to make it appear to the public that the union was opposed
to profit sharing, although its real opposition was against the
twelve-month contracts.

In a memorandum annexed to the contract, but not forming a
part of it, the company promised that a man might leave before
the end of the twelve months provided he notified the engineer of
the station and the engineer in his discretion could give or with-
hold permission to quit. The design in this clause was to permit in-
dividuals to leave but to forbid an organized movement to quit
work by holding over the men the criminal penalties of the Con-
spiracy Act. When the union discovered that three of its members
had signed the contract, it demanded their dismissal and after-
wards demanded that all men who had signed should be dismissed.
The union sent in a week's notice, in conformity with their implied
terms of contract, and in the interval the company was able to
supply their places. At the conclusion of the strike and the defeat
of the union some of the union members were taken back, but a
public utterance of the secretary of the union that " the next time "
they would not give the week's notice led the company to insert an
additional clause forfeiting the contract if the workman became a
member of the union. The clause reads as follows:

"1. The said for the South Metropolitan Gas Com-
pany agrees to employ the said who says he is not a

member of the Gas Workers' Union, for a period of months from

Wage No.

Profit-Sharing No.

72 NATIONAL CIVIC FEDERATION.

the date hereof at one or other of the stations of the said Company,
if he shall remain sober, honest, industrious, and performs the work
allotted to him, and shall not at any time during the said period become
a member of the said Union."

This clause was dropped after a few years, and the contract
remains as it was when first adopted in 1889. The present form
is as follows :

South Metropolitan Company.

GENERAL AGREEMENT.

MEMORANDUM OF AN AGREEMENT made the

day of 190 Between

for and on behalf of the South Metropolitan Gas Company, of No.
709, Old Kent Road, in the County of Surrey, of the one part,
and of the other part

1. The said for South Metropolitan Gas

Company agrees to employ the said for a

period of months from the day of the date hereof at one or

other of the Stations of the said Company, if he shall remain sober,
honest, industrious, and performs the work allotted to him.

2. The said agrees to serve the said Com-
pany for the said period of months in whatever capacity

he may from time to time be employed by the said Company at the
current rate of wages applying to such capacity.

3. The said agrees to obey the orders of

the Foreman in charge.

4. The hours of working for yard men to be 54 hours per week.

5. The Company undertakes that during the continuance of this
agreement the different rates of wages in force at the date hereof, and

which, under Clause 2, may become payable to the said

shall not be reduced.

6. The said to be entitled to the benefit

and be bound by the conditions of the Co-Partnership Rules so long as
he shall continue in the service of the Company under Agreement.

As witness the hands of the parties,

No obstacle will be thrown in the way of any man engaged under
the above Contract who may wish to leave the Company's employment
before the expiration of the period of service therein agreed for, pro-
vided he shall notify such wish to the Engineer of the Station at which
he may for the time being be employed, and on receipt of such notice
the Engineer shall, in his discretion, consider whether the services of
such a man can be dispensed with without detriment to the Company,
and, if so, permission will be given at the expiration of the usual week's
notice.

Section 1, of the above contract was as follows during the years
immediately following the strike in 1890:

1. The said for South Metropolitan Gas

Company agrees to employ the said who says

he is not a member of the Gas Workers' Union, for a period of

months from the day of the date hereof at one or other of the stations
of the said Company, if he shall remain sober, honest, industrious, and
performs the work allotted to him and shall not at any time during the
said period become a member of the said union.

LABOR AND POLITICS. 73

The only other gas undertakings that have adopted the long
term contracts in order to bring employees under the terms of the
Conspiracy Act are four companies — South Suburban, Commercial,
Chester, and Newport — (which have copied the profit-sharing plan
of the South Metropolitan Company), and the gas department of
Glasgow, which has adopted a bonus scheme. The Glasgow con-
tract is copied in its essential clauses from that of the South. Met-
ropolitan Company. It was adopted in 1899, following a strike of
gas workers at the Dalmarnock Station. Some of the strikers at
that time were prosecuted under the Conspiracy Act, and although
they were serving only under the implied contracts requiring a
week's notice they were fined in amounts varying from £2 to £7.
The long-term contracts were thereupon adopted by the Gas Com-
mittee. They are signed only with men who have been employed
in the department a year or more, the number at present being about
1,000. The bonus, or consideration secured on signing, is Is. a
week, paid in cash at the termination of the contract. This is
equivalent to 3 or 4 per cent, addition to the wages, compared with
9f per cent, paid by the South Metropolitan Company. The form
of contract is the following, section three applying to hand-stoking
and not applicable since the substitution of mechanical stokers :

Olasgoic Gas Works.

MEMORANDUM OF AGREEMENT made by and between

for and on behalf of

the Lord Provost, Magistrates, and Council of the city and Royal Burgh
of Glasgow, acting under "The Glasgow Corporation Gas Act, 1869,"
and amending Acts (hereinafter called "the Corporation"), of the one

part, and thereinafter called

"the Workman"), of the other part.

1. The said , for and on behalf of the

Corporation, hereby agrees to employ the workman for a period of *

1 Usually 6 to 12 months.

months from the date hereof, at one or other of the Gas

works of the Corporation, if he shall remain sober, honest, industrious,
and able to do the work allotted to him.

2. The workman hereby agrees to serve the Corporation for the
period specified in article first hereof, in whatever capacity he may
from time to time be employed by the Corporation, at the current rate
of wages applying to such capacity.

3. Eight retorts drawn and charged by hand per hour to constitute
the work of two men.2 If the retorts are drawn by machinery, sixteen

2 Does not apply since substitution of mechanical stokers,
charged per hour to be considered equivalent work. In the event of
the retorts being both drawn and charged by machinery, forty retorts
drawn or charged per hour shall constitute the work of each machine.
Should a greater or less number of retorts be drawn or charged per hour,
the wages paid shall be increased or diminished in accordance with
the scale of wages in force at the date hereof.

4. The workman agrees to obey the orders of the Foreman or
Manager in charge at the particular works at which he may be em-
ployed.

5. The Coporation undertake that during the continuance of this
Agreement the different rates of wages in force at the date hereof, and
which, under article second hereof may become payable to the work-
man, shall not be reduced.

74 NATIONAL CIVIC FEDERATION.

6. If the Workman faithfully fulfills his part of this Agreement
the Corporation shall at the expiration thereof, pay to him a bonus
equal to one shilling per week for the whole period during which he
has so served the Corporation. In witness whereof this Agree-
ment is subscribed by the parties hereto, both at Glasgow, on the

day of One thousand hundred

and before the Witnesses undernamed and designed

and hereto with them subscribing.

Witness.

NOTE. — In the event of any workman engaged under the foregoing
Agreement wishing to leave the service of the Corporation before the
expiration of the period of service therein stipulated, in order to fill
another situation, he shall notify such wish to the Manager of the
Station at which he may for the time being be employed, and, on receipt
of such notice, the Manager shall in his discretion consider whether
the services of such workman can be dispensed with, without detriment
to the Corporation, and, if so, he may then give such workman permis-
sion to leave at the expiration of the usual fortnight's notice.

None of the other gas enterprises have adopted the long-term
contracts, but there are two corporations, which, while paying wages
weekly, make contracts which require a notice in writing fourteen,
days in advance of quitting work. These are Leicester and Bir-
mingham.

Gas Workers' Contract, Leicester.

MEMORANDUM OF AGREEMENT made the

day of One Thousand Nine Hundred

Between of

Herein called "The Servant" of the one part, and The Mayor, Aldermen,
and Burgesses of the Borough of Leicester, hereinafter called "The
Corporation," by Alfred Colson, the Engineer and Manager to the Gas
Department of the said Borough, of the other part.

1. The Servant, in consideration of the Agreement herein con-
tained on the part of the Corporation, doth hereby agree to serve the
Corporation; and the Corporation do hereby agree to employ him as
their laborer and hired servant, in the business of making Gas at their
works, from the date hereof until this Agreement shall be put an end
to by either the Servant or the Corporation giving to the other of them
fourteen days' notice in writing, and if after the expiration of such
notice the Servant shall continue to be employed by the Corporation,
he shall be held to be their Servant at will.

2. The Servant doth hereby also agree, diligently and faithfully,
according to the best of his skill and ability, to employ himself in the
said service during the usual and customary hours of labor each and
every day during the continuance of this Agreement; and in such ser-
vice, and all matters connected therewith, will obey all the lawful
orders and directions of the Engineer, and Manager of the Corporation,
or his deputy for the time being, having the oversight and control
of the said Servant, and in default of such obedience, or in the event
of the Servant absenting himself from or neglecting the work or service
of the Corporation, or if he shall be in a state of intoxication, or shall
in any other way misconduct himself during the hours of such service,
he may, any other Agreement notwithstanding, be summarily dismis-
sed.

3. And the Corporation do hereby agree to pay to the Servant the

weekly wages of (being at the rate of per day

of eight hours) at the end of each week during which he shall continue
in the service of the Corporation, but subject to a proportionate deduc-
tion at the daily rate aforesaid, for such time, if any, as the Servant
shall be absent from the said service from any cause whatever.

Witness to the Signature of the above-named Servant:
Witness to the Signature of the Engineer and Manager :

LABOR AND POLITICS. 75

Gas Workers' Contract, Birmingham.

MEMORANDUM OF AGREEMENT made the

day of One Thousand Nine Hundred and

Between of

"The Servant," of the one part, and The Mayor, Aldermen, and Citizens
of the City of Birmingham, hereinafter called "The Corporation,"

by Engineer to the Gas

Department of the said City, of the other part.

1. The Servant, in consideration of the Agreements herein con-
tained on the part of the Corporation, doth hereby agree to serve the
Corporation; and the Corporation do hereby agree to employ him as
their laborer and hired servant, in the business of making Gas at their
Works, from the date hereof until this Agreement shall be put an end
to, by either the Servant or the Corporation giving to the other of them
fourteen days' notice in writing, and if after the expiration of such
notice the Servant shall continue to be employed by the Corporation,
he shall be held to be their Servant at will.

2. The Servant doth hereby also agree, diligently and faithfully,
according to the best of his skill and ability, to employ himself in the
said service during the usual and customary hours of labor each and
every day during the continuance of this Agreement; and in such ser-
vice, and all matters connected therewith, will obey all the lawful
orders and directions of the Engineer of the Corporation, or his deputy
for the time being, having the oversight and control of the said Servant;
and in default of such obedience, or in the event of the Servant absent-
ing himself from or neglecting the work or service of the Corporation,
or if he shall be in a state of intoxication, or shall in any other way
misconduct himself during the hours of such service, he may, any other
agreement notwithstanding, be summarily dismissed.

3. And the Corporation do hereby agree to pay to the Servant the

weekly wages of (being at the rate of

per day of eight hours) at the end of each week during which he shall
continue in the service of the Corporation, but subject to a proportionate
deduction at the daily rate aforesaid (which the Corporation are hereby
authorized to make) in the event of the Corporation not requiring the
service of the Servant on Sunday in any week, and for such time, if
any, as the Servant shall be absent from the said service for any
cause whatever, and subject to a proportionate increase at half the
daily rate aforesaid, for all the work done by the Servant on Sunday
between the hours of 6 a.m. and 6 p.m.

4. The contributions of subscriptions of the Servant to the "City
of Birmingham (Gas Department) Sick and Funeral Allowance
Society," will be deducted from the weekly wages aforesaid in accord-
ance withm the Rules of the said Society.

Witness to the Signature of the above-named Servant:
Witness to the Signature of the Engineer:

The Sheffield Company reaches the same result, not by a con-
tract but by a notice posted in the works requiring fourteen days'
notice before the stoker can leave the company's employ. This
applies only to those who have worked fourteen consecutive shifts,
as will be seen in Rules 15 and 16 of the following notice :

Sheffield United Gas Light Co.

Neepsend and Efftngham Street Stations.

Rules to be Observed by Retort House Men.

1. All workmen engaged in or about the Retort Houses, who are
on 8-hour shifts, are included in these Rules.

2. Each stoker (On Hand Stoking) is required to draw and charge
28 mouthpieces during his shift.

76 NATIONAL CIVIC FEDERATION.

3. Stokers and lid men are required to keep the mouthpieces and
ascension pipes clean, and in working order, on the retorts allotted to
them during the shift; and must rammel the same at every charge.

4. Stokers and lid men must take all the precaution necessary to
prevent spongy pieces of coke, shale, or cannel coke, getting mixed
with the coke shot down for sale.

5. Retort lids to be properly slackened, and a lighted torch applied
before the lids are opened.

6. Each fireman to attend to 9 open fires, and to clinker 6 during
his shift. On the Regenerative Furnaces the Fireman will clinker the
fires allotted to him, and prick them up as often as may be necessary;
pan out and wheel the ashes outside the Retort House where directed,
and leave the ashpans clear of ashes and full of water at end of each
shift; firemen must remove the water from the ashpans before clinker-
ing the furnaces.

7. Each coal filler is required to fill 16 tons of coal during his
shift (except for No. 2 House, at Effingham Street, where the quantity
is 11 tons), and put it down in the proper position for the Stokers to
fill the scoops.

8. Machine men must keep their Machines clean and in good
order, properly draw and charge the retorts, and report to the Foreman
any defects in the Machines, and rendered all necessary assistance to the
fitter repairing same.

9. Coke men must thoroughly quench the coke before it is taken
out of the Retort House; on Hand Stoking, are required to wheel away
the coke from 3 Stokers to the position as directed by their Foreman;
and on Machine Stoking are required to fill up the fires as often as
necessary, with cannel or other coke, and wheel the surplus to the tips
as directed by the Foreman.

10. Elevator men are required to keep the engines, elevators and
conveyors clean and in good order; to regulate the supply of coal to
the breakers; keep the hoppers full of coal, and report any defect to
their Foreman.

11. All men must assist in any way required in cases of emer-
gency.

12. Men are not allowed to leave the Works without permission
during their respective shifts.

13. Work on Sunday, will, as a rule, be stopped between 5 a.m.
and 1 p.m., and when possible on the afternoon shift also.

14. All men to be punctual to the time for beginning work; and
any man absenting himself without satifactory reason, or being on the
Works in an intoxicated state, or breaking any of the foregoing rules,
or not doing his work to the satisfaction of the Superintendent of the
Works, will be liable to instant dismissal.

15. Fourteen days' notice, in writing, is required from Retort
House Men who have worked 14 consecutive shifts, before they can
leave the Company's employ; and the same notice will be given by the
Company, except in the cases specially mentioned in these rules.

16. If any man continues working after the 14 days' notice has
expired, he may leave, or be discharged at any time, without any fur-
ther notice. This arrangement shall only apply for a period of four
months after the expiration of the 14 days' notice, and if a man con-
tinues working after the expiration of such period of four months, he
shall then be entitled to receive, and be liable to give 14 days' notice
under Rule 15.

July 1st, 1903.

By Order,

JOHN W. MOBBISON, Engineer.

The objects to be secured by sections 15 and 16 of the fore-
going notice turn upon the fact that about December the full limit
of consumption has been reached, and also the full staff of men

LABOR AND POLITICS. 77

employed. By the beginning of the New Year as daylight increases
less gas is consumed, and the custom of the gas company is to then
give certain men fourteen days' notice to break their contract of ser-
vice in accordance with law. It is usually the last comers or the last
men set on that are given notice, and Rule 16 is not to get behind
the Conspiracy Act of 1875, but rather works in the men's favor,
because as very often happens when the men's legal notice has ex-
pired if the hours of daylight have not increased as rapidly as an-
ticipated they are found employment from day to day, sometimes
only for a day or two and sometimes for weeks. In order to safe-
guard the interests of the men the clause means that if under these
circumstances a man by chance has been working for four months
from day to day he may count himself a regular employee, and en-
titled to give or receive fourteen days' notice before his contract
can be broken.

The remaining two gas undertakings, those of the Manchester
Corporation and the Newcastle Company, do not enter into any
written contract with individuals nor impose any regulation re-
specting the term of employment. The agreement is only verbal
and is governed only by the common law and the Conspiracy Act of
1875. This would require on the part of the workman one week's
notice of his intention to quit in order to relieve him of the crimi-
nal liability of the act. It is the custom in Manchester to give a
fortnight's notice to men working in the retort house and seven
days to all other workmen.

TRAMWAYS.

The two private tramway companies in Dublin and Norwich
require a surety bond or a deposit on the part of their motormen
and conductors, but these are not required by any of the municipal
corporations. The Norwich company requires a deposit of £2 and
the wages of the current week as security for the performance of
the contract. The company retains the right of discharging the em-
ployee at any hour without stating any cause, but requires one
week's notice in writing on the part of the employee subject to for-
feiture of the deposit and current wages if such notice is not given.
One pound is also retained from the first week's wages as security
for cost of uniform.

The Dublin company requires a bond, with one surety, the
amount to be determined at the time of signing the contract. If
the employee leaves without giving fourteen days' notice the bond
is recoverable, but the company may dismiss him at any time with-
out notice.

Neither bonds nor notice of intention to quit work is re-
quired by the municipal corporations. In Manchester there is no
written contract, and employment is by the hour, so that the em-
ployee can quit at any time without notice and without forfeiting
his wages. The Manager can discharge him at any time, without
notice. This is true also in Liverpool and Glasgow, but the London
County Council requires one day's notice on each side. The only

78 NATIONAL CIVIC FEDERATION.

financial security is the current week's wages as they accrue up to
pay-day, and these are security, not against quitting work, but
against damages resulting from breach of rules. In Glasgow and
Liverpool the employee is required to become a member and to
contribute to the benefit societies that provide against sickness, ac-
cident, death, or superanuation. Copies of these contracts are given
herewith :

Norwich Electric Tramways Company.

Form of Contract for Motor-Men and Conductors.
Contract No

THIS AGREEMENT made and entered into by and between the

Norwich Electric Tramways Company and

hereinafter referred to as the said Employee:

WITNESSETH, that the said agrees

to serve the said Company, and the said Company agrees to employ him
to serve it, in either of the capacities above mentioned to which he
may be assigned, and to pay him for such services the same scale of
remuneration as is paid to others employed in a similar service of the
said Company, the conditions of this Agrement being as follows:

First. — That such service is to commence when the said Employee
shall be assigned to duty by the said Company, after he is reported as
competent, and to be continued for such times as employment may offer
on the Cars of the Company or until terminated in the manner herein-
after provided.

Second. — That in either of the capacities in which he may be
employed he will faithfully perform all the duties of the position, and
will be bound by and fully comply with all the Rules and Regulations
now existing, as also any which may from time to time be prescribed
by the Company, all of which are intended to be incorporated in this
agreement.

Third. — That if the said Employee shall serve the said Company
in the capacity of a Conductor, he will become responsible for all the
Property in his charge, and will see that all Passengers boarding or
leaving his Car are safely received or landed before giving the signal
to proceed; and, further, will faithfully and honestly use the "Bell-
punch Register," ""Way-bill," or such other device as may at any time
be adopted or directed to be used by the Company for the collection and
recording of fares, and will account for and pay over to the said Com-
pany (as often as the Rules of the Company require) the full amount of
fares so collected and recorded, it being distinctly understood and
agreed that the difference in the number of tickets issued to him and
the number remining in his possession shall be taken as the true
number of fares received by him; provided also that this number shall
agree with the Indicator in the said "Bell-punch," unless upon subse-
quent examination it shall be found that the said Indicator is not in
perfect order, or that it has been tampered with while in his possession;
provided always that in the event of there being any discrepancy
between the difference in the numbers of the Tickets issued to the
Employee and the number remaining in his possession, and the numbers
of the Tickets issued as shown by the Indicator in the Bell-punch, it is
hereby expressly agreed and declared that whichever number of Tickets
so shown to be issued shall be the larger (whether shown by such
difference as aforesaid or by the Indicator in the "Bell-punch") shall
be considered the number for which the Employee shall be accountable
to the Company. In the event of any damage to a "Bell-punch or
Register" while in his possession, or in the event of his failure to return
the same to the Company, he hereby agrees to pay for any damage if
it is injured, or the full value of it if it is not returned. The Employee
shall serve the Company on any part of their system as their Manager
or Foreman may from time to time direct.

LABOR AND POLITICS. 79

Fourth. — That if the said Employee shall serve the said Company
in the capacity of Motor-man, he will become responsible for all prop-
erty placed under his charge, and will use all the care and skill neces-
sary to avoid accidents of any kind.

Fifth. — That this Contract may be terminated on behalf of and by
the said Company, and the said Employee may be discharged at any
hour, by written or verbal notice from the Company, or its Engineer
and Manager, or authorized officer, without stating cause for such dis-
charge, or by the said Employee giving seven days' notice in writing
of his desire to leave the service of the Company; during which seven
days the Company shall have the use, at its option, of such services
as heretofore, under penalty for the non-performance thereof.

Sixth. — The Employee, if a Conductor, will on the signing hereof
pay to the Company Two Pounds, to be retained by the Company
together with any such interest thereon as is hereinafter mentioned,
and with all wages for the current week, as security for the due dis-
charge of his duties and for the due accounting for and paying over to
the Company all money received by him for or on behalf of the Com-
pany, and for the due observance by him of the Rules and Regulations
aforesaid and all alterations thereof, and for the payment of all dam-
ages and loss occasioned to the Company or their property, and all
damages, fines, and penalties to which the Company may become or
be made liable by reason of anything wrongfully or negligently done,
omitted, or suffered by the Employee, aricf for the payment of all
moneys for which he is made liable and the satisfaction of all things
for which he is made responsible by any of the Rules and Regulations,
or any alterations therein.

Seventh. — That the Company may retain the sum of One Pound
from the wages of the Employee as security for the cost of the Uni-
form, for a period of one month from the date of the receipt of such
money, and if at the end of that time the Employee is pronounced
efficient by the Company's Manager, and his conduct is satisfactory
and he still remains in the employ of the Company, the same shall be
returned to him less an amount equal to a payment of One Shilling a
week for the period he has been in the employ of the said Company,
which amount shall be received in part payment of the two-thirds cost
of Uniform to be paid by him at the rate of one shilling per week.

Eighth. — That in case of a breach of any of the conditions of this
Agreement or the said Rules and Regulations, or any alterations
therein, the said Employee shall be liable to the said Company for all
loss or damage sustained by or through such breach, whether the same
could be reasonably anticipated or not; the Company shall also be
entitled to retain the whole of the said sum of Two Pounds and any
interest thereon and the Employee's wages for the current week as
liquidated damages for such breach. In any other case the amount for
the payment or satisfaction of which the said Two Pounds and any
interest thereof and the Employee's wages for the current week are
hereby made a security may also be retained out of the same sum and
interest and wages by the Company as liquidated damages.

Ninth. — It is distinctly understood by the said Employee that the
object of this contract is to protect the said Company from loss,
whether through injury to its own property or business, or through
claims for damages by third parties, for which the said Company may
be or become liable through or by reason of any malice, neglect, care-
lessness, unskillfulness, or dereliction of duty on his part, either in
violation of the Rules and Regulations of the Company or otherwise;
and he hereby agrees that he will become responsible for, and will pay
to the Company, any damages or loss that may occur through any of
such causes, or otherwise this Agreement shall cease and terminate
as from the date of any such injury or damage being caused, or of
any such act of malice, neglect, carelessness, unskillfulness or derelic-
tion of duty on the Employee's part as aforesaid, as the case may be,
without prejudice however to any claim the Company may have against

80 NATIONAL CIVIC FEDERATION.

the Employee under the preceding clauses of this Agreement. In the
event, however, of this Agreement being terminated under the provi-
sions of this clause, the Company shall be deemed to release the
Employee from all liability which he would otherwise have incurred
under this clause; and the said Employee further agrees that as regards
any wages which may be or become due, and which shall be required
to meet any claim or claims for which he may have become liable
under this contract, the said Company shall be and Is hereby authorized
and instructed to take out of such wages, as may be or become due,
the amount required to meet such demand, and to apply the same
toward the liquidation of such claim or claims.

In witness whereof the said Norwich Electric Tramways Company
has caused these presents to be subscribed by its Engineer and Manager,

and the said

hath hereto subscribed his name this day

of nineteen hundred and

In the presence of

Traffic Manager.

Engineer and Manager.

The Dublin United Tramways Company.

KNOW ALL MEN that we and

are jointly and severally bound to the

Dublin United Tramways Company in the sum of

Pounds sterling, to be paid to the said Company, for which payment we
and each of us bind ourselves, our heirs, executors, and administrators,
and every one of them, by these presents sealed with our and each of
our respective seals.

Whereas has expressed a desire

to become a of Street Cars in the service of

the said Company, and the said Company have consented to accept the

services of said on the terms of his

entering into a Bond with one surety in the above-mentioned sum

of Pounds. Now, the condition of the above-mentioned

Bond is such, that if the said shall not

wilfully disobey the orders of any of the superior Officers of said Com-
pany, so as to cause any interruption to the Traffic, and if the said

shall honestly and faithfully discharge

his duty as such and shall not leave the service

of the Company without the consent of the Manager, for the time being
of said Company or until the expiration of fourteen days from the time
when he shall have given notice of his intention to leave the employ-
ment of the said Company, then the above-mentioned Bond shall be
void, otherwise the same shall remain in full force, and the entire of

said sum of Pounds shall be recoverable against

the said and

or either of them, or either of their heirs, executors, or administrators,
as liquidated damages.

As witness our hands and seals this day of

190

Signed in the presence of

And further I do hereby agree that should I become or continue
a servant of the above Company, so long as I shall continue in the
employment of the above Company, the Manager, or other Officer of
the above Company duly appointel, shall be at liberty to discontinue
my services, or dismiss me at the end of, or during any day whatever
without any previous notice whatever, upon paying me the current
day's wages and no more except any wages that may be at the time
due to me on account of any work done during the week previous to
the day of such discontinuance or dismissal.

Dated this day of 190

Signed in the presence of.

LABOR AND POLITICS. SI

Liverpool Corporation Tramways.

I of

in consideration of being taken into the employ

of the Liverpool Corporation Tramways as a

hereby agree with the Liverpool Corporation to conform to all the Rules
and Regulations for the time being of the Liverpool Corporation Tram-
ways, and to submit to the penalties for the breach of the same, and
I agree to become a member of the Liverpool Corporation Tramways
Benefit Society, and I authorize and direct the Corporation to deduct
from my weekly wages the amounts which shall from time to time
become due from me to the Society, and to pay the same to the Treas-
urer of the/ Society.

Dated this day of 190

Signature

Witness

London County Council Tramways.

AN AGREEMENT made between the London County Council
(herein called the "Council") by Aubrey Llewellyn Coventry Fell, Chief
Officer of the London County Council Tramways (herein called the

"Chief Officer") and (herein

called the "Driver") for the service of the said

as a Driver on the Tramways of the Council.

1. The Driver will serve the Council and the Council will hire him
to serve it in the capacity of a Driver of the Tramway Cars or Omni-
buses of the Council and the conditions in the other clauses of this
Agreement expressed are the conditions of such service and hiring.

2. The service and hiring contracted for are a general service and

hiring commencing on the day of 190. . . .

and to continue until terminated in manner herein provided. The Con-
tract may be terminated by the Council or the Chief Officer or by the
Driver by one clear day's written notice, the notice by the Driver to be
given to the Chief Officer.

3. The wages of the Driver payable by the Council shall be at
the rate per day which from time to time shall be determined by the
Council. The wages will accrue from day to day but be paid once a
week only, and shall only accrue and be paid for such days and parts
of days as the Driver is actually on duty by order of the Council or
the Chief Officer.

4. The Driver will faithfully fulfill all his duties as a Driver oil
any route on which the Chief Officer from time to time directs him to
perform his services and especially will observe and be bound by as
well all the clauses which relate to Drivers of the Rules and Regula-
tions of the staff of the Council and also all alterations from time to
time of the said Rules and Regulations or any of them.

5. In case of any breach by the Driver of any of the said Rules
and Regulations or any alterations thereof the Chief Officer after hear-
ing the parties may on behalf of the Council retain all wages due to
the Driver as Liquidated damages for any damages and loss occasioned
to the Council or their property by the Driver and all damages, fines
and penalties to which the Council may become or be made liable by
reason of anything wrongfully or negligently done or omitted or suffered
by the Driver and for the payment of all moneys, finest or forfeitures
and the satisfaction of all things for which he is made liable by any of
the clauses of any of the said Rules and Regulations or any alterations
thereof.

6. Provided always that no act or omission of the Driver amount-
ing to a criminal offence for which he would or might be liable to be
convicted either under an indictment or by any Stipendiary or Police
Magistrate or Justice or Justices of the Peace in a sunmiary way Is or

Vol. III.— 7.

82 NATIONAL CIVIC FEDERATION.

shall be deemed to be within the meaning of the provisions of Clause
5, hereof.

Dated this day of 190

Signed by the said Aubrey Llewellyn )
Coventry Fell In the presence of }

Signed by V

(the Driver) in the presence of

day of 190

I do hereby acknowledge receipt

of a Copy of the Rules and Regulations for Drivers and a Copy of the

Agreement.

(Signature)

Glasgow Tramways.

The men do not sign a contract in the usual sense in which thia
term is accepted in America, but the " Book of Rules and Regula-
tions for Officers and Servants of the Glasgow Corporation Tram-
ways " contains a rule as follows :

"Every employee, by subscribing to these Rules and Regulations,
Covenants and promises to devote himself exclusively to the service
of the Department, strictly to conform to, and comply with, these
Rules and Regulations, and also to all others which may hereafter be
issued."

Each man who is engaged signs for uniform and the other
equipment, and also for a copy of the rule book, and this con-
stitutes the only contract between the men and the department.
The management does not require the men to give any notice or
warning, and is not bound to give any notice when dismissing or
dispensing with a man's services.

PROFIT SHARING OR CO-PARTNERSHIP.

The only undertaking within our investigation which has a sys-
tem of sharing profit with employees is the South Metropolitan Gas
Company. The idea had been suggested by the chairman, Sir
George Livesey, as early as 1886, but it was not adopted until 1889,
when a plan became necessary that would attract employees who
were about to joint the newly-formed Gas Workers' Union. In
June of that year the men in the retort house had secured through
their union the eight-hour day, and their success had encouraged
the yard men also to go into the union. On the suggestion made
to the chairman by a yard foreman that something must be done to
attach the men to the company a profit-sharing contract was of-
fered to all who would sign as individuals.1 Yard men and the
mechanics to the number of about 1,000 accepted and signed the
contracts within a fortnight, but the stokers in their union forbade
their members to sign on the ground that it would break up the
union. An essential part of the contract was the agreement to
work for twelve months unless relieved at the discretion of the en-
gineer, which would have made it a criminal offense for one who
signed the contract to obey an order of the union to strike.

1 See title : Individual Contracts, p. 69.

LABOR AND POLITICS. 83

When the union discovered that three of its members had
signed, it demanded their removal, and afterward demanded that
all who signed should be removed. This being refused the stokers
ordered a strike, and their places were filled by others, who signed
the contracts. At the present time, of the 6,000 employees about
5,000 are working under contracts. The contract remains sub-
stantially in its original form, including a clause to the effect that
the employee shall " be entitled to the benefit and be bound by the
conditions of the copartnership rules (formerly ( profit-sharing
rules ') so long as he shall continue in the service of the company
under agreement." Since this clause makes the rules a part of his
contract, the relations of the employee to the company have changed,
along with the advance of the rules from those of a simple bonus
scheme to those of an elaborate system designated not as " profit-
sharing " but by the larger title " copartnership."

The details of the profit-sharing plan are based upon the slid-
ing scale system which has applied to the company since 1876 by
Act of Parliament, and when the sliding scale was changed in 1900
the profit-sharing scheme was changed to correspond. According
to the sliding scale as it stands at present, the company is per-
mitted to declare a dividend of 4 per cent, if the price of gas sold is
3s. Id. (74 cents) per 1,000 feet or more; but for every penny (2
cents) reduction in the price of gas the rate of dividend may be in-
creased 3 1-3 per cent. That is, if gas is sold at 3s. (72 c.) — a re-
duction of Id. (2c.) below the initial price — the rate of dividend
may be raised to 4.03 1-3 per cent. The present price of gas is 2s.
(48c.), which is a reduction of 13d. (26c.) below the initial price.
This permits a bonus equivalent to 43 1-3 per cent, of the rate of
dividend, so that the company is permitted to declare a dividend at
the rate of 5.73 1-3 per cent. It is, therefore, to the interest of the
shareholders that gas should be sold at the lowest practicable price.
But the act of Parliament does not apply the principle of the slid-
ing scale to the employees of the company, and consequently so fau
as legislation is concerned they have no direct interest in the price
at which gas is sold. The profit-sharing scheme applies the same
principle to employees, by the same method of calculation, the
bonus, however, being calculated at a lower rate. The same initial
price is taken, namely 3s. Id. (74c.), at which no bonus is paid.
Then for every penny reduction in the price of gas the year's wages
are increased by a bonus of three-quarters of 1 per cent. The pres-
ent price of gas, 2s. (48c.) permits a bonus of thirteen times this
rate, or 9-f per cent. Thus comparing two partners who receive
equal amounts in one year, say $400, the one as interest on shares
of a nominal value of $10,000, the other as wages on his labor, when
the price of gas is 74c. each receives $400 and no bonus. If the
price of gas is reduced to 72c., the amount received as interest is
$413.33 and the amount received as wages is $403. With the
price at 48c., where it stands at present, the interest payment is
$573.33 and the wage payment is $439. Thus the principle of
the sliding scale is applied to both classes of partners in the enter-

84 NATIONAL CIVIC FEDERATION.

prise and offers to both of them a direct incentive to reduce the
price of gas to consumers.

This reduction in price can come about only by a reduction in
the costs of manufacture and distribution. At the time when the
profit-sharing plan was adopted, in 1889, the company, in accept-
ing the eight-hour system, had to meet a greatly increased cost of
labor. The change from twelve hours to eight, at the same rates of
pay per day, meant an increase of 50 per cent, in the cost of labor
in the retort house. In order to overcome this handicap the man-
agement endeavored in various ways to increase the amount of
work, such as making the scoops larger, detailing men to keep
them in repair and to see that they were kept full, and shortening
the periods of rest, and in other ways economizing labor. These
efforts were accompanied by serious friction and insubordination 011
the part of the members of the union, so that the management lost
control of their retort houses, and the costs of manufacture could
not be reduced. The effects of the profit-sharing plan has been
to eliminate these factors and to secure for the company a
greater amount of work and output on the part of employees than
the amount secured in any of the other enterprises visited. This
result, in the opinion of the management, places the profit-sharing
device on a sound economic basis. The chairman of the company,
in addressing the co-partners on the occasion of the distribution of
the bonus in 1904, said :l

Co-partnership is business, not philanthropy. The Co-partnership
bonus of £32,000 is no part of salaries or wages. To salaries and wages,
there is an absolute right enforceable by law. Other things are gifts.
such as payment for holidays, contributions by employees to sick and
superannuation funds, etc., to which employees have no legal claim ; but
the Co-partnership bonus is not a gift and it cannot be claimed as a
right. . . . It is, or it ought to be, money representing wealth or
property actually created by the operation of the Co-partnership system.
The employees being partners have a definite and direct interest in
doing their best for the business by which they obtain their living. This
direct interest induces them to work more intelligently, to avoid waste
of time and material, and generally to make their work as effective as
}>ossible. . . . The bonus is the result of their better and more
intelligent working and of their saving of time and materials. It is on
this ground alone that the bonus can be justified.

But the simple profit-sharing scheme, as adopted at first, did
not produce the permanent and zealous interest in the company's
success that was desired. The bonus was paid in cash and in most
cases was immediately expended by the recipient, so that once paid
it ceased to influence the workmen towards greater effort. In fact,
it was found to work harm and encourage thriftlessness, because a
man would spend all of his wages knowing that the bonus would
pay for his holiday and extra expenses. The company encouraged
the men to save their bonus, and about 40 per cent, of them saved
the whole or a part and left it with the company to invest, but the
other GO per cent, were not much more heartily attached to their

1 South Metropolitan Gas Company Co-Partnership Journal, July,
•«904, p. !«».

LABOR AND POLITICS. 85

work than before. In addressing the co-partners in 1904, the Chair-
man said:1

" Hitherto, it has been possible to show that the bonus money has
been earned by better work. . . . The growth of the Holding of the
Employees in the Company's Stock . . . shows that the Employees
have confidence in the Company, that they make good use of the bonus,
and that being Shareholders, they have a strong motive to do what
they can to promote the interest of the Company. This applies only to
those who save their bonus — for those who withdraw it, I cannot say
much."

The first four years' experience with the cash bonus made it
plain that if it was to accomplish the full results looked for the re-
cipients must be deprived of their wasteful control over its ex-
penditure. This was partly done in 1894, when the bonus was
made 50 per cent, larger, but was divided into two parts, a with-
drawal bonus to be paid in cash and a stock bonus. In both cases
the bonus is the absolute property of the employee. The stock
bonus if not large enough to purchase a stock certificate of £10 is
invested in the names of three trustees in the ordinary stock of the
company until it shall be sufficient either alone or with addition
made by the workman to purchase a certificate, and this is then
transferred to him. Dividends on the stock are also retained and
invested by the trustees on the same terms. If the stock is issued
from the treasury its value is placed at the average market price of
the past month as determined by the Board of Trade. This is
done in accordance with the special act of Parliament, enacted in
1894, permitting the company to offer stock before public auction
to consumers and emplo}rees. If the stock is not furnished from
the treasury, it is purchased on the open market. Approximately,
the price of the stock during the past year, when dividends were
OT| per cent., was 130, so that the revenue on stock is about 4 per
cent, on the investment.

While the stock is the absolute property of the employee, the
rules place certain restrictions on his disposition of it. He can sell
his stock at the market price on application to the secretary of the
profit-sharing committee, who is the company's accountant. But
if he sells to any outside party without the consent of the secretary
of the company, he at once ceases to be a profit-sharer, " notwith-
vstanding any agreement he may have signed." The consent of the
secretary to the sale can be secured if the employee shows the best
of reasons, such as investing in the building societ}' connected with
the company or buying a house. A sale without this consent dis-
qualifies the employee for a renewal of his agreement, but he may
qualify and again become a profit-sharer after the end of a year, by
saving1 two weeks' wages.

In the case of the other half of his bonus, the withdrawable
half, increasing restrictions have been placed on those who take it
out in cash, until it has become practically the same as the stock
bonus. Those who regularly withdraw this bonus are struck off
the list the same as those who sell their stock bonus. Substan-
1 Co-Partnership Journal, July, 1904, p. 100.

86 NATIONAL CIVIC FEDERATION.

tially, the entire bonus, as well as the dividends, is therefore now in-
vested in stock.

There remains, however, the possibility on the part of the
thriftless of raising money through pawn-brokers and others on
pledge of their stock certificates, but this practice also recently has
been stopped by calling in all stock certificates belonging to em-
ployees and issuing a single certificate to those who possess more
than one. This also enables the company to discover these who
have sold their certificates. Finally, while the company has hither-
to employed men both under agreements as profit-sharers and with-
out agreements, the chairman has recently given notice that men
not worthy of an agreement on account of selling or pawning their
stock are not worth keeping in the employment of the company1.
Thus the profit-sharing system has gradually developed from a
simple bonus payable in cash and disposable at will by. the employee
into a semi-compulsory paternal partnership. The stock can be
withdrawn or sold only when employee leaves the service of the
company. As a result, instead of only 40 per cent, who save the
bonus, the number who save is 95 per cent. The total amount of
stock held by employees, including officers, is about £250,000
($1,250,000) equivalent to 4 per cent, of the outstanding capital
stock of $30,000,000. Of this, the amount held by 250 officers is
£50,000. The amounts held by the 1,627 workmen who have £20
and over are as follows2 :

Stock-holdings of Workmen.

Number. Holdings.

470 £20

192 25

310 30

115 35

126 40

47 45

70 50

21 55

47 60

26 65

34 70

169 100 and upwarfls.

1,627

Many of those holding £100 and upwards have £200,
£300 and £400. The total number of workmen holding stock is
about 4,500, and the number holding less than £20 is therefore
about 2,800.

The machinery for managing the sliding bonus has developed
along with the improvements in the investment of the bonus. At
first there were simply two auditors, one selected by the workmen,
another by the company. Then a committee of management was
created, consisting of 18 members elected by the Board of Directors

1 Co-Partnership Journal, January, 1906, p. 3.

"Co-Partnership Journal, August, 1905, p. 176; September, 1905,
p. 187.

LABOR AND POLITICS. 87

of the company and 18 members elected by the profit-sharers. This
committee is the center and key, not only in the system of profit-
sharing, but also in the administration of other funds to which em-
ployees and the company jointly contribute, such as the sick, super-
anuation, and accident funds. The 18 members elected by the
directors include the chairman of the board (who is ex-officio chair-
man of the committee), the secretary of the board, a director, the
chief engineer, station engineers, superintendents, and foremen.
The secretary of the committee is also the company accountant,
elected by the committee, but without a vote. The 18 workmen's
representatives are elected from the several stations in proportion to
the number of profit-sharing workmen. When the title was changed
to " Co-partnership " in 1904, it was decided to restrict election to
those holding £25 stock or more.1 They hold office for three years,
so that six are elected each year. Lists of those eligible for election
by virtue of holding £25 stock and of those eligible to vote as stock-
holders, are sent to each station. Nomination and election are by
ballot. In this election, foremen are included as workmen, and
some of them are elected as workmen's representatives. Since fore-
men are also elected as company representatives, and are in all
cases the agents of the company in managing the employees, they
do not in a proper sense represent the interests of the wage-earners.
The co-partnership committee is simply a means of registering the
will of the company through its chairman, and the claim that it is *
joint committee with equal representation is a fiction as well under-
stood by the workmen as by its authors.

The culmination of this interesting development of profit shar-
ing into co-partnership is found in the election by the profit sharers
of three members of the Board of Directors of the Company. This
is permitted by special Acts of Parliament in 1896 and 1897 au-
thorizing the directors to prepare a scheme for the election of one
or more directors by the share-holding employees of the company.
The qualifications fixed by the directors are at least seven years
constant employment by the company and the ownership of at least
£100 stock. Not all of the employee shareholders are eligible as
voters, but only those holding at least one share of the denomina-
tion of £5. The number of voters in 1905 was 3,163.2 Nomina-
tion and election are by ballot, the shareholder signing his name
with the number of votes to which he is entitled according to his
number of shares. Two of the directors are elected by the work-
men and one by the officers.3 The Workmen's Directors are a
foreman of the carpenter shop and a time-keeper. These directors,
representing £200,000 stock, sit and vote on equal terms with the
other six directors representing £6,000,000. Such doubts as existed
in the minds of the older members of the board as to the success
of this experiment have been entirely removed by the results of the
elections. As stated by one of them, the employee directors " have

1 Co-Partnership Journal, May, 1904, p. 73.

2 Co-Partnership Journal, November, 1905, p. 228.

3 Co-Partnership Journal, August, 1905, p. 171.

NATIONAL CIVIC FEDERATION.

not shown themselves the directors of any particular section of the
shareholders, but they have worked in the best interests of the com-
pany from every point of view.1"

SICK AND DEATH BENEFITS.

Provision for sick and death insurance in the undertakings
visited falls under three heads, according to whether it is provided
by mutual schemes of employer and employees, by trade unions, or
by friendly societies not trade unions. The pioneers in the adop-
tion of insurance benefits and those which at the present time pay
the largest aggregate benefits are the old-line trade unions. In ad-
dition to their strike and out-of-work benefits, the engineers, carpen-
ters, bricklayers, painters, and similar unions of "tradesmen" pay
sick benefits of varying amounts. This class of labor is but a small
part of the total force of these enterprises, being employed in the
repair shops, but their organizations are so strong that union mem-
bers are found in enterprises which prevent the organization of the
operative staff. At the same time members of these unions are
found in much larger proportion in the municipal plants than in
the private plants, and consequently to this extent those plants are
better provided with benefit insurance. The other class of unions,
those formed since 1889, while not usually providing superannuation
and out-of-work benefits provide as large or larger sick, death, and
accident benefits. The National Union of Gas Workers pays 10s.
for the first thirteen weeks and 5s. for the second thirteen weeks of
sickness or accident disability, a total of £9 15s. for the maximum
period ; and a death benefit of £8 for a member and £4 for a mem-
ber's wife. These benefits therefore apply to the municipal gas
works in Manchester, where the union has a local branch. The
Municipal Employees' Association, represented in the Glasgow Gae
Works and the London County Council Tramways, pays 10s. for
eight weeks, and 5s. for four weeks, a total of £5 for the maximum
period, and death benefits of £1 to £10, according to length of mem-
bership. The National Amalgamated Union of Labor, which in-
cludes nearly all of the employees of the Newcastle Gas Company,
pays no sick benefit, but pays an accident benefit and a death
benefit of £4 for a member and £2 for a member's wife. The Tram-
way and Vehicle Workers, including 90 per cent, of the employees
in the municipal tramways of Manchester and the London County
Council, pays sick benefits on three scales, ranging from 7s. to 15s.
for eight weeks, 5s. to 12s. the second eight weeks, and 2s. 6d. to
10s. the third eight weeks, the total payments for the maximum
period being respectively £10 12s., £16 and £29 12s. It pays also
death benefits of £5 to £10, acecording to period of membership.
The Electrical Trades Union, represented in the Glasgow and Lon-
don Municipal undertakings, pays 10s. and 5s. for twenty-six weeks,
total £9 15s.

The mutual schemes are found in the South Metropolitan Gas
Works, the Municipal Gas Works of Birmingham, and the Muni-

1 Co-Partiiership Journal, August, 1905, p. 171.

LABOR AND POLITICS. 89

cipal Tramways of Glasgow. The South Metropolitan scheme is
the oldest, having been established for officers as early as 1842, and
being extended to different classes of workmen at different times
until it now reaches all of the permanent employees, including the
winter men in the retort house. The total number is 5,083, as
against 6,051 contributing to the accident fund. Membership is
nominally voluntary but actually compulsory. Dues are 3d. and 6d.
a week, and the company guarantees the stability of the fund, pro-
vided the members pay subscriptions and prevent imposition. The
payment on this account in 1905 was £1,895, equivalent to 1.8d.
per member per week and one-third of 1 per cent, of the company's
pay roll. Tire company appoints the trustees, who decide all dis-
putes. The full benefits are not paid until a workman has been
employed twelve months, and they amount to 12s. and 6s. a week for
six months, for the members contributing 3d. per week, equivalent
to £10 16s. for the maximum of six months, and 18s. and 9s. for the
members paying 9d., equivalent to £16 4s. for the maximum period.
On occasion of death an extra levy is made on the men at the sta-
tion where the death occurrred, the amount ranging from 2d. in the
largest station to 9d. in the smallest.

Four other private companies make small guarantees, limited to
£20 to £50 to sick funds of the employees. These are the two elec-
tric companies at Newcastle and the City of London Electric Com-
pany. In the Birmingham Gas Works all employees are required to
be members of the sick fund, and the corporation contributes £625.
A similar requirement is also the case in the Glasgow Corporation
Tramways Friendly Society and Superannuation Fund, where the
members contribute 6d. and the corporation 4d. a week. The
amount paid by the municipality i'n 1905 was £2,129, equivalent to
1 per cent, on wages. The Manchester Electrical Department con-
tributes £370 to a thrift fund, to which employees are required to
contribute. The Liverpool corporation requires all employees to
belong to the Tramways Benefit Society and to contribute 3d. or 6d.
a week, but the corporation makes no contribution or guaranty.
Aside from these instances, there are no sick and death benefits in
which the employing company or corporation takes a part, although
there are benefit societies maintained solely by employees in several
of the undertakings.

SUPERANNUATION OR PENSION BENEFITS.
Five of the enterprises investigated have adopted systems of
superannuation benefits or pensions to aged employees on retire-
ment. One of these is a private company, the South Metropolitan
Gas, and four are municipal undertakings, namely, Birmingham Gas,
and the Glasgow, London County Council, and Liverpool Tramways.
The oldest of these schemes is that of the South Metropolitan Com-
pany, which was first adopted in 1855, and at the end of fifty years,
in 1905, the fund was yielding £2,912 in pensions to 113 annuitants,
the oldest having been on the list since 1883. Workmen in perma-
nent employment are eligible, and membership is not a condition of

90 NATIONAL CIVIC FEDERATION.

employment, but the engineers and heads of departments twice a
year examine their lists of workmen and put on the fund all who
are eligible. Retort house men engaged only for the winter are not
eligible. The number of subscribers in 1905 was 4,100, or two-
thirds of the number 6,051 on the accident fund. Contributions are
3d. per week, but members may pay 6d. and receive additional bene-
fits. Very few do so. The company contributes a minimum of
3d. per member per week, and since 1900 has guaranteed the sta-
bility of the fund. This guarantee required additional payments
in 1905 equivalent to 2d. per member, making the total contribu-
tion of the company in that year 5d. per member per week, or
£4,276, equivalent to nine-tenths of 1 per cent, on the pay roll.
The reserve fund is invested in the company's ordinary stock. A
member of less than ten years' standing receives the whole of his
subscriptions without interest on leaving the company's service, and
two-thirds of his subscription if he has been a member more than
ten years. The scale of benefits has been revised at different times,
and now provides that payments shall begin at any age after ten
years' subscription and twenty-five years' service, but if the member
retires before he is sixty-five years of age the amount of the benefit
is reduced one-twentieth for each year short of the pension age.
At the age of sixty-five the pensions range from 10s. per week after
twenty-five years' subscription to 17s. for forty-three years' mem-
bership. Of the 113 pensions in 1905, there were 78 at 10s., 12 at
12s. and 12s. 6d., 13 at 14s. and 10 at 7s. to 18s. In a few cases
of especially valuable employees the company supplements the pen-
sions by donations, which amounted in 1905 to £868. In the case
of injury resulting in permanent incapacity a member of ten years'
standing receives 10s., but this is deducted from his accident bene-
fit. In case of death after less than ten years' membership, the
widow or dependent children, but no other person, is entitled to
the whole of the member's payments, or three-fourths of the pay-
ments after more than ten years' membership.

The municipal superannuation schemes are much more recent.
The Glasgow plan dates the accumulation of the fund from the
year 1896, two years after the tramways were municipalized, and
the pensions come into operation in 1911. Pensions begin after
fifteen years' service at the rate of 10s. per week, and increase Is.
for every additional year of service until the maximum of 20s. is
paid after twenty-five years' service. Members contribute Id. per
week and the corporation an equal amount, the total 2d. being in-
cluded in the dues of the Friendly Society, to which members con-
tribute 6d. and the corporation 4d. All employees are required to
contribute to this fund.

The London County Council's Superannuation and Provident
Fund came into operation in 1895, and it was extended to tramway
employees in 1904. The regular employees of the tramways are
required to contribute to this fund unless they can prove that they
are making, through rfiendly or benefit societies, benefits substan-
tially not less than they could secure under the Council's scheme.

LABOR AND POLITICS. 91

The dues are about 2£ per cent, of the wages, and the Council con-
tributes an equal sum. A member withdrawing at any time re-
ceives the whole of what he has contributed, with interest. In-
stead of a designated weekly payment on superannuation the mem-
bers receives the whole of his own and the Council's contributions
standing to his credit, but this must be invested in an annuity pur-
chased and held in the name of the Council. These payments pass
through the books of the Council, and the Council thus retains
power to prevent the member selling or borrowing on pledge of his
annuity, and to make the payments direct for the maintenance of
the family or other dependents.

The Liverpool Tramways superannuation plan is not yet per-
fected in its details, but the corporation began in 1905 a contribu-
tion on its part looking to the support of such a scheme.

ACCIDENTS TO EMPLOYEES.

Parliament enacted in 1897, and amended in 1900, a Work-
men's Compensation Act, whose provisions cover the gas and elec-
tric but not the tramway undertakings which were investigated.
The act is supplementary to, rather than a substitute for, the Em-
ployer's Liability Act of 1880. The workman may proceed under
the Employer's Liability Act or the common law in all enterprises,
including tramways, but if he loses his case the court may in elec-
tric and gas undertakings assess his compensation under the acts of
1897 and 1900. The important innovation in these acts is the fact
that carelessness or negligence of either employer or workman is
not considered. Only " serious and willful misconduct " of the
injured man relieve the employer of paying him compensation.
The employer who is entirely free from blame is required to make
compensation for accidents the same as one guilty of negligence.
Furthermore, the amount of compensation is fixed within certain
limits. No compensation is paid on account of the first two weeks
following an accident.

The act distinguishes between total and partial incapacity.
Total incapacity entitles the workman, beginning at the end of two
weeks, to a weekly payment of one-half his weekly earnings, but
this payment shall not exceed 80s. ($4.85) a week. Partial in-
capacity entitles him to a smaller amount, to be determined with
reference to the lower wages he is able to earn. If the incapacity
is permanent, the payment becomes a weekly pension for life. But
the employer at any time may have the payment reduced or stopped
if he can show to the court that the man's earning capacity has
partially or wholly recovered; and the workman may have a par-
tial payment increased if he can show that the incapacity is more
serious than was judged at first. The employer, but not the work-
man, has also the right to obtain a settlement of a lump sum by
way of commutation of the weekly payments.

In case of fatal accident the act takes into account whether
the workman had dependents, and if so whether they were partially

'•« NATIONAL CIVIC FEDERATION.

or wholly dependent. Where wholly dependent the minimum com-
pensation is £150 ($750), the maximum £300 ($1,500).

The object of the Compensation Act is not to afford complete
indemnity, as would be afforded under the common law or under
Employers' Liability Acts, but to provide that a portion, approxi-
mately one-half, of the losses from industrial accidents, however
caused, should be borne by employers.

The County Courts enforce the act through arbitrators, medi-
cal referees, registration of awards, etc., and all official fees are
paid from the public treasury. No distinction is made between
public and private employment, and the act applies equally to
municipal and private enterprises. There is a provision, however,
for "contracting out," by which an employer and his workman
may substitute a mutual benefit scheme. This provision has been
taken advantage of by but one of the enterprises investigated, the
South Metropolitan Gas Company. All of the others, both muni-
cipal and private, are governed by the terms of the act. In the
latter case it is the practice of some employers to insure themselves
by policies taken out with insurance companies, whose business in
this line has reached large proportions. Such insurance changes in
no respect the procedure under the law — the insurance company
simply agrees to pay whatever compensation is awarded and to
bear the legal expenses. The premiums charged are a certain per-
centage on annual payments in wages.

The ultimate object of the act is not so much the payment of
compensation as the prevention of accidents. But in general, ac-
cording to the report of the Home Department Committee in 1904,
the act has not had any ascertainable effect one way or the other
upon the safety of the workmen.1

There have been a large amount of litigation respecting the law
and some conflicting decisions. The workman who is not provided
with legal advice or not prepared to prosecute his case in court is
deprived of the full benefits of the law. For this reason one of the
prominent features of the trade unions of Great Britain is their
provision for legal assistance. Not only does this appear in the
amounts expended for lawyers' fees, but also in the work of the local
and district organizers and secretaries of the unions, who have be-
come expert negotiators in presenting the claims of their members
to employers and securing settlements without litigation. The
imion of Gas Workers and General Laborers make the claim of
having recovered for their members in accident and wage cases,
£45,993. Other unions have recovered many thousand pounds
under the Employers' Liability and Compensation Acts. The de-
partmental committee which in 1904 inquired into the workings of
the Acts, declared:

" Where the organization of the associations both of employers and
workmen is most complete there is the least amount of litigation and
the greatest satisfaction with the settlements reached. Far greater dlffl-

1 Departmental Committee on Workmen's Compensation, Home
Office, Vol. 1, p. 23, 1904.

LABOR AND POLITICS. 93

fultles appear to arise where there is no trade organization. The work-
man who has no organization to resort to for advice and assistance in
such matters is comparatively helpless or has to call in legal assistance.
Costs are at once incurred, and the dangers above pointed out attending
litigation are much more likely to occur." 1

In addition to the benefits secured under the Workmen's Com-
pensation Acts, the labor unions endeavor to attract and hold their
members through accident benefits. They are additional to the
benefits secured from employers and supplement the act in one im-
portant particular, namely, provision for the first two weeks fol-
lowing the accident, during which time compensation can not be
secured from the employer under the act. They furnish also medi-
cal aid as needed, which the employer does not, except in so far as
the protection of his interests leads him to render first aid at the
time of the accident. All of the unions provide accident benefits.
In some cases it is in the form of the sick benefits already de-
scribed, which cover accidents causing temporary disability. This
is true of the National Union of Gas Workers and Laborers, the
Tramway and Vehicle Workers, the Municipal Employees' Asso-
ciation, and the Amalgamated Engineers. Other unions not hav-
ing sick benefits pay special accident benefits. The National Amal-
gamated Union of Labor pays accident benefits of 6s. the first
thirteen weeks and 4s. the second thirteen weeks. The Northern
United Enginemen pay benefits of 8s. for ten weeks, 5s. the second
ten weeks and 3s. the third ten weeks. The Birmingham Gas
Workers pay 10s. the first thirteen weeks and 5s. the second
thirteen weeks. Others have a scale for accidents different from
that for sickness, such as the Electrical Trades Union, 10s. for
fourteen weeks. In all cases payment begins at date of accident or
receipt of doctor's certificate. Those unions whose members are
peculiarly exposed to accident have adopted a special benefit for per-
manent disability. The National Union of Gas Workers, to those
who pay Id. (2 cents) additional dues, grants £50 to full-pay mem-
bers and £25 to half-pay members, in cases of total permanent dis-
ability, and £20 to full-pay members and £10 to half-pay members
in cases of partial permanent disability. The Tramway and Vehi-
cle Workers grant £50 ($250) to members on the A and B scales;
and the Municipal Employees grant £100 to full-pay members in
cases of permanent total disability, and £50 to half -pay members.
These accident benefits are considered by the unions1 as one of the
principal inducements offered to attract and hold their members.

Under the Workmen's Compensation Act, unlike the Em-
ployers' Liability Act, a contract on the part of the workman to re-
lieve the employer of liability is void, and the workman can secure
compensation notwithstanding such contract. If, however, the em-
ployer and his workman submit a scheme of compensation which
in the judgment of the Registrar of Friendly Societies is " on the
whole not less favorable to the general body of workmen and their
dependents than the provisions of the Act," such scheme may be
substituted. The Registrar issues a certificate for not lees than five
'Report, p. 43.

94 NATIONAL CIVIC FEDERATION.

years and may revoke it on evidence. Under this provision the
South Metropolitan scheme providing for contributions by the
workmen and by the company was certified in 1898 and again in
1903.

No scheme can be certified which requires the workmen to join
on condition of their hiring. Consequently one of the inducements
offered by the South Metropolitan scheme is the promise of certain
benefits not included in the Workmen's Compensation Act, espec-
ially payment during the first two weeks and medical attendance.
The company also promises re-employment to subscribers on re-
covery at not less than 24s. a week, if the wages exceeded that
amount. Finally, formal acceptance by each employee is not neces-
sary, but the subscriptions are deducted from wages on the first
pay day in each month. The employee who does not wish to sub-
scribe must notify the company to that effect, otherwise he is held
to be a subscriber and his dues are deducted. This deduction con-
stitutes, acceptance of the benefits of the fund in lieu of claims
under the Workmen's Compensation and Employers' Liability
Acts. It is deemed a contract under the " contracting out " clause
of the Workmen's Compensation Act. All men in receipt of weekly
wages, including all odd or casual men, are " invited " to contribute
to the fund, and acceptance of this invitation, by permitting the de-
duction of dues, is practically a condition of hiring. The number
of subscribers is therefore the entire force covered by the Work-
men's Compensation Acts, namely, 6,051 in 1905, and although
there is a clause in the rules providing for non-members this has no
effect because there are none.

The Eegistrar of Friendly Societies receives report each year,
and this report is favorable if the scheme is solvent. But since
solvency can be maintained by keeping down the amounts paid for
accidents as well as by keeping up the reserve funds, the account-
ants' examination affords no guaranty that the compensations act-
ually paid are as many or as large as those required by the act. In
order to guard against such contingencies the Registrar is required
to make an examination, provided the workmen send him a formal
complaint that the scheme is being violated or is not fairly adminis-
tered. This complaint is made out according to a blank form fur-
nished by the Registrar and is signed by the workmen " on behalf
of themselves and the other workmen of the said employer."1 This
provision is entirely worthless unless the workmen are protected
from dismissal by a trade union or otherwise. Consequently the
cases of inadequate compensation at the South Metropolitan works,
compared with what the act would require, do not provoke public
complaint on the part of the workmen or investigation by the
Registrar. The administration of the fund is under the charge of
the Co-partnership Committee, which, as shown above, is a pre-
tended joint committee of the company and workmen, but really a
committee of the company. Since only co-partners are represented
on the committee, there are 1,000 to 1,500 subscribers to the acci-
1 Departmental Committee, Vol. 1, p. 194.

LABOR AND POLITICS. 95

dent fund not represented in its management. The accounts and
moneys are kept by the company's officers at the company's expense.
Two auditors are appointed by the Co-partnership Committee, one
by the workmen's representatives, the other by the company's repre-
sentatives.

The scale of benefits show certain departures from that of the
Workmen's Compensation Act. It provides certain benefits not in-
cluded in the act. These are medical attendance and payment dur-
ing eleven days of the first fortnight. " Minor and slight accidents,"
disability for not less than three days or more than a fortnight, en-
title members to 12s. a week, and are placed under " Class A."
These are benefits for which the employer is not responsible
under the act. " Class B " includes " Serious accidents," causing
incapacity for more than a fortnight. Instead of one-half the man's
wages after the first fortnight as provided by the act, he is entitled
to a flat rate of 18s. a week beginning after the third day. This,
with the exception of the first fortnight, is more than the act awards
to those whose wages are less than 36s. and less than the act awards
to those whose wages are more than 36s. If the employee is a mem-
ber of the Superannuation Fund, his pension from that fund is de-
ducted, but the total from the two funds must not be less than he
could have obtained under the Workmen's Compensation Act.

" Class C " includes accidents " clearly caused by the negli-
gence of the company or its officers," and the benefit is 24s. a week.
This differs from the Workmen's Compensation Act in that the lat-
ter adds nothing to the amount of weekly payments on account of
the negligence of the employer, but the workmen may proceed
against the employer under the Employers' Liability Act, and if he
loses he may fall back on the Compensation Act. This course is
not open to one who has contracted out.

" Class D " includes injuries caused by the " serious and will-
ful misconduct" of the member. These receive only the amount
derived from their own contributions. This agrees with the pro-
visions of the Compensation Act, which excludes all questions of
carelessness or negligence, but excludes workmen guilty of " serious
and willful misconduct." But the juries in the South Metropolitan
scheme are requested to look into the matter of negligence, and their
verdicts fix the blame of neglect or carelessness. To what extent
these verdicts of negligence are interpreted as misconduct depends
upon the authority that decides the question. Under the Compen-
sation Acts, the courts have nearly always overruled the contention
of employers who set up " serious and willful misconduct " as a de-
fense. But in the South Metropolitan scheme the employer and
not the court is the final judge. This applies to the many warning
notices and special rules posted about their works, the non-observ-
ance of which is held to be equivalent to serious and willful mis-
conduct. In one case testified to before the departmental committee
a man who cleaned machinery while it was in motion was debarred
because he had willfully done what he had instructions not to do.1

1 Departmental Committee, Minutes of Evidence, p. 7209.

96 NATIONAL CIVIC FEDERATION.

The procedure in determining the amount of compensation,
which is done by assigning accidents to the several classes, begins
with " juries of workmen," introduced in 1892. Two members of
the Co-partnership Committee and ten others, selected alpha-
betically from a list of employees who have been three years in the
company's service, constitute the jury. The engineer of the sta-
tion is the presiding officer, except in fatal cases, when the Chairman
of the Company presides. The jury retires alone to agree upon a
verdict as to the causes of the accident, whether due to defect of
plant, machinery or means of protection, or to the neglect or care-
lessness of any official or workman. After determining this point,
the jury consults with the presiding officer respecting the class in
which the injured man shall be placed. If there is doubt as to
whether the man is entitled to compensation, or as to the amount of
compensation, the twelve jurymen decide by a two-thirds vote, but
the injured workman or the company's engineer may appeal to the
Chairman of the Company, whose decision is final.

Under the Workmen's Compensation Act, special protection is
thrown about the medical examination. The workman is entitled
to have his own doctor and if he does not agree with the company
doctor as to the man's incapacity, the decision is made by a medical
referee appointed by the court. These i^iree physicians may he
called in at the time of the accident or at a later time when the em-
ployer moves to have the compensation reduced or stopped on the
ground that the man has partially or wholly recovered. The court:
then decides the case on the advice of the referee. In the South
Metropolitan scheme the only doctor provided when the claim is
made is the company doctor, who also acts as surgeon to the Sick
Fund. Upon his report the Co-partnership Committee decides
whether to stop or reduce the allowance.

The operation of the system may be seen in a case reported in
the Journal published by the Co-partnership Committee.1 A brick-
layer injured in October, 1904, was placed in Class A at 12s., and
remained on that scale until May, 1905, a period of 38 weeks.
Under the Compensation Act he should have received half pay, or
the maximum 20s., the union scale for bricklayers in London being
42s. His total compensation for 33 weeks was therefore £12 4s.
less than the legal scale. Even under the South Metropolitan
scheme he should have been transferred to " Class B," and received
18s. after the end of the first fortnight. In 'this respect the Co-
partnership Committee did not carry out their own rules in good
faith. At the end of eight months the hospital surgeon reported
him partially recovered and the company doctor reported him
" quite recovered " and " able to resume work." The engineer of-
fered him light work, presumably at 24s. a week, according to the
promise of the company contained in the rules, although the amount
is not stated. This the injured man refused, preferring the 12s. a
week until he could resume as a bricklayer. The Co-partnership

1 South Metropolitan Gas Company Co-Partnership Journal, Decem-
ber, 1905, pp. 256, 257.

LABOR AND POLITICS. 97

Committee ordered him to be re-examined, and he was again re-
ported as fit for work by the company's medical officer. His acci-
dent money was therefore stopped. Under the Compensation Act
he would have been entitled to the opinion of his own doctor and of
the medical referee in case of disagreement with the company's doc-
tor. And, if he could not earn full wages as a bricklayer, his acci-
dent pay could only have been reduced, not stopped. The courts
differ on this point. Some of them permit no reduction in the acci-
dent pay, so long as his present wages added to his accident pay do
not exceed his former earnings.1 Other judges reduce the com-
pensation to one-half of the difference between his present wages
and his former wages.2 Under either line of decisions the brick-
layer, instead of being cut off altogether, would have received half
pay or less, in addition to his earnings at the lighter work, until
such time as he could resume work as a bricklayer at full wages.

In the case of fatal accidents the Compensation Act grants to
dependents three years' wages in a lump sum, the minimum, how-
ever, to be £150 and the maximum £300. The South Metropolitan
scheme changes this into a weekly pension of 10s. to 20s. for the
first three years and a minimum of 10s. thereafter. This continues
for the widow while leading a respectable life or until re-marriage.
The Co-partnership Committee determines the amount and termina-
tion of the pension. In general the weekly pension is of more ad-
vantage to a widow than the lump sum on account of her inexperi-
ence of handling large sums of money. In this respect the scheme
is superior to the Compensation Act. Also in case of continued
widowhood the pension extends the benefit over the period when it
is most needed, and contributes a total sum larger than the maxi-
mum of the Compensation Act. In the South Metropolitan
scheme, in 1905 there were twenty-three pensions, of which two had
been paid fourteen years, three thirteen years, one twelve years, one
eleven years, one ten years, and others from one to seven years.
Fifteen were paid the minimum amount 10s., five were paid more
than the minimum, and three less than the minimum stipulated in
the rules.

The financial results for eight years, 1898 to 1905, during
which the fund has been established, show that the workmen have
paid £3,958 Is. 3d. and the company £9,155 Is. 3d. The total
amounts paid on account of benefits .are as follows, distinguishing
the items for which the company is responsible under the Com-
pensation Act, and those that are additional to the Act :

£ s. d.

Doctors' fees 357 9 11

Class A 1,022 8 6

Class B 2,199 0 0

Not under Compensation Act 3,579 18 5

The total payments in Class B (above) have been £6,879 9s. Id.,
but, according to the estimate of Sir George Livesey that 57 per cent..

1 Board of Trade Labor Gazette, January, 1906, p. 24.
'Departmental Committee, Vol. 1, pp. 83-89, 181, 182.

Vol. III.— 8.

NATIONAL CIVIC FEDERATION.

of the payments in the three classes are made beyond the first two
weeks, Class B is divided in the table on this basis.

Class B (after first two weeks) 4,680

Class C 310

Pensions to widows 3,718

Commutations 350

Balance 476

d.
7
0
2
0
8

Total under Compensation Act 9,536 4 0

From this table of eight years' results, it is seen that employees
have received £3,579 18s. 5d. for medical attendance and benefits
during the first fortnight which they would not have received
under the Compensation Act. For these additional benefits they
have paid ;£3,958 Is. 3d. which they would not have paid under the
Act. Consequently their contributions have paid all of the extra
benefits which the scheme provides and an additional amount of
£380 as a contribution in aid of the company in paying the com-
pensation for which, under the Act, the company is responsible.

WAGES.

The following table, compiled from reports of the Board of
Trade, shows the aggregate changes in rates of wages in Great
Britain for the years 1894 to the beginning of 1906. They indicate
in all trades a net increase for the five years preceding 1901, and
a decrease for each of the succeeding years. The wages of public
employees include both government and local bodies prior to 1903
and only local bodies for 1903 to 1905. They show in general a
slight tendency towards an increase in wages of public employees,
even when wages in general are declining :

Changes in Rates of Wages, 1894, to Beginning of 1906.
Tenth Abstract of Labor Statistics, pp. 54, 56 1894-95 ("Labor
Gazette," January, 1906,, p. 4, 1896-1905), Exclusive of Agricultural
Laborers, Seamen, Railway Servants and (1896-1905) Government
Employees.

Employees of Public
All Trades. Authorities (Local

Authorities, 1903-5).

1894.
1895.
1896.
1897.
1898.
1899.
1900.
1901.
1902.
1903.
1904.
1905 '

Number of

Net In-

c
Number of

•v

Separate

crease (-)-)

Separate

Net In-

Individuals

or De-

Individuals

crease

Affected.

crease ( — ).

Affected.

(+).

670,386

— 45,091

9,229

4- 681

436,958

— 28,199

6,935

4- 559

598,865

4- 26,152

14,523

-L 882

582,333

4- 30,494

20,982

4- 1,514

1,010,057

4- 80,572

12,139

4- 857

1,165,478

4- 89,816

19,524

4- 1448

1,110,031

4- 206,772

31,743

4- 2,592

907,199

— 77,902

27,628

-f 1,833

883,191

— 72,865

7,871

4- 602

892,922

— 38,557

4,974

4- 282

799,959

— 39,278

7,546

4- 609

571,865

— 8,029

5,242

4- 404

Preliminary figures subject to revision.

LABOR AND POLITICS. 99

In making comparisons of the wages paid by companies and
corporations, account must be taken of the variations in the general
level of wages in the several localities. Our investigations on this
point have been made as careful and extensive as possible and they
indicate that for common labor, unorganized, the level is about
the same for the cities of Manchester, Birmingham, Leicester, and
Sheffield ; that it is somewhat lower for Liverpool, and considerably
lower for Dublin, Glasgow and Norwich, these being located at
seaports or in an agricultural region; that the level is highest in
London, and that Newcastle has the highest wage level outside of
London. The following table shows substantially the relative
position of the places visited :

Local Standards for Wages of Common Unorganized Labor.

Prevailing Rates.

Towns. i A ^ Relative

Per Week. Per Hour. Position,

s. d.

Manchester 20 4.5 100

Birmingham 20 4.5 100

Leicester 20 4.5 100

Sheffield 20 4.5 100

Liverpool 19 4.5 95

Dublin 18 4.0 90

Glasgow 18 4.0 90

Norwich 18 4.0 90

Newcastle 21 4.8 105

London 22 5.0 110

Gas Works.

In the seven gas works visited the nominal rates of wages of
men working on shifts in the retort houses are augmented by extra
pay for Sunday work and by pay for holidays and vacations. The
extent of these extra remunerations is shown in the answers to the
schedule questions. In the following statistical table the compar-
ison has been made by distributing over the entire year this extra
pay and adding it to the nominal rates. This results in increasing
the nominal rates by 2 per cent, in Leicester and 3.8 per cent, in
Sheffield to 7.2 per cent, in the South Metropolitan and 8.3 per
cent, in Manchester (col. 3). The percentage of increase in
Leicester is low because no work is done on Sundays, so that the
time-and-half or double pay for Sunday work obtaining in other
places does not augment the regular weekday rates. The correction
in Leicester allows only for pay for holidays, while in the other
places it allows both for holidays and for extra pay on Sundays.
On the other hand the low increase of 3.8 per cent, in Sheffield is
due to the absence of holidays and is owing solely to the extra pay
on Sundays and holidays.

With these corrections, after reducing wages to the hourly
basis, it will be seen (col. 4) that the highest wages of stokers are
paid to the eight-hour men of the South Metropolitan Company
(9.65d.) and the lowest are paid in Glasgow (7.74d.) But, if
we take into account the general level of wages in the localities, the
highest wages relatively are paid in Manchester (9.34d.) and the

100 NATIONAL CIVIC FEDERATION.

lowest are paid to the twelve-hour men of the South Metropolitan
Company (7.77d.). This will be seen by comparing columns 6 and
7. Taking the four establishments where the general level of wages
is about the same, the rates of pay are in the following order:
Manchester, 9.34d.; Sheffield, 8.95d.; Birmingham, 8.70d., and
Leicester, 8.28d., and the relative standing of these places is, Man-
chester 100, Sheffield 96, Birmingham 93, and Leicester 89.

Taking Glasgow, where the general level of wages is 10 per
cent, below that of the latter four places, it will be seen that, rela-
tively speaking, the wages at the Tradeston station (7.74d.) are
equivalent to those paid at Birmingham, while the wages at the
newly-equipped Provan station (8.13d.) are slightly below those
paid at Sheffield (8.95d.).

Taking Newcastle, where the general level of wages is about
5 per cent, higher than the level of the four places mentioned, the
wages of stokers (9.09d.) are equivalent to those at the Tradeston
station, Glasgow (7.74d.) and at Birmingham (8.7d.).

Taking the South Metropolitan Company, where the general
level is 10 per cent, above the four places, the hourly wages of the
eight-hour or three-shift men (9.65d.) are equivalent to those at
the Tradeston station, Glasgow (7.74d.), Birmingham (8.7d.) and
Newcastle (9.09d.), but lower than those at Manchester, Sheffield
(8.95d.) and the Provan station, Glasgow (7.71d.). On the other
hand, the hourly rates of the twelve-hour or two-shift men (7.77d.)
are relatively the lowest of all, being about 16 per cent, lower than
the wages at Leicester, when compared with the general level of
wages of the two localities.

The foregoing applies only to the stokers, and does not dis-
tinguish between hand and machine stoking. The average wages
for the entire retort-house are shown in col. 5. These averages
are obtained by giving to each occupation a weight in proportion
to its number of men. In this column the order of precedence is
changed, and, comparing the general level of wages in the locality
(cols. 6 and 8), the average wages in the retort-house are highest
in the Provan station, Glasgow (7.71d.), the Elswick- station, New-
castle (8.66d.), and the eight-hour stations of the South Metro-
politan (9.13d.). Next to these, and practically on the same level
compared with the general level of wages, are Manchester, Sheffield,
the Eedheugh station, Newcastle (8.36d.), and the Tradeston
station, Glasgow (7.13d.). The lowest averages are in Leicester
(7.73d.) and Birmingham (7.77d.).

Summarizing what precedes, with the exception of the twelve-
hour stations of the South Metropolitan Company, and taking into
account the general level of wages in the several localities, it can-
not be said that there is any material difference between the public
and private undertakings in the wages of stokers or in the average
wages of the shift-workers in the retort-houses. The differences
that occur do not show a prevalence one way or other, but they
tend- to follow pretty closely the general level of wages in the
locality, irrespective of whether the undertaking is managed by
a municipality or by a private company. The case of the twelve-

LABOR AND POLITICS.

101

hour shifts of the South Metropolitan Company is peculiar and
requires the discussion of another aspect of the question — the
amount of work done by the stokers.

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102 NATIONAL CIVIC FEDERATION.

It is generally understood in the industry that, under their
exhausting conditions, stokers are not expected to work steadily
during all the hours of their shift, but are required to charge and
draw a certain number of retorts and then permitted to enjoy a
period of rest before going on their rounds again. At the end of the
last round they go home, even though they may not have put in the
full eight hours. All of the shifts in the stations visited are on the
eight-hour basis except the two stations of the South Metropolitan
Company on the twelve-hour basis. Of those on the eight-hour
basis the shortest period of actual work was formerly in the Gay-
thorn station at Manchester, with inclined retorts, namely, three
and one-half hours. At the Bradford Koad station, in the same
place, the time was four and one-half hours, but these figures are
for the year 1904, and the time at both stations has been equalized
to something less than four hours. About four hours is required at
Leicester and a slightly larger amount of time at Birmingham, four
and one-quarter hours, while Glasgow and Newcastle require five
hours, and Sheffield and the South Metropolitan six hours. These,
of course, are not fixed and unchangeable periods of work, but vary
more or less according to emergencies. They are rather the
standards of the several establishments during which it is under-
stood the stint or amount of work can ordinarily be done. In
winter, when the best conditions prevail, the time may be increased
at the Christmas period, but in the summer it may be reduced.
In one case, the Redheugh station, Newcastle, the actual time at
present is six hours, instead of five, but it is expected that when the
men become familiar with the operation of the new machinery of
the station they will be able to reduce their amount of work from
six to five hours. At the Effingham station, in Sheffield, the six
hours is exceeded during the holiday period, so that the men have
no time for meals or rest, and the next shift takes their work un-
finished. This is a hand-stoking station, where the men are re-
quired to lime and seal the doors, while at the hand stations of
Leicester and Newcastle the doors have patent sealers, requiring
considerably less time for a given amount of coal handled. At
Birmingham the original agreement of the union was for six hours,
but it has been gradually reduced to four and one-quarter.

The situation in the South Metropolitan stations is peculiar,
in that two of the stations, Old Kent Road and Vauxhall, are on
the eight-hour system; one of the stations, Greenwich, is on the
twelve-hour system, and another station, Rotherhithe, is on the
eight-hour in summer and the twelve-hour system in winter. This
arrangement was brought about by a vote of the men in the several
stations. Before the eight-hour day was granted to the gas workers'
union in 1889, the practice had been to require about six hours'
work out of the twelve-hours' shift, as is the practice in the United
States at the present time. After the reduction in hours in that
year, the company endeavored to increase vthe amount of work, and
this led to the strike of 1890. "With the disruption of the union
and the adoption of profit-sharing, the work was increased to such

LABOR AND POLITICS. 103

an extent that some of the stokers ultimately complained of their
inability to accomplish it in the eight-hours' shift. The company
then offered them the option of going to the twelve-hour day, at
the same time increasing the amount of work one-fifth and the
amount of pay in the same proportion. This proposition was ac-
cepted in two of the stations, and declined in others, as already
stated. By this change to the twelve-hour system the labor cost of
carbonizing coal was not changed, but the retort-house men were
able to earn 20 per cent, more money, to work more deliberately and
to have a longer period of rest between charges. This accounts
for the standard of six hours, or three-quarter of the eight-hour
shift, devoted to work, and about eight hours, or two-thirds of the
twelve-hour shift. It also accounts for the lower rate of wages
per hour, as shown in the preceding table, where the eight-hour
stokers receive 9d. per hour and the twelve-hour stokers 7|d. per
hour. In the eight-hour shift their daily wages are 6s. and in the
twelve-hour shift they are 7s. 3d. The chairman of the company
thinks that the men would prefer to work two shifts in winter,
because after the day shift quitted work at 2 p. M. the men were
not wanted at home, and they would be better off at work than
elsewhere ; but he thought they might prefer three shifts in summer,
when they could go out of doors for recreation. This is the system
at the Eotherhithe station, although, he says, the men at present
seem to dislike the three-shift system in summer, because it lessens
their pay.

The question of the amount of work done in the retort-houses
at Manchester was dealt with at great length and in detail at meet-
ings of the Manchester Institution of Gas Engineers, held at Man-
chester in February and October, 1904, and reported in the Journal
of Gas Lighting, March 1 and November 29, 1904. The discussion
was concerned with a comparison of " inclined retort installation "
and '^horizontal retort installation." It grew out of a paper pre-
sented by Mr. John Newbigging, the engineer in charge of
the Manchester undertaking, in which he showed that the cost of
labor in the retort house per ton of coal carbonized was only 13.58d.
at the Gaythorn station with inclined retorts, as against 18.47d. at
the Bradford Eoad station with horizontal retorts. The correspond-
ing weights of coal carbonized per man per shift were 4 tons 13 cwt.
at Gaythorn and 3 tons 8 cwt. at Bradford Eoad. The statistical
tables which he offered were as follows :

104

NATIONAL CIVIC FEDERATION.

Gaythorn Station — Inclined Retort Installation.
Labor in Carbonisation.

Occupation.

Rate of Pay
Per Shift.

No. of
Men.

s. d.

li Foremen ........................... 7 6

3 Patchers ..... '. ..................... 5 7

2 Enginemen and breakers ............ 4 9

6 Chargers .......................... 5 9

3 Chargers' Assistants ............... 5 3

18 Drawers ........................... 5 3

3 Firemen ........................... 5 3

1 Fireman's Assistant ................ 3 10

2 Cleaning mains .................... 3 10

1 Coal conveyor ...................... 4 6

Amount of
Wages.

i
d.

. .

, .

. ,

. .

40 J Total cost of carbonization

Cost of labor within the retort house per ton of coal

carbonized, exclusive of coke Is. 1.58d.

Weight of coal carbonized per man per shift 4 1. 13 c. 1 q. 9 Ibs.

Actual duration of physical labor during shift of
eight hours, charging and drawing retorts and
other incidental work 3£ hours.

Bradford Road Station, Horizontal Retort Installation.
Labor in Carbonization.

No. of
Men.

24
48

Occupation.

Rate of Pay Amount of

Per Shift.

Wages.

Foremen

Firemen and two extra fires

Machine M'en

Machine Attendants

Chippers ........................ 5

Patchers ........................ 5

Stackmen ....................... 5

Sweepers and Oilers .............. 2

Compressed Air Enginemen ....... 5

Engine and Breaker Men ......... 4

d.
6
3
9
3
3
7
3
4
3
9

•\
d.

110 Total cost of carbonization

Cost of labor within the retort house per ton of coal

carbonized, exclusive of coke Is. 6 Aid.

Weight of coal carbonized per man per shift 3 1. 8 c. 2 q. 25 Ibs.

Actual duration of physical labor during shift of
eight hours, drawing and charging retorts and
other incidental work 4$ hours.

In the discussion of this paper it was contended by critics that
the apparent advantages of inclined retorts at Manchester were
due to the excessive number of men employed at the horizontal
retorts. The engineer of the Sheffield company said:1

" With regard to the number of men employed for the horizontal
retorts at Manchester, comparing it with Sheffield he found — ignoring
such men as firemen and foremen and the coke handlers, who would be
more or less common to either system — for dealing with 378 tons he had
practically 99^ men. In his case, to deal with 420 tons of coal, he had
59 men. In Mr. Newbigging's case, the coal handled per man worked

1 Journal of Gas Lighting, November 29, 1904, p. 696.

LABOR AND POLITICS. 105

out 3.8 tons ; whereas in his case it worked out at 7.1 tons, so that Mr.
Newbigging had 87 more ruen to do the same amount of work as they
did at Sheffield."

Another engineer said :l

" There was somebody to blame for having this large number of
men on the stoking machines ; and it made it hard on gas engineers
outside with their men pointing to Manchester having double the num-
ber of men for the same amount of work that they had to do."

The engineer of the Blackburn Municipal Gas Works said2
that

" the managers of corporation works could not hope to compete with
works such as Mr. Morrison's (Sheffield), under the management of a
company. In corporation works they had a certain amount of Socialist
element on various Councils, which militated very considerably against
the working cost."

The engineer of the Blackburn Municipal Gas Works said2
comparison was made for his committee at Manchester as to the
wages paid in five other representative towns, and it was found that
the carbonizers performed 13£ per cent, less work and were paid
4£ per cent, more wages.

On the visit of our Commission to Manchester, Mr. ISTew-
bigging reinforced the foregoing statements by saying that he had
30 per cent, more retort-house men than was necessary compared
with other places, but he would not admit that they were more
than necessary when taking into account the hardship of the work
and a generous regard for the welfare of the men. At the above
meeting of the Gas Institution he had said that, whatever criticisms
were made on the labor conditions at Manchester, " in spite of the
admitted excessive generosity on the part of the Manchester Gas
Committee, there were only two places reported in e Fields'
Analysis ' that showed lower labor costs, and Sheffield was not one
of them."

The figures given in the preceding table, eliminating water
gas, show that the labor cost at Manchester is slightly higher than
the cost at Sheffield and South Metropolitan, but lower than the
cost in the other places. Mr. Newbigging's explanation of these
results was to the effect that, in view of the restrictions placed by
his committee against driving the men to harder exertion, he had
recourse to the inclined retorts as entailing the minimum of
machinery with the minimum of labor. A similar explanation
was given by the editor of the Gas Lighting Journal in his review
of the discussion, speaking, however, from the standpoint of the
private companies, which the Journal represents. He said :3

" Mr. Newbigging's reply to his critics was a straightforward and
impartial one; and no one can impeach his honesty or courtesy. One
thing is strikingly plain in connection with this question of inclined
and horizontal retort working at Manchester, it is that no one recognizes
better than Mr. Newbigging the weaknesses and the strength of the great
manufacturing works which he has under his charge. Yet with the

1 Journal of Gas Lighting, March 1, 1904, p. 560.
a Journal of Gas Lighting, November 29, 1904, p. 696.
"Journal of Gas Lighting, November 29, 1904, p. 672.

106 NATIONAL CIVIC FEDERATION.

weaknesses, the final financial costs and results are, as Mr. Newbigging
is able to show, of an eminently satisfactory character ; and there is
no gainsaying this, that, if the weaknesses could be eradicated, the
Manchester gas undertaking would stand second to none in its working
costs and results. ... In effect the choice as between one system
and the other (inclined and horizontal retorts) in Manchester resolves
itself, in our view, into a question of expediency, under the conditions
existing there. But no one — an engineer is not likely to fall into the
error — must take the figures given in Mr. Newbigging's paper as afford-
ing any basis for a general comparison as between the one system and
the other; for the simple reason that, under Manchester working, the
labor on the power machinery in the horizontal retort houses is extrava-
gant and unnecessary. If it were not so, the case for inclined retorts
in Manchester would — by the curtailment of labor in the horizontal
working to normal conditions — be correspondingly impaired. . . .
The conditions of labor and the rates of pay are admittedly excessive,
and herein is the weakness of the manufacturing operations with vitiates
the value of Mr. Newbigging's contribution to the general question and
its usefulness as a guide to others in considering the matter in the light
of their own (we will suppose) more favorable environment."

A defect in the foregoing line of argument is the fact that the
wages in Manchester are the same at both the horizontal and the
inclined retorts and that the hours of actual work are less at the
inclined retorts than they are at the horizontal retorts.

Tramways.

The principal effect of the change to municipal ownership of
tramways is seen in the reduction of the hours of labor. In Glas-
gow, in 1894, at the time when the municipality undertook the
operation, the wages of drivers and conductors were 19s. for seven
days of about fourteen hours each. The municipality at first
reduced the hours to ten and increased the pay to 24s. 6d. for
seven days. During the seven following years the horse cars con-
tinued to be operated, but the hours were reduced in 1899 to six
days of ten hours each, and wages were kept at 24s. for the first
six months' employment, but advanced to 28s. for those who had
been employed three years. With the adoption of electric traction
in 1901 a new schedule was put in force and this was revised in
1905. The hours were reduced to fifty-four. Under the present
scale, the pay begins at 24s. for fifty-four hours and advances every
six months until it reaches 31s. at the beginning of the fourth year.

In Manchester the change to municipal ownership was
made at the same time as the change to electric traction, and the
number of hours were reduced from an average of seventy per week
to a uniform fifty-four per week. The maximum week's wages of
motormen were reduced from 33s. 2d. for seventy hours to 31s. 6d.
for fifty-four hours, and the wages of conductors were increased
from 28s. 5d. for seventy hours to 30s. 4|d. for fifty-four hours.

The London County Council continued to operate horse cars
during the period when electric traction was being installed, but
the hours were reduced from seventy and eighty to sixty a week,
and these continue to be the hours worked by motormen and con-
ductors. The private companies had been paying 26s. 3d. to 42s.
for seventy to eighty hours, and the County Council equalized the'

LABOR AND POLITICS. 107

pay for motormen and conductors on a graduated scale, beginning
at 28s. 6d. and rising to 37s. 6d. at the end of the first year.

The accompanying table shows comparatively the hours and
wages of motormen and conductors on the seven undertakings in-
vestigated. The shortest week is in Glasgow and Manchester,
consisting of nine hours a day for six days ; while the longest is in
the three private undertakings of London, Dublin and Norwich,
consisting of ten hours a day for seven days. The other municipal
undertakings occupy a middle position of ten hours a day for six
days.

The schedules are usually arranged so as to bring the number
of hours on the car within these limits and to make the hours as
nearly consecutive as possible. The policy of the municipal under-
takings is to avoid overtime altogether and to guarantee one day
off in seven without pay. Glasgow, however, is the only place that
pays an extra rate if a man is asked to work the extra day. In the
other municipal undertakings seven days' work augments the weekly
earnings at the ordinary rate. On the other hand, on two of the
private undertakings the men work seven days in the week in order
to earn the weekly rate of pay, while on the third — Dublin — they
get one day off in twelve with pay after the first year of employ-
ment.

On all of the undertakings except two the rate of pay is the
same for extra duty or overtime as for regular duty. The excep-
tions are the London County Council, which pays l| rate, and the
Dublin company, which pays Is. for an extra trip on workmen's
cars in the early morning.

The table shows by comparison the maximum earnings of
motormen and conductors for the regular schedule (cols. 3 and 6).
This is the amount earned by the majority of the men. They begin
at lower rates of pay and are advanced to this maximum in dif-
ferent periods of time varying from six months on the London
United to three years on the Glasgow and Manchester municipal
and the Dublin private undertakings. From this it will be seen
that, taking into account the general level of wages in each locality,
and omitting the two London undertakings, the weekly wages of
motormen are about on the same level in the two municipal enter-
prises of Glasgow and Liverpool and the two private enterprises of
Dublin and Norwich. But these earnings are secured on the
municipal systems for fifty-four hours' work, while they require
seventy hours on the private systems. The weekly earnings of
conductors are considerably lower in Dublin and Norwich than
they are in Glasgow and Liverpool. The earnings of motormen in
Manchester, considering the general level of wages, are lower than
those of the other four places, but the earnings of conductors are
higher than they are on the private systems.

In London the motormen of the private company earn 4s. 6d.
more for seventy hours than the motormen of the County Council
for sixty hours, but the conductors earn 2s. 6d. less for correspond-
ing hours.

108 NATIONAL CIVIC FEDERATION.

The foregoing applies to the weekly earnings. When we take
into account the differences in the number of hours required to get
the weekly earnings, we find greater differences in the resulting
rates of pay per hour. Taking the men who begin as conductors
at the minimum rate of pay (col. 7), the four municipal under-
takings pay 5d. to 5.7d. per hour and the three private companies
pay 3.6d. to 4.8d. When the conductor has advanced to his max-
imum rate (col. 8) he gets 6d. to 6.95d. in Liverpool, Manchester
and Glasgow, against 4.5d. and 4.92d. in Dublin. In London the
County Council pays 7.5d. and the private company 6d. an hour.

The motormen begin in Manchester, Glasgow and Liverpool
at 5.6d. to 6d. an hour (col. 4), against 4.2d. and 4.5d. in Dublin
and Norwich, but in London they begin at a higher rate with the
private company (6d.) than they do with the County Council
(5.7d.). When they reach their maximum (col. 5) the County
Council pays them 7.5d. and the private company 7.2d. Outside
London the municipalities pay 6.5d. to 7d., while the companies
pay 5d. to 5.57d. In general, outside London, considering the
local level of wages, the highest rates per hour are paid in
Glasgow, followed by Manchester and Liverpool, while the lowest
are paid in Dublin. Within London the County Council pays
motormen 4.2 per cent, and conductors 30 per cent, more than the
private company.

LABOR AND POLITICS.

109

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NATIONAL CIVIC FEDERATION.

Electricity.

It has been found impossible to make a satisfactory compari-
son of the wages paid in electrical undertakings, on account of the
wide differences in machinery, equipment, character of work, size
of the stations, range of wages and names of occupations. The
subdivision of labor varies greatly from place to place, and a large
establishment with a minute subdivision of specialized workers
may have extremely high wages for a few and extremely low for
others, although the names of the occupations may be the same
as those where the work is less subdivided. A careful examination
of different payrolls and different stations, however, leads to the
conclusion that, as in the gas undertakings, there is no predom-
inating tendency one way or the other, and the differences depend
mainly upon the differences in the general level of wages of the
locality. This conclusion is supported by the statistics collected
respecting firemen, whose occupation is the only one in the gen-
erating stations that is sufficiently uniform to warrant an attempt
at exact comparison. This is done in the following table, showing
the highest and lowest weekly wages paid to firemen:

Wages of Firemen in Electricity Generating Stations.

Ownership.

Manchester — Electricity Municipal .

Liverpool — Electricity . . Municipal .

Dublin — Tramways Private . . .

Glasgow — Electricity . .. Municipal.

Glasgow — Tramways . . Municipal .

Newcastle — " District " . Private . . .

Newcastle — " Supply " . Private . . .

London — StPancras — Elec-
tricity Municipal . .

London County Council —

Trams Municipal . .

London — " Central " — Elec-
tricity Private

London — St. James — Elec-
tricity Private

London —"City "— Elec-
tricity Private

Corrected by adding allowances

Minimum Maximum
Number. Per Week. Per Week.

18
67

6
12

7
17
24

11
14
14
14

34.96
32.12
25.48
27.04
28.39
36.40
31.15

36.40
33.80
32.63
32.12

38 30.41

for holidays with pay.

43.18
35.69
31.51
30.16
28.39
36.40
37.01

36.40
33.80
40.78
40.70
48.11

The hours are uniformly eight per day, or fifty-six per week,
and the work is uniformly connected with automatic stoking
machinery. If we arrange the establishments in the order of the
highest minimum wages paid to stokers we shall have an alternation
of private and municipal establishments as follows::

Minimum Wages of Firemen — Arranged from Highest to Lowest.
Order. Undertaking. Ownership.

1 Newcastle — District — Electricity Private.

2 St. Pancras (London) — Electricity Municipal.

3 Manchester — Electricity Municipal.

4 London County Council — Tramways Municipal.

5 London — " Central " — Electricity Private.

LABOR AND POLITICS. Ill

Order. Undertaking. Ownership.

6 Liverpool — Electricity Municipal.

7 London — " St. James " — Electricity Private.

8 Newcastle — " Supply " — Electricity Private.

9 London — " City " — Electricity Private.

10 Glasgow — Tramways Municipal.

11 Glasgow — Electricity Municipal.

12 Dublin — Tramways Private.

This arrangement does not take into account the local levels
of wages, which would relatively raise Glasgow, Dublin and Liver-
pool and lower London and Newcastle, but would not change the
fact of alternating private and municipal undertakings without
any predominating tendency on the basis of ownership. The
arrangement of maximum wages also shows a similar alternation
of private and municipal undertakings:

Maximum Wages of Firemen — Arranged from Highest to Lowest.
Order. Undertaking. Oivnership.

1 London — City — Electricity Private.

2 Manchester — Electricity Municipal.

3 London — Central — Electricity Private.

4 London — St. James — Electricity Private.

5 Newcastle — Supply — Electricity Private.

6 Newcastle — District — Electricity Private.

7 London — St. Pancras — Electricity Municipal.

8 Liverpool — Electricity Municipal.

9 London County Council — Tramways Municipal.

10 Dublin — Tramways Private.

11 Glasgow — Electricity M'unicipal.

12 Glasgow — Tramways Municipal.

Machinists.

The policy of all the municipal undertakings is to pay the
trade-union scale of wages as a minimum, whether the employees
are members of the union or not. In many trades, especially the
building trades, where work is usually unsteady, this policy results
in higher earnings for the year than the same class of labor would
earn on the outside. This fact is taken into account sometimes by
private companies as a reason for paying lower than the minimum
trade-union rate by the day which has been fixed with regard to
the chances of employment. There is another reason advanced
both by the companies and some of the municipalities for paying
lower than the scale; namely, the fact that the man in question is
not an all-round skilled mechanic, although designated by the same
term as the mechanic^ This will be seen in the following table,
which gives the wages of "fitters" (machinists) compared with
the scale of the Amalgamated Society of Engineers for the local-
ities. It will be seen that in all but four cases the minimum wages
of occupations designated as fitters is lower than the union scale.
The exceptions are Manchester gas and electricity (municipal),
where the minimum is 2s. higher than the trade-union minimum;
Newcastle gas (private), where the minimum is Is. higher than the
trade-union scale; and London County Council, where the mini-
mum is the same. In all cases but four the maximum is higher

112

NATIONAL CIVIC FEDERATION.

than the trade-union minimum. These exceptions are Leicester
gas (municipal), Glasgow tramways (municipal), Sheffield gas
(private), where the maximum is lower than the trade-union
scale, and Birmingham gas (municipal), where the maximum is the
same as the scale. Other skilled trades are employed in much
smaller numbers than fitters, but the example of this, one of the
strongest of British trade-unions, seems to be the situation of
others.

Wages of Fitters (Machinists).

Undertaking.

Ownership.

Wages
Per Week.

Trade Union Scale.
Hrs.

Wages
Per Week.

Manchester— Gas Municipal. 38/. . 53 36/. .

Manchester— Elec Municipal. 38/..to40/. 53 36/..

Birmingham— Gas Municipal. 27/..to36/.. 53 36/..

Leicester— Gas Municipal. 29/3 to 33/9 54 34/. .

Sheffield— Gas Private. . . 32/ . . to 36/ . . 54 38/ . .

Liverpool— Elec Municipal. 35/4 to 44/2 53 36/. .

Liverpool — Tramways... Municipal. 36/. . 53 36/. .

Dublin— Tramways Private... 18/..to38/.. 54 33/..to36/..

Glasgow— Gas Municipal. 31/6 to 38/3 54 35/. .

Glasgow — Elec Municipal. 27/..to45/.. 54 35/..

Glasgow— Tramways ... Municipal. 32/11 to 34/.. 54 35/. .

Norwich— Tramways ... Private... 31/6 to 33/9 54 32/..

Newcastle— Gas Private. . . 36/. . to 37/6 53 35/. .

London County Council —

Tramways Municipal. 39/ . . to 41/7 48 to 54 39/. .

London Central— Elec... Private... 38/3 to 42/9 48 to 54 39/. .

London St. James— Elec. Private... 27/..to45/.. 48 to 54 39/. .

London City— Elec Private. . . 31/6 to 50/. . 48 to 54 39/. .

London South Metropol-
itan—Gas Private... 33/9 to 48/8 48 to 54 39/. .

This table is not in the order of wage levels.

GENERAL HISTORY AND LEGISLATION

British Gas Works

(Schedule I)

By MILO R. MALTBIE

Sources. As Schedule I relates principally to the statutory
and legal provisions affecting the undertakings examined, the most
important sources are the acts of Parliament and judicial de-
cisions. Of almost equal value are the Sessional Papers, espe-
cially in those instances where special reports have been made by
select committees of Parliament, and where the evidence has been
printed in full (London principally). Occasionally, a verbatim
report of the proceedings before a Parliamentary committee when
a private bill affecting the undertaking, usually for the grant of
powers or the extension of capital, may be found, but ordinarily
no record is kept, and when printed it is issued by the city or the
company itself.

The records, reports and documents of the city department
or of the company, as the case may be, often contain much of
value, especially those issued when the undertaking was started
or when changes in management were actually made or mooted.
In the case of municipal plants or when a transfer of the under-
taking from the company to the city is being considered, the
council minutes are useful.

The principal secondary sources which are of such high stand-
ing as to be recognized as authentic in every respect, are:
Bunce: "History of the Corporation of Birmingham." 3 vols.
Bell and Paton: "Glasgow: Its Municipal Organization and Ad-
ministration."

Corporation of Glasgow: "Handbook on the Municipal Enter-
prises."

Hudson, editor : "The Manchester Municipal Code." 6 vols.
Storey: "Historical Sketch of some of the Principal Works and
Undertakings of the Council of the Borough of Leicester."
Michael and Will : "The Law relating to Gas and Water." Fifth

Edition.
Eeeson: "The Acts relating to the Supply of Gas and Water."

1902 Edition.
Vol. III.— 9.

114 NATIONAL CIVIC FEDERATION.

Rawlinson and Johnston: "The Municipal Corporations Acts and
other Enactments. . . " Ninth Edition.

In each town there was usually a considerable amount of
pamphlet and periodical literature which threw some light upon
the situation.

To supplement the data obtained from the above sources,
interviews were had with the principal city officials, officers of the
companies, American consuls, and citizens connected in no way
with the company or the municipality.

Principal Acts of General Application.
Companies Clauses Consolidation Acts, 1845-1889.
Companies Acts, 1862-1900.
Lands Clauses Consolidation Acts, 1845-1895.
Gas Works Clauses Acts, 1847, c. 15 ; 1871, c. 41.
Gas and Water Facilities Acts, 1870, c. 70 ; 1873, c. 89.
Sale of Gas Acts, 1859, c. 66; 1860, c. 146.
Borough Funds Act, 1872, c. 91.
Public Health Act, 1875, c. 55.

Conspiracy and Protection of Property Act, 1875, c. 86.
Employers Liability Act, 1880, c. 42.
Workmen's Compensation Acts, 1897-1900.
Municipal Corporations Act, 1882, c. 50.
Burghs Gas Supply (Scotland) Acts, 1876, c. 49; 1893, c. 52.

Acts Applicable to London only.

Metropolis Gas Acts, 1860, c. CXXV; 1861, c. LXXIX.

City of London Gas Act, 1868, c. CXXV.

London Gas Act, 1905, c. CLV.

Individual Undertakings.

Birmingham (Corporation) Gas Act, 1875, c. CLXXVIII.

Birmingham Corporation (Consolidation) Act, 1883.

Glasgow Corporation Gas Acts, 1869, c. LVIII; 1871, c. XXXV;
1873, c. CXLVIII; 1882, c. CXC; 1888, c. XXIII; 1891,
c. XC.

Glasgow Gas Company's Acts, 1817, c. XLI; 1822, c. LXXX;
1825, c. LXXX; 1857, c. XXXV; 1863, c. VII.

Glasgow City and Suburban Gas Company's Acts, 1857, c. LXXX;
1865, c. II.

Glasgow Corporation Gas Order, 1873.

Glasgow Corporation (Tramways and General) Order Confirma-
tion Act, 1901, c. CLXXIX.

Glasgow Corporation (Gas, etc.) Order Confirmation Act, 1902,
' c. CLXXXV.

Glasgow Corporation (Sewage, etc.) Act, 1898, c. CCXLIII.

Glasgow Corporation (Gas and Water) Act, 1899, c. CLXII.

Glasgow Corporation (Gas, etc.) Confirmation Act, 1902, c.
' CLXXXV.

Glasgow Corporation Order Confirmation Act, 1905, c. CXXVII.

Glasgow Corporation Loans Act, 1883, c. CVI.

HISTORICAL AND GENERAL. 115

Glasgow Corporation Acts, 1898, c. CCXLII; 1899, c. CLXII

and CLXVI.
Manchester Gas Acts, 1824, c. CXXXIII; 1830, c. XLVII; 1831,

c. XVI; 1837, c. CXII.
Manchester Improvement Acts, 1828, c. CXVII; 1854, c. XXVIII;

1858, c. XXV.
Manchester Corporation Acts, 1843, c. XVII; 1882, c. CCIII;

1894, c. CCIX.

Manchester General Improvement Act, 1851, c. CXIX.
Manchester Overseers Act, 1858, c. LXII.
Manchester Corporation Waterworks and Improvement Act, 1875,

c. CLXI.

Manchester Corporation Acts, 1891, c. CVII; 1901, c. CXCIII.
Manchester Gas Orders, 1896, c. CX; 1899, c. XXVIII.
Leicester Gas Acts, 1860, c. V; 1873, c. XI; 1877, c. L.
Leicester Corporation Gas and Water Transfer Act, 1878, c.

CXXXII.
Leicester Corporation Acts, 1879, c. CC; 1884, c. XXXII; 1897,

c. CCXVIII; 1902, c. CXCVII.
Borough of Leicester Order, 1891, c. CCXI.
London — South Metropolitan Gaslight and Coke Company's Acts,

1842, c. LXXIX; 1865, c. XIV; 1869, c. CXXX; 1876, c.

CCCXXIX.
South Metropolitan Gas Acts, 1881, c. CLXXII; 1882, c.

XXXVIII; 1896, c. CCXXVI; 1897, c. V; 1900, c.

CLXII; 1901, c. CLXXXIX; 1902, c. CVIII; 1905, c.

XXXVIII.
Newcastle-upon-Tyne and Gateshead Gas Acts, 1864, c. CXLVIII;

1867, c. XXX; 1873, c. CXVII; 1879, c. CLII; 1896, c.

CXXXII; 1901, c. LVIII.

Sheffield Gas Acts, 1855, c. XIV; 1866, c. CXCIII.
Gas Orders Confirmation Acts, 1882, c. XCIX; 1890, c. CCVI;

1893, c. CXLV.

A— HISTORICAL AND GENERAL.

A 1. Date when this establishment began to sell gas.
A 2. If it is a municipal plant, was gas being supplied by pri-
vate company when city began operation?
A 3. Character of original organization, whether individual, firm,

corporation, municipal or other form.

A 4. Character of present organization, whether individual, firm,
corporation, municipal or other form.

Date of

Municipalities. Origin of Company. Municipalization.

Birmingham 1st Co., 1817 Sept. 1, 1875 and

2d Co., 1825 Jan. 1, 1876.

Glasgow 1st Co., 1817]. T 1 1QAQ

3d Co., 18431 June *' 1869

Manchester (See note.) 1817

Leicester 1821 July 1, 1878

116 NATIONAL CIVIC FEDERATION.

Companies.

South Metropolitan 1833

Newcastle and Gateshead 1817

Sheffield 1818

With the exception of Manchester all the undertakings were
originally in the hands of private companies. A few small plants
were also built outside of Manchester, when the city did not cover
t such a large area as at present, but when the city had extended
its mains so that it could reach the areas supplied by these com-
panies, they were taken over by Manchester, to the satisfaction
both of the consumers and of the companies, who were not able
to compete successfully with Manchester. The two most impor-
tant cases were the purchase of the Provincial Portable Gas Com-
pany in Hulme in 1857 and of the Droylsden Gas Company in
1869.

A 5. Date and character of all changes in ownership since

origin.

A 6. State method of making each change.
A 7. State terms of each arrangement.
A 8. State fully reasons for each change.

Birmingham. Gas mains were first laid in the streets of Bir-
mingham in 1817, and two years later a company was incorpor-
ated by act of Parliament, under the name of the Birmingham
Gas Light & Coke Company. At this early stage of the gas in-
dustry no one thought of treating it as a monopoly. Conse-
quently when a second company applied to Parliament in 1825
for an act of incorporation, and stated as a reason why a fran-
chise should be granted to it also, that Birmingham was then but
partially lighted with gas and that great public advantage would
accrue from the construction of another plant, the local authorities
and Parliament were easily persuaded. Within the next fifty
years each company secured other acts of Parliament authorizing
the issue of additional capital, the expansion of their plants and
the extension of the areas of supply to include not only Birming-
ham but some fifteen other local areas nearby.

Municipal ownership was first proposed in the town council
by Mr. Joseph Chamberlain, then mayor, in January, 1874. In
his speech supporting his motion that negotiations with the com-
panies be opened, Mr. Chamberlain gave the following reasons:
All monopolies which are sustained in any way by the state ought
to be in the hands of the representatives of the people, by whom
they should be administered and to whom their profits should go.
The duties and responsibilities of the local authority should be
increased so as to make it a real local Parliament, supreme in its
jurisdiction. The cost of the public improvements which had
been or ought to be undertaken, such as street paving, sewage
disposal and improvement of sanitary conditions, was very large
and the council had been obliged to drop several schemes which
were necessary to protect the health of the town, because the

HISTORICAL AND GENERAL. 117

money could not be found for their execution. If all the expense*
for the greatly-needed improvements were to be raised by taxation,
the burden would become intolerable. The purchase of the gas
works and the transfer of the profits from the shareholders to the
city treasury would relieve this burden and allow the city to
proceed with the needed public improvements. The union of the
two undertakings would permit of many economies, such as the
substitution of a single for the double set of ' mains, the re-
duction of management expenses, and of fixed charges. Complete
jurisdiction over the streets would also be secured to the city. Mr.
Chamberlain further assured the council that preliminary con-
ferences with the two companies had already been held, and that
they were willing to sell their undertakings if satisfactory terms
could be arranged. The resolution that negotiations be opened
was adopted by a vote of 54 to 2.

The agreement finally reached with the Birmingham Gas
Ldght & Coke Company provided for the transfer of the under-
taking to the city, including all assets, rights, funds and undivided
profits, and also the assumption of all contracts, agreements and
accounts. In return the company was to receive £450,000, or
annuities payable half-yearly of £22,500 per annum. The agree-
ment with the Birmingham & Staffordshire Gas Light Company
provided for a similar transfer of all assets and liabilities, except
their reserve fund and undivided profits. In payment the com-
pany was to receive £10,906 (premium upon sale of shares) and
perpetual annuities payable half-yearly, equal to the maximum
dividends payable by the company on their capital, amounting to
£58,290, equivalent to 10 per cent on £320,400 and V~y2 per cent
on £350,000.

While the negotiations were under way accountants were
appointed to examine the records of the companies, and reported
their status on December 31, 1873, to be as follows:

The Birmingham Gas Light & Coke Company.
Capital Eaised —

Bearing dividend of 9 per cent per annum £9,9,200

Bearing dividend of 7% per cent per annum 200,800

Premiums on Shares 3,176

Loans bearing interest at 5 per cent per annum 250

Loans bearing interest at 41/2 per cent per annum. . . . 78,350

Loans bearing interest at 41/*> per cent per annum .... 5,100

£386,876
Capital Outlay —

Works £180,076

Mains 107,129

Meters, Lamps, Services, etc 56,908

Stabling 2,502

£346,615

118 NATIONAL CIVIC FEDERATION.

The Birmingham & Staffordshire Gas Light Company.
Capital Eaised —

Bearing dividend at the rate of 10 per cent per annum. £320,400
Bearing interest at the rate of 7^ per cent per annum. 287,500

Premiums on Shares not bearing dividend 10,906

Loans bearing interest at 4 per cent per annum 61,975

£680,781
Capital Outlay —

Cost of Works * £618,746

From these reports it appears that the two companies had a
combined capital outlay of £965,361 for which the city finally
paid £509,701 in cash, and perpetual annuities payable semi-
annually amounting to £58,290 per annum. The capitalized value
of the annuities can only be estimated, but on a 4 per cent basis
it would be £1,457,250; if capitalized upon a 3 per cent basis —
approximately their present market value, — the amount would be
£1,943,000. In other words, for plant and equipment carried
upon the books of the companies at £965,361 the city paid in cash
or its equivalent, £1,966,951 upon a 4 per cent, basis for the
annuities, or £2,452,701 upon a 3 per cent basis.

The resolution approving the agreement was adopted by a
vote of 46 to 1 in the town council and at a meeting of the
ratepayers 2,567 to 1,264. A bill confirming the agreement was
introduced at the following session of Parliament in 1875, and
met with opposition from the local authorities of certain outside
areas supplied by the companies, and from a few large consumers
in Birmingham. The former asked that they be given power to
purchase the portions of the undertakings in their areas, or that
the profits should be given to the districts in which they were
earned, or applied to the reduction of the price of gas; that a
maximum price of 3s. 6d. should be fixed, and that certain other
provisions of less importance should be inserted in the bill. They
also objected to the clause for a reserve fund of £100,000 as being
excessive, and to the price paid the Staffordshire Company as
being too high.

The consumers who appeared asked for a maximum price, a
differential scale, so that the consumer would get a low rate and
a high candle power. The bill was finally amended, authorizing
purchase by local authorities (see inquiry D 8 below), fixing a
uniform price within and without the city of Birmingham (see
inquiry D 15 below), and making certain other changes as re-
quested. The bill so amended was passed by both houses of
Parliament and received Eoyal assent on August 2d, 1875. The
transfer of the undertakings of the two companies took place on
September 1st. Several of the outside local authorities subse-
quently exercised the power of purchase and took over the mains
and pipes in their areas.

HISTORICAL AND GENERAL. 119

Glasgow. The first gas company was the Glasgow Gas Light
Company, incorporated by act of Parliament in 1817. The Act
of 1825, which authorized the company to increase its capital,
limited its dividends to 10 per cent until another company should
be established. The company did not use its powers to suit the
public, and it was generally believed that it made more than 10
per cent. Five persons appointed by a public meeting in 1835
reported that a large sum — over £50,000= — belonged to the gas con-
sumers, and warned the company that if it persisted in its attitude
a new company would be formed. The company paid no attention
to this warning and in 1843 a new company was created by
Parliament. This remedy afforded only very temporary relief,
and soon the public was dissatisfied with both companies, main-
taining that the quality of the gas was bad and the price high.

An investigation was made after a public meeting at which
the lord provost presided in 1859, and it developed that the loss
of gas by leakage (unaccounted for) had been about 23 per cent
each year for the last three years in the system belonging to the
old gas company. The report prepared suggested a new company
— a third competing company — as the remedy. After much con-
tinued discussion, the town council took the matter up and at-
tempted to reach an agreement with the companies for the
purchase of their plants, but without success; and it was finally
settled by Parliament when the bills of the companies for
authority to issue more capital and of the town council for the
establishment of a new municipal plant were before it. Evidently
Parliament saw better than Glasgow did the futility of further
competition; it had been through the question of competition in
the case of the London companies and knew what bad results it
had produced there. Parliament refused, therefore, to approve
competition by a third company or by the city, but urged the
companies to accept the terms offered by the city and sell out. An
agreement was finally reached, a bill drawn and passed by Par-
liament validating the transfer as of date June 1, 1869.

The reasons for municipalization were that the people were
generally dissatisfied with the management of the two companies.
They thought the prices were too high and objected to the frequent
tearing up of streets and the duplication of pipes in the streets
supplied, for each company had laid its pipes practically to the
same buildings. It was foreseen that if one plant were substituted
for two, there would be great saving in many directions and less
inconvenience to the public. There was also a growing opinion
that monopolistic services and those using the streets should be
managed by the public. Financial reasons did not seem to be
prominent.

According to the terms of the Act of 1869, Glasgow gave to
the shareholders of the two companies perpetual annuities amount-
ing to £34,762 10s. being at the rate of 9 per cent upon £300,000
of stock, which might receive a maximum dividend of 10 per cent

120 NATIONAL CIVIC FEDERATION.

yearly, and of 6% per cent upon £115,000 of 7l/2 per cent maxi-
mum dividend stock. In addition the city assumed all the
liabilities, including mortgages amounting to nearly £120,000. It
received in return all the property, rights and other assets. In
view of the fact that the shareholders were virtually guaranteed
for all time a rate of profit within 1 per cent on the 10 per cent
stock and % of 1 per cent on the 7y2 per cent stock of the
maximum rate allowed by their acts, one must conclude that they
were very liberally treated and the city burdened with a heavy
capital charge at the very beginning. Compared with the struc-
tural value of the property as indicated by the cash balance sheets
of the companies, the amount paid is shown to be considerably in
excess.

Balance Sheet for the Glasgow Gas Light Company,
May 31, 1869.

DR.

To general expenditure upon works and mains £314,464

" general expenditure upon meters 53,378

" counting house furniture 606

" minimum invested in 3 per cent annuities required

by Act of Parliament 5,000

" reserve fund invested 29,105

" assets and debts due company 44,149

£446,702
CR.

By old stock £150,000

" new stock 65,000

" premiums on stock 78,829

" reserve fund invested 29,105

" mortgages 70,000

" bills payable 18,476

" unclaimed dividends 329

" suspense account 4,828

" revenue account of year 26,017

" revenue from accounts not rendered 4,118

£446,702

City and Suburban Gas Company.
June 30, 1869.

ASSETS.

Parliamentary expenses £10,410

Works 125,638

Meter account 42,394

Counting house furniture , 225

Accounts receivable 7,103

Unsurveyed gas 7,296

Clydesdale Banking Co. (reserve fund) 11,668

HISTORICAL AND GENERAL. 121

Cash 21

Property 4,000

Stocks and materials 6,965

Pipe account 116,460

£332,180

LIABILITIES.

Capital stock — old £150,000

Capital stock — new 50,000

Contingent account 5,500

Mortgages 49,541

Accounts payable ,. . 6,394

Premium account 15,005

Unclaimed dividends 79

Clydesdale Banking Co 11,513

Reserve fund account 15,831

Consumers' deposit account 1,048

Surplus reserve account 27,269

When the transfer was made, the original cost of the property
taken over as shown by the books and by the above balance sheets
was £532,317, for which the city gave £34,762 in annuities and
mortgages of £119,265. The cash value of these annuities can
only be estimated, but if they were capitalized upon a 4 per cent
basis, the entire payment would be equivalent to about £988,315;
and upon a 3 per cent basis — approximately the present market
rate of capitalization — £1,278,000.

Since 1869 two other companies have been purchased, both
in outlying districts. One grew out of the plan adopted by the
city of charging slightly more for gas outside of the city boun-
daries than within. When the city took over the companies in
1869 it obtained power, as a result of this transfer, to supply
areas beyond its boundaries and fixed the price within at 4s. 2d.
and without at 4s. 4%d., or 2~y2d. more. This aroused dissatis-
faction among the outsiders, and a company was formed to
supply gas in one area outside of Glasgow, but within the area
of compulsory supply. This resulted in duplication, waste and
bad blood, of course. The company could not get Parliamentary
authority, but the outside local authorities gave it permission to
tear up the streets and lay mains so that the city of Glasgow could
not prevent its operations. Glasgow justified its course upon the
grounds that the outside areas were not responsible for the success
or failure of the undertaking and therefore should pay more, and
that they would not get gas at such a low figure as supplied by
Glasgow if they had their own independent plant; and the ex-
perience of the competing company seemed to support this claim.
Glasgow sought to end matters by annexation, which would have
brought the rates down ipso facto, but the company fought it.

122 NATIONAL CIVIC FEDERATION.

The dispute went on until 1891, when an agreement was
reached between the city and the company, whereby the city paid
£202,500 for the works. Although the company made only very
modest profits — not what they could have made in other lines —
the city also lost because of the unnecessary duplication of plant
and mains.

Manchester. The first municipal gas works in England were
established at Salford in 1817 by the Commissioners of Police of
Manchester, Salford being at that time a part of Manchester.
Such a step, at present, would require full explanation, but a
century ago it did not call forth even a limited discussion of the
proper scope of municipal activity. It was considered an easy and
natural step from the powers and duties which had been conferred
upon these Commissioners by Parliament in 1792, "for cleansing,
lighting, watching and regulating the streets, lanes, passages, and
places . . . ." The Commissioners had experimented with
the new gas in the early years of the last century, having bought
a small outfit for lighting a public building, and the people were
so well pleased with this new illuminant that public meetings were
held to induce the authorities to extend the works to supply gas
for public lighting generally. A meeting of the ratepayers was
called to consider the matter, and they voted unanimously to adopt
the new mode of lighting the town, and to raise the taxes from
15d. to 18d. in the pound. To lessen the cost of lighting the
streets, it was later decided to supply private persons. A price of
14s. per thousand cubic feet was fixed.

It was not long before a question arose as to whether the
commissioners had exceeded their legal authority and were acting
ultra vires. The power to construct a gas plant and sell to private
persons was at best an implied power. The commissioners were
given power to light the streets, and possibly it could be implied
that this authorization carried with it the power to make light for
public uses. But by what right could the city sell to private
consumers when such sale was not necessary but only incidentally
connected with manufacture for public use? In 1823 the com-
missioners were threatened with litigation to test their authority,
and a private company was promoted to light Manchester with
oil or gas. The city decided to apply at once for a special act,
plainly giving the commissioners the necessary authority, and the
following year the act was passed — the first statute to provide for
a municipal supply of gas both for street and commercial lighting.

This Act was very broad in scope and general in its pro-
visions. It gave the local authorities power to manufacture and
distribute gas within and without the city, to sell bye-products,
to purchase land, to lay mains, to break up pavements, to borrow
£35,000, to use surplus profits to reduce taxes, etc. The re-
strictions upon the powers of the commissioners were few and
unimportant. Parliament did not foresee, at this early date, the
great future development of the gas industry; neither did it con-

HISTORICAL AND GENERAL. 123

sider that public safety and welfare demanded that restrictions
should be imposed upon the city in the management of this
business. The early acts are in large measure in force to-day,
which fact will explain why so few of the ordinary provisions
applicable to municipal plants are in force in Manchester, as the
following pages will show.

The question of the wisdom of municipal operation came up
a few years later in 1833. The "gas directors" — the body which
had supervision of the undertaking — voted that it would be wise
to sell the plant, not so much because of dissatisfaction with the
results, but because it was believed that a public body ought not
to go into such enterprises. The discussion went on for some
time, but finally ended without action, upon the appointment of
a new manager, the general opinion being that a transfer to
private persons could not be justified. The question has not since
been raised, and the extension of the city's plant has gone on
without interruption. As it has reached suburban areas supplied
by companies, these have been purchased. The only change in the
management was the transfer from the police commissioners to
the borough council created by charter in 1838.

The use to be made of the profits from the gas undertaking
has always been a prominent subject of discussion. It first ap-
peared when the Act of 1824 was under consideration. The town
sorely needed street improvements, but it was a difficult matter
to find the funds to pay for them. Many believed that the gas
undertaking would yield a profit, and that it should be used for
this purpose; but there was some opposition in Parliament, and
hence the Act merely provided that the profits should be paid
over to the police commissioners. In 1828 an act was secured
allowing the profits to be used for street improvements, and sub-
sequently for improvements of any kind. From 1817 to 1895, the
surplus profits — after deducting operating charges, interest, sink-
ing fund payments, depreciation, etc. — amounted to £2,192,351
(according to the Municipal Code), of which £166,264 were paid
to the water works department to reduce water rates, and
£2,026,087 for town improvements, such as public markets, sewers,
street paving, buildings, etc. From 1896 to 1905 inclusive,
£517,856 have been put "in aid of rates" — to reduce taxation.

Most of the legislation relative to' the Manchester gas supply
is devoted to the issuance of securities for capital purposes. As
common in England, Parliament has not given unlimited authority
in this direction, and when new works were to be constructed,
application was made for further capital powers.

Leicester. The Leicester Gas Light and Coke Company was
incorporated by c. III. of 1 & 2 Geo. IV. and authorized to supply
gas in Leicester and suburbs. An act passed in 1860 — 23 Viet.,
c. V. — reincorporated the company and imposed restrictions upon
it, such as limitations upon the amount of dividends that may
be paid, price of gas, candle power, etc. Its powers were extended

124 NATIONAL CIVIC FEDERATION.

again in 1873, but four years later when it went to Par-
liament with another bill, it aroused the opposition of the town
council by including some 18% acres belonging to the city in the
land it wished to acquire for gas works. This also brought up
the question of municipal operation, and after conferences between
the representatives of the town and the gas company, an agreement
was reached. The company was to be allowed to proceed with its
measure, but a bill was to be introduced in the Parliamentary
session of 1878 providing for the transfer of the undertaking to
the municipality. As required by statute, the matter was referred
to the owners and ratepayers of the borough in a special meeting
assembled, and approved. Parliament endorsed it by passing a
special act and the transfer was made on June 30, 1878.

Aside from the incidental reason arising from the dislike of
the corporation to part with its land, the principal consideration
which led to municipal purchase was a financial one. The com-
pany had been doing very well almost from the start. It had
paid the maximum dividends allowed for years and yet was charg-
ing a low rate, having gradually reduced it from 12s. in 1829 to
2s. lOd. in 1877. The quality of the gas was good, the supply con-
stant and there were few complaints against the management of
the company. The council believed, however, that it could make
as large profits as the company and that the municipal revenues
would thereby be increased if the town worked the system. The
aim was, therefore, to secure "funds in aid of rates" rather than
a reduction in price or a betterment in service.

The Act of 1878 provided for the transfer to the borough
council of the entire undertaking, including all the powers, prop-
erties and liabilities of the company. The mortgage of £12,700
was to be assumed by the town and to be a first charge on the
revenues and secondly upon the district fund and rates. All
officers and employees of the company were to hold the same posi-
tions under the city. The shareholders were to receive 4 per cent
debenture stock at the following rates :

Par Value, Rate. Stock Paid.

3,900 A. shares, 50.700 @ £32 17 2 £128,147 10 0

6,930 B. " 69,300 @ £21 87 148,504 2 6

10,000 C. " 100,000 @ £20 00 200,000 0 0

20,830 £220,000 £476,651 12 6

In addition £4,000 were paid to directors for loss of position,
making in all roughly £493,000.

The town started, therefore, with a plant standing on the
company's books at not more than £220,000, for which it paid
£493,000. Just what this plant was worth is unknown, but it
probably cost the city at least £270,000 more than its structural
value.

The stock issued in payment was 4 per cent, 2 per cent semi-
annually, a first charge upon the revenue of the undertaking after

HISTORICAL AND GENERAL. 125

the mortgages, and secondly upon the district fund and rates. The
corporation may redeem at par at any time.

London — South Metropolitan. The first gas company in Lon-
don was incorporated in 1810, and there were already a number
of companies in the field when the South Metropolitan was started,
in 1833, as a cannel gas company. It did not secure an act of
incorporation until 1842, but at that time local authorities were
supposed to have the power of issuing permits to lay mains in the
streets without special authorization by Parliament. Competition
was believed to be the life of trade, and for a time every new gas
company was welcomed as a means of securing gas at a lower
figure. There were already two competing companies south of the
Thames when the South Metropolitan entered the field and
started to play its part in the gas war that was then waging.
Each company attempted to lay its mains in every street and it
would have consumers at any cost. The streets were torn up in
every direction. Capital was wasted in useless duplication of
plants and mains. The loss by leakage was large and serious
accidents sometimes happened. Prices were cut when necessary,
but where there was no competition they were kept at a high figure.

The consumer, apart from the inconvenience due to the dis-
orderly condition of the streets, watched the inter-company fight
with a certain amount of glee and profit, for prices were un-
doubtedly lower than they were, or would have been were there
no competition. But this could not go on forever, and in the
early fifties the companies began to recognize their folly, and pro-
ceeded to apportion the district south of the Thames among the
four then competing for supremacy. This districting of the city
was not fixed by act of Parliament, and there was therefore no
legal method of enforcing the agreement. Fearing that a new
company might come in or that a rate war might again break out,
a bill was introduced into Parliament to legalize the arrangement,
but the opposition was too strong. The companies had advanced
prices from 25 to 50 per cent after the agreement had been made,
arid the consumers foresaw that if any such scheme were legalized
without some adequate system of public regulation or control, they
would be at the mercy of the gas companies.

The situation became so serious, having been extended to the
whole of London, that a Parliamentary Committee was appointed
to hear evidence and report what plan should be adopted. It
reported in 1859 that competition was inadvisable, that districts
should be assigned to the several companies, that a maximum
price should be fixed at 4s., that profits should be limited to 10
per cent unless the price be reduced, that a minimum candle
power should be prescribed, and that permanent inspectors should
be appointed to see that the Act was carried into effect. The
companies objected to the conditions imposed, but as Parliament
refused to grant monopoly rights without strict supervision, the
companies submitted rather than lose so valuable a privilege, and

126 NATIONAL CIVIC FEDERATION.

the bill of 1860 became a law. Other acts were passed in the
sixties and seventies to remedy defects which practice developed,
ending with the adoption of the sliding scale, auction clauses, etc.,
in 1876.

Although each company kept within its own district and there
was practically no competition, there were still certain advantages
to be obtained from a uniform control of all the gas works south
of the Thames. The South Metropolitan appeared to be the
stronger financially., and gradually absorbed in the years from
1879 to 1884 all of the companies south of the river, with the
exception of the Gas Light and Coke Company which supplied a
small area in the west. The consolidation of these three companies
with the South Metropolitan was legalized by Orders in Council
which made no important changes in the powers, organization or
finances of the various companies. The chief gains and the rea-
sons for amalgamation were the financial gains due to the reduc-
tion of management expenses, the better contracts for supplies and
materials, the elimination of complaints being certain areas were
supplied more cheaply than others, and the union of powers held
by the different companies so that each could take advantage of
those conferred upon the others.

Newcastle. Gas was first supplied in Newcastle January
10th, 1817, by "The Fire Office" — a fire insurance association.
This early beginning was, of course, extremely modest, and only
a few shops, theatres and halls were first illuminated.

The policy of the Fire Office was by no means progressive,
and little was done within the next ten years to extend the use
of gas; indeed, the supply was so bad that a public meeting was
called and a new company formed having a capital of £20,000.
This company, following the example of the Fire Office, possessed
no Parliamentary authority, but obtained from the town council
permission to open the streets. The Fire Office immediately gave
up the competition and sold its plant to the new company, which
at once began to extend its mains. It resolved voluntarily to limit
its dividends to 10 per cent and to expend any surplus beyond
this amount in lighting the streets and reducing the price to the
consumer.

In 1828 the Newcastle Subscription Gas Company was formed,
and in 1830 purchased the undertaking of the old company which
confined its operations to Newcastle. In 1838 the Gateshead Gas
Company was formed, which took over a small existing gas works
in Gateshead. The two companies amalgamated and became the
Newcastle-upon-Tyne and Gateshead Union Gas Light Company.

The satisfactory financial returns led to the formation of still
another company which immediately applied to the town council
of Newcastle for permission to lay mains in the streets. The
proposal led to considerable discussion both within and without
the council, and contained such favorable terms both for street
and commercial lighting that the old company was obliged to offer
a reduction of price to keep out the new company.

HISTORICAL AND GENERAL. 127

During the discussion it was proposed that the city should
follow the example of Manchester and take the supply of gas into
its own hands. Negotiations were opened with the company for
the purchase of the existing works, and an act secured from Par-
liament authorizing the council to borrow money not to exceed
£100,000 and to purchase any gas works already or thereafter to
be erected within the borough. It was impossible, however, to
reach an agreement with the company as to the price of the under-
taking, the town being unwilling to pay what the company de-
manded for its plant. It was even proposed that new works should
be built and that the town should compete with the company. How-
ever, neither purchase nor the construction of a new plant was
finally decided upon, and the private company was left in the field,
although somewhat chastened by its recent experience.

As the company was operating without any competitor and
was subject to practically no governmental supervision or regula-
tion, the tendency towards lethargy and disregard of the wishes of
the consumers was always very strong. The field was also so
financially attractive that in 1862 another company applied to
Parliament for powers to supply gas. At this time complaints
were numerous as to the quality of the gas and the service that
was being given. The Parliamentary Committee heard the evi-
dence and although it voted at first to give the new company
statutory authority, the scheme was finally dropped. It became
evident, however, that the old company must do something or a
competitor would be admitted. As a result prices were lowered
and a bill introduced in Parliament to incorporate the company
and give it statutory powers, which was done by an act passed
in 1864. ,

Since 1864 several acts have been passed, the principal pro-
visions of which are set forth in this Schedule. Prior to 1864
the company was operating practically independently of all legis-
lation ; it had no Parliamentary authority to open streets or supply
gas, but having been given permission by the borough it was
practically safe from disturbance as long as Parliament did not
authorize a competing company. Prior to 1864 there were no
statutory provisions regarding dividends, price, quality of service,
or method of supply. With the Act of 1864 the company ceased
to have a free hand and became subject to a certain amount of
supervision. This was the price which it paid for a virtual
guarantee of non-interference, for Parliament quite generally after
the middle of the last century refused to sanction the establish-
ment of a new company within an area already supplied by a gas
company acting under Parliamentary authority.

Sheffield. The first company in Sheffield was formed in 1818
with a capital of £40,000. The price of gas was kept at 12s. per
1,000 cubic feet until 1834, when the threatened formation of a
new company forced a reduction to 8s. and finally to 5s., when
the new company finally began to distribute in 1837 at this figure.

128 NATIONAL CIVIC FEDERATION.

Another reduction was made to 4s. 2d., after an advance to 8s. 4d.,
in 1843. An amalgamation was brought about in 1844 resulting
in the formation of the Sheffield United Gas Light Company, with
a capital of £135,000 and borrowing powers of £45,000 more.

But this company was not left long in possession of a mon-
opoly. Still another company was started in 1850, called the Gas
Consumers' Company, formed under the Joint Stock Companies
Act. Work was begun in 1852 and immediately another gas wai
broke out. Street fights between the employees of the two companies
over the right to lay mains in the streets were common. Suits
and counter suits were brought in the courts and the strife went
boisterously on until the new company decided to apply to Par-
liament for statutory rights to supply gas in the city. It was
contended by the old company that its competitor had no right to
put mains in the streets as it had not been authorized to supply gas
by Parliament. When the new company came before a committee
of the House of Commons, amalgamation was again urged, re-
sulting in the enactment of the 18th Viet. c. XIV. The cost of
the inter-company war had been great, £15,000 having been spent
on litigation alone. The committee said that there should be one
company in Sheffield, provided due security be given for the pro-
tection of the public. The system of public regulation and control
adopted is set forth in the subsequent pages.

A 9. Has there ever been municipal ownership and private opera-
tion of plant?

No, in none of the cases, except in Glasgow, where the
city owns chemical works in connection with each of its plants,
where tar and liquor are treated. It does not operate these plants,
but rents them for 5-year periods to private persons, who agree
to pay the city for the tar and liquor distilled, taking the entire
output. Originally at least one of the chemical works was in the
hands of a private firm, but it was found that other bidders were
very much handicapped. Having no works close by the gas plant,
they could not handle the residuals as economically. The city
took over the chemical works in order to put all bidders upon the
same basis, and now there is always genuine competition for the
leases, which do not fall in at the same date. The reasons urged
why the city does not treat its own tar and liquor are that the
business is more or less speculative and uncertain; that prices
vary greatly and make it hazardous ; that there is need for unusual
financial incentive; and that the best results are not likely to be
attained where the management is paid fixed salaries under such
conditions.

A 10. Is the general sentiment favorable or unfavorable to the
present system of ownership and operation ?

Generally favorable in all.
A 11. What is the attitude of the press?

In every case it is favorable. Little is said except to report
any important matter as it happens to come up.

HISTORICAL AND GENERAL. 129

A 12. State current objections to present system.

Birmingham. Certain persons, few in number, object to
municipal competition with outside gas fitters, retailers of fittings,
etc. Some object to payment of such, large sums "in aid of rates"
to relieve taxation.

Glasgow. None found.

Manchester. There is talk upon the part of some consumers
that they are charged too much, that if there were not such a
large sum put "in aid of rates " the price could be reduced.

Leicester. Outside areas sometimes say their price is too high
and want prices reduced.

London — South Metropolitan. The only ones, save those ordi-
narily found almost everywhere, are those relating to labor matters
which are dealt with in Schedule II.

Newcastle and Sheffield. None to speak of, except the ordi-
nary complaints which arise from occasional lapses and inaccurate
gas meters.

A 13. Do the citizens take an active interest in the management
of the plant?

Municipalities. Not generally, for there are few matters
now before the department of general interest. When anything
unusual comes up the public has been quick to notice and com-
ment. In Manchester there is considerable discussion from time
to time upon the question of profits vs. lower charges. In
Leicester groups of citizens and clubs frequently request to be
shown through the works and they are always accommodated.
General interest seems to be greatest there.

Companies. No, of course.
A 14. Have there ever been competing gas companies in the

city? See answers to inquiries A 5-8.

A 15. Are there competing companies now? None.

A 16. If private companies have consolidated, give dates and

methods briefly. See answers to inquiries A 5-8.
A 17. Population of city at last national census, 1901.
A 18. Estimated population January 1, 1906, of area of supply.

Towns. A 17. A 18.

Birmingham 522,204 800,000

Glasgow 760,423 1,000,000

Manchester 543,872 750,000

Leicester 211,579 250,000

London (See below) 1,500,000

Newcastle and Gateshead 325,216 520,000

Sheffield 380,793 470,000

In each instance, except London, the undertaking supplies

areas outside of the boundaries of the town in which it is situated.

The estimated populations of these areas are: Birmingham,

Vol. III.— 10.

130 NATIONAL CIVIC FEDERATION.

240,000; Glasgow, 210,000; Manchester, 120,000; Leicester,
13,000 ; Newcastle and Gateshead, 150,000 ; Sheffield, 25,000. The
South Metropolitan Company supplies only a part of London, but
nearly all south of the Thames.

The differences between A 17 and A 18 after deducting the
populations for outside areas may be accounted for in two ways:
by natural increase and by annexation of suburban districts.
A 19. Are there electrical works in the city which compete with

gas?

A 20. Were these public or private ?

A 21. If private, were they owned or controlled by the same per-
sons controlling gas works ?

Birmingham, Glasgow, Manchester. They are owned by the
municipality, and there is keen competition between the two com-
mittees which administer them.

Leicester. Yes. The two ./are under the management of one
committee, but they have separate engineers.

London — South Metropolitan. Yes. Some are public and some
private. The latter are not connected with the gas company.

Neivcastle. Yes. They are privately owned, but are not con-
nected with the gas company.

Sheffield. Yes. They are owned and operated by the borough.
B— GENERAL FINANCIAL POWERS OF MUNICIPALITIES.

B 1. Does the city have power, for the construction or acquisition
of gas works, to raise money by the issue of securities?

Birmingham., Manchester. Yes, but each new issue of securi-
ties must be approved by the Local Government Board, which fixes
the period within which the loan must be repaid, or by Parliament.

Glasgow, Leicester. Yes, but only when authority has been
granted by Parliament and then the specific amount has been
stated. If more is needed, another act or provisional order must
be secured.

B 2. Does the city have power, for the construction or acquisition
of gas works, to raise money by taxation?

No, in no instance.

B 3. Does the city have power to raise money by taxation to meet
a deficit? If so, what satutory limit is fixed?

Birmingham, Leicester. Yes. There is no limit.

Glasgow. No, except to provide for payment of annuities
issued when the plants were purchased in 1869; the limit is 6d.
in the pound. Contributions may also be made for any purpose
from the "Common Good," but this fund receives nothing from
taxes.

Manchester. No, except to pay loans which were issued upon
the tax rate as security. There is no limit to the amount which
might be raised for this purpose if the plant were insolvent.

HISTORICAL AND GENERAL. 131

B 4. What is the limitation upon the general taxing power of the

city?

Birmingham,, Manchester, Leicester. None, except that no
function may be exercised by the municipality, and no taxes levied
for its exercise, which has not been conferred by Parliament.

Glasgow. Limits have been fixed for every purpose and these
may not be exceeded.

B 5. State fully step by step the procedure which must be fol-
lowed and the requirements which must be met before the
city may construct or acquire a plant; also source of each
provision, whether state constitution, statute or ordi-
nance. Note particularly requirements as to initiation of
proposal, special action by city authorities before its adop-
tion, mayoralty veto, referendum, publicity, making of
appropriations, bond issues, and approval of scheme by
courts or state authorities.

Municipalities. (The following summary is applicable to all
towns except in some minor details which it is not necessary to
specify here:

Origin. There are no statutory provisions regarding the
initiation of any proposal relating to the undertaking. It may
come from any one, or from any member of the council, but if it
originates outside the committee in charge of the undertaking, it
is referred to the committee if considered of importance by the
council. A suggestion may also be made by any member of the
committee; but ordinarily any proposal regarding a plant already
in existence originates with the manager, or engineer, or one of
the staff. In the case of a new undertaking the suggestion may
come from a variety of sources, and is usually referred to a special
committee for investigation and report to the council.

Consideration in Committee. After the proposal has been
thoroughly considered by the manager and his staff (if an under-
taking already in operation), or by persons called into advise (if
a new undertaking entirely), and the report has been presented to
the committee in charge, it is fully considered and a decision
reached after full discussion. The conclusion is reported to the
council in all cases where the matter was referred to the committee
by the council for report, but if the suggestion has originated
within the committee or departmental staff, and if the committee
disapproves the recommendation, no report is made to the council
unless the matter is considered of such importance that the council
should be fully advised as to the action of the committee.

Consideration by the Council. Eeports of each committee are
placed before the council, and it is proper for any member at any
time to move that a committee be instructed to follow a specific
course or refer the matter back to the committee for further con-
sideration, which means that the action of the committee does not
meet with the approval of the council.

132 NATIONAL CIVIC FEDERATION.

In consideration of any report from a committee the rules
laid down in the standing orders of the council must be followed.
These usually provide in full for the procedure to be adopted, and
the right of members to vote thereon. There is no mayoralty veto,
although the Lord Mayor may cast a deciding vote in case of a
tie, thus having two votes.

Execution of Scheme. If the council approves the recommen-
dations of the committee, several courses are open, the one to be
followed being decided by the nature of the proposal.

If no appropriation or additional financial power is needed,
the committee is practically free to proceed directly with the execu-
tion of the plans.

If it is a matter which may not be executed without an appro-
priation, the council must of course vote money for this purpose,
and all appropriations must pass through the usual form, often
including reference to the Finance Committee, investigation and
report.

If the scheme involves the borrowing of money without Par-
liamentary authority, the matter then goes to the Finance Com-
mittee, which determines how and when the money shall be raised,
but does not consider the advisability or inadvisability of the pro-
posed expenditure.

If a special act has to be secured, a meeting of the ratepayers
must be called and their approval secured. If a majority disap-
proves, no further action may be taken, but if approval is given,
the committee is then free to proceed and to have the costs paid
out of the city funds. This gives an opportunity for the rate-
payers to consider the plan and to accept or reject it.

C— INCORPORATION OF COMPANIES.
C 1. Date of latest incorporation of company.

London — South Metropolitan, 1842; Newcastle and Gateshead,
1864; Sheffield, 1855.

C 2. Place of incorporation of Company. London, in all cases.
C 3. Was incorporation under general law, special act, adminis-
trative order, or other method?
By special act of Parliament, in all cases.
C 4. For what length of time was incorporation to be effective ?

As no limit was fixed in any act, it was in perpetuity, or until
the company is wound up voluntarily or by act of Parliament.
C 5. If this duration has since been extended or decreased, state
when, how, for what period of time, and reasons therefor ?
No change has been made in any case.

C 6. Was the power of amendment or alteration of this act re-
served to the state?

No power to amend or annul was expressly reserved, but Par-
liament has the power to do either at any time.

PUBLIC SUPERVISION. 133

B— PUBLIC SUPERVISION OF MUNICIPALITIES AND COMPANIES.

General Powers.

D 1. Does municipality or company have power to condemn pri-
vate plants under the right of eminent domain?

There is no general "right of eminent domain." Property
may not be acquired otherwise than by agreement, except under
authority of Parliament, given by private act or provisional order,
and when powers of "compulsory purchase" are so conferred,
Parliament amply protects vested rights. This applies to cities and
companies alike.

D 2. Does municipality or company have power to purchase pri-
vate plants?

There are no gas plants within the areas of supply of any
municipality or company which are not already a part of the un-
dertakings. Neither a municipality nor a company may legally go
outside of its authorized area of supply, although it has been done,
and it cannot, therefore, legally purchase plants in such unauthor-
ized area. Further, Parliament now refuses to authorize a munici-
pality or a company to supply an area which is already being
supplied by an undertaking operating under Parliamentary
authority, unless it is guilty of incompetence. If a municipality
or a company wishes to supply gas it must buy out or come to
some agreement with the undertakers already in the field. If it
has powers of supply there seems to be no reason why it could
not purchase works already in existence. But the transfer of
powers may not be made to any person or corporation without let
or hindrance as customarily done in the United States. A com-
pany or a municipality may not transfer its powers without express
authority and usually only after a special act is secured or approval
had from the Board of Trade.

D 3. Does the municipality or company have power to construct
works upon its own property?

Land may not be used for gas works either by a municipality
or a company unless specific authority has been given for such use,
even though the land may have been purchased by agreement. If
land were so used, operations could be stopped at once through the
ordinary procedure against nuisances; for the manufacture of gas
is considered more or less of a nuisance, and may be abated as
such unless Parliamentary powers to make gas upon the lands in
question have been secured. Before such powers are granted Par-
liament sees to it that any damage likely to be done is amply paid
for and that the site selected is proper for a gas plant. The law
is BO strict that even an extension to a plant upon additional land,
may not be made until an act has been obtained granting the
necessary authority. In every instance covered iri this report
authority to use the lands operated upon has been granted.
D 4. Does the municipality or company have power to lay mains
in the streets?

134 NATIONAL CIVIC FEDERATION.

At one time it was believed that the local authorities having
jurisdiction over the streets and highways could legally issue per-
mits to lay mains; but it is now generally recognized that there
are two necessary and distinct steps. In the first place, an under-
taker, whether a company or a municipality, must have authority
to supply gas within the area in question. That can be given only
by Parliament. In the second place, the local street authorities
have the right to say when and how their streets shall be opened
and replaced. In other words, the locality has the exclusive right
to issue permits.

It should not be inferred that undertakers are operating only
where authority from Parliament has been granted. There is a
considerable number of instances, the Newcastle Company for ex-
ample, where companies or individuals are supplying gas in certain
areas without Parliamentary powers for those areas, but they go
on because no one wishes to take the trouble to bring them to book,
because the local authorities are willing to have them there and
have issued permits to lay mains, and because no other company or
municipality has asked for powers to supply the same area. The
undertaking is only there by sufferance, and its position may be-
come, therefore, very precarious. There are also instances where
mains have been extended by municipalities into unauthorized
areas. Leicester, for example, has very frequently laid mains in
outside districts when petitioned to do so by the citizens or local
authorities and then gone to Parliament for an act conferring the
power to do so.

In this connection it should also be remembered that com-
petition is not tolerated and that as long as a company with
Parliamentary powers exercises due care and diligence, and is not
guilty of misconduct, Parliament will not authorize a competing
plant to be built.

D 5. Does the municipality or company have full powers of
operation ?

Yes. When the municipalities took over the plants from
private companies they took over all the powers previously held by
these companies. In the case of Manchester, which was a public
plant from the start, Parliament has conferred as full powers as
given to any company. Manchester has power to do almost any-
thing, to make stoves, for example. Practically the only power
directly and necessarily connected with the making and distribution
of gas and the utilization of by-products which has not been clearly
conferred is that of making water gas ; and many hold that it may
be implied from the powers expressly granted. A bill introduced
in Parliament a few years ago to authorize the use of water gas
was not passed because of the popular prejudice against it. How-
ever, water gas plants have actually been installed in four out of
the seven systems examined.
D 6. How were these powers conferred?

PUBLIC SUPERVISION. 135

By general laws, special acts and provisional orders. See lists
under Sources.

D 7. Explain system of taxation fully, including all payments to
central and local authorities, fees, licenses, special assess-
ments, etc.

See special report on this subject at the end of this volume.
D 8. Give statutory provisions regarding purchase of plants by
public authorities.

Birmingham. The Act of 1875 gave Walsall power to buy
the portion of the undertaking owned by Birmingham within its
area within one year. The same power was given to other local
authorities within whose areas part of the plant acquired was in
operation, but they could purchase at any time upon due notice,
price to be fixed by arbitration or agreement. Under these pro-
visions, Oldbury, Southwick, Tipton, Walsall and West Bromwich
have purchased the plant within their areas.

Glasgow, Manchester. No such powers have been conferred
upon the outside local authorities.

Leicester. Local authorities outside of Leicester may purchase
the portion of the undertaking within their areas upon obtaining
consent of the Local Government Board, the price to be fixed by
agreement, or failing agreement by arbitration. Six months' notice
must be given.

Companies. The acts do not confer upon any public authority
the right of purchase, but of course Parliament may confer this
power at any time, subject to such conditions as it may consider
wise to impose.

D 9. Give statutory provisions regarding condemnation of private
plants by the city under power of eminent domain.

No such general right in English law, as explained under D 1.

Character of Plant.

D 10. Give statutory provisions regarding size and location of
plant.

The acts always specified the lands which may be used for gas
purposes, and no others may be put to this purpose. (See D 3.)
D 11. Give statutory provisions regarding area to be served.

Birmingham. The areas which may be supplied were fixed in
the acts of the original companies, but certain areas have been
taken away by the purchase of plants by local authorities.

Glasgow. The area, as defined in the acts, extends outside of
the city limits.

Manchester. No specific limits are fixed by acts. The city
can supply gas anywhere almost, as the law says "Manchester and
neighborhood/' The present area includes twelve outside authori-
ties. Of course Manchester cannot lay gas mains within the ter-
ritory of another local authority without its permission. But this

136 NATIONAL CIVIC FEDERATION.

permission may be given without going for a Parliamentary act.
Hence, if a local authority had its own gas works, it would not
allow Manchester to come in. As a matter of fact Manchester goes
around Stockport, which has its own supply.

Leicester. The areas are named in the acts and cover over 66
square miles, but see note (2) below.

London — 80. M. London was "districted" by Act of Parlia-
ment in 1860, and a certain definite area was given to each com-
pany including" the South Metropolitan. Additions were made
later by amalgamation with other companies. It now includes
nearly all of the County of London south of the Thames.

Newcastle. The areas which the company is authorized to
supply include two cities and upward of twenty outside areas.

Sheffield. The company has powers in the borough and some
98 miles without.

AEEAS OF SUPPLY AND POPULATION.1

Total Area Popula- Popula-

Area of of Area Total tion of tion
Towns. Supply Borough Without Population Borough Without

Birmingham 120 19.75100.25 800,000560,000240,000

Glasgow 98 20 78 1,000,000 790,000 210,000

Manchester ....... 47.5 21.5 26 750,000 630,000 120,000

Leicester2 -i 66'05 13'41 52'64

1 ' * ' ( 85.73 13.41 72.32 250,000 237,000 13,000

London— So.M. . . 55 1,500,000

Newcastle and ) 122.2 16.33 105.9

Gateshead j 128.5 16.33 112.2 520,000 370,000 150,000

Sheffield4 135 37 98 470,000445,000 25,000

PERCENTAGE OF AREA AND POPULATION OUTSIDE OF BOROUGHS.

Area, Population,

Towns. Per Cent. Per Cent.

Birmingham 83.5 30

Glasgow 79.6 21

Manchester 54.7 16

Leicester 84.4 5.2

London — So. M

Newcastle and Gateshead. 87.3 28.8

Sheffield. 72.6 5.3

1 The population figures and certain of those for the areas supplied
are estimated, but are probably very nearly accurate. The areas are in
square miles.

2 The figures upon the upper line are for the areas of supply
authorized by Parliament; those on the lower line, those actually sup-
plied. In other words, Leicester is supplying areas of 19.68 square miles
beyond the limits authorized by Parliament.

•The Newcastle-upon-Tyne and Gateshead Gas Company supplies
the City of Newcastle — all but Walker, about 1.8 square mile sup-
plied by another company — and the Borough of Gateshead upon the
south bank of the Tyne. These two towns are practically one urban

PUBLIC SUPERVISION. 137

D 12. Give statutory provisions regarding nature of plant and

equipment.

These are so few and of such a general character that they
are not important.
D 13. Give statutory provisions regarding extension of mains.

Birmingham, Leicester. Department must supply gas to any
owner or occupier within 25 yards of main, owner or occupier to
pay for all piping and costs of laying on his own premises and
over 30 feet outside. Department may require contract to take
supply for two years at such an amount as will annually equal
20 per cent of the cost of laying pipes and providing supply.
Security for payment may also be required. As mains are often
laid under walks and the streets are narrow, the consumer prac-
tically never pays for piping beyond his premises. Contracts are
not required and security very seldom. A main is not laid in a
street unless there is some prospect of its paying shortly.

Glasgow. City must, when requested, furnish gas to anyone
within 50 feet of mains upon the condition that the person give
security, if required, and that he pay all costs of laying pipes be-
yond street line. Security is not usually required.

Manchester. Anyone who is a ratepayer and lives within 30
yards of a main may demand and obtain a supply of gas. The cost
of pipes on private property are borne by the owner. If the new
consumer is more than 30 yards from the main, he may be re-
quired to guarantee to take enough gas to pay a portion of the
expenses, but he cannot compel gas to be supplied unless he is
within 30 yards or willing to bear cost of pipes.

London — 80. M. The company must lay mains to the prem-
ises of any owner or occupier who requires it, who is not more
than 50 yards from an existing main and who will contract for a
two years' supply for an amount which will equal 20 per cent
yearly of the cost of the pipes, etc., up to the premises. Security
may also be required. The company must light all streets if re-
quired, but may not be compelled to place lamps more than 75
yards apart.

Newcastle. Same as Birmingham. Company must lay mains
wherever requested in Newcastle and Gateshead, but not outside
except as they wish.

Sheffield. Same as Birmingham. The company must lay
mains in any street within its area where local authorities require
for public lighting, providing the authorities place lamps not more

center although under separate governments. Like Leicester, this
company supplies gas outside of its Parliamentary area, approximately
6.3 square miles in extent, operating under licenses from the local
authorities in the various districts. The figures for the Parliamentary
area of supply are on the first line.

* These figures are for the areas actually supplied; there are some
others not supplied for which powers have been granted.

138 NATIONAL CIVIC FEDERATION.

than '60 yards apart on the average. Extensions must be approved
by the city, but the company may appeal to general quarter
sessions.

D 14. Gfive statutory provisions regarding improvements and
new processes. None, in any instance.

Price.

D 15. Give statutory provisions regarding price of service, ar-
rangement of charges, discounts, deposits, etc.

Birmingham. Price is limited to 4s. Charges outside the
borough shall be the same as those within.

Glasgow, Price is limited to 4s. 7d., and must be, as nearly as
possible, equal to the cost of production, including manufacture
and distribution, interest, sinking fund, depreciation and renewals.
Receipts shall be applied to such purposes only. All balances are
to be carried over to next year. The revenue shall be credited
with the gas consumed for public purposes at the rates charged
private persons. Unless otherwise agreed, this rate shall be the
game as the lowest price charged to any consumer. Charges in
outside areas may be higher than inside the burgh, but may not
exceed the limit fixed — 4s. 7d.

Manchester. None whatever.

Leicester. Price limited to 4s. 6d.

London — 80. M. There is no maximum limit upon price, ex-
cept as provided by the sliding scale (see D 26). Charges for
public lighting shall not be more than the lowest price charged any
private consumer. Meter rents are limited to 10 per cent of net
cost, and when fittings are supplied with prepayment meters, the
charge for both may not exceed lOd. per 1,000 cubic feet of gas
used.

Newcastle. Price is limited in Newcastle and Gateshead to
3s. 4d., in outside areas to 4s., subject to discounts ranging from
10 to 25 per cent, according to the amount used (see D 15). If
the company requires deposits, it must pay 5 per cent interest on
every 10s. deposited.

The company must provide and erect public lamps as the
cities shall direct; the burners are supplied by the cities. The
company must move lamps from one place to another for 15s., and
remove entirely for 7s. 6d. ; must supply gas for public lamps at
the lowest price charged to any consumer after deducting the
discount; and must light, extinguish, clean, repair, etc., and the
municipalities shall pay actual cost, but cities may do this work
themselves if they so desire.

Sheffield. Price is limited to 4s., meter rents to amounts rang-
ing from 2s. 8d. per year for a two-light meter to 10 per cent of
cost for a meter supplying over 100 lights. All consumers must
be charged alike except those in certain outlying districts and
those using 100,000 cubic feet per year or more, with whom special
contracts may be made. If the company requires deposits, 5 per

PUBLIC SUPERVISION. 139

cent interest, payable semi-annually, on every deposit of 10s. shall
be paid. Street lamps shall not cost more than 35s. 2d. per year
per lamp, burning more than 2,200 hours per year, consuming on
an average 4 feet of gas per hour, and the price shall not be more
per 1,000 feet of gas than the average price for all consumers using
over 100,000 feet per annum for the preceding year.

Note. — These are all of the provisions upon the subjects enum-
erated. Except as above provided, the municipalities and the com-
panies may act unhampered by any statutory requirements.

Service.

D 16. Give statutory provisions regarding character and quality
of service.

Pres- Candle Where
Towns. sure.1 Power.2 Tested. Burner. Purity.

Birmingham 6" & .8" 15 Gas Works (4) (8)

Glasgow ditto 16 (5) (8)

Manchester none none ... none

Leicester 7"&1." 14 Gas Works (6) (8)

London— So. M. .6"&1." 14 (3) (3) (8) (3)

Newcastle 7"&1." 15i/> Gas Works (6) (9)

Sheffield none 16 " (7) (8)

(1) Pressure to be such as to balance a column of water not

less than of an inch in height from midnight to sunset,

and of an inch from sunset to midnight, measured at the

junction of service pipe and street main.

(2) Figures are given in the number of sperm candles, six
in the pound, burning 120 grains per hour.

(3) The three gas referees appointed by the Board of Trade
shall prescribe the time, places and mode of testing gas for candle
power, purity and pressure. They shall decide what purity shall
be required. They may, upon appeal, decide how gas for public
lighting shall be measured. Their salaries are fixed by the Board
of Trade, but paid by the company. If gas is of less candle power
to an extent of not more than one candle on any one day at a
testing place, the average of that day, the day before and the day
after shall be taken as the illuminating power on such day. The
gas referees shall prescribe the burner and the chimney for testing,
but such as will be most suitable for getting the greatest amount of
illumination, except an incandescent or similar burner and ex-
cept that such burner be practicable for use by the consumer.

(4) Sugg's London Argand No. 1, consuming 5 cubic feet
per hour.

(5) Union jet burner, consuming 5 cubic feet per hour under
a pressure equivalent to .5" water.

(6) Same as (4), but Act also specifies that the glass chim-
ney shaU be 6" by 1%".

(7) Same as (4), but Act also specifies that it shall have
24 holes, each 0.045 of an inch in diameter with a glass chimney
6" by

146 NATIONAL CIVIC FEDERATION.

(8) Gas to contain no trace of sulphurated hydrogem.

(9) Twenty grains of sulphur allowed.

D 17. Is there any authority not connected with the municipality
or the company which tests the gas and the character of
the service ?

The Act of 1871, which applies to all plants, except Man-
chester and the South Metropolitan, provides that two justices may
appoint a gas examiner upon petition of not less than five con-
sumers to test illuminating power and purity of gas, and under-
takers must give examiners access to testing place. Apparatus to
be used is specified and rules are given as to mode of testing.

Birmingham. The General Purposes Committee of the Coun-
cil appoints an independent examiner. At present it is Dr.
Poynting, of Mason College — Birmingham University. There is
no examiner appointed by the magistrates.

Glasgow. Gas is periodically tested and reported upon by an
independent analyst appointed by the magistrates.

Manchester. No. At one time a professor from one of the
Manchester schools was engaged to test, but he was not continued
after one year.

Leicester. No. The medical officer of health tested for years,
but it was given up about ten or twelve years ago.

London — 80. M. (See note [3] to inquiry D 16 above). The
The gas examiners who make the tests are appointed by the Lon-
don County Council.

Newcastle. Local authorities may appoint a competent per-
son to test gas for candle power and purity in testing stations pro-
vided and maintained by company at their works. Advantage has
been taken of the provision and an examiner appointed.

Sheffield. The city may appoint an inspector of meters and a
chemist to test the quality of gas whose salary need not be more
than SO guineas, but paid by the company. Under this clause an in-
dependent examiner has been appointed.
D 18. Are the results of such examination published?

Birmingham. Only occasionally.

Glasgow. Yes, in minutes of the council.

Manchester, Leicester. None at present.

Companies. Yes.

D 19. Give statutory provisions regarding performance of public
work by contract or direct employment. None.

D 20. Give statutory provisions regarding letting of public con-
tracts.

Municipalities. The Public Health Act, 1875, applicable to
all boroughs in England outside of London, provides that every
contract made by a local authority shall be in writing and under
seal unless it be less than £50 in value, or of daily occurrence or

PUBLIC SUPERVISION. 141

urgent necessity or something which the town council is habitually
required to do by acts of Parliament.1

The Public Bodies Corrupt Practices Act, 1889, declares it
to be a misdemeanor to give or take bribes to influence contracts;
to solicit or receive, or agree to receive, a gift, loan or other con-
sideration as an inducement to use influence with members, officers
or servants of a public body; to give, promise or offer to give
guch a consideration; or to act as intermediary between giver and
receiver.

The guilty person is liable to two years imprisonment, with or
without hard labor, or to a fine of £500, or to both. He may be
made to pay to the public authority the amount or value of the
bribe and also declared incapable of election to a public office or
of holding any public office, or of voting, for seven years. For a
second offence, he may be declared forever incapable of being
elected or of holding public office, or of voting. Such cases are
comparatively rare, but when they do occur the judges are inclined
to deal with them severely.

Very many towns also insert clauses in contracts requiring that
the standard rate of wages shall be paid, that the contractor shall
not oppose the formation of trade unions, that "trade union" con-
ditions of work shall be adopted, etc. (See Schedule II.) There
are no special statutory provisions regarding these matters.

Under the Municipal Corporations Act of 1882, a person is
disqualified from being elected or being a borough councillor while
he has, directly or indirectly, by himself or his partner, any share
or interest in any contract with the council, except contracts for
the lease or purchase of land, for public loans, lighting, water sup-
ply or fire insurance, or with companies incorporated by Parlia-
ment or under the Companies Acts. A member may not vote upon
or debate any matter in which he or his partner, directly or indi-
rectly, has any pecuniary interest.

Companies. None.

Securities.
D 21. Give statutory provisions regarding issuance of stock.

Municipalities do not issue dividend-bearing stock — share capi-
tal, as it is called in England.

London — So. M. Prior to 1896 the amount of capital stock
(share capital) authorized was* £2,212,500, which had nearly all
been issued, plus "such a sum as will produce with premiums
£600,000." The standard rate of dividend on all was 10 per cent
and the standard price for the sliding scale 3s. 6d. The Act of
1896 authorized the reduction of the standard rate to 4 per cent
and the increase in the stock to 2%, times the former amount, but

1 Purposes which are not expressly or impliedly authorized are
taken to he prohibited. (See London County Council vs. Attorney Gen-
eral, A. O. p. 165, 1902). Therefore a contract ultra vires is null and
void.

142 NATIONAL CIVIC FEDERATION.

this did not apply to the £600,000 item. Capital stock was there-
fore limited to £6,131,250 including premiums upon the last issue
of £600,000. An issue of £750,000 more was authorized by the
1901 Act.

Ordinary stock must be offered at public auction or tender.
No lot shall include more than £100 nominal value. The reserve
price shall not be less than par value. Stock not sold thus may
be taken by stockholders, consumers or employes at the reserve
price. Premiums shall be applied to capital purposes. The com-
pany may, with the approval of the Board of Trade, offer stock
before public auction or tender to consumers and employes at the
average market price of the stock in the month immediately pre-
ceding.

Newcastle. Up to December 31, 1905, the company had been
authorized from time to time, by act of Parliament, to issue
£2,857,571 in share capital. In 1901 an increase of £777,571 was
authorized as a stock bonus, for which no cash was received. At
the same time the maximum rate of dividend which could be paid
was cut from 7 per cent to 3%, per cent.

All ordinary stock must now be sold at auction in lots of not
greater value than £100. All stock not sold in this manner may
be offered to the stockholders at a reserve price fixed in advance
of the sale, but this reserve bid must not be less than par. All
premiums received shall be spent upon works, but shall not bear
dividends. Up to January 1, 1905, £1,730,000 in stock had been
authorized subject to these "auction clauses," in which £648,488
had beeen issued. The company still had power, January 1, 1906,
to issue £627,755 in stock.

Sheffield. Under successive acts the company has been author-
ized to issue £868,482 of share capital, and all is now outstanding.
None of it was subject to the "auction clauses." A considerable
portion was first issued in the form of mortgages at the usual rate
of interest and later converted into share capital bearing a maxi-
mum dividend of 10 per cent.

D 22. Give statutory provisions regarding issuance of bonds (loan
capital). See also D 25.

Birmingham. The Act of 1875 limited borrowing to £2,000,-
000 and authorized the city to mortgage the undertaking, borough
fund or rate, or all as security. Any annuities issued were to be
deducted from this amount, capitalized on a basis of twenty years
purchase. But no limit to the amount was fixed if the Local Gov-
ernment Board gave its consent, and its approval was necessary for
all over £2,000,000. The Act also provided that the city might
issue "debenture stock" in lieu of mortgages and reborrow for the
unexpired period any sum paid off by sinking fund.

Glasgow. Parliament has authorized the issue of mortgages
upon the works and income thereof up to £3,200.000. If any are
paid off other than by a sinking fund, the amount may be re-
borrowed for the unexpired period.

PUBLIC SUPERVISION. 143

The issue of annuities amounting to £34,762 annually was
authorized in 1869, the security for which is the plant, its income
and a tax rate up to 6d. in the pound.

Manchester. Authority has been granted by statute or Local
Government Board order to issue about £2,400,000 of loan debt.
Part of this was to be secured by the gas works and the rents and
profits thereof, especially during the early history of the under-
taking. In recent years loans have been made on the security of
the borough rates — the taxing power of the city — as well.

Approval of the Local Government Board must be obtained
before loans are made. A local inquiry is held by an inspector
which any ratepayer may attend and at which he may raise objec-
tion. If the Local Government Board considers the proposition
wise and reasonable, it approves.

Leicester. All loans and interest are a charge upon the
revenues and property of the whole city. Consolidated stock is
now issued in the place of special gas stock as formerly. Authority
to borrow £1,576,651 has been given.

London — So. M. Debenture stock has been limited ordinarily
to one-third of the ordinary stock. "Auction clauses" apply. .The
Act of 1896 authorized the conversion of the debenture stock from
5 per cent to a lower rate — not specified, but to be less than 5 and
not less than 3. The conversion was to involve such an increase
in the amount as would make the interest upon the new amount
at the new rate equal to that formerly paid upon a smaller amount
but at the higher rate. The rate actually fixed was 3 per cent.

Newcastle. Authority to issue mortgages was given in various
acts up to 1896, amounting in all to £175,000. Since then these
have all been converted into debenture stock, and other issues
authorized, totaling £525,326 at present. It is customary to limit
the amount of debenture stock to one-third the ordinary or prefer-
ence capital raised. The rate of interest is limited to 4 per cent.

Sheffield. Mortgages were issued until within recent years,
but all authorized — £173,500 — have been converted into ordinary
stock. The company has power to issue £200,000 in debenture
stock to be sold under the "auction clauses." Interest is limited
to 4 per cent.

Note. — The method provided for the collection of interest and
principal of mortgages and debenture stock is through the appoint-
ment of a receiver or "judicial factor," subject to the ordinary
judicial procedure, which would doubtless apply as well to munici-
palities as to companies, although there has been no such case in
the towns visited.

Financial Matters.

D 23. Give statutory provisions regarding use of income or any
portion .thereof.

Birmingham. Separate accounts for undertaking shall be
kept, and receipts shall be used to pay charges in the following

144 NATIONAL CIVIC FEDERATION.

order: — (1) Costs, charges and expenses of obtaining this act and
expenses of transfer; (2) ditto of issuing annuities, mortgages and
debenture stock; (3) manufacturing and operating charges; (4)
Staffordshire gas annuities and interest on debenture stock; (5)
mortgages and interest on debenture stock of city issued under this
Act; (6) sinking fund charges; (7) all other expenses; (8) reserve
fund not to exceed £100,000, to be used to meet deficiencies and
extraordinary claims; (9) rest to go to borough fund or rate.

Glasgow. Income was to be used for (Act of 1869) : — (1)
expenses of securing rents, charges and borrowing of money; (2)
expenses of management and maintaining plant; (3) annuities and
interest on money borrowed; (4) execution of powers, including
extension and improvement of mains and works; (5) balance to
go to the city for general purposes. The last clause was repealed
in 1876 and now no profit may be used "in aid of rates." (See
inquiry D 15.)

Manchester. Eeceipts shall be used to pay: — (1) all costs,
charges and expenses of keeping up and carrying on the works and
of making good all damage and injury due to laying of mains and
pipes; (2) interest on money borrowed and mortgages; (3) sink-
ing fund payments as required by law; (4) such other charges as
the council may fix for the improvement of the city.

Leicester. Eevenue is to be used in the following order: —
(1) costs, charges and expenses of collecting revenue; (2) working
and maintenance charges; (3) interest on mortgage debt at time
of purchase; (4) interest on debenture stock issued for purchase;
(5) interest on subsequent loans; (6) sinking fund payments; (7)
reserve fund as seems fit, but fund shall not, with accumulations,
exceed £50,000 ; it shall be used to meet any deficiency in revenue
and extraordinary claims, damages and accidents; (8) balance to
credit of district rate. According to the Act of 1884, there is no
limit to the amount that may be set aside for sinking fund.

Companies. See data under inquiry D 26.
D 24. Give statutory provisions regarding depreciation.

None in any case, but see answer to inquiries D 23 and 25.
D 25. Give statutory provisions regarding sinking funds.

Municipalities. All loans made under the Local Loans Act,
1875, must be repaid, within the time specified (a) by annuity
certificates for the period, (b) by the payment of a certain number
of debentures every year — equal annual installments, (c) by the
annual appropriation of a fixed sum, or (d) by a sinking fund.
Where the last method is in operation, such yearly or half-yearly
sums shall be set aside and accumulated at compound interest as
will be sufficient to pay off within the prescribed period the whole
of the loan. The funds shall be invested under the direction of
the Local Government Board in such securities as trustees may
invest in or securities issued under this Act. If any part is in-
vested in the securities of the local authority or is applied to pay-

PUBLIC SUPERVISION. 146

ing off any part of the loan before it is due, the interest thereon
shall be paid into the fund. The local authority must make a
return to the Local Government Board within twenty-one days
from the end of the year showing the amount invested, the amount
applied, the character of the investments, etc. If it appears that
the local authority has not complied with the law, the Board may
direct that the amount in default be raised, invested or applied,
as the case may be.

The Secretary of Scotland has similar powers in Scotland.

The above provisions are not in force in all towns nor ap-
plicable to all loans. The following special provisions should be
substituted wherever the latter differ :

Birmingham. The Act of 1875 provided that after five years
the city shall provide a fund out of revenue of plant, or borough
fund or rate to pay off Staffordshire gas annuities by installments
or sinking fund within 85 years; to pay off all money borrowed
during 5 years from date, within 80 years after the 5 years from
date, and all money borrowed later, within 80 years from the date
of borrowing. The exact amounts to be set aside may be prescribed
by the Local Government Board — it may fix the period of repay-
ment on later loans.

The town treasurer is required, within 21 days after the date
when any sum must be set aside, to make a sworn return to the
Local Government Board stating what sums have actually been
set aside during the previous year, describing the securities in
which investments have been made, the amounts paid off, the total
amount invested, etc. If the city has not lived up to the statutory
requirements, the Local Government Board thus becomes aware
of the fact and may order double the sum set aside for which the
town is in default.

Glasgow. Prior to 1901 there was no statutory requirement
for a sinking fund to pay off the annuities, but an act of that year
directed that after 1905 a payment should be made annually of
iy2 per cent on £1,000,000 — the estimated capitalized value of the
annuities. As the annuities are redeemed, the amount set aside
may be reduced accordingly. The sinking fund payments required
on the loans are as follows: — For £1,000,000 authorized in 1869,
not less than 1 per cent; £1,000,000 in 1898, not less than 1 per
cent; £700,000 in 1901, not less than 2%, per cent; £500,000
in 1905, not less than 3 per cent.

Manchester. Until about 1875 the acts authorizing loans
generally provided that 5 per cent of all loans outstanding should
be set aside annually to pay off these loans. Then for many years
the customary clause required an annual sinking fund payment of
iy% per cent for the first twenty years and 2 per cent thereafter
upon the total amount borrowed. But at present, and this has
been the law for many years, the Local Government Board fixes
the period within which the loan must be repaid. The usual time
is 30 years, but 5-year and 50-year periods have been approved.

Vol. III.— 11.

146 NATIONAL CIVIC FEDERATION.

The same provision is in force here as in Birmingham regarding
complete returns to the Local Government Board of the status and
operations of the sinking fund.

Leicester. The periods within which the loans must be repaid
are as follows: — Loan of £476,651 authorized in 1878, 60 years;
£250,000 in 1878, 55 years; £100,000 in 1891, 30 years; £250,000
in 1897, 30 years ; £500,000 in 1902, 40 years. Any sums paid off
before the expiration of these periods may be reborrowed for the
unexpired portion.

Payments must be made to the sinking fund out of revenue in
such amounts that the total, including accumulations at compound
interest, will cancel the debt within the periods just named. Re-
payment may be made by equal annual payments to the holders of
principal or principal and interest. The town may equate periods
so as to substitute one period for the several, but the Local Gov-
ernment Board must approve before being put into force.

A similar provision is in force here to that in Birmingham
regarding returns to the Local Government Board, etc. Also,
if it appears to the Local Government Board that the sums an-
nually set aside are not sufficient to repay loans when due, the
amounts set aside shall be increased as the Local Government
Board may determine. Sinking funds must be invested in standard
securities or loaned to other departments which have authority to
borrow money, but a strict accounting must be kept, and all items
must be properly booked as prescribed by the acts.

Companies. No requirements in any instance.
D 26. Give statutory provisions regarding profits and dividends.

Municipalities. There is no limit to the profit that may be
made, except in Glasgow where profits may not be used for any
other purpose than the gas undertaking. (See inquiries D 15
and 23.)

London — So. M. The sliding scale has been in force since
1876. The standard price is fixed at 3s. Id. for 14 c. p. gas.
But if, during the whole of any half year, the price charged shall
have been Id. or a part of Id. above such price, the dividend pay-
able for that half year shall be reduced below the standard rate —
4 per cent — by one-fifteenth of 1 per cent for every Id. or part of
Id. above the standard price. If the price shall have been Id. or
more below, the dividend may be increased one-fifteenth of 1 per
cent above 4 per cent for every full Id. below.

If the profits exceed the amount which may be divided accord-
ing to the sliding scale, the excess, up to 1 per cent per annum on
the paid-up capital, may be carried to a fund to be invested in
securities until it accumulates with interest to 5 per cent of the
paid-up capital and to be used as an insurance fund to meet ex-
traordinary claims from accidents, strikes, etc., which in the
opinion of the auditor, due care and management might not have
prevented. All excess profits beyond this amount shall be carried
to the credit of the divisible profits for next year.

PUBLIC SUPERVISION. 147

The company may create a reserve fund out of the divisible
profits due to a reduction in the price of gas below the standard
rate by setting aside such sums as it deems fit to be invested in
securities and to be used to make up back dividends when below
the standard rate.

Newcastle. This company is also operating under the sliding
scale. The standard price is 2s. 9d. and the standard rate 3y2 per
cent. The equivalents are ^ of 1 per cent in dividends for every
Id. in price. Profits over prescribed rate of dividend may be used
to form a fund to make up future deficiencies in dividends or ex-
traordinary claims, but this fund with accumulations may not
exceed 8 per cent of the nominal capital before the conversion
authorized in 1901. Apparently, although not expressly stated,
any profits over and above what may be divided as dividends or
placed in reserve fund should be carried over as a balance to the
next year when a reduction in the price would allow a still larger
dividend to be declared and the balance then distributed to the
shareholders.

Sheffield. The maximum dividend is 7 per cent on the amount
paid in as long as the price of gas exceeds 3s. 3d. per M. ; 7% per
cent when it exceeds 3s., but not 3s. 3d. ; 9 per cent when it exceeds
2s. 9d., but not 3s. ; 10 per cent when it is at or under 2s. 9d. The
10 per cent limit may never be exceeded, no matter how low the
price goes, and income tax is to be paid out of it.

Excess profits — over the divisible rate — may be put into a
reserve fund, until it reaches with accumulations 10 per cent of
capital. The Act does not say what is to be done when the reserve
fund is full and there is still a surplus over the divisible 10 per
cent. Apparently, it is to be carried forward as a balance until
continued reductions in price leave no surplus to be so utilized.
D 27. Give statutory provisions regarding compensation for
franchises.

Municipalities. Inquiry is not applicable.

Companies. In a way all of the restrictions and limitations
under which the companies are operating are in compensation for
the franchises they hold, but the inquiry has reference rather to
the direct payments or equivalents in service rendered to the local
authorities.

London — So. M., Sheffield. None.

Newcastle. None, unless the clause requiring the company to
provide lampposts for public lighting might be so considered.
(See answer to inquiry D 15.)
D 28. Give statutory provisions regarding audit of accounts.

Birmingham, Manchester, Leicester. The accounts of English
boroughs must be submitted to three auditors. Two are elected
annually by the ratepayers, and the third is appointed by the mayor.
The elective auditors may charge two guineas per day for their
services under the Public Health Act. The mayor's auditor is un-

148 NATIONAL CIVIC FEDERATION.

paid. The elective auditors must be qualified to be members of
the town council, but must not be members or officials of the coun-
cil. The mayor's auditor must be a councillor. They have no
power to charge an officer with an item illegally expended and
order that he pay it. They can only report what they find and
appeal to the public or the city officials to take action. Most of the
large boroughs also appoint trained accountants as auditors, al-
though not required to' do so by law. The form of accounts is pre-
scribed by statute, which also fixes the time when accounts shall
be made up.

Glasgow. The English law does not apply to Glasgow, but
statutes require that the city shall appoint auditors annually who
shall not be officeholders, but skilled in accounts, and also fix their
compensation.

London — So. M, The auditor is appointed by the Board of
Trade. He prescribes the form of accounts, audits them, author-
izes the payment of dividends, and without his authorization none
may be paid. All facilities must be given him. The company or
the London County Council may appeal from his decision to an
arbitrator. The auditor may require the company to correct any-
thing he thinks wrong. His salary is paid by the company but
fixed by the Board of Trade. Auditors are also appointed by the
shareholders.

Newcastle. The auditor must be a chartered accountant and
is named by the company and approved by the mayor, aldermen
and burgesses of Newcastle and Gateshead. He does not have such
important powers as in London. The Act says nothing further
about him. He makes a short report to the directors.

The Act of 1847 provides that on petition of two ratepayers
who use gas, certain local officials are to appoint a competent per-
son to examine the actual state of the undertaking, and if it appear
that profits have exceeded the limits, price must be reduced. But
this has been of no practical use.

Sheffield. The city appoints auditor, not a shareholder, an-
nually, who has full powers of examination and report. His
salary is fixed by the city but may not exceed 20 guineas for each
half-yearly audit. Accounts must be made up annually and sent
to the local authorities. The Act of 1847 is also applicable here.
D 29. Give statutory provisions regarding publicity of reports
and records.

Reports must be made to the Board of Trade by all under-
takings, and the statutes fix the form of such reports and date of
making them. Companies are required in addition to send a copy
of their report to the local authorities and to give one to any ap-
plicant at a price not to exceed Is.

D 30. Give statutory provisions regarding claims for injuries or
death. None.

PUBLIC SUPERVISION. 149

Labor Conditions.
D 31. Give statutory provisions regarding salaries paid.

Municipalities. None.

London — 80. M. Salaries of directors shall not exceed £5,000
in all, until quantity of gas made exceeds 12,500,000,000 cubic feet,
nor £5.500 until it exceeds 15,000,000,000 cubic feet, when they
may be increased to £6,000, but not more.

Newcastle. None.

Sheffield. Nominee directors (see inquiry D 39) — those ap-
pointed by the city — may not receive a salary and none may be
managing director. The salaries of the other directors, except the
managing director, may be £2,000 in toto when price is less than
3s. 6d. per 1,000 cubic feet; the managing director may receive a
special compensation.

D 32. Give statutory provisions regarding wages to day labor-
ers. None.
D 33. Give statutory provisions regarding hours of labor of day

laborers. None.

D 34. Give statutory provision regarding employer's liability.

There are no special statutory provisions beyond those in the
general acts which apply to municipalities and companies alike.
A brief summary is as follows :

Compensation to a workman for injuries, or compensation to
his dependents or other legal personal representatives on account
of his death, is recoverable at present and until January, 1907: —
I. At common law ;

II. Under the Employer's Liability Act, 1880 ;
III. Under the Workmen's Compensation Acts of 1897 and
1900.

I. At common law the workman must prove that he was in
no way to blame for the accident, that the employer was aware of
the incompetence of any other servant upon whom the blame falls,
and that the employer was aware, and the workman himself not
aware, of the defect or danger of the machinery or plant causing
the accident. Compensation has consequently very seldom been
secured by workmen at common law.

II. The Employer's Liability Act, 1880, applies to manual
laborers only. Compensation may be claimed for accidents due
(a) to defects in the works, plant or ways; (b) to negligence of,
or orders given by, persons in authority; (c) to negligence of
persons entrusted with responsible work, such as engine-men,
points-men and signalmen. But the claim fails if the workman
was guilty of contributory negligence or if he knew that certain
defects existed and he did not report them, or if the orders made
and obeyed were in accordance with by-laws or rules sanctioned by
law or by a Secretary of State. The amount of compensation is
fixed by a judge or jury, but may not exceed three years' earnings
of that class of workmen.

150 NATIONAL CIVIC FEDERATION.

Notice of the accident must be given to the employer within
BIX weeks, and action must be entered in case of injury within six
months, or in case of death within twelve months. The case
comes before a county court (or the equivalent courts in Scotland
and Ireland).

A defect in this Act is that the action falls to the ground if the
employer dies or becomes bankrupt before the decision is given or
payment made.

If a workman should proceed at common law or under the
Act of 1880 and should lose his case, the court may, if it decides
that he has a good claim under the Acts of 1897 and 1900, proceed
to fix his compensation under those Acts; but it will deduct from
his compensation the extra costs of his employer in defending the
original claim.

III. The Workmen's Compensation Act, 1897, forbids con-
tracting out of its provisions, except by a scheme which the Regis-
trar of Friendly Societies shall have approved as being equitable,
after consulting employer and workmen. But no such scheme
may be made a condition of employment, and the workmen may
apply to have the scheme revoked if they have good cause for com-
plaint as to its results.

If an employer from whom compensation is due becomes bank-
rupt or makes an arrangement with his creditors, or if the em-
ployer is a company and begins proceedings to dissolve organization,
the workman has a claim on any funds due from insurance under
the Act. If the amount payable by the insurers is less than the
amount awarded, the difference may be claimed from the estate.
If an employer dies, the compensation may be recovered from his
executors.

The Act does not define the word "workman," and it has there-
fore been held to cover all persons, even clerks, employed at weekly
wages in certain places. The places specified are railways, fac-
tories, mines, quarries not less than 20 feet deep, engineering works,
and buildings exceeding 30 feet in height in process of erection, re-
pair or demolition. The scope of the Act in this respect can only
be settled by reference to the Eailway Acts, Mines' Acts, Factories'
Acts and so on. For instance, "factories" legally include docks,
wharves and quays, as well as laundries, and most other places
where power machinery is used.

Considerable litigation and many conflicting decisions have
arisen over the places to be included. The Bill before Parliament,
which will not become law until January 1, 1907, removes the
principal causes of litigation. No minimum height is specified for
buildings, the phrase "on or in or about" is not used, and no
trades or places are specified, the Bill covering any employments
and any places which are not specifically excluded.

Under the existing law a claim can only be made if the work-
man is killed or prevented from earning full wages for two weeks,
and if the accident, even though caused by himself, is not due to his
own "serious and wilful misconduct," and if he is doing his proper

PUBLIC SUPERVISION. 151

and usual work or anything he is called upon to do. A workman
having left his proper work in order to save his employer's prop-
erty failed to obtain compensation for injuries thereby received.

Notice must be given as soon as possible after the accident, by
hand or registered letter, and action entered within six months;
or in the case of death, within six months after death.

For an accident resulting in complete incapacity to work the
compensation is half the man's average earnings, but in no case
more than one pound per week. For partial incapacity any amount
that he is able to earn will be taken into account. The workman
must submit to examination, from time to time, by a duly-quali-
fied practitioner engaged by the employer, or to one of those ap-
pointed for this purpose by the Secretary of State.

Either employer or workman may apply to have the weekly
payment reviewed by the court. After six months of weekly pay-
ments the employer may compound for a lump sum. Any dis-
putes over these and similar points are to be settled by arbitration.

The compensation payable to relatives of a workman killed
varies with the extent of their dependence upon him. If wholly
dependent upon him, a wife, husband or other near relative within
the legal limit receives 156 times his average weekly earnings, but
in no case less than £150 or more than £300; where the support waa
only partial the amount may be as low as the judge or arbiters
think sufficient. If no legal dependants are left, the sum must be
for reasonable expenses of burial up to £10.

D 35. Give statutory provisions regarding pensions to em-
ployes.

Birmingham. The Birmingham Corporation (Consolidation)
Act, 1883, authorized the creation of a superannuation scheme and
the making of grants to friendly societies including the employes
of the city. Prior to 1897 the only scheme constituted was for the
gas employes, but a much more comprehensive plan has since been
adopted under Provisional Orders of 189(7 and 1902.

Part I is: — (a) Compulsory on all receiving forty shillings
weekly or upward, who entered the service after date of scheme
(December, 1897) ; (b) compulsory on all receiving forty shillings
or upward, already in the service, unless objection was filed within
three months; (c) open to all receiving less than forty shillings
weekly, provided those already in service gave notice of their desire
within three months, and those engaged since have given notice
within three months from entering service; otherwise past service
will not be counted should they enter the scheme subsequently.

Part II applies to all receiving less than forty shillings, who
have not desired to be included under Part I. Policemen, mem-
bers of the fire brigade, employes of the lunatic asylums committee
and all under 21 years of age are excluded.

In the case of undertakings acquired by or transferred to the
city, past service with such undertakings will count as past service
with the city.

152 NATIONAL CIVIC FEDERATION.

Under Part I claim to superannuation may be made: — (a) on
becoming incapacitated after 20 years of service; (b) on reaching
the age of 65 years, after 20 years of service; (c) on 40 years ag-
gregate service. With the exception of the town clerk and other
statutory officers, all servants after 20 years of service shall retire
on reaching 65 years of age, unless excepted by special resolution.

The premiums for allowances and contributions are as
follows : —

(1) For 20 years of service, 20/60ths of average wage, cal-
culated on 5 years preceding; for each succeeding year up to the
maximum, l/60th of average wage.

(2) The maximum shall be: — (a) Where average wage is
£500 or less, 40 years, entitling to 40/60ths; (b) where average
wage is more than £500, 30 years, entitling either to 30/60ths of
the average or to 40/60ths of £500, whichever is the greater sum;
but additional allowances may be made in special circumstances by
adding a number of years service, not exceeding ten, to the years
actually served.

(3) Three per cent of wages is deducted for contributions,
but all contributions to the fund cease after 30 annual payments
where salary exceeds £500, or 40 annual payments in all other
cases.

(4) Fraud, dishonesty or misconduct involving pecuniary
loss to the city debars any claim to benefits. Ketirement through
no misconduct, but before becoming entitled to benefits, entitles
a servant to receive back the sum of all contributions paid. But
if he be re-engaged, past service will only count on restoration of
such sum.

(5) Legal representatives of a servant who dies before be-
coming entitled will receive the sum of contribution paid.

Under Part II a servant receiving less than forty shillings
weekly and not having entered the scheme, becomes entitled to a
pension after 20 years of continuous service, provided he is not
less than 55 years of age and provided he is duly certified as per-
manently incapacitated. The scale is as follows: — After 20 years
of service, 7s. per week ; after 30 years of service, 8s. 6d. per week ;
after 40 years of service, 10s. per week.

Under Part III — an "Optional Allowance Scheme," 1902—
a committee may recommend the city to make an allowance in
cases not covered by Parts I and II.

Glasgow. The Act of 1869 provided that the city may pay
any employe who has been employed by it 15 years or more and has
retired such annual sum as they may think reasonable for any term
they wish.

A more recent Act, that of 1902, also provides that the city
may (a) contribute out of the city funds to any friendly society,
superannuation, sickness or burial fund established for their em-
ployes' benefit, and (b) exercise certain control in regard to the
payments to and from such funds. The city does make such pay-

PUBLIC SUPERVISION. 153

ments, but the question of a complete scheme is yet under discus-
sion; it has not been enacted into law.

Manchester. The Manchester Corporation Act, 1891 (sections
5 to 12) and the Manchester Corporation Act, 1901 (section 43),
gave the city power to establish a thrift fund for the benefit of
the employes of the Corporation, or, in the event of death, their
representatives. On August 3, 1892, resolutions were passed by
the city establishing the fund, to which the city contributes half-
yearly a sum equal to. one-third of the contributions of the mem-
bers.

All employes except firemen, policemen and those temporarily
employed, may become members (firemen and policemen have a
separate fund), but all who have entered the service since 1891 —
the date of the principal Act — and who are getting 30s. per week
or upward, must become members, and are obliged to contribute to
the fund.

Each contributor is to pay a sum equal to 3% per cent of his
wages, which is deducted from wages before being paid. The city
adds, therefore, a sum equal to l1/^ per cent of his wages. The
whole accumulates at the rate of 4 per cent per annum.

No provision is made for superannuation. But the benefit is
received in the shape of the withdrawal of the entire amount to
which a member is entitled, because of: — (a) reaching 65 years
of age, (b) being incapacitated by infirmity, (c) retiring bona fide
and not to escape dismissal, (d) being required to retire for good
reasons.

In cases of (a) and (b), he is entitled to the whole amount
paid by himself, together with the amount contributed by the city
and interest on both. In cases (c) and (d), he is entitled only to
his own contributions and interest thereon. In the case of death,
his representatives receive whatever amount he would have been
entitled to claim. Fraud, dishonesty or misconduct causing
pecuniary loss works forfeiture of all claims on the fund except
such allowance as may be made voluntarily.

A committee of five contributors is to be elected by the con-
tributors, and has the power to examine and audit accounts and
to give advice. Other clauses provide for advances to members in
case of long illness. The fund is held absolutely by the city until
benefits are due, and cannot be alienated or assigned by members.
Accounts are made up half-yearly, and each member must be fur-
nished once a year with a copy of his own account. No contributor
may withdraw from the scheme so long as he remains in the service
of the city.

Leicester. No statutory provisions.

Companies. No statutory requirements in any instance.
D 36. Give statutory provisions regarding strikes.

The Conspiracy and Protection of Property Act, 1875, ap-
plies to municipalities and companies alike. The principal section,
— 4 — enacts that when an employe "wilfully and maliciously

154 NATIONAL CIVIC FEDERATION.

breaks a contract of service" with a municipality or company,
'^knowing or having reasonable cause to believe that the probable
consequences of his so doing" will be to deprive the people of gas,
wholly or to a great extent, he shall be liable to pay a fine of not
more than £20 or be imprisoned not more than three months. A
similar penalty is imposed by Section 7 upon every person that, in
order to compel another to do certain things, (1) uses violence or
intimidation against that person or wife or children, or injures
his property; (2) persistently follows him about; (3) steals his
tools, etc. (commonly called "rattening") ; (4) watches or besets
his house or workshop or other place; or (5) follows him with
others in a disorderly way.

D 37. Give statutory provisions regarding citizenship of em-
ployes. None.

D 38. Give statutory provisions regarding conditions under which
employes labor.

None, except the general provisions in such acts as the Fac-
tories and Workshops Acts, which apply equally to municipalities
and companies.

D 39. Give statutory provisions regarding other important
matters.

Birmingham. Expenses of public lighting must be charged to
rates — taxes.

London — So. M. The company may adopt a scheme for al-
lowing employes holding stock to elect not more than three direc-
tors who also hold stock, when the total amount of stock so held
shall exceed £40,000. The scheme must first be approved by the
Board of Trade. Employes to be directors must hold not less than
£100 of stock.

The company may sell gas in bulk to any distributing com-
pany in an adjoining area.

Sheffield. The number of directors is fixed at twelve, 3 of
whom may be appointed by the city, who shall be members of the
city council and not shareholders. These 3 retire every year, but
are re-eligible and have the same powers as the others. A* quorum
is 5 directors, but the 3 city directors do not count in making it;
therefore they can never be in the majority.

On the question of the practical working of this provision, it
is to be noted that the company directors can easily sit in camera
and are not obliged to take the city directors into their confidence
on all points. The city directors report only to the council and to
the public, and can never dominate unless there should be such an
unusual thing as a division in the board when they would hold the
balance of power.

Remedies.

D 40. What means have been provided for the enforcement of

the above provisions?
D 41. Are they adequate? D 42. Give defects.

PUBLIC SUPERVISION. 156

I. The various remedies for enforcing statutory regulations
may be grouped into four classes, viz., judicial, legislative, ad-
ministrative and "extra-legal/' The first class includes the well-
known remedies applied through the courts, such as the issue of
the common law writs, the imposition of fines after trial, the
appointment of a receiver, etc. For instance: — If an undertaking
refuses to supply gas to any individual, the person aggrieved may
bring the responsible persons before a court and have the question
settled whether he is entitled to a supply. If the decision is in
his favor an order will be issued directing that gas be furnished,
to be followed by the ordinary procedure in case of continued re-
fusal. If mains are being laid without authority, which is held to
be a nuisance, the remedy is the same as for any other nuisance.
If the prescribed routine for official action has not been followed,
the courts will declare the action invalid and set it aside when suit
is brought.

It is not necessary to summarize or even to indicate broadly
what is the law. The principal fact to be noted is that the or-
dinary rules apply, and that no statutory restrictions or limita-
tions of importance have been enacted. Further, generally speak-
ing, these rules apply alike to municipalities and to companies. In-
deed, the municipal corporation in England seems to be consid-
ered, in law and in common thought, very much as if it were a
private corporation, pure and simple. Of course, when it comes to
fining a public body, the rule breaks down, for it would mean
merely taking from one pocket to put in another, unless it is pro-
vided, as in the Glasgow acts regarding candle power, that the
fines shall go to those who begin the proceedings. But in theory
and so far as practicable, the judicial remedies will lie against
municipality or company.

There are two weaknesses to this form of control. One is
that the fines are often too small to prevent a corporation from
breaking the law. What effect is there to a fine of £10 a day for
default as to candle power in a city like Sheffield, where there is
such a law, if the company really wishes to break it? Unless the
amount to be saved by disobedience is equalled or exceeded by the
fine for disobedience, it would be financially profitable to disobey,
and when such is the case a mere fine is not effective.

In the second place, as the purpose of judicial control is the
protection of private rights and depends upon the initiative of
some individual, the law may go without enforcement. Litigation,
especially against a big public service corporation, is expensive
and very tedious. The individual injury may be small, and not
worth a suit. The violation, therefore, continues, because no one
will go to the trouble, and combination for purposes of litigation
is extremely difficult. Further, the rule regarding a proper rem-
edy when a company exceeds its powers is that no action can
be maintained by any individual unless he sustains particular in-
jury, the theory being that only the public as a unit is entitled to
complain. If the consent of the attorney general is secured, pro-

15« NATIONAL CIVIC FEDERATION.

ceedingB may be brought "ex rel." Municipalities are individuals
for this purpose. The courts have also held that only a share-
holder or the attorney general may bring suit to question whether
reserve and insurance funds are too large. In other ways even
the consumer has been cut off from a remedy through the courts.

II. The second class of remedies — administrative — is much
more limited in its scope and less frequently provided. Munici-
palities are supervised by the Local Government Board (Secretary
for State in Scotland), a department of the central government
with headquarters in London. It has jurisdiction over loans and
sinking funds in certain instances (see inquiries D 22, 25 and 44),
and its control is quite effective as far as it goes. When authority
to make a loan is requested, the Board may refuse until its wishes
are met not only as to this loan but as to any past financial delin-
quency. As all plants are steadily growing, new capital must b«
raised from time to time, and then the Board has its innings.

The principal weakness of this control as a remedy for illegal
acts is that the day of reckoning is so often postponed. If a large
capital increase is authorized at one time, it may be many yean
before the town is again before the Board and an opportunity
given to remedy the infraction. Further, the means at the com-
mand of the Board for ascertaining whether the statutes are
being obeyed are limited. Its inspection, when the approval of a
new loan is being considered, may be as thorough as desired, but
between inspections, the Board has no means of knowing what is
being done, except from the public reports which must be issued.
Again, the Board does not attempt to include everything within
its survey; it confines its activities to financial matters and par-
ticularly to ascertaining whether the previous loan was made as
directed and whether the provisions then imposed have been
obeyed. Any delinquency in candle power, for example, would
doubtless not be considered by the Local Government Board at
coming within its province, although there is nothing in the law to
prevent it from considering it.

The powers of the Local Government Board as to sinking
funds (see inquiry D 25) are complete in every way. The means
of ascertaining whether the law is being obeyed are adequate, the
duty of enforcement is plainly stated and logically placed, and the
remedies ample and effective. Instances are cited (not in towns
visited in connection with this report) where a department has been
called to account because the sinking fund was a few shillings
below what it should have been.

There is practically no local administrative control over munic-
ipal undertakings. The council is the ultimate source of authority,
and although an appeal may be taken from the action of a
subordinate to a higher official and finally to the town council,
there is no established, legalized method of procedure. It is all
more or less informal, and any change in the policy of the coun-
cil must be brought about by persuasion or the election of new

PUBLIC SUPERVISION. 157

members. Even in the case of local audit, the decision of the audi-
tors has no legal or binding force.

The private companies are subject to different administrative
remedies entirely. They relate principally to the audit of account*
and the testing of gas (see inquiries D 16, 17 and 28). The plan
of having an independent person to test gas is a good one, but it
provides no remedy; it is merely a good way to find out whether
the gas is up to the legal standard. If it is not, the gas examiner
can do nothing; recourse must still be had to a judicial remedy.

The system of audit prescribed by the acts of the South
Metropolitan Gas Company (see inquiry D 28) is fairly effective,
for it does not end with a report upon the accounts, leaving one to
find another way to remedy an illegal act, but provides its own
remedy. No dividends may be paid without authorization of the
auditor, and he may withhold his signature until any error he finds
has been corrected. But an audit such as has been provided for
the Newcastle company (see D 28) is worthless as a remedy against
illegal acts, it does not go far enough. Indeed, that is the prin-
cipal criticism against the administrative remedies. They err not
in what they provide, but in what they fail to provide ; and as far
as the companies are concerned, they are practically free from
interference in this direction. One instance may be cited. The
Sheffield acts provide that dividends shall be limited to 10 per
cent, but that a reserve fund may be accumulated equal to 10 per
cent. As a matter of fact, the reserve fund and the dividends
are at the limit, but the profits have been so large that a balance
was carried forward last year — the total of the surplus profits for
several years — almost equivalent to another 10 per cent of the
capital stock. The acts confer no authority for keeping such a
large balance, and the purport of the acts is clear, viz., that prices
should be reduced so that there should be no such balance. But
no simple and quick method of correcting the situation has been
provided.

III. Coming to the third class — legislative remedies — one
finds a situation quite different from that in the United States.
We are accustomed to a legislature hedged round about with con-
stitutional restrictions, which may not be overridden under any
circumstances. It is somewhat difficult, therefore, to realize that
Parliament is legally absolutely unfettered and able at any time
to step in and declare what shall be or shall not be the law of the
land. If there is any grievance so monstrous as to attract its
attention, and so difficult of alleviation that other remedies are
inadequate, Parliament will take action. But there are several
important considerations to be noted regarding this legislative
remedy.

In the first place, Parliament does not sit in judgment and
meet out punishment, except that the House of Lords is the court
of final resort. Parliament will correct any flaws in procedure
and make the law plain if it has been wrongly interpreted or
interpreted in an unexpected way, but it will not apply the law

158 NATIONAL CIVIC FEDERATION.

in a given case. One must have recourse to the courts for this
purpose.

In the second place, the very bigness of the remedy and the
slowness with which Parliament moves unfit it for many cases.
A small error or a wrong which may be righted in another way
is not usually recognized by Parliament. That body holds that
its purpose is to give expression to public opinion upon important
matters; and a corollary of this theorem is that progress should
be made slowly, so that public opinion may have time to crystallize.
This means that Parliamentary action comes haltingly, that it is
behind rather than in advance of the needs of the country.

Thirdly, legislation is generally non ex post facto. It will
remedy, theoretically, the evil in the future, but it is not ordinarily
retroactive. There is one way, however, in which it does take
into account past deeds. If a municipality or a company has
abused its powers and comes to Parliament for additional authority,
that body will take cognizance of its past record and may refuse
to grant its request or only upon such conditions as will prevent
abuse in the future. Parliament has gone so far in certain cases
as to authorize the taking over of a company by a municipality
upon rather severe terms, or what were considered hard terms,
because the company had not given as good service and had not
been as considerate of public welfare as it should have been. How-
ever, Parliament is ordinarily so careful of property rights and so
conservative in its attitude that legislative remedies are not drastic.

The local parliaments — the town councils — are more easily
reached, more quickly affected and more likely to act. In the case
of municipal plants, their control is supreme, and through the
selection of members, it is always possible to bring about any
change or an entire reorganization. With company plants this
remedy is not important, for the municipal powers of supervision
are not. important (see inquiry D 46), and as Parliament confers
powers upon companies, about the only thing a town may do is to
oppose the company when it is before Parliament; but this oppo-
sition is by no means fatal, although great weight is sometimes
given to it.

IV. Coming to the extra-legal remedies, a word of explana-
tion is necessary. In this group, I mean to include all those
methods by which an illegal act is punished or prevented, but which
have no legal basis, which are not provided for in any statute or
judicial decision. For example: — If it were proposed to issue se-
curities which were clearly beyond the authority of the company
or municipality, investors would refuse to have anything to do
with them and they could not be floated. There is no statute
which keeps investors from buying these securities, but they will
not do so and their refusal is usually as effective as any statute or
court decision. Again. — If a person is not satisfied with the service
rendered, he need not use it; there is no law to compel him to do
so; and more than one undertaking has paid dearly for its short-

PUBLIC SUPERVISION. 169

sighted policy through a loss of consumers or a failure to develop
a large business.

But the number of extra-legal remedies is very limited, and
their effectiveness very uncertain. The use of gas is to a large
extent imperative; there are very few substitutes, and these are
economically wasteful or socially inexpedient. The industry is
naturally monopolistic and therefore not susceptible to the same
influences that affect competitive business. To leave the protection
of individual rights or the maintenance of efficient administration
to extra-legal remedies is, therefore, very unsafe and unwise. In
a few instances, it may be done, but they are the exceptional.

V. However limited in scope and ineffective in certain re-
gards these remedies may be when considered separately, are they
adequate when taken all together ? It is true that when fitted
one into the other, for each has certain advantages the others do
not possess, they are much more effective and comprehensive than
when taken singly. But still it is true that the English gas acts
are not as complete in the direction of remedies and of means for
ascertaining whether the statutory provisions are being obeyed as
in the regulations which are to be enforced. There is room for
much improvement, and one may not say that the remedies are
wholly adequate and properly effective. One does not hear a long
list of complaints upon this score, but this is due more to the fact
that the companies and the municipalities generally aim to keep
within the legal provisions, and consequently remedies are not so
much needed, than to the adequacy of these remedies when they
are needed. If a company is determined to break the law, it can
find ways to evade enforcement which would be very hard to reach.
Yet, a proper system of remedies and penalties ought to make it
increasingly difficult for just such companies.

D 43. If judicial or administrative orders have been issued by
central authorities relative to gas companies, state them,
and give source and date of issue.
None of any importance could be found within recent years.

D 44. If any central board, commission or other authority has
control or supervision as regards gas works, give statutory
provisions relating to its powers and functions.

Birmingham, Manchester. Only as to loans and sinking funds
(see inquiries D 22 and 25).

Glasgow. None of importance except D 25.

Leicester. As to loans and sinking funds, see inquiries D 22
and 25. The consent of the Local Government Board must be se-
cured before local authorities outside of the borough may pur-
chase the mains in their areas.

London — 80. M. See inquiries D 16, 17, 21 and 28. The
rents which may be charged for prepayment meters may be revised
by the Board of Trade after 1907 upon request of the company or

1(H) NATIONAL CIVIC FEDERATION.

the local authorities and every seven years or more from the date
of the last inquiry for revision. It may also alter the boundaries
of the district of supply if requested by two or more companies,
a local authority or twenty consumers.

Newcastle, Sheffield. None of importance.

Note. — There is one additional provision that appears in
nearly every act, especially in recent years since the housing prob-
lem became so acute. It is that 10 (or 20) or more houses occu-
pied by laborers may not be acquired without the consent of the
Local Government Board, the Secretary for Scotland or the Home
Secretary, as the case may be.
D 45. What have been the effects of this supervision?

Good so far as it goes, but it does not reach far. Neither
municipalities nor companies object to it.

D 46. What powers of supervision over the construction and
operation of the plants of private companies does the city
possess ?

London — So. M. The London county council has power to
appoint gas examiners, but the chief examiner is appointed by the
Board of Trade. These examiners test the gas for candle power,
purity, pressure and calorific value. Streets may not be opened
except under the superintendence of the street authorities, and the
work shall be done how and when they direct. The paving shall
be promptly relaid, the obstructions properly guarded, etc. No
new mains may be laid without a permit from the local authorities.

Newcastle, Sheffield. As to gas examiners and auditor, see
inquiries D 17 and 28. The breaking up of streets shall always
be under the superintendence of the local authorities, and the work
shall be done when and how they direct. All obstructions shall be
properly guarded, the paving promptly relaid, etc. The new mains
may be laid without a permit from the local authorities. In
Sheffield all extensions must be approved by the city.
D 47. What provisions has the city made for the exercise of its
powers of supervision ?

London — So. M., Newcastle. Advantage has been taken of
all provisions and the proper officials appointed to see that they are
executed.

Sheffield. A trained chemist has been appointed by the city
and also an auditor as provided by law. In each case the salary
actually paid is considerably above the legal requirement, as the
company prefers to have good men at good salaries. The provision
requiring approval of proposed extensions by the city prevents the
company from spending its surplus profits in this direction and
relieves it of the trouble of going into sparsely settled areas where
it would not pay.

D 48. Has the company resisted the enforcement of the legal
provisions regulating and providing for public super-
vision ?

PUBLIC SUPERVISION. 161

Companies. No record could be found of any important resis-
tance in recent years.

D 49. What provisions have been found impossible of enforce-
ment, and why?

See inquiries D 40, 41 and 42.

(Schedule II. for Gas, Electric Supply and Tramways has
been placed at the very beginning of this volume.)

Tol. III.— 12.

ENGINEERING MATTERS

British Gas Works

(Schedule III)

By WILLIAM NEWBIGGING and JOHN B. KLUMPP

H 1. Data for year ending: Birmingham, Manchester, March 31,
1905; Glasgow, May 31, 1905; Leicester, December 31,
1905; Companies, December 31, 1905.

H 2. What process was used in making gas? If more than one,
give approximate amount manufactured by each.

(1) (2) (3) (4) (5)

P&T

nS Daily Ca/Pa- Gent- °f

sSr&^M ™

Iff 3K*. S

M. Cu. Ft. Year

Birmingham 43,250 31,750 73.4 80

Glasgow 41,000 41,000! 100 100

Manchester 25,400 18,9002 74.4 77.8

Leicester 14,000 11,000 78.6 98.5s

London-So. M 66,000 66,000 100 100

Newcastle 16,500 15,OOQi 90.9 94.3

Sheffield 18,000 18,0002 100 100

H 3. What process was used in purifying gas? If more than
one, give approximate amount purified by each.

Birmingham. Oxide of iron and lime.

Glasgow. Lime purification only.

Manchester. Oxide and lime.

Leicester. Oxide of iron — bog ore.

London-So. M. Lime and Weldon mud. Since October, 1905,
oxide of iron has been substituted for lime.

Newcastle. Lime.

Sheffield. Oxide and lime.
H 4. Give brief description of undertaking.

1 Enriched with cannel.

1 Enriched with cannel and benzol.

• Water gas plant held In reserve.

GAS ENGINEERING. 163

DESCRIPTION OF PLANTS.

Birmingham. The Birmingham gas undertaking manufac-
tures a mixture of coal gas and carburetted water gas, the output
of the year ending March 31, 1905, being about 80 per cent, coal
gas and 20 per cent, water gas, further enrichment being obtained
by the use of about 10,000 gallons of benzol. There are five gas
manufacturing stations, including a small plant at Swan Village.

The Saltley works located in the northwestern part of the city,
on the Duddeston Mill Eoad, are the headquarters of the engineer
in charge, and are capable of carbonizing about 1,100 tons of coal,
or producing eleven million cubic feet of gas daily. They have a
railway siding on the Midland Eailway, and are in rather good
shape, although the general layout of the plant is poor. The gas
holders are placed in the middle of the property dividing the man-
ufacturing plant. The purifying, scrubbing and washing plants
are separated by being irregularly placed in the yard, and al-
though in two divisions are not handled independently of each
other.

No. 1 and No. 2 retort houses contain installations of inclined
benches, 416 retorts. The houses are provided with pan convey-
ors and mechanical arrangements for handling coal and coke. At
the time of the visit the coke-conveyors were not in use, as experi-
ments are under way to determine the cost and efficiency of the
conveyors in comparison with hand labor.

The retort house No. 3 contains 470 horizontal retorts. These
are in beds of 8's of the regenerative type, and the house is oper-
ated by eight sets of charging machinery driven by compressed
air. The coke of this house is wheeled out and is stacked or loaded
into cars by a gantry crane of large capacity.

A noticeable feature of the Birmingham layout is the lack of
coal storage capacity, and, with the exception of this small quantity
in hoppers before the retorts, all coal is stored in the open by being
arranged in regular piles throughout the yard. The exhausters
at this plant are of the reciprocating piston type, which are the
first of the kind observed in our examination. The purifying
house at the south end of the yard was badly damaged two years
ago by an explosion and has been reconstructed with open sides.

The Nechells works are adjacent to the Saltley works across
the Midland Eailway and the river Eea. This plant is also rather
badly laid out, as they have a coal gas manufacturing plant and
a purification plant at extreme opposite ends of the property, with
a large carburetted water gas plant between. The coal gas manu-
facturing plant consists of 416 inclined retorts, and has a present
capacity of five million cubic feet daily. An additional building
was erected for another five million capacity, but retorts have as yet
not been installed. The scrubbers and washers of both sections
are in place. A purifying plant for ten million is in place, con-
sisting of four boxes of 35 feet by 40 feet each.

The carburetted water gas plant consists of six sets of Econ-
omic type, of one million cubic feet each. This plant has its own

164 NATIONAL CIVIC FEDERATION.

exhausters, meters and purifying apparatus and oil tanks; the
purifying apparatus consisting of eleven boxes 35 feet by 40 feet
each, and oil tanks of 1,800,000 gallons capacity.

There are two holders, one four million and one, eight and ft
quarter million cubic feet, with space for the erection of another
eight and a quarter million foot holder. At these works there is
also recently erected a very complete laboratory and a coal testing
plant, capable of manufacturing about 200,000 feet of gas daily.
The coal and coke at this plant is handled by coal handling ap-
paratus, and the coke is loaded into cars or stored by a rotating
gantry crane smaller than the one installed at the Saltley works.

The Windsor Street works have a capacity of about ten and
a half million cubic feet of coal gas and four million cubic feet
of water gas. It occupies an area of about 26 acres. The works
are laid out well but are not capable of being extended, the entire
ground being occupied. The retort houses are at one end of the
property and consist of two long parallel buildings containing in
all 756 retorts. They are of the horizontal "through" type, and
are charged and discharged by automatic machines. There is an
old retort house at the western end of the plant containing about
300 horizontal retorts that are practically useless, and have not
been in use for some time.

The coal is received by high level railway siding from the
L. & N. W. Railway, and the entire works are covered with steel
viaducts to the average height of 20 feet. These works, like Salt-
ley and Nechells, have no enclosed coal storage capacity with the
exception of the space in front of the retorts, and the coal and
coke is stored in the open.

The purifiers, scrubbers and washers are of the orthodox type,
and there is nothing particularly original in their construction.
The purifying plant consists of eight boxes 66 feet by 32 feet and
six of 40 feet by 32 feet. At this plant, as well as at the Saltley
works, they have a cyanogen plant for removing the cyanide from
the gas by means of rotary scrubbers. The cyanides are worked
into crystals and sold direct. There are two gas holders of about
six and a quarter million cubic feet capacity each and one of two
millions capacity at this plant; and it is worthy to note that they
are built on the "twin" type — that is, the tanks were built at the
same time with a narrow dividing wall. There are also five or six
small holders at this point.

In addition to the coal gas, there is a carburetted water gas
plant containing four sets of one -million feet each, of the Eco-
nomic type and construction. This plant is complete in itself,
with its own purifiers, meters and exhausters and oil storage tanks.

The Adderley Street works are located in the southeastern
part of the city and have been in use for a good many years. They
are of 1,750,000 cubic feet daily capacity of coal gas. The works
are subdivided by a canal and a street. The retort houses are in
two different parts of the property and contain horizontal
"through" retorts. The coal and coke is entirely handled by hand

GAS ENGINEERING. 165

and the retorts are hand-fired. The works are badly laid out and
all more or less of antiquated construction. The cost of operation
of these works must be specially high here, although it is stated
that the gas is made nearly, as cheap as at the other works. The
plant, in our opinion, has greatly depreciated, and as an operative
station should be abandoned in the near future, when the new
works are extended to take care of the supply.

The Swan Village property is in the Borough of Bromwich,
some five or six miles west from the center of Birmingham. It
has a capacity of three million coal gas and one million carbu-
retted water gas. One of the retort houses contains 16 benches of
8's, 20-ft. through retorts, which are full depth regenerators, and
are charged and discharged by West's compressed air machines.
The other houses contain 17 benches of 7's, of direct fired type,
and are charged and discharged by hand. There is a railroad
siding at this plant, and, as at the other works, coal is stored in
the open. Condensers, scrubbers and washers are of ample capacity,
and there is nothing unusual in their type. There is a cyanide
washer for the recovery of cyanogen. The carburetted water gas
plant consists of two sets of Humphrey & Glasgow's, having a ca-
pacity of 750,000 cubic feet each, and are complete with their own
washing, scrubbing and purifying apparatus. There are two gas
holders at this plant, one of two and one of one million cubic feet
capacity.

Glasgow. In Glasgow there are four gas manufacturing
stations: Tradestone, Dawsholm, Dalmarnock and Provan. The
Tradestone works, covering an area of 15^ acres, are situated on
tne south side of the Clyde, in about the middle of the settled sec-
tion. These works alone supply the whole of the area south of
the Clyde. The site of the works is fully covered with plant and
buildings, and the manufacturing capacity will 'not be further in-
creased.

The coal is brought into the stores by means of an extensive
system of railway sidings and stacked conveniently in position.
The retort houses are situated at right angles to the coal stores
and consist of four parallel stacks containing 640 mouthpieces.
The settings are of the full depth regenerative types with single
mouthpiece retorts. There is complete installation of coal break-
ing, elevating and conveying plant, together with Arrol-Foulis
hydraulic charging and drawing machinery. The coke is dropped
onto the lower floor of the retort house, and removed thence by
means of small coke wagons on a narrow gauge steam railway.
At the gable end of the retort houses there is an elevated steam
coke handling plant, by means of which the coke can be loaded
into wagons for shipment from the works or into carts for domestic
requirements.

The condensers, scrubbers and exhausters are of the orthodox
type and call for no particular mention. The boilers consist of
two types, Babcock & Wilcox and Lancashire. The purifiers, 16
in number, are on the ground floor, in four sets of 4's. Lime only

1«6 NATIONAL CIVIC FEDERATION.

is used for purification. There are four gas holders at this sta-
tion, with a combined capacity of a little over seven million cubic
feet. The governors in use are of a pattern invented by the late
engineer and are of the remote control type.

The department owns the chemical works on the other side
of the railway, which is leased to a contractor for the working up
ammoniacal liquor and sulphate of ammonia. A noticeable fea-
ture of the works is that the lime used in the purification is brought
from Ireland as limestone and burned in kilns on the works.

The Dalmarnock works has a capacity of eight million cubic
feet per day. This plant, however, is for several reasons to be
dismantled at an early date as far as the manufacture of gas is
concerned, and has been shut down now for two years. These
works are situated to the southeast of the city and connected with
the railway by a low level siding. They are kept in a fair state
of preservation and contain much apparatus of value and are
still available. The principal value of these works is in the land
and in its usefulness as a storage station.

The Dawsholm works are situated to the northwest of the city
and have a combined area of 42 acres. These works were erected
in 1871. In 1891 Temple works, belonging to an adjoining gas
company, were acquired, and a tunnel was constructed under the
canal to connect the two works. The manufacturing capacity of
this station is now twenty million cubic feet per day. These works
are well situated, being connected to two railway systems and a
canal. The retort houses contain 2,158 mouthpieces, heated by
furnaces of the full depth regenerative type, single mouthpiece re-
torts. The coal is brought into the retort houses by a high level
siding, and the houses are completely equipped with elevators, con-
veyors, and charging and drawing machinery of the Arrol-Foulis
type. The coke is removed from the retort houses by a narrow
gauge railway into the yard where it is dealt with by means of
grab cranes from an elevated coke landing platform. The whole
of the condensing, scrubbing and washing plant is similar in char-
acter to the Tradestone works and is of ample capacity to deal
with the maximum output of gas. The purifiers are in two sec-
tions, the boxes being on the ground floor. Operations are carried
on with difficulty owing to the congested arrangements. The gas
holders, eight in number, have a combined capacity of fifteen and
a half million cubic feet.

There is a chemical works on the site for the production of
sulphate of ammonia only, and a tar works recently constructed
is situated on the other side of the railway convenient to the gas
works. These tar works are rented to an outside contractor and
are capable of dealing with the output of the plant.

The Temple plant as a manufacturing station is out of use,
the intention being to utilize the plant for experimental purposes
only. On this site stables have been constructed. The municipality
also owns a number of workmen's houses closely adjoining the
works.

GAS ENGINEERING. 167

Provan — The necessity for the erection of new works became
evident some few years ago, and in 1898 a site was selected at the
northeastern part of the city at Provan as heing suitable. The
area of the site is 123 acres, and it is conveniently situated for
both railway and canal communication. The levels are irregular,
but advantage has been taken of this to facilitate the handling
of material. The design provides for the completion of these works
in four units of twelve millions each, but up to date only one of
these units has been provided. Very considerable expenditure has
been incurred necessarily for the first unit, which will not be
repeated when the necessity for the provision of the other unit
arises, such as the construction of the main road, sidings, bridges
and boundary walls, and railway connections. The offices and
workshops which will be required for the whole four sections when
complete have been erected.

The present coal stores have a capacity of 50,000 tons, and
the coal is brought in and either stored, or dumped automatically
into hoppers and breakers, the retort houses being equipped with
complete automatic coal handling apparatus. The retort stack con-
sists of 1,440 mouthpieces arranged in settings of twelve. These
stacks are of the single retort type, and are heated by four sets
of outside producers, containing six producers each, each producer
handling 60 retorts. This style of heating is somewhat unique
and is the design of the late engineer. The coke is dumped to the
lower floor and handled by means of small wagons on a narrow
gauge steam railway, and stored and handled by means of rather
elaborate gantries and conveyors. The washing, condensing and
scrubbing apparatus is of modern type, located in units so as to
be conveniently extended. A notable feature in this outfit
is the cyanide plant which removes cyanogen during the scrubbing
process. The purifying boxes are arranged in one large open-
sided house of twenty-four boxes in six sections. These boxes are
38 feet by 27 feet, and are arranged to receive the line stored on
overhead distributing track and to be emptied by dumping direct
into the wagons on the narrow gauge railway. This works also has
kilns for burning their own limestone. The majority of the gas
made at these works is pumped direct to the Dalmarnock holders
by means of Parsons turbine pushers. There are two holders at
present erected, of 8,500,000 cubic feet each, and provision is
made for erecting three more of similar capacity. A plant for the
maufacture of oil gas was installed at Provan, but was never com-
pletely finished or operated. This plant was intended for the en-
richmen of coal gas..

In conjunction with these works there is a large chemical
works for treating ammoniacal liquor and for complete distillation
of the tar. This plant has been leased to a private contractor and
receives the entire output of the works. Provision is made to ex-
tend the chemical works as the gas works is extended. There are
a few workmen's cottages erected, extensive offices and consider-
able provision has been made for the comfort and convenience of

168 NATIONAL CIVIC FEDERATION.

the workmen in the shape of reading rooms, bath rooms, and mess
rooms. The workshops also are well equipped with tools and
machinery for carrying out general repairs in the works. The
buildings about the works are constructed out of bricks made from
the clay taken out of the excavations by a plant which has been
installed on the site.

Manchester. This undertaking manufactures both coal gas
and carburetted water gas, during the year of this report making
about 78 per cent, coal gas and 22 per cent, carburetted water gas.
At present operating four works are being operated: The Brad-
ford Eoad works, in the northeastern part of the city on Brad-
ford Road ; the Rochdale Road works, in the north central part of
the city; the Gaythorn works, in the south central part of the
city, and the Droylesden works, a small plant at Droylsden.

The Bradford Road works is the largest and most recently
constructed, gas being first manufactured there in 1884. The
site consists of about 53 acres, and the works have a capacity of
8,000,000 coal gas and 6,500,000 water gas. There are at present
two retort houses, each containing 28 benches of horizontal through
retorts, with eight and nine retorts per bench. These houses are
provided with West's compressed air charging and discharging
machines, the benches being of the full depth regenerative type.
The condensers consist of three Morris and Cutler's water-tube
and one Eclipse with vertical columns. There are four twin
rotary exhausters of Gwynne & Company and Laidlaw & Sons.
The scrubbing and washing plant consists of Livesey washers and
Kirkham & Hulett's rotary and Clapham & Laycock's rotary scrub-
bers. The purifiers consist of 22 boxes with a total superficial
area of 27,000 square feet. The station meters consist of three
meters for coal gas, having a capacity of 175,000 feet each an hour.
There are four gas holders having a total capacity of 6,800,000
cubic feet, and one of 7,000,000 cubic feet capacity. The coke
handling apparatus consists of a steam swinging crane which has
a capacity of dealing with 200 tons in 24 hours, lifting and piling
the coke or loading same direct to the railway cars. The coke is
brought to this crane by means of buggies running on tracks di-
rectly from the basement to the retort houses.

The carburetted water gas plant consists of eight sets of
Humphrey & Glasgow's apparatus. In connection with this plant
there are six Lancashire boilers, four blowing engines and fans,
and two exhausters of the Dempster type. There is a relief gas
holder 80 feet in diameter, and necessary oil tanks. The con-
denser scrubbers for water gas are installed in connection with
the generating apparatus. The gas is purified in a new purifying
house built entirely of steel and containing twelve purifiers, each
35 feet square, with space for four additional purifiers, lime being
used for this purification. There are two station meters of 160,000
cubic feet capacity installed in the regular meter house for meter-
ing the water gas. The coal is handled at this plant by means of
high level railway connection, the coal being dumped directly into

GAS ENGINEERING. 169

hoppers at retort houses or being stored in sheds under the
tracks.

At these works there is also an experimental coal gas plant,
complete in every detail from retorts to governor, with a capacity
of 60,000 cubic feet per day. In 1892 they erected a sulphate of
ammonia plant with a capacity of 40 tons per day, arranged in
two sets for the manufacture of sulphate from liquor received from
the various works. Also a plant for the manufacture of sulphuric
acid from spent oxide. From these works there is a 36-inch in-
dependent pumping main connecting the Gaythorn works, and a
30-inch main connecting the Rochdale Eoad works.

The Rochdale Road works consist of a site of nine acres, with
a coal gas manufacturing capacity of 6,000,000 cubic feet per day.
There are four retort houses erected, three of which are in oper-
ation, the fourth one being abandoned and now used as a meter
governor house and shops. The retorts are all of the horizontal
through type with regenerative furnaces, two of the houses being
operated by Woodward-cum-Foulis hydraulic stoking machinery,
while the third has Woodward's stoking machines operated by gas
engines. The condensers at this plant consist of a large rectangu-
lar horizontal condenser, and one Eclipse water-tube of four bat-
teries. The exhausters consist of three twin sets built by George
Waller & Son, also three Livesey washers, 4,000,000 cubic feet
each, the gas going through these in parallel. The purifiers con-
sist of eight boxes, each 32 feet square, four boxes 50 by 30 feet
and four boxes 45 by 40 feet. There are two station meters, each
175,000 cubic feet an hour. There are five gas holders at this
site, two about a quarter of a mile away at the Newton gas holder
station, the five having capacity of about 4,000,000 cubic feet. The
coal is brought into this plant by high level railway which dumps
direct into the coal sheds and hoppers that are parallel to the re-
tort houses. The coke is now handled and screened by hand, but
apparatus is being installed which will provide hoppers and cranes
for supplying domestic coke without handling.

The Gaythorn works have an area of about nine acres and
have a manufacturing capacity of about 3,000,000 coal gas. There
are at present two retort houses in use, one consisting of 18
benches of six retorts, 20 feet long, and the other 18 benches and
eight retorts, 20 feet long, both of the incline type. They have a
third retort house containing horizontals that is being dismantled
and was out of use at the time of investigation. The condensing
plant consists of a large rectangular condenser and nine atmos-
pheric condensers. The washing and scrubbing plant consists of
two Livesey washers, one Stephenson's extracting tower, and two
Holmes rotary washers. The purifiers consist of 16 boxes with a
total area of 10,000 square feet. There are three station meters
with 100,000 cubic feet per hour capacity each, and seven gas
holders with a total capacity of about 6,000,000 cubic feet. The
coal is brought to the works by high level railway sidings, the cars
being emptied into a large hopper coal breaking machine, from

170 NATIONAL CIVIC FEDERATION.

which the coal is elevated direct to the retort house bunkers. The
coke is removed by conveyors placed in front of the retort set-
tings, where it is hoisted to an elevated stage and delivered in
hoppers which serve to load wagons for domestic purposes. The
coke elevating crane is capable of piling coke in the open for stor-
age purposes.

The Droylsden plant is a site of about five acres and has a
manufacturing capacity of about 400,000 cubic feet of coal gas
per day. It has one retort house, five benches of sixes, 15 feet
long, of the incline type, that have been in use since 1892. It has
one water pipe condenser, two exhausters, two washers, one tower
scrubber, and one Kirkham & Hulett's washer-scrubber. There
are four purifiers, each box being 14 feet square, two station meters,
and two gas holders of 600,000 cubic feet total storage capacity.
These works supply the town of Droylsden, about four miles from
Manchester.

In addition to these manufacturing plants the undertaking
has a four acre piece of property on the Manchester Ship Canal,
where they have erected oil tanks for the storing of oil for the
manufacturing of carburetted water gas. They have a piece of prop-
erty of about one acre on Poland street upon which is erected a
three-story building used as a meter and stove shop and as a gen-
eral store. On the same piece of property they have a stable and
machine shop and smithy, and room for the storage of pipes and
heavy fittings. On Whitworth street they have a piece of property
of about a quarter of an acre on which buildings are being erected
for the use of the distribution department.

Leicester. Prior to 1875 the Belgrave Gate works, with a
capacity of nearly three million cubic feet of gas daily, were the
only works in the town. All the coal and raw materials have to
be carried to the works, owing to the absence of railway connec-
tions. In 1875 the gas company purchased the 32 acres which
now form the site of the Aylestone works. In 1878 the gas un-
dertaking was transferred from the company to the municipality,
and within the last few years an additional site of about 150 acres
has been purchased outside of and to the north of the borough, on
which a future new works is contemplated.

The Belgrave Gate works consist of 3 retort houses and 3 in-
termediate coal and coke stores built parallel with each other.
These retort houses contain benches of half depth non-regenerative
type. Firing is done by hand, there being no automatic coal or
coke handling devices. The condensing, purifying and scrubbing
equipment is of the orthodox type, and contains no special fea-
tures worthy of mention. At this plant there are three holders,
two of rather small capacity, and in the event of shutting down of
this plant, this site would make a good storage and distributing
station. The abandonment of this station as a manufacturing
station is only a question of a short time, which is dependent on
the increase in the sales of gas. It was thought two years ago,
owing to the constant increases, that it would be necessary to build

GAS ENGINEERING. 171

new works in 1907, but owing to the decrease in sales of last year,
the construction of these works has been temporarily postponed,
and the Belgra've plant will continue operation a few years longer.

The Aylestone works are located in the southern part of the
borough, about 1£ miles from the center of the town upon Ayle-
stone Road, and are connected to the railroad by high level sidings.
These works are rather elaborately built, everything being of very
substantial character, and are spread over considerably more
ground for their capacity than is usual in gas works construction.
The capacity of the plant is eleven million cubic feet daily, includ-
ing a two-million cubic foot water gas plant. There is no room
provided on the site for further increasing the coal gas manufac-
turing capacity.

The coal gas manufacturing plant is divided into two sections,
the gas being treated individually in these sections from retort
house to holders. Eetort house No. 1 contains 19 benches of 9's
and five benches of 8's ; retort house No. 2 contains 24 benches of
9's and five benches of 8's, making a total of 467 retorts. These
are horizontal 20 foot through type, with full depth regenerators.
There are two boiler houses, containing Lancashire and single
B. & W. boilers. There are two exhauster houses, one containing
two twin exhausters of the Grwynne make, the second containing
three exhausters of the Donkin make. There are two tower scrub-
bers, 12 feet by 58 feet and three Livesey washers, two of which
contain oil for the removal of naphthalene; one Kirkham & Hue-
lett rotary washer and one Walker's patent purifying machines.
The purifying boxes are constructed in the open on the ground
level with buried connections, with parallel oxide, sheds. The
first section contains 12 boxes 24 feet by 24 feet and the second
section 15 boxes 32 feet by 32 feet; Weldon mud and oxide being
used exclusively for purification purposes. There are two meter
houses, each containing two meters of 80,000 cubic feet per hour
capacity each.

The carburetted water gas plant consists of* three sets built
by the Economic Gas Construction Company, of one million cubic
feet capacity each. This plant is complete in itself with engines,
blowers, pumps, condensers and scrubbers. It is arranged in a
substantial building containing its own boilers, engines, meters and
gas testing apparatus adjacent. It has its own sets of purifiers,
consisting of seven boxes 32 feet by 32 feet, an oil storage tank
of 400,000 gallons capacity, and a relief holder of about 200,000
cubic feet capacity. This plant is only used for emergency pur-
poses, or to carry them over the peak of maximum consumption.

The works is thoroughly equipped with shops, including ma-
chine shop, carpenter shop and smithy, a separate locomotive shop
and a complete stove and meter repair shop. There are also men's
reading rooms and mess rooms. During the construction of these
works the river course was changed and very substantial river walls
were built. A small island was appropriated and equipped for
recreation and bathing purposes for the men.

172 NATIONAL CIVIC FEDERATION.

In about 1886 about three and one-half acres of this property
were devoted to the erection and construction of chemical works.
These works comprise a complete sulphate and ammoniacal plant,
as well as a plant for the treatment of tar by-products, Glaus sul-
phur recovery plant, also ample storage capacity for ammoniacal
liquor, tar, sulphuric acid and extensive pitch beds. There is a
carbolic acid and anthracene cake plant, and provision is also
made for the recovery of a certain oil for naphthalene treatment.
This oil is used in the plant in ordinary Livesey washers for the
prevention of naphthalene, and is also sold to other gas works
for the same purpose. In the construction of this plant, the na-
ture of the ground necessitated special care in the foundations,
and in some sections it was necessary to go to the depth of twelve
or fifteen feet, which increased the cost of construction. There
are about eleven and one-half miles of railway siding and lines
about the plant, which reach all points in the gas works and chem-
ical works. The works has its own locomotive and rolling stock
equipment. The Aylestone Eoad front of the works is very pleas-
ing in appearance, and consists of handsome offices with clock tower,
gateway, governor house and about twenty workmen's cottages.

London — South Metropolitan. The different gas works of
the South Metropolitan Gas Company, six in number, are: Old
Kent Road, Vauxhall, Bankside, Rotherhithe, Greenwich and East
Greenwich. These works have a total daily manufacturing capacity
of 66,000,000 cubic feet.

The Old Kent Road works- are situated alongside the Surrey
Canal, and the whole of the coal used is brought by barges to the
company's wharf. The works may be divided into two sections,
one being the original works of the company, and the other a larger
section, the extension of the original works. The original section
is complete in itself and capable of being modernized, but at pres-
ent it is practically out of use. The second section, though old,
has been completely modernized recently. The coal is landed by
means of cranes and grabs into wagons, and these are run into the
coal stores, which are conveniently situated parallel to and alter-
nately with the retort houses. The total storage capacity for coal
is 40*000 tons.

The retort houses, four in number, contain 1,280 retorts, set
10 retorts in a bench, and these are heated by a central producer
gas plant situated at the gable ends of the houses. The producer
gas is taken through 5-foot diameter steel tubes, one on each side
of each stack. The tubes are cased with brick and run from one
end of the house to the other. From the main tubes the gas is
carried to each setting through 12-inch cast-iron pipes, and there
utilized for the heating of the retort settings. The charging and
drawing machines are of the Arrol-Foulis and West type, com-
pressed air, hydraulic and steam being the motive powers. The
coke handling and stacking plant comprises hauling gear driven
!>y .UMS engines situated outside the gable ends of the house, haul-
ing the coke wagons from the lower floor of the house up an in-

GAS ENGINEERING. 173

dined plane to overhead rails on trestles, two of which are 350
feet in length. The manufacturing plant in this section is worked
with about 14 men to a house on each shift of 8 hours, and a daily
quantity of 250 tons of coal is dealt with by these men. The boil-
ers comprise Lancashire and the Babcock & Wilcox type.

The condensers are of the Carpenter reversible form and are
of ample capacity. The gas passes through the condensing, scrub-
bing, washing and purifying plant in two streams. Oxide has been
exclusixely used for purifying since last October, up to which period
lime only had been used. The original retort house is parallel
to the canal and at present contains 300 retorts which are charged
and drawn by hand. The intention of the company is to take out
the present retort stacks and put in more modern stacks. The con-
densing, scrubbing and purifying plant is of the same style as the
later sections and of ample capacity. Some of the old original
moving machinery is still in use. The gas holders, six in num-
ber, have a total storage capacity of eleven and a half million
cubic feet. This works is connected by independent mains to all
the other stations of the company, with the exception of Vauxhall.

There are extensive repair and outfitting shops comprising
machine shop, carpenters' shop, erecting shop, meter shop, stove
shop and general stores. Not only are all the necessary repairs
to the plant and to meters and stoves carried on here, but much
of the construction work of the plant is also done by the com-
pany's workmen. The main offices of the company are situated
on these works. On this plant there are also extensive stables and
motor car sheds for taking care of the equipment. There is also
a small chemical works consisting of sulphate plant and Glaus sul-
phur recovery plant. There is extensive unoccupied property which
is used as recreation grounds for the company's employees. Some
of the unoccupied spaces is also devoted to gardening purposes
for some of the men. The company recently have acquired prop-
erty around the main entrance along Old Kent Eoad with a view
to getting better egress and ingress facilities.

The Vauxhall gas works is a congested plant manufacturing
about thirteen million cubic feet daily on an area of about five
acres. It is located on the river front adjacent to Vauxhall Bridge.
The storage station of this plant is located on Kennington Lane,
about half a mile away. The manufacturing plant consists of four
retort houses that are built at right angles to the river front. The
coal stores are irregularly placed, being alongside the river front
in some cases and parallel to the retort houses in others. Coal is
received by barge and unloaded by means of steam cranes and
grabs and distributed by means of a high level narrow gauge road
to dump carts pushed by hand.

The retort houses contain 23 benches of 10's. They are 20-
foot through retorts all hand-fired by scoops. This house is too
narrow to conveniently install automatic machinery. The second
retort house contains 15 benches of 10's and one bench of 6's,
20-foot through retorts. The charging and discharging is accom-

174 NATIONAL CIVIC FEDERATION.

plished by means of West's compressed air machine. The third
retort house contains 22 benches of 10's, and is hand fired. This
house is wide enough for the adoption of automatic machines if
necessary. The fourth retort house contains 26 benches of 10
retorts, and is charged and discharged by means of Arrol-Foulis
hydraulic machines. These four houses contain a total of 1,732
mouthpieces, and the coal stores are capable of storing 15,000 tons.
Coke is dumped to the lower floors and forked into wagons on the
narrow gauge, and either loaded into barges direct or prepared for
domestic use.

The condensing capacity at present is small but is being in-
creased by the addition of large tubular condensers in which the
water is cooled through forced draught cooling towers. There are
three Livesey washers, three tower scrubbers, and three rotary wash-
ers, which are somewhat deficient in capacity for the output of
the plant. Purifying is done now entirely by means of oxide,
which was started in October, 1905. There are 14 boxes, the gas
passing through in two streams, with four catchboxes. They are
deficient to about 50 per cent, in purification. The purifying
houses have overhead oxide sheds and one house, in which the
boxes are on the ground level and have two overhead oxide sheds.
The boilers, six in number, are of the Lancashire type, and there
are hydraulic engines and accumulators and air compressing en-
gines for operating the charging machines.

There are extensive shops at this plant, in which they do all
their own repairing and assist in construction work. The plant
is fairly well covered by means of a narrow gauge elevated railway
whereby they are able to handle their coal, utilizing an open coal
store at one end of the station. The works are bisected by a
small creek which enables river barges to enter with all materials
at high tide. The local manager's office is situated at this plant
as well as a small show room and complaint desk. There is fur-
ther a workingmen's institute with reading room and meeting hall.

The holder station mentioned above occupies a plot of ground
half a mile from the works and contains five holders. These hold-
ers are connected to the main works by three distinct mains and
have a storage capacity of ten and a half million cubic feet. On
this property are also the three station meters and the governors,
as well as three distinct installations of fan pushers for raising
the pressure to the various parts of the district.

The work of gas manufacture is carried on with difficulty
owing to the congested arrangements.

The Rotherhithe station is located on the south side of the
Thames, adjacent to the Surrey Commercial docks. It occupies a
space of about six acres and has a manufacturing capacity of six
million cubic feet. It is located on the Thames and has wharfage
facilities for barges as well as steamers. The coal stores are ar-
ranged both parallel and at right angles to the river, and have
a capacity of 9,000 tons. Coal is raised from barges and steam-
ers by means of cranes and grabs and distributed to the stores

GAS ENGINEERING. 175

and retort houses through an overhead railway. No. 1 retort
house contains 28 benches of 10 retorts, they are 20 feet through,
full depth regenerators. The second retort house, parallel to the
river, contains 19 benches of 10's, each of the same type. These
retorts are charged and discharged with West and Arrol-Foulis
machines. The coke is quenched and dropped into wagons on the
lower floor, elevated by elevators to the overhead narrow gauge
railway, and either run direct to the barges on the river front or
distributed on piles in the open. This overhead railway also
serves to handle the oxide for purifying.

The condensing, washing and scrubbing plant is of ample
capacity for the gas made. It consists of tower scrubbers, Livesey
washers and Carpenter reversible condensers. There are 12 purifi-
ers, the gas passing through six boxes in two streams. These boxes
are on the ground level and are emptied and filled by means of
conveyors in which the oxide is elevated to revivifying floors over-
head. The engine room contains four exhausters, and also hydrau-
lic and compressed air machinery for the charging machines, also
engines for operating the pumps in groups.

There are three holders on this site, with a total capacity of
2,450,000 cubic feet. The storage is insufficient for the gas made
at this plant, and the surplus is sent down under pressure to the
Old Kent Eoad works. There are three meters in the meter house
of ample capacity. There are carpenters' shops, blacksmiths'
shops, and machine shops in which they do all their own repairs
and assist in construction work. There is an institute consisting
of reading and meeting room for the workmen. There are of-
fices, laboratory, and general stores for the operation of the plant,
as well as consumers' complaint offices. There is also a cottage
for the resident foreman.

There are four main pipes leading from these works in addi-
tion to the pumping main to the Old Kent Road. The works oc-
cupy the entire plot of ground and there is no room for extension
without purchasing additional property.

The latest and largest gas plant of the company is that at
East Greenwich. The site of this works was purchased in 1881,
because of the rapidly increasing demand for gas in the 50 to 60
square miles which form the company's area of supply. The land
first acquired was 120 acres, but in 1900 Parliamentary powers
were obtained for a further purchase of about 130 acres. The
works are located at Blackwell Point, or a point of land surrounded
on two sides by the Eiver Thames at the eastern section of the
city. The installation provides for an individual capacity of sixty
million, and is so arranged that sections of five million each may
be added as necessary.

The present layout consists of five retort houses, about 485
feet long and 73 feet wide, with coal stores between each house,
each coal store having a capacity of about 6,500 tons. The retort
houses, with the exception of the fifth house, each contains three
stacks of 15 benches of retorts each, the four houses having a total

176 NATIONAL CIVIC FEDERATION.

of 3,600 mouthpieces. The fifth house has been partly filled by a
setting of twenty retorts to a bench of 13 inches in diameter each,
which are an experiment for obtaining better results in the manu-
facture of gas. These were not running at the time of investiga-
tion. No. 1 retort house has Arrol-Foulis hydraulic stoking ma-
chines, while Nos. 2, 3 and 4 retort houses have West's gas engine
driven charging and discharging machines.

The coal is unloaded from steamers and barges by a large
jetty or pier extending in the river, provided with traveling
cranes and Home grabs, which unload the steamers into continuous
overhead hoppers, under which railway cars run. These cars travel
inland over a main viaduct and run by means of spurs into the
coal stores between the retort houses, dumping the coal direct
without handling. A ship of 1,250 tons can be discharged in 7£
hours with this equipment. The coke is removed from the retort
houses at the southern end of the railroad tracks and small cars
that are hauled in and out by locomotives and distributed from
trestles over the open coke storage ground or loaded direct into
wagons or railway cars, as desired.

The condensers are 36-inch spiral pipe condensers, air-cooled,
reinforced by water condensers. The boilers, exhausters, pumps
and workshops are arranged in a line of buildings directly north of
the coal stores on the other side of the railway viaduct and con-
sist of twelve Beale exhausters, direct-driven and arranged in
line, so that they may reinforce each other. The gas passes through
the exhausters through batteries of Livesey washers, which are
worked in sets of threes. There are 12 tower scrubbers,
16 feet in diameter and 68 feet high. Thence the gas
goes to six sets of purifiers, four of which are charged with lime
and two with oxide of iron. Each purifier is 70 feet long, 30 feet
wide and 5 feet deep. From the purifiers the gas passes through
ten meters, each with a capacity of three and a half million cubic
feet. These meters are set in the ground in concrete tanks, to save
the expense of meter houses, and to preserve a uniform tempera-
ture of the meter. The tar and liquor tanks are arranged in con-
crete pits, under the main line of the railway viaduct, north of the
retort houses. The concrete walls of these tanks at the same time
support the viaduct structure. There is ample storage capacity
for both tar and ammoniacal liquor.

At these works there are complete carpenter and machine
shops, capable of handling all repairs and assisting generally in
the construction work of the plant. Provision is also made for
the accommodation of the workmen in the way of reading rooms,
locker rooms and bathing facilities.

There are two gas holders at the East Greenwich works. The
storage capacity is never intended to exceed forty million cubic
feet, as it is the intention of the company to eventually make the
Old Kent Eoad station the central distributing point and to pump
the gas from East Greenwich there. There are two holders now
at this plant, one of eight million cubic feet capacity and 250 feet

GAS ENGINEERING. 177

in diameter and 44 feet deep ; and the other of twelve million cubic
feet capacity, 300 feet in diameter and 32 feet deep — being the
largest holder at present in England. The gas is forced from this
station to Old Kent Road and other works by an installation of
centrifugal fans, operated by gas engines. It also supplies gas
direct to the Woolwich and adjoining districts. The object of
these fans is to increase the growing capacity of the main and
also to create a uniform pressure on the system, independent of
that thrown by the gas holders.

A new chemical works has been erected for the manufacture
of sulphate of ammonia and necessary sulphuric acid from the
spent oxide. This plant is so built as to be extended to always
equal the capacity for residuals in proportion to the amount of
coal gas manufactured.

The company has two small manufacturing plants, one located
at West Greenwich, at the mouth of the Deptford Creek. This
contains two small retort houses, one with filled incline and one
with horizontal retorts. This works has a capacity of four mil-
lion cubic feet, and is complete, with washers, scrubbers, condens-
ers and purifiers. It is rather cramped and probably will be
abandoned as extensions to the East Greenwich plant are made.
The plant is self-contained, with the exception that the holders are
several squares from the manufacturing station and are rather
well situated for convenient distribution to this district. The
plant should manufacture gas rather cheaply, but it would hardly
pay to rebuild and modernize it when the present machinery ends
its usefulness. The other property is at Bankside, on the south
side of the Thames, below Blackfriars Bridge. This plant is
a small coal gas plant, is rather congested, and has a capacity of
two million cubic feet. It is complete in itself.

Newcastle. The present gas works consist of Elswick, opened
in 1859; Eedheugh, in 1876, and the St. Anthony site, acquired
in 1898. The Elswick gas works are situated on the north side
of the Tyne and have a capacity of five million cubic feet daily.
The retort houses contain two parallel stacks of benches of 896
mouthpieces. They are 20 feet through retorts and the settings
are more or less antiquated and of inefficient type, and are to be
replaced in the course of the next few years. The coal is brought
into the works by a high level siding into the coal stores and stacked
without handling. The arrangement of the condensing, scrub-
bing and purifying plant is poor and rather unsystematic, and
there is practically no room for extension. The purifying boxes
are deficient in capacity to the extent of nearly 50 per cent., and
are of the twin type, set direct in the ground, and are filled and
discharged on the same level. The capacity of the scrubbing and
condensing plant is adequate.

The storage capacity of these works is very small, but the gas
made here is delivered to the various other holders of the system.
The chief engineer's office is situated at these works, as they are
the most central of the system. There is also a complete plant for

Vol. III.— 13.

178 NATIONAL CIVIC FEDERATION.

testing coal, as well as complete laboratory and workshop equip-
ment. A sulphate of ammonia plant is built at these works with
a capacity to deal with the liquor made at this place, and tar is
sold in bulk. Generally speaking this works is well situated, but
it has been completely outgrown and the producing capacity is more
likely to be reduced than increased. There is a possibility of the
land being purchased by adjacent industries. Part of the prop-
erty bordering on the river front is considerably lower than the
rest of the site, and is rented to a lumber company and used as a
storage yard. The area of this works is about 10 acres.

The Kedheugh works are situated in Gateshead on the south
side of the Tyne, about one mile from the center of the Newcastle
district. It covers an extent of about 25 acres and is the largest
manufacturing station. It has both railway and river connections,
although all coal is at present received by rail. The works con-
sist of four retort houses containing 1,562 mouthpieces. These
are arranged in 20 benches of 8's and 69 benches of 9's, all 20
feet through retorts of the full depth regenerative type. The
charging and discharging apparatus consists of West's compressed
air machines with the exception of No. 1 retort house which is
equipped with De Brewer's electric charging and discharging ma-
chine.

The coal is received in retort houses by high level railroad
sidings and dumped direct into coal stores, which are parallel to
the retorts, without handling. Crushing, elevating and conveying
machinery are generally installed. There is an installation of hot
coke conveyors, but the use of this has been dropped. The works
generally are divided into two sections, each section being equipped
with its own scrubbing, washing, and purifying plant, which is
ample in capacity and of the orthodox type. Purifiers are all on
the ground floor and are filled and emptied on the same level.
Lime is used for purification. The plant is equipped with repair
shops, fitting shops and a laboratory. The works generally are
pretty well covered with railway conections, so that material for
all equipment can be handled at direct points.

At this site there is also a complete carburetted water gas
plant with scrubbing and purifier plant and relief holder. There
are three water gas sets with a total capacity of about two million
cubic feet a day. There is also a chemical works for the manu-
facture of sulphate of ammonia of sufficient capacity to handle the
output of the plant, and in addition a Glaus sulphur recovery
plant. The tar is sold in bulk, being pumped direct to the con-
tractor's works.

There are five holders at these works with a total capacity of
about seven and three-quarter millions, any excess of gas being
sent to the five-million-foot holder at St. Anthony by means of
gas engine driven pushers through a 27-inch and 24-inch inde-
pendent pumping main, which also connects the Elswick works.
The general output of gas from this station crosses over the Eed-
hough Bridge (owned by a company partly controlled by the gas

GAS ENGINEERING. 179

company), and, with the main output of the Elswick plant is sup-
plied through a new governor house erected near the Elswick
works and delivered through nine governors to the general distri-
bution system. The scheme of distribution arranged by the engi-
neer is such that it enables the outlying districts to be supplied
with gas through mains which are not tapped en route, and con-
sequently allows consumers, whether near the gas works or other-
wise, to be amply supplied at a suitable pressure.

The St. Anthony site was acquired in 1898 and covers an
area of 68 acres. At present the only structure on the site is a
gas holder with a capacity of five million cubic feet. The com-
pany's engineer is engaged on the preparation of plans for a manu-
facturing plant to be erected on this land, and the works will be
erected in sections, the first of which is intended to be completed
by the time the present works are outgrown.

Sheffield. There are three gas works: Effingham Street,
Neepsend and Grimesthorpe, taking them in the order of their
age. Effingham Street has an area of five acres and a producing
capacity of about four million cubic feet of gas daily. One of the
drawbacks of the station is that it has no railroad connection, and
situated as it is in the heart of the city with improved property all
round, its capacity cannot be greatly increased.

The retort house contains twenty-two benches of 7's, direct
fired, and eleven benches of 8's, with regenerative furnaces. There
are eight benches of 8's now in course of construction with full
depth regenerators. The intention of the company is to do away
with all direct-fired settings, substituting regenerative settings in
their place. The retort houses are substantially built of gray stone,
and though at present the system of firing is by hand, the ques-
tion of installing charging and drawing machinery is under con-
sideration, the houses being sufficiently commodious to permit of
this without structural alterations. The present system of hand-
ling the coal is antiquated and costly. The condensing, scrubbing
and purifying apparatus is ample in capacity, and being of the
ordinary character does not call for any special mention. Both
lime and oxide are used for purifying purposes. The purifier
boxes are housed in substantial buildings. There are three gas
holders, with a total capacity of 2,275,000 cubic feet.

The Neepsend works have a capacity of nine and a half mil-
lion cubic feet per day. The works are situated in the northwest-
ern portion of the city about one mile from the center. The site
is completely occupied with buildings and plant, the only spare
land being a plot across the road, which can only be utilized for
gas storage purposes. The coal is brought in by a high level rail-
road siding, and is dumped direct into the coal stores and stacked
without handling. The retort houses are three in number. The
first two houses are in one continuous line, running parallel with
the railway. They contain twenty-seven benches of 7's and forty-
six benches of 8's. The retorts are throughs and are heated on
the regenerative system.

180 NATIONAL CIVIC FEDERATION.

They are completely fitted up with machinery for crushing,
elevating and conveying the coal. There are no particular coke-
handling appliances, but the majority of the coke is crushed sep-
arately for the domestic trade. The works is very deficient in coke-
storage capacity. At this plant the cooling, exhausting, scrubbing
and purifying plant is equal to the producing power of the works.
Oxide is used in the purifier boxes, lime in the catch boxes. Some
of the purifier boxes are erected in substantial enclosed buildings,
others in open buildings. There are five gas holders, four with a
capacity of one and a half million cubic feet each, and one with a
capacity of about eight millions, or a total working capacity of
fourteen million cubic feet. Particular attention is drawn to the
well equipped workshop and stores, which are a noticeable feature
of this station.

The Grimesthorpe works are situated in the eastern portion
of the city about 2£ miles from the center of the town, the erec-
tion of which was begun in 1896. It has an area of about 14
acres. Its capacity is 5,000,000, but will ultimately be 10,000,000
cubic feet of gas daily. The coal is brought in by railroad siding
to the gable ends of the coal store. The wagons are emptied by
hydraulic power into coal hoppers. Prom this point the coal is
elevated, conveyed and distributed to any point in the coal store.
The retort house contains 30 benches of 10's, with 20-foot through
retorts, and so arranged that its capacity can be increased by sim-
ply adding to its length, the coal storage being increased in a like
manner. The retorts are charged and discharged by 2 sets of
West's compressed air charging and discharging machines, which
are loaded automatically from hoppers. The coke discharged
from the retorts drops into catchers where it is quenched and
further dropped into steel wagons, which are hauled by rope haul-
age to a steel trestle outside the retort house, and automatically
dumped into the coke crusher or into the coke storage. The ar-
rangements for removing the coke from the retort houses, and
when outside preparing it for distribution, are particularly good.

The condensers have a capacity of five million cubic feet.
The tower scrubbers a capacity of ten million cubic feet. The
rotary scrubbers a capacity of five million. The tar and liquor
tanks are adequate for ten million. The engine and exhauster,
meter house and shops are built ready to -receive plant of a ca-
pacity equal to ten million, though at present the plant installed
therein is of five million capacity. The purifiers with a capacity
of five million cubic feet are housed in substantial buildings, and
are capable of being readily duplicated. There are two gas hold-
ers with a capacity of 1,800,000 cubic feet each, or a combined ca-
pacity of 3,600,000 cubic feet. The storage capacity is appar-
ently less than it should be, but the probable intention of the
company is to make Grimesthorpe a manufacturing station more
than a storage station, and any future extension of the storage will
probably be adjacent to the Neepsend works. At these works
they have a benzol enriching plant. There is a fully equipped

GAS ENGINEERING. 181

workshop with all the tools and machines necessary for carrying
out repairs to the plant.

At this station there is a chemical works for the manufacture
of ammonia sulphate and burning from all the stations, the am-
moniacal liquor being pumped direct from the Neepsend and
Effingham works. All the tar is sold under contract. The whole
of the works is enclosed by a boundary wall or road embankment,
two small lodges being built at the entrances.

DISTRIBUTION SYSTEMS.

Birmingham. The distribution system of Birmingham con-
sists principally of cast iron mains with bell and spigot joints and
some few turned and bored joints. The sizes were obtained in
detail. The average length of services was given as 33£ feet,
which is considerably longer than the services of any of the other
undertakings, but this is probably due to the fact that it is not
generally the practice in Birmingham to lay two mains in a street.

The distribution records of Birmingham were in very good
shape, the undertaking having two sets of maps, one of which was
a large sectional map showing the mains in detail. The shops
connected with the distribution department are rather small for
much of the work, but this is accounted for by the fact that much
of the work of main laying, service laying and house piping is
done by contract. Birmingham meters are generally of the wet
type, including prepayments, which is rather unusual. Some few
consumers own their own meters.

Glasgow. The system consists of about 900 miles of pipes,
varying in sizes from 48-inch down and consisting of cast iron
pipe with turned and bored joints. The exact sizes of these mains
were not obtained in detail, as apparently no lists of them were
made up. The mains are generally laid under the foot paths, and
there being two mains to a street the services were averaging only
about 15 feet. These services were of wrought iron, generally laid
in wooden troughs and filled with pitch. The meters were prin-
cipally of the dry type, and only during the last two years has any
effort been made to extend the prepayment system.

Manchester. The sizes of the mains were obtained in exact
detail, as the department publishes annually a summary statement
or description of the works and property. They are cast iron with
turned and bored joints and in many cases substantially laid on
concrete. This seems rather a costly and extravagant method,
but if reference is made to the percentage of gas unaccounted for,
it will be seen that the result justifies the expenditure. The un-
accounted for gas is lower in Manchester than in any of the un-
dertakings examined. The street main records consisted of maps
that were in very good shape and showed the location of the mains
in more or less detail. The services are of extra heavy steam
weight piping and are laid generally in wooden troughs and filled.
They are tested to 200 Ibs. pressure.

182 NATIONAL CIVIC FEDERATION.

The distribution system is not under the supervision of the
engineer, but under a separate department which reports to the
general superintendent. From the distribution costs and charges,
it is apparent that this department is not run as economically as
the works department. The practice at Manchester to allow
plumbers and private contractors to set the city's meters, the city
paying the plumber and contractor for the work done, is unusual,
and is not consistent with the best practice.

The meters in Manchester are generally of the wet type, al-
though all types and assortments were found in use.

Leicester. The mains are of cast iron pipe with lead joints, laid
generally under the foot paths, all the principal streets containing
two mains, one on each side. These mains vary in size from 36-
inch to 3-inch. The exact detail of mains at first was not obtain-
able, but afterwards was given to us by the engineer, who sum-
marized all but the 4-inch and 5-inch pipes which were grouped.
These were individually measured up from the street main maps,
which were laid out in sections, showed the size and location of
the mains in considerable detail, and apparently were in good
shape.

All distribution work in Leicester is under the direction of
the engineer. The services are all of wrought iron and are gener-
ally covered with coal tar, the length of the service being approxi-
mately 12 feet. The meters are generally of the dry type, although
a considerable number of the wet meters are in use.

London. The mains of the South Metropolitan Company
are from 48 inches down, exclusive of large pumping mains, con-
necting the various works. These mains are given in exact detail
as to sizes. There are sectional maps of the city showing the loca-
tion of the mains. In the principal streets there are two mains to
a street, although this practice is not generally followed out
throughout the district. The services average from 20 to 25 feet
in length, and are of wrought iron pipe, generally coated with coal
tar. There are 302,625 meters in use, about two-thirds of which
are of the dry type. About 9,000 consumers own their own meters.

Newcastle. The mains vary in size from 36-inch downward.
They are cast iron pipe with lead joints. The records of these
mains are not in exact detail, as the company is very old and the
original records were not kept as carefully as they should have
been, although within the last seven years complete maps and
data have been recorded. The street main maps were sectional
and showed the location of mains and services in considerable detail
as far as they were known.

The services are wrought iron, laid in wooden troughs, filled
with pitch. They average 18 feet in length, as but one main is
laid in a street, with the exception of the principal streets of the
town, where they are laid on each side. The meters are all of the
dry type.

Sheffield. The mains vary in sizes from 48-inch down to 2-
inch. There is a high pressure system of pumping mains con-

GAS ENGINEERING.

183

necting the various works and also district governors. The city is
an exceptionally difficult one in which to distribute gas, there being
differences of nearly 700 feet in elevation within the area supplied,
but a most desirable system of pressures is maintained by means of
the high pressure distribution system and individual district gov-
ernors that isolate and govern uniformly the elevated districts.

The distribution records are in excellent shape. There are sec-
tional street main maps showing the location of all mains and large
services as well as individual records of extensions, showing the
exact lengths and sizes of all the mains in the ground. The mains
are generally laid under the foot paths, and as all the principal
streets have two lines, the average length of services is approxi-
mately 10 feet. Owing to the peculiar subsoil of Sheffield, which
consists nearly entirely of ashes and cinders from the iron works,
wrought iron pipe is found, in many cases, not to last more than
a few years, and, owing to this fact, it has been the general practice
in Sheffield to lay lead services. This work has to be done care-
fully, and the connections to the mains are made by means of brass
ferrules.

The company has adopted a compensating wet meter with cast
iron case, has very few dry meters in use and is in shape to man-
ufacture its own meters. The manufacturing and distribution de-
partments are entirely in the hands of one engineer.
H 5. Holders and mains at end of year.

Number Total

Towns.

tumour Capacity Mileage of
PTa7d?r* in M- Mains.

"*' Cubic Ft.

Birmingham

, , ,20 39,777 740

Glasgow

18 44,370 900 (Est.)

Manchester

20 24,500 858J

Leicester

8 10,200 251|

London-So. M ,

21 48,483 1,162

Newcastle

9 14,931 648

Sheffield

11 21,617 538 2/3

H 6. Meters and services at end

of year.

(2)

(3) (4) (5) (6)

No. of N f Averaff«

fJ^ftttyn 9

No. of

prepay- Percent. '^ length

JL t/Cf/t'o.

Meters.

ment (3) of (2). *~8 approx.

meters. approx. ff

Birmingham

109,865

36,376 33.1 120,000 33£

Glasgow

238,038

10,236 4.3 Note1 15

Manchester

152,1652

47,865 31.4 " 18

Leicester

53,932

29,145 54.0 " 12

London-So. M

293,731

190,640 64.9 " 20-25

Newcastle

81,534

35,790 43.9 " 18

Sheffield

81,926

None " 10

1 No exact records were kept, but the number is estimated as
equivalent to the number of meters (column No. 2).

2 Of these, 148,529 were owned by the municipality and 3,636 by
consumers.

184 NATIONAL CIVIC FEDERATION.

H 7. Were all services metered?

Yes, except public lamps and in Glasgow some stair jets.

H 8. Apparatus rented.

Number of Number of

Towns. Stoves Heaters

Bented.* Rente*.

Birmingham ................. 30,848 ----

Glasgow ..................... 29,347

Manchester .................. 23,8622 ----

Leicester .................... 43,283 3,000

London-So. M ................ 231,807 20,500

Newcastle ................... 43,256 459

Sheffield ..................... 4,973

1 These figures include cookers given with prepayment meters,
except in Sheffield, where there are no prepayment meters In use.

2 These are not rented but furnished free.

GAS ENGINEERING.

185

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as strictly accurate, but approxi-
mately as correct as could be ascertained by superficial examination.

2 Land valuations in general were exceedingly difficult to obtain
and would have necessitated in many cases the spending of much time
or employing local expert advice to determine them exactly. So in
many cases the values given are from published accounts or as sub-
mitted by the general manager of the undertakings.

* Teams, tools, shop equipment, etc. .

186 NATIONAL CIVIC FEDERATION.

H 10. Give amount of gas made and amount sent out in M. cu. ft.

Amount Amount
Towns. made. consumed

Birmingham 6,636,848 6,636,848

Glasgow 6,449,539 6,449,530

Manchester 5,008,544 5,008,544

Leicester 1,938,655 1,937,676

London-So. M 12,859,712 12,859,712

Newcastle 3,254,383 3,254,383

Sheffield 2,936,137 2,933,820

H 11. Give amount of gas bought, sold to other gas undertakings

and supplied free.
None in any instance.

H 12. Gas consumed during year in M. cu. ft.

Gas sold for Gas sold to Gas used Gas unae-

Towns. public private at works counted for Toiid.

lighting, consumers, and offices, (leakage).

Birmingham . . . 302,415 5,889,939 101,456 343,038 6,636,848

Glasgow 478,466 5,343,005 66,463 561,605 6,449,539

Manchester .... 398,493 4,382,017 83,813 144,221 5,008,544

Leicester 96,824 1,738,042 16,276 86,534 1,937,676

London-So. M... 409,312 11,733,411 151,670 565,319 12,859,712

Newcastle 224,626 2,663,178 39,371 327,208 3,254,383

Sheffield 195,955 2,600,942 33,941 102,982 2,933,820

The amount used for power was given in the following places :
Birmingham, 968,703 M. cu. ft; Manchester, 386,982; Leicester,
243,412 ; Sheffield, 228,607. In Manchester 350,000 were used for
cooking and heating and 388,909 through prepayment meters.

H 13. Maximum and minimum output.

Daily capacity Maximum Minimum

Towns of plant, day's output day '» output

M. cu.ft. M. cu.ft. M. cu.ft.

Birmingham 43,250 37,057

Glasgow 41,000 37,500 6,000

Manchester 25,400 26,819 5,028

Leicester 14,000 8,185 2,295

London-So. M 66,000 53,581 19,199

Newcastle 16,500 15,505 4,043

Sheffield 18,000 14,764 2,616

GAS ENGINEERING. 187

H 14. Average consumption per annum, exclusive of public
lighting.

Population Cubic ft. per Q ,. ff M. cu.ft.

Towns. of areas consumer Mv^tn * P61" m^e °J

of supply. (meter).1 mains.3

Birmingham 800,000 53,611 7,740 8,363

Glasgow 1,000,000 22,446 5,821 6,468

Manchester 750,000 28,798 6,374 5,570

Leicester 250,000 32,226 7,339 7,296

London-So. M. 1,500,000 39,946 8,095 10,450

Newcastle 520,000 32,663 5,554 4,457

Sheffield 470,000 31,747 5,951 5,192

H 15. Were consumers' meters removed and tested at regular in-
tervals? How often?

Birmingham, Glasgow, Manchester. No; only removed when
found defective, or at consumer's request.

Leicester. No; only on complaint or suspicion from six
weeks' inspection.

London-So. M. No; tested only when brought in.

Newcastle. No; only removed when found defective or on
consumer's request.

Sheffield. Dry meters have been tested every three years, one-
third annually. Most of those in use are cast-iron wet meters with
compensating water chamber and are not tested, as testing is not
considered necessary so long as the water level is kept right and
the meter is in working order.

H 16. If a consumer believed that the meter was fast, how might
he have it tested?

In all cases, if the meter proved to be correct within certain
narrow limits the consumer paid the testing fee; if incorrect the
department or company paid the fee and rebated any overcharge.

Birmingham. By applying to the department. If the city
test was not satisfactory the consumer might have a test made by
the official meter tester.

Glasgow. By notice at office and payment of testing fee.

Manchester. By the gas department or by official tester.

Leicester. Consumer might complain and insist on meter
being tested. The department tested or sent the meter to the
government inspector at Nottingham ; when test was made an official
certificate was returned. Meters were sometimes tested in place
by connecting them to six governed and tested burners. This was
done on large meters when they were suspected of being wrong by
the department.

1 Divide the amount sold to consumers, given under H 12, by
the number of meters, given under H 6.

2 Divide the amount sold to consumers and for public lighting by
the population of the areas of supply.

3 Divide the ampunt sold to consumers and for public lighting
by the number of miles of mains, given under H 5.

188 NATIONAL CIVIC FEDERATION.

London-So. M. Bj- the company, or on application to the
London connty council.

Newcastle. The company tested upon demand. If the con-
sumer was not satisfied he might call in the city meter tester.

Sheffield. By giving notice to the company to discontinue the
meter, the consumer might have it tested by the official specially
appointed by the municipality to test meters.
H 17. Were there records of proofs of meters as removed?

Birmingham, Glasgow, Manchester. Yes; records of meter
tests and certificates of official inspectors kept on file.

Leicester. Yes; records entered in a book in the shop and
certificates of government inspector filed. No individual records
of each meter were kept.

London-So. M. All these records were kept by the London
county council, but the company kept the records of its own testa
in books and card systems. The certificates issued by the testers
of the London county council were also filed.

Newcastle. Yes; in detail. Eecords of all tests and of the
city tester were kept by the company.

Sheffield. A record of all tests was kept, and the company
can trace each individual meter. Statements were taken whenever
a meter was seen. Official certificates were filed.

H 18. What means were being taken to extend use of gas to se-
cure new consumers, and to instruct consumers in the use
of cooking, heating and other appliances?
Nor* — In this connection, see data given tinder inquiries I 2-5.

Birmingham. No canvassers, but there was a display room in
the main gas office, where instructions were given if desired.

Glasgow. No convassers, but there were several show rooms
in different parts of the city, where instructions were given if de-
sired.

Manchester. No canvassers, but a show room was maintained
in the centre of the city, where instructions were given if desired.
The department loaned stoves and meters to consumers free
of cost and made no charge for fixing them. The work was done
bv a private contractor, and he was paid by the gas department.
The fixing of meters by private contractors was unusual. In our
opinion the arrangement was open to objection and the work should
be done by the gas department's own employees.

Leicester. Three canvassers and a show room of stoves and
fixtures, where instructions were given when appliances were pur-
chased or rented. Printed instructions were also given on cards,
and the stove inspector gave instructions on his rounds when re-
quested or when sent for.

London-So. M. Canvassers, printed circulars and show rooms
through the district, where consumers were taught to use appliances
when purchased or rented.

GAS ENGINEERING. 189

Newcastle. Canvassers, advertising circulars, postal cards
and a large exhibition for three weeks was held in 1902, and another
in 1905. Instructions were given in show rooms, and young women
gave demonstrations in various parts of the city. In special cases
an experienced woman was sent to the consumer's house.

Sheffield. Canvassers, advertising, elaborate show room of
appliances and stoves and cooking lectures. Inspectors called if
desired. Stoves were generally sold and not rented.
H 19. Were cooking and other appliances carried in stock for
sale or rent? (See also inquiries I. 2-5.)

Birmingham. Yes, cooking stoves in small quantities.

Glasgow. Yes, and placed at from 20 to 25 per cent, profit
on cost plus fixing charges.

Manchester. Yes, for sale or loan, but no rent was charged.

Leicester. Yes, there was a good supply.

London-So. M. Yes.

Newcastle. Yes, for hire, hire-purchase or sale.

Sheffield. Yes, very complete.

QUALITY OF GAS.

H 20. If atmospheric air was mixed with gas, state to what ex-
tent?

Birmingham. In small quantities for purification purposes.

Glasgow, Manchester. None.

Leicester. About 1 per cent, was admitted to foul mains,
drawn in by exhauster and metered.

London-So. M., Newcastle. None.

Sheffield. About ^ to f per cent, for purification purposes.

H 21. State fully the methods of testing candle power during
the past year, giving place, time, frequency, distance from
works, how published, etc.

Birmingham. The method was that adopted by the London
gas referees in 1905. Gas was tested at the works at 9 A. M. and
4 P. M., at the official station in Sheep street, about one mile from
the works, once daily at no stated time. Tests were entered daily
in special books.

Glasgow. In addition to the test made by the works superin-
tendent the gas examiner made tests at the manufacturing stations
three times a week and reported to the municipality every fortnight,
a copy of the report being sent to the engineer of the gas depart-
ment.

Manchester. The chemist at each works tested three times a
day but no test was made up-town. The chemists operated inde-
pendently of the works managers.

Leicester. Tests were made at the works by the superin-
tendents once each day and any time of the day. There was a

190 NATIONAL CIVIC FEDERATION.

separate bar photometer for the water gas plant. Gas was also
tested at the main gas office once each day by one of the office
officials. This office was 1.4 miles from one works and .9 of a mile
from the other. The candle power was read against a 2 c. p. Pent-
ane lamp at the Aylestone works. At Belgrave Gate works candle-
power was read against candles.

An office official, Mr. W. Pingreff, went to each works one
day each week, no fixed day, to check work. The office records
showed that candle power was not read regularly. Some Sundays
were omitted, and from three to eight other days each month
showed no readings. The record was kept in the Illuminating
Book, but only the results were recorded. No details of calculations
were given. Gas was burned in an Argand burner about six feet
per hour, corrected to five feet.

London-So. M. There were six testing stations in different
parts of the distribution system. Three tests were made at each
station daily by the examiners appointed by the London county
council. The farthest testing station was four miles from the
works and the nearest one mile — average, 1.64 miles.

Newcastle. The c. p. was tested at each works against the
candles, Pentane lamp and Methven screen, secondary standard.
The city inspector tested c. p. with the photometer at each works.
Kecords were sent to the city authorities and copies to the company.
The reading was made weekly at any time.

Sheffield. Tests were made in the centre of the city at any
time during day or night, about twelve times a month, by the
official tester appointed by the city council. The maximum distance
from the works was 1.25 miles. The c. p. was also read daily in
the centre of the city by the company's chemists, and at each
works by the superintendent, over 2,300 tests yearly. Candles were
used at each test.

H 22. Summarize results of such examinations.

Birmingham. The average c. p. of the mixed gas for the
year 1904-5 was 16.5 at the Saltley works, 16.16 at the Nechells
works, 16.33 at the Windsor street works, 16.32 at the Swan Village
works, 16.29 at the Adderley street works and 15.89 at the official
station in Sheep street.

Glasgow. The average c. p. reported by the gas examiner
for 1904-5 was 20.25 at the works, while the tests of the em-
ployees was 20.5 c. p. at the works.

Manchester. The average c. p. for the last five years, as given
in the chemists' official report, was 18.97 for 1901, 18.54 for 1902,
18.25 for 1903, 17.80 for 1904 and 17.04 for 1905.

Leicester. The reports made to the engineer show that the
average c. p. at the works during 1905 was 14.36.

The office records for 1905 were: January, 14.03; February,
14.14; March, 14.16; April, 14.15; May, 14.26; June, 14.30; July,
14.22; August, 14.17; September, 14.15; October, 14.04; Novem-

GAS ENGINEERING. 191

ber, 14.17; December, 14.10 — average, 14.16. A reading was made
by Mr. Klumpp at the office and candle power found to be about
13.4 upon March 21, 1906, at 5 P. M.

London-So. M. The average c. p. of over 6,000 readings for
1905 was 14.5.

Newcastle' The c. p. as officially tested averaged 16.18 for
1904 and 16.20 for 1905. The records showed no reading under
Id c. p.

Sheffield. The average c. p. of some 2,300 readings in 1895
was 18.00; 1896, 17.73; 1897, 17.77; 1898, 17.84; 1899, 17.50;
1900, 17.41; 2,119 tests in 1901, 17.34; 2,249 tests in 1902, 17.41;
2,268 tests in 1903, 17.37; 2,339 tests in 1904, 17.36; 2,314 tests
in 1905, 17.37. The c. p. read by J. B. Klumpp at Lady's Bridge
station with Chemist J. S. Sheard was 17.52 candles. The official
test for 1905 was 17.08 c. p. at Lady's Bridge testing station.
H 23. Kind of photometer used and method of testing.

Birmingham. Table photometer; London gas referees' test.

Glasgow. Bar photometer with standard candles.

Manchester. Bar photometer, 10-candle Pentane standard.

Leicester. Bar photometer; 2 c. p. Pentane and candles.

London-So. M. Table photometers ; London referees' instruc-
tions.

Newcastle. Bar photometer; candles by official; Pentane and
Methven secondary.

Sheffield. Sugg Sethby bar photometer with candles and gas
at five feet per hour.
H 24. What was the c. p. at the works as shown by the records ?

Birmingham 16 . 32

Glasgow 18.17

Manchester 17.04

Leicester 14 . 36

London-So. M 14.50

Newcastle 16 .20

Sheffield 17.37

H 25. Did the candle power fluctuate?

Birmingham. Not materially, according to the engineer.

Glasgow. Slightly.

Manchester. Ean steadily. Was reinforced when necessary
by carburetted water gas and benzol.

Leicester. Records generally read from 14 to 14.30.

London-So. M. No, according to the engineer.

Newcastle. Very little, according to the records.

Sheffield. Ran very steadily. Reinforced with benzol when
necessary.
H 26. What was the average calorific value?

Birmingham. This return was not published.

192 NATIONAL CIVIC FEDERATION.

Glasgow, Read occasionally and reported as about 650
B. T. U.

Manchester. From 600 to 650 B. T. U. gross. Readings
were made daily with Junker's calorimeter at each works.

Leicester. From 560 to 580; average about §70. Headings
were made daily at both works with Junker's calorimeter.

London-So. M. 595 B. T. U. gross.

Newcastle. Not given.

Sheffield. The average daily tests were about 600 B. T. U.
H 27. What was the average purity?

Birmingham. Free from sulphuretted hydrogen.

Glasgow. Amount of impurities within statutory require-
ments.

Manchester. Clean, purified with oxide.

Leicester. Clean as regards H«S and NH«. No attempt
to take out C0= or other sulphur compounds other than EkS.

London-So. M. Clean under referee's tests.

Newcastle. Free from CO and H*S; 10 grains of CS».

Sheffield. Sulphuretted hydrogen, none ; ammonia, about .20
grains and CO about 1 per cent.
H 28. How was it tested for purity?

Birmingham. For sulphuretted hydrogen — the only test re-
quired by the Act of Parliament.

Glasgow. Gas supplied free of EkS. No official test.

Manchester. London referees' test.

Leicester. Tested for ILS and NHs continually at labora-
tory and engine room; at outlet of purifiers for EkS; for naph-
thaline, with picric acid continually at both works.

London-So. M. Eeferees' tests.

Newcastle. Regular Parliamentary tests for sulphur com-
pounds.

Sheffield. Continuously with lead acetate paper and tumeric
paper by official in photometer room at centre of town; also con-
tinuously at works office, and for ILS at outlet of purifiers.
H 29. Did the plant employ a chemist and own a chemical
laboratory ?

Birmingham. A chief chemist and twelve assistant chemists
were employed by the several laboratories. These chemical labora-
tories are very complete.

Glasgow, Manchester, Leicester. At each works there was a
laboratory and chemist.

London-So. M., Newcastle. There was a chemist and a labora-
tory at each works.

Sheffield. One chief chemist and four assistants; one main
laboratory and a working laboratory at each works.

GAS ENGINEERING. 193

H 30. Was there any record of any analyses of materials?

All works had complete records of all analyses.
H 31. Were any engineering tests or experiments being carried
on?

Birmingham. Yes, distillation and coke conveying tests.

Glasgow. Yes, including records of coal testing.

Manchester. Yes, coal distillation tests in model gas works
at Bradford Koad.

Leicester. Yes, coal distillation tests. Plant was complete
but on a rather small scale ; .001 of a ton was used in each charge.

Companies. Continued coal distillation tests.

PRESSURE.

H 32. State how pressure was measured and recorded.

Birmingham. Pressures were taken at fifteen governor out-
lets by recording gauges, and at three offices, one in town, one at
Sutton and one at Wednesbury. Gauges were also located regu-
larly at the lowest pressure point during the time of maximum
consumption.

Glasgow. By recording pressure registers at the works in each
governor outlet, and in various parts of the city by portable gauges
when it is desired to find the pressures.

Manchester. By recording gauges on all station governors;
periodical tests were made by means of portable recording reg-
isters.

Leicester. By recording gauges in governor houses and up-
town office — not changed on Sunday. Pressures taken about town
to locate low pressure.

London-So. M. By recording gauges on outlets of governors
and by portable gauges in different parts of district, taken out by
inspectors at time of maximum consumption.

Newcastle. By recording gauges on every governor outlet —
thirteen governors, viz., nine at Central governor station, one at
Eedheugh, two in town and one at St. Anthony — and by fourteen
portable gauges which take pressures all over at time of maximum
consumption.

Sheffield. With pressure recording gauges at outlet of each
works governor, at district governor and central office; inlet and
outlet pressures taken. As the city is very hilly differences of
nearly 700' occur within the district supplied. A most admirable
system of pressure was maintained. There were seven governors
at the three works supplying different districts, besides six district
governors about the city separating the distribution system in dif-
ferent elevations. These governors were supplied by a high
pressure main connecting all works, which may be used as a pump-
ing main between works. Eecording gauges were on inlet and
outlet of governors.

Vol. ill.— 14.

194 NATIONAL CIVIC FEDERATION.

H 33. Summarize records for past year.

Birmingham. Engineer stated that pressure was generally
satisfactory.

Glasgow. In the trunk mains the pressure varied from 74 to
18 tenths. There were both daily and yearly variations. Pressure
was greatest at 10 P. M. and least at 3 P. M.

Manchester. Engineer stated that pressure was ample.

Leicester. The records were not seen, but the engineer stated
that pressure was maintained at the office 30 tenths at night, 20
tenths in the day and about 15 tenths from midnight till morning.
High pressure mains to outlying districts were kept from 50 to 60
tenths by a DeLaval-Pusher turbine on Sturtevant blower.

London-So. M. Engineer stated that pressure was generally
satisfactory.

Newcastle. Records for the past year show that all districts
had sufficient pressure maintained at about 20 tenths on con-
sumers' mains. There were very few consumers on trunk or pump-
ing mains, and they had individual governors.

Sheffield. General pressure book was examined; pressure
satisfactory. Entries were made daily from the recording gauge
charts, showing pressures at all the principal hours of the day.
The pressure may be ascertained for any hour or place in the entire
city for the past year.
H 34. Were pressures fairly uniform?

Birmingham. Said to be reasonably uniform, and from the
records seen this was apparently so.

Glasgow, Manchester. Yes, according to the engineer.

Leicester. The charts seen were uniform.

London-So. M., Sheffield. Yes, according to the engineer.

Newcastle. They were well maintainecl.
H 35. Pressure recorded for the past year in tenths of an inch.

The following table gives the pressure readings at various
points in the different systems, some at the works, some on trunk
mains and others at extreme ends of the system.

Difference

Towns. Hiffhett. Lowest, between day

and night.

Birmingham 42 6 8-20 10-501 15-20

Glasgow 742 18 Note3 (?) 15-20

Manchester 40 12 15 20-40 15-20

Leicester (?) (?) 15 about 30 20-30

London-So. M 50 18 20 45 25

Newcastle 55* 25 (?) 30-50 20-30

Sheffield 54 13 15-305 about 22 about 20

1 Rather difficult to answer. a Trunk mains.

8 Night sometimes double the day.

4 At works. B At governors.

GAS ENGINEERING. 195

H 36. Were complaints numerous as to pressure?

The engineer of each plant stated that there were no com-
plaints about pressure.

H 37. Were there complaints about interruption of service?

The engineer of each plant stated that there were none. The
engineer of Birmingham reported some due to naphthalene.

H 38. Has the gas supply ever been cut off from the city? De-
scribe instances.

Birmingham, Glasgow, Leicester. Never, according to the
engineer of each plant.

Manchester. The gas supply has never been cut off from the
city, but during December, 1904, when there was a week of heavy
fog, when pressure was reduced and some sections of street lamps
were not lighted.

London-So. M. The Woolwich district was once in darkness
due to closing of a valve by mistake.

Newcastle. Never, according to the engineer.

Sheffield. Supply was once partly cut off in certain districts.
A man once closed all gas holder outlets at one works. The com-
pany has now installed safety governors that automatically throw
on pressure through separate inlets when pressure falls below cer-
tain points. ,

EXTENSIONS.

H 39. What factors have determined the extent and location of

extensions ?

Birmingham, Glasgow. Demand.
Manchester, Leicester. Commercial reasons.
London-So. M Public demand.

Newcastle. Commercial reasons and business in view and
lamps ordered by the city.

Sheffield Judgment of manager and engineer, supported by
the board of directors on large improvements.

H 40. Was the built-up area well served, so that all citizens
might use the service?

Birmingham. Yes; only very few sections were not supplied.

Glasgow. Yes; apparently all districts were served.

Manchester. Yes, according to the superintendent.

Leicester. Yes; gas mains are in practically every street.

London-So. M., Newcastle. Yes, according to the engineer.

Sheffield. Yes, judging from the maps and main records.
H 41. Has the policy in respect to extensions been liberal?

Birmingham, Glasgow, Manchester. Yes, according to per-
sons in charge.

Leicester. Very.

196 NATIONAL CIVIC FEDERATION.

London-So. M.t Newcastle. Yes, according to the engineer.
Sheffield. Yes; apparently very liberal.

H 42. Total length of extensions during the past year.

Birmingham 21.9 miles

Glasgow 30.25 "

Manchester 15.2

Leicester 7.5

London-So. M 30

Newcastle 34

Sheffield 10.04 "

H 43. Have the citizens of any section petitioned for extension
to their district within the last five years ?

Birmingham. No; the department always tried to anticipate
requirements.

Glasgow. People dwelling in isolated districts within the area
of supply have petitioned.

Manchester. The city extended its boundaries, taking in a
district supplied by the Stretford Gas Company, whose rights in
that district the city purchased on petition and by agreement.

Leicester. Not in the borough, but outlying districts have
petitioned and many are being supplied.

London-So. M. No, according to the engineer.

Newcastle. In outlying districts only.

Sheffield. No important instances.

H 44. As between several sections petitioning at one time, how
were extensions determined, and in what order?

Birmingham, Glasgow, Manchester. No such situation has
arisen.

Leicester. In order of receipt, according to the engineer.

London-So. M. This has never occurred, but if it did the
engineer says that the extensions would proceed simultaneously.

Newcastle, Sheffield. Such a condition has never occurred.
H 45.. Were extensions made promptly when there was a de-
mand?

Birmingham, Manchester, Leicester. Yes, according to offi-
cials.

Glasgow. Yes, if inside area of supply and near mains.

London-So. M., Sheffield. Yes, according to company officials.

Newcastle. Especially in recent years when there has been
heavy electric competition.
H 46. Was every applicant for service able to get it promptly ?

Birmingham. Yes, within ten days if a gas main was in the
street.

Glasgow, Manchester, Leicester. Yes, according to officials.

Companies. Yes, according to engineers.

GAS ENGINEERING. 197

H 47. Has the necessity for passage of an ordinance ever caused

delay in extending the service?
No such instances could be found in any case.

H 48. Has service been extended in advance of the demand in
order to stimulate the . growth of a district, or has it
awaited demand?

Birmingham. Both, according to the secretary of department.

Glasgow, Manchester. It has awaited demand.

Leicester. It has awaited demand, but a supply has generally
been given soon after houses were built.

London-So. M. Service has been extended in advance in some
cases, according to the engineer.

Newcastle. Many times; extensions have anticipated demand
in order to secure business.

Sheffield. It has awaited demand — the general practice in
England.

H 49. Was the department free to use its judgment about ex-
tensions, or was an ordinance required authorizing the
extensions ?
The officers of the department or the company may exercise.

their own judgment as long as they keep within the area of supply

authorized by Parliament.

H 50. May service be extended to suburban sections not within
the city limits?

Municipalities. Service may be extended to any portion of
the area of supply, which includes in each instance areas beyond
the city limits. In Manchester and Leicester extensions have been
made beyond the area of supply, and Parliamentary authority has
been obtained later. In no case has it been refused.

London-So. M. The company's area is defined by Act of
Parliament, but there is nothing to stop it from extending its
operations outside the defined area provided it does not enter
another company's area, and in such case it would simply be in
the position of a non-statutory company and without the protec-
tion of the general acts.

Newcastle, Sheffield. Service may be extended anywhere
within the area authorized by Act of Parliament.

STREET WORK.

H 51. Was street work done by direct employment or contract?

Birmingham. By contract; material was purchased by the
city but the work was done by private contractors.

Glasgow. Both.

Manchester, Leicester. Direct employment.

Companies. Direct employment.

198 NATIONAL CIVIC FEDERATION.

H 52. Was the work done by contract properly inspected?

Birmingham, Glasgow. Yes, according to officials.

Manchester, Leicester. No contracts.

Companies. No contracts.
H 53. Was the work performed in an efficient manner?

Yes, in each instance, according to persons in charge.

H 54. Was the street service promptly restored after openings
were made?

Birmingham, Manchester. Yes, according to officials.

Glasgow. Yes, temporarily, then permanently by paving de-
partment.

Leicester. Yes, by the street paving department, upon notice.

London-So. M., Sheffield. Yes, according to the engineers.

Newcastle. Yes, by the company temporarily, and ultimately
by the city, and charged to the company.

H 55. Was water used in puddling ditches?

Municipalities. Occasionally, according to the soil.

London-So. M. Occasionally, according to the engineer.

Newcastle, Sheffield. No.
H 56. Were open trenches and obstructions properly guarded?

Municipalities. Yes, according to department officials.

London-So. M., Newcastle. Yes, according to company offi-
cials.

Sheffield. Yes ; a watchman guards them all night.
H 57. How were sunken trenches taken care of?

Birmingham. They were regularly watched and repaired,
and charged to gas department, according to engineer.

Glasgow. They were properly fenced at night, lamps lighted
and watchman placed on guard. Eepairs were made by the street
department and charged to the gas department.

Manchester. The Highway Committee repaired and charged
to the gas department.

Leicester. They were inspected and repaired at once. The
engineer said that particular attention was paid to repairing and
guarding all dangerous places.

London-So. M. Within the time limit, the company was re-
sponsible for necessary repairs, and afterwards the local author-
ities.

Newcastle. City made repairs and charged to the gas com-
pany inside of twelve months.

Sheffield. They were kept in repair by the company for
twelve months.

GAS ENGINEERING. 199

H 58. What has been the policy in regard to improving the con-
dition of street services prior to street paving or repaving ?

Birmingham. Mains were overhauled and renewed when
necessary prior to a street being paved or repaved.

Glasgow. If required, the mains were enlarged and altered
or repaired before street paving.

Manchester. If notice is given that a street is to be paved,
mains and services are overhauled.

Leicester. The general policy was to wait until houses were
erected, if streets were paved ahead of house erection.

London-So. M. The borough engineer gave notice of street
repairing and the company looked to their mains and services.

Newcastle. Eepairs were made invariably ahead of street
paving. The city engineer reported ahead of work.

Sheffield. The company always took the opportunity to carry
out any repairs or enlargements prior to street repairs.
H 59. Was there an up-to-date map showing the location and
nature of all street mains and fixtures?

Birmingham. Yes; two maps — small and large sectional
scale.

Glasgow, Manchester. Yes ; maps and records of street mains
were at the municipal offices.

Leicester. Yes; there was a large sectional map showing
mains and houses.

London-So. M. Yes.

Newcastle. Yes, being completed. All records are correct
for the last seven years.

Sheffield. Yes; large maps on large scale and complete in-
dividual sketches.

H 60. Who decided where underground structures shall be located
in the street ?

Birmingham. The engineer of the gas department in confer-
ence with the city or local surveyors.

Glasgow, Manchester, Leicester. Officials of the department.

London-So. M. By agreement with the borough engineers,
with right of appeal to the Board of Trade.

Newcastle. Plans were submitted to the city engineer for
approval. He must approve within three days or give alternate
decision. Justices of the peace decide disputes.

Sheffield. The officials of the company. The mains are
always laid under the foot-paths.
H 61. Was a permit from a public authority required before street

might be opened?
H 62. Was a separate permit obtained for each opening?

Municipalities. No permit was necessary, but notice was
given for each opening.

Companies. Yes.

200 NATIONAL CIVIC FEDERATION.

PURCHASE OF SUPPLIES.

H 63. Who placed the orders for materials, and who governed
the placing of orders?

Birmingham. The gas committee of the city council.

Glasgow. The general manager, under the gas committee.

Manchester. Orders were placed before the gas committee
each month and signed by the chairman ; urgent orders were placed
by the engineer.

Leicester. The engineer bought after test and inspection,
and orders were confirmed by the gas committee.

London-So. M. The board of directors in conjunction with
the engineer and secretary.

Newcastle. The engineer and secretary, but directors settled
large contracts.

Sheffield. General manager.
H 64. Were contracts advertised?

Municipalities. Yes.

Companies. No.

H 65. What system was used to check the quality of materials

and weights or measurements of shipments?
Quality, weights and measurements of all materials were in-
spected and checked by the engineers' and storekeepers.

H 66. What redress was there in cases of shortages or poor qual-
ity of shipments?
Material might be rejected and credit claimed.

H 67. Were the dealers supplying material connected with the
city, county or State government?

Birmingham. Members of the municipal authorities may not
supply goods or materials direct, but may be interested in limited
companies supplying same.

Glasgow. No member of the municipal corporation may ex-
ecute municipal contracts.

Manchester. One case came under our notice.

Leicester. No.

London-So. M. The engineer has no idea.

Newcastle, Sheffield. No.
H 68. Were local dealers favored over those outside of the city?

Birmingham, Manchester, Leicester. All things being equal,
yes.

Glasgow. No.

London-So. M. No.

Newcastle. All things being equal, consumers were favored.

Sheffield. Yes, all things being equal, or only small differ-
ences.

GAS ENGINEERING. 201

H 69. Was there delay in placing orders after the engineer or
superintendent expressed the necessity for the supplies?
No, according to the officials of each undertaking.

H 70. In practice, did the manager get the types and makes of
things he asked for, or was he forced to take something
else?
The official of each plant reported that he got what he

wanted.

H 71. Were bills for materials purchased paid promptly?

Birmingham,, Glasgow, Manchester. Yes, monthly.

Leicester. Bills were paid thirty days after the month re-
ceived.

London-So. M., Newcastle. Yes, monthly.

Sheffield. Yes, upon the 12th of the following month after
the bill was incurred.

GENERAL MATTERS.

H 72. Was the plant adequately equipped to handle the business?

Municipalities. Yes.

London-So. M. Yes.

Newcastle. Yes, although plans are being made to remodel
the Elswich works, unless the property is purchased.

Sheffield. Yes; the gas storage capacity was large.
H 73. Was the equipment of modern and efficient type?

Birmingham. The three largest and newest works were quite
modern and efficient. The Adderley street plant was somewhat
antiquated.

Glasgow. Yes; the newest sections were very modern and
efficient.

Manchester. Yes, generally; the Eochdale Eoad works were
rather crowded, but improvements were under way.

Leicester. The Aylestone works were modern; have coal gas
and water gas plants and were efficient, although all hand firing.
The Belgrave Gate works were rather old.

London-So. M. East Greenwich, yes; Old Kent Eoad, in
part ; Vauxhall, fair ; Eotherhithe, fair ; Bankside, fair ; West Green-
wich, fair.

Newcastle. The Eedheugh works, yes; Elswich retorts were
efficient but cannot be considered modern.

Sheffield. Modern at Grimesthorpe and Neepsend works; ex-
ceedingly efficient automatic machinery in use. Effingham street
had hand firing.

H 74. Was it in good condition?

Birmingham, Glasgow, Manchester. Yes.

202 NATIONAL CIVIC FEDERATION.

Leicester. The Aylestone works were in very good condi-
tion, neat and well laid out. The Belgrave Gate works were rather
cramped and old, but in neat condition.

London-So. M. Yes.

Newcastle. Eedheugh, yes; Elswich, partially.

Sheffield. Yes; all plants were in good condition, but Neeps-
end works rather crowded.

H 75. Will it be necessary to make extensive repairs or alterations
in the near future ?

Birmingham. No.

Glasgow. No; one of the large plants was standing idle.

Manchester. No; the Bradford Eoad works will be increased
as consumption increases. A large new holder was contemplated.

Leicester. It was thought that new works would have to be
started in about three years, but as there was a decrease in last
year's sales the present plant will probably run five or six years
without further extensions.

London-So. M. Extensive repairs were going on; no con-
siderable works extensions were entertained. The East Greenwich
works are designed to provide them when they are necessary.

Newcastle. Yes, Elswich in 1907; or, if not, St. Anthony
works may be started soon.

Sheffield. Not in the immediate future. The lay-out provides
for extension of five millions daily. Much work is already planned.
H 76. Was the plant kept in neat and clean condition?

Birmingham, Glasgow, Manchester. Yes.

Leicester. It is exceedingly neat and clean. The plant is
continually being brushed by a cleaning gang to extravagance.

Companies. Yes.
H 77. Were the works adequately ventilated ?

Yes, in each instance.
H 78. Were the pits, shafts and machinery properly guarded?

Yes, in each instance.

H 79. Were the offices for payments, complaints and other busi-
ness conveniently located?

Birmingham. One central office was in town, one at Sutton
and one at Wednesbury. There were seventeen branch collecting
offices in chemists' and drug stores, where consumers might make
payments one month after they were due. These druggists collected
on a commission.

Glasgow, Manchester, Leicester. One office in centre of city.
London-So. M. Offices were scattered over entire district.
Newcastle. One office in centre of city and branch in Gates-
head.

Sheffield. One main office in centre of city.

GAS ENGINEERING. 203

H 80. Were consumers3 complaints promptly and efficiently at-
tended to?

Yes, according to the officials of each undertaking.
H 81. Describe office system of handling complaints.

Birmingham. Complaints were received at the central office,
where an order was sent to the fitting department, a carbon copy
being kept at the central office. The fitting department looked after
the work, filled up blank forms of cost and time, with details as
to what the job consisted of, which was returned to the central
office, and charges were made accordingly. There was no shop up-
town. The work outside of the meter was done free; inside the
meter it was charged for at a profit.

Glasgow. Complaints were made at the central office, sent to
the shop on regular forms, entered in books, attended to, entered
again and returned to central office. Shop records were in good
shape ; office records were filed rather badly.

Manchester. Complaints were entered in a stub book and
slips were sent to the fitting department. After the complaint had
been attended to the slip was returned to the complaint desk, with
the nature of the complaint and the work done recorded with the
fitter's name. Escapes were not separated from orders.

Leicester. Complaints were recorded in office book and slip
was sent to fitters' shop. Fitters got orders from the foreman in
charge or clerk at desk in fitters' shop. Men were sent out from
the shop with a statement of the nature of the complaint. When
the work was done they returned, reported and initialed the place
in the book or slip opposite the order.

London-So. M. Complaints were received at the desk by
telephone, post or call; entered in a book, with the nature of the
complaint, and the time was copied into the inspection book, which
was taken by the inspector. The latter attended to and made an
entry of the nature of the complaint and the result of inspection.
The book was then returned to the complaint desk and copied into
the original book, two small books going to each inspector. The
district of inspection was laid out with a head inspector, an assist-
ant and group of ordinary inspectors. Complaints of special nature
were inspected by the head inspector or assistant.

Newcastle. Complaints came to the central office. Sheets
were sent continually to the fitters' department by messenger;
urgent ones were telephoned and followed by a sheet. Time was
marked, checked and booked at fitters' department. The fitters
best suited for the work were sent out, the time going and returning
being marked and the work done entered on order. It was then
received by a clerk in the fitters' department, entered and returned
to the central office. One clerk had this in charge at the central
office, and if report was not satisfactory to him he sent another in-
spector out.

Sheffield. Complaints were entered in stub books — one book
for meters set, one for orders, stoves and fixtures; one (printed in

204 NATIONAL CIVIC FEDERATION.

red) for leaks, etc. The time of day was marked on each book,
slip detached and sent at once to fitting department and order
given out for leaks at once. When work was finished slips were
noted by fitter, checked by clerk, time and nature of complaint was
entered, with charges to stores and cost figured on each job. The
system was very complete and capable of being checked in all de-
tails. Slips were pasted on filing books.

H 82. How were leak complaints attended to at night?

Birmingham. Men remained at the office until 12 o'clock, and
an emergency man might be called after that.

Glasgow, Manchester. Fitters were on duty to attend to any
calls. -

Leicester. A man was on duty at the office at night and could
get a fitter by telephone if needed.

London-So. M. Men were on duty to attend to complaints.

Newcastle. An emergency man was on duty all night, ready
to attend to leaks, fires, etc. He could get help instantly from
various quarters.

Sheffield. A man was on duty until 10 P. M. ; then two men
who lived adjacent to the main office could be gotten at once by
the watchman at the office.

H 83. Was there a system of badging or uniforming the em-
ployees so that they might be known to the public ?

Birmingham. Every man dealing with the public wore a
uniform badged cap.

Glasgow. Meter testers and night men had uniform cap.

Manchester. Yes.

Leicester. Meter and store inspectors were uniformed and
badged ; fitters and laborers were not.

London-So. M., Newcastle. Yes.

Sheffield. No; each inspector and meter reader carried a
small official book which identified him.

H 84. Were the general morale and discipline of the employees
good, bad or indifferent?

Good, according to the manager or engineer of each plant.

H 85. Were the employees who meet the public polite and at-
tentive ?

Yes, according to the manager or engineer of each plant.
H 86. Were they neatly dressed?

Apparently.

H 87. Did the various departments work in harmony? Was
there friction or jealousy, and did one department shirk
work, leaving it to be done by another?
Birmingham, Manchester. No answer.

Glasgow. The various departments were said to work in
harmony.

GAS ENGINEERING. 205

Leicester. Engineer said that it was one particular point to
see that all departments worked in harmony.

London-So. M. The engineer said that departments work in
harmony, that there was no more jealousy than in any large under-
taking and that no department shirked its work.

Newcastle. The secretary said there was no friction.

Sheffield. The manager said that there was perfect harmony,
and that particular attention had been paid to this feature.
H 88. Was there an adequate system of telephones?

Yes; public and private.
H 89. Were the works and offices properly watched at night?

Yes, in each instance.

H 90. Were employees generally permitted to run to fires, or was
some one appointed to go?

Birmingham. A special " gas stopper " was detailed with the
firemen.

Glasgow. One employee was in constant attendance at the
fire department headquarters.

Manchester. Men were appointed for the purpose.

Leicester. Yes; a bonus of one crown was given to an em-
ployee shutting off gas.

London-So. M. No, there were no special men.

Newcastle. Special men were assigned, with power to call
others.

Sheffield. Men were specially appointed, day and night.

H 91. Was there any system of inspection to prevent workmen
of other companies or city departments from injuring the
underground structures ?

Birmingham, Manchester, Leicester. Yes; the main inspect-
ors watch the operations of others.

Glasgow. The gas department is notified of all openings to be
made.

London-So. M., Newcastle. Yes; a general inspection of
openings.

Sheffield. Yes, there were two men to specially inspect all
foreign work.

H 92. Has the manager maintained an adequate system of re-
ports made to him of the details of the operation of the
plant day by day, so as to show manufacturing results,
cost per unit, length of underground or overhead struct-
ures installed, etc.?

Birmingham, Manchester. Yes; daily and weekly reports.
Glasgow. Yes.

Leicester. Weekly reports were sent to the engineer.
London-So. M. Yes.

206 NATIONAL CIVIC FEDERATION.

Newcastle. Yes, fortnightly reports were submitted to the
board of directors, and daily reports to the engineer, including all
readings of temperatures and pressure.

Sheffield. Complete reports of daily results of plant,
pressure, candle-power, etc., were made. Everything was system-
atic and easily accessible.

H 93. Was there a drafting room maintained?
Yes ; in each instance.

H 94. What system was in vogue to take care of the tools dis-
tributed to employees?

Birmingham, Glasgow, Leicester. All tools were booked in
and out, and employees were required to account for them indi-
vidually.

Manchester. Every foreman was responsible for tools used
by his gang.

London-So. M., Newcastle, Sheffield. Booked in and out to
all employees. All men had to account for them individually.

H 95. Were the different classes of workmen equipped with

proper tools? Were the tools kept in order?
It was so stated in each instance, and all that were seen were
in good order.

H 96. With what promptness were orders to turn on gas at-
tended to?

Birmingham, Glasgow. All received up to 4 P. M., if import-
ant, were attended to the same day.

Manchester. Promptly, according to the superintendent.

Leicester. Very promptly, according to the superintendent.
Meters were set about two days after orders were received, and in
order of receipt, except on urgent appeal.

London-So. M. Within twenty-four hours, or, if urgent,
within one hour, according to the engineer.

Newcastle. Promptly. Electric competition is very keen,
and the gas company is making every effort to give the best service.

Sheffield. At once. Inspection of complaint and order book
showed that all matters were followed up quickly.

H 97. Are service pipes run to every lot, whether built upon or
not, prior to street paving or repaving ? If so, how many
of these dead services are now in existence?

Municipalities. Service pipes are run only when service is
required.

London-So. M. There are no dead services in existence, ac-
cording to the engineer.

Newcastle. This has been done, but it is not the general
practice.

Sheffield. No services are laid until required by tenants.

GAS ENGINEERING. 207

H 98. Were records kept of services by date installed so that as
the service grows old an inspection may be made at in-
tervals of years to determine when renewals should take
place and insure such renewal before most of the services
have begun to give trouble?
Birmingham. Yes ; according to the secretary.
Glasgow. A record was kept of the services, but not seen.
Manchester, Leicester. No.

London-So. M. All services were kept on record, according
to the engineer.

Newcastle. Yes, for the last seven years. Eecords previous
to that time were incomplete.

Sheffield. Yes; every service record was complete and every
one over 2 inches in diameter was on street main map.

H 99. , Were there any regulations in force regarding the entrance
of employees in houses?

Birmingham. No, except with prepayment meters.

Manchester, Glasgow, Leicester. No; except general instruc-
tions.

Companies. No printed regulations; only general orders.

H 100. Did anyone inspect the work done by employees in con-
sumers' houses?

Birmingham. Yes.

Glasgow, Manchester. Yes; examined by foreman or in-
spector.

Leicester. No; not generally, but in some cases.

London-So., M. They were inspected by the foreman and
superintendent of the fitting department.

Newcastle. Yes.

Sheffield. The foreman followed the work and made inspec-
tion.

H 101. Was this inspection special, or did it include every job?

Birmingham. General.

Glasgow. Only where new material had been used.

Manchester. Every job was inspected.

Leicester. Special inspection only.

London-So. M. Special inspections which did not cover every
job.

Newcastle, Sheffield. Yes; every job was inspected.

FINANCIAL MATTERS
British Gas Works
(Schedule IV)

By E. HARTLEY TURNER and R. C. JAMES.*

I 1. Data for year ending: Birmingham, March 31, 1905; Glas-
gow, May 31, 1905; Manchester, March 31, 1905;
Leicester, December 31, 1905; Companies, December 31,
1905.

I 2. Give price of gas per M. cu. ft. for various purposes.

I 3. Give discounts allowed.

I 4. Give meter rents and charges for repairs, if any.

I 5. Give stove rents and charges.

I 2-5. (For answers to inquiries see opposite page. Notes to
table opposite are to be found upon pages 210-212.)

*A11 figures in these schedules relating to assets and liabilities,
revenue, and profit and loss account, are prepared from the published
accounts certified by the auditors. We have in all cases where further
information was required obtained such details from the staff of the
undertaking.

We have not In any case verified by personal examination the
accuracy of the audited accounts, as we considered that in the short
time at our disposal we should not have been able to do this with any
completeness even had we «ntr6 to the books and original records.

For general comments and summary, see further report at the end of
this volume.

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Vol. III.— 15.

210 NATIONAL CIVIC FEDERATION.

1 These prices include merely the gas furnished; they do not
cover repairs, maintenance, lighting or use of posts or burners, except
at Newcastle, where the company owns the posts and burners, and
except at London as stated in note ('). With the exception of Bir-
mingham and London, no undertaking is required to bear the cost of
repairs and cleaning. Birmingham spent £3,295 last year for lighting
and repairing.

• The scale of consumption is computed per quarter and for each
building; thus in order to get the rate of Is. 10d., the consumer must
use at least 1,000,000 cubic feet in one building in the quarter. This
arrangement is slightly more favorable to him than a scale for a yearly
consumption with the items made four times as large.

• Prices vary from £2 9s. 2d.f for a small-sized burner, to £3
4s. 5d., for a large-sized burner, per annum for a Kern incandescent
burner, including cleaning, maintenance and repairs as well as the gas
furnished. The local authorities own lamps and burners and must light
and extinguish them.

4 Upon April 1st, a reduction of 2d. per M. cu. ft. was made. The
first figures in each column were in force prior to that date, the last
were after.

• A consumer having a number of small shops in the district, the
total consumption of which exceeds £100 per annum, got 2y2 per cent
off. All public bodies and local authorities got a discount of 5 per
cent on all gas consumed. All discounts were allowed only on bills
paid within a month of quarter day.

• The company allowed an extra discount of 2% per cent on gas
used for public lighting in Newcastle and Gateshead, conditionally
upon the lamps burning every night throughout the year. The above
discounts have been in force since January 1, 1905. Under the Act of
1901, two rates of discount were prescribed, viz., 10 and 15 per cent.
The company allows to large consumers a higher rate than allowed by
the act which does not differentiate above 400,000 cu. ft.

T If a prepayment meter was used, it was rented and fixed free,
and cookers and fittings were also supplied free to cottages let on
weekly tenancies. Heating and cooking stoves were supplied upon these
terms :

Sale Price Quartely Hire
Subject to Cash Payment (net)

No. of Discount of on Three Tears'

Stove. Five per cent. System.

£ s. d. £ s. d.

2273B — Cannon Iron Foundries, Limited 3 18 0 066

2274B—
2275B— i
2276B—

6—

8-H

10—

4 10 0 076

520 086

600 0 10 0

4 — Parkinson and Cowan, Limited 3 18 0 066

4 10 0 076

520 086

600 0 10 0

30— Wright and Butler Man'f'g Co., L't'd. 3 18 0 066

40— " 4 10 0 076

50— " " 520 086

60— " ""600 0 10 0
The charge for fixing a stove of any of these

sizes complete, including supply pipe

from meter, if required, is , 140 020

(Consumers, if they prefer, may employ private gas fitters to lay
the supply pipe and fix the stove.)

GAS FINANCE. 211

Particulars of stoves of other sizes than are quoted, and of heat-
ing stoves, may be obtained on application at the gas offices, Edmund
Street, Birmingham.

It will be observed that the sale price may be paid, if desired, by
twelve quarterly hire payments. During this period the stoves will be
maintained, as regards fair wear and tear.

When stoves are sold on three years' hire-purchase system, the
cost of fitting may, if desired, be added to the cost of the stove, and
paid in the twelve quarterly payments with the stove. In such cases
the hirer of the stove will be required to pay the balance owing for the
fittings if the stove is returned before the expiration of three years.

Purchasers on the three years' hire system may, at any time before
the twelve quarterly hire payments have been completed, pay the bal-
ance owing, less a discount of 5 per cent.

Should the hirer desire to return a cooking stove to the Depart-
ment before the purchase has been completed, one-half of the payments
which have been made will be returned, less any unpaid balance of cost
of fixing the stove.

If a prepayment meter is used, it is rented and fixed free, and
cookers and fittings are also supplied free to cottages let on weekly
tenancies.

• The cost of fixing meters and of all pipes and fittings on private
premises is charged to the consumer, except in the case of prepayment
gas supplies, in which the meter, fittings and cooker are supplied and
fixed free of charge by the department. Charge for fixing meters, in-
cluding materials within 2 miles from offices, about 6s. 6d. for three
light and 7s. 6d. for five-light meters; without main taps and connec-
tions, about 3s. 6d. and 4s.

•The rents for stoves with ordinary meters are:

Oven Measurements. Rent per

Inches (Inside). Quarter.

Height. Width. Depth. ( s. d.

3/6

3/3

2/3

1/9

1/6

1/3

1/0

0/6

All with grillers and boiling burners on top.

M If hired with ordinary meters the fitting is done through the fit-
ting department at ordinary tradesmen's prices to the customer, or the
work may be undertaken by any local tradesman, who would charge
the customer direct. The charges vary according to the position of the
stove and the size of the stove and fittings.

11 Meter rents per quarter are:

3-light 0/9 40-light 2/6 120-light 7/6

5- " 1/0 50- " 3/0 150- " 10/0

10- " 1/3 60- " 4/0 200- " 12/6

20- " 1/9 80- " 5/0 250- " 15/0

30- " 2/3 100- " 6/6 etc.

"To consumers using ordinary meters, cooking stoves are let on
hire at rentals ranging from Is. 6d. to 4s. per quarter, equal to from
10 to 12 per cent, per annum on net cost. In fixing these, the cost of
material (which may be taken to be from 5s. to 7s.) is paid by the
consumer, no charge being made for labor.

213 NATIONAL CIVIC FEDERATION.

MA charge of 2d. per lineal foot is made for the piping; no charge
for taps or labor.

14 Meter rents per quarter :

S-light 0/9 30-light 3/0 100-light 7/6

5- " 1/3 50- " 4/0 150- " 10/0

10- " 1/8 60- " 4/6 200- " 12/6

20- " 2/2 SO- " 5/0 Larger sizes on appli-
cation.
" Meter rents per annum :

2-light 2/8 20-light 7/4 60-light £1 00

3- " 2/8 30- " 10/0 80- " 1 60

5- " 4/0 45- " 15/0 100- " 1 12 0

10- " 5/4 50- " 16/8 Etc.

M When the fittings were supplied and fixed at the cost of the depart-
ment, 26 cu. ft. were given for Id. — about 3/2 per M. cu. ft. In the
Revenue Account the gas consumed through prepayment meters is calcu-
lated at 2/6 per 1,000 cubic feet only. The difference between the 2/6
per 1,000 and the amount charged for the gas is applied to redeem the
capital outlay incurred in installing the lighting and cooking appliances
in the houses of this class of consumer.

I 6. Were other appliances supplied free to customers?

No, except as above stated. In this connection reference
should be made to I 2, for where a high charge is made for gas
consumed through prepayment meters, it is sometimes considered
as a return in part or in whole for the appliances furnished free.
I 7. Did consumer pay for connections with mains?

Birmingham. No, except service pipe on private ground.

Glasgow. No, except fittings and service pipe over 20 feet;
a great number exceed 20 feet.

Manchester. No, except on private property; then ordinary
services were free.

Leicester. No, except services on private ground.

Companies. No.

I 8. Was any part of the cost of mains paid by consumers or
property owners?

No instance was found except in Glasgow, where on one oc-
casion, at the request of the inhabitants of a small village at con-
siderable distance from the mains, a charge of 25 per cent of the
cost of laying the main was made and paid for.
I 9. Were extensions to new territory made free or charged for?

Municipalities. No charges were made except in Birmingham
where main pipes are run free whenever business warrants it, but
otherwise a charge is made of 4 per cent per annum until exten-
sions become remunerative.

Companies. No charges were made.
I 10. Were these schedules and rules strictly enforced?

Municipalities. Yes, in every instance.

Companies. Yes, except in Sheffield where allowances were
made in exceptional instances.

GAS FINANCE. 213

I 11. Were rates reduced or increased between Jan. 1, 1900 and
1906?

Birmingham. Price of gas per M. cu. ft. : —

Gas Consumed per 1900. Sept., 190S. Sept., 1905,

Quarter to to to

in One Building. Sept., 1903. Sept., 1905. Jan., 1908.

Under 25,000 cu. ft 2/9 2/6 2/6

25,000—50,000 2/7 2/6 2/6

50,000—250,000 2/5 2/3 2/3

250,003—1,000,000 2/3 2/0 2/0

1,000,000 and upward... 2/3 1/10 1/10

For power purposes as above as above 1/10

Glasgow. Price of gas per M. cu. ft. : —

Years. Lighting and Heating. Power.

190D 2/2 2/2

1901 2/6 2/6

1902 2/6 2/6

1903 2/4 2/0

1904 2/1 2/0

1905 2/1 2/0

Manchester. Price of gas per M. cu. ft., the first figure in

each column being the price within the city; the second the price
outside : —

Lighting Prepayment

Years. and Heating. Power. Meter.

1900 2/3 & 2/6 2/0 & 2/3 2/9 & 3/4

1901 2/6 & 2/9 2/0 & 2/3 2/9 & 3/4

1902 2/9 & 3/0 2/0 & 2/3 2/9 & 3/4

1903 2/9 & 3/0 2/0 & 2/3 2/9 & 3/4

1904 2/6 & 2/9 2/0 & 2/3 2/9 & 3/4

1905 2/4 & 2/7 2/0 & 2/3 2/9 & 3/4

Leicester. Price of gas per M. cu. ft., the first figure in each
column being the price within the city; the second the highest
price outside: —

Lighting Prepayment

Years. and Heating. Power. Meter.

1900 2/6—3/2 2/2—2/10 2/111-2—3/6

1901 2/6—3/2 2/2—2/10 2/111-2—3/6

1902 2/4—3/0 2/0—2/8 2/9 1-3—3/6

1903 2/4—3/0 2/0—2/8 2/9 1-3—3/6

1904 2/4—3/0 2/0—2/8 2/9 1-3—3/6

1905 . 2/4—3/0 1/6—2/2 2/9 1-3—3/6

214 NATIONAL CIVIC FEDERATION.

London — So. M. Price of gas per M. cu. ft. : —

Lighting Prepayment

Years. and Heating. Power. Meter.

1900 2/3 2/3 3/0

1901 2/3 2/3 3/0

1902 2/3 2/3 3/0

1903 2/3 2/3 3/0

1904 to June 30th 2/1 2/1 2/10

1904, June 30 to Dec. 31. .. 2/0" 2/0 2/9

1905 2/0 2/0 2/9

The discounts allowed throughout were 3 per cent, on all
bills amounting to £100 or over per year, 4 per cent, on all orer
£500, and 5 per cent, on all over £1,000.

Newcastle. Price of gas per M. cu. ft., the lowest figure in
each column being the price charged within Newcastle and Gates-
head; the highest, that charged in the most remote district: —

Lighting Prepayment

Years. and Heating. Power. Meter.

1900 2/3—4/0 2/3-^/0 2/3-^/0

1901 2/2—4/0 2/2—4/0 2/2 — 1/0

1902 2/1—4/0 2/1—4/0 2/1—4/0

1903 2/1—3/6 2/1—3/6 2/1—3/6

1904 2/0—3/5 2/0—3/5 2/0—5/5

1905 2/0—3/5 2/0—3/5 2/0—3/5

The discounts from 1900 to 1904 were 10 per cent, on all up

to 400,000 cubic feet per quarter and 15 per cent, on all over that
amount. The discounts for 1905 are given under I 2-5.

Sheffield. Price of gas per M. cu. ft. :—

WOJ^to Apr. 1 to
April 1, Dec. SI,
Per Annum. 1901. 1902. 1903. 1905. 1905.

Up to 500,000 2/2, 2/0 2/0 1/10 1/8 1/6

600,000 to 6,000,000. 2/0, 1/10 1/10 1/8 1/6 1/4
All over 6,000,000... 1/10, 1/8 1/8 1/6 1/4 1/2
I 12. Was the reduction voluntary, the result of law or ordinance

or competition?

Voluntary in each instance, but due possibly to competition
in part.

I 13. If plant has undergone a change from private to public
management, or vice versa, give rates just before and after
change.

Birmingham. During last year of company's operation, 1875,
prices ranged from 3s. to 3s. 6d. ; first year of municipal control,
1876, 2s. 9d. to 3s. 3d.

Glasgow. Price was the same during 1869 — last year of com-
pany control — and 1870 — first year of municipal operation.
Manchester. Always a public plant.

GAS FINANCE. 215

Leicester. Prices were the same in 1877 and 1878; the pur-
chase was of date July 1, 1878.
I 14. Were bills considered as liens against property?

Only as bills against consumer, in every instance.
I 15. How were bills collected?

Birmingham. City does not employ collectors, but grants 5
per cent discoimt for prompt payment at the head and 19 branch
offices.

Glasgow. The area of supply is divided into districts and a
certain number of districts allocated to each collector who is held
responsible for collection of accounts in districts under his charge.
A central office is provided where payment may be made also.

Manchester. Personal visits by collectors.

Leicester. By collectors, by consumers coming to gas office
and by mail. A large proportion pay at office and by check.

London — So. M. By mail, collectors and consumers at office.

Newcastle. By collectors and at office by consumers per-
sonally.

Sheffield. By collectors and by consumers paying at gas offices.
A large proportion of bills are paid at office.
I 16. How often were collections made?

Birmingham, Leicester. Quarterly for ordinary meter ac-
counts; every 6 weeks for prepayment meter accounts.

Glasgow. Three times a year.

Manchester. Ordinary accounts, quarterly; prepayment,
monthly.

London — So. M. Eegular bills, quarterly ; prepayment meters,
every 5 weeks.

Newcastle, Sheffield. Quarterly.
I 17. What system of accounts was used during last fiscal year?

In every instance the standard form of the Act of 1871.
I 18. By whom were the accounts audited ?

Birmingham. By a firm of chartered accountants — Messrs.
Howard Smith, Slocombe & Co., Birmingham. City also had an
internal audit conducted by a special staff under the direction of
the secretary. The various accounts of the city of Birmingham
are audited by several distinct firms of chartered accountants.
There was also an audit by the elective and mayor's auditors.

Glasgow. By a professional firm of chartered accountants —
Messrs. Kerr, Andersons & MacLeod, Glasgow.

Manchester. Messrs. Butcher, Litton & Pownall, chartered
accountants, Manchester ; and the elective and mayor's auditors.

Leicester. Messrs. Wykes & Co., chartered accountants,
Leicester ; and the elective and mayor's auditors.

London — So. M. First by auditors of shareholders; then by
official auditor of the Board of Trade.

216 NATIONAL CIVIC FEDERATION.

Newcastle. John H. Armstrong, C.A., Newcastle.

Sheffield. By a chartered accountant.
I 19. Who paid for this auditing?

Municipalities. The gas department in each case except Man-
chester, where the city paid for it.

Companies. The company in each case.
I 20. Who selected the auditor ?

Municipalities. The professional auditors by the city council
in each case, the elective auditors by the ratepayers and the mayor's
auditor by the mayor.

London. The company's auditors, by the shareholders; the
official auditors, by the Board of Trade.

Newcastle. Named by the company and approved by the towns
of Newcastle and Gateshead.

Sheffield. City council.
I 21. Was each item charged to the proper account ?

Municipalities. Yes, except the items noted under I 29.

Companies. Yes, as certified by the auditors.
I 22. What provision was there for assuring that each item waa
properly charged?

Besides the audit prescribed under inquiry 118: —

Birmingham. All accounts were closely scrutinized by the
chief officers of the department, and charged as they determined.

Glasgow. The requisition order, which stated for what pur-
pose the goods were to be used, was compared with the account and
an allocation made of what ledger account was to be debited
therewith.

Manchester. The certificates of the departmental managers
and the accountant.

Leicester. All bills were checked and classified by an accoun-
tant of the undertaking.

London — So. M. All bills were classified by the engineer,
then checked by the accountants' and secretary's department.

Newcastle. All accounts were certified as to quantity, quality
and price by officials responsible for the same, and propeiy appor-
tioned between the various accounts by a clerk under the super-
vision of the chief accountant.

Sheffield. All accounts were analyzed by the chief accountant

who decided the headings under which they were to be booked.

Charges were allocated according to a regular system.

I 23. Were the accounts of the particular plant kept separate

from all others and from the general accounts of the city ?

Yes, in each instance.

I 24. As regards taxes, fire insurance, boiler insurance, water,
rents of lands and buildings not owned but used, interest

GAS FINANCE. 217

on loan debt and other liabilities, were the expenses
charged in the books of the undertaking and included in
the financial returns?

The accounts of each plant were charged with the amount
speni

I 25. As regards accident insurance and payments for claims
and damages, were the expenses charged in the books of
the undertaking and included in the financial returns?
The accounts of each plant were charged with the amount ex-
pended, but some took out the ordinary insurance policy while
others did their own insuring.

I 26. As to gas used in plant and offices, was the cost charged
in the books of the undertaking and included in the
financial returns?

A record was kept in each instance, but no entry was made
either upon the debit or the credit side of the revenue account,
except in Manchester, when entries were made upon both sides of
the ledger.

I 27. Were charges made for "depreciation" in the books of the

undertaking and included in the financial returns ?
In this connection it is advisable to consider not only the
ordinary charges for repairs and maintenance but payments out
of revenue to sinking and reserve funds and in aid of rates — taxes,
as well as depreciation funds. Sinking funds will be considered
under 1 28 ; the others here.

I. Payments to Depreciation Funds.

Birmingham. No depreciation was charged except an item of
£61,232 for "buildings and plant abandoned, plant transferred to
stock, etc./' deducted from the capital outlay, included in the ex-
penditures for maintenance, and not appearing therefore in net
profit account — M 3. This practice has been followed for some
time, and valuations are periodically made.

Glasgow. The amount written off for depreciation last year
was £36,199, computed by taking the following percentages on the
capital cost: Works, 1*4 per cent; pipes, 1% per cent; meters,
6 per cent; stoves, 10 per cent; premium paid for stock in the old
gas companies, %y2l per cent.

The capital outlay as given in the reports of the undertaking
is reduced by the depreciation written off each year, but in this
schedule the capital outlay has been put at its original cost and
the depreciation given as a fund — £1,346,657 — upon the lia-
bilities side.

Manchester. Depreciation was charged prior to 1892, and
since that date there has been no charge, but only actual re-
newals.

Leicester. No depreciation was charged except upon gas
Btoves and meters.

218 NATIONAL CIVIC FEDERATION.

London — So. M. No depreciation was charged.

Newcastle. No depreciation except as to meters and stoves;
whenever any of these were broken up they were charged to
revenue.

Sheffield. No depreciation except upon meters and stoves.

II. Payments to Reserve Funds.

Birmingham. There was no payment to the reserve fund dur-
ing the year. It stands at £100,030 and is invested in securities.
The income thereon was not credited to the department but ap-
plied in aid of rate. The contingent fund stood at £2,000.

Glasgow. A contingency fund of £19,289 has been built up
out of surplus profits. It was not invested, but formed a part of
the working capital. In addition there was a balance of unapplied
profits of £21,026.

Manchester. A reserve fund of £147,608 has been provided
out of revenue, represented by working capital. The revenue ac-
count was not charged with any interest for the use of this fund.

Leicester. The reserve fund of £87,828 consists of £79,828,
the reserve fund of the old company invested in plant, and of
£8,000, invested in the city funds, and has been created out of
profits. The income thereon was credited to the revenue account.

London — 80. M. This company has accumulated a reserve
fund of £174,305, which has been provided out of surplus profits
and also increased by interest received on specific investments rep-
resenting the fund. At the close of 1905 this fund was all specif-
ically invested with the exception of £73,932.

A renewal fund for the redemption of leasehold properties
of £23,962 has also been accumulated. This fund has been created
out of revenue by annual transfers which for the past six years
have been at the rate of £300 per annum. It has also been in-
creased by interest on the specific investments representing the
fund and has from time to time been applied in purchasing leases
of properties occupied by the company. The amount of the fund
uninvested at December 31, 1905. was £2,525.

The company has also out of profits accumulated an "insurance
fund" which is really an ordinary reserve fund which may be set
aside according to the special acts. It is to meet any extraor-
dinary claim, demand or charge which may at any time arise
against or fall upon the company from accidents, strikes or other
circumstances which in the opinion of the auditors due care and
management could not have prevented. The credit was £105,189,
which has been provided by annual contributions from revenue and
increased by interest on the specific investments representing the
fund. The whole of this fund is specifically invested with the
exception of £3,382.

In addition the company has carried forward undivided profit*
amounting to £5,683.

GAS FINANCE. 21»

Newcastle. The reserve fund stood at £60,000, the limit al-
lowed by statute. It was represented by the general assets. No
entry was made in the revenue account for the interest thereon.
There was also an unapplied profit of £17,537.

Sheffield. The reserve fund of this company was also at the
limit allowed by statute — £86,848. It was invested and the interest
credited to income account. In addition the company has accu-
mulated a surplus of undivided profits amounting to £83,972 to
provide for any rise in the price of coal and to keep the price of
gas at its present level, although this is primarily the function
of the reserve fund proper.

The company has a further reserve fund accumulated out of
premiums received on capital issued, amounting to £19,706. The
company is not empowered to pay dividends upon this sum, and
there is no obligation to repay it at any time or upon the winding
up of the company. In the latter event it would be represented
by the general surplus assets of the company, and be distributed
pro rata among the whole of the shareholders.

III. Payments in Aid of Rates — Taxes.

The amounts paid over in aid of rate are as much an applica-
tion of surplus profits as the provision of a reserve fund. The re-
serve fund appears in the accounts of the undertaking, but profit ap-
plied in aid of rate is not generally shown in the accounts and then
only as a memorandum. The following table summarizes the

facts :

Year

Annual Under

Towns. Amount. Years. Average. Review.
Birmingham ... £923,684 29 £31,851 £50,526

302,152 29 10,419 14,963

Glasgow

21,235

1881
to

1890
62
27

43,376
21,530

60,000
43,467

How Applied.

In aid of General
Imp. Rate.

Do. Public Light-
ing.

Contribution to
General Ex-
penses of City.

NoteC).

Note (z).

Manchester 2,689,302

Leicester 581,301

Improvement Rate £1,367,641

City Rate 826,194

Water Committee 166,265

Street Lighting 329,202

£2,689,302

I 28. Were payments to sinking funds charged in the books
of the undertaking and included in the financial returns ?

Municipalities. The statutory provisions outlined under in-
quiry D 25, supra, have been obeyed in each instance.

1 The total contributed since 1843 has been applied as follows :

2 In aid of district rate for public health purposes.

230

NATIONAL CIVIC FEDERATION.

Town.
Birmingham .

Sinking Fund
set aside but
not applied in Cash
redemption, in Bank.
.... £67,060 £16,062

Invested.
£50,998

155,321 Municipality

SUMMARY OF SINKING FUND BALANCES.

How

Invested.

Outside
Securities

Glasgow 29,572 29,572

Manchester 29,410 29,410

Leicester 155,321

See additional data under I 33 and K 6.

Mr. Turner has had considerable experience in connection
with municipal sinking funds, and we can assure the Commission
that the figures as given in the published accounts are absolutely
reliable apart altogether from the question of the audit of the
accounts. Also it is quite impossible for any municipality to em-
ploy any part of its sinking fund in providing working capital, or
in any manner other than its legitimate purpose, namely, the
repayment of loan debt. Any part of the sinking fund not so
applied must be represented either by cash in the bank or invested
in outside securities or where permitted by statute invested in the
authorized loans of the same municipality, as at Leicester. It
should be borne in mind, however, that the sinking fund may not
be invested in any other department of the same municipality
unless that department has obtained statutory powers to borrow
the amount and is therefore under a statutory obligation to set
aside out of revenue a sinking fund for its redemption.

Companies. No sinking fund obligations in any instance.

I 29. Were there any charges which should properly be included
in expenses but which were actually paid from other
sources and not charged to the plant, such as the services
of the town clerk, city treasurer, etc. ?

Birmingham. The approximate value of the services not
charged was about £1,000.

Glasgow. None; all charged against the department.

Manchester. It is estimated that £1,500 would fully cover the
value of these services, including the town clerk, city treasurer,
city architect and professional auditors.

Leicester. The approximate value of the services was £1,500
a year. As far as could be ascertained, the gas undertaking stood
on its own bottom. The services rendered by the paving depart-
ment, water department, etc., were paid in full, all bills being ren-
dered in detail. They were looked over and found to be in regu-
lar order.

Companies. No items were omitted except in Sheffield where
most of the income tax does not appear in expenditures under
"taxes," but is included in the item — "dividends on share capital."

GAS FINANCE. 221

I 30. Were there any items which should be credited to the in-
come account, which were not so credited, such as gas
furnished free to any public department, employe or other
person ?

Birmingham. Gas was supplied to public authorities for pub-
lic lighting at Is. per M. cu. ft. — about one-half the price to or-
dinary consumers. The difference between the price actually
charged and the ordinary rates was said to be £14,9 62, according to
the report of the gas committee, which item does not appear in
the revenue account. The method of determining the amount used
by public lamps was to meter one lamp in every 12 and compute
the amount used by the others from this one.

The reserve fund of £100,003 is invested in the general funds
of the city. The investment brings in a clear 4 per cent with-
out deduction for income tax, and this item of £4,000 was not
included as part of the revenue of the undertaking in the accounts.
It is applied in aid of the improvement rate, and the contribution
for the department in aid of rate should therefore be increased
by £4,000 above the amount returned in the reports.

Glasgow. None, except gas supplied to public clocks and two
exhibitions held in the city. The approximate value of this
service was £387. No entry was made in the accounts.

Manchester. None.

Leicester. None, except a possible item for street lighting.
The consumption of gas in street lamps is computed at 5 feet per
hour for open flame burners, and 4 feet per hour for incandescent
burners. The charge for gas for public lighting was 2s. 2d. in
Leicester, or 2d. below the lowest rate to ordinary consumers. The
amount consumed in Leicester during last year was 51,658 M.
cu. ft. At 2d. per M. the difference would amount to £430.

London — 80. M. None, except the gas supplied to the chief
engineer and the engineers in charge of the various works and
stations. The approximate value was very small, and entries
were made upon the debit and credit sides of the revenue account.

Newcastle. Nine officials of the company were supplied free
and consumed 1,141,500 cu. ft. The value would be about £103 at
2s. per M. less 10 per cent. No entry was made in the revenue ac-
count, but the amount was included in gas used at the works. In
addition, 69 officials used during the year 1,286,600, for which
they were allowed a discount of 50 per cent instead of the usual
discount of 10 per cent. The net value of the free service was,
therefore, £73. All workmen of the company get an additional
discount of 10 per cent, or 20 per cent in all. In these cases, the
actual amount of money received is credited to the revenue ac-
count, but no entry is made for the value of the free service.

Sheffield. No free service.

222 NATIONAL CIVIC FEDERATION.

I 31. Was there a storeroom account to which materials were
charged when purchased ?

Municipalities. Yes, in each instance except at Glasgow where
purchases were debited direct and stock taken at the close of the
year, credited thereto and debited to general stores account. These
were written back again at the beginning of the next financial
year. In the other undertakings strict accounts were kept of all
stores, and debits and credits were made when received and issued.

Companies. Yes, regular store accounts were kept, and ma-
terial debited and credited as received and issued.

I 32. How did the rate of interest paid by the city compare with
the rate paid by private public service companies ?

Birmingham. The city pays from 14 to 1 per cent less than
companies.

Glasgow. The city is paying 3 per cent, and private compan-
ies 4 to 41/2 per cent.

Manchester. The average rate paid by the gas undertaking
was £3 11s. 7d. per cent as compared with 4 per cent paid by priv-
ate companies on debenture capital only.

Leicester. There was no private company to compare with in
Leicester, but the South Metropolitan Gas Company of London
issued debentures at about the same rate as Leicester.

London — So. M. About the same — average 3.4 per cent.

Newcastle. The company paid S1/^ per cent on debenture
stock; the city borrowed at 3 and 3£ per cent.

I 33. What is the amount of the bonds or other liabilities of
the plant cancelled since it began operation?

Liabilities Sinking Fund
Redeemed. Unapplied. Total.

Birmingham £666,561 £67,060 £733,621

Glasgow J 517,925 29,572 547,497

Manchester » 1,20 1,814 29,410 1,231,224

Leicester 89,158 155,321 244,479

Companies

I 34. In construction work, has a detailed record been kept of
expenditures, so that the amount spent to date is known?
Yes, in every instance.

1 Of this, £77,471 were part of premium on redemption of an-
nuities.

* This amount is greater by £156,080 than the amount given
under inquiry J 3, but this is accounted for by the fact that the figures
under J 3 run back only to 1843. Obligations were incurred prior to
1843, and of these £156,080 have been paid off out of sinking fund.

GAS FINANCE. 22S

I 35. Have records been kept so that it is known that the total
cost will exceed the appropriation before the indebtedness
for the excess is incurred ? Yes, in every instance.

I 36. Give kind, cost and amount of coal used for boiler fuel.

None used of any kind, except at Newcastle where they used
264 tons (2,240 Ibs.) of Durham bituminous coal, costing 8/1.934
per ton; and at Sheffield where they used 15,090 tons of screenings,
wastings, dust, etc., from the gas coal, and the cost was included
in the cost of coal carbonized.

I 37. Gas coal used during last year ( ton = 2,240 Ibs.).

Towns. Kind. Price. Tons.

Birmingham York, and Derbyshire... 10/0.5 499,590

Glasgow Glasgow 10/3.0 678,300

Manchester Lanca. and Yorkshire... 11/3.0 355,210

Leicester Derbyshire 10/0.4 172,927

London— So. M. .Durham and Yorkshire. . 10/11 1,187,753

Newcastle Durham 7/10.8 263,920

Sheffield Silkstone and cannel 6/9.0 255,091

I 38. Enrichers. Give kind, quantity and cost of each used.

Birmingham. Cannel coal, 5,628 tons; carburine spirit or
benzol at 8d. to lOd. per gallon, 10,014 galls.; carbureted water
gas, 1,338,912 M. cu. ft. of 20 c. p., costing 13.79d. per M. cu. ft.

Glasgow. Gas oil, 1,935 tons (2,240 Ibs. each).

Manchester. Distilled residuum, 3,415,294 gallons, costing
£36,751, used in water gas; benzol, 112,946 gallons, costing £4,479.

Leicester. None. London — 80. M. None.

Newcastle. Cannel, 13,250 tons, costing 13/7.671 per ton.

Sheffield. Cannel coal and a small quantity of benzol. Price
and quantity included in above. Cannel coal 24,858 tons.

I 39. Give quantity and cost of water used.

Birmingham. Cannot say. The department has its own wells
and also draws water from the canals and town supply.

Glasgow. Cannot say.
Manchester. 198,350,000 gallons: £3,681.
Leicester. About 4,450,000 gallons, costing £121 16s. 8d.
London — So. M. Cannot give quantity. The cost was £3,067.
Newcastle. 59,331,000 gallons, costing £1,298 15s. 5d.
Sheffield. Quantity unknown, but cost was £349.
I 40. Give quantity of each by-product produced, used and sold.

224 NATIONAL CIVIC FEDERATION.

COKE AND BREEZE (ton = 2,240 Ibs.).

Towns. Made. Used. Sold.1 Price.

Birmingham 316,654 65.809 243,496 9/2.31

Glasgow 373,329 il6,9,62 260,581 6/0.26

Manchester 232,360 60,383 171,977 7/0.57

Leicester 108,916 28,759 86,095 7/5

London — So. M.

Coke 729,574 186,595 585,176 9/7.20

Breeze2 264,147 94,245 157,269 1/10.34

Newcastle 189.324 51,064 138,260 10/11.25

Sheffield 171,860 45,563 125,197 10/2.33

TAR.

Towns. Made. Used. Sold. Price.

Birmingham — gals. 6,471,472 none 5,844,260 1.45d.

Glasgow3 ....

Manchester — tons . . . 24,301 none 24,301 17/0.8

Leicester — tons4 10,272

London So. M.— gals. 11,356,963 5,509,606 5,769,660 2.95d.

Newcastle— gals 2,776,OD9 49,244 2,726,765 1.03d.

Sheffield— tons 15,743 none 15,543 87/9.4

AMMONIACAL LIQUOR (GALLONS.)

Towns. Made. Sold. Price.

Birmingham 17,345,989 17,325,075 .69d.

Glasgow See note (3) above.

Manchester5 10,243457 10,243,457 .84d.

Leicester 6,052 369 See note (6) above.

London— butts .... 378,025 378,9264 73.94d.

Newcastle— tons ... 2,436.2 2,436.2 £12— 6--5

Sheffield— tons 3,251 3,251 10—7—6

The other by-products were only of minor importance.

I 41. What were the provisions of the contract between the com-
pany and city for public lighting? (See inquiry 12.)

Municipalities. Inquiry not applicable.
Companies. No contract. (See inquiry D 15.)
I 42. Public lighting.

1 This amount does not always equal the amount used plus the
amount sold, as the stock on hand may not always be the same at the
beginning as at the end of the year.

' These figures are all for cubic yards, not tons.

•Amount not given; sold to contractors who took the whole supply
and also the ammoniacal liquor.

* Worked up with ammoniacal liquor in the chemical plant

"Converted into sulphate of ammonia.

•Utilized by conversion into sulphate of ammonia and then sold.

GAS FINANCE. 225

Number of

Number Incan- Hours

Towns. of Lamps. Ordinary. descent. Lighted.

Birmingham 20,653 10,989 9,664 3,900

Glasgow 26,501 8,732 17,769 3,711

Manchester 19,439 13,573 5,866 3,760

Leicester ; 5,962 3,025 2,937 3,467

London— So. M.... 22,879 1,029 21,850 4,200

Newcastle 13,109 6,287 6,822 3,777

Sheffield 10,480 3,057 7,423 3,737

I 43. Who owned the lampposts?
I 44. Give price for street lighting per M. cu. ft.
I 45. Did the prices given here and under I 2 include care, main-
tenance and renewals ?

Towns. I 43. I 44. I 45.

Birmingham City 1/0 Yea.

Glasgow City 2/1 & 3/1 No.

Manchester City 2/4 & 2/7 No.

Leicester City 2/2—3/0 No.

London— So. M. ... City Note (*) Partly2

Newcastle Company 2/0 — 3/5 Partly

Sheffield City 1/4 & 1/2 No.

Birmingham. The gas department has charge of the public
lamps and spent £3,295 during the year for lighting and repairing.

Glasgow, Leicester. A separate department owns the lamp-
posts and maintains, cleans, lights and extinguishes the lamps.

Manchester. The gas department has entire charge, and
charges the city the actual cost of maintenance, etc.

London — So. M. The local authorities only light and ex-
tinguish.

Newcastle. The company has full control and does all the
work, the city paying the actual cost.

Sheffield. The city does all this work at its own expense.
I 46. Were a budget of the estimated receipts and expenditures
and an appropriation made up annually ?

Municipalities. The several committees of the council pre-
pared each year an estimate of the money which they anticipate
will be received and required during the forthcoming year. Where
the department contributes toward the general rate of the city, the
estimated contribution was deducted in arriving at the tax rate
to be levied. The control of the actual expenditure was entirely

1 Prices vary from £2 9s. 2d., for a small-sized burner, to £3 4s. 5d.f
for a larger-sized burner, per annum for a Kern incandescent burner,
including cleaning, maintenance and repairs as well as the gas fur-
nished.

a The price includes cleaning, repairs and maintenance, but the
local authorities must light and extinguish.

Vol. III.— 16.

226 NATIONAL CIVIC FEDERATION.

in the hands of the committee having charge of the undertaking,
and it was not debarred from exceeding the estimate.

Companies. The expenditure was solely in the hands of the
directors to act as they thought fit.

J— SHARE AND LOAN CAPITAL.
J 1. Share capital.

Municipalities have no share capital.
Amounts. London — So. M. Newcastle. Sheffield.

Authorized , £6,761,324 £2,857,571 £868,482

Called up ,. . 6,250,000 2,229,816 868,482

Uncalled 461,224

Unissued 627,755

Fully paid l 6,250,000 3 2,229,816 2 868,418

Number of shareholders. 15,000 (?) 1,369

J 2. Explain how share capital was issued.

London — So. M. The manner in which the stock was issued
is fully explained in the special acts relating to the company.
The company has received in cash for shares issued,

excluding premium - £2,965,000

and has added on conversion of capital from 10 to 4

per cent 3,285,000

6,250,000

being amount on which dividend is now payable.
The capital unissued is made up as follows :

Amount authorized by Act of 1901 £750,000

Deduct premium received on issue of part. . . 50,000

£700,000

Cash received being par value of stock is-
sued, including above 238,776 461,224

6,711,224
Add premium (above) 50,000

Total amount authorized per accounts £6,761,224

The directors from time to time have given the consumers the
option of investing in the company's stock at the market price;
and at December 31, 1905, the consumers had invested about
£1,250,000. At that date the price of £100 stock to consumers
was £130.

1 There is apparently a discrepancy of £50,000 here, for the sum
of the paid, the uncalled and the called up capital does not equal hy
this amount the sum authorized. But the amount authorized includes
premiums, of which there are £50,000, but as no share capital may
be issued for them, they do not appear here.

* Arrears of £64.

* Includes premiums added on conversion ; see J 2.

GAS FINANCE. 227

Newcastle. The above amount of capital is made up aa
follows :

Paid up in cash > £1,108,487

Stock added on conversion from 7 per cent to 3^, per

cent 777,571

Premiums received on issues of stock 343,758

£2,229,816

The original capital was issued with a maximum dividend of
7 per cent, but in 1901 the dividend was reduced to 3£ per cent,
and the nominal capital was doubled, being increased by £777,571
This amount appears on the asset side of the published
accounts of the company as an application of part
of the capital on the liability side. Under Act of
1873 there was added to the share capital on con-
solidation of stock 48,571

This amount was not shown separately in the published
accounts, but was included in the amount of capital
expended on works.

These two items amount to £826,142

The company has received premiums as follows :

On share capital £369,735 -,

On debentures 23,278 £393,013

Leaving a balance of £433,129

which represents the amount appearing as owing to share and loan
holders which has not been paid for in cash. We have included
this amount on the asset side of the balance sheet in the Schedule,
after the actual assets.

Sheffield. The ordinary stock of the company was issued at
par to shareholders, with the exception of £6,585 not taken up by
shareholders, which was sold at auction and realized a premium of
£9,212 which was treated as capital.

J 3. Loan capital. (Debenture stock or mortgages are analagoua

to bonds in the United States).

Towns. Authorized. Issued. Paid Off. Outstanding.

Birmingham £3,008,949 £2,908,949 £666,561 £2,242,388

Glasgow 3,615,000 2,389,310 44'0,454 1,948,856

Manchester1 2,400,640 2,291,550 1,045,734 1,245,816

Leicester 1,548,759 1,184,959 89,158 1,095,801

London— So. M.... 2,048,994 1,895,445 . ., 1,895,445

Newcastle 700,325 429,302 429,302

Sheffield 200,000 50,000 50,000

J 4. Explain how loan capital was issued.

1 These figures are for the period from 1843 and 1905. They do
not include the years prior to 1843.

228 NATIONAL CIVIC FEDERATION.

Birmingham. The amount authorized consists of the fol-
lowing :
Annuities capitalized at 25 years' purchase, authorized

at time of purchase £1,275,295

Birmingham municipal 3y2 per cent stock 416.718

Mortgages 500,375

Birmingham municipal bills 50,000

Total outstanding £2,242,388

Borrowing powers unexercised ..../.... 100,000

Annuities redeemed, stock cancelled or transferred and

mortgages repaid from Sinking Fund 666,561

Total amount authorized £3,008,949

The municipal bills were repaid by the issue of mortgages of
in 1905-6.

Glasgow. Amount authorized is made up of perpetual an-
nuities of £415,000 as described below, and loans of £3,200,000.
On the transfer of the undertaking to the city, the share capital
of the companies amounted to £415,000. This capital was satis-
fied by the issue of annuities corresponding in amount to the
dividends payable.

9 p.c. 6% p.c.

Amount of original stock £300,000 £115,000

Redeemed at a premium 32,469 11,840

267,531 103,160

Converted into 3 per cent city stock. . 69,152 28,805

Leaving outstanding ... . 198,379 74,355

Together , £272,734

which will have to be redeemed or converted at the market value,
involving an increased liability of £409,265 which is not included
in the accounts.

The premiums paid and satisfied by the issue of 3 per cent
stock amounted to £251,783, and this sum appears in the assets.
In the published accounts this premium is shown as £174,311,
but in addition to this amount a further sum has been
paid which has been charged to sinking fund of £77,471

Together 251,782

to which should be added the above amount of 409,265

making a total premium to be dealt with of . ., £661,047

Manchester. The loan debt at March 31, 1905, consisted of:

Loans for short periods repayable before 1916 £774,468

Loans at 3 months' notice 10.000

Loans at 6 months' notice 5,000

Consolidated stock 456,347

£1,245,815

GAS FINANCE. 229

The loans for periods of years or at 3 or 6 months' notice
were obtained by public subscriptions after advertisement in local
newspapers. Commissions were paid by the municipality to agents
introducing loans at the rate of .05 of 1 per cent for each year
the money is held by the city. This commission was charged
against revenue, and in 1905 amounted to £269 18s. 2d. The
consolidated stock was issued by public subscription in the way
described above.

Leicester. The issue of the original 3^ per cent redeemable
etock was made in lump sum to the Leicester Gas Company in
1884 to convert the 4 per cent debenture stock that was issued
when the undertaking was first taken over. All subsequent issues
of stock have been put up for sale at par or at a certain price
by the borough treasurer, and anyone could subscribe for them.

London — 80. M. Under the Act of 1896 the company waa
authorized to convert the 5 per cent debenture stock into 3 per cent,
and the amount was then increased by £566,666.

Newcastle. By auction or public tender.

Sheffield. The debenture stock of the company must be sold
at auction, premium, if any, going to capital account. The sale
of £50,000 4 per cent debenture stock yielded £60,494.

J 5. If funds have been secured from any other sources for the
construction and extension of plant, give amounts, dates
and sources fully.

In only one case is this separately shown in the balance sheet,
but where it is not so shown it is quite possible that extensions
have been made out of revenue and charged to ordinary main-
tenance without being separately distinguished. In this connection
it is important to bear in mind that while some municipalities
have not charged their revenue with outlay of this character, yet
they are repaying by means of sinking fund which is charged to
revenue, the whole of the capital which has been borrowed with
the sanction of the central government for the purpose of making
the outlay.

Manchester. Up to the present date the following outlay on
capital account has been provided out of revenue in cases where
borrowing powers had not been granted:

Carbureted water gas plant £83,719

Whitworth street depot 4,467

Chemical works 9,137

It appears that this city as well as others has charged outlay
upon capital accounts to their current revenue account, and that
this capital outlay does not, except in the above instances, appear
in their balance sheet.

Newcastle. By temporary loans and overdraft from bank.
Sheffield. There have been expended £23,694 for capital out-
lay from earnings.

230 NATIONAL CIVIC FEDERATION.

J 6. How has working capital been secured?

Companies generally have authority to raise money by the
issue of capital stock and loans to provide working capital, but
municipalities occupy a different position. A municipality has to
obtain a special act or a provisional order to carry out certain
definite works, and the borrowing of money for this purpose is
authorized by Parliament or the central authorities, but no pro-
vision is made for working capital. As the Local Government
Board does* not approve of municipalities borrowing from banks,
the only manner in which they can provide working capital is
either to levy a rate tax for this purpose or to charge such a price
as will allow it to accumulate profits to be used for this purpose.
The following paragraphs show how working capital has been se-
cured in each instance.

Birmingham. The sinking fund unapplied and the superan-
nuation fund are represented by investments and cash in the
Treasurer's hands. The reserve fund is specifically invested, but
there is in the bank on capital account the sum of £344,609 which
has not yet been applied to capital purposes.

The assets representing working stock, etc., are :

Sundry debtors £255,190

Stock of stores, etc 180,930

Cash in hand 2,726

Consols invested 500 £439,346

From this deduct:

Creditors on revenue a/c £70,210

Amount in aid of rate. .. .*. 50,526

Interest accrued 5,622

Annuities accrued 13,078 139,436

£299,910
Deduct also contingency fund 2,000

Leaving amount owing to bank on revenue a/c. £297,910

Glasgow. The debts owing to the undertaking and the stocks
on hand amount to £184,280, which is provided by money bor-
rowed on temporary loans, bank overdraft, customers' deposits and
unpaid accounts, amounting to £175,037.

Manchester. The special acts governing the undertaking do
not provide for the raising of borrowed money for purposes of
working capital. This has been provided as follows :

Profits accumulated in reserve fund £147,608

Loans raised but not spent on capital outlay. . 18,742

£166,350

GAS FINANCE. 231

Leicester. This city has no power to borrow money for pnr-
poses of working capital. The capital locked up in debts owing

to. the plant, stores, etc., amounts to. . . £139,080

As against which the plant has current liabili-
ties amounting to £89,109

And intends to apply in aid of rate 43,467 £132,576

Leaving net £6,504

which is the amount of loans and surplus unexpended on works.

London — So. M. Working capital is £540,550.

Share capital £6,250,000

Loan capital 1,895,445 £8,145,445

Less nominal amount added on conversion of

stocks — less premiums 3,048,891

£5,096,554
Deduct capital outlay 4,865,143

£231,411
And add surplus and other funds 309,139

£540,550
This amount is made up as follows:

Cash at bank and in hand £47,928

Stores on hand 383,306

Debts due to company 428,451

Investments (as against funds above) 223,617

Monazite Sand account 24,139

£1,107,441

Less sundry creditors , £396,891

Temporary loan ; 170,000 566,891

£540,550
Newcastle. The working capital is £101,964.

Stock of stores account £37,922

Debts owing to plant 142,257 £180,179

Less creditors 78,214

£101,965
This is provided as follows :

Share capital £1,886,059

Loan debt 406,025

Bank overdraft 63,686

Temporary loans 43,291

£2,399,061
Deduct capital outlay 1,941,504

£457,557

232 NATIONAL CIVIC FEDERATION.

Deduct premium account £433,129

Less reserve fund £60,000

Less profit and loss account
balance 17,537 77,537 355,592

! £101,965

Sheffield. The working capital is £60,278.

Share capital £868,482

Debenture stock 50,000 £918,482

Add premium account. ., £19,706

Profit and loss balance account 83,972 £103,678

£1,022.160
Deduct capital outlay 961,882

£60,278
This is made up as follows :

Cash at bank and in hand £58,135

Stock of stores, etc 42,602

Amounts due the company by sundry persons. ... 115,341

£216,078
Less sundry creditors 155,800

£60,278

J 7. What provisions have been made for payment of capital
liabilities when due?

See inquiries D 25, I 27, 1 28 and I 33.
J 8. Give the cash capital raised by the undertaking.

In the following table all items of premium added on conver-
eion of capital stock or loans to a lower rate per cent have been
eliminated from the liabilities as shown in the balance sheets below.
We have added to the capital stock and loans appearing in the
balance sheets all items of premiums received on issue of the
same which have been credited to premium capital amount or
reserve or other funds in the accounts of the plant. We have
also where possible deducted from the capital outlay (as shown in
the balance sheets) all items of premium and good will which are
thus included.

In municipal plants we have added to the loan debt outstand-
ing the amount of loans actually repaid out of sinking fund in
order to arrive at the original capital raised for purposes of the
undertaking. This is the only way in which the capital raised by
municipalities can be compared with the capital raised by private
companies, in which latter case no repayment of capital is required
to be provided out of revenue.

Towns.

GAS FINANCE. « 233

Loan Capital Raised. Capital Total Total

Still Out- Repaid by Stock Capital Capital

standing. Sinking Raised. Raised. Expended

Fund. on Works.

£ £ £ £ £

Birmingham 12,242,388

Glasgow "1,948,856

Manchester "1,245,816

Leicester 1,095,801

666,561 2,908,949 '2,566,904

4440,454 2,389,310 3,592,728

1,201,814 2,447,630 §2,506,136

89,158 1,184,959 1,001,633

Municipalities

6,532,861 2,397,987 8,930,848 9,667,401

London— So. M... 1,574,696 3,521,858 5,096,554 4,865,143

Newcastle 429,303 1,429,651 1,858,954 1,941,504

Sheffield 60,494 877,694 938,188 961,882

Companies 2,064,493 5,829,203 7,893,696 7,768,529

Total 8,597,354 2,397,987 5,829,203 16,824,544 17,435,930

It will be noticed from the above table that the municipalities
have expended more capital than they have raised. This arises
from the fact that in many cases the surplus funds provided out
of revenue have been used in extension of works. In the case of
private undertakings the capital expenditure is less than the capital
raised. This is explained by the fact that private undertakings
employ part of the capital raised in providing working capital.

K— ASSETS AND LIABILITIES.

(See following page.)

1 The loans raised include the value of the annuities capitalized at
25 years purchase only.

' In all instances the capital outlay is stated at the original cost
except in the cases of Birmingham and Manchester, where the values
are those after deducting depreciation.

* The loans raised include the annuities capitalized at the face value
of the stock in the old company.

4 This amount does not include £77,471, part of premium on
redemption of annuities charged to sinking fund.

'This sum includes the par value only of the irredeemable stock.
(See K 6.)

234

NATIONAL CIVIC FEDERATION.

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GAS FINANCE. 235

K 3. Analyses of special items where possible.

In some cases it is impossible to obtain any detailed analysis
except as to works undertaken by the municipality. This difficulty
arises from the fact that the municipality has purchased from the
private company at a lump sum, and also in the case of private
undertakings that they have purchased from other companies or
have been formed by the amalgamation of two or more companies.

Birmingham. "Capital Outlay" is composed of:

Land (works and offices) £269,415

Buildings, plant, machinery, gas holders, etc 1,735,215

Street mains and service pipes 341,970

Meters 220,304

£2,566,904

The whole amount of Parliamentary expenses has been written
off against surplus profits in previous years.

"Accounts due" is made up of:

Gas and fittings /. £181,638

Coke and residuals '. 20,882

Sick fund 305

Sundry accounts 52,365

£255,190

The "sinking fund" unapplied is in respect of annuities only.
It is credited with the installments out of revenue and debited with
annuities redeemed, including the premiums paid above 25 years'
purchase, at which figure they are included in the liabilities of
the plant.

Glasgow. "Capital Outlay" is made up of :

Original cost of stations and works, including land £2,076,356

Land at Pollokshaws , 1,764

Property in Partick 4,231

Workshops, Sterling Street .; 32,436

Offices, Virginia Street 9,726

Chemical Works , 111,826

Workmen's dwellings, Dawsholm 4,396

Pipes and cost of laying 788,064

Gas meters , •. . 471,545

Gas stoves, etc 91,212

^Counting House furniture ,. 1,172

Total £3,592,728

The assets do not include any figure in respect to Parliamen-
tary expenses. They have been charged against the profit and loss
accounts as follows: 1870, £14,480; 1871, £630; 1891, £597; 1891,
expenses of Boundary Commission, £3,105; total, £18,812.

236 NATIONAL CIVIC FEDERATION.

Manchester. "Capital Outlay" is composed of:

Land £253,078

Buildings 500,341

Manufacturing equipment and holders ? 14,843

Street mains and service pipes 629.691

Meters £73,878

Stove show room and cottages , 19,993

Gas stoves, etc 114,312

£2,506,136

Leicester. "Capital Outlay" is composed of the following:

Land, Thurmaston £26,469

New town offices 19,272

New town workshops 2,652

Meters . 139,919

Aylestone Eoad works - 415,659

Belgrave Gate works, etc «. . 375,352

£979,323

"Parliamentary Expenses" includes expenses of conversion of
4 per cent debenture stock in 1884 of £10,755.

London — So. M. "Investments": —

Reserve fund £174,305

Of which there is still to be invested 73,932

Now invested £100,373

Renewal fund 23,962

Amount uninvested 2,525

Invested 21,437

Insurance fund 105,189

Less amount uninvested 3,382

Amount invested £101,807

The Monazite Sand Suspense Account amounts to £24,140 —
the cost of property in the United States which has been worked
by the company to obtain material for making incandescent gas
mantles. The directors give full particulars of this investment in
their report of June, 1905.

"Accounts Due" is made up of:

Gas meter and stove rental for last quarter of year £301,550

Arrears outstanding 1,266

Maintenance of lamps, etc 10,369

Coke and other residual sales 40,111

Sundry accounts 9,051

Deferred payment purchases of gas fittings and appli-
ances 53,912

Alterations of street lamps 1,678

Hire purchase appliances , 10,513

£428,450

GAS FINANCE. 237

Under the Act of 1896 the 10 per cent capital stock of the
company was converted into 4 per cent stock, and the nominal
amount increased by £3,285,000

Under the same Act the 5 per cent debenture stock
was converted into 3 per cent stock and the nominal
amount increased by 566,666

Thi« amount of £3,851,666

was added to the assets side of the balance sheet,
although not represented by any actual asset.

As against this item the company has received pre-
miums as follows :

On share capital £556,858

On debentures 245,917 802,775

Leaving a balance of £3,048,891

which is the amount appearing as owing to share and loan holders
which has not been paid for in cash. We have included this
amount on the assets side of the balance sheet, after the actual

assets.

Newcastle. "Capital Outlay" equals:

Land , £95,617

Buildings, holders, plants, etc. . \ 836,275

Mains, services and lamps 755,978

Meters, ordinary 60,406

Meters, prepayment 69,796

Cooking stoves, ordinary .«.. 37,406

Cooking stoves, prepayment 56,434

Gas fires 761

Parliamentary charges 13,347

Expenses issuing stocks ] 1,355

Capital duty 4,129

Redheugh Bridge Co 10,000

£1,941,504

The company owns one-half of the capital of the Redheugh
Bridge Co., the remainder being held by the water company.

On the conversion of the ordinary share capital under the
Act of 1901 from 7 to 3y2 per cent, the nominal capital issued
was increased by the sum of £777,571. Against this the company
has issued shares and debenture stock at premiums amounting in
the whole to £393,013, reducing the amount to £384,558. To
this sum should be added £48,571, issued at time of consolida-
tion in 1873, making in all £433,129. This amount is included
in the assets; but it is not represented by any actual asset except
the profit earning capacity of the works as a going concern.

238 NATIONAL CIVIC FEDERATION.

The above amount of premiums, £393,013, is not a liability
of the company repayable to those persons who paid it. It is not
entitled to dividend. In the case of a winding up of the com-
pany, it would be represented by the general surplus assets of the
company and be distributed pro rata among the whole of the share-
holders.

"Accounts Due" is composed of:

Gas rentals £86,183

Residuals , 24,179

Meters, etc 24,171

Street lighting 3,866

Fittings, etc 3,858

£142,257

K 4. Do the values above given represent the original cost of the
present assets, their present market value, or cost of
duplication ? State how values were fixed.

Birmingham. Their present book value. The value of build-
ings, plant, machinery and gas holders is depreciated each year
and the values reviewed from time to time. In this connection it is
important to trace the exact procedure with regard to depreciation
and valuations:

The total expenditure to March 31, 1904, was £2,553,763

The outlay for year ending March 31, 1905 74,373

£2,628,136

There was deducted in 1904-5 :

"Buildings and plant abandoned, plant transferred to
stock, etc." , 61,232

Leaving balance at March 31, 1905 £2,566,904

This deduction of £61,232 being a credit to capital outlay
should be debited to either revenue or reserve fund, but it does not
appear separately in either account. It is included in the items
of maintenance in the revenue account.

Glasgow. Original cost. The depreciation written off is in-
cluded in the liabilities as a credit to the depreciation fund.

Manchester. Original cost, less depreciation charged off until
1891 ; since then original cost.

Leicester. Above values represent original cost except gas
stoves, etc., which have been depreciated.

London — So. N., Sheffield. Original cost, except meters and
stoves which have been depreciated.

Newcastle. Original cost.

GAS FINANCE.

239

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240 NATIONAL CIVIC FEDERATION.

K 6. Special items analyzed where possible. (See also I 27, 28.)

Municipalities. Three of the four plants had bank overdrafts.
This might appear misleading unless attention is drawn to the
fact that in two of these cases the municipality had cash to its
credit in the bank on other accounts, and that the subdivision waa
merely an accounting convenience in order to keep each fund
distinct. These overdrafts were as follows: —

— Overdraft on — Set off against cash in bank.
Capital Revenue On what

Town. Account. Account. Account Amount.

Birmingham £297,910 Capital £344,609

Glasgow 2,411 Sinking Fund 29,572

Leicester 15,969

Birmingham. For analysis of loan debt, see inquiry J 4.
The liabilities in respect of annuities should be increased by any
premium which, may have to be paid, above 25 years' purchase,
on redemption of the above annuities. We estimate this at
£348,560.

"Sundry Creditors" (£167,959) is composed of:

Capital Account • £2,564

Revenue Account 70,210

City, in aid of Rate , 50,526

Superannuation Special Account 25,959

Interest accrued 5,622

Annuities accrued 13,078

The sinking fund (£67,060) is invested as follows:

Croydon Municipal Stock — 3 per cent , £9,566

Leeds " " —3 per cent 9,350

Bristol " " —3 per cent 7,874

Reading " —3 per cent , 14,270

Indian Government 3 per cent Stock 9,938

Balance in hands of city treasurer 16,062

This amount is in respect of annuities only. The whole of the
sinking fund set aside in respect of mortgages and stock has been
applied in the extinction of debt. The secretary of the under-
taking informs us that the statutes governing the plant give the
municipality the very exceptional period of 80 years in which to
repay the loan debt. It is obvious that this period is very much
in excess of the possible life of any gas plant. The municipality
have adopted this view and is setting aside out of revenue such
annual instalments as will repay the loan debt in 33 1-3 years
instead of in 80 years, thus bringing their practice in line with
the more recent obligations imposed by statute upon other munici-
palities. This excess provision is sufficient to satisfy the Local
Government Board that the municipality is justified in charging
against the sinking fund actually provided out of revenue, the
premiums paid on redemption of annuities above 25 years pur-
chase (at which rate they are included in the liabilities of the
undertaking). We have gone very carefully into the matter and

GAS FINANCE. 241

are satisfied that the municipalities have complied with their statu-
tory obligations as to sinking funds, which have been approved by
the Local Government Board.

Glasgow. The amount of loan debt secured — £1.948,856 —
includes only the face value of the securities. On a 3 per cent
basis, the liability would be increased £409,265.

The item of £517,925 represents the actual amount redeemed
out of sinking fund, but £77,471 were used to pay premiums on
annuities redeemed, so that loans actually retired amounted to
£440,454. The city has set aside more than the amount required
by statutes — in several years as much as 5 per cent.

Manchester. The loan debt outstanding is made up of:

Loans £789,469

Consolidated stock, 4 per cent. 430,991

Consolidated stock, 3 per cent 25,356 £1,245,816

The 4 per cent is irredeemable and is quoted at a premium.
As the sinking fund is calculated on the nominal amount of the
stock only, the premiums on stock redeemed are not provided for
by the sinking fund but will have to be met out of future revenue.
This will involve a liability estimated at £92,029, which is not
included in the above amount.

"Sundry Creditors" is made up of: Interest accrued,
£16,009; and unpaid accounts, £63,740; total, £79,749.

Leicester. "Sundry creditors" (£71,943) is composed of:

Tradesmen £39,817

Workmen's saving fund 13,997

Accrued interest 18,129

London — So. M. "Sundry creditors" is composed of items : —

Unpaid interest £27,010

Sundry creditors (mdse. accounts) 77,843

Dividend account outstanding 2,053

Dividend to December 31, 1905 171,875

Debenture interest to December 31, 1905. 22

Workmen's bonus and saving fund , 65,597

Officers' superannuation funds ,. . . . 30.943

Newcastle. Deposits were deducted from accounts owing.
"Sundry creditors" (£78,214) is made up of:

Tradesmen £31,090

Unpaid dividends 40,374

Interest 6,750

Sheffield. "Sundry creditors" (£155,800) is equal to:

Tradesmen £108,073

Accrued interest 1,000

Unpaid dividends 46,757

242

NATIONAL CIVIC FEDERATION.

L. REVENUE ACCOUNTS.

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GAS FINANCE.
L4. Revenue account. — Debits.

243

Expenditures
Manufacturing expenses.
Distribution expenses...
General expenses

Birmingham. Glasgow. Manchester. Leicester.

£594,792 £524,196 £358,372 £134,398

50,671 73,157 101,996 27,579

14,603 23,059 25,305 7,475

Total £660,066 £620,412 £485,673 £169,452

London — So. M. Newcastle. Sheffield.

Manufacturing expenses £1,019,371 £203,931 £183,650

Distributing expenses 188,070 28,662 27,051

General expenses 126,496 19,273 14,844

Total £1,333,937 £251,866 £225,545

The following notes are to Table L 3 on p. 242 :

'This item is made up as follows:

2,700,450,900 cu. ft. at 2/6 £337,556

1,398,129,200 cu. ft. at 2/3 157,290

1,164,060,600 cu. ft. at 2/0 116,406

722,101,200 cu. ft. at 1/10 66,193

£677,445

Deduct: Adjustment of stock 725

Discounts and adjustments 23,119 23,844

Net total £653,601

Those paying 1/10 per M. cu. ft. consumed over 1,000,000 cu. ft.
per quarter or used gas for power; the others used it only for lighting
and less than 1,000,000 cu. ft. per quarter.

1 After deducting labor and cartage.

•The gas sold for lighting was as follows:

1,005,828,700 cu. ft. at 2/4 £117,346

15,859,500 cu. ft. at 2/8 2,114

19,383,200 cu. ft. at 3/0 2,907 £122,367

The sales for power were:

115,628,800 cu. ft. at 1/6 £8,672

2,038,100 cu. ft. at 1/10 186

117,324,700 cu. ft. at 2/0 11,732

3,313,900 cu. ft. at 2/2 334

1,824,500 cu. ft. at 2/4 212

3,283,900 cu. ft. at 2/8 436 £21,572

4 The receipts from prepayment meters were:

437,829,800 cu. ft. at 2/91-3 £60,810

5,312,400 cu. ft. at 3/1 818

10,416,300 cu. ft. at 3/6 1,823 £63,451

'No stoves were sold. This item includes the profit on setting
meters and on other work in consumers' houses beyond meter.

* Dividends from Redheugh Bridge Co.

T Hire of railway wagons. § Sale of waste lime.

244

NATIONAL CIVIC FEDERATION.

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246

NATIONAL CIVIC FEDERATION.

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GAS FINANCE. 247

M 4. Analysis of special items.

Glasgow. Since 1876 the city has had no power to spend profit
in aid of rates (see inquiry D 15), but the following amounts have
been paid to the city for specific purposes :

1881 £5,000

1883 6,000

1884 333

1886 5,000

1889 3,000

1890 2,000

Since 1900 no part of the profits of the undertaking has been
applied to the general purposes of the corporation.

London — 8. M. Since December, 1901, under the company's
special act of 1900, the standard dividend has been 4 per cent, and
the standard price 3s. Id. per 1,000 feet, with an increase of divi-
dend of 2s. 8d. per cent for every reduction in the price of gas.
The following table shows the price of gas and the corresponding
dividends to which the shareholders would be entitled :

Price of Gas. Dividend Authorized.

3s. Id. £4— 0—0

2s. 8d. 4_13_4

2s. 4d. 5— 4—0

2s. 3d. 5— 6—8

2s. Id. 5—12—0

2s. Od. 5—14—8

The company has not always paid the full dividend to which
it is entitled, as appears by the following table, which shows
each half year from 1901 to 1905 the amount the company was
entitled to pay and the amount actually paid : —

Dividend. —

Date. Price of Gas. Payable. Paid.

1901— June 2s. 8d. £5— 0—0 £5— 0—0

December 2s. 8d. 5— 0—0 5— 0—0

1902— June 2s. 3d. 5— 6—8 5— 6—8

December 2s. 3d. 5— 6—8 5— 6—8

1903— June 2s. 3d. 5— 6—8 5— 6—8

December 2s. 3d. 5— 6—8 5— 6—8

1904— June 2s. Id. 5—12—0 5—10— 0

December 2s. Od. 5—14—8 5—10—0

1905— June 2s. Od. 5—14—8 5—10—0

December 2s. Od. 5—14—8 5—10—0

The dividends paid in 1905 were free of income tax; that is,
the income tax had been paid and included in the item of "taxes"
in the accounts.

Sheffield. The dividends of £86,848 included income taxes of
£6,052 ; that is, the shareholders received net £80,796. This amount
of £6,052' is not included in the item of "taxes" in the above
accounts.

GENERAL HISTORY AND LEGISLATION

British Electricity Supply Works

(Schedule I)

By MILO R. MALTBIE

Sources: As Schedule I. relates principally to the statutory
and legal provisions affecting the undertakings examined, the most
important sources are the acts of Parliament and judicial deci-
sions. Of almost equal value are the Sessional Papers, especially
in those instances where special reports have been made by select
committees of Parliament, and where the evidence has been printed
in full (London principally). Occasionally a verbatim report
of the proceedings before a Parliamentary committee when a pri-
vate bill affecting the undertaking, usually for the grant of powers
or the extension of capital, may be found, but ordinarily no record
is kept, and when printed they are issued by the city or the com-
pany itself.

The records, reports and documents of the city department
or of the company, as the case may be, often contain much of value,
especially those issued when the undertaking was started or when
changes in management were actually made or mooted. In the
case of municipal plants or when a transfer of the undertaking
from the company to the city is being considered, the council min-
utes are useful.

The principal secondary sources which are of such high stand-
ing as to be recognized as authentic in every respect, are :
Hudson, editor: "The Manchester Municipal Code." 6 vols.
Hope : " Handbook compiled for the Congress of the Royal Insti-
tute of Public Health" (Liverpool).

Bell and Paton : " Glasgow : Its Municipal Organization and Ad-
ministration."

Corporation of Glasgow : " Handbook on the Municipal Enter-
prises."
Garcke : " Manual of Electrical Undertakings and Directory of

Officials." 10 vols.
Eawlinson & Johnston : " The Municipal Corporations Acts and

other Enactments " 9th Edition.

The Electrician : " Electrical Trades' Directory and Handbook."
24th year.

HISTORICAL AND GENERAL. 249

Will : " The Law Eelating to Electric Lighting, Traction and
Power." 3d Edition.

In each town, there is usually a considerable amount of pam-
phlet and periodical literature which throws some light upon, the
situation.

To supplement the data obtained from the above sources, in-
terviews were had with the principal city officials, officers of the
companies, American consuls, and citizens connected in no way
with the company or the municipality.

Principal Acts of General Application.

Companies Clauses Consolidation Acts, 1845-1889.

Companies Acts, 1862-1900.

Lands Clauses Consolidation Acts, 1845-1895.

Borough Funds Act, 1872, c. 91.

Local Loans Act, 1875, c. 83.

Public Health Act, 1875, c. 55.

Municipal Corporations Act, 1882, c. 50.

Employers' Liability Act, 1880, c. 42.

Local Government Act, 1888, c. 41.

Workmen's Compensation Acts, 1897, c. 37, and 1900.

Electric Lighting Acts, 1882, c. 56 ; 1888, c. 12 ; 1899, c. 19.

Electric Lighting (Scotland) Acts, 1890, c. 13; 1902, c. 35.

Acts Applicable to London Only.
London Overhead Wires Act, 1891, c. LXXVII.
London Government Act, 1899, c. 14.
Metropolitan Superannuation Act, 1866, c. XXXI.

Individual Undertakings.

Manchester Electric Lighting Orders, 1890 and 1896.
Manchester Corporation (General Powers) Act, 1897, c. CCXLI;

1902, c. CXXXVIII.

Liverpool Electric Lighting Order, 1896, c. XII.
Liverpool Corporation Loans Act, 1894.
Liverpool Corporation Act, 1893.
Liverpool Improvement Act, 1882.
Glasgow Corporation Electric Lighting Orders, 1890; 1902, c.

CLXXXVI; 1905, c. CXII.

Glasgow Corporation (Gas and Water) Act, 1899, c. CLXII.
Glasgow Corporation (Gas, etc.) Order, 1902, c. CLXXXV.
St. Pancras (Middlesex) Electric Lighting Order, 1883, c. CCXIX.
Newcastle-upon-Tjne Electric Supply Company's License, 1890.
Newcastle-upon-Tyne Electric Lighting Order, 1893.
Gosforth Extension Electric Lighting Order, 1900.
Walker & Wallsend Union Gas Company's (Electric Lighting) Act,

1899.
Walker & Wallsend Union Gas Company's (Electricity Capital)

Act, 1900.
Newcastle-upon-Tyne Electric Supply Company's Acts, 1900, 1902,

1903.

250 NATIONAL CIVIC FEDERATION.

Newcastle-wpon-Tyne [District] Electric Lighting Order, 1891, c.

CVI.

Newburn Electric Lighting Order, 1902.
City of London Electric Lighting (Brush) Orders, 1890, c.

CCXXXIX; 1891, c. CCXII.
City of London (East District) Electric Lighting Order, 1890, c.

CCXXXIX.

Southwark Electric Lighting Order, 1891, c. LXV.
City of London Electric Lighting Acts, 1893, c. LXXXV; 1900, c.

LXXXVIII.

City ef London Sewers Act, 1848, c. CXXXIII.
Westminster Electric Lighting Orders, 1889, 1891.
St. James Electric Lighting Order, 1890, c. CXCIV.
St. James & Pall Mall Electric Light Company's Act, 1899, c.
Central Electrical Supply Company's Acts, 1899, c. LXXXVIII;
1905, c. CLXXV.

A— HISTORICAL AND GENERAL.

A 1. Date when this undertaking began to sell electricity.

A 2. If it is a municipal plant, was current being supplied by a

private company when city began operation?
A 3. Character of original organization, whether individual, firm,

corporation, municipal or other form.
A 4. Character of present organization, whether individual, firm,

corporation, municipal or other form.

Date of
Municipalities. Date of Supply. Municipalization.

Manchester July, 1893 From origin.

Liverpool 18881 July 1, 1896.

Glasgow 18902 Inarch 1, 1892.

St. Pancras November, 1891 From origin.

Companies.

Newcastle — Supply3 . . .;January, 1890 ..

Newcastle — District3 . . .January, 1890

London — City3 December, 1891 ; . . . .

Westminster November, 1890

St. James April, 1889

Central Does not distribute current.

*.As will be seen in the answers to inquiries A 5-8, the city had
power to experiment with electric lighting as far back as 1879, and a
private company tried to operate in 1884, but not until 1888 was a general
supply begun.

* Current was being supplied to a few consumers prior to 1890, but
without legal authority. See inquiries A 5-8 below.

a These words will be used throughout the following pages to
distinguish respectively the Newcastle-upon-Tyne Electric Supply Com-
pany Limited, the Newcastle and District Electric Lighting Company
Limited, and the City of London Electric Lighting Company Limited.

HISTORICAL AND GENERAL. 351

A 5. Give date and character of changes in ownership since origin.

A 6. State method of making each change.

A 7. State terms of each arrangement.

A 8. State fuly reasons for each change.

Manchester. Apparently neither the municipality nor a pri-
vate company had seriously proposed to establish an electric light-
ing plant in Manchester prior to 1881, when the Gas Committee
of the council determined to apply to Parliament for authority to
erect a generating station and to lay mains in certain streets. Their
application was, however, denied at the instance of the President
of the Board of Trade, on the ground that no authority should be
granted by special act prior to the passage of a general law which
he intended to introduce into Parliament. After the enactment of
this measure in 1882, the City Council unanimously resolved, upon
October 25, to apply to the Board of Trade for a provisional order
authorizing the establishment of a municipal plant. The draft of
the order prepared by the city officials was not acceptable to the
Board of Trade, and the conditions which it insisted upon were
not considered by Manchester reasonable and proper. The con-
sequent deadlock resulted in the defeat of the proposal.

Within the next few years practically nothing was accom-
plished. The Board of Trade did not seem willing to recede from
its position, and the city council was equally determined. No
private company came forward with a proposal to supply the city,
and nothing was done until 1889, when six companies gave notice
to the council, as required by the statute, of their intention to
apply to the Board of Trade for the necessary authority to supply
current. • In the mean time, the gas committee, which still had
charge of the matter, had been considering the advisability of mak-
ing another attempt to secure powers, and finally recommended that
a special meeting of the council be called to consider the matter.
This was done and upon August 7, 1889, by a vote of 56 to 0, the
council decided to promote a provisional order. The following year
it was issued by the Board of Trade and approved by Parliament.
As it is still in force with certain amendments made in 1896, its
provisions will be found in the following pages.

For the first few years the undertaking was managed by the gas
committee, but in 1897 it had grown to be so large, and separate
control seemed so advisable, that a separate committee was ap-
pointed under whose management it is at the present time.

Liverpool. Electric lighting was first considered by the city
in 1878, when the city engineer was asked to report upon the ad-
visability of lighting the public streets by this method. The fol-
lowing year an act was obtained authorizing the city to carry on
experiments for a period of five years. Practically nothing was ac-
complished, and no attempt being made to have it renewed, the
act expired in 1884.

In the meantime, bids for lighting certain public places were
called for, and a private company undertook to supply current on

252 NATIONAL CIVIC FEDERATION.

a very modest scale in 1884; but the company could not make it
go and soon ceased operations. Nothing further seems to have
been done in a definite way and with any success until 1888, when
the Liverpool Electric Supply Company, Ltd., obtained a license
from the Board of Trade, with the consent of the City of Liverpool,
to supply electricity for a period of six years. The following year
this company obtained Parliamentary powers by a provisional order,
which provided among other things that the city might purchase
the system at the end of twenty-one years, from August 12, 1889.
Further powers were secured in 1891, 1892 and 1895, and the pur-
chase clauses so amended as to enable the city to take over the
undertaking as a ''going concern" on June 20, 1898, or of any
subsequent year, provided that notice of the intended purchase were
given between twelve and eighteen months before that date, or
forty-two years from 1891, without any allowance for compulsory
purchase, good will, etc. A subsequent change, due to the extension
of the city boundaries, was made fixing the earliest date at which
the city might purchase at June 30, 1900.

In November, 1894, the question of municipalization came up
and was so favorably considered that a committee of the city council
was appointed to confer with the company regarding purchase in
1895 instead of waiting until 1900. The company expressed a
willingness to consider the matter, and early in 1895 a resolution
was introduced in the city council providing for the purchase of
the undertaking upon such terms as could be agreed upon between
the private company and a committee of the council, or, failing
agreement, by arbitration. This resolution was adopted by a vote
of 29 to 13. Although the terms exacted by the company from the
city were considered rather hard, an agreement was finally reached,
embodied in a bill and enacted by Parliament, to take effect July 1,
1896. It provided for the transfer of all the powers, property and
assets of the company to the city, except the reserve and renewal
fund amounting to £18,000. In return, the city was to pay £400,-
000 and to take over every employee upon the same terms and at
the same salary as in force January 1, 1896.

Apparently no inventory nor appraisal were made of the prop-
erty transferred, but the financial statement for the year ending
December 31, 1895, was as follows:

General Balance Sheet.

DR.

To capital account £120,000

" depreciation fund account 34,316

" renewal fund account 2,532

" net revenue account 15,451

" general funds of the company 92,412

Total £264,711

HISTORICAL AND GENERAL. 253

OE.

By lands, including law charges £25,197

" buildings 23,439

" plant and machinery 54,368

" accumulators 7,959

" mains 130,379

" meters, etc 12,470

" provisional orders 1,746

. " instruments 2,778

" general stores '. 637

" purchase of patents, etc 493

" special items 5,245

Total £264,711

Assuming that the then structural value of the plant was worth
all it originally cost — £265,000 — the city paid £135,000 as a
premium. Traction and Transmission, a technical journal, stated
in 1901 that the bonus amounted to £150,000 and that shares having
a face value of £5 had been selling at about £8 4s., 64 per cent-
above par. In view of the fact that the rate of dividend was limited
to 6 per cent., that all above this amount had to go to the city, and
that the previous dividends had been 3^ per cent, for 1890, 4^ per
cent., 1891; 5 per cent., 1892 and 1893; 5^ per cent., 1894, the city
evidently was made to pay all the undertaking was worth in the
market, and possibly more.

In view of the fact that the city could purchase in 1900, what
were the reasons for taking it over in 1896 ? In the first place, it
is to be noted that the basis of valuation in 1900 was as a " going
concern," and it is very likely that the market value of the under-
taking would have been demanded by the company then, and
possibly awarded by the arbitrators. Further, as the time went on,
the rights might increase in value and a larger sum would have to be
paid. Immediate purchase seemed wise, therefore, upon the as-
sumption that the system ought to be taken over within any reason-
able time.

The principal reasons for municipalization seem to have been
the desire to secure for the city the profits of the undertaking,
the difficulties which the city had experienced in trying to get the
gas company to give better service at lower rates, the desire to have
in its own hands an alternative system of lighting which it could
use for the streets and also as a leverage for a reduction in the rates
of gas, and the general feeling that the public should control the
streets and all services using them. A programme had been framed
for the acquisition of the electric, gas and tramway undertakings,
and this was the first move in the scheme. Apparently there were
no more than the usual number of complaints regarding the char-
acter of the service or the prices charged. The average rate paid in
1895, including meter rents, was 7.1d. per Board of Trade unit—
k. w. h.

254 NATIONAL CIVIC FEDERATION.

In 1902 Liverpool acquired the Electric Lighting Order for
Allerton, Woolton and Childwall, small suburban districts formerly
outside of the city but now within its boundaries, and the under-
taking of the Garston and District Electric Supply Company, Lim-
ited, operating in an area annexed to the city in that year. The
former was obtained, of course, at practically no expense, no plant
having been constructed. The latter was a small company with a
paid-up capital of only £10,007.

Glasgow. Although a few electric light plants for private sup-
ply had previously been installed, no definite move for a general
supply was made before 1882, when it was proposed to secure Par-
liamentary powers to establish a municipal plant. This project
came to naught, and neither the city nor a company attempted to
secure statutory powers until 1890. In the meantime, the company
of Muir, Mavor and Coulson, Limited, had laid down a plant to
supply the post office and gradually added one consumer after
another until there were thirty-seven, all good consumers, taking
considerable current. Having no right to break up the streets, the
current was conveyed by overhead wires, strung from one building
to another in the very small district supplied.

In 1890, the company and the city each applied to the Board
of Trade for a provisional order authorizing a general supply. The
former shortly withdrew its application, and an agreement was made
with the city council for the purchase of its plant for £15,000. The
application of the city was granted, and upon March 1, 1892, the
city took over the plant of the company. Meanwhile the construc-
tion of a general system had been begun — a low-tension, continuous-
current, three-wire system of 200 volts pressure, upon the advice
of Lord Kelvin, to save the cost of altering consumers' installations.
Since 1893, when the new works were opened, the consumption has
increased by leaps and bounds. Upon May 31 of that year, the total
number of consumers was 108 ; in 1905, 11,643. The current gen-
erated grew in the same period from 408,529 to 21,584,088 units.

About the same time that the city started its undertaking, a
company was projected in Kelvinside, a suburban town to the west
of Glasgow and outside its boundaries. It was not considered likely
that in the near future the city plant would reach out that far, but
by 1899 the situation had changed. The tramways had been muni-
cipalized, were being electrified, and were reaching out in every di-
rection. If powers were sought to supply the tramways in Kelvin-
side with electricity from the city's undertaking, the grant would be
opposed by the company, and this opposition might be sufficient to
cause the rejection of the application. Then, too, Kelvinside was
now a part of Glasgow, and to leave this small company in a part
of its area would prevent the most economical development of the
undertaking. An agreement was made with the company and ap-
proved by Parliament in 1899. The amount paid was £37,000,
distributed as follows :

Buildings £6,916

Machinery and plant 10,116

HISTORICAL AND GENERAL. 255

Mains 16,965

Meters 841

Accumulators 2,068

Electrical instruments 41

Furniture 63

Total £37,000

Probably the city paid in each case about the structural value
of the plants.

In 1902, the Kinning Park Electric Light Order was trans-
ferred to Glasgow, but as this local authority had not started to
carry out its powers, there was no plant to transfer.

The reasons for the establishment of a municipal electric light-
ing plant are easily stated. In the first place, one needs to read the
history of the transfer of the gas works (see inquiries A 5-8 under
Gas), and see how difficult it was for the city to control these com-
panies and what large sums had to be paid, over and above the value
of the plants, to acquire the properties. The citizens of Glasgow
thought that they might easily be obliged to pass through another
such experience if they allowed private electric companies to get a
foothold. They also believed that the municipalization of the gas
works had proved very beneficial, and the question naturally arose
whether similar results would not follow the establishment of
municipal electric lighting. Further, the feeling was growing
that any undertaking requiring the use of the subsoil of the streets
and in the nature of a monopoly should be in the hands of the
municipality.

St. Pancras. The vestry of St. Pancras was the first public
body in London to obtain power to construct an electric lighting
plant and to supply current for commercial as well as public light-
ing. No change has been made in the control of the undertaking
except the change made necessary by the Act of 1899, which sub-
stituted the borough council for the vestry, when London was di-
vided into twenty-eight boroughs and a multitude of small author-
ities abolished.

Newcastle — Supply. This undertaking has been in the hands
of a limited liability company from its origin to the present. For
three years it operated under a license, but in 1893 and later secured
provisional orders and acts of Parliament. Purchase by the
municipality was considered in 1895, and Professor A. B. W.
Kennedy was appointed by the town to report upon the advisability
of doing so. He recommended that it be not done, as the rates were
low in his opinion, as there was a competing company to be pur-
chased which would make municipalization expensive, and as the
saving to the city would not be large under the circumstances.

Newcastle — District. This company is also a limited liability
company and has been so from the beginning. Under an agree-
ment with the Board of Trade and the municipality, the laying of
mains was begun in 1889, and a supply of current furnished in

256 NATIONAL CIVIC FEDERATION.

January, 1890. A license was first granted by the Board of Trade,
superseded by a provisional order in 1891. While this investigation
is being made (spring, 1906), municipalization is being considered
by the city and the company. No definite agreement has yet been
made public if any has been reached.

London — City. The Commissioners of Sewers — the local au-
thority in the City of London, having jurisdiction over matters re-
lating to public lighting prior to 1898 — had considered the question
of lighting the City by electricity for many years, and in 1889 de-
cided to divide the City into three districts — west, center and east —
and to invite bids for the privilege of supplying current, thus se-
curing competition if possible. Two of these districts — west and
center — were finally awarded to the Brush Electrical Engineering
Company, Limited, and the eastern district to the Laing, Wharton
and Down Construction Syndicate, Limited. As neither company
could break up the streets to lay mains without authorization from
the Board of Trade or Parliament, applications were made to the
Board of Trade for provisional orders enacting these agreements.
Approval was given by Parliament in 1890, and work began very
shortly thereafter.

Most of the provisions of these agreements are still in force
and are given in the subsequent pages, but a few need special notice
here. The agreements between the Commissioners of Sewers and
the companies contained a provision by which the former granted
to the latter " so far as they were able to do so," the exclusive right
of supplying electricity for private purposes within their respective
areas, but this was never incorporated in an act of Parliament.
(This clause played an important part later when competing com-
panies applied for powers. See inquiries A 14-15.) In return, the
companies agreed to the right of purchase by the public in twenty-
four years, a sliding scale for prices so that the price would be re-
duced as dividends increased above 10 per cent., and the setting
aside annually of 7£ per cent, of the capital for depreciation, and 5
per cent, for a reserve until this fund should reach one-fourth of
the capital expended. The orders also provided that the companies
might transfer their rights and properties to a new company having
no powers to supply energy within the County of London except
in the City, with the consent of the local authority and the Board of
Trade.

In 1891 the Brush company obtained statutory powers for the
supply of electricity in the area of the St. Saviour's District Board
of Works, Southwark, south of the Thames and beyond the bound-
aries of the City of London. Another order relative to certain
small areas in the City was also obtained by the company the same
year.

The two companies to whom these four orders were given were
principally construction companies and probably had no intention
of operating the undertakings. Their chief aim was to secure the
contracts for equipment. Closely following upon the completion of
the agreements, the City of London (Pioneer) Electric Lighting

HISTORICAL AND GENERAL. 257

Company, Limited, was formed to give the necessary financial
assistance to the contractors. In 1891 the City of London Electric
Lighting Company, Limited, was formed and to it were transferred
all the assets of the Pioneer company in return for a payment of
£95,000, of which £25,000 were a bonus to the shareholders for the
risk they had run.

The statutory powers under the orders of 1890 and 1891 were
likewise transferred with the consent of the Board of Trade and the
local authorities. The clauses relating to the sliding scale for
prices and dividends, and to depreciation and reserve funds were
too crudely drawn to be satisfactory, and an act passed in 1893
undertook to remedy the defects by denning capital expenditures in
some detail, by allowing the company to charge against the de-
preciation fund all expenditures for maintenance and renewals, and
by permitting the reserve fund to be used for any purpose except
the equalization of dividends. These amendments did not improve
matters, and in 1900 all the provisions regarding depreciation and
reserve funds were repealed.

Municipalization has been proposed and discussed from time to
time, especially in 1899, when there were many complaints of in-
efficiency of the service and of high charges, and when a competing
company was authorized to lay mains throughout the City chiefly
because of the numerous complaints. Since then one of the chief
objections to municipalization has been the great cost which the
purchase of the duplicate systems of the competing companies would
involve. Of recent years the relations between the company and
the City Corporation, which succeeded to the powers of the Com-
missioners of Sewers, abolished in 1897, have not been entirely
amicable. In the early years of the company the relations were very
close, so close, indeed, that two of the contracts for public lighting
were declared null and void by the courts. The facts brought
forth in the litigation and in the reports made by agents of the
central government were as follows :

When the contracts for street lighting were made between the
local authority and the Brush company for the western and central
districts, several suspicious circumstances caused public comment.
Nothing definite was ever established except that commissioners of
sewers and city councillors and aldermen were shareholders in the
private company, and that even the lord mayor held stock. It was
also shown that after the signing of the contract with the L. W. &
D. syndicate and the transfer of the powers of the construction
company, commissioners and councilmen were stockholders in the
new company. These facts were first brought out authoritatively
by a report to the Board of Trade in 1899, when the opinion was
expressed that these facts made the contracts illegal under section
42 of the City of London Sewers Act of 1848, which provided that
no person being a commissioner, councillor or alderman of the City
should be directly or indirectly interested in any contract with the
local authority upon pain of having such contract declared null
and void and himself fined £100.

Vol. III.— 18.

258 NATIONAL CIVIC FEDERATION.

No move was made to invalidate the contracts, however, until
a few years later, when disagreements arose between the company
and the City Corporation and suit was brought to have the contracts
annulled. The case was finally carried to the House of Lords, and
a decision rendered in 1903 which declared null and void the two
contracts for the western and central districts and upheld the legal-
ity of the one for the eastern district. The distinction made was
that in the former case, shareholders were members of the local
authorities at the time the contracts were made, a condition clearly
prohibited by the Act of 1848; while in the latter case, there was
no such illegal condition at the time the contract was made. Hence
this contract was legal at the time of making, and the fact that com-
missioners or councilmen became shareholders afterwards did not
invalidate it, as such status was not prohibited by the Act of 1848.
The eastern contract is still in force although the City has tried
to get rid of it.

Westminster, St. James and Central Companies. Each com-
pany is organized under the Companies Acts and its liability is
limited. There has never been any definite plan for municipaliza-
tion. The Central company is a supply company; it does not dis-
tribute current except to the Westminster and St. James com-
panies, which take its entire output and control all of the share
capital equally between them. The debenture stock is largely held
by outsiders.

This status grew out of the need of these two companies for
additional plant. Each had about reached its maximum output and
could not increase its plant without great expense for land. Each
occupied an area where real estate was so valuable that a new site
could be secured elsewhere at a much lower cost. Each did not
need a large additional supply immediately, and it was evident that
one central station could supply their needs much more cheaply
than two separate stations ; also, their districts were contiguous. It
was finally agreed, therefore, to apply to Parliament for powers to
build a plant outside of their areas, where land was cheap, to own
it jointly and to charge each company for current as nearly as
possible at cost. It is because of this intimate relation with the St.
James and Westminster companies that the Central company is
included in this investigation. No survey of their activities could
be complete without it.

A 9. Has there ever been municipal ownership and private opera-
tion of plant? No.

A 10. Is the general sentiment favorable or unfavorable to the
present system of ownership and operation ?

Generally favorable in every case. The only instance where a
change is definitely being considered is at Newcastle, where a plan
for the purchase of the District company is under discussion. There
seems to be more friction between the local authorities and the
company in the City of London than elsewhere.

HISTORICAL AND GENERAL. 259

A 11. What is the attitude of the press?

Municipalities. Generally favorable, although in every town
there is a portion of the press which opposes municipal trading and
which watches the undertaking closely.

Companies. Generally favorable. There is more or less talk
about municipali/ation, but it is not due specially to the delin-
quencies of the companies.
A 12. State current objections to present system.

Manchester, Liverpool. None, except an occasional charge
that due economy is not practiced and that depreciation is not
adequately provided for.

Glasgow. The engineer says :

" Objections put forward by financial operators and company
promoters are that the citizens are made to pay a higher price for
current than they would if the undertaking were in the hands of a
company, in that

"(a) a municipality pays higher wages to its employees than
a company would do, owing to the voting power of the working
classes, and

"(b) owing to the facilities for obtaining loans, capital is
recklessly expended and there is consequently a higher sum to pay
for interest, sinking fund and other standing charges. It is further
asserted that notwithstanding these high charges, municipalities
do not write enough off their capital accounts or set aside a suffi-
cient sum to meet the depreciation and obsoletion of their plant,
as compared with what a company would do, and that consequently
there is accumulating a big financial deficit or loss which has to
be met in the future, and which, as the departments will then be
quite unable to meet it, will entail an assessment on the then rate-
payers.

"This argument is all bosh. An examination of the accounts
of municipalities and companies shows that the companies' charges
are higher and the sums set aside for depreciation are less than
those set aside by municipalities; and in addition the municipal-
ities set aside a sum as sinking fund on the capital expended on the
undertaking, and are, therefore, repaying the capital in proportion
to the depreciation going on, a thing which companies do not do/'

St. Pancras. None could be found of any importance.

Newcastle — Supply and District. None, except small con-
sumers think they should have lower rates and that the large ones
are too low comparatively.

London — City, Westminster and St. James. The principal
objection is that streets are torn up too frequently, due largely to
the fact that there are two competing companies with mains in
the same streets. In new streets, subways are laid and the wires
placed therein, but this is too expensive when the streets have
already been laid out, which is true of most of the highways, of
course. House connections were often put in without due notice
to the street authorities, it is claimed.

260 NATIONAL CIVIC FEDERATION.

A 13. Do the citizens take an active interest in the management
of the plant?

Manchester, Liverpool. Not much at present.

Glasgow. The works are open for inspection once a year and
they are filled. Persons are shown about upon application, and
many visit the plant.

St. Pancras. Seldom, unless something unusual arises.

Companies. No.
A 14. Have there ever been competing electric lighting companies

in the city? »

A 15. Are there competing companies now?

Municipalities. No.

Newcastle — Supply and District. These two companies were
originally given precisely the same areas of supply, viz., the City
of Newcastle. But before any large amount of work was done,
an agreement was made whereby the District company was to con-
fine itself to the western part of the city, and the Supply company
to the eastern part. This agreement expired by limitation in 1905,
but it is still observed, and there is, therefore, practically no dupli-
cation of mains or services. It is very unlikely that it could have
been enforced if either company chose to disregard it, for authority
to supply in Newcastle had been given by Parliament, and such
right could not have been contracted away unless Parliament had
also given the power to do so, which it has never done.

London — City. The City of London company has one com-
petitor in all of its area of supply, and two competitors in a small
part in the southeast of St. Saviour. There are two sets of mains
in practically every street and a consumer may take current from
either company. In South wark (District of St. Saviour), there
were two companies almost from the start. The London Electric
Supply Corporation, Limited, secured powers in 1889, and the
predecessor of the City of London company in 1891. In the City
competition was not authorized by Parliament until 1899.

Competition in the Southwark area came about naturally from
the provisions of the Act of 1888, which declared that any grant of
authority to supply an area should not in any way hinder or restrict
the granting of similar powers for the same area to any other
company. In the discussions in Parliament and the inquiries made
prior to the enactment of electric lighting legislation, the conflict
between the advocates of high tension and low tension, and of
direct and alternating current, had been very keen but indecisive.
Parliament decided to let them fight it out in actual work and to
allow the systems to exist side by side, firm in the. opinion that the
fitter would survive. When the predecessor of the City of London
company — the Brush company — applied for powers in St. Saviour
its application was granted, almost as a matter of course, even
though one company was already supplying current.

Competition in the City came about from different reasons
entirely. It has already been stated that when the agreements

HISTORICAL AND GENERAL. 261

were made by the local authorities with the construction companies,
and provisional orders secured by the latter, the commissioners
of sewers granted the companies the exclusive right of supplying
electricity. But of course they had no legal authority to grant
a monopoly, and any such agreement had no binding effect, cer-
tainly so far as Parliament or the Board of Trade was concerned.
However, when three companies applied to the Board of Trade in
1899 for authority to supply electricity in the City, the local
authority refused to give its consent, thereby keeping its part of
the agreement even though ultra vires.

Under the Acts of 1882 and 1888, this refusal to give consent
was not insuperable, but the Board of Trade had to make a special
report stating its reasons for dispensing with local consent. At the
inquiries held evidence was presented to show that the existing sup-
ply was inefficient and expensive, and that the purpose of the new
companies was to give a cheaper and better supply. Complaints
were made as to the failures of the supply, and memorials pre-
sented favoring the application of one company signed by over
9,000 ratepayers and others, and of another company with over
5,000 signatures. It was also shown that fines amounting to £200
per annum for the previous seven years had been deducted from the
compan/s bills for defective public lighting. In answer, the City
of London company claimed that the number of failures was rela-
tively small and that it was unfair to allow a new company to come
in and divide the business when a monopoly had been promised in
return for valuable concessions. To this the City Corporation re-
plied that counsel had advised that the old agreements were null and
void because shareholders were members of the local authorities, con-
trary to law, when the agreements were made. The City did not
take an active part in the inquiry either for or against the appli-
cations, except to declare that it preferred to be left to deal with the
situation until it could arrange to take the supply into its own
hands, and that competition would be productive of great incon-
venience to the public through the continual breaking up of the
streets.

While the inquiry was being conducted the City Corporation
undertook to secure from the company some satisfactory settlement
of the situation, a reduction in prices and improvements in the
service. The company maintained that it was doing all it could
do, that it had reduced prices from 7.56d. per unit in 1895 to
6.22d. in 1898, and that an immediate reduction to 5d. was im-
possible. Inasmuch as the Charing Cross company — one of the
applicants for powers — had received less than 4.5d. per unit in
1898 and yet paid a dividend of 8 per cent, on the ordinary stock,
this was not convincing.

The final result was that the Board of Trade granted one ap-
plication, issuing an order authorizing the Charing Cross and
Strand Electricity Supply Corporation, Limited, to supply current
throughout the City. Mains have since been laid in nearly every
street. Prices have been reduced, service improved and a greater

202 NATIONAL CIVIC FEDERATION.

willingness to accommodate the consumer manifested. Upon the
other hand, traffic has been interfered with more through the more
frequent opening of the streets, capital has been wasted in the un-
necessary duplication of plant and mains, and the cost of munici-
palization greatly increased. Sufficient time has not yet elapsed
to demonstrate fully the wisdom or unwisdom of competition. There
certainly was considerable immediate gain, but it remains to be seen
whether in the long run losses will not more than equal" the gains.

Westminster, St. James. The first company given powers to
supply electricity in the present City of Westminster was the Lon-
don Electric Supply Corporation, Limited, the first provisional
order for which dates from 1889 ; but current had already been sup-
plied for four years under a license from the Board of Trade. The
system adopted was high pressure, alternating current with sub-
stations and house transformers. In 1889, 1890 and 1891 the
Westminster and St. James companies applied for powers to supply
in portions of the area already given to the London S,upply com-
pany, and their requests were granted.

The reasons why competition was allowed are as follows: In
the first place, the people were not at all satisfied with the prices
and services given by the old company. Complaints were sometimes
quite numerous. In the second place, the new companies proposed
to adopt a different system of supply, viz., low pressure, continuous
current and three wires. The force of this argument has been
explained in connection with the City of London company in
Southwark, above. Thirdly, the feeling seemed quite general that
the system of regulation was not adequate to control the private
company, and that the only satisfactory remedy was to introduce
competing companies. Thus one portion was given to the West-
minster company, another to the St. James, and other portions to
other companies.

The immediate result, as in the City of London, was the
lowering of prices and the improvement of the service. Upon the
other hand, the more frequent tearing up of the streets has been
a great source of inconvenience. Competition is wasteful and the
present tendency is distinctly towards " districting," so that only
one set of mains will be in any street. As a result not all of the
streets have, or have had, duplicate mains and services.

The City of Westminster is supplied by some seven different
companies. There are two competing companies in every part
except one small district, and three companies in two small dis-
tricts. This intermingling of areas and companies was the result
of conditions existing prior to the creation of the City of West-
minster in 1899. The present area was then governed by a number
of local bodies which allowed different companies to come in, and
no one ever got powers in all the districts.

Central. This is not a distributing company.
A 16. If private companies have been consolidated, give dates
and methods briefly.

See answers to inquiries A 5-8.

HISTORICAL AND GENERAL. 263

A 17. Population of city at last national census, 1901.

A 18. Estimated population January 1, 1906, of area of supply.

Towns. A 17. A 18.

Manchester (*) 543,872 745,000

Liverpool (2) 648,958 760,000

Glasgow (3) . . 760,423 790,000

St. Pancras (2) 235,317 236,000

Newcastle— Supply (4) 215,328 955,000

Newcastle— District (5) 215,328 270,000

London— City (6) 50,242 47,400

Westminster (7) 128,025 123,000

St. James (7) 21,588 20,600

Central Does not distribute.

A 19. Are there gas works which compete with electricity?
A 20. Were these public or private?

(J) The Manchester undertaking has very recently obtained powers
to supply the districts of seven local authorities outside the city bound-
aries, having at present an estimated population of 115,000.

(2) Liverpool and St. Pancras have no authority to go outside
their own areas. Figures are for the Borough of St. Pancras; the
population is stationary and the boundaries have been unchanged since
1901.

(3) For the period under consideration Glasgow had no powers
to supply outside of its area, but in February, 1906, the Pollokshaws
Electric Supply Order, 1905, was transferred to Glasgow by that burgh
upon payment of Parliamentary expenses, £196, and subject to the
agreement that prices in Pollokshaws shall not be more than in Glas-
gow.

(*) The Newcastle Supply Company has general powers of sup-
ply and distribution, obtained from Parliament, in several areas, having
a total population in 1901 of 300,000 approximately, and at present
about 335,000. It may lay through mains and supply in bulk to dis-
tributors in 16 other areas having a population in 1901 of 225,000, and
at present upwards of 250,000. It also supplies the North Eastern Rail-
way's suburban service in Northumberland County, and has power to
supply to others at the boundaries of the above-mentioned districts. The
" area of supply " is, therefore, a very indefinite term, but, including the
districts and companies, that may be supplied in bulk, it would include
very nearly 1,000,000 people, of which over 700,000 are in areas outside
of the City of Newcastle.

(5) The District company has powers to supply most of the pres-
ent City of Newcastle, but only a small area beyond Newcastle, having
about 15,000 population.

(") The City of London company supplies the City of London
and part of Southwark. The former had a night population — census —
in 1901 of 26,923 (at present about 24,900) and a day population of over
300,000, it being the great office centre of the Metropolis. Southwark
is more of a residential district, but largely devoted to factories, stores
and offices.

(') The Westminster and St. James companies supply most
of the City of Westminster. The figures given are for the areas of sup-
ply. A large portion of each is devoted to offices and stores, so that the
load is largely a day load, and the day population largely in excess of the
night population — the census.

264 NATIONAL CIVIC FEDERATION.

A 21. If private, were they owned or controlled by the same per-
sons controlling electric works?

Manchester, Glasgow. Both the electric and gas plants are
owned by the municipality, and there is keen competition between
the two committees which administer them.

Liverpool, St. Pancras. The gas works are operated by a
private company.

Newcastle, London. The gas works are privately owned in
each case, but are not connected with any electric lighting company
considered in this report.

B— GENERAL FINANCIAL POWERS OF MUNICIPALITIES.

B 1. Does city have power, for construction or acquisition of
electric supply works, to raise money by issuing secur-
ities ?

Manchester, Liverpool. Yes, but each new issue of securities
must be approved by the Local Government Board.

Glasgow. The same is true of Glasgow, except that the Sec-
retary for Scotland takes the place of the Local Government Board.
St. Pancras. Yes, but as the London boroughs borrow from
the London county council, the requirements of this body must be
met before any money will be handed over.
B 2. Does city have power, for construction or acquisition of

electric supply works, to raise money by taxation?
Yes, authority to do so having been given by the Act of 1882.
There is no limit to the amount that may be so raised except the
general limits upon the amount of taxation.
B 3. Does the city have power to raise money by taxation to meet

a deficit ? If so, what statutory limit is fixed ?
Manchester, Liverpool, St. Pancras. Yes. No limit.
Glasgow. Yes. The limit is 6d. in £1 of assessable value.
Contributions may also be made from the " Common Good/' but
this fund receives nothing from taxes.
B 4. What is the limitation upon the general taxing power of the

city?

Manchester, Liverpool, St. Pancras. None, except that no
function may be exercised by the municipality, and no taxes levied
for its exercise, which has not been conferred by Parliament.

Glasgow. Limits have been fixed for every purpose and these
may not be exceeded.

B 5. State fully, step by step, the procedure which must be fol-
lowed and the requirements which must be met before the
city may construct or acquire a plant ; also source of each
provision, whether state constitution, statute or ordinance.
Note particularly requirements as to initiation of pro-
posal, special action by city authorities before its adoption,
mayoralty veto, referendum, publicity, making of appro-

HISTORICAL AND GENERAL. 265

priations, bond issues and approval of scheme by courts

or state authorities.

See inquiry B 5 under Gas. The summary there given applies
here. A more complete discussion is given in the special report
on franchise legislation.

C— INCORPORATION OF COMPANIES.
C 1. Date of incorporation of company.

Newcastle-Supply, 1889; Newcastle-District, 1889; London-
City, 1891; Westminster, 1888; St. James, 1888; Central, 1897.
C 2. Place of incorporation. London.

C 3. Was incorporation under general law, special act, adminis-
trative order or other method?

Under the Companies Acts, 1862 to 1893, which provide a
general routine for the incorporation of any company.

C 4. For what length of time was incorporation to be effective?
As no limit was fixed in any act, it is in perpetuity, or until
the company is wound up voluntarily or by act of Parliament.

C 5. If this duration has since been extended or decreased, state
when, how, or for what period of time, and reasons there-
for.
No change has been made in any case.

C 6. Was the power of amendment or alteration reserved to the

state?

No power to amend or annul was expressly reserved, but Parlia-
ment has the power to do either at any time.

D— PUBLIC SUPERVISION OF MUNICIPALITIES AND COMPANIES.

General Powers.

D 1. Does municipality or company have power to condemn pri-
vate plants under the right of eminent domain?
There is no general "right of eminent domain." Property
may not be acquired otherwise than by agreement, except under
authority of Parliament, given by private act or provisional order,
and when powers of " compulsory purchase " are so conferred, Par-
liament amply protects vested rights. This applies to cities and
companies alike.

D 2. Does municipality or company have power to purchase

private plants ?

Municipalities. There are no private plants (which distribute
current) within the areas of supply. Every municipality has the
power to purchase electrical machinery by agreement, but it cannot
legally distribute current beyond its authorized area of supply and
cannot, therefore, operate plants there even by agreement except
when a transfer of powers has been made with the approval of the
Board of Trade.

266 NATIONAL CIVIC FEDERATION.

Companies. The statutory provisions regarding purchase by
local authorities are given under inquiry D 8. Within the area of
supply of every private company examined there is a competing
company, but neither may transfer its undertaking to the other
without the approval of the Board of Trade or Parliament. The
rules against operations outside of the authorized areas apply alike
to companies and municipalities.

D 3. Does the municipality or company have power to construct
works upon its own property?

There is no such sweeping provision against the use of land,
already acquired, for electric lighting purposes as in the case of
gas works. Consequently, either a municipality or a company is
free to erect a plant upon any land it owns, but neither has power
to take land compulsorily without specific authorization from
Parliament. Either may take land by agreement without statutory
powers, but it is advisable to have statutory authority, for an
action for nuisance committed upon lands specified in the acts of
Parliament will not lie, unless it can be shown that such nuisance
was caused by negligence, or unless the law fixes a liability. In
absence of such statutory powers, it is not necessary to prove negli-
gence.

D 4. Does the municipality or company have power to lay mains
in the streets?

Yes; in the authorized areas of supply (see D 11). The re-
strictions are practically the same as for gas plants.

There are two distinct steps to be taken before streets may
be opened. In the first place, authority to supply in the area
must be obtained prom Parliament, and the acts and provisional
orders usually contain a section which states that if the undertakers
go outside of the authorized area, their powers may be revoked
by the Board of Trade. In the second place, a permit must be
obtained from the local authorities having charge of the streets,
and it has the right to say when and how its streets may be
opened.

D 6. Does the municipality or company have full powers of
operation?

Yes. When municipalities took over the plants from private
companies they took over all the powers previously held by these
companies. Parliament has shown some reluctance to allow
municipalities to do all the things it has authorized companies
to do, e. g., manufacture fittings, but all the powers necessary to
the manufacture, distribution and sale of electricity have been
granted.
D 6. How were these powers conferred?

By general laws, special acts and provisional orders. See lists
under Sources.

D 7. Explain system of taxation fully, including all payments to
central and local authorities, fees, special assessments, etc.

See special report on this subject.

HISTORICAL AND GENERAL. 267

D 8. Give statutory provisions regarding purchase of plants by
public authorities.

Municipalities. The undertakings are already in the hands
of public authorities and none supplies outside of its own area
except Manchester. This city was authorized by an act of Parlia-
ment to lease the undertakings of suburban local authorities or
accept the transfer of their powers upon approval by the Board of
Trade. Manchester has made agreements with seven authorities,
each of which has been empowered to repurchase the undertaking,
or the part thereof within its area, at the end of twenty-one years
from the date of the agreement, ranging from 1897 to 1905, or of
any period of five years thereafter, upon the terms and conditions
prescribed in the Acts of 1882 and 1888, given below. It should
be noted here that the electricity department of Manchester sup-
plies power for the tramways, that the tramway department is
operating lines within the areas of these same local authorities
and that they have the right to purchase the tramway lines within
their areas in case they do not own them or to resume control in
case they do own them at the end of twenty-one years from the
date of the agreement. Naturally the period of purchase should be
the same for electricity supply works and tramways under such
circumstances, although private electric companies have usually been
given much longer terms.

Companies. The Act of 1882, which applied to all of Great
Britain and Ireland, provided that the local authority, at the
expiration of twenty-one years from the date of the grant, or at
the expiration of every subsequent period of seven years, might
purchase the undertaking compulsorily, or so much of it as was
within its jurisdiction, upon the payment of the " then value of
all lands, buildings, works, materials and plant of such undertakers
suitable to and used by them for the purposes of their under-
taking within such jurisdiction, such value to be, in case of dif-
ference, determined by arbitration; provided that the value of
such lands, buildings, works, materials and plant shall be deemed
to be their fair market value at the time of the purchase, due regard
being had to the nature and the then condition of such buildings,
works, materials and plant, and to the state of repair thereof [ ]
and the suitability of the same to the purposes of the undertaking,
and where part only of the undertaking is purchased, to any loss
occasioned by severance, but without any addition in respect of
compulsory purchase or of goodwill, or of any profits which may
or might have been or be made from the undertaking, or of any
similar considerations." The Act also provided that the property
should be transferred to the local authority free from all debts,
mortgages or similar obligations, and that all the powers exercised
by the company should vest in the local authority.

The Act of 1888 amended the above provisions so as to insert
in the quotation the words " and to the circumstances that they
are in such a position as to be ready for immediate working," at
the place noted by the brackets. The periods of purchase — twenty-

268 NATIONAL CIVIC FEDERATION.

one years and every subsequent seven years — were changed to
forty-two and ten years, respectively, and a proviso added that
notice must be given to the company within six months after the
expiration of any period.

The Act of 1888 also authorized the Board of Trade, through
a provisional order confirmed by Parliament, to vary the above
terms and conditions, but, except as noted in the following para-
graphs regarding the companies examined, the provisions of the
Act of 1882, as amended by the Act of 1888, apply in each
instance.

Newcastle — Supply. This company has general powers of
supply and distribution in six different local areas. The city of
Newcastle may purchase the portion of the undertaking within
most of its area, except the through lines not used for the supply
of current within its boundaries, thirty-one years from July 3,
1891 — July 3, 1922. The shortness of this term — eleven years less
than fixed by the Act of 1888 — was part of the price paid by the
company for the withdrawal of the opposition of Newcastle to
the granting of its provisional order. It may purchase the portion
in Walker — a district formerly separate from Newcastle, but an-
nexed in 1904 — in 1943, or forty years from the date of the act
of Parliament relative to this area. Otherwise, the Acts of 1882
and 1888 apply.

The Gosforth local authority may purchase in 1921 or 1930,
in addition to 1942, and every ten years thereafter, powers for this
area having been granted in 1900. If taken over in 1921, the
payment shall be the amount of capital expended upon the por-
tion of the undertaking in Gosforth; if in 1930, the value of *he
Gosforth part " as a going concern," the amount in each case to be
determined by agreement, or, in default of agreement, by arbitra-
tion. These conditions also were accepted by the company in order
to secure the consent of the local authorities of Gosforth.

The four other local authorities may purchase the portions in
their areas, except the generating stations, according to the pro-
visions of the general acts, the periods running in one instance
from 1900, and in the other three from 1903.

The local authorities in the other areas in which power is
supplied in bulk to distributors have no powers of purchase either
under general or special acts.

Newcastle — District. This company has general powers of
supply and distribution in most of Newcastle, Newburn and a
few small areas of minor importance. The city of Newcastle may
purchase thirty-one years from July 3, 1891 — the same date, it
should be noted, upon which the city may purchase the undertak-
ing of the Newcastle Supply company. Newburn may purchase
thirty-five years from 1902, or in 1937.

London — City. The City of London company supplies areas
governed by two different authorities. In the City of London, the
local authority may purchase twenty-four years from 1890. In

HISTORICAL AND GENERAL. 269

the case of the portion of the undertaking used for public purposes,
the terms of the Acts of 1882 and 1888 shall apply. The price
of the part used for private purposes is to be settled by agreement,
or, failing that, by arbitration. In Southwark, the terms and
conditions are those of the general acts, the periods running from
August 26, 1889.

Westminster, St. James. As in the case of most of the Lon-
don companies, the local authorities may purchase forty-two years
from" 1889 under the terms of the general acts.

Central. If, and whenever, the City of Westminster pur-
chases the undertaking of the Westminster company or of the St.
James company, or of both of them, it must also purchase the
plant, mains, etc., of the Central company, subject to the terms
and conditions of the general acts.

D 9. Give statutory provisions regarding condemnation of private

plants by the city under power of eminent domain.
No such general right in English law, as explained under D 1.

Character of Plant.

D 10. Give statutory provisions regarding size and location of

plant.
None, except that the land to be used is specified. See D 3.

D 11. Give statutory provisions regarding area to be served

(see also A 17 and 18).

Manchester. The areas which may be supplied were defined
in the provisional orders issued to Manchester and to the seven
outside local authorities which have transferred their powers to
Manchester recently.

Liverpool. The area fixed by law is the city of Liverpool.
In 1897 authority was given to take over the provisional orders of
adjoining districts with the approval of the Board of Trade. This
has been done, as noted above under inquiries A 5-8, in two
instances, the areas of each now being within the city boundaries.

Glasgow. The area fixed by statute is the city of Glasgow.
The powers of the borough of Pollokshaws were transferred in
1906, but this transfer does not come within the period covered by
these schedules.

St. Pancras. All of the borough.

Newcastle — Supply. This company has general powers of
supply and distribution in Newcastle, Gosf orth, Longbenton, Walls-
end, AValker, Willington and Willington Quay. It has power
to supply in bulk to authorized distributors, to lay through mains
and to supply others on margin of areas in fifteen districts, and in
Tynemouth with the consent of the municipality, and to supply
the North Eastern Eailway, the County of Durham Electric Power
Supply Company and the County of Durham Electrical Power
Distribution Company (one interest). It may also enter into

270 NATIONAL CIVIC FEDERATION.

agreements, with the consent of the undertakers supplying current
within the district, for the supply of energy beyond the authorized
areas of supply in the county of Northumberland.

Newcastle — District. The authorized area of supply is the
city of Newcastle as constituted in 1891, and the urban district of
Newburn to the west. The directors of the company as individuals
made an agreement with the council of Benwell and Fenham — a
district between Newcastle and Newburn, now a part of Newcastle
— to operate the council's system as if it were its own. This con-
tract has been carried out by the District company, and although
there may be some question as to its legality, it has been executed
as if none existed. The district has since been added to Newcastle
and the rights of the district council transferred to the city.

The agreement provides that the undertakers (the District
company in practice) shall supply current through the distributing
system owned by the council; shall lay all house services required
by consumers; provide, install and keep in repair prepayment
meters; rent motors, if required; place and maintain fittings, wir-
ing and lamps at a cost not to exceed 6d. for each single incan-
descent lamp, or Is. for three lamps in a cluster and 3d. for each
additional lamp per year; maintain and repair the entire dis-
tributing system, including new extensions, house services and
apparatus ; keep its accounts so that the council may examine them
at any time, and receive all payments for current, including meter
rents. In return for these privileges, the undertakers agreed to
pay the council annually 6 per cent, on the money borrowed to
pay costs of provisional order, fees of engineer and expenses of
building the distributing system, including the lines which shall
be laid in the future as well as those already provided; to limit
charges for current to the rates in vogue in Newcastle, and never
to exceed 4d. per unit except in case of prepayment meters, the
rate for which may reach 5^d; to supply street lighting at certain
fixed rates varying from £12 to £18 per annum for each 600 Watt
inclosed arc lamp, including maintenance, and from 17s. 6d. to
£1 6s. per annum for each 16 candle-power incandescent lamp not
consuming over 75 Watts per hour; to make certain specified
minor payments to the council; and to transfer all house services,
meters and other property on consumers' premises to the council
at the end of the contract, upon receiving cost price less 5 per
cent, for each year in use. The term of the contract was ten years
from April 1, 1901.

London — City. The areas defined by the provisional orders
are the City of London and the parishes of Christchurch and St.
Saviour, south of the Thames in Southwark.

Westminster. The areas of authorized supply include the
parishes of St. George, Hanover Square, and nearly all of St.
Margaret and St. John, City of Westminster.

St. James. This company has power to supply the parish of
St. James, Westminster.

HISTORICAL AND GENERAL.

271

Central.' There is no area of supply fixed for this company.
It has power to supply only the Westminster and St. James com-
panies.

AREAS OF SUPPLY AND POPULATION *.

Towns.

Manchester

Liverpool

Glasgow

St. Pancras . . .
]STew.-Supply . .
New.-District . .
London-City . . .
Westminster . . .

St. James

Central does not

Total Area
Area of t>f
Supply. Borough.

34.7 21.5
. The whole city
, The whole city
42.1 42.1
.2575 13.2
19 13.2
1.38*1.05
2.9 3.9
.25 3.9
distribute; only

Area
With-
out.

13.2
none
none
none
562
37.5

.33
none
none

Total
Pop.

745,000
760,000
790,000
236,000
955,000
270,000

47,400
123,000

20,600

Pop. of
Borough.

630,000
760,000
790,000
236,000
255,000
255,000
524,900
193,000
193,000

Pop.
Without.

115,000

none

700,000

15,000

22,500

none

gives bulk supply.

PERCENTAGE OF AREA AND POPULATION OUTSIDE OF BOROUGHS.

Towns.

Manchester

Liverpool

Glasgow
St. Pancras
New.-Supply
New.-District
London-City
Westminster
St. James

Central does

Area,
Per Cent.
38

Population,

Per Cent.

15.4

,s 42 .
ly ... 5752
let ... 19
ty .... 1.
jr .... 2.

38
9
25

42
13
13
1
3
3

.1
.2
.2
.OE
.9
,9

none
562
7.53
i4 .33
none
none

236,000
955,000
270,000
47,400
123,000
20.600

not distribute.

236,000
255,000
255,000
24,9005
193,000
193,000

none

700,000

15,000

22,500

none

D 12. Give statutory provisions regarding nature of plant and

equipment.

I. The Act of 1882, applicable to all undertakings unless
expressly excepted or amended, provides that the Board of Trade
may, from time to time, make, amend and repeal such regulations
as it may think expedient for securing the safety of the public

(*) The population figures and certain of those for the areas sup-
plied are estimated, but are probably very nearly accurate. "Area of
supply " does not mean that mains are laid in every street, but that
the undertaking has the right to supply in that area. The areas are
in square miles.

(2) This figure is only an approximation. It includes 375 square
miles in the county of Northumberland, part of which the company
may only supply in bulk, and 200 square miles in Durham supplied by
the Durham companies, but which have become practically one interest,
and which the Newcastle company may, and does, supply in part.

(3) This company does not have the power to supply all of the
present area of Newcastle.

(*) This is the area of City of London.

(5) This is the night population of the City of London.

272 NATIONAL CIVIC FEDERATION.

from personal injury, or otherwise, and may amend and repeal any
regulations contained in any license, order or special act in rela-
tion thereto. Such regulations have the full force and effect of
Parliamentary enactments. It also may enact that lines may not
be placed above ground except with the approval of the local
authority.

II. The Act of 1882 further provides that the local authority
within whose district electricity is supplied by a company may
make additional regulations for securing the safety of the public,
but no such regulation shall take effect until it has been confirmed
by the Board of Trade.

III. The Act of 1899, applicable to all grants of powers after
1899 unless expressly excepted or amended, provides that cur-
rent may be supplied only by means of some system approved in
writing by the Board of Trade and subject to the Board of Trade
regulations; that neither municipality nor company shall place
any electric lines above ground, except upon its own property,
without the express consent of the Board of Trade and of the
local authority in case it is a company; that no part of the circuit
shall be connected with the earth unless the connection is ap-
proved by the Board of Trade and the Postmaster General; that
before any new work is begun in the streets, a notice shall be
served upon the Postmaster General and the local authority de-
scribing the project with plans thereof and any other information
that may be needed. If either disapproves, the company must
adopt suggested changes or appeal to the Board of Trade, whose
decision is final.

As to II., above, no by-laws have ever been made and
sanctioned under this section. It may be disregarded, therefore.

AB to I., the Board of Trade has exercised its powers fully,
having issued, amended and rescinded many regulations. Those
now in force, which apply alike to municipal and company plants
in all essential matters, prescribe the pressure which may be sup-
plied, and the conditions under which each kind of pressure —
low, medium, high and extra high — may be used, including earth
connections, fuses, switches, circuit breakers, etc.; how a three-
wire system shall be introduced into consumers' premises; the
minimum size of conductors; manner of testing; the kind and
efficiency of insulation ; the character of circuit breakers and trans-
formers; the materials and construction of conduits, street boxes,
etc.; the responsibility for lines on consumers' premises; the
methods to prevent and to deal with leakages ; height and guarding
of arc lamps in the streets, etc. The regulations also require the
undertakers to maintain a constant supply, to restrict the variation
at the terminals in consumers' premises to 4 per cent, of the
standard fixed, to notify the consumer what system of supply is
to be adopted, and if alternating current, to fix the number of
periods per second, to give at least one month's notice before mak-
ing any change and then only when approved by the Board of
Trade, etc. They also prohibit the erection of overhead lines,

HISTORICAL AND GENERAL. 273

except with the express approval of the Board of Trade and in
accord with the plans approved by it. Penalties are fixed for each
infringement of the rules.

As to III., the Act of 1899 does not apply except to those
grants of powers made after 1899, but as it is the codification of
the clauses ordinarily contained in private acts and provisional
orders prior to that date, its provisions so far as given above apply
to most of the undertakings treated here. Any modification will
be noted, but unless so stated they are in force. Under the pro-
visions quoted, the Board of Trade has issued an order which
states what systems are approved by it, and if another is proposed,
special consent must be had. The order applies, of course, to
company and municipal undertakings alike.

Coming now to the special provisions which are not applica-
ble to all plants :

Manchester. In the areas outside of the city, Manchester
occupies the same position as regards these provisions that a com-
pany would if it had powers in these areas under the Acts of 1882
and 1899.

St. Pancras. The provisional order for this borough was
issued in 1883, before the Board of Trade had had much experi-
ence and before a model form of grant had been worked out. It
contains, therefore, some unusual clauses. It provided that elec-
tricity may be supplied by any of the following systems:

(a) The " parallel system " — a double series of mains, one
positive and the other negative ;

(b) The " series system " — a single circuit, where the whole
current is utilized at various points and not divided among par-
allel circuits;

(c) Any other system approved by the Board of Trade; pro-
vided that no such system shall include any circuit to be con-
nected with the earth, except as required by statute, unless ap-
proved by the Board of Trade with the concurrence of the Post-
master General.

As to street work, before work is begun notice must be served
upon the Postmaster General and London County Council, describ-
ing the project with plan thereof and giving any other information
that may be needed. If either disapproves, the borough must
adopt the suggestion made or appeal to the Board of Trade, and
its decision is final.

The Board of Trade must approve the style of mains, ser-
vices, safety fuses, poles upon consumers' premises, lightning dis-
chargers, materials for insulation, earth connections, etc. Mains
and services must be insulated, cut-offs placed outside of prem-
ises, safety fuses fixed to break the current when 50 per cent,
greater than intended, positive and negative poles placed at least
3 inches apart in consumers' premises, maximum current at a pair
of poles limited to 50 amperes, except as approved by the Board of
Trade, etc. — matters now ordinarily left to regulation by the
Board of Trade and not put in the provisional order.

Vol. III.— 19.

274 NATIONAL CIVIC FEDERATION.

The actual " pressure " — the difference in potential at cor-
responding points of the positive and negative mains — must never
vary more than 5 per cent, from the standard, which shall be
not less than 30 nor more 200 volts for continuous currents, and
not less than 50 nor more 100 volts for alternating currents; but
the Board of Trade may alter these limits. The difference of
potential at any two charging points shall not exceed 4,000 volts.
The number of alternations per minute shall not be less than 600
or such number as fixed by the Board of Trade. Current through
service lines shall not exceed 1,000 amperes if such current exceeds
10 amperes, or 2,000 amperes if it is less than 10 amperes, per
square inch of copper wire of a conductivity equal to that of the
conductor.

The Act of 1899 does not apply.

Newcastle — Supply. In the case of through mains for power
or bulk supply, their location must be approved by the local
authority, subject to appeal to the Board of Trade.

London — City. Wires may not be placed overhead in the City,
but may be permitted in Southwark with the consent of the
county council and the Board of Trade. If the local authority
or the county council provides subways in the streets where lines
are to be laid, the company may be required to put its lines therein
and to pay a reasonable rental therefor. In Southwark only con-
tinuous current shall be used, except with approval of the Board
of Trade.

Westminster, St. James. These companies are required to put
their lines in subways and to pay a reasonable rent for the use,
if the local authority provides them in streets where lines are to be
laid.

Central. This company has not been authorized to erect
overhead lines, so that even with the consent of the local authority
it cannot do so. All must be placed under ground.
D 13. Give statutory provisions regarding extension of mains.

I. In every instance, except the Central Company, the
municipality or company was required by the act granting powers
to lay mains in certain specified streets, usually a few in number
at the start, within a certain prescribed period, usually two years
from the date of the grant, but the Board of Trade was given power
to extend this period if it saw fit. The Newcastle Supply company
was allowed only eighteen months in part of its area, and where it
supplies in bulk and does not distribute generally, there is no
requirement to lay any mains. The City of London company was
given twenty-one months in the City, but the local authority
might extend the period with the approval of the Board of Trade.

II. It is also true, except of the Central company, that the
undertakers must serve notice at least twenty-eight days in ad-
vance upon the owners and occupiers of abutting property and
upon the local authority, if it is a company plant, when a line for
a particular consumer is to be laid, and if two or more consumers
request, a main for general distribution must be provided.

HISTORICAL AND GENERAL. 275

III. Undertakers must lay mains in any street or part
thereof within six months after being requisitioned to do so by six
owners or occupiers, or, if it is a company plant, by the local
authority. The undertakers may require these prospective con-
sumers to contract to take a supply for three years, amounting to
not more than 20 per cent, annually of the cost of laying the mains.
The Board of Trade may increase this maximum percentage if it
sees fit. If the undertaker is a company and the requisition is
from the local authority, the authority may be required to take
supply for lamps in that street or part thereof for three years.

The only modifications of this rule are the following: In St.
Pancras the requisition must be signed by the owners or occupiers
of not less than one-fourth of the premises along the street or
part thereof. The rule does not apply to the Newcastle Supply
company in the areas where it only supplies in bulk or to author-
ized distributors. In Southwark only two owners or occupiers
need sign a requisition, and a contract may not be required for
more than two years. The same applies to the Westminster and
St. James companies. The Central company is exempt entirely.

IV. Another requirement, generally applicable, except to
the Central company, is that the undertakers may be required by
any prospective consumer to supply him with current if his
premises are within 50 yards of a main for general supply, but
he may be called upon to pay for all lines upon private property
and also over 60 feet from the main, to sign a contract to take
supply for two years equivalent in amount annually to 20 per cent,
of the cost of the lines to be laid, and to give security for payment.

The only variations from the general application of this rule
are: In Liverpool and St. Pancras, the premises must be within 25
yards, and the individual may be called upon to pay for all services
over 30 feet in length. In Glasgow a three-year contract may be
required. In the City of London the premises must be within
25 yards. In a portion of the area supplied by the Newcastle
Supply company, in Southwark and in the areas of the West-
minster and St. James companies, any public lamp within 75 yards
of a distributing main must be supplied. In the areas where the
Newcastle Supply company has power to supply to authorized dis-
tributors, the maximum term of the contract is seven years.

As regards these provisions, it should be noted that where the
mains are laid under the sidewalks, as is generally the case, even
the limit of 30 feet is more than sufficient to reach any premises
under ordinary conditions.

D 14. Give statutory provisions regarding improvements and
new processes. None, in any instance.

Price.

D 15. Give statutory provisions regarding price of service, ar-
rangement of charges, discounts, deposits, etc.
I. The Act of 1882, which is of general application, declares
that all persons under the same circumstances and demanding a
corresponding supply are entitled to the same rates.

276 NATIONAL CIVIC FEDERATION.

II. The special acts and provisional orders have generally
authorized municipalities and companies to charge for electricity
(otherwise than by agreement) by (a) the actual amount of energy
supplied; or (b) the electrical quantity contained in the supply;
or (c) such other method as may be approved by the Board of
Trade, provided that any consumer who objects to that method
may require the undertakers to charge according to (a) or (b), at
their option. Notice must be given of the method of charge
selected, and the method may not be changed except after one
month's notice. Agreements may be made with the consumers for
any price and method of charging. When so requested by the
local authority or the company, the Board of Trade may revise
the methods of charge of companies and establish new ones any
time after seven years from the granting of the powers or from the
last revision.

Variations of these clauses are found in the statutes of St.
Pancras and of the Westminster and St. James companies, the
Central company having no powers of charge whatever. The
statutes of the first three undertakings authorize charging by (a)
or (b) above, or according to the number of hours of actual UBC of
the supply and the maximum current to which the consumer is
entitled, unless the Board of Trade otherwise directs.

Where (b) is adopted as the method of charge, the quantity
of energy supplied shall be the product of the electrical quantity
and the standard pressure at the junction of the distributing
mains and the service lines or at the consumers' terminals. Where
the third method authorized in the case of St. Pancras and the West-
jninster and St. James companies is in operation, the quantity
supplied shall be calculated upon the supposition that the con-
sumer used the maximum current during all the hours of supply.

III. The maximum prices that may be charged for current,
except for public lamps the prices of which are fixed by agreement
or arbitration, are as follows:

Price for

Price Up to . . . Each

per Units per Additional

Undertakings. Quarter. Quarter. Unit.1

Manchester2 13s. 4d. 20 8d.

Liverpool3 13s. 4d. 20 8d.

Glasgow 13s. 4d. 20 8d.

St. Pancras £3 10s. Od. 100 8d.

Newcastle-District 13s. 4d. 20 6d.

London-City 8s. 4d. 12£ 8d.

Westminster 13s. 4d. 20 8d.

St. James 13s. 4d. 20 8d.

Central No limits.

('*) A "unit" is the energy in a current of 1,000 amperes flow-
ing under an electromotive force of 1 volt during 1 hour.

(a) Prices in areas outside the city are to be the same as those
within.

(') These maxima may be increased with the approval of tlie
Board of Trade.

HISTORICAL AND GENERAL. 277

Newcastle — Supply. The limits in the different areas supplied
vary considerably. In Newcastle and Gosforth the company may
charge 13s. 4d. per quarter for the amount used up to 20 units,
but only 6d. per unit for all over 20 units per quarter. In all of
the other areas where current is generally distributed, except
Walker, the limits are 11s. 8d. and 7d., respectively. In Walker
prices are limited to 4d. per unit upon the average, including
meter rentals, and may not exceed the lowest prices charged to
similar consumers in any other district supplied. Power users
need not pay over Id. per unit after the first hour's use at the
maximum. The company must also supply fittings and do wiring
free. In the areas where the company is authorized to supply
in bulk to authorized distributors, the limits are 6d. per unit for
all up to 90 hours' use per quarter at the maximum and Id. per
unit for all over.

Newcastle — District. The price for public lamps is limited to
4d. per unit. In Newburn the limit for lighting is 6d. and for
power 2£d. per unit when not more than 200 hours of supply are
used per quarter at the maximum and Id. when over 200 hours are
used.

IV. There is no method provided for the periodical revision
of these limits for municipal plants, except at St. Pancras, where
the Board of Trade may substitute other limits upon application
of 20 consumers. In the statutes relating to the companies there
are clauses which authorize the Board of Trade, when so requested
by the local authority or the company, to establish new limits
any time after seven years from the granting of powers or from
the last revision. The only companies to which this does not
apply are the City of London and the Central, and it applies to
the former in Southwark. The act of the Central company extends
the above plan for periodical revision to every area supplied by
any company which receives electricity from the Central company.

V. There are no limits upon the prices which may be
charged for fittings or apparatus, but the acts generally prescribe
that the municipality or the company may be required to furnish
and place meters at reasonable rates, no amounts being named.
In Liverpool the scale of prices must be approved by the Board of
Trade. Where deposits may be required, interest at 4 per cent,
per annum must be paid on every 10s. deposited.

See also data under J 8 and K 6.

J 6. How has working capital been secured ?

Working capital is provided in the case of private undertakings
ofttimes by the use of capital stock or loans. The memorandum and
articles of association of private undertakings give power to the
directors to raise capital in this way. In some cases, however,
working capital has been provided by bank overdrafts, which prac-
tically mean loans from the bank ; and in other cases by the use of
reserve and other funds. In municipalities the conditions are dif-
ferent, as a municipality has to obtain a special act to carry out
certain definite work, and Parliament authorizes the borrowing of
money for specific purposes, and this does not include any provis-
ion for working capital. The Local Government Board does not
approve of municipalities borrowing money from banks. Conse-
quently the only way a municipality can provide working capital is
either by levying a rate, which is in excess of its actual needs, or in
charging such a price for electricity as will allow it to accumulate
a profit which can be used for the purposes of working capital.

Manchester. The surplus funds created out of revenue amount
to £304,612. Of this sum the reserve fund, amounting to £20,387,
is specifically invested in government securities, and £234,225 have
been applied in redemption of debt. The balance of £50,000 has
been applied as to £30,908 in capital outlay and as to £19,092 in
the provision of working capital.

Liverpool. The net working capital is £11,789, being the value
of stock on hand and debts owing to the plant, after deducting the
amount owing to sundry creditors. This working capital has been
provided out of bank overdraft.

Glasgow. Working capital has been provided out of the surplus
funds created out of revenue, amounting to £237,091, of which
£178,531 have been invested in the works, and the balance of
£58,560 is represented by stock and debts, less the amount due to
sundry creditors, as follows:

ELECTRICITY FINANCE. 365

Loan debt outstanding £1,206,332

Loans repaid by means of sinking fund 83,668

£1,290,000
Add : Surplus and other funds 153,423

£1,443,423
Deduct: Capital outlay 1,384,863

£58,560

Made up as follows:

Debts owing to plant £24,826

Stocks on hand 41,990

Cash in bank.. 878

£67,694
Deduct : Sundry creditors 9,134

£58,560

St. Pancras. Working capital was provided out of surplus
funds, built up from revenue account, as follows :

Loan debt outstanding £423,654

Loan debt repaid by means of sinking fund 54,803

£478,457
Add : Surplus and other funds 35,631

£514,088
Deduct: Capital outlay 498,027

£16,061

Made up as follows :

Sundry debtors £25,967

Stores in hand 6,613

Cash in bank and in hand 30,905

£63,485
Less : Sundry creditors £47,424

£16,061

Newcastle — Supply. Working capital was supplied by this
company in debts owing to sundry creditors, as the amount owing
to sundry creditors exceeds the accounts payable to the company
and stock on hand. Table showing the amount of working capital
raised follows :

366 NATIONAL CIVIC FEDERATION.

Share capital £750,000

Loan debt outstanding 250,000

Temporary loans 61,089

£1,061,089
Add : Surplus and other funds 199,304

£1,260,393

Deduct: Capital outlay £1,211,286

Office furniture 5,320 1,216,606

£43,78?

Made up as follows :

Sundry debtors £59,924

Stores on hand. 31,396

Cash in bank and on hand 4,023

Investments 115,125

£210,468
Deduct sundry creditors 166,681

£43,787

Newcastle — District. Working capital is provided by means
of bank overdrafts, temporary loans and surplus funds :

Share capital £234,851

Loan debt outstanding 150,000

£384,851

Add : Temporary loans 36,200

Surplus and other funds 22,234

£443,285
Deduct from capital outlay 470,518

£27,233

Made up as follows :

Bank overdraft £6,763

Sundry creditors 34,824

£41,587

Less : Debts due to plant £13,500

Stores on hand 736

Cash in hand 118 14,354

£27,233

ELECTRICITY FINANCE. 367

London — City. Working capital was raised by bank over-
drafts, surplus funds and premiums on shares:

Capital outlay £2,036,071

Less : Loans and share capital 1,805,950

Overexpended £230,121

Surplus and other funds 273,286

Working capital £43,165

Made up as follows':

Sundry assets £191,501

Sundry creditors 148,336

Working capital £43,165

The surplus funds provided out of revenue, etc., are invested
in the outlay on plant.

Westminster. Working capital was raised by means of surplus
funds, built up out of revenue. Table showing this follows :

Share capital £751,000

Loan debt outstanding 250,000

Add : Surplus and other funds 231,479

£1,232,479
Deduct: Capital outlay 1,052,781

£179,698

Made up as follows :

Sundry debtors £73,631

Stock of stores 2,157

Cash in bank and in hand 44,561

Investments 66,064

Central Electric Supply Company 60,863

£247,276
Deduct : Sundry creditors 67,578

£179,698

St. James. Working capital was secured by means of capital
stock, loans and surplus funds, built up out of revenue. Table
showing working capital is as follows:

Share capital £300,000

Loan capital 150,000

£450,000
Less : Capital outlay 431,657

£18,343
Add : Surplus and other funds 69,665

£88,008

368 NATIONAL CIVIC FEDERATION.

Made up as follows :

Investments,, etc £81,3-47

Stores on hand 7,373

Sundry debtors 29,897

Cash in hand and in bank 6,486

£125,103
Less : Sundry creditors 37,095

£88,008

Central. This company raised working capital by loans from
the bank and uninvested reserve funds, built up out of revenue
account :

Accounts receivable £24,610

Stores 2,891

Cash 1,814

£29,315

Made up as follows :

Creditors £7,991

Bank loans 20,000

From reserve funds 1,324

SUMMARY: SOURCES OF WORKING CAPITAL.

Manchester — Surplus funds out of revenue.

Liverpool — Bank overdraft.

Glasgow — Surplus funds out of revenue.

St. Pancras — Surplus funds out of revenue.

Newcastle-Supply — Amounts owing to sundry creditors exceeds
debts owing to company and stocks on hand.

Newcastle-District — Bank overdraft, temporary loans and sur-
plus funds.

London-City — Bank overdraft, surplus funds and premiums on
shares.

Westminster — Surplus funds out of revenue.

St. James — Loans, surplus funds out of revenue and capital
stock.

Central — Loan from bank and uninvested reserve funds.
J 7. What provisions have been made for payment of capital
liabilities when due?

See inquiries B 3, D 22, D 25, I 27, I 28 and I 33.
J 8. Give the cash capital raised by the undertaking.

In the following table all items of premium added on con-
version of capital stock or loans to a lower rate per cent, have
been eliminated from the liabilities as shown in the balance sheets
below. We have added to the capital stock and loans appearing

ELECTRICITY FINANCE. :;«?j

in the balance sheets all items of premiums received on issue of
the same which have been credited to premium capital account or
reserve or other funds in the accounts of the plant. We have also,
where possible, deducted from the capital outlay (as shown in the
balance sheets) all items of premium and good- will which are thus
included.

In municipal plants we have added to the loan debt out-
standing the amount of loans actually repaid out of sinking fund
in order to arrive at the original capital raised for purposes of the
undertaking. This is the only way in which the capital raised by
municipalities can be compared with the capital raised by private
companies, in which latter case no repayment of capital is required
to be provided out of revenue.

Loan Capital Raised. Capital Total

Total

Still Out- Repaid by Stock Capital • Capital
standing. Sinking Raised. Raised. Expended

Manchester 1,978,235

Liverpool 1,405,993

Glasgow 1,206,332

St. Pancras 423,654

Fund.

234,225

113,209

83,668

54,803

Municipalities 5,014,214 485,905

on Work*.

£ £

2,212,460 2,199,690

1,519,202 1,849,775

1,290,000 1,384,86:5

478,457 a498,027

5,500,119 5,932,355

Newcastle-Supply . .
Newcastle-District .

London-City

Westminster

St. James

Central .

250,000 905,676 1,155,676 1,211,286

150,000 255,069 405,069 470,518

765,280 1,185,950 1,951,230 2,036,071

250,000 776,000 1,026,000 1,052,781

141,500 376,043 517,543 '431,657

339,376 100,000 439,376 451,903

Companies 1,896,156

3,598,738 5,494,894 5,654,210

Total 6,910,370 485,905 3,598,738 10,995,013 11,586,571

It will be noticed from the above table that the municipalities
have expended more capital than they have raised. This arises
from the fact that in many cases the surplus funds provided out of
revenue have been used in extension of works. In the case of
private undertakings capital expenditure is also greater than the
capital raised. This is explained by the fact that private under-
takings employ part of the capital raised in providing working
capital.

In all instances the capital outlay is stated at the original cost,
except in the cases of St. Pancras and St. James, where the values are
after deducting depreciation.

Vol. III.— 25.

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ELKCi'UH'ITY FINANCE. IlTt

K 3. Analysis of special items where possible.

In some cases it is impossible to obtain any detailed analysis
of capital outlay except as to works undertaken by the municipality.
This difficulty arises from the fact that the municipality has pur-
chased from the private company at a lump sum, and also in the
case of private undertakings that they have purchased from other
companies or have been formed by the amalgamation of two or
more companies.

Manchester. "Capital outlay" is made up of:
Generating stations —

Land £75,607

Buildings 314,027

Machinery and switchboards 581,871

Stuart street viaduct, permanent way, etc 77,862

Battery station — Building and machinery 6,668

Distributing stations — Land, buildings and machinery. 263,564

Spare plant 4,058

Suspense account 2,930

Mains 760,443

Meters 48,770

Motors 8,646

Electrical instruments 4,378

Cable stores — Land, buildings and machinery 30,532

Cottage property 2,456

Office furniture 2,288

Engineers' remuneration 15,600

Total £2,199,690

Liverpool. "Capital Outlay" is composed of:
Purchase money paid to Liverpool Electric Company . . £400,000
Additional capital spent by the company but not in-
cluded in share capital 36,474

Purchase money paid to the Garston & District Co. ... 48,080
Outlay by City:

Lands £7,625

Buildings 222,996

Machinery 487,146

Accumulators 8,580

Mains 553,239

Meters 28,493

Electrical instruments 6,180

Patents Ill

1,314,370

Cost of Board of Trade Order 3,481

Discount and expenses of issue of stock 41,981

Advance interest on stock 5,389

Total £1,849,775

372 NATIONAL CIVIC FEDERATION.

Glasgow. "Capital Outlay" consists of:

Original Depreciation Value May

Cost. Written Off. 31, 1905.

Land ) f9nv -S1 „ j £48,967

Buildings f £207,58 £2>663 [ 155,951

Steam plant and electric.. 355,998 67,400 288,598

Lines 761,445 54,679 706,766

Meters 54,174 11,628 * 42,546

Electrical instruments 1,687 352 1,335

Office furniture and misc. 3,978 3,978

Total £1,384,863 £ 140,700 £1,244,163

St. Pancras. "Capital Outlay" is composed of:

Lands, including law charges on acquisition £41,747

Building and paving 63,548

Machinery, plant and tools 139,293

Mains, including cost of laying the mains and services,

and royalties , 222,267

Public lamps 1,334

Meters, indicators, switches, etc 24,967

Electrical instruments, etc 1,445

Office and other furniture and fittings 596

Extensions, mains for scheme D of arc lighting 2,830

Total £498,027

Newcastle — Supply. "Capital Outlay" is made up of :

Lands, including law charges on acquisition £49,448

Buildings 120,228

Machinery 438,731

Accumulators at stations 18,683

Mains and cost of laying 347,284

Transformers, motors and installations on consumers'

premises 123,740

Meters 22,902

Electrical instruments, etc 43,165

Office furniture 5,320

Whitley & Monkseaton and other orders — mains,

plant, etc., purchased 1 7,994

Cost of license, provisional orders, etc. —

Own powers £28,261

Whitley, etc., order 850 29.111

Total £1,216,606

"Investments" consists of the following items :

Priestman Power Co., Ltd., 10,000 shares at £1 £10,000

Tyneside Tramways and Tramroads Co., 1,300 shares

at £10 each. 13,000

ELECTRICITY FINANCE. 373

County of Durham Electrical Power Distribution Co.,
Ltd.—

10 preference shares at £5 each

9,815 ordinary shares at £5 each

Building Societies' loans . .

Total £115,125

Newcastle — District. "Capital Outlay" is as follows :

Newcastle. Newburn. Total.

Lands £42,491 £3,350 £45,841

Buildings 42,127 11,461 53,588

Plant and machinery 118,507 19,719 138,226

Accumulators at stations 9,773 9,773

Mains 143,217 21,249 164,466

Transformers, motors, etc 27,337 !3,838 31,175

Meters, and fees for certifying. . 18,112 254 18,366

Electrical instruments 1,565 598 2,163

Free wiring 1,122 576 1,698

Cost of license, provisional order .. 810 520 1,330

Office furniture.. 592 592

£405,653 £61,565 £467,218
Add Suspense account 3,300

£470,518
London — City. "Capital Outlay" is made up of :

Machinery and plant ' £669,748

Mains, including cost of laying and repaying 584,447

Telephone conduits now in use 51,378

Wiring, motors and fittings on hire 2,545

Transformers and accessories 77,802

Meters and electrical instruments 70,847

Lamp posts, lanterns, lamps and accessories 28,427

Tools and plant 13,883

Office furniture and fixtures 1.753

Buildings 225,074

Freehold and leasehold land and buildings 161,223

Warehouses and other works at Wool Quay 48,877

Artisans dwellings and other premises sublet at Bank-
side (excluding cost of land) 12,038

Cost of obtaining Southwark Provisional Order, 1891,

expenditure on mains, meters, etc 38,453

Proportion of management and general* expenses,

chargeable to capital2 41,728

1 M'otors only.

2 These charges were all expended prior to 1897. They include
rates and taxes, rents, salaries, directors' fees, remuneration of chief
engineer, professional charges, etc., and were approved by both the
Board of Trade and professional auditors.

374 NATIONAL CIVIC FEDERATION.

Cost of obtaining three provisional orders under agree-
ments with contractors; expenses in connection
with 1893 and 1900 Acts, etc £7,848

Suspense account1 5,000

£2,041,071
Westminster. "Capital Outlay" is composed of :

Lands, including law charges at acquisition £49,560

Buildings 232,879

Plant and Machinery 268,679

Mains ". 387,442

Meters and cost of certifying 59,947

Instruments 1,661

Purchase of City of Westminster Electrical Syndicate. . 10,133

Furniture and fittings, less depreciation 1,391

Public lighting, arc lamps, fittings and connections. . . . 37,607

Provisional orders, etc 3,482

£1,052,781

"Investments" consists principally of debenture stock of the
Central company amounting to over £60,863 and share capital
in the same company to the extent of £50,000.

St. James. "Capital Outlay" consists of the following:

Freehold land, including law charges at acquisition. . . . £126,208

Buildings and paving 105,243

Machinery and fixed plant 98,425

Tools and loose plant 1,094

Accumulators 1,015

Mains, including cost of laying 82,382

Meters fixed on installations 4,740

Switches fixed on installations 1,946

Stores and labor used on installations 5,751

Electrical instruments 1,281

Office furniture and fixtures 1,091

Artesian well 1,022

Cost of license and provisional order Board of Trade

inquiry and Parliamentary and legal expenses. . . . 1,459

£431,657

"Investments" includes :
Central Electric Supply Co., Ltd.—

10,000 £5 ordinary shares £50,000

5,000 4 per cent. Debenture Stock 4,213

Birmingham Corporation :
£12,000 3 per cent, stock 11,620

1 The formation expenses of the company have been written off
out of revenue. In 1905 the directors placed £7,500 to a suspense
account to provide Parliamentary charges, which they propose to write
off out of revenue in three years.

ELECTRICITY FINANCE. y-r,

Cape Town Consolidated 3 per cent, stock :
£16,300 stock £15,514

Total £81,347

(The market value December 31, 1905, of the last three items
was £30,636.)

Central. "Capital Outlay" consists off:

Land, including law charges at acquisition £136,092

Buildings, including leasehold properties, railway siding

and other works 115,151

Machinery and fixed plant 144,774

Mains, including cost of laying 39,538

Tools and loose plant 2,264

Accumulators 723

Office furniture and fixtures 285

Electrical instruments 195

Artesian well 936

Management and general charges 4,236

£444,194
"Sinking Fund" was invested in :

£6,566 Metropolitan 2£ per cent, stock £5,265

£6,846 New South Wales 3 per cent, stock 6,190

£11,455
Other investments were £1,473 2| per cent. Consols.. 1,616

Total £13,071

The above investments are included in the list of assets at
the above costs, whereas the actual value at the end of 1905 was
£618 in excess of that amount.

K 4. Do the values above given represent the original cost of the
present assets, their present market value, or cost of du-
plication ? State how values were fixed ?

Municipalities. Original cost.

Newcastle — Supply, District. Original cost.

London — City. Capital expenditure is original cost with cost
of dismantled items deducted therefrom.

'Westminster, Central. Original cost.

St. James. Original cost less depreciation.

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ELECTRICITY FINANCE. 377

K 6. Special items analysed where possible.

Municipalities. Three of the four plants had bank over-
drafts. This might appear misleading unless attention is drawn
to the fact that in each case the municipality had cash to its credit
in the bank on other accounts, and that the subdivision was merely
an accounting convenience in order to keep each fund distinct.
These overdrafts were as follows:

Overdraft on Set Off Against Cash in Bank.
Capital Revenue On What Amount.

Town. Account. Account. Account.
Manchester £6,786 Capital. £43,680

Liverpool £192,455 11,789 j GenofaCityUndS } 285,342

Glasgow

St. Pancras 20,581 14,847 Reserve Fund. 30,898

Liverpool. "Loan debt secured" consists of mortgages, £750,-
382, and corporation stock, £655,612.

St. Pancras. "Sundry creditors" is made up of trade ac-
counts, £5,956, and amount due in aid of rate, £5,000.

Newcastle — Supply. "Sundry creditors" consists of unpaid ac-
counts, £136,752, and unpaid dividends, £29,929.

Newcastle — District. "Sundry creditors" is made up of un-
paid accounts, £29,391, and unpaid dividends, £5,433.

London — City. "Sundry creditors" consists of :

Sundry tradesmen £8,714

Open accounts 7,455

Debenture interest 15,912

Unclaimed dividends 35

Preference dividends 11,400

Ordinary dividends 23,473

£66,989

Westminster. "Sundry creditors" is made up of:

Tradesmen's accounts £25,579

Unclaimed dividends 4

Dividends due 37,306

Debenture interest 4,156

£67,045

In addition to the foregoing liabilities this company has
jointly with the St. James and Pall Mall Electric Light Company
Limited, guaranteed the principal and interest on £500,000 4
per cent, debenture stock of the Central Electric Supply Company,
Limited, of which £336,876 had been issued at December 31, 1905.
St. James. "Sundry creditors" is composed as follows:

Shareholders for dividends

Open accounts

Amounts due on construction

Interest on debentures less tax

Unclaimed dividends

£37,095

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380 NATIONAL CIVIC FEDERATION.

The following notes are to L 2.

1 The quantity of electricity sold to private consumers by meter
was as follows :

3,743,827 units, at 6d £93,596

3,829,078 units, at 3*d 26,674

146,542 units, at 3d 1,832

664 units, at 2d 5

3,830,332 units, at lid 23,939

5,742,660 units, at Id 23,928

1,349,150 units, at |d 4,216

16,642,253 £174,190
There were also 80,710 units sold unmetered and 1,525,505 units for
public lighting.

z Sales of current by nieter were as follows :

848,799 units, at 6d £21,220

830 units, at 5d 17

1,141,984 units, at 4d : 19,033

364,535 units, at 3d 4,557

286,219 units, at 2d 2.385

1,316,759 units, at lid 8,230

1,088,848 units, at Id 4,537

Minimum charges 19

£59,998
; Current sold at 1J d. per unit, 1,607,800 units.

4 Indicator rentals.

5 The units sold during the past year at the various rates were a^
follows :

13,949,923 units sold at less than f d.
7,046,844 units sold at |d. or more, but less than Id.
6,582,891 units sold at Id. or more, but less than lAd.

833,518 units sold at lid. or more, but less than 2d.

234,258 units sold at 2d. or more, but less than 3d.
1,731,418 units sold at 3d. or above.

6 Including besides rents from motors and other appliances of
£2,80S, rents from manufacturers' installations of £8,485.

7 Public lighting, including rental and maintenance of

arc lamps, poles, etc £21,488

Deduct cost of cleaning, recarboning, etc., of public arc lamps,
but excluding generation, establishment and other ex-
penses 4,8'Jl

The following notes are to L 4.

1 Includes donations to thrift funds.

Includes expenditures for official clothing, borrowing money,
stamp duty, certification of meters, etc.

3 The item of £3,074 for " other general expenses " includes £2,000
paid to the city to cover the salaries and expenses of city officers who
devote part of their time to business of the electricity department, such
as the town clerk, treasurer, auditor, etc.

Of this amount £3,482 were expended for attending and repairing
public lamps.

B Various items are included in office expenses, probably some here
left blank.

6 For lamps and fittings supplied to consumers' on change of
voltage.

' These were high, on account of the cost of opposing a new com-
pany seeking to obtain Parliamentary powers to supply electricity
throughout the whole of London and a large portion of the adjoining
counties.

8 The wages and salaries are not separated for generation and
distribution ; that is, the item of £3,476 for salaries includes both gen-
eration and distribution, and likewise that of £6.353 for wages.

' Deducted from sales of current.

10 Including £1,336 for " rebates in lieu of collection commissions
and various fines."

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GENERAL HISTORY AND LEGISLATION

British Tramways

(Schedule I)

Bv MILO R. MALTBIE

Sources: As Schedule I relates principally to the statutory
and legal provisions affecting the undertakings examined, the
most important sources are the acts of Parliament and judicial
decisions. Of almost equal value are the Sessional Papers, espe-
cially in those instances Avhere special reports have been made by
select committees of Parliament, and where the evidence has been
printed in full (London principally). Occasionally a verbatim
report of the proceedings before a Parliamentary committee when
a private bill affecting the undertaking, usually for the grant of
powers or the extension of capital, may be found, but ordinarily
no record is kept, and when printed they are issued by the city or
the company itself.

The records, reports and documents of the city department or
of the company, as the case may be, often contain much of value,
especially those issued when the undertaking was started or when
changes in management were mooted or actually made. In the
case of municipal plants or when a transfer of the undertaking
from the company to the city was being considered, the council
minutes are useful.

The principal secondary sources which are of such high stand-
ing as to be recognized as authentic are :

Bell and Paton: "Glasgow: Its Municipal Organization and
Ad m inistration."

Corporation of Glasgow: "Handbook on the Municipal En-
terprises."

Hudson, editor: "The Manchester Municipal Code." 6 vols.

Hope: "Handbook Compiled for the Congress of the Eoyal
Institute of Public Health." (Liverpool.)

Hopkins : "Tramway Legislation in London and Tramways
Belonging to Local Authorities."

Stanuell: "The General Tramway (Ireland) Acts and Or-
ders in Council Thereunder, with Index."

Garcke: "Manual of Electrical Undertakings and Directory
of Officials." 10 vols.

384 NATIONAL CIVIC FEDERATION.

Eawlinson & Johnston: "The Municipal Corporations Acts
and Other Enactments * * * Ninth edition.

Eobertson: "The Law of Tramways and Light Railways in
Great Britain." Third edition.

The Electrician: "Electrical Trades' Directory and Hand-
book." Twenty-fourth year.

"Will : "The Law Relating to Electric Lighting, Traction and
Power." Third edition.

In each town there is usually a considerable amount of pamph-
let and periodical literature which throws some light upon the sit-
uation.

Principal Acts of General Application.

Companies Clauses Consolidation Acts, 1845-1889.

Companies Acts, 1862-1900.

Lands Clauses Consolidation Acts, 1845-1895.

Borough Funds Act, 1872, c. 91.

Local Loans Act, 1875, c. 83.

Public Health Act, 1875, c. 55.

Municipal Corporations Act, 1882, c. 50.

Employers' Liability Act, 1880, c. 42.

Local Government Act, 1888, c. 41.

Workmen's Compensation Acts, 1897, c. 37, and 1900.

Electric Lighting Acts, 1882, c. 56 ; 1888, c. 12 ; 1899, c. 19.

Electric Lighting (Scotland) Acts, 1890, c. 13; 1902, c. 35.

Tramways Act, 1870, c. 78.

Light Railways Act, 1896, c. 48.

Individual Undertakings.

Glasgow Street Tramways Act, 1870.

Glasgow Corporation Tramways Acts, 1872, 1875, 1879, 1885.

Glasgow Corporation Acts, 1884; 1891, c. CLXXVI; 1893, c.

CCVIII.
Glasgow Corporation (Tramways, Libraries, etc.) Act, 1899, c.

CLXVI.
Glasgow Corporation (Improvements and General Powers) Act,.

1897, c. CCXV.
Glasgow Corporation (Tramways and General) Order, 1901, •.

CLXXIX.

Glasgow Corporation (Water and General) Order, 1902, CCLXL
Glasgow Corporation Tramways Order, 1903.
Glasgow Corporation (Tramways Consolidation) Order, 1905. o.

CXXVIII.

Clydebank Burgh Tramways Order, 1903.
Vale of Clyde Tramways Act, 1871, c. LXV.
Govan Burgh (Tramways) Act, 1893, c. LXIX.

HISTORICAL AND GENERAL. 385

Manchester Corporation Tramways Orders, 1875, c. CLXVII;

1878, c. CLXIII; 1881, c. CV; 1893, c. CXCIII; 1896, c.

CXX; 1897, c. CLI.
Manchester Corporation Tramways Acts, 1899, c. CCLIV; 1900,

c. CCXCT; 1902, c. XLI; 1904, c. CCXI.
Manchester Corporation Acts, 1897, c. CCXLI; 1901, c. CXCIII;

1903, c. CCXIII.
Manchester Suburban Tramways Orders, 1877, c. CXXIV; 1878,

c. CLXI.

Manchester Suburban Tramways Act, 1879, c. CXC.
Manchester Carriage and Tramways Company Act, 1880, c.

CXLIIL
Manchester Carriage and Tramways Company Orders, 1882, c.

CXXXVIII ; 1897, c. CLI.
Rusholme Local Board of Health Tramways Orders, 1877, c.

CXXIV; 1881, c. CV.

Moss Side Tramways Orders, 1878, c. CCXXXI; 1897, c. CLI.
Moss Side Tramways Act, 1899.

Newton Heath Local Board Tramways Order, 1878, c. CCXXXI.
Withington Tramways Orders, 1880; 1897, c. CLI.
Withington Tramways Acts, 1899, c. CCXX; 1900.

Liverpool Tramways Acts; 1868, c. CLXVII; 1870, c. CLXXVI;

1871, c. CLVII; 1875, c. XLVIII; 1880, c. CXXVI;

1882, c. XCII; 1885, c. CXLV; 1892, c. CXXXIV.
Liverpool Tramways (Purchase) Act, 1872, c. CXXII.
Liverpool United Tramways and Omnibus Company Act, 1879, c.

XCVI.

Liverpool Corporation Tramways Act, 1897, c. CIV.
Tramways Orders Confirmation Acts, 1879, c. CXCIII; 1881, c.

CV; 1882, c. CXXXVIII; 1883, c. CXXXI; 1884, c.

CXII; 1888, c. XCV; 1891, c. CLXII; 1894, c. CLXII;

1898, c. CCIX; 1900, c. CCVIII; 1901, c. CCLXXVII;

1905, c. CXCIII.

Liverpool Corporation Acts, 1900, c. CCXXXVII ; 1902, c. CCXL.
Liverpool Corporation (General Powers) Act, 1905, c. CLXXVII.
London Street Tramways Acts, 1870, c. CLXXI; 1895.
London Street Tramways (Further Powers) Act, 1873, c. CCXXI.
Metropolitan Tramways Orders Confirmation Act, 1873, c. CCXV.
Tramways Orders Confirmation Act, 1874, c. CLXXXIIT.
London Street Tramways (Caledonian Eoad Extension) Act, 1877,

c. CCXIX.
London Street Tramways (Extensions) Acts, 1879, c. CLXXXIX;

1882, c. CLXIII; 1884, c. XCIV; 1885, c. CXV; 1887,

c. IV; 1888, c. LXXVIII.

Metropolitan Street Tramways Act, 1869, c. XCIV.
Pimlico, Peckham and Greenwich Street Tramways Acts, 1869,

c. XCV; 1870, c. CLXXIV.
Pimlico, Peckham and Greenwich Street Tramways (Extensions)

Act, 1870, c. CLXVII.

Vol. III.— 26.

386 NATIONAL CIVIC FEDERATION.

London Tramways Company (Limited) (Purchase) Act, 1873,

c. CCIV.
Southwark and Deptford Tramways Acts, 1879, c. LXXII; 1881,

c. CLXXIII; 1889, c. CXLVIII.
South London Tramways Acts, 1879, c. CXCVII; 1881, e.

CLXXX1V; 1882, c. CXCII; 1883, c. CLXVII.
South London Tramways (Extensions) Act, 1880, c. XVI.
Peckham and East Dulwich Tramways Acts, 1882, c. CCXIII;

1883, c. CCXXVII; 1885, c. CXCIX; 1887, c. CLXXXIII.
South Eastern Metropolitan Tramways Acts, 1884, c. CXLVII;

1888, c. CLXXXVI; 1900.

Metropolitan Street Tramways Act, 1870, c. CLXXIII.
London Tramways Company (Limited) Various Powers Act, 1888,

c. CXLIV.
London Tramways Company (Limited) Acts, 1889, c. CXXIV;

1890, c. XXIV; 1894, c. CXXXII; and 1896.

Lea Bridge, Leyton and Walthamstow Tramways Acts, 1881, c.

CLXX; 1884, c. CCXLIV; 1889, c. CLVIII.
London, Deptford and Greenwich Tramways Acts, 1891, c.

CLXXIII; 1893, c. CCXII.
North Metropolitan Tramways Acts, 1869, c. CI; 1870, c.

CLXXII; 1871, c. CLXXIX; 1873, c. LXXVIII; 1874,

c. XLV; 1877; c. CXI; 1880, c. XCVII; 1882, c.

CXXXVI; 1884, c. CLXVIII; 1885, c. XXVI; 1887, c.

XII; 1888, c. CXXII; 1890, c. XLVI; 1892, c. CLX; and

1897.
Tramways Orders Confirmation Acts, 1879, c. CXCIII; 1880, c.

CLXXIII; 1881, c. CLXIV; 1890, c. CLXXXII.
North London Tramways Acts, 1882, c. CXCIV; 1883, c. CXLII;

1884, c. CXCII; 1886, c. XXXIX.

London County Council (Vauxhall Bridge Tramways) Act, 1896,

c. CCXI.
London County Council Tramways Acts, 1896, c. LI; 1900, c.

CCLXX.
London County Council (Tramways and Improvements) Acts,

1901, c. CCLXXI; 1903, c. CCXIX; 1904, c. CCXXX.
London County Council Tramwavs (Electrical Powers) Act, 1900,

c. CCXXXVIII.
London County Council (Subways and Tramways) Act, 1902, c.

CCXVIII.

And many others of less importance.
London United Tramways Act, 1898, c. CCLVI; 1899, c. CXCIV;

1900, c. CCLXXI; 1901, c. CLX; 1902, c. CCXLVII;

1903, c. CXCI; 1904, c. CXCVIII; 1905, c. L.
Orders under Light Eailways Act, 1898 and 1904.
Metropolitan Orders Confirmation Act, 1873, c. LXXXV.
Metropolitan Tramways Orders Confirmation Act, 1873, c. CCXV.
Tramways Orders Confirmation Acts, 1876, c. CL; 1881, c.

CLXIV; 1887, c. CXCVI; 1895, c. C.
West Metropolitan Tramways Acts, 1882, c. CCV; 1889, c. CCII;

1891, c. CXXXII; 1893, c. XLVIII.

HISTORICAL AND GENERAL. 387

Dublin. Tramways (Ireland) Acts, 1860, c. 152; 1895, c. 20;

1900, c. 60.
Tramways (Ireland) Amendment Acts, 1861, c. 102; 1871, c.

114; 1881, c. 17; 1801, c. 42.
Dublin Tramways Acts, 1871, c. LXXXVIII; 1873, c. XCI;

1878, c. CXLIX.
North Dublin Street Tramways Acts, 1875, c. CCIX; 1876, c.

CCXXXIII; 1880, c. CLXIX.
Dublin Southern District Tramways Acts, 1878, c. CLIX; 1883,

c. CCXXXII; 1887, c. XLIV; 1893, c. CCXX; 1898, c.

CLVIIL

Dublin Central Tramways Act, 1878, c. CLVIII.
Dublin United Tramways Acts, 1881, c. CXL; 1896, c. CCXXIII;

1905, c. CLXY.
Dublin United Tramways (Electrical Power) Act, 1897, c.

CCXXXVI

Dublin United Tramways (New Lines) Act, 1897, c. CCXXXV.
Blackrock & Yungstown Tramways Act, 1883, c. CIV.
City of Dublin Tramways Order, 1867.
Dublin Tramways Order, 1877.
Dublin United Tramways Extension Order, 1885.
Dublin United Tramways (Junctions and Extensions) Order,

1892.

Dublin United Tramways (Alteration and Deviation) Order, 1892.
Dublin Southern District Order, 1893.
Dublin United Tramways (Construction and Diversions) Order

1895.

Dublin Southern District Tramways Order, 1894.
Dublin United Tramways Company (Extensions and Alterations)

Order, 1899.
Dublin United Tramwavs Company (Extensions of Lines) Order,

1903.

Norwich. Electric Tramways Acts, 1897, c. CCLIV; 1898, c.
CXXVII.

A— HISTORICAL AND GENERAL.
A 1. Date when undertaking began to operate.
A 2. Character of original organization, whether individual,

firm, corporation, municipal or other form.
A 3. Character of present organization, whether individual, firm,

corporation, municipal or other form.
A 4. Date when municipal operation was begun.

Towns. Al A2 A3 A4

Glasgow 1872 Municipal ownership

and company oper-
ation. Municipal. July 1, 1894

Manchester 1877 Municipal ownership

and company oper-
ation. Municipal. June 7, 19011

'The transfer of all lines was not completed until 1903, the system
being taken over as rapidly as it could be electrified.

388 NATIONAL CIVIC FEDERATION.

Towns. Al A2 A3 A4

Liverpool ( ?)18G9 Company ownership

and operation. Municipal. Sept. 1, 1897

London C. C.1 1870 Company ownership

and operation. Municipal. Jan. 1, 1S992

London United.. 1873s Company. Company

Dublin 1872 Company. Company

Norwich 1900 Company. Company

A 5. Give date and character of changes in ownership since
origin.

A 6. State method of making each change.
A 7. State terms of each arrangement.
A 8. State fully reasons for each change.

Glasgow. In 1870 two rival companies applied to Parlia-
ment for powers to operate street railways in Glasgow. The town
council opposed both schemes and especially the idea of having
competing companies with duplicate lines in the same streets. As
a result the two companies were amalgamated and a provision
inserted in the bill authorizing the city to lay tracks, provided it
decided to do so within six months, and to lease the lines to a pri-
vate company or to adopt municipal operation. This last provision
was probably an oversight, as Parliament strongly opposed the ex-
tension of municipal activity in this direction and in the general
Tramways Act of the same year, it was expressly stated that power
to operate was not thereby conferred upon any municipal authority.

Immediately after the enactment of the bill, the council de-
cided to construct tramway lines rather than permit a private com-
pany to do so. A private company leased the lines from the city,
agreeing to pay:

(1) The interest on the entire amount borrowed by the city
for the construction of tramways;

(2) A sinking fund of three per cent, on the same capital
expenditure, which was to be used by the city in writing off cap-
ital, so that at the end of the lease the entire indebtedness would
be wiped out;

(3) A yearly sum equal to 4 per cent, on cost of construc-
tion, which was to form a fund for replacing the track as rapidly
as it became worn out ;

(4) A mileage rate of £150 per mile per annum;

(5) All expenses incurred by the city in connection with
tramways; and

(6) All expenses for the paving and repairing of the road-
way between the rails and eighteen inches beyond the outer rail.

1 This abbreviation is used throughout for the London County Coun-
cil tramway system south of the Thames, the system examined in this
investigation and the only one operated by the council during 1904-5.

2 Since this date, several other lines have been taken over as agree-
ments could be made or as the leases expired.

? This is the date when the first line of this system was authorized
by Parliament. Operation was not begun for some time thereafter.

HISTORICAL AND GENERAL. 389

The company further agreed :

(7) To limit fares to certain amounts;

( 8 ) To run workmen's cars at half fares, and

(9) To submit to certain fines for violation of agreement.
The lease was to run for twenty-three years, or until July 1,

1894, and it was expected that when lines were constructed, not
included within the lease, similar conditions would be agreed to.
As a matter of fact, not one of the subsequent leases was so favor-
able to the city as the above. The agreement of 1879, for example,
contained no provision for a sinking fund or a renewal fund, and
similar omissions are found in other instances. All were to ter-
minate in 1894.

When the question of leasing new lines came up, the company
which had signed the original lease soon perceived that it had an
advantage over competitors and the city as well; for, when once
a company has secured control of a rather large mileage, a new
company cannot offer as good terms as the one already established.
The expense of operating a short line is much larger relatively than
that of a longer line. The multiplication of independent com-
panies necessitates frequent changing of cars and higher fares;
and the travelling public prefers to accept less favorable terms from
the established company rather than to introduce competing lines.
The Glasgow company soon realized the advantages of its position,
and could not be induced to offer as favorable terms as had been
inserted in the original lease. These facts do not wholly account
for the difference between the first agreement and those of later
dates (part being due to the less favorable situation of some of
the lines and the shorter terms of the lease), but they are import-
ant factors.

There were disagreements upon other points, e. g., where
and when new lines were to be constructed. The city was
anxious to have the tramways keep pace with the growth of popu-
lation and to provide every section with adequate transportation
facilities. The private company desired large net profits, and un-
less these could be secured, it did not favor extension. The ten-
dency of the company was said to be unduly conservative, while
the municipal authorities were accused of being in advance of
traffic. But whether both were wrong or one was right and the
other wrong, is not very important here. The essential fact is that
disagreement and lack of harmony resulted. There was no open
rupture, but there was an absence of that co-operation without
which the system of ownership and lease could not be entirety sat-
isfactory.

During the period from 1871 to 1894, the system of owner-
ship and lease was a success both to the city and the company
from the financial point of view. The company made all payments
promptly, and the city thus was enabled to fulfill all its obligations.
During the twenty-three years of the lease, a capital expenditure
to the amount of £344,965 was incurred, of which £201,470 was
paid off, leaving £143,495 in loans outstanding. The tracks were

390 NATIONAL CIVIC FEDERATION.

kept in repair and were worth more than the remaining indebted-
ness, according to the judgment of the city officials. Upon re-
newal of permanent way, £126,900 were spent. Also £63,600 were
carried to the "Common Good," an average of £2,766 per year;
and the mileage rate, amounting to some £3,000 during each of
the last two years, went to the same fund. This had been made
possible not by an express provision of the lease, but merely by the
method of dealing with the sinking fund. The company was obliged
to pay to the city interest on the capital expenditure, but the sink-
ing fund, which accumulated at compound interest, was used to
reduce the loans actually outstanding. Thus the city received in-
terest on the gross capital expenditure, but paid interest only on
the capital less the accumulated interest on the sinking fund, as
is shown by the following summarized account for the year ending
May 31, 1894.

Payments by the tramway company to the city:

Interest on capital expenditure £12,466

Mileage rate 3,070

Sinking fund 6,725

Eenewal fund to meet obligations of company in main-
taining lines 7,456

Allowances for chamberlain's office, etc 300

Total ' £30,017

Payments by the city out of the above :

Interest £9,876

Sinking fund 6,725

Sum repaid to company for maintenance of lines 7,456

Expenses of chamberlain's office, etc 300

Common Good 5,660

Total £30,017

In 1889, five years before the expiration of the leases, negotia-
tions for renewal were opened as agreed in 1887. The city sub-
mitted "conditions of let." The company replied that they were
too onerous and vague, and made counter propositions. These
were not satisfactory to the municipal authorities, and after much
correspondence and numerous attempts at conciliation, it became
evident that agreement was practically impossible. At this junc-
ture municipal operation was suggested, and in the municipal elec-
tions of 1890 and 1891, particularly the latter, public opinion
seemed strongly to favor the plan. The following year, the coun-
cil decided to try the experiment and offered to purchase the plant
and equipment of the private company. But again terms could
not be agreed upon; and the general opinion is that the company
did not take a reasonable stand and that municipalization was
necessary.

HISTORICAL AND GENERAL. 391

A big task now confronted the city. Within less than two
years a complete plant for operating the street railways had to be
provided; barns, stores, workshops and sheds erected; cars built
or purchased; horses bought and trained; men employed and
taught to handle cars and horses, etc. Yet all this and more was
accomplished within the required time. At midnight of Saturday,
June 30, 1894, the leases expired, and the company withdrew its
cars, horses and men promptly. The following morning at four,
the city began operation with all the paraphernalia, even to the
shoeing forges, in readiness. The old company began competition
by running omnibuses, but even under such disadvantages as the
department was working, the contest was very one-sided. The
omnibuses disappeared one by one, and the company lost severely.
The expense to the city was much heavier than it would have been
had an agreement with the company been possible, and a horse-car
system was provided just on the eve of the introduction of electric
traction.

To comprehend the reasons which led to munieipalization,
one must go back of 1894 and even of 1889. When the first lease
was made in 1871, the operating company which took over the lease
from the promoting company proposed to issue stock to the amount
of £350,000 when £200,000 was considered a liberal amount for
all legitimate purposes. This aroused a storm of opposition, and
the amount actually paid was reduced to £315,000 ; but as the real
value of the property handed over to the operating company did
not exceed £165,000, the promoters still managed to clear upwards
of £150,000 and possibly more. The capital stock of the company
was not reduced during the period of the lease, and dividends were
paid upon the full amount, often as high as 12 per cent. These
facts did not tend to make the public too sympathetic with the
attitude of the company when it came to claim that it could not
afford to adopt the changes desired.

The disagreements over new leases and new lines came in
the seventies and eighties. But in spite of all, the general senti-
ment within and without the council in 1889 was not in favor of
municipal operation, but of a renewal of the lease. However, there
were certain matters which the public wanted remedied. The
employees of the company had obtained general sympathy because
of their small wages, long hours and improper treatment. Upon
an average they were required to work about fourteen hours a day
and did not receive more than 19s. per week. A deposit of £2
was required to obtain employment. Fines were imposed for reach-
ing their destination if they were too early or too late, for stand-
ing too long or not long enough, and for other offenses. Men
were discharged for being too prominent at a meeting to consider
striking because of these grievances. The town council undertook
to intercede for the men, but was told to look after its own af-
fairs.

The service given by the company aroused frequent com-
plaints. The cars were said to be too few in number, not carefully

:;92 NATIONAL CIVIC FEDERATION.

cleaned and poorly lighted at night. The fares were thought to
be too high, especially in view of the dividends that were paid.
Consequently the "conditions of let" submitted in 1889 contained
provisions to secure these ends.

When it became known that the company would not accept a
lease under the conditions named and that the city had been unable
to come to an agreement, public sentiment began to run in favor of
municipal operation, and many persons who had considered it only
as a last resort came to the conclusion that the step must be taken,
if the workmen were to get fair treatment, service to be improved,
fares lowered and the public interests adequately considered.
Financial gain seems to have been given little consideration and
was not urged as an argument.

Although originally the lines did not extend beyond the
boundaries of the city, a number of suburban routes have been
developed since the city began to operate. Through acts of Par-
liament and agreements with outside local authorities, Glasgow now
owns and operates lines in three counties, six burghs and seven
other local areas; it rents the lines of one other burgh and has
running powers in still another where a private company is op-
erating. Power to build and operate has been given in still others
and the lines are under way, but had not been opened for use
before the close of the year under review.

Only one outside authority — Clydebank — has the right to pur-
chase the lines within its area. In all others where the lines are
owned by Glasgow, the local authority would need to get a special
act of Parliament to enable it to acquire the lines. Glasgow gives
no special compensation for these rights, except that passengers
are to be carried at the same fares as within the city area. The
fact that nothing is paid in aid of rates in Glasgow helped to make
it easy to reach such an agreement. In Govan, where the lines
are owned by the local authority and Leased to Glasgow until 1914,
a cash rental is paid. The lease of these lines was originally
secured by the old tramway company in 1893, and was operated
by it even after it ceased to operate in Glasgow. But it was not
remunerative by itself, and the company was glad to sell it to Glas-
gow in 1896.

Manchester. The first street railways were authorized by a
provisional order in 1875 under the general Tramways Act of
1870. This statute did not permit municipal operation, but it did
allow towns to lay the tracks themselves and then lease the system
to a private company. Manchester took advantage of this pro-
vision upon the ground that it ought to have complete control over
its streets and particularly of the surface, that it could thereby
supervise private management better than if it allowed a com-
pany to build and own the tracks as well as operate cars, and that
the city would benefit financially by the rentals it could demand
and the lower fares, better service, etc., it could require. The plan
had already been tried in other cities, and although not long in
operation anywhere, was said to give satisfaction. Upon the other

HISTORICAL AND GENERAL. :;!>:j

band, a neighboring city — Liverpool — had tried private owner-
ship and found it unsatisfactory.

Construction was promptly begun, and early in 1877 part
of the system was readjr for use for horse cars. A working agree-
ment was entered into with Messrs. Turton & Busby, who leased
the Salf ord tramways and who were planning to build or lease lines
in districts just outside of the city of Manchester. Under this
agreement Messrs. Turton and Busby were given the exclusive
right to use the tracks for 21 years from May 1, 1877, upon pay-
ment of 10 per cent, per annum of the cost of construction. The
lessors were required to run workmen's cars morning and evening
at fares of not more than ^d. per mile; to limit fares for adults
to 3d. for a seat inside the car and 2d. outside and for children
l-|d. inside and 2d. outside; to obey municipal by-laws relative
to speed, headway, stopping places, traffic on tracks, etc. ; to carry
no freight without special authority; to affix no advertisements
except with the consent of the municipality; to use only animal
power without consent ; and not to assign or sublet the lease with-
out the consent of the municipalty. The city retained the right
to prescribe the kind of cars used and to use the lines free for con-
veying refuse and road materials. Out of the rental of 10 per
cent., the city had to pay all of the fixed charges and to maintain
the track and paving in proper condition.

Other tramway lines, about 20 miles in length, were author-
ized by the Provisional Order of 1878. These were leased for
twenty-one years from 1879, subject to the same conditions as in
the other lease, for an annual payment of from £300 to £450 per
mile of single track, to the Manchester Carriage Company Limited,
which had succeeded to the rights and powers of Messrs. Turton
and Busby, and which later became the Manchester Carriage and
Tramways Company. From time to time, other lines were con-
structed and leased, usually for twenty-one years, so that the agree-
ments terminated not at any one date but at various dates from
1898 to 1902.

The first definite move in the city council towards municipal
operation was made February 20, 1895, when a special committee
was appointed by a vote of 35 to 10 to consider and report upon the
desirability of working by the council, the chairman being one of
those who opposed the motion. Eight months later a report was
made recommending that powers to operate be secured from Par-
liament, not so much with the idea that they would actually be
exercised but to place the city in a position where it could secure
good terms from the company. Without such powers, the city
would practically have been at the mercy of the company, the
committee contended. At a meeting of the owners and ratepay-
ers held November 15 to secure permission to promote a bill, the
recommendation was opposed and voted down.

The next two years were devoted to investigations into various
systems in Great Britain, Europe and the United States and to
negotiations with the private company. The general feeling at

394 NATIONAL CIVIC FEDERATION.

first, mirrored by the vote of the owners and ratepayers, was that
municipal operation was unwise provided satisfactory terms could
be secured from the company. The company suggested that the
matter be referred to the Board of Trade to determine the rental
for a new lease, and later that the leases be extended to 1906 so
that all would expire at the same date and so that the company
could make extensions and alterations. Both were rejected, the
former on the ground that the Board of Trade had nothing to do
with the case, and the latter that such a short term would not en-
able the company to make the needed improvements and that no
improvements were definitely promised, especially in the direction
of doing away with horse traction.

The principal objective point of the council committee was a
betterment of service through the introduction of some form of
mechanical traction and the building of new lines. Upon the whole
service had been satisfactory, but the council foresaw that it would
not continue to be so unless steps were taken to change the method
of traction, and the council thought the company was not making
sufficient progress in that direction. The fares had been high, but
public agitation had resulted in a considerable reduction which
had not only benefited the city but the company, so that at the
moment there was no complaint on the score. Many of the men
worked seventy hours per week, but no movement for city con-
trol had grown out of this fact as in Glasgow. Indeed, the prin-
cipal arguments for munieipalization were : ( 1 ) The probable im-
provement in service if the public were considered more than the
shareholders; (2) the financial gain by the transfer of the profits
from the shareholders to the city treasury (the company had been
very prosperous) ; (3) the wisdom of having all local monopolies
in the hands of the people, especially those which had such a close
connection with the streets as tramways ; and (4) the great social
advantages from improved transit facilities, e. g., the relief of
congestion of population by making the suburban areas accessible
to workingmen through electric traction. In opposition it was
urged: (1) That the responsibility and extent of the undertaking
were too great for the city council; (2) that the difficulty of uni-
fying a system running through many local areas was insuper-
able; (3) that the present service was good, the fares low and the
financial profit to the city quite satisfactory; and (4) that the ex-
perience of other cities did not justify the experiment.

The consideration of the question went on. In the mean-
time the council committee had repeated its recommendation that
power to operate be obtained from Parliament; Parliament also
had annulled its standing order against municipal operation;
other cities had secured power to operate ; the results of such oper-
ation, particularly at Glasgow, appeared to be increasingly favor-
able; and the difficulties of control without operation had seem-
ingly not diminished. Further, Salford had decided to munici-
palize, and suburban local authorities had expressed a willingness
to lease their lines to Manchester if it would operate them upon
reasonable terms.

HISTORICAL AND GENERAL. 395

Upon November 18, 1896, the council voted to promote a
bill to get power to operate and to use mechanical traction. Upon
February 3, 1897, the owners and ratepayers approved and the
bill was framed, introduced and passed. In the summer of the
following year, by a vote of 68 to 0 the council decided definitely
to adopt electricity and to operate the lines itself, and to make
agreements with certain outside local authorities for the operation
of their lines in connection with the Manchester system. A bill
was passed in 1899 conferring the necessary authority to do so.

Upon October 26, 1898, the council also voted unanimously
to require the company to sell the lines it owned to the city at the
exipration of the twenty-one years from the date of the granting
of authority as provided by the Tramways Act of 1870. Not all
of the lines had been constructed by the local authorities; certain
ones had been owned from the start by the company. As they had
been constructed at different times, the dates of purchase varied
considerably, ranging from 1898 to 1903 for certain outside lines.

Before passing to describe the events after 1898, it may be
well to summarize the financial results of the lease for the period
from 1876 to 1896, when the last quinquennial valuation of the
property was made. These figures throw some light upon the rea-
sons which led to municipalization. The payments under the
leases were :

Tramways Eevenue Account.
From 1876 to March 31, 1896.

EECEIPTS.

Eents (less income tax) £297,629

Interest 22,250

Income tax refunded 560

£320,439

PAYMENTS.

Interest £47,657

Bank commission 146

Sundries 947

Ordinary repairs 6,440

Depreciation : £55,190
Amount carried to Depreciation Account... £80,553
Depreciation incurred on taking over tram-
ways from local boards, being the dif-
ference between the city surveyor's val-
uation and the loan debt 7,606

Liquidation of debt:

Loans repaid out of revenue £29,278

Transfers to sinking fund account 53,323

Repaid by local boards 8,151

90,752

Transfer to city funds in aid of rates 83,860

Bank balances 2,478

£320,439

390 NATIONAL CIVIC FEDERATION.

Tramways Capital Account.
From 1876 to March 31, 1896.

RECEIPTS.

Loans received £159,969

Stock from Newton Heath 22

Balance owing to banks 11,107

£171,098

PAYMENTS.

Net payments for Tramways £124,497

Net payments in connection with Provisional

Order, 1896 101

Temporary loan to paving department 15,000

Loans temporarily repaid 31,500

£171,098

Assets and Liabilities.

March 31, 1906.

ASSETS.

Quinquennial valuation at end of year £71,820

Kent accrued 800

Interest accrued 120

Temporary loan to paving department 15,000

£87,740

LIABILITIES.

Loans on mortgage £15,290

Sundry creditors 2,984

Balance in bank 2,917

Surplus in sinking fund 66,549

£87,740

The total capital outlay from the beginning for all of the
lines owned by Manchester upon March 31, 18.96, was £156,666.
The lines as valued March 31, 1896, stood at £71,820, and the total
live assets were £87,740, against which there were real liabilities
of £21,191, leaving an apparent profit of £66,549. During the
twenty years of operation, all of the loans made by Manchester
had been repaid, the lines had been kept in repair, the interest on
outstanding loans had been paid, the capital outlay written down
from £156,666 to £71,820 and in addition to £83,860 turned over
to relieve taxation.

When the city decided to municipalize, the data for the lines
owned by the city and leased were:

Approximate Date of

Mileage. Rental. Expiration.

3 miles at 10 per cent, of cost £1,083 May 1, 1898

42J miles at £300-£400 per mile 17,255 April 27, 1898

4* miles at £300-£400 per mile 1,334 April 27, 1898

3 miles at £470 per mile 1,521 Nov. 1,1901

3i miles at £350 per mile 1,241 July 11, 1902

i mile at 10 per cent, of cost 8G July 11, 1902

56} miles (route mileage, 32i) £22,520

HISTORICAL AND GENERAL. 397

As stated above, the Parliamentary session of 1809 saw the
introduction and passage of an act authorizing Manchester to
work lines outside of its area and to make certain agreements.
In 1900 another bill was passed extending these powers and con-
firming certain agreements so that now the city has full power
in this direction. Other acts have been passed in late years, and
their principal provisions are given in the following pages.

Including those made subsequently, Manchester has entered
into agreements with sixteen local authorities. In two cases,
Withington and Moss Side, their areas have since been annexed
to Manchester. The agreements with Saale and Bucklow for the
taking over of the lines in their areas were not executed and traffic
not begun before the close of the year covered in this report. With
two others — Salford and Ashton — it has been agreed to exchange
running powers so that cars from Manchester may run to the
center of Salford and Ashton and that cars from each of these
towns may run to the center of Manchester. The net profits on
each line go to the authority owning or leasing the track upon
which they are made.

The other ten agreements — with Failsworth, Droylsden, Gor-
ton, Denton, Levenshulme, Heaton JSTorris, Audenshaw, Middleton,
Stockport and Stretford — were very similar. Briefly summarized,
each authority was to buy the lines within its area, to reconstruct
them for electric traction, to lease them to Manchester for twenty-
one years, to refuse to lease new lines to any other municipality or
company and to make no attempt to get powers to work lines itself
before end of lease or to assist any other municipality or company
to get running powers without the consent of Manchester. Man-
chester was to equip and maintain the lines on the overhead sys-
tem, except in Stretford, which might do so itself or require Man-
chester to do so, and in Middleton and Stockport, which were to
provide the equipment; to have power to remove all the equip-
ment it provided at the end of the lease, unless the local author-
ity purchased it by agreement or arbitration; to give an efficient
service equal to the present service, or in Stretford as good as
given in any other similar district; to charge no higher fares than
at present; to pay all local rates and taxes; and to pay a rental
sufficient to pay off the capital with interest in twenty-one years,
plus the cost of maintaining track and paving, the capital being
the amount expended for Parliamentary expenses, purchase of
lines from the company, reconstruction and all other expenses
connected therewith, including street widenings, except in Auden-
shaw where only twenty-one twenty-fifths had to be paid, and in
Stretford where the payment for equipment was to be 6£ per
cent, on cost. In all cases except Stockport, Middleton and Stret-
ford, Manchester was to furnish the current, but in these areas
the local authoity was to supply it at a price not to exceed that
paid to the lighting department of Manchester by the tramway un-
dertaking. Stockport also retained the right to annul this clause
and require Manchester to provide the current, and to run its own
cars upon payment of certain amounts.

398 NATIONAL CIVIC FEDERATION.

Upon March 31, 1905, the mileage owned by the city was. . . 105£
Leased but not owned .................................

Over which running powers were held ...................

Total

As stated above, the leases made by the city of Manchester
and the private company were not synchronous, but when it had
been decided to electrify the system, it was very desirable that the
change should be made as quickly as possible, and that reconstruc-
tion should begin before the expiration of the leases. After con-
siderable negotiation an agreement was made with the company
July 21, 1899, providing that all leases within the city of Man-
chester should terminate May 31, 1902; that the city should have
the right to reconstruct and operate any line before that date, the
payment for this privilege being the average net profit of the com-
pany per mile of track; that the company should have running
powers over all the lines until the agreed date ; that the city should
pay to the company any deficiency in the actual profit below the
agreed profit; and that the city might require the company to
work any lines after the agreed date, the remuneration therefor
being the difference between the actual profit and the agreed profit
per mile. As a matter of fact, the entire system was not worked
by the city until 1903, although part was begun in 1901.

When the city and company came to consider the price to be
paid for the undertaking, two points of difference developed; one
as to the amount to be paid, the other as to the property to be
taken. The city, having in mind the electrification of the sys-
tem, did not wish to take all of the property, for a considerable
portion would be of little value for electric traction. The com-
pany maintained that if the city purchased a portion of the system
it must purchase all and should not have the right of selecting
the property it wished or of refusing any portion. A suit was
finally brought to settle the question and the courts ultimately
decided that under the Act of 1870 a municipality must take all
of the property within its area and could exercise no choice. (See
Manchester Carriage and Tramways Company v. Manchester Cor-
poration, 87 L. T., 504, and 19 T. L. E., 439.) The question of
the amount to be paid was referred to an arbitrator, but his de-
cision was not satisfactory and an appeal was taken to the courts.
The decision given was satisfactory neither to the company nor
to the city, and finally an agreement was reached. According to
the accounts of the department £263,158 had been paid to tho
company up to March 31, 1905.

The actual value of the property transferred is unknown.
Most of the property was sold soon after the transfer at a big dis-
count, for although of considerable use to a horse car company, it
was of little value to any one else or to the city for its electrical sys-
tem. However, it was fully realized at the time that a large part of
the payment was to induce the company to permit reconstruction
before the end of the lease and the transfer of the lines to the city
before the termination of the grants.

HISTORICAL AND GENERAL. :;:;!»

Liverpool. An experimental tramway line was laid down
outside of Liverpool about 1860. Because of its faulty construc-
tion it became a nuisance, and so many complaints were constantly
made that the promoters were obliged to abandon the scheme and
remove the tracks. A few years later a limited liability company,
composed principally of Americans, it is said, was formed, and
application made to Parliament for power to construct lines. Two
attempts were made, but both were unsuccessful because of the
opposition of the city authorities. A third bill was drawn, ap-
proved by Liverpool in view of the changes made to meet its views
and enacted by Parliament in 1868 — the first special act passed
relating to tramways in England.

This act provided for private ownership and private opera-
tion, for the paving of the street between the tracks and rails and
18 inches beyond by the company, for purchase by the city at its
option in 11 years, and for the removal of the tracks in 5 years
if they proved to be detrimental to public interests. Similar pow-
ers were given to local authorities outside of Liverpool, and the
track was kept in such poor condition and became so obstructive
to street traffic that one authority did compel the company to re-
move the tracks. In Liverpool the conditions were even worse
and became so bad that in 1872, Parliament gave the city power
to acquire in two and one-half years upon three months notice.
This did not produce the desired result, and in 1874 Liverpool
tried to do what a suburban authority had done and ordered the
tracks removed. But the company brought suit and threatened
to fight every step in the courts. It became evident that if this
were done, conditions would continue as they were for a long time
and little would be gained even if the city were successful. Then
the company offered to reconstruct its lines, but financial difficul-
ties followed and the company was reorganized. An agreement
whereby the city would reconstruct the lines and maintain them
at the expense of the company was offered as a solution. But this
plan was equally unsatisfactory.

The period of private ownership and operation ended in
1880. The fares were said to be high and the service poor. There
were only seven- miles of track, and the population of the city
was over 400,000. The city paid the company for the system
about £30,000, or £4,000 per mile of single track. An agreement
was made by which the city was to own and maintain the lines
and lease them to the company at a rental of seven and one-half
per cent, upon the purchase price of the lines taken over — £30,000.
In 1884, a new lease was made for twenty-one years, under which
the city was to build, own and maintain and the company to pay
a rental of £5,855 for the existing lines and ten per cent, of the
cost of new lines, including the expense of paving. Still another
lease was made in 1895 and the date of reversion postponed to
June 1, 1915.

It was at this time that the agitation for municipal operation
came prominently to the fore. The occasion was the apparently

400 NATIONAL CIVIC FEDERATION.

innocent proposition to extend the city boundaries. Very unex-
pectedly the tramway company opposed the extension because it
had lines in the outside areas and did not wish to have them
brought within the city limits. In order to withdraw its oppo-
sition, the city had to extend its lease ten years; or rather, the
Committee of the House of Commons which was considering the
measure for the extension of the boundaries said that the com-
pany should have a ten year extension or the bill would not go
through. This action aroused the city to a realization of how strong
a hold the company had upon it and how the company might pre-
vent the normal development of the city unless its demands were
satisfied.

Another instance in 1896 made some stir. The company be-
gan an action against the city for £80,000 damages for injuries to
cars and horses because the lines were in bad condition it claimed.
The city denied any responsibilit}' and the case was taken before
an arbitrator. In the meantime, the talk about municipal oper-
ation, increased. Other cities were taking steps in that direction.
Glasgow had recently made the change, and the results were ap-
parently quite favorable. The Liverpool service was considered
inferior, and the company had been urged by the city to adopt
some kind of mechanical traction. The company had replied that
it was making experiments but had not reached satisfactory con-
clusions. I can find no record of any proposal made by the com-
pany to adopt electricity if the lease were extended, and certain
city officials who were in the council at the time assert that they
would have given an extension if it had been asked for and ac-
companied by a definite proposition for electrification. Appar-
ently the company was fairly prosperous but not enterprising. It
treated its employees very harshly, and the working day was from
twelve to fifteen hours. The company would do nothing to ap-
pease the public demand and finally the policy of municipaliza-
tion was adopted by a large majority in the council. The vote
on the measure November 18, 1896, was 78 to 7 and upon January
13, 1897, 71 to 16.

Financially, the system of municipal ownership and private
operation was successful. In the early years of the lease, the pay-
ments Avere hardly sufficient to meet all charges, but towards the
end there was annually a considerable sum for the reduction of
taxation after paying maintenance charges, depreciation, interest
and sinking fund payments.

When purchase was mooted in 1896, the lease had nine-
teen years to run. If the undertaking were to be acquired, there-
fore, the terms must be acceptable to the company. As finally
agreed and embodied in the Act of 1897, the city paid £567,375
for the assets of the company which consisted of cars, horses, barns,
etc., and the rights of working leased lines outside of the city
boundaries, plus £46,803 for capital spent by company but not in-
cluded in share capital. The city also agreed to pay five directors
the capitalized value of an annuity equal to the fees they would

HISTORICAL AND GENERAL. 401

have received up to 1915 or death if before, to compensate the
auditors and solicitors similarly and to take over all the officers
and employees at the salaries and wages they had been receiving.
To the solicitors, auditors and directors, the city did actually pay
£17,362.

The question naturally arises: How much property did the
city get for its £630,000? As the property was taken over with-
out appraisal or inventory, a definite answer cannot be given. The
capital of the company on December 31, 1896, was, according to
the report of the company :

Share capital £445,000

Mortgages 7,500

£452,500

There had been spent in addition on capital account .... 113,000

Total £465,500

According to the company's statement to the shareholders,
the capital investment was as follows :

Lands, buildings £191,282

Tramway lines 17,421

Tramway horses 86,080

Tramway cars 53,688

Other plant, etc 16,186

Total £364,657

If the property were worth this full amount, Liverpool had
to pay over £250,000 for the franchise. It is currently stated, and
so far as I could learn, without contradiction that the property
was not in good condition, that it had run down. The market
value of the shares went up very considerably in anticipation of
purchase. It seems reasonable to estimate therefore that about
50 per cent, of the purchase price was not represented by tangible
assets.

In 1902, the city acquired the system of the Garston and Dis-
trict Tramway Company Limited, which was operating two and
one-half miles in an outside area, paying therefor £20,257. This
area is now within the municipal boundaries, and the city owns
no tracks outside of its own area except about three-quarters of a
mile in Litherland. The lines connect with the South Lancashire
Tramways Company and through service is run to St. Helens and
Preston from Pier Head — the water front of Liverpool. It op-
erates the lines owned by Bootle under an agreement made in 1902,
the principal provisions of which are as follows :

The reconstruction of the old horse car lines to be done by
Bootle which is also to provide all the overhead and underground
electrical equipment, to furnish the current for its OAvn area and
that of Litherland, and to maintain and keep in repair all the lines

1l imagine the amount here given as £13,000 is an error; £31,000
would more nearly correspond with other figures secured. But the
printed copy before me says £13,000.

Vol. III.— 27.

401* NATIONAL CIVIC FEDERATION.

and equipment it owns. Liverpool has the exclusive right to use
the lines for 25 years from April 1, 1900, upon payment of £5,798
for each of the first twelve years and £4,776 for each of the re-
maining thirteen years, payable quarterly. About eight miles are
now leased and in 1905 a rental of £5,858 was paid. It must also
pay all taxes and l|d. per unit for the first 375,000 units used
per annum and Id. for each unit above this amount, and not take
less than 600,000 units per annum. In 1905, 1,047,918 units
were supplied by Bootle. The fares charged may not exceed the
statutory limits for Liverpool (see D 15), and workmen's cars must
be run. Liverpool must maintain the roiling stock in good condi-
tion and not sublet any part of the lines without the consent of
Bootle.

This agreement may be extended by mutual consent or fail-
ing agreement upon such terms and for such a period as the Board
of Trade may decree. If new lines are built by Bootle with the
consent of Liverpool, the rental shall be 9 per cent, per annum on
the cost of such additional lines and 1^ per cent, more for electrical
equipment.

London C. C. Street railways are said to have been first in-
troduced into London in 1857 by an American — Mr. George
Francis Train. His application to Parliament in the following year
for statutory power to lay tracks was refused, chiefly because of the
opposition of Sir Benjamin Hall, then chief commissioner of
works. However, in 1861 permission having been obtained from
the local authorities, short lines were laid by Mr. Train in Bays-
water Eoad, west from the Marble Arch, in Westminster upon
Victoria Street, and in Kennington Eoad from Westminster
Bridge to Kennington Park. These lines provoked a storm of pro-
tests, for the rails projected considerably above the surface of the
street and not only inconvenienced traffic but caused many acci-
dents. They were even condemned as dangerous to life as well as
to property, arid popular disapproval was so great that in a short
time the tracks were removed, but not until a feeling of opposi-
tion to all street railways had become quite general. Thus, when
a new tramway line was proposed, it was thought to be an attempt
to resurrect Train's schemes and many naturally objected stren-
uously.

The first acts of Parliament authorizing tramways in London
were passed in 1869 and provided for three lines in different parts
of the Metropolis, operated by three different companies. The
bills as originally drafted provided for the construction of 4 '3
miles of line, but the Metropolitan Board of Works suggested that,
as these were the first lines to be legally authorized and something
of an experiment, only short lines be permitted and that clauses
be inserted to protect public welfare. About 15 route miles were
finally sanctioned.

The considerable number of tramway schemes which had been
brought forward in the late sixties raised the question of an enact-
ment of a general tramway law, but as Parliament was not ready

HISTORICAL AND (JEXKKAL. -in-

to act in 1869, and as it was not considered wise to hold up the
bills until a general act should be adopted, they were enacted with
the provision inserted that nothing therein should be construed
to exempt the companies from the provisions of any general act
afterwards passed by Parliament. The acts of 1809 also provided
that if the street authority should apply to Parliament any time
after twenty-one years from the passing of the acts for power to
purchase the undertaking, upon payment of the full value of the
tramways, of the works and materials connected therewith, of the
lands, buildings and all other property, and of the goodwill of the
business and its prospective value, to be determined by arbitration
in case of disagreement, the company should not oppose municipal-
ization.

The Parliamentary session of 1870 saw the introduction of
a general tramways bill and several other bills for the 'authoriza-
tion of additional lines in London. All of these bills were being
pressed at the same time, but it was very uncertain just what pro-
visions would be incorporated in the general act and just what
provisions would therefore become applicable to the London com-
panies. The Metropolitan Board of Works decided to take no
chances and to require, as a consideration for the withholding of
its opposition to the company bills, the acceptance of clauses giv-
ing it the right to acquire the tramway undertakings or parts
thereof within its area at the end of 28 years or any subsequent
period of 7 years, upon payment of "the then value (exclusive of
any allowance for past or future profits of the undertaking, or
any compensation for compulsory sale or other consideration
whatever)," such value to be determined by arbitration in case of
disagreement. These terms — an exchange of an extension of ten-
ure for 7 years for the loss of compensation for goodwill and pros-
pective profits — were accepted, and thus the lines authorized in
1869 became purchasable in 1898.

The other lines authorized in 1870 were made purchasable in
1891, or every 7 years thereafter, upon the same terms as given
above — those finally adopted in the Tramways Act of 1870, which
also empowered local authorities to build lines but not to operate
them. Since 1870 upwards of 100 acts and provisional orders
have been passed. Almost without exception, the clauses regard-
ing purchase in the Act of 1870 have been put in force, but in
several instances although not always, the term of the grant has
been abbreviated to make it coincide with that of other parts of
the same system.

The question of municipal ownership and operation came up
as far back as 1870, but at the time it was not considered within the
proper sphere of municipal activity for a local authority to operate
tramways; but to own lines which were to be leased to a private
company to operate was not considered objectionable if local condi-
tions made it advisable. It is true that at that time no public
body did own lines, but the insertion of the provision in the gen-
eral Act of 1870 which permitted municipalities to construct and

404 NATIONAL CIVIC FEDERATION.

own reflects the general sentiment, and several towns soon did
build and lease. The Metropolitan Board of Works considered
the question for some time and finally decided to leave the field
for the present to private companies. The principal reason why it
did not build was that the members of the Board were selected by
the vestries and local boards, who had control of the streets and
who would have been aroused if either directly or indirectly their
control had been diminished, and yet this would necessarily follow
if the Board constructed lines. Then, too, if public opinion should
favor municipalization even at the expense of the local authorities,
the lines could be taken over at the end of 21 years. In the mean-
time let other towns experiment and show whether municipal
control would succeed or fail.

The following extract from The Times of January 14, 1871,
shows the attitude adopted. "At the usual meeting of the Metropoli-
tan Board of Works, held on January 13th, 1871, a report was pre-
sented from the Parliamentary Committee on the tramway
schemes proposed in the metropolis, which stated that there were
two alternatives before the Board. They may either undertake
themselves the construction of tramways throughout the metropo-
lis, leasing the lines so constructed to other companies for the
purpose of being worked by the latter, or they may authorize the
laying down of tramways by other bodies in the first instance. The
Committee had considered both these courses. The advantages
offered by the first alternative, viz., the construction of tramways
by the Board appeared to be twofold: (1) The securing from an
expenditure of capital such a return as should suffice, not only to
pay the interest on the amount expended, but to afford a surplus
by means of which the Board might be able to effect improvements
in the metropolis, or to relieve the ratepayers of a portion of their
present burdens; and (2) the laying down of tramways upon a
more general and comprehensive plan than would be adopted by
a number of companies competing one against another. In the
first place there would probably be a very strong objection on the
part of many to the Board expending the public money on a work
of this kind, partaking, as it would to some extent, of the char-
acter of a commercial enterprise. It should be borne in mind that
the Act contains provisions empowering the Board, at the end of
21 years, and under certain circumstances earlier, to purchase any
tramway, paying simply the value of the materials and works
(exclusive of any allowance for past or future profits of the under-
taking, or any compensation for compulsory sale, or other consid-
eration whatever). It will thus be in the power of the Board, at
the end of the period specified, or of any subsequent seven years,
to acquire possession of any tramway on the most favorable terms,
and they will then have obtained sufficient experience to enable
them to decide as to the expediency of purchasing."

Until the abolition of the Board in 1889, this policy was con-
tinued. Few conditions were imposed upon companies by the
Board, except that the works should be carried out to its satis-
faction, and no attempt was made to acquire or work the lines.

HISTORICAL AND GENERAL. 405

The London County Council, which succeeded to the powers
of the Metropolitan Board of Works in 1889, was more favorable
to municipal operation. It was elected by the voters directly ai/d
from the beginning contained a considerable number of men who
favored the extension of governmental activity. The first definite
action taken was upon March 24, 1891, when the Highways Com-
mittee recommended that a special meeting of the Council be held
to consider the advisability of serving notice upon the company
regarding a portion of the lines becoming purchasable in 1891,
that the Council would exercise its rights under the special Act of
1S"0. According to this Act, at least two-thirds of the Council
must be present when the vote is taken, and at two meetings, June
9 and July 14, when the matter was considered, many of those
opposed to purchase left the chamber before the vote was taken,
thus reducing the number voting below the legal requirement, al-
though in each case the vote was overwhelmingly in favor of mun-
icipal purchase. Upon October 27, 1891, the requisite number
was secured, and by a vote of 90 to 2 (a bare two-thirds) purchase
was decided upon, although not until after an amendment had
been passed stating that the Council had no intention of working
the lines or of seeking power to do so. This amendment was not
taken seriously by many, however, and was commonly accepted as
an excuse to enable those who hesitated to vote for purchase. It
was recognized that it could have no binding eft'ecr. whatever.

In due time the approval of the Board of Trade was secured
and notice sent to the company, which submitted its claims for
compensation. The Council considered them exorbitant and an
arbitrator was named by the Board of Trade. The point at issue
was the proper basis for appraisal. The Council held that the cost
of duplication less depreciation from whatever cause should be the
standard and that no allowance whatever should be made for prof-
its, past or prospective, goodwill or as a going concern. The com-
pany argued that rental value should be the basis, capitalized at
20 years purchase, with the value of the freeholds and leaseholds
added. The arbitrator first decided to receive the evidence of-
fered by the company to show what the value of the line would be
upon this basis, and later decided that he could not legally con-
sider it. The company's claim amounting to £604,090 was set
aside and a value of £64,540 fixed, upon the basis of what it would
cost the Council to replace the portion of the undertaking to be
bought less depreciation. The total amount paid, certain items
not being the subject of dispute, was £101,798.

Naturally, this decision was not satisfactory to the company,
and an appeal was taken to the Queen's Bench Division where the
arbitrator's position was declared to be wrong. Then the Council
appealed and the Court of Appeal reversed the Queen's Bench Di-
vision and upheld the arbitrator. The case was then taken to the
House of Lords, with the same result. (See London Street Tram-
ways Company v. London County Council, 1894, A. C., 489; 63
L. J., Q. B. 769.) A decision was handed down at the same time

406 NATIONAL CIVIC FEDERATION.

in an Edinburgh case on the same point, so that it is now well
settled that the basis of appraisal, under the general Act of 1870
as well as the special one at issue in the London case, is the cost
of duplication less depreciation.

Although a final decision of the case was not reached until
1894, the Council continued the policy of acquisition as fast as the
lines became purchasable. It also decided to give its consent to
the granting of new powers to companies only upon certain con-
ditions, which generally were uniformity in the gauge of tram-
ways, use of improved forms of rails as required by the Board
of Trade, proper maintenance of rails and road and recovery of
penalties in default of such maintenance, suspension of traffic
during works of drainage, alteration by the company of the posi-
tion of tramways if required for the purposes of widening streets,
alteration by the company of paving materials in the event of the
road authority requiring such alterations, alteration of the posi-
tion of tramways; to allow the erection of rest shelters or other
conveniences, authority, for the Board of Trade to grant a license
for the use of mechanical power other than steam for a period not
exceeding one year, and the renewal of such license with the con-
sent to the Council and of the road authority, and finally a proviso
that all additions to a line should become purchasable within 21
3*ears after the passing of the original act authorizing that portion
of the undertaking and not after the date of any subsequent act
authorizing additions to the tramway.

In certain instances, the Council has also endeavored to se-
cure the insertion of clauses providing that every person employed
shall not be required to work for a longer time than 10 hours a
day, that the company shall not charge increased fares on Sundays
or holidays, that the line shall be double throughout the entire
length, and that before any portion of the tramway shall be laid an}r
projected street widening in any of the roads affected shall be
carried out to the satisfaction of the Council as well as of the road
authority.

Generally speaking, the private ownership of new line- lias
been permitted by the Council only when such lines were part and
parcel of an existing system — extensions — and then it has nearly
always insisted that the term of the grant of the extension should
be terminable at the same time as the main line.

The first line acquired by the London County Council was a
short line and a part of a larger system. It was clearly impractic-
able for the Council to operate it, and it was therefore leased to the
private company for a short period. Another short bit wa« ac-
quired while the case was in the court. The companies found this
plan of municipal ization by bits quite unsatisfactory and two of
them proposed to the Council that all of their lines should be pur-
chased by agreement and leased to them for operation.

While these negotiations were under way, a suit was started
to test the Council'^ power to p\ircha?e any part of a system be-
fore the expiration of -,'1 yprn-s from the date of the latest grant.

HISTORICAL AND GENERAL. 407

The High Court decided that the Council was entitled to pur-
chase any part of a system, when its term expired, and that tlio
period for each part began to run from the date of the act author-
izing its construction. An appeal was taken, but the decision was
upheld. (See North Metropolitan Tramways Company vs. Lon-
don County Council 59 J. P., 697, and 60 J. P., 23.)

This decision hastened an agreement, and the entire lines of
the London Street Tramways Company and the North Metropol-
itan Tramways Company — about 48 route miles — were transferred
to the London County Council, the total cost being £806,087 ac-
cording to the last report of the Council. The agreement author-
izing the sale provided also for the leasing of the lines to the
North Metropolitan Company for 14 years from Midsummer,
1896. Under this lease, the company was to pay a fixed rental of
i'45,000 per year, 5 per cent, per annum on the purchase price of
the freehold, 6 per cent, per annum on the purchase price of the
leasehold, depots and other premises, and 12 1 per cent, per annum
of the excess of the gross receipts for the year over the gross re-
ceipts for 1895, 8 per cent, on the cost of construction of extensions
of lines, 5 per cent, on additional buildings and 6 per cent, on
freehold or leasehold property. There were also provisions regard-
ing the hours of labor and wages of employees, workmen's cars,
character of service, fares, the adoption of mechanical traction
and the maintenance of the track.

Although this lease was not to exipre until midsummer, 1910,
the Council decided some time ago that unification of the lines
and conversion to electric traction ought not to be delayed until
then, and opened negotiations with the company in 1901 for the
adoption of electric power. Various difficulties arose, and after
repeated conferences between the company, the local authorities
and the Council, it became evident that the arrangements for re-
construction would be made much easier if the Council should
buy up the lease and begin working at once. An agreement was
finally brought about, the transfer made upon April 1, 1906, and
reconstruction begun.

The first line becoming purchasable south of the Thames was
part of the London Tramway Company's r-ystem, 2% route miles,
in 1895. In 1898 the grant for the bulk of the system fell in,
and an agreement was made for the transfer of all of the lines
(about 24 route miles) and the property of the company for
£876,595. Four other undertakings have also been acquired
at various times in 1902, 1904 and 1905, for which the following
amounts have been paid, according to the last report of the depart-
ment :

South London Tramways Co. (13} route miles) £232,14

South Eastern Metropolitan Co. (2£ route miles) 50.167

London, Deptford & Greenwich Co. (6f route miles) . . 96,327

Woolwich & South Eastern Metropolitan Co 49,826

Adding the total amount actually paid to the London

Tramways Co. (24§ route miles) 882.043

Total.. . £1,310,507

408 NATIONAL CIVIC FEDERATION.

The total capital expenditure for the purchase of undertak-
ings, having approximately 100 route miles, and incidental charges
was £2,116,594 up to March 31, 1906.

As already stated, the Council leased the tramways north of
the Thames to a private company and municipal operation dates
only from April 1, 1906. No investigation has therefore heen
made of this system. The lines south of the Thames have been
operated as fast as acquired, beginning January 1, 1899. It was
not clear at first that the Council had the right to operate.
The general Tramways Act of 1870 expressly stated that no right
to operate was conferred thereby, but some dependence was placed
at first in the theory that when the Council took over an undertak-
ing or even part thereof, under an act which did not expressly
withhold the right to work as the 1870 Act did, the Council ac-
quired not only the mere physical property but the right to operate
it as well. This theory was not generally considered as safe and an
act of Parliament was obtained in 1896 giving the Council the
right to work the lines as well as to own and to lease.

Still the Council had no power to build new lines or to change
the traction from animal to electric. The first grant of authority
to electrify was made in 1900 following closely upon the decision
to operate and the actual working begun in 1899. Power to build
specific lines has been given ever}'' year from 1900 to date, but all
of the requests of the Council have not been granted by any means.
In the three years 1900-2 alone, the Council promoted schemes for
95 miles of lines, but only 35 were finally authorized by Parliament,
the remaining 60 miles, being vetoed by the local authorities,
through whose areas the lines were to run, or by Parliament.

Another serious interference with the proper development of
the s}rstem has been the refusal to pass a bill to permit widening
of the bridges in the central portion of the Metropolis and the lay-
ing of tracks thereon. Passengers have been landed at the south-
ern termini of these bridges and must take a bus to reach the
other side of the Thames where the business and office district is
located. In the early seventies, schemes were drawn up for lines
across the bridges, but from then until the last session, Parliament
refused to give such powers to companies or public bodies, except
over some of the less important bridges. In 1906 a bill was fin-
ally passed authorizing the County Council to lay tracks over cer-
tain bridges and to widen the present structures to accommodate
the traffic.

The Council also has labored under the disadvantage of hav-
ing no power to run omnibuses across. When the Council pur-
chased the lines of the London Tramways Company, this com-
pany was operating omnibuses over three bridges. The tramways
department continued the service and extended it to afford greater
convenience. This seems to have aroused the hostility of the om-
nibus proprietors who brought suit to test the Council's right to
maintain the service. The lower courts decided that the Council
had no legal power to run any omnibuses. The case was then ap-

HISTORICAL AND GEXI'.IJAL. 40»

pealed, finally reaching the House of Lords, and the decision was
affirmed. The Council has since tried to obtain power from Par-
liament, but unsuccessfully up to the end of the year dealt with in
this report.

The reasons why the Metropolitan Board did not build tram-
way lines during its existence have already been given. It only
remains to state the factors which led to municipal ownership and
operation after the County Council came into being. Several have
already been alluded to. In the first place, the Council is elected
by the voters directly and is not therefore responsible to the local
road authorities as was the Metropolitan Board. It is true that
councillors are selected by districts and not at large, but the local
feeling is by no means so strong as in the local boards which rep-
resent only local sentiment. The creation of this central body —
the County Council — thus made possible for the first time an ex-
pression of the popular will on large questions which concerned
the whole city. Doubtless municipal ownership would have come
earlier if the Council had been born sooner, but the Metropolitan
Board could not move in that direction without encroaching upon
the activities of the bodies to which it was responsible.

The explanation of the popular sentiment in favor of munici-
pal purchase is simple. By 1890, the feeling that the public au-
thorities should have complete and full control over the surface
of the streets had grown very strong. The highways belonged to
the people; their representatives were responsible for the mainte-
nance of the surface in good condition; how could this be done
effectively if private persons were given control over a portion;
and why should the public give a private company rights in the
public highways which it could not annul whenever it wished?
It seemed but natural, they said, that the local authorities them-
selves should build the tracks, maintain them and thus retain full
control over the public highways. This a priori line of argument
had practical confirmation in the actual operations of certain of
the companies. There were many complaints of the bad state of
the tracks and the failure to keep up the paving between the rails
and 18 inches beyond. Even as far back as 1878 and 1879, com-
mittees of the House of Lords and House of Commons reported
that it was "desirable, that, wherever, it is possible, tramways
should be constructed and maintained, but not worked by the local
authority."

The experience of many other towns was cited. It was com-
monly believed that municipal ownership not onty did away with
the many disputes which arose between the local authorities and
the companies when the tracks were in private hands, but as a
financial investment was quite profitable and enabled the public
to control to some extent the actions of the tramway companies.
Whatever reluctance there may have been at the start to enter an
untried field was no longer justifiable, it was said, for many
other towns had tried public ownership and were satisfied with
the results.

410 NATIONAL CIVIC FEDERATION.

Further, the termination of the grants made it possible to se-
cure the existing lines from time to time at reasonable figures.
The companies had made a profit, why should not the County
Council? There were no inflated values to be paid, no prospective
profits to be allowed 'and no goodwill to be capitalized.

Another factor was the disorganization and the lack of uni-
fication in the tramway systems. From the very beginning there
had been a considerable number of lines, operated by separate
companies, each intent on its own plans. By 1890 some amalga-
mation had taken place and a few of the lines had been joined,
but there were still thirteen companies with tracks in the County
of London. Yet the total route mileage operated by these com-
panies within and without the county was only 130 miles. It was
thought that if the Council took hold, purchased existing lines and
built others, a comprehensive scheme could ultimately be worked
out.

When municipal ownership was voted in 1891, it is probably
true that a considerable proportion of the people and of the mem-
bers of the Council were not believers in public operation. Xo
poll had been taken but possibly a majority could have been found
to favor operation by the Council even then ; but it was only a the-
oretical question and not possible practically, for the Council had
no power to operate, Parliament had a standing order against the
working of tramways by municipalities and the lines that could
be acquired were only, short bits of much larger systems. By 1898,
when the Council acquired a large portion of the mileage .south
of the Thames, the standing order against municipal operation had
been removed, the Council had gotten power to work, and lines
out o~f which a s}rstem might be built had been acquired. The way
was therefore open if the Council should decide to operate, which
it did.

The principal reason in favor of municipal operation seems
to have been the lack of adequate tramwaj' facilities. The service
taken by itself was not complained of particuarly. As horse-car
lines they were about the same as found elsewhere. There was
some talk about the infrequency of cars and their inferior charac-
ter, but the principal complaints were that the various lines were
run wholly independently, that they were planned without any
relation to each other, and that electric traction ought to be intro-
duced. Yet the people thought there was little likelihood that the
private companies would remedy these defects in the immediate
future. Amalgamation or inter-company agreements promised
little; the companies were too independent. Further, they nat-
urally would not build lines where they would not benefit finan-
cially, although the lines might add greatly to the adequacy of
transportation facilities. With the lines in the hands of one body,
it was evident that the service could be unified, that connecting
links could be built between the various lines, that cars from one
line could be run over others, giving a thorough service, and that
lines could be built even though not directly remunerative. The

HISTORICAL AND GENERAL. 411

economies of one management over several would also be consid-
erable.

In this connection some weight was attached to the belief
that if the lines were in the hands of a public body, the local road
authorities would be less likely to veto the schemes it proposed
than if they came from companies, for it was generally recognized
that this local veto had hindered considerably the development of
a comprehensive scheme in London and unless it were less fre-
quently used under council management, the Council would not
be able to carry out its plans for amalgamation and unification,
although of course as long as it did not build new lines, it was
free to do what it chose with those already in existence. How
the local veto has hindered the plans of the County Council we
have already seen.

The labor question was also very prominent. The Council
had tried to help the employees by inserting conditions in the
grants, and improvement had resulted; but there were many mat-
ters relating to the treatment of the men which were not foreseen
and of course could not be remedied by the Council after the grant
had once been made. In other words, the plan of attempting to
protect the interests of the employees through conditions in grants
was not effective and chiefly because it was not sufficiently flexible
and responsive to changing conditions. Apparently the employees
had just grounds of complaint, at least the public generally con-
sidered them just. The hours were long, the pay small and many
minor details annoying.

Then there was also the financial gain which could be used
to reduce taxation, to lower fares or to improve the service. It
was not the all absorbing topic, but there were many improvements
to be made and the expected profits would make it possible to
carry them out much sooner than if the tramways were owned by
companies and the profits therefrom went into individual hands.

In support of the belief that beneficial results would attend
working by the Council, the experience of other cities, particularly
Glasgow, was cited. Other cities were operating trams, why should
not the County Council? Other cities were said to be getting sat-
isfactory results, why not London?

London United. The London United Tramways (1901)
Limited is a comparatively new company, having been formed to
acquire in 1901 the lines of another company. The origin of the
system really dates back to 1873, when the construction of two
lines in the West End was authorized by Parliament with the ap-
proval of the Metropolitan Board. Again in 1876, another line
was authorized, connecting with one of the lines of 1873. These
two systems had a route mileage of about 7 and 24- miles respec-
tively. In 1881 the West Metropolitan Tramways Company was
formed and an act passed the following year permitting it to take
over these two companies and also granting powers for the con-
struction of new lines, approximating 4 miles in length. Other
lines have since been authorized from time to time within and
without the Countv of London.

412 NATIONAL CIVIC FEDERATION.

The next important step was the formation of the London
United company in 1894 to acquire and reorganize the West Met-
ropolitan company whose lines had fallen into a condition of de-
crepitude and were of comparatively little public utility (evidence
of Sir J. Clifton Bobinson, Managing Director of the present
company before the London Traffic Commission). This company
in turn was purchased in 1901 by the London United Tramways
(1901) Limited — the present company. The payment was
£1,650,000, £600,000 being in ordinary shares, £360,000 in pref-
erence shares, £450,000 in 4 per cent, debenture stock and £240,000
in cash. The property acquired was not inventoried, but the pros-
pectus issued for the sale of stock in the new company stated that
the purchase price of £1,650,000 was for the expenditure "on
capital account of the vendor company in and about establishing
and acquiring its undertakings and assets," £1,050,000, and good-
will of undertaking, £600,000.

The London United company, like the County Council, has
not been able to secure powers to construct all of the lines it has
proposed. In the seven }rears from 1898 to 1904, schemes for over
59 route miles were vetoed by the local authorities. In the same
period, powers for upwards of 53 miles were granted.

None of the lines have been taken over by the local authori-
ties. The London County Council is not greatly concerned, for
by far the greater part of the mileage lies in the County of Mid-
dlesex, the authorities of which have not gone in for municipal op-
eration to the same extent as those in London. There has been some
talk of purchase when the rights may be acquired, but nothing
definite has been settled. The earliest date when any section may
be purchased is 1909, certain of the earliest grants having been
renewed, and certain others given for shorter periods than 21
years (see inquiry D 8).

Dublin. In May, 1867, a company was given powers to con-
struct tramways in Dublin by an Order in Council under the Irish
Tramways Act of 1860. No tracks were laid, however, and it was
not until four years later that any company actually began to
build lines. This company, the Dublin United Tramways Com-
pany, secured authority under an act of Parliament passed in
1871 which empowered them to build 17^ miles. The same year
the rights of the old company which had never been used were
acquired, and operation was begun in 1872.

The success of this company led to the formation of three
other companies: The North Dublin Street Tramways Company
in 1875-6 and the Central Tramways Company and the Dub-
lin Southern District Tramways Company in 1878. The latter was
outside the area of the city and at first was not a competitor of
the others. The competition between the three companies was very
keen and finally ended in consolidation upon January 1, 1881.
the Dublin United Tramways Company buying up the other two.
The company outside the city soon began to lay plans to get into
town, which were opposed by the consolidated company, and a

HISTORICAL AND GENERAL. 413

fierce fight went on. Parliament refused to sanction the schemes
of the Southern District Company, and in 1896 it was purchased
by the United. In 1905 by special act of Parliament, the two
companies were consolidated.

These changes were all authorized by acts of Parliament and
provided for the issuance of new stock upon the basis of £15 for
every £10 sare of the old United company's stock, £ 9 for every £10
share of the Northern Dublin company's and £12 for every £10
share of the Central company's stock; this in 1881. When the
Dublin Southern District Company was purchased in 1896, £243,-
000 in cash was paid, the road just having been electrically
equipped. The result of these various amalgamations was to
increase the amount of capital liabilities by £159,229 without any
corresponding increase in the tangible assets.

Norwich. The Norwich Electric Tramways Company has
the newest system included in this investigation. It was incorpo-
rated by the Parliamentary Act of 1897 and has powers quite
unique, as the following pages will show. Large street improve-
ments had to be carried out to allow tramways to run through the
narrow winding lanes of this old city, and the expense was divided
between the city and the company, although the work was done
by the company.

There has been some talk from time to time about municipal
operation, particularly when the grant of powers was before the
city for approval. General opinion at that time favored company
management in view of the terms of the grant. Under the pro-
visions of the Act, the city cannot purchase except by agreement
before 1918.

A 9. Has there ever been municipal ownership and private oper-
ation of the system ?

Glasgow. Yes, from 1873 to 1894. See inquiries A 5-S
above.

Manchester. Yes, from 1877 to 1903. See A 5-8 above.
Liverpool. Yes, from 1880 to 1897. See A 5-8 above.

London C. C. Yes, of the Northern system from 1891 to
1906. The Southern lines were only operated a short time p.fter
municipal ownership had been decided upon, or until the legal
questions could be decided and the transfer made. See A 5-8
above.

Companies. No.

A 10. Is the general sentiment favorable or unfavorable to the
present system of ownership and operation ?

Municipalities. Generally favorable in each case. In Man-
chester, there are many who question the wisdom of conducting
an express service in connection with the tramways, but the gen-
eral sentiment is quite favorable.

414 NATIONAL CIVIC FEDERATION.

London United. There is considerable criticism of the com-
pany's methods and attitude towards the public.

Dublin, Norwich. Generally favorable.
A 11. What is the attitude of the press?

Municipalities. Generally favorable, although in every town
there is a portion of the press which opposes municipal trading
and which watches the undertaking closely. In London there are
newspapers that are more hostile to and that more frequently
criticize and oppose the municipal operation of the tramway sys-
tem than in the other towns. Generally speaking, the "Conserva-
tive" papers opposed and the "Liberal" papers support it.

Companies. Generally favorable, but the London United
Company is criticised somewhat by the purely local papers.

A 12. State current objections to present system.

Municipalities. N~one of importance, except those related to
the question of municipal trading generally. There are persons
in every town who believe that the local authorities should not
operate tramways and frequently give as a reason that the under-
taking is not providing a sufficient amount for depreciation, etc.
There are others who want large sums set aside to relieve rates,
and others who do not want taxation lowered at all but want fares
reduced.

London United. The criticism most frequently encountered
is that the company is arrogant and disregards the wishes of the
local authorities and of the travelling public. There is also con-
siderable complaint about the infrequency with which cars are run.

Dublin. None of any importance. There was a dispute be-
tween the company and the city over the sanding of the track.
The case was taken into court and settled, the position of the city
being upheld. There have also been complaints about the paving
done by the company; but the city itself is not a model in this
regard.

Norwich. The only ones found were that sufficient cars were
not run when there were unusual crowds, that they were not well
distributed at times and that covered-top cars should be supplied.

A 13. Do the citizens take an active interest in the management
of the system?

Municipalities. Yes, especially in all matters which affect
service and rates of fare. All important moves are observed and
discussed.

Companies. All matters relating to service and rates of fare
attract wide notice, but as company business is Conducted pri-
vately, plans and proposals do not receive the same notice nor
arouse as much interest as in the case of public plants.

HISTORICAL AND GENERAL. 415

A 14. Have there ever been competing street railway companies
in the city?

Glasgow, Liverpool, Manchester. No, but there are and have
been for years steam railroads which run out in several directions.
These do a large suburban business and compete with certain of
the tramway lines for traffic. In Glasgow there is also a subway,
but the service is not very good and it feeds a limited district.

London C. C. As explained under inquiries A 5-8 above,
there were many separate lines and companies in London. Of
course, in a way, they were competing companies, but as each
tapped a different area, and as few persons could select between two
or more lines when making a trip, there was not genuine and ac-
tive competition. Now there are the deep level subways, steam
roads and omnibus lines which compete to a certain extent. The
Southern system does not include quite all of the lines south of the
Thames in the County of London, but nearly all.

London United. No, except the indirect competition of lines
in nearby districts, of the steam roads and of omnibuses.

Dublin. Yes, up to 1881. The companies to a certain extent
supplied the same areas, but generally speaking they ran in dif-
ferent directions. Such competition as there was consisted prin-
cipally of a struggle to occupy new streets before their competi-
tors, to give better and cheaper service, and to stimulate the growth
of population in their areas rather than in others. The steam
roads have always been competitors for suburban traffic to a cer-
tain extent.

Norwich. No, and the town is too small for the tramways
to feel any competition of steam roads.

A 15. Are there competing companies now?

No, except the indirect competition spoken of above. The
tramway lines in each instance have been consolidated into a sin-
gle system, except in the Southern system in London, where there
are a few miles south of the Thames not belonging to the County
Council.

A 16. If private companies have consolidated, give dates and
methods briefly.

See under inquiries A 5-8.

410 NATIONAL CIVIC FEDERATION.

A 17. Give population of city at last national census, 1901.

A 18. Give estimated population January 1, 1906, of the areas

in which lines may be operated.
Undertakings. A 17. A 18.

Glasgow 760,423 ^,050,000

Manchester 543,872 2900,000

Liverpool 684,958 3837,000

London C. C (?) 41,100,000

London United (?) 5400,000

Dublin 290,638 6500,000

Norwich 111,733 7117,000

B— GENERAL FINANCIAL POWERS OF MUNICIPALITIES.

B 1. Does city have power, for construction or acquisition of

tramways, to raise money by issuing securities ?

Glasgow, Manchester, Liverpool. Yes, but each new issue of
securities must be authorized by Parliament either by special act
or provisional order.

London C. C. This body obtains its powers of raising money
for capital expenditure for all purposes by means of an annual
Money Act passed by Parliament. This act confers power to raise
money by the issue of stock and temporarily by bills or temporary
loans. It prescribes the conditions under which money may be
raised and the provisions for repayment of debt, limiting the
amount which may be expended for each purpose within the fman-

1 The department also has running powers over one route mile of
tramways in Paisley — a burgh of 87,000 population west of Glasgow. The
lines in this area are operated by a company. The areas outside of Glas-
gow in which the city is operating tramways have a population of about
260,000, but in many of these areas only a part of the population is
within reach of the tramways, as some of them are very sparsely settled.
The figures here given are for the whole of all the areas, no matter it"
the lines only run through one part of the district.

2 The department has powers in ten outside areas, having an esti-
mated population of about 270,000 people, but in several cases the rights
have only recently been secured and only for short or connecting lines.
As in the case of Glasgow, the figures here given include the population
of the whole of all the areas, even though the people are not on the tram-
way lines. The purpose of the department has been to connect Man-
chester with the other towns at some distance. One of the areas in
which Manchester has a short line for this purpose, has a population
itself of nearly 100,000 and a tramway system of its own. Manchester
also exchanges running powers with two other local authorities, the
population of which is not included here.

3 The estimated population of Liverpool alone is 700,000. The de-
partment operates lines outside of its area in Bootle and Litheriand
which have estimated populations of 03,000 and 14,000 respectively.

4 This estimate of the population of the areas reached by the Lon-
don County Council system is only a rough approximation. It is all
within the County of London.

B This estimate is only approximate.

"The areas outside of Dublin in which the company is operating
have :m estimated population of 180,000.

' The company has no lines outside of Norwich.

HISTORICAL AND GENERAL. 417

cial period covered by each act. The financial period is a period of
18 months, comprising the financial year from April 1 to March
31, and the following six months ending September 30. The pow-
ers of expenditure conferred for "the following six months" are
tentative powers only, and are superseded by the powers conferred
for the year by the following Money Act. This is necessary be-
cause the financial year ends on March 31, and the act which con-
fers the power for the next year is not passed by Parliament until
July or August.

B 2. Does the city have power, for construction or acquisition of
tramways, to raise money by taxation?

The Tramways Act of 1870 provides that a local authority
shall pay all expenses incurred in securing a provisional order and
carrying it into effect or of purchasing a tramway system from a
private company out of the local rate (local taxation) ; and if
such rate be insufficient because of the limit imposed by law, the
Board of Trade may extend the limit by a provisional order. (For
borrowing powers, see inquiry D 22.) Naturally, it is not cus-
tomary to raise money for capital purposes by taxation, but the
local authorities may do so. No municipality has obtained addi-
tional powers in this regard by special enactment.
B 3. Does the city have power to raise money by taxation to meet
a deficit? If so, what statutory limit is fixed?

Glasgow. City has no such power. The "Common Good"
may be called upon to make up a d'eficit.

Manchester, Liverpool, London C. C. See B 2 above. When
the rates are mortgaged to secure the payment of the interest and
principal of the outstanding liabilities, as the cities may do gen-
erally, the taxing power may be utilized to make good any deficit
in this direction.

B 4. State fully, step by step, the procedure which must be fol-
lowed and the requirements which must be met before;
the city may construct or acquire a plant; also source
of each provision, whether state constitution, statute or
ordinance. Note particularly requirements as to initia-
tion of proposal, special action by' the city authorities
before its adoption, mayoralty veto, referendum, pub-
licity, maldng of appropriations, bond issues and ap-
proval of scheme by courts or state authorities.
See inquiry B 5 under Gas. The summary there given applies

here. A more complete discussion is given in the special report on

franchise legislation.

C— INCORPORATION OF COMPANIES.
C 1. Date of incorporation of present company.

London United, 1901 ; Dublin, 1896 ; Norwich, 1897.
C 2. Place of incorporation.

London in each case, except the Dublin United company,
which was incorporated in Dublin.
Vol. III.— 28."

418 NATIONAL CIVIC FEDERATION.

C 3. Was incorporation under general law, special act, adminis-
trative order or other method ?

London United, Dublin. General Companies Acts, 1862-
1900, which provide a general routine for the incorporation of any
•company.

Norwich. By a special act of Parliament, 1897.
O 4. For what length of time was incorporation to be effective?
As no limit was fixed in any act, it is in perpetuity, or until
the company is wound up voluntarily or by act of Parliament.
<C 5. If this duration has since been extended or decreased, state
when, how, or for what period of time, and reasons there-
for.

No change has been made in any case.
O 6. Was the power of amendment or alteration reserved to the

state ?

No power to amend or annul was expressly reserved, but Par-
liament has the power to do either at any time.

I>— PUBLIC SUPERVISION OF MUNICIPALITIES AND COMPANIES.
D 1. Does municipality or company have power to condemn
private plants under the right of eminent domain?

There is no general "right of eminent domain." Property
may not be acquired otherwise than by agreement, except under
authority of Parliament given by private act or provisional order,
and when powers of "compulsory purchase" are so conferred, Par-
liament amply protects vested rights. This is true of cities and
companies alike.

D 2. Does municipality or company have power to purchase
private plants?

Municipalities. There are no private tramway systems in any
municipality here dealt with, except London; the conditions of
purchase there are given under D 8. No tramway system may be
purchased by agreement by a looal authority unless the transfer
shall have been approved by the Board of Trade and unless the
resolution authorizing the purchase shall have been adopted at
a special meeting of the local authority, held after one month's
notice, at which two-thirds of the members vote and a majority
of those voting approve (Trmways Act, 1870).

Companies. There are no competing tramway systems in
Dublin or Norwich, but there are in the areas adjacent to the Lon-
don United. But no company may buy lines belonging to another
company without the approval of the Board of Trade. The stat-
utory provisions regarding the purchase of the present systems by
the local authorities are given under D 8.

D 3. Does the municipality or company have power to construct
works upon its own property?

The same rule applies here as in electric lighting; see, there-
fore, inquiry D 3 in the Schedule upon Electric Lighting.

PUBLIC SUPERVISION. 419

D 4. Does the municipality or company have power to lay tracks

in the streets?

Each undertaking has been given authority by Parliament to
lay tracks in certain streets, the exact locations being specified in
detail. No municipality or company has been given general power
to construct lines, and each new project, no matter if it invokes
only a "crossover" of a few yards in length, must be sanctioned
by Parliament through a special act or provisional order, except in
certain cases where power to substitute double for single track has
been given. The conditions attending the use of these powers are
given in the following pages.

D 5. Does the municipality or company have full powers of op-
eration ?

Yes, generally speaking; but there is a tendency to withhold
from municipalities some of the powers that are freely given to com-
panies ; see the experience of the London Countv Council given un-
der A 5-8.

D 6. How were these powers conferred?

By general laws, special acts and provisional orders. See
lists under Sources.

I) 7. Explain system of taxation fully, including all payments
to central and local authorities, fees, special assessments,
etc.

See special report on this subject.

D 8. Give statutory provisions regarding purchase of plants by
public authorities.

Municipalities. The undertakings are already in the hands
of the public authorities except about fifteen route miles in the
County of London, operated by private companies. These may all
be acquired by the London County Council upon the terms of the
Act of 1870 or at "going value" (see under Companies below for
explanation of these terms) by 1909.

Glasgow and Liverpool are the only cities that own tracks out-
side of their own areas. Of all the local authorities in whose areas
Glasgow is operating, only one — Clydebank — has reserved the right
to purchase the lines in its area at any specified date, and here the
provisions of the Act of 1870 apply. The other local authorities
may purchase only by agreement or after having secured the pass-
age of a special act of Parliament giving them authority — a step
which Parliament would be very slow to take. The leased lines
and those over which running powers are held, of course do not
belong to Glasgow but to outside authorities or companies.

Manchester also operates lines in a dozen different districts,
but it owns tracks in none of them. In all but four it has provided
the electrical equipment to operate the lines on the overhead sys-
tem, and at the end of the leases (21 years from date of signature),
it must remove this equipment unless the local authorities purchase
it by agreement or arbitration. (In this connection, see what is

420 NATIONAL CIVIC FEDERATION.

said about Manchester under inquiry D 8, Electric Lighting Sched-
ules.)

Liverpool owns a line in Litherland of three-fourths of a mile,
which may be purchased, according to an act of 1897, seven years
from that date and every three years thereafter, under the terms
of the general law given below. In return for the reconstruction
of the line, Litherland has signed an agreement not to exercise its
option to buy before April 1, 1922. The lines operated in Bootle
belong to that borough and are leased to Liverpool (see A 5-8).

Companies. I. The Tramways Act of 1870, which applies to
all of Great Britain unless an exception is expressly made by a
special act of Parliament, provides that local authorities may joint-
ly or separately acquire the tramways of a private company at the
expiration of twenty-one years from the issuance of the act or pro-
visional order authorizing the construction of the line, or at the
expiration of any subsequent period of seven years. The Act also
prescribes the procedure which must be followed. The resolution
must be passed at a special meeting of the members of the local
authority, whether it be a city council, an urban district council,
a local board, a vestry or the road trustees, held within six months
after the expiration of the period ; a month's notice of this meeting
must be given and the purpose stated in the notice; two-thirds of
the members must be present and vote, and a majority of these
must concur in the resolution (an exception is made for the Scot-
tish road trustees). The purchase is not valid without the approval
of the Board of Trade. Notice must be served in writing upon
the owners requiring them to sell.

II. The compensation is stated to be "the then value (ex-
clusive of any allowance for past or future profits of the under-
taking, or any compensation for compulsory sale, or other consid-
eration whatsoever) * * * such value to be in case of dif-
ference determined by an engineer or other fit person nominated
as referee by the Board of Trade on the application of either party,
and the expenses of the reference to be borne and paid as the ref-
eree directs." In interpreting these words, the courts have held
that no question of rental value may be considered in determining
the purchase price, because rental value is based upon past profits
and probable future profits, and that the amount to be paid is what
it would cost at the date of the sale to construct the tramway lines
as they stand, subject to a proper deduction in respect of deprecia-
tion, but with no allowance for the rights, powers and privileges
of the promoters. (See discussion in Eobertson, pp. 181-9.)

III. The property taken shall include "all lands, buildings,
works, materials and plant of the promoters suitable to and used
by them for the purposes of the undertaking within such district"
and "all the rights, powers and authorities of such promoters in
respect to the undertaking sold," which "shall be transferred to,
vested in, and may be exercised by the authority to whom the same
has been sold." It is to be noted that the local authority is not
authorized or required to take over the whole of the undertaking

PUBLIC SUPERVISION. 421

if it is not situated wholly within its area, but only the part that
is within its jurisdiction. Upon the other hand, an authority may
not purchase the lines beyond its area unless acting jointly with an-
other authority. The courts have held (see the Manchester decision
cited under A 5-8) that the purchasing authority must take all the
lands, buildings, materials and plant of the company, if it takes all
the lines, rights and powers, although they may be to some extent
useless to the purchasers in view of the intended electrification of
the system. It has also been decided (see decision quoted under
A 5-8, London C. C. and others cited in Robertson, pp. 181-9) that
the periods of purchase run for each section separately from the
date of authorization. Consequently, if a system was built under
acts passed at different dates, the right of purchase is exercisable
21 years, and every seven thereafter, from the date of each grant ;
so unless an agreement is reached it may not be taken over as a
whole, but only by piecemeal.

IV. The above paragraphs, I-III, provide for the acquisition
of tramways by compulsory purchase at certain periods. There
are four other ways of securing control: Purchase by agreement,
acquisition in case of insolvency or of discontinuance of operation,
and purchase by special act. The Act of 1870 provides that when
a line has been operated for six months, it may be sold to any one
or to the local authority of the district with the approval of the
Board of Trade. As the local authority cannot compel a sale in
this case, it is implied that the terms must be mutually agreed upon.
The sale includes the transfer of all rights and property as set forth
in paragraph III above, so that the local authority is completely
substituted for the company. The procedure to be followed in
passing a resolution for purchase is the same as stated in para-
graph I.

V. The initial step in the case of suspected insolvency is to
be taken by a local authority. If it makes a representation to the
Board of Trade that the company is insolvent and therefore unable
to work its lines with advantage to the public, the Board may make
an inquiry through a referee; and if the referee reports that the
company is insolvent, the Board may terminate the powers of the
company six months hence. At this point the local authority may
step in and purchase the undertaking as provided in paragraphs
I-III, remove the tracks from the streets and charge the costs to
the company.

VI. The procedure in the case of discontinuance of operation
is as follows : If a company ceases to operate its system or any part
thereof for three months, the Board of Trade may annul its powers,
so far as they relate to the lines discontinued, unless the company
is not responsible for the discontinuance. When this is done, the
local authority may purchase the lines affected, as provided in
paragraphs I-III, or remove them at the expense of the company,
when permission has been obtained from the Board of Trade.

VII. The only other way by which a municipality may take
over an undertaking is by a special act of Parliament granting such

422 NATIONAL CIVIC FEDERATION.

authority and specifying the terms. This method is more theo-
retical than practical, for Parliament does not pass such a law un-
less the company is willing to sell or unless it has been guilty of
gross mismanagement and has utterly disregarded the interests of
the public.

VIII. The Light Railways Act of 1896, under which street
railways are sometimes constructed, does not contain any provi-
sions relative to purchase by local authorities; it leaves this mat-
ter to be dealt with in the order issued by the Light Railway Com-
missioners for each case.

IX. We come now to the three companies dealt with in this
schedule, and unless noted to the contrary, the provisions of the
Act of 1870 apply in every regard :

London United. The two essential points in which the acts
and orders governing this company have modified the general law
are the periods of purchase and the price to be paid, but the changes
made are by no means uniform in respect to either. Different sec-
tions have been authorized at various times, and as the lines run
through the areas of many local authorities, the terms demanded
by these authorities naturally have varied from place to place and
from time to time. The periods of the grants have varied from 7
to 30 years, usually 21, 25 and 30. The price to be paid has vacil-
lated between the terms of the Act of 1870 and "the fair market
value thereof as a going concern, but without any allowance for
compulsory purchase, such value to be, in case of difference, deter-
mined by an engineer or other fit person nominated as referee by
the Board of Trade on the application of either party."

When the present company was formed in 1901, the prospec-
tus then issued stated that the local authorities had an option of
purchasing the 50| route miles, existing or authorized, of the ven-
dor company at various times, approximately as follows, dating from
Midsummer, 1901 :

17 miles for 25 years,
24 " " 23 "
5i " " 18 "
4J " " 8 «

50^ miles for 22 years nearly on the average.

It also stated that in respect of about 30 miles, the price to be
paid would be the market value as a going concern and for about
20 miles the value as fixed by the 1870 Act.

Since 1901, upwards of 30 route miles of lines have been au-
thorized, but not all had been opened before the end of 1905. In
the London Stock Exchange Official Intelligence for 1906, it is
stated that 53£ route miles are purchasable as "a going concern"
and 24 miles under the Act of 1870, and that the average period
of purchase was 20£ years from February, 1906. If no new lines
had been authorized since 1901, the average would have been about
17£, but as the new lines were for 25 and 30 years principally, the
average was brought up.

PUBLIC SUPERVISION. 423

The earliest date when any line may be acquired is 1909. This
does not mean that the powers granted in the seventies were for
30 years and over, but rather than certain of the earlier grants have
been extended since they were originally made. One of the latest
grants expires as early as any, for a short length of track purchas-
able in 1909 was authorized in 1902. Indeed, the policy of sev-
eral of the local authorities has been to make the grants synchron-
ous in their areas, and for this reason they have given extensions or
approved grants for short periods, as 7 or 14 years.

Dublin. The Tramways Act of 1870 and the Light Kailways
Act of 1896 do not apply to Ireland, the tramways in Irish cities
being built under Orders in Council, special acts or the general
laws cited under Sources. The provisions regarding acquisition
by municipalities of the Dublin system are to be found in the vari-
ous special acts that have been passed. Those relating to insolvency
and cessation of operation are the same as those in the 1870 Act,
and in the main the statements made above concerning purchase
by agreement and under special act apply here. The clauses deal-
ing with compulsory purchase differ in several important points
from those given above.

The first act under which tracks were laid, that of 1871,
authorized the local authority to purchase the lines in 11 years,
the price therefor to be fixed by agreement or failing agreement
by arbitration, but not to include any allowance for good will, com-
pulsory purchase, etc. To the value thus obtained, 30 per cent, was
to be added, and this sum was to be the compensation for the trans-
fer of all rights, privileges and property. This principle was fol-
lowed in the acts of the next few years, but one of the acts of 1878
copied the provisions of the general Tramways Act of 1870 for
Great Britain. The Act of 1880 did likewise and fixed a period of
10 years for certain lines. But all of these provisions were super-
seded by the Act of 1897 which authorized the conversion of the
system to electricity. It provides that the road authority in each area
may purchase and operate the existing undertaking and all tram-
way lines erected or to be erected in its district, within six months
from 40 years from December 31, 1808. and from any seven years
thereafter, the terms to be those of the Tramways Act of 1870 plus
30 per cent, of the then value.

Norwich. The general Act of 1870 applies with the following
amendments: The earliest date when the city may acquire is 1911,
14 years from the passage of the act in 1897 creating the company
and giving it power to build a tramway in Norwich. The price
to be paid is the then value as a going concern, subject to the right
of purchase in 50 years from 1897, plus an amount equal to three
times the average net annual profits of the preceding five years,
and plus an amount equal to two-fifths of the cost of new streets
and street widenings (such two-fifths not to exceed £44,000), less
the sum which would have accumulated as a sinking fund at 3 per
cent, interest sufficient to pay it off in 50 years. The city may
also purchase in 21 years from 1897 or at the end of any succeed-

424 NATIONAL CIVIC FEDERATION.

ing period of seven years by paying an amount arrived at in the
same way, minus the sum for three times the average net profits for
five years. Fifty years from 1897 or every 7 years thereafter, the
city may purchase upon the terms of the 1870 Act.

D 9. Give statutory provisions regarding condemnation of pri-
vate plants by the city under power of eminent domain.

No such general right in English law, as explained under D 1.
D 10. Give statutory provisions regarding size and location of
plant.

The land that may be used for generating station, sheds, etc.,
is ordinarily specified in the acts but not always. Of course land
may not be acquired otherwise than by agreement without express
authorization by Parliament, and it is customary to limit the time
within which it may be taken to a few years, two or three ordin-
arily. (See in this connection inquiry D 3 in the Electric Light-
ing Schedule.) -The character and location of the track and struc-
tures in the street are very carefully specified in the statutes (see
D4and 12).

D 11. Give statutory provisions regarding area to be served. (See
also A 17 and 18.)

As already stated, neither companies nor local authorities have
been given roving powers to locate lines wherever they please; spe-
cific authority must be obtained for every bit of track laid.

POPULATION OF AREAS AND MILEAGE.1

Mileage Mileage Mileage

Vndc.-- Total Pop. of Pop. Owned Owned Leased

takings. Population. Borough. Without. Within. Without. Without.

Glasgow 1,050,000 790,000 260,000 96.4 41. 10.2

Manchester .... 900,000 630,000 270,000 106 36.15

Liverpool 837,000 760,000 77,000 lOOi 9.2 (?)

London C. C.2.. 1,100,000

London United3 400,000

Dublin 500,000 320.000 180,000 51.98 43.25 6.71

Norwich 117,000 117,000 19.26

D 12. Give statutory provisions regarding nature of plant and

equipment.

The most important provisions are as follows :
I. The Act of 1870 provides that every tramway in a town
shall be placed in the middle of the street as nearly as possible and
that no track shall be authorized by provisional order to be laid

JThe population figures are all estimated, but are probably very
nearly accurate, except possibly in the case of the London C. C. and the
London United. In no case do they indicate the number of people who
use the lines or may do so without inconvenience, for the population of
all of every district is included, no matter if the lines in it run through
only one part of it and do not serve the entire area.

2 The lines of the London County Council run through many dis-
tricts, but are within the County of London.

3 The London United Company has lines in many districts in the
counties of London, Middlesex and Surrey.

PUBLIC SUPERVISION. 425

less than 9 feet 6 inches from the curb for a distance of 30 feet
or upwards if one-third of the owners or occupiers of the property
abutting on the street where the space is less than 9 feet 6 inches
shall object. This clause has not generally been set aside by special
acts, but a few exceptions have been made in nearly every town,
especially in London and Norwich, where the streets are so narrow.
In some instances, notably in the acts of the London United Com-
pany, the authority has been given to narrow the sidewalk to get
the required 9 feet 6 inches, or the company has been called upon
to widen the street to get the necessary space. In Dublin, the com-
pany has generally been required to construct passing places or
crossovers in such cases.

II. As to the gauge of the tracks, the Act of 1870 provides
that if no width is specified in the special act, it shall be 4 feet
8-J inches — the gauge fixed in 1846 for railways generally. Al-
through various gauges were adopted in the earlier acts, especially
in those towns where there were independent companies, as in Lon-
don and Dublin, at present the standard size in all the undertak-
ings, except three, is 4 feet 8-J inches. In Glasgow it is 4 feet
7f inches, in Dublin 5 feet 3 inches, and in Norwich 3 feet 6 inches.
All statutes require that the rails shall be approved by the Board of
Trade and shall be laid and maintained so that the uppermost
surface shall be on a level with the surface of the road. Generally,
the maximum width of the car is limited to 11 inches beyond the
outer edge of the wheel on each side, but the narrower gauges are
allowed more overhang.

III. The paving requirements vary considerably. The Act
of 1870 requires the undertakers, whether companies or municipal-
ities, at their own expense to pave, repair and maintain, with such
materials and in such manner as the road authority shall direct
and to their satisfaction, the portion of the roadway between the
tracks, unless more than four feet apart, between the rails and 18
inches beyond. If the undertakers do not comply, the road author-
ity after due notice may perform the necessary work and collect
the expense from them. If a line is abandoned and the track re-
moved, the roadway must be replaced and repaved. The conditions
applicable to the various undertakings are :

Municipalities, The above provisions apply in the area of the
city itself, in the areas outside and where the road authority is an
entirely different body from that having control of the tramways.

London United. The above provisions are the normal require-
ments, but many of the local authorities through whose areas the
lines run have exacted additional or supplementary provisions. The
most common is the clause stating that the company shall pave and
repair the whole of the roadway when the rails are within three
feet of the curb; but the amount of work necessitated thereby is
not large, for it only adds a strip 18 inches wide and the number
of places where the rails are so close is limited, as will be seen by
referring to paragraph I above. In several districts, the company
may be required to use granite or hard wood laid on concrete and

426 NATIONAL CIVIC FEDERATION.

grouted, but these provisions do not necessarily add to the re-
quirements of the general statute, for according to the latter the
paving must be of such materials and must be done in such man-
ner as the road authority may direct, under which wood, granite,
asphalt or brick could be insisted upon. There are, however, sev-
eral instances in which an additional burden has been definitely
imposed. For example, the Act of 1904 requires that the company
shall pave the roadway with wood for 50 feet on each side of the
tracks in front of all places .of public worship, schools and public
buildings along the route. Few of the streets if any are 115 feet
wide or over, so that means practically that the company has to
pave the whole of the street in front of these buildings. According
to another act, wood paving must be laid on certain lines in front
of all schools and buildings used for public meetings habitually,
and ten yards on either side of the road frontage of the property ;
7 yards in still another case. In another area, the company must
pave the whole of a street with wood for a short distance. In an-
other small area, the distance to be paved beyond the rails is 2 feet
instead of 18 inches. In another, the entire width of the street
for certain blocks shall be paved with granite blocks.

Dublin. The provisions generally applicable are similar to
those of the Act of 1870, except that the materials to be used may
be the same as those used on the rest of the road. In addition,
under the Act of 1878, the Central company was required to pave
the entire width of two streets, and one foot further beyond the
rails, making 2£ feet in all. In 1897, when electric traction and
new lines were authorized, the company was made to agree to pave
and maintain the whole of one street for a certain distance, to use
wood or asphalt and to pave 30 feet or both sides in front of the
Academy of Music, all hospitals and all churches past which cars
run on certain lines.

Norwich. The same clauses that are in the Act of 1870 are
in force, except that where the rails are within 3 feet of the curb,
the company shall pave the whole of the roadway, and that if the
company defaults and the city has to perform the work, 5 per cent,
shall be added to the cost and paid to the city. The length of the
street which the company must repair because of this provision is
about one mile.

IV. The power to open streets for the purpose of laying or
repairing tramways is subject to certain restrictions under the gen-
eral law. For example, due notice must be given to the road author-
ity, the work must be done under its supervision, the length that
may be torn up at any one time is limited, openings must be prop-
erly watched and guarded and the surface must be restored
promptly ; but all of these clauses apply alike to the companies and
the municipalities so far as practicable.

It is also customary invariably to fix a time limit within which
the lines authorized must be completed and opened for traffic. The
law of 1870 enacts that the work must be begun within one yeai-
and finished within two, but the statute was drawn up when only

PUBLIC SUPERVISION. 427

horse cars were known, and since then the period for completion
has been lengthened. At present a five year period is common for
work of any considerable magnitude and in a few instances, e. g.,
lines for the London United company and the London C. C., seven
years have been allowed. The general principle is to fix a period
commensurate with the work to be done, a short period for a small
job and a long period for a big scheme involving street widening^,
etc., but always sufficient time to complete the work.

The penalty for default contained in the 1870 Act is that the
powers in relation to the uncompleted work shall cease, unless the
time be prolonged by the Board of Trade, and likewise those relat-
ing to the work performed unless the Board shall otherwise direct.
If they are not thus renewed, the lines shall be considered as dis-
continued lines and treated as provided in paragraph VI and D 8
above. This part of the penalty is to prevent a company from al-
lowing part of its powers to lapse in its own interest while com-
pleting the part of the scheme which is the most profitable. It not
infrequently happens that a local authority gives its consent to
certain proposals only when and because certain other works are
to be carried out. If there were nothing to prevent, a company
might neglect to execute this part of the scheme and thus evade
the obligations while securing the privileges it sought. As it :'s,
this can not be done unless the Board of Trade permits it.

These provisions apply to all schemes built under provisional
orders but do not apply to those authorized by special act unless
incorporated therein. The acts of the London United company have
almost without exception provided different penalties. In seveial,
particularly the earlier ones, the powers are to cease for the work
uncompleted at the end of the period, and no further provision is
made, which leaves it possible for the company to drop any part
of a scheme and carry out the rest if it wishes to do so. In the later
acts, an additional section is inserted which imposes a fine of £50
for each day that work remains uncompleted. These two provisions
seem a little incongruous, for the powers cease if not completed,
and yet there is a fine of £50 per day for each day of non-comple-
tion. Evidently it is intended that the cessation of powers shall
.-apply when no work has been begun on that line or that section,
and that the fine shall apply where work is under way but not fin-
ished and open for use. This is intimated from the disposition
to be made of the fines, viz., for the compensation of any land
owner or other person whose property may have been interfered
with or rendered less valuable by the non-completion of the work,
and of the road authority for any expense made necessary by the
default,-the balance, if there be any after the payment of all claims,
to be repaid to the company.

The Norwich company was reqiiired, in addition to loss of
powers for uncompleted work, to pay £10,000 to the city unless it
shall have made substantial progress within eighteen months with
the construction of new streets and street widenings, the Board
of Trade to be the judge of whether substantial progress had been
made.

428 NATIONAL CIVIC FEDERATION.

V. The Act of 1870 left the special act to provide what
motive power might be used, but stated that if nothing was said,
only animal power should be adopted. As a matter of fact, all of
the undertakings have now been authorized to use the overhead
trolley, except the London C. C., which is required to use the con-
duit system. In some instances, cable or steam traction have been
authorized, as for example on certain of the London and Liver-
pool lines. The statutes have delegated to the Board of Trade the
power to issue regulations regarding the use of mechanical trac-
tion, and consequently few provisions relating thereto are to be
found in the acts. Those almost universally in force require that
all reasonable precautions must be used to avoid fusion or elec-
trolytic action, that insulated returns or uninsulated metallic re-
turns of low resistance be adopted, and that snow removed from
the tracks may be put to one side of the street temporarily and then
taken away entirely. Certain others of a similar character also
apply alike to companies and municipalities.

VI. Besides the above, every undertaking is governed by cer-
tain exceptional statutory provisions. It is unnecessary to give
these in detail, for they are hardly of sufficient importance from
the viewpoint of this investigation /to warrant it. But in the case
of the London United company, the number is unusual and the
most important should be cited, for the local authorities have in-
sisted upon many and varying clauses before giving their approval
to schemes. On the Kingston lines, the cars are required to be of
the best modern type and to be maintained in efficient condition.
•The conduit system must be used for certain distances within the

County of London, the overhead trolley upon the remainder. In
each of two districts, a waiting room is required at one point.
Advertisements may not be placed upon the poles in a considerable
number of districts. In a few the law has gone so far as to enact
the following or similar provisions:

" Every rail from end to end to be solidly bedded on concrete.

Fish-plates to be of Bessemer steel seventeen inches in length, three
and three-quarter inches wide by half an inch in thickness.

Tie-rods to be formed of two inches by half inch flat bar iron with
screw end nuts and washers.

The bolts and nuts to be best rivet iron.

The points shall be of the best quality of crucible cast steel six
inches deep with bolt holes drilled and not cored out.

The crossings shall be of steel constructed from the rails.

Wrought-iron or steel fish-plates, bed-plate and angle-pieces with
the necessary bolts, nuts, washers and rivets are to be provided and
fixed suitable for each angle.

The concrete shall be composed of three parts of clean approved bal-
last, two parts of good sharp sand and one part of Portland cement
mixed on a platform with the proper quantities of water laid six inches
thick.

The surface of the concrete shall be screeded with cement and sand
(three to one) to the proper contour of the roadway so as to receive the
rails and wood blocks evenly.

The spaces intervening between the wood blocks and the web of the
rails to be filled in with cement and sand mixed three to one."

PUBLIC SUPERVISION. 429

The recent acts do not go so far, but leave more to the Board
of Trade and the option of the company.

VII. In addition to all these provisions, certain of the central
departments at London and the local authorities have been given
powers through which they may determine the character of the
plant and equipment. The reader should see in this connection
therefore the data given under injuiries D 44 and 46; also inqui-
ries D 16 and 27 for matter closely linked with this subject.
D 13. Give statutory provisions regarding extensions of lines.

ISTo extension may be built except with the express authoriz-
ation of Parliament or the Light Eailway Commissioners under the
Light Eailway Act (see D 4 above).

D 14. Give statutory provisions regarding improvements and
new processes.

None, except those cited under D 44 and 46, and the follow-
ing:

London United. Upon certain lines, after appeal from the
local authorities, the Board of Trade may require the company
to adopt such improvements as it considers wise for "the greater
security of the public and advantage of the ordinary traffic."

Dublin. Under a few acts passed over 20 years ago, the
Board of Trade was empowered to require one company to adopt
such improvements as it may direct. This clause is in none cf the
recent acts and its present application is open to question. Proba-
bly it applies if at all only to those few lines authorized in these
acts.

Norwich. The Act of 1897 provides that on appeal from the
company or the city, the Board of Trade shall appoint an arbi-
trator to decide whether storage batteries or accumulators are ad-
visable,, and that if he reports that they are, the company shall
introduce them provided they will allow a profit of not less than
5 per cent, on the capital.

D 15. Give stautory provisions regarding fares and transfers.

I. There are no statutory provisions whatever regarding trans-
fers. The nearest approach to a transfer mentioned in any act is
the return-trip tricket for workingmen mentioned below.

II. The general statutes do not fix the rates of fare or charges
which an undertaking may levy for the conveyance of persons or
things, but a list of the maximum tolls is given in each act or
order. Practically all provide that no higher rates shall be charged
upon Sundays and holidays than at other times. Passengers are
allowed to carry luggage usually up to 28 Ibs. in weight free. The
maximum fare is ordinarily fixed at Id. per mile or fraction there-
of, and the company or municipality is left to apportion the lines
into stages as it chooses, subject to this limitation. The following
special provisions apply:

Glasgow. All charges shall be the same outside of the city
area as within, except where only running powers are held.

430 NATIONAL CIVIC FEDERATION.

Manchester. The city may charge 2d. for any distance less
than two miles. Certain of the old company acts allowed a mini-
mum fare of 3d.

Liverpool. Apparently the limits given in the acts of the
old company are still in force. These fixed the maximum fares
for each section or route, allowing a higher rate for seats inside
the car than outside. The lowest rate was Id. and increased with
the distance, being about Id. per mile. The acts of recent years
have contained a clause stating that charges must be reasonable.

London C. C. The acts of the private companies are still in
force. The maximum rate is usually Id. per mile, with the power
to charge 3d. for less than 3 miles or 2d. for less than 2 miles.
These limits have been extended to the new lines built by the
County Council.

London United. The acts of this company almost always fix
the limit for each section and route, usually so that the fare for
each section may not be more than Id. But a route may have more
than one section and in several instances the maximum is 2d.
Upon the average the limits are about Id. per mile. Children un-
der 2 years of age are free if they do not occupy a seat to the ex-
clusion of others.

Dublin. The first act allowed the original company to charge
3d. for 3 miles or less and Id. per mile for any additional distance.
This section was copied in other early acts and is still in force.
The North Dublin company was permitted to charge 3d. per mile
with a minimum fare of 3d. The Southern District and the Cen-
tral Companies were limited to 2d. per mile for first class and l^d.
per mile for second class — the general limits in the Act of 1860.
Some of the most recent acts have reduced these limits. For ex-
ample, the fare from Nelson's Pillar to Sandymount or Donny-
brook may not exceed 2d.

Norwich. The general rules apply — Id. per mile, etc.

III. The limits for workmen's fares are usually one-half the
ordinary fares. The special clauses in each case are :

Glasgow. For the use of workingmen, at least two cars must
be run each way on every line, every morning before 7 and every
evening after 6, Sundays and certain holidays excepted, at fares
not exceeding |d. per mile with a minimum of Id. If complaint
is made to the Board of Trade that proper service is not given, it
may fix the hours of running cars.

Since 1902 no special workmen's cars have been run, for in
that year all fares were reduced to the workmen's scale.

Manchester, Liverpool. A proper and efficient service of work-
men's cars must be run, Sundays and certain holidays excepted,
every morning before 8 and every evening after 5, except upon Sat-
urdays, when they shall be run from 12 to 2 P. M. instead of after
5, at fares not to exceed £d. per mile, with a minimum of Id. If
complaint is made to the Board of Trade of the service given, the
Board, may regulate it from time to time.

PUBLIC SUPERVISION. 431

London C. C. Same provisions as in Glasgow generally, but
hours vary, different standards having been adopted in the differ-
ent acts. In certain cases, appeal has been allowed to the Board
of Trade.

London United. The acts are not uniform, except that nearly
all require workmen's cars to be run at certain hours, upon which
the fares charged must be about one-half of the usual fares. The
clause most generally in force requires the company to run a proper
and efficient service at such hours, not later than 8 A. M. nor
earlier than 5 P. M. (12 to 2 P. M. on Saturdays) as will be most
convenient for workingmen, at fares not to exceed ^d. per mile,
Sundays and certain holidays excepted. If complaint is made that
a proper service is not being maintained, the Board of Trade may
order such service established as it thinks reasonable. The penalty
for violation is £5 per day. The hours vary in certain districts,
and in some the company must give a round-trip ticket for one
fare, the return stub being good upon any car after a certain hour
or at any time. The acts are not construed to mean that a fare
less than Id. shall be charged, for there are no half-penny fares
on the system.

Dublin. Workmen's cars must be run on certain routes be-
fore 7 A. M. and after 6 P. M., except Sundays and certain holidays,
at fares not to exceed -|d. per mile.

Norwich. Same as Glasgow, except that the periods are be-
fore 8 A. M., after 5 :30 P. M. and between 1 and 2 P. M. upon
every day but Sundays and certain holidays. If complaint is made
to the Board of Trade of the times at which these cars are run,
the Board may fix and regulate from time to time.

IV. The charges for carrjdng merchandise are also regulated
by statute. The Irish Tramways Act of 1860 contains a most elab-
orate schedule of maximum rates for all sorts of "goods." Appar-
ently it was thought at that time that tramways would be used
very widely for the transportation of merchandise in large quanti-
ties, but such has not been the case. However, all undertakings
are limited to some extent by their special acts. The general stat-
utes for British cities contain no maximum rates.

Glasgow. Charges may not exceed:
For any parcel not over 7 Ibs 3d.

" " « " 7 " but less than 14 Ibs 5d.

« a a « -i A a c( a « go (i 7/1

" " " " 28 " " " " 56 "!!"]]] 9d!

« 56 « « « « 500 « no limii

The city may not carry goods, etc., other than passengers' per-
sonal luggage within the County of Renfrew without the consent of
the local authority.

Manchester. The following scale of maximum charges ap-
pears in most of the acts passed prior to municipalization and is
still in force, not having been repealed:

432 NATIONAL CIVIC FEDERATION.

ANIMALS.

Per

Mile.

s. d.

" For every horse, mule, or other beast of draught or burden 0 3

For every ox, cow, bull, or head of cattle 0 3

For calves, pigs, sheep, aud small animals 0 2

GOODS AND MINERALS.

For all coals, culm, cannel, limestone, chalk, lime, slates, clay,
ironstone, undressed or scabbled stones for building, pitch-
ing, and paving, slag, stone, salt, sand, cinders, and all un-
dressed materials for repair of public roads, per ton 0 3

For all iron, pig iron, bar iron, rod iron, sheet iron, hoop iron,
plates of iron, slabs, billets, and rolled iron, wrought iron, not
otherwise specifically classed herein, and for heavy iron cast-
ings (including railway chairs), tiles, bricks, coke, charcoal,
dung, manure, and compost, per ton 0 4

For all timber, or wood, per ton 0 4

For all sugar, grain, corn, flour, hides, dyewoods, earthenware,
staves, deals, and metals (except iron), nails, anvils, vices,
and chains, and for light iron castings, per ton 0 5

For all cotton and other wools, drugs, manufactured goods, and
all other wares, merchandise, fish, articles, matters, or things,
per ton 0 H

For every carriage of whatever description 1 0

SMALL PAECELS.

[Same as charges under Glasgow practically.]

SINGLE AETICLES OF GREAT WEIGHT.

For any boiler, cylinder, or single piece of machinery or single
piece of timber or stone, or other single article, the weight of
which, including the carriage, exceeds four tons but does not
exceed eight tons, per ton 3 0

For any single piece of timber, stone, machinery, or other single
article, the weight of which, with the carriage, exceeds eight
tons, the person or persons conveying the same under the pro-
visions of this Order may demand and take such sum as they
or he think fit.

REGULATIONS AS TO TOLLS.

In respect of animals, goods, and minerals conveyed for any less
distance than three miles, tolls and charges may be demanded and taken
as for three miles."

[Here follow rules about distances less than one mile, fractions of a
ton, weighing of lumber and definition of " parcels."]

Liverpool. The maximum charges fixed by the company acts,
but still in force apparently, are:

ANIMALS.

Any
Dis-
tance.
s. d.

" For every horse, mule, or beast of draught or burden 0 0

For every ox, cow, bull, or head of cattle 0 (»

For every calf, pig, sheep, or other small animal .0 3

PUBLIC SUPERVISION. 433

GOODS AND MINERALS.

Any
Dis-
tance,
s. d.

For all coals, coke, culm, charcoal, cannel, limestone, chalk, lime,
salt, sand, fireclay, cinders, dung, compost, and all sorts of
manure, and all undressed materials for the repair of public
roads or highways, per ton 0 3

For all iron, iron ore, pig iron, bar iron, rod iron, sheet iron, hoop
iron, plates of iron, slabs, billets, and rolled iron, bricks, slag,
and stone, stones for building, pitching, and paving, tiles,
slates, and clay (except fireclay), and for wrought iron, not
otherwise specifically classed herein, and for heavy iron cast-
ings (including railway chairs), per ton 0 3

For all sugar, grain, corn, flour, hides, dyewoods, earthenware,
timber, staves, deals, and metals (except iron), nails, anvils,
vices, and chains, and for light iron castings, per ton 0 4

For cotton and other wools, drugs, and manufactured goods, and
all other wares, merchandise, fish, articles, matters, or things,
per ton 0 4

For every carriage of whatever description not weighing more
than one ton, tenpence ; and the additional sum of twopence
for every additional quarter of a ton above one ton.

SINGLE ARTICLES OF GREAT WEIGHT.

For the carriage of any iron boiler, cylinder, or single piece of
machinery, or single piece of timber or stone, or other single
article, the weight of which, including the carriage, shall not
exceed four tons, per ton 0 8

For the carriage of any single piece of timber, stone, machinery,
or other single article, the weight of which with the carriage
shall exceed four tons, such sum as the person or persons con-
veying the same may think fit.

PARCELS.
[Same as Glasgow and Manchester, practically.]

REGULATIONS AS TO TOLLS.

[Here follow rules regarding fractions of a ton, weighing and
charges for lumber.] "

London United. (See Act of 1881).

Dublin. The limits imposed by the general Act of 1860, as
amended in 1881, are very voluminous, the principal ones being:

GOODS.
***********

(Class 1.)
For dung, and all sorts of Manure, Chalk, and all undressed materials

for the repair of roads or highways :
For all coals, coke, culm, ironstone, and iron ore:
For all charcoal, limestone, stones for building, pitching, and paving,

bricks, tiles, slates, clay, and sand:

For all iron, lead, tin, and tin plates (except nails, utensils, or other
articles of merchandise) :

Not exceeding for the use of the tramway threepence per ton

per mile :

If conveyed in carriages provided by the owners of the tramway, an

additional sum per ton per mile not exceeding one eighth of a penny :

If drawn or propelled by power provided by the owners of the tramway.

Vol. III.— 29.

434 NATIONAL CIVIC FEDERATION.

a further sum per ton per mile not exceeding three eighths of a
penny.

(Class 2.)

For all other goods, wares, merchandise, articles, matters, or things
(except carriages, herein-after otherwise provided for), not exceed-
ing for the use of the tramway twopence per ton per mile.

If conveyed in carriages provided by the owners of the tramway, a fur-
ther sum per ton per mile, not exceeding one halfpenny :

If drawn or propelled by power provided by the owners of the tramway,
a further sum per ton per mile not exceeding one halfpenny.

(Class 3.)

ANIMALS.

V. The tolls to be taken by the owners of the tramway in respect
of animals conveyed in carriages on the tramway shall be —

(Class 4.)

For every horse, mule, ass, or other beast of draught or burden, ox, cow,
bull, or head of neat cattle, conveyed in or upon any such carriage,
not exceeding for the use of the tramway threepence per mile : * * *

(Class 5.)

For every pig, calf, sheep, lamb, or other small animal conveyed in or
upon any such carriage, not exceeding for the use of the tramway
one penny per mile : * * *

VI. The maximum rate of charge to be made by the owners of the
tramway for the conveyance of animals, articles, matters, or things
respectively included in the classes before-mentioned, including the tolls
for the use of the tramway, and of carriages, and cost of moving power,
and every other expense connected with such conveyance, shall not
exceed the amounts following:

For the matters mentioned in Class 1, not exceeding threepence per ton

per mile ;
For the matters mention in Class 2, not exceeding threepence per ton

per mile ;

For any carriage mentioned in Class 3, not weighing more than one ton,
not exceeding tenpence per mile, and if weighing more than one ton,
not exceeding twopence per mile for every quarter of a ton, or frac-
tional part of a quarter of a ton additional :

For everything mentioned in Class 4, not exceeding sixpence per mile :
For everything mentioned in Class 5, not exceeding threepence farthing
per mile :

Provided always, that it shall be lawful for the owners of the tram-
way to demand and take, in addition to the tolls and rates of charge
hereinbefore authorized, a reasonable sum for the delivery and col-
lection of goods and other services incidental to the business of a carrier
where such services respectively shall be performed by the owners of
the tramway otherwise than on the premises of the tramway.

VII. The following provisions and regulations shall be applicable
to the calculation of the tolls :

[Rules as to minimum distances, fractions of a mile, fractious of a
ton and weighing of lumber.]

VIII. With respect to small parcels and single articles of great
weight, the owners of the tramway may lawfully demand for the car-
riage thereof on the whole or any part of the line the tolls following : "

For any parcel not exceeding 7 Ibs 6d.

For any parcel over 7 but less than 14 Ibs 9d.

For any parcel over 14 but less than 28 Ibs Is.

For any parcel over 28 but less than 56 Ibs Is. 6d.

For any parcel over 50 but less than 500 Ibs No limit.

PUBLIC SUPERVISION. 435

Norwich. Same as Glasgow.

V. The power to alter or revise these maximum rates for pas-
sengers or goods is generally reserved to Parliament by the incor-
poration in the grant of powers of a clause which declares that
nothing in the grant shall be construed to exempt the undertaking
from the provisions of any general act or from any future revision
or alteration under the authority of Parliament of the maximum
rates of charge. Of course, Parliament could amend regardless of
the existence of any such clause, but vested rights are so highly
respected and carefully guarded by that body that unless the power
of revision is expressly reserved, Parliament will not exercise its
power, except in very unusual cases. As a matter of fact, I have
been unable to find a case where a revision of the rates has been
made either by Parliament, or by the Board of Trade as provided
in the following paragraphs. The powers of the Board of Trade
in the undertakings under examination are:

Glasgow. None.

Manchester. The following provision was in force when the
old company was operating the lines and presumably is in force
still generally: If twenty ratepayers or the company appeal to
the Board of Trade urging that the fares and charges be revised,
the Board of Trade may make an inquiry through a referee appoint-
ed by it, and if he report advising a revision, the Board may fix a
new scale of tolls. Eevisions may not be made less than three years
apart, and the fares or charges may not exceed those stated above
as the maximum.

Liverpool, London C. C. Similar provisions with very slight
changes appear in the acts of the old companies here, and as the
powers, rights and duties have been taken over by the local authori-
ties, they are still in force.

Dublin. The clause given as applicable to Manchester is in
force here, except that the local authority may also appeal, and
except that not all of the acts contain the clause.

Norwich. The Manchester clause, plus the right of the local
authority to appeal, applies to the entire system.
D 16. Give statutory provisions regarding character and quality
of service — method of traction, kind of cars, speed, head-
way, etc.

There are few provisions in the acts which directly prescribe
what the service shall be, but there are many which indirectly affect
it; and as to many other important matters, the Board of Trade
and the local authorities have jurisdiction. One should refer,
therefore, in this connection to inquiries D 12, 14, 15, 44 and 46.

Every act practically requires the company or the munici-
pality to keep its track in good repair and to assume the responsi-
bility for any injury to life or property which the operation of the
system may cause. In case a local authority or twenty ratepayers
represent to the Board of Trade that the highway is not being kept
up, it may order an inquiry, and in some cases it may simply re-

436 NATIONAL CIVIC FEDERATION.

port its findings to be used as evidence in a suit, and in others it
may order the default remedied and impose a fine. Generally, but
not in all cases, the undertaking is required to remove the snow
from its tracks, but this would be done when necessary as a matter
of course. It is not permissible to place it at one side of the road,
except temporarily, in most cases. "Trailers" may not be used in
two districts through which the London United company runs ex-
cept in cases of emergency. Upon one line — the Kew Road — cars
may not be run oftener than once in three minutes and none from
midnight to 7 A. M. without the consent of the local authority.
In one district the headway is specified and fixed at one car every
ten minutes from 8 A. M. to 8 P. M. Upon certain lines, if the
company does not provide such service as may be reasonably re-
quired in the public interests, the company is liable to a fine of
£5 per day, the question of what service should be supplied to be
decided by the Board of Trade upon application from the company,
the local authority or not less than 20 ratepayers.

D 17. Is there any authority not connected with the municipality

itself which examines the character of the service?
No, except persons appointed by the Board of Trade to in-
vestigate and report upon the matters over which it has jurisdiction,
or the officers of the local authorities who inspect to see whether the
track and paving are being kept in good condition.

D 18. Are the results of such examination published?
Not regularly, only in special cases.

D 19. Give statutory provisions regarding performance of public
work by contract or direct employment. None.

D 20. Give statutory provisions regarding letting of contracts.

See answer to inquiry D 20 under Gas.
D 21. Give statutory provisions regarding issuance of stock.

Municipalities do not issue dividend-bearing stock — share cap-
ital, as it is called in England.

London United. No statutory provisions except in the gen-
eral acts relating to companies. The amount of share capital may
be increased or decreased as the company wills through its articles
of association. There are no auction clauses or sliding scale pro-
visions as in the case of gas companies.

Dublin. As stated under inquiries A 5-8, the present company
is the outgrowth of the amalgamation of several companies, which
resulted in the increase of stock to the extent of £ 159,229 without
any increase in the tangible assets. The last large increase author-
ized by Parliament was in 1897 — £400,000 to electrify the system.
Not all of this was issued, and by Act of 1905 the share capital of
the company was limited to £1,200,000. This amount may not be
increased without authority from Parliament.

Norwich. Amount limited to £264,000 by act of Parliament
and may not be changed except in the same way.

PUBLIC SUPERVISION. 437

D 22. Give statutory provisions regarding issuance of bonds (loan

capital). See also D 25.

Municipalities. The Act of 1870 empowers local authorities
to borrow upon the credit of the local rates — the taxing power —
and to mortgage the rates, provided the sum borrowed shall not
exceed the amount sanctioned by the Board of Trade, and provided
the duration of the loan be not greater than 30 years (see D 25
below). The orders or acts usually confer also the power to mort-
gage the undertaking as well as the rates. The payment of prin-
cipal and interest may be enforced by the appointment of a re-
ceiver or judicial factor.

Glasgow. Loans to the amount of £2,700,000 have been au-
thorized, £1,400,000 by acts of Parliament and £1,300,000 under
provisional orders. The security for these loans is the tramway
undertaking, its revenues, and the property and income of the
"Common Good"; there is no power to fall back upon the rates.
If any part is paid off by means other than the sinking fund, it
may be reborrowed.

Manchester. Since the origin of the undertaking, power to
raise capital by loans has been given by special acts of Parliament
and by provisional orders under the Act of 1870. Since 1897
when public operation was decided upon, loans to the amount of
£1,925,000 have been authorized up to the end of 1904-5. The
security is the undertaking, its revenues and the local rate. It
should be noted that as current is purchased from the electric
lighting department, no capital has been authorized or raised for
electric power stations, etc. In Glasgow, the tramway department
has its own power stations.

Liverpool. Conditions are similar to those in Manchester.
Since purchase by the city £1,370,000 in loans have been authorized.

London C. C. The London County Council obtains its pow-
ers of raising money for capital expenditure for all purposes by
means of an annual Money Act passed by Parliament. This act
confers power to raise money by the issue of stock and temporarily
by bills or temporary loans. It prescribes the conditions under
which money may be raised and the provisions for repayment of
debt, limiting the amount which may be expended for each pur-
pose within the financial period covered by each act. The financial
period is a period of 18 months, comprising the financial year from
April 1 to March 31, and the following 6 months ending September
30. The powers of expenditure conferred for "the following six
months" are tentative powers only, and are superseded by the pow-
ers conferred for the year by the following Money Act. This is
necessary because the financial year ends on March 31, and the act
which confers the power for the next year is not passed by Parlia-
ment until July or August.

All money raised has to be repaid within periods approved by
the Treasury, not exceeding 60 years. There are no further lim-
itations upon the amount of debt which the Council may incur, but

438 NATIONAL CIVIC FEDERATION.

each year the matters come under the review of Parliament when
the annual Money Bill comes up for consideration, and the Council
is required to present with the bill a series of tables giving partic-
ulars (inter alia) of the debt of the Council.

London United. ISTo statutory provisions except those in the
general acts relating to all companies, which are of no importance
here. There is no limit to the amount that may be issued. Mort-
gages shall not be a charge upon the undertaking when taken over
by the municipality.

Dublin. Ditto. The amounts were limited in the early acts,
but are not at present.

Norwich. The amount to be raised by mortgages is restricted
to one-fourth of the paid-up capital stock. They shall not be a
charge upon the undertaking if purchased by the city.

D 23. Give statutory provisions regarding use of income or any

portion thereof.

Municipalities. The Act of 1870 provides that when all
charges shall have been paid, the amount remaining shall be ap-
plied to the purposes for which the local rate may be applied.

Glasgow. The above is not applicable here ; none may be used
to relieve taxation directly. Borrowed moneys must be used to pay
costs, charges and expenses of obtaining Parliamentary authority,
purchase of lands, construction of works, and then general pur-
poses, but not for purposes to which revenue should be applicable.
Manchester. Eeceipts must be used in the following order:
(1) To pay working expenses and rents; (2) to pay interest and
sinking fund payments; (3) to provide, if it is thought fit, a re-
serve fund by investments in securities to meet deficiencies or ex-
traordinary claims; (4) to put to the credit of the local rate so
much as may not be needed, in the opinion of the council, for car-
rying on the undertaking.

Liverpool. Eeceipts must be used, according to the Act of
1897: (1) To maintain tracks and paving in good repair; (2) to
pay working expenses and all items properly chargeable to revenue ;
(3) to pay interest; (4) to pay sinking fund charges; (5) to pro-
vide a reserve or renewal fund or a suspense account, or for the ex-
tension or development of the undertaking, or to add to the sink-
ing fund; but until 1912, no surplus shall be paid to the credit of
the rates. In 1902, the last clause was amended so as to authorize
the transfer of net profits in excess of £30,000 to the relief of rates,
provided the amount in any one year shall not exceed one-third of
the net profits.

London C. C. Profits over and above all charges may go to

the reserve or general county fund.
Companies. None.

D 24. Give statutory provisions regarding depreciation.
Xone in any case, but see answers to D 23 and 25.

PUBLIC SUPERVISION. 439

D 25. Give statutory provisions regarding sinking funds.

Municipalities. The Act of 1870 provides for loans upon cer-
tain conditions. One of them, as stated above under D 22, is that
the loan shall be repaid within 30 years. It further requires that
the period of repayment shall be approved by the Board of Trade
and that the method of repayment shall be by equal annual install-
ments or by setting aside annually as a sinking fund such a sum
as will be sufficient, including the interest thereon when invested
in government securities, to pay off the loan within the time speci-
fied. The periods usually sanctioned by the Board of Trade are:
Permanent way and buildings, not over 30 years; electrical equip-
ment, not over 20 years; cars, not over 15 years. Sometimes an
equated period for the whole amount is fixed.

All loans made under the Local Loans Act, 1875, must be
repaid within the time specified (a) by annuity certificates for the
period, (b) by the payment of a certain number of debentures
every year, equal annual installments, (c) by the annual appropria-
tion of a fixed sum, or (d) by a sinking fund. Where the last
method is in operation, such yearly or half-yearly sums shall be
set aside and accumulated at compound interest as will be sufficient
to pay off within the prescribed period the whole of the loan. The
funds shall be invested under the direction of the Local Government
Board in such securities as trustees may invest in or in securities
issued under this act. If any part is invested in the securities of
the local authority or is applied to paying off any part of the loan
before it is due, the interest thereon shall be paid into the fund.
The local authority must make a return to the Local Government
Board within twenty-one days from the end of the year showing
the amount invested, the amount applied, the character of the in-
vestments, etc. If it appears that the local authority has not com-
plied with the law, the Board may direct that the amount in de-
fault be raised, invested or applied, as the case may be.

Glasgow. In lieu of the first paragraph above, the city is
required to set aside not less than 2 per cent, of the amount bor-
rowed, less sinking fund, as upon May 31, 1905, to be accumulated
with interest at not less than 3 per cent, until it equals the amount
borrowed and unpaid. Prior to the passage of this act in 1905,
each authorization had been accompanied with specific conditions
as to the period of repayment and sinking funds.

Manchester. The terms of the loans authorized by the special
acts and provisional orders relating to the old horse car lines were
either fixed by Parliament in the acts or by the Board of Trade.
All but a very small amount have now been repaid. The recent
acts regarding the present system have contained clauses of which
those of the Act of 1904 are typical. They fix the limit of the
loan for construction of the lines then approved at 30 years, for
costs and expenses of the act at 5 years, and for other purposes
such a period as the Board of Trade may determine under the 1870
Act not to exceed 50 years. The last two clauses are practically

440 NATIONAL CIVIC FEDERATION.

the same in all of the acts, but the first varies, the period being 40
years in three acts and 50 years in one for street widenings.

Liverpool. The periods for repayment have always been fixed
by statute or referred to the Board of Trade, the most of them hav-
ing been for 30 years. The period of the loan for the purchase of
the undertaking of the private company was 30 years and for
reconstruction, extensions, etc., 25 years.

London C. C. All money raised by the Council has to be re-
paid within periods approved by the Treasury, not exceeding in
any case 60 years. The periods adopted with regard to tramways
expenditure are as follows: For purchase of undertakings (ex-
cluding horses, rolling stock and other short-lived equipment) and
for land and buildings, 60 years; for horses and rolling stock for
horse traction and for reconstruction of lines for electric traction,
equipment of machinery, etc., 25 years.

Companies. No requirements in any instance.
D 26. Give statutory provisions regarding profits and dividends.

Municipalities. There are no limits, except as stated under
inquiries D 23.

London United, Norwich. None.

Dublin. None, except that dividends may be paid only out
of earnings.

D 27. Give statutory provisions regarding compensation for fran-
chises.

In a sense all of the restrictions and limitations under which
the companies are operating are in compensation for the franchises
they hold, but the inquiry evidently has reference rather to the
direct payments or equivalents in service rendered to local authori-
ties.

Municipalities. This inquiry is applicable only to those cases
where' the city is operating in areas outside of its boundaries, as in
Glasgow, Manchester and Liverpool, or where the road authority
is separate and distinct from the tramway authority, as in London.

Glasgow. The city pays little directly, except in Govan and
Paisley, for the right to operate lines in outside areas. The pay-
ment to Govan amounted in 1904-5 to £5,080, equivalent to the in-
terest and sinking fund charges on the cost of the lines, plus cer-
tain minor fees. This can hardly be called a payment for "fran-
chise," for it is not more than a fair rental for the physical prop-
erty. Glasgow would doubtless have to pay as much if it owned the
lines instead of renting them. The agreement with the private
company in Paisley, where Glasgow has running powers over one
line, calls for the payment to the company of the net profits of the
traffic, amounting in 1904-5 to £915, so that this cannot be con-
sidered in the nature of a franchise payment. Indirectly the out-
side areas get some compensation through such provisions as that
one which requires that fares shall be no higher than in the city
proper.

PUBLIC SUPERVISION. 441

Glasgow has been required to do some street work and bridge
building within and beyond its own boundaries, but how much it
amounts to in all and how much could be called payment for the
right to operate, I could not ascertain satisfactorily. The paving
requirements in a sense are a quid pro quo, for the paving on the
portion of the road occupied by the tramway in outside areas is
better than on the rest of the highway and on adjacent roads. But
as the department must pave the same portion of the street within
the city, it is not compensation in the fullest sense.

Manchester. The paving requirements are the ordinary ones,
and the department has been called upon to widen certain streets
and rebuild certain bridges. Eegarding both these matters, the re-
marks made in the preceding paragraph apply. In one instance,
viz., the purchase of the old Infirmary site in the center of the city,
the cost to the department is known. Part of the land acquired for
£400,000 has been added to the streets, and the tramways depart-
ment is paying the interest, sinking fund and other charges upon
£100,000, although the capital account has not been debited with
the principal. This arrangement is not under statute, but the re-
sult of a decision adopted by the city itself.

As already stated, Manchester leases lines from a number of
outside local authorities and in 1904-5 paid £10,000 rental. So far
as I can ascertain, this item was not much in excess of what the
city would have had to pay if it had owned the lines and if they had
been within its own area.

Liverpool. Litherland is the only outside area in which the
city owns lines. The usual paving clause is in force. The lines
in Bootle belong to that borough, and the rental paid is probably
not more than what Liverpool would have to pay if it owned the
lines. The fares must be the same as in Liverpool, but this is only
an indirect benefit if it is one at all.

London C. C. Under the law the approval of the borough
council, in whose areas the lines are to be, must be had before
the lines are authorized. Therefore, if the borough council will
give its consent only upon agreement that certain work be done or
that certain conditions be accepted, the County Council must de-
cide whether it will yield or drop the project. The terms com-
monly exacted so far have had to do with street widenings, paving
of areas beyond the customary 18 inches and bridge reconstruction.
In most cases of street widening, the principle has been to make
the tramway department pay the whole cost, if the work was clone
wholly for the purpose of allowing the tramways to pass, and to
apportion one-third of the cost to the tramways, one-third to the
general funds of the county and one-third to the borough, if the
street was to be widened partially to facilitate the normal street
traffic and partially to provide for tramways. Apparently most
of the street widenings have come under the latter head, for ac-
cording to the Comptroller of the County Council, 19 street im-
provements had been authorized by the Council up to March 31,
1906, which are estimated to cost' £1,055,153, of which £363,653

442 NATIONAL CIVIC FEDERATION.

are to be paid by the tramways department; £89,349 have already
been charged but not entirely allocated. I have not been able to
secure a satisfactory estimate of the cost for bridge widening and
extra paving. In Schedule IV, inquiry K 3, the total amount
spent for street widenings and bridge alterations upon the South-
ern system and for outlay not allocated is given as £104,140.

London United. Inasmuch as companies and municipalities
alike are generally required to pave the portion of the street be-
tween the tracks, between the rails and 18 inches on either side,
this ordinary requirement may be omitted from a consideration
of franchise compensation, as has been done above. But this com-
pany is obliged to do more, as shown under D 12, paragraph III.
It is impossible to give an estimate of the cost of this extra work,
for the expense, either for capital outlay or current repairs, is not
kept separate from other paving and street construction charges.

Several of the local authorities have been authorized to run
cars upon the company's tracks to convey refuse and road materials
and for other sanitary purposes from midnight to 5 or 6 A. M.
If electric current is furnished by the company, it must be paid for.
This proviso appears in most of the acts now passed by Parlia-
ment, and where a municipality is operating in outside areas the
local authorities in those districts have the same rights that they
have under a company. Further, within the municipal areas, either
by statute or agreement this privilege has been accorded to other
departments so that it may be omitted from consideration here.
Little use has been made anywhere of the privilege.

A considerable number of the acts contain clauses reserving
to the local authorities the right to use the standards free of
charge to support electric light wires and lamps. In one instance,
the privilege of using them as sewer ventilators is reserved. So far
as I could learn, not much use has been made of this power and its
value is not great.

The principal form of compensation is the widening of streets
at the expense of the company. The acts passed prior to 1898
contained practically nothing of this nature, but since that date
nearly every one has specified certain work to be done. The ex-
penditure up to the end of 1905 for this purpose was £645,000,
according to the accounts of the company, and it is estimated that
another £100,000 may be necessary to complete the work authorized.

Certain annual cash payments have also been exacted by some
fourteen authorities in bills passed since 1898. Usually they
recite that in view of the deferrment of the1 date of purchase to
25 or 30 years from date (the general law says 21 years), the com-
pany agrees to pay £ per annum in quarterly installments,

beginning when the line is opened in some cases and in others when
the bill becomes a law. In certain instances the payments are the
same throughout the period, in others they increase periodically.
During 1905, the company paid £1,630 under this head — called
"wayleaves" in the accounts — many of the statutory requirements
not yet having become operative. In 1899, the amount was £350,

PUBLIC SUPERVISION. 443

and it will gradually increase until it reaches about £5,600 in 1918.

In two cases, the company agreed to pay certain amounts
(£300-£ 500 in one instance and £100 per mile in another) in order
to get the consent of the local authority.

In addition, there are several minor clauses, each applicable in
one district, as follows : The company shall allow the local author-
ity to lay a telephone wire for fire alarm purposes in its ducts,
if so requested; shall erect, light and maintain at 20 places an
electric lamp of such a character and height as required by the
council, to be lighted as long as the cars run; shall erect two such
lights in each of two other areas and one in a third; shall pay
£1,000 for certain purposes; shall provide, erect and maintain
clusters of electric lamps in three places; shall pay £1,000; and
shall fill up three ponds on the village green.

Dublin. According to the reports of the company, it has
borne the cost of widening a street to the extent of £7,000 — a con-
dition imposed by a local authority before giving its consent to a
further grant of powers — but this is the only case of its kind. In
addition to the usual paving requirements, the Compaq has been
required to pave the whole of one street for a distance of 2 miles
at a total cost of £10,032, according to the company. It must also
maintain this paving, but the cost of repair is said to be small.
Additional paving is also required in front of certain buildings
(see D 12, paragraph III above), but I am unable to give an
estimate of the cost for construction or repair.

The acts do not so specify, but there are agreements between
the company and the local authorities, made to obtain the consent
of the latter to the passage of the acts, calling for annual payments
either as a lump sum or as so much per mile of street occupied.
In 1905, they amounted to £14,567. The capital account of the
company also shows an item of £9,183 consisting of payments to
local authorities to obtain their consent.

The road authority may use the company's tracks from mid-
night to 7 A. M. for the conveyance of coal, refuse and road mate-
rials by horse cars. The cars used must be approved by the engineer
of the company, but if he objects appeal may be taken to the Board
of Trade. This clause is quite general both in municipal and
company undertakings. No advantage has been taken of it, but
the city is preparing to do so.

Norwich. When the company was created, it was empowered
and required to widen certain streets and to lay out two new streets.
All of the work was to be entirely in its hands, and it was to pay
two-fifths of the cost, three-fifths being borne by the city. For
this purpose the company has spent £44,000, which is to be paid
by the city if it buys the undertaking, less an amount equal to
what a sinking fund would accumulate at 3 per cent, on a 50 year
basis from 1897 to the date when the city purchases (see D 8,
paragraph IX, above). The paving to be done above the usual
18 inches is the space between the rails and the curb wherever the

444 NATIONAL CIVIC FEDERATION.

distance is less than 3 feet. The length of street to which this
applies is estimated to be about a mile.

After 21 years, the company shall pay to the city one-half of
the surplus profits over 7 per cent, on the ordinary stock, and if
any difference of opinion arises between the company and the city
regarding this provision, it shall be settled by an arbitrator ap-
pointed by the Board of Trade. The company shall allow the city
to use the tracks without charge for the conveyance of refuse and
road materials between midnight and 6 A. M., but if any current
is taken it shall be paid for. So far no advantage has been taken
of this provision. The city also may use and does use the stand-
ards for electric lighting purposes. No cash payments are made for
"wayleaves."
D 28. Give statutory provisions regarding audit of accounts.

Glasgow. The English law as given below does not apply, but
the statutes require that the city shall appoint auditors annually
who shall not be officeholders but skilled in accounts, and also fix
their compensation.

Manchester, Liverpool. The accounts of English boroughs
must be submitted to three auditors. Two are elected annually
by the ratepayers, and the third is appointed by the mayor. The
elective auditors may charge two guineas per day for their services,
under the Public Health Act. The mayor's auditor is unpaid. The
elective auditors must be qualified to be members of the town coun-
cil, but must not be members or officials of the council. The mayor's
auditor must be a councillor. They have no power to charge an
officer with an item illegally expended and order that he pay it.
They can only report what they find and appeal to the public or
the city officials to take action. Most of the large boroughs also
appoint trained accountants as auditors, although not required to
do so by law.

London C. C. The auditor is appointed and removed by the
Local Government Board, which fixes his salary, prescribes his
duties and directs his activities. He has power to disallow any item
of expenditure and direct the disbursing officer to make it good,
subject to appeal from his decision to the Local Government Board.
Payment by the L. C. C. for his services is made in the form of
a stamp duty which varies according to the sum total of the expen-
ditures audited.

Companies. None, except that auditors are to be appointed
by the shareholders.

D 29. Give statutory provisions regarding publicity of reports
and records.

Municipalities. Separate accounts must be kept for the tram-
way undertaking.

London United. None, except that the light railway orders,
which apply to but a few lines, require that the company must keep
its accounts in the form prescribed by the Board of Trade and
shall make such returns as the Board shall require.

PUBLIC SUPERVISION. 445

Dublin. Some of the early acts provide that the company
must produce its books, records, etc., for the inspection of any
one appointed by the city. The recent acts are silent upon this
point.

Norwich. None, except that city may inspect accounts to as-
certain the accuracy of the apportionment of the profits after 21
years, as provided above.
D 30. Give statutory provisions regarding settlement of claims

for injuries or death. None.

D 31. Give statutory provisions regarding salaries paid. None.
D 32. Give statutory provisions regarding wages to day laborers.

None.
D 33 v Give statutory provisions regarding hours of labor of day

laborers. None.
D 34. Give statutory provisions regarding employers' liability.

See answer to inquiry D 34 under Gas, which applies here.
D 35. Give statutory provisions regarding pensions to- employees.

Glasgow. See inquiry D 35 under Gas. Contributions may be
made to the funds of any friendly society, or superannuation, prov-
ident, or other fund for its employees, and the employees may be
required to contribute.

Manchester. See inquiry D 35 under Gas.

Liverpool. See inquiry D 35 under Electricity.

London C. C. A scheme has been framed under the General
Powers Acts of 1891 and 1892 by the County Council. See dis-
cussion in Schedule II.

Companies. No statutory provisions in any instance.
D 36. Give stautory provisions regarding strikes. None.
D 37. Give statutory provisions regarding citizenship of em-
ployees. None.

D 38. Give statutory provisions regarding conditions under which
employees labor.

None, except the general provisions in such acts as the Fac-
tories and Workshops Acts, which apply equally to municipalities
and companies.

D 39. Give statutory provisions regarding other important mat-
ters.

The Act of 1870 contains several sections providing for the
use of tramways by competing companies, which were thought to be
of some value, but evidently they have proved useles?. Briefly
summarized, they authorize the local authority or 20 inhabitant
ratepayers of the district to appeal to the Board of Trad 3 any
time after a line has been opened three years and represent that
the public are deprived of the full use of the tramway. L'f the
Board concludes that such is the case, it may license a new com-
pany or a person to run cars for not less than one year nor more

446 NATIONAL CIVIC FEDERATION.

than three years, with possibility of renewal, under such restric-
tions as to the number and kind of cars to be run, the rental to be
paid for the use of the lines, etc., as it wishes to impose.'

D 40. What means have been provided for the enforcement of
the above provisions?

D 41. Are they adequate? D 42. Give defects.

I. The various remedies for enforcing statutory regulations
may be grouped into four classes, viz., judicial, legislative, admin-
istrative and "extra-legal." The first class includes the well-imotvn
remedies applied through the courts, and its scope, advantages and
defects have been stated in answer to inquiries D 40, 41 and 4? — I,
under Gas, q. v.

II. The second class of remedies — administrative — is much
more comprehensive than in the case of gas undertakings and
quite closely resembles those adopted in the electric lighting acts,
as will be seen when a comparison is made of the data under in-
quiries D 44 for Gas, Electricity and Tramways. The central
department having most to do is the Board of Trade; the others
of less importance are the Postmaster General, the Local Govera-
ment Board, the Secretary of State and the Treasury. The central
supervision over sinking funds and loans (see D 22, 25 and 44 —
II, III) is quite effective. As the same principles apply here as
in the case of Gas Works, the reader may be referred to inquiries
D 40, 41 and 42 — II under Gas for a discussion of the advantages
and disadvantages of this control as a remedy.

The Board of Trade has larger powers over tramways than
any central department has over gas undertakings and about the
same powers that it has over electric supply works. This is due
to the fact that when the Gas Acts were drafted central control
was in an embryonic stage and its utility not generally admitted.
By the time tramways were first widely promoted — in the seven-
ties— the desirability of central supervision had been demonstrated
and it was introduced in the very first horse tramway acts. When
mechanical power came to be considered practicable and later
when electric traction was mooted, this supervision was extended
to correspond roughly to the authority given to the central govern-
ment over electric supply undertakings.

The powers are so broad that so far as the safety of the public
is concerned they apparently provide adequately for the enactment
of proper regulations and safeguards. But what may be done in
case of disobedience of statute or ordinance ? The duty of enforce-
ment is largely handed over to the private individual and Lhe local
authority upon the theory that if neither is sufficiently affected
thereby to induce him to act, the disobedience cannot be so harmful
as to call for any action. The Board of Trade has no adequate sys-
tem of inspection of its own to discover illegal acts or delinquen-
cies. It does not even have the power to audit the accounts of com-
panies or to revoke either in part or in whole the powers of a com-
pany or a municipality, as it has in the case of electric supply un-

PUBLIC SUPERVISION. 447

dertakings. The general attitude of the Board seems to be that
its work is done when it has issued its decree. In those cises where
its approval must be had to validate an act, the remedy is largely
self-acting, for the fear that the act may be questioned at any time
and that financial loss may result is a strong deterrent force.

The system of local administrative control is quite Jimited.
In the case of municipal plants the town council is the ultimate
source of authority, and although of course an appe-al may be
taken at any time from the action of a subordinate to a higher
official, and finally to the town council, there is no established,
legalized method of procedure. It is all more or less informal, and
any change in the policy of the council must be brought about by
persuasion or the election of other members. The powers of the
local authorities over private companies are set out unier D 46,
from which it will be seen that their powers are greater than in the
case of gas plants or electric supply works, but not of great im-
portance or efficiency when one considers all of their limitations.

III. Upon the subjects of legislative and extra-legal remedies
and the efficiency of all remedies when taken as a unit, the reader
is referred to inquiries D 40, 41 and 42, subheads III, IV and V
in the Gas Works Schedules, as the principles there stated apply
to tramways as well, barring of course the illustrations which are
not applicable.

D 43. If judicial or administrative orders have been issued by
central authorities relative to electric supply undertak-
ings, state them, and give source and date of issue.
None of importance, except those referred to under inquiries

A 5-8, D 22, 25, 44 and 48.

D 44. If any central board, commission or other authority has
control or supervision as regards tramway undertakings
give statutory provisions relating to its powers and func-
tions.

I. There are five departments of the central government that
exercise some sort of control : The Postmaster General, the Local
Government Board, the Secretary of State, the Treasury, and the
Board of Trade. The powers of the Postmaster General have for
their object the protection of the telegraph and telephone lines
under his jurisdiction. Consequently they have come into being
principally since the electrification of tramways. Under the
clauses usually incorporated in acts and orders, notice of all elec-
tric work to be done within ten yards of a telegraphic line, except
repairs, must be served in due time upon the Postmaster Gener.il,
specifying the character of the line to be laid, work to be done, etc*
In all this work, the regulations adopted by the Postmaster Gen-
eral to prevent injury to his lines and interference wiMi their
working must be obe.yed; and if any of the lines are injuriously
affected, the undertaking must bear the expense of the alterations
necessary to remedy the injury and to prevent its recurrence.

448 NATIONAL CIVIC FEDERATION.

II. The Local Government Board and the Secretary of .State
have practically the same powers relative to the acquisition of dwell-
ings occupied by workingmen; the former outside of London, the
latter within. The provision ordinarily inserted in the statutes is
that ten (or twenty) or more houses occupied by laborers may not
be taken without the consent of the Local Government Board or
the Secretary of State. This clause did not appear in the early
tramway acts, for the housing question was then not so vital as
at present, but in recent years it is seldom omitted wherever con-
siderable property is to be acquired. In the acts relating to Lon-
don, the restriction is more severe. The taking of ten houses is
prohibited in certain statutes unless a scheme for the rehousing
of the persons displaced has been approved by the central authori-
ties ; and in a few, the acquisition of as many as twenty houses has
been prohibited absolutely. In Dublin, the Local Government
Board for Ireland has jurisdiction and where ten or more houses
are to be removed, a rehousing scheme must be approved. There
is apparently no difference between companies and municipalities
on this score.

The Local Government Board has jurisdiction also over sink-
ing funds under the Local Loans Act of 1875, as set forth under
inquiry D 25. The only undertaking whose accounts are audited
by Local Government Board auditors is that of the London County
Council (see D 28).

III. The functions of the Board of Trade are much more
numerous and varied. A complete list in all detail would fill
pages, and a reading of tlje statutes is necessary to define its pow-
ers fully. Only the more important ones need be mentioned here,
and those of general application will be given first.

The approval of the Board of Trade must be obtained for all
plans for construction work, including power stations, track con-
struction and street work, materials to be used, etc. ; of the style
of rails to be used ; of all changes in method of traction, particu-
larly mechanical traction; of the ordinances issued by the local
authorities relative to tramways; of the substitution of double for
single tracks ; of working agreements with other companies or local
authorities; of the purchase of undertakings by public authorities
(see D 8 — IV, VI) ; of the transfer of powers or property from
one company to another (D 2) ; of the borrowing of n\oney by
municipalities outside of London; of the period of the repay-
ment of loans by municipalities (D 25) : etc. In the case of the
L. C. C. the terms of loans are fixed by the Treasury and not by
the Board of Trade. When the system or an extension has been
completed, it must be inspected by the agents of the Board and a
certificate issued that it is fit for use before it may be opened for
public traffic.

The Board of Trade appoints a referee to determine the value
of an undertaking in case of compulsory purchase under the Act
of 1870 when the city and the company cannot agree (see D 8 — II) ;
issues orders terminating the powers of an insolvent company

PUBLIC SUPERVISION. 449

(D 8 — V) or those relating to a discontinued line (D 8 — VI) ;
appoints an arbitrator to settle disputed questions; regulates the
service of workmen's cars upon appeal (D 15 — III) ; revises rates
of charge upon appeal (D 15 — V) ; may extend the period allowed
for construction (D 12 — IV) ; may license a competing company
or person to use the tracks operated by another company, if it de-
cides, upon appeal, that the public is being deprived of the full
use of the tramway, and determine the restrictions and conditions
under which the licensee shall operate (D 39) ; may make inquiry,
upon appeal, as to the maintenance and repairing of the track and
paving (D 16), etc.

The Board of Trade also issues, rescinds and amends regula-
tions for the protection of the public health and safety from dan-
gers arising from the use of mechanical traction, and for the pre-
vention of fusion and electrolytic action; and may likewise regu-
late the use of signals, the emission of smoke and steam, stopping
places, entering and leaving cars, etc. Although the regulations
for each undertaking usually differ slightly from those in force
in another place, the subjects dealt with are practically the same
when the method of traction is the same. They relate to the kind
of brakes, speed indicators, number of cars, fenders, signal bells
or whistles, head lights, trailers, coupling of cars, speed upon each
line and section (usually limited to from 6 to 10 miles per hour),
the insulation of wires, safety fuses, difference of potential (not
to exceed 500 volts usually), distance apart and height of stand-
ards, kind of electrical conductors, guard wires, stopping places,
etc.

The powers of the Board of Trade relative to the granting of
provisional orders are given and discussed in the special report on
legislation in Great Britain.

IV. Besides these general provisions, there are certain other
special powers, as follows:

Glasgow, London C. C. The Board of Trade may require the
department to adopt such improvements, including a new style
of rail, as it may consider necessary for public safety or advan-
tageous for ordinary traffic.

London United. The Board of Trade may prescribe the form
of accounts, require reports to be made and order the adoption of
improvements under certain conditions (see D 14).

Dublin. Similar provisions to those in force in Glasgow in
a few early acts (see D 14).

Norwich. The Board was to be the judge of whether sub-
stantial progress had been made within the time specified (D 12 —
IV), and may appoint an arbitrator to determine whether stor-
age batteries or accumulators are advisable (D 14).
D 45. What have been the effects of this supervision?

450 NATIONAL CIVIC FEDERATION.

its existence or the manner in which it is exercised. This is also
largely true of the supervision of the Board of Trade and the
Local Government Board over loans and sinking funds. Munic-
ipalities insist that the periods of repayment are too short in view
of the large expenditures for extensions and renewals they claim
to have made out of revenue, and there are instances
of unnecessary severity, but generally speaking the supervi-
sion is not objected to by the municipalities and is considered a
wise and effective safeguard by the public. It may be unneces-
sary in many cases, but when needed it is a ready and effective
weapon against unwise action whenever and wherever it may ap-
pear.

II. The control of the Board of Trade over other matters has
called forth some adverse criticism. Perhaps it would be more
accurate to say that the decisions of the board have been criticised
rather than the system of supervision, for it seems to be quite
generally recognized that there must be some sort of central con-
trol; otherwise an occasional company or municipality might not
safeguard the public welfare with sufficient care. There is not
much need of the control if a plant is well equipped and managed,
but the system exists to reach the negligent or careless, and at the
same time not to retard the efficient. «

The principal ground of criticism is that the board has been
too conservative, too cautious, too reluctant to allow the adoption
of new methods. In its solicitude for the safety of the public,
it has retarded the growth and extension of tramways. The speed
restrictions particularly have been condemned as too severe, and
it is currently reported that they are at times disobeyed. Ten,
twelve or sixteen miles an hour in country districts is an absurd
limit, especially in view of the fact that the law allows automobiles
to go twenty miles an hour even in the crowded districts of Lon-
don. It is also urged that experiments are too much opposed and
that greater latitude should be allowed where a new form of trac-
tion is being considered. At present the attitude of the Board is
more favorable to progress and growth than in the past. Higher
speeds are being allowed, and there appears to be less criticism
than formerly.
D 46. What powers of supervision do the local authorities possess ?

This inquiry applies to those municipalities where lines are
being operated by outside authorities, where the supervisory author-
ity is separate and distinct from the tramway authority and
where the tramways are in the hands of companies.

In such cases the local authority may appeal to the Board of
Trade for an adjudication when the company is thought to be
insolvent (see D 8 — V), when lines have been discontinued (D
8 — VI), when the service of workmen's cars is unsatisfactory
D 15 — III), when a revision of the rates of charge is considered
necessary (D 15 — V), and when the track or paving is in bad re-
pair (D 16). When streets are to be torn up, notice must be
given to the road authority seven days in advance; the work must

PUBLIC SUPERVISION. 451

be done under its superintendence and to its reasonable satisfac-
tion; the expenses of such superintendence must be paid; and a
limit is fixed to the amount of road which may be torn up at any
one time and the time it is up, except with the consent of the road
authority. The local authority also may pass ordinances regulat-
ing the rate of speed, headway, stopping places and traffic on the
streets in which tracks are laid, provided they do not annul or
conflict with the statutes or the regulations enacted by the Board
of Trade, and provided the penalties do not exceed £2 for each of-
fense. The local authority further may license tramcars, drivers,
conductors, etc. Indirectly, considerable influence may be brought
to bear when the time approaches at which the city may purchase
the lines (D 8 — I, IX), but of course this is not often and usually
some distance in the future. The local authority may also oppose
the granting of new powers; this point is considered in the report
on legislation in Great Britain.

The above provisions are those generally applicable. Although
in force in outside areas even where the systems are municipally
operated, they do not apply within the city areas of the munici-
palities here considered, except in London, for there the same au-
thorities have jurisdiction over roads and tramways. In London,
the ordinance power of the road authority has been given to the
Board of Trade, licenses are issued by the Commissioner of Police
and the boroughs have no powers of purchase in any event, so that
after all London is nearly on par with the other towns.

The special provisions applicable to single undertakings are:

London C. C. The overhead trolley may not be used, and posts
or wires may not be placed in the streets without the consent of
the road authorities — the boroughs. The approval of the local au-
thorities must be obtained for all working agreements operative in
areas outside of London.

London United. As in several other instances, the clauses
vary greatly according to the district in which the lines arc lo-
cated. Those most frequently found are: The plans of all work
must be submitted for approval to the local authorities, but ap-
proval may not be withheld unreasonably; the location of stand-
ards, wires and brackets to be placed in the streets must be ap-
proved by the local authorities ; the lines shall not be used for the
conveyance of animals or goods except under regulations approved
by the local authority. In isolated cases, the following are in
force: The designs of cars, standards, etc., must be locally ap-
proved; the color which is used to paint the poles, standards, etc.,
must be approved by the county surveyor; center poles may not be
used without consent; center poles may not be used at all; the
local authority may condemn any rolling stock or any part of the
tramways which it considers unfit for use, dangerous to the public
or in a bad state of repair ; the local ordinance power shall include
the right to regulate fares.

452 NATIONAL CIVIC FEDERATION.

Dublin. Style of standards must be approved by the engi-
neer of the road authority and painted as he directs. The road
authority may also direct how and where fixtures to be placed in
or over the street shall be located.

Norwich. All wires, poles and supports shall be of a design
and so erected as approved by the city. The poles shall be painted
in the manner and as often as required by the city. The cars must
be repaired and painted to the satisfaction of the city. No adver-
tisements shall be affixed to the poles or cars without the city's
consent, and as a condition of such consent the city has obliged the
company to agree to pay one-quarter of the revenue from adver-
tising up to £600 and one-half of all over this amount. Appeal
may be taken to the Board of Trade to compel the introduction of
storage batteries or occumulators (D 14). The number of direc-
tors shall be 4 at first, and the company may increase the number
to 7; but the number shall never be less than 3 or more than 7.
One of the directors, elected by the other directors of the company
subject to the approval of the City of Norwich, shall be a person
on the roll of the citizens of Norwich; the mayor may appoint in
case the directors of the company fail to agree.
D 47. What provisions has the city made for the exercise of its
powers of supervision?

All seem to have taken advantage of the powers conferred and
the proper officials have been appointed to look after the execution
of the provisions.

D 48. Has the company resisted the enforcement of the legal
provisions providing for public supervision?

London United. No record could be found of any important
resistance. There is considerable distrust and a feeling that the
company has not acted as expeditiously as it might.

Dublin. Two cases have been tried before the courts, one
relating to the sanding of the track and the other to the altera-
tion of a street grade. In the former the position of the city was
upheld; in the latter, that of the company.

Norwich. A case is now before the courts regarding the main-
tenance of the junction of the paving done by the company and
that done by the city. The local court held that the company
should bear the burden, the higher court that the city should, and
a final decision has not yet been handed down.

D 49. What provisions have been found impossible of enforce-
ment, and why?

See inquiries D 40, 41 and 42.

ENGINEERING MATTERS
British Tramways
(Schedule III)

By NORMAN McD. CRAWFORD and J. H. WOODWARD

H 1. Data for year ending: Glasgow, May 31, 1905; Manches-
ter, March 31, 1905; Liverpool, December 31, 1905; Lon-
don C. C., March 31, 1905; London United, December
31, 1905; Dublin, December 31, 1905; Norwich, June
30, 1905.

DESCRIPTION OF PLANTS.

H 2. Give brief description of generating stations.

Glasgow. The whole of the energy required for operating the
tramways is generated at one central station situated at Pinkston,
about one mile from the center of the city. The site has been well
chosen and affords ample water for condensing, which is taken from
the Forth and Clyde canal running along one side of the station.
Sidings connect with the Caledonian and North British railways
by which coal supplies are delivered directly into bunkers just out-
side the boiler house, these having a storage capacity of some 4,000
tons. The main building consists of a steel framework with brick
screen walls. The boiler room, engine room and condenser room
are each 224 feet in length by 84 feet, 75 feet and 40 feet in
width respectively. The two chimneys are each 263 feet in height
above ground level. The 16 Babcock & Wilcox boilers are arranged
8 along each side of the boiler room. Each boiler is fitted with a
chain grate mechanical stoker, the coal being fed into these from
bunkers over the boilers, which are supplied by conveyors from the
outside bunkers, into which coal is directly delivered from the
railway trucks. Two fuel economizers placed in the main flues
heat the feed water before it is passed into the boilers.

The engine room contains four main steam dynamos supply-
ing three-phase alternating current. In addition there are two
smaller units supplying continuous current which is used for driv-
ing the auxiliary plant and supplying power and light to the car
depots during the night. All the above sets are of the slow-speed
type, the engines being of an exceptionally heavy design. Six small
steam dynamos are provided for exciting the main machines. A
very complete switchboard occupies the end of the engine room,

454 NATIONAL CIVIC FEDERATION.

from which the whole of the generators and outgoing feeders are
controlled. Two electrically driven 50-ton traveling cranes are
provided for handling portions of the plant when required.

The condenser room contains five sets of surface condensing
plant, one being connected to each of the main engines, the fifth
set taking care of the steam from the smaller sets and exciter en-
gines. A 30-ton electric traveling crane affords facilities for dis-
mantling this plant.

Space has been provided in the buildings for the addition of
further steam dynamos, but in view of the latest developments,
it is most probable that steam turbines will be erected in preference
to slow speed engines of the type already in use. The general
arrangement of plant is excellent and figures obtained in working
show high efficiency and economy.

Manchester. The tramways department has no generating
plant of its own, but purchases all energy required from the munic-
ipal electricity department, except for the leased lines in Mid-
dleton, Ashton-under-Lyne, Stockport and Stretford. In each
of these cases the local municipal electricity station supplies the
energy for the section of line in its respective district. The ar-
rangement between the tramways and electricity departments re-
garding the charges made to the former for the energy used is as
follows :

(a) A fixed annual charge per kilowatt installed to meet the
maximum demand for traction purposes, with addition of

(b) A charge of so much per unit supplied to cover the run-
ning expenses.

The fixed annual standing charge per kilowatt would be made
up of the following items:

(a) Interest and sinking fund in respect to moneys borrowed
by the electricity committee for the provision of land and build-
ings for generating station, boilers, engines, generators, high-pres-
sure switching gear, high-pressure mains, transforming plant, land
and buildings for transforming stations and low-pressure feeders
up to the trolley wires.

(b) The provision of a sum to be set aside each year as a
renewals fund, it being understood that the amount so set aside
shall be subject to the approval of the tramways committee.

(c) A proper proportion of the cost of coal and wages, which,
in strictness, constitutes a portion of the standing charges.

The charges per unit supplied shall be the actual cost of
generating the current with the addition thereto of a slight profit
of three per cent. The energy supplied shall be measured at the
substation end of the low-pressure feeders.

Liverpool. The tramways department has no generating
plant of its own, but purchases all energy required from the city
electricity department and from the municipal plant in Bootle.

London C. C. The power station for operating the system
was in course of construction. Energy for working the tramways

TRAMWAY ENGINEERING. 455

was purchased from several companies. The council has tempor-
arily installed two 1,600 K. W. alternating-current 3-phase steam
dynamos at the Deptford station of the London Electric Supply
Company and two 1,600 K. W. continuous current steam dynamos
at the Loughborough station of the South London Electric Supply
Corporation Ltd. The respective companies provide steam for
working these sets. Energy is also obtained from the City of
London Electricity Supply Company station at Bankside and from
a 300 K. W. dynamo at the council's Streatham depot, which is
driven by some of the old cable traction plant.

London United. The generating station is at Chiswick, al-
most at the eastern extremity of the area served by the tramways.
There is no connection with any railway system, and the use of
cooling towers has been adopted to enable the plant to run con-
densing, no other water supply being available. The buildings are
most substantial and of a more than usually ornate character. The
total capacity of the steam dynamos installed is 3,575 K. W.,
2,500 K. W. of this being alternating three-phase current, and the
remainder continuous current, which is supplied direct to the tram-
ways system. There is also a 500 K. W. rotary converter installed
at the generating station.

The engines are of the slow-speed type, direct coupled to tne
dynamos, and they exhaust into surface condensers. The boilers
are of the Babcock & Wilcox water tube pattern, fitted with Vick-
ers mechanical stokers supplied with coal from overhead coal bunk-
ers, which are filled by means of bucket conveyors carrying coal up
from hoppers into which carts discharge. There is an electrically-
driven traveling crane in the engine room for handling the plant.
High and low tension switchboards are provided for controlling
the machines and distributing current to the various feeders in
the substations.

„ Dublin. All the power required for operating the tramways
is supplied from a single station at Eingsend, which is well situated
for obtaining supplies of fuel and water for condensing purposes.
The buildings are of a substantial character and well designed for
their purpose. The boiler house is 150 feet by 80 feet, and the
engine room 180 feet by 80 feet. Two steel chimneys, each 220
feet in height, have been provided. Coal is brought by water and
transferred directly from ship by conveyor into bunkers.

The principal supply is given direct to the tramway system at
500 to 550 volts continuous current, but one generating unit is of
the three-phase alternating-current type for supplying rotary con-
verters situated in substations at the more distant points of the
system. The steam dynamos have a total capacity of 3,450 K. W.,
and in addition there are two 250 K. W. rotary converters which
act as a standby to the single alternating current unit. The sta-
tion was designed by the same engineer as the one at Glasgow, and
the arrangements generally are of the same character, but the units
are of smaller size.

456

NATIONAL CIVIC FEDERATION.

Norwich. The tramway company owns its own generating
station situated fairly in the center of the system. The buildings
are of a less elaborate character than those in Dublin and Glas-
gow, but are suitable for their purpose. The total capacity of the
station is 800 K. W., but provision has been made in the buildings
for a further 200 K. W. unit. There are no mechanical arrange-
ments for handling coal, and the boilers are hand fired. Water is
obtained for condensing from a river running alongside the end
of the station. The boilers are of the Babcock & Wilcox water-
tube type, and a Green's economizer is inserted in the flue for
heating the feed. The engines are of the horizontal tandem com-
pound type, running at 186 revolutions per minute, coupled direct
to Westinghouse dynamos. There is a hand traveling crane in
the engine room, capable of lifting 5 tons. A switchboard is pro-
vided with a panel for each of the generators, and for controlling
10 feeders. The whole of the supply is given direct to the tramway
system at 500 to 550 volts continuous current.

PARTICULARS OF GENERATING STATIONS.

Steam Engines.
Total

Boilers.1
Total

Dynamos.

Total

Undertakings. No. H. P. H. P. No. H. P. No. Type. K. W. K. W.

Glasgow 4 4,000

2 800
6 80

16,000 16 10,656
1,600
480

4 A.C.
2 B.C.
6 D.C,

2,500 10,000

600 1,200

50 300

18,080

11,500

London C C .

A. C.

1,600

3.200

D.C.

1,600

3,200

D.C.

300

6,700

London United..

. 2

1,500

3,000 11

4,000 2

A.C.

1,000

2,000

750

2,250 . .

A. C.

500

100

100 . .

D.C.

250

1,000

D.C.

5,350

3,575

Dublin

800

4,800 12

4000 1

A. C.

550

250

250 .,

D.C.

550

2,750

D.C.

150

5,050

3,450

Norwich

320

1,280 4

1,320 4

D.C.

200

800

15 ..

D.C.

7.5

1,295

807.5

H 3. Give brief description of substations.

Glasgow. High-pressure three-phase current is transmitted at
6,500 volts to 5 substations where the pressure is reduced by means
of static transformers to 330 volts. This is then supplied to rotary
converters, which deliver continuous current at 500 volts, which is

1 Boilers rated nt 30 Ins. per H. P.

TRAMWAY ENGINEERING. 457

fed into underground cables running to feeder pillars which in
turn are connected to the overhead trolley wires. All the static
transformers are of the single-phase type and of 200 K. W. ca-
pacity. Three of these supply current to each of the rotaries, which
have a capacity of 500 K. W. each. A small induction motor is
provided for starting up each of the rotaries and on the opposite
end of the shaft there is a small negative booster of 30 K. W. ca-
pacity. Complete switch arrangements are provided at each sub-
station for the high tension and low tension current, the high ten-
sion switches being of the remote control type. The substation
plant is erected in buildings which are attached to car depots. In
some cases old buildings have been adapted.

Manchester., Liverpool. None owned by department.

London C, C. High-pressure, three-phase current (6,500
volts, 25 cycles per second) is transmitted from Deptford and
Bankside to three substations where the energy is transformed by
motor generators to continuous current at 500/600 volts. Each
motor generator has a capacity of 300 K. W., the motor being of the
synchronous type, and is provided with a direct-driven separate
exciter. The exciters are used as motors for starting up the sets,
a supply of current for this purpose being provided at each sub-
station from a 60 K. W. induction motor-generator giving 125
volts continuous current. A static transformer reduces the 6,500
volt supply to low pressure for the 60 K. W. motor. Complete
switchboards are provided for the high and low pressure supply;
each low pressure feeder supplies half a mile of double track. Sub-
stations at Clapham and Brixton for the present receive low pres-
sure continuous current from the machines at Loughborough and
distribute this to the track. The Streatham substation has at pres-
ent a 300 K. W. dynamo driven by an old steam engine, and sup-
plies current for the reconstructed section previously worked as a
cable tramway. ' ',

London United. A small portion of the system is supplied
with current by underground feeders direct from the power station.
The more distant portions are supplied with current through sub-
stations, four of which have been erected for the purpose, and con-
sist of substantial brick structures adjoining car sheds. Static trans-
formers and rotary converters are used at all the substations, the
units being either of 250 or 500 K. W. capacity. Each rotary is pro-
vided with a small induction motor at one end for starting up and
with a continuous current negative booster. Suitable high and low
pressure switchboards are provided at each substation, together
with traveling cranes for handling the plant.

Dublin. Some of the outlying portions of the system are
supplied from three substations. These receive primary three-
phase current from the main generating station and transform it
by means of static transformers and rotary converters or motor
generators to continuous current at 500 volts. The substations are

458

NATIONAL CIVIC FEDERATION.

all situated at car depots and generally in buildings which were
used when the system was operated by horse traction.

Norwich. None are owned, current being supplied to the trol-
ley line direct by underground feeders from generating station.

Undertakings.

Glasgow

Manchester

Liverpool

London, C. C . . .

SUBSTATION PLANT.
Number of Size of Units.

London United.

Dublin

Units.
24

16
3

8
3

2
2
2

1
2

in K. W.
500

300
60

250
500

200

250

100

Total Total for
K. W. Undertakings.
12,000 12,000

4,800
180

2,000
1,500

400
120
100
250
200

Noi",vich

4,980

3,500

1,070

DISTRIBUTION SYSTEMS.

H 1. Underground lines.

On all systems the whole of the high pressure feeders, low
pressure feeders and negative feeders are laid underground.

Glasgow. The whole of the cables are laid on a draw-in sys-
tem, conduits having 3-inch diameter ways. Suitable manholes
(1,189 in number) are provided along the cable routes to enable
cables to be drawn in and out and inspected from time to time.
Both high and low tension cables are insulated with impregnated
paper enclosed in a lead sheath. The total length of ways provided
in conduits is 1,131,000 yards, these being laid in 128,700 yards
of trench. In addition to the power cables, telephone and test ca-
bles have been provided throughout the area covered by the system,
the total length of cable of all types amounting to 398.6 miles.

Manchester, Liverpool. All cables are the property of the
municipal electricity departments.

London C. C. The cables are laid on the draw-in system,
the conduits being of stoneware having 3£ inch diameter ways,
the total "duct" feet provided being about 1,000,000. High-tension
cables are of the three-core type, insulated with paper enclosed in
a lead sheath. The sectional area of the conductors is .075 and .15
square inch. The low-tension continuous current cables are of the
single-core type also insulated with paper and a lead sheath, the
sectional area of the conductors varying from .15 to .75 square
inch. The whole of the electrically operated lines are equipped on
the conduit system. The conduit is formed in cement concrete.
The depth from road level to the bottom of conduit is 2 feet, and
the internal width is 1 foot 4 inches. Both positive and negative

TRAMWAY ENGINEERING. 459

conductors are insulated from the earth, and consist of tee iron.
They are fixed 6 inches apart and at a depth of 12 inches from
road level to the centre of the conductors. The length of route,
all with double track, reconstructed for electric traction and in
operation at the end of the year was 26.625 miles.

London United. No detailed particulars were available. A
portion of the cables are laid on the draw-in system, the conduits
principally consisting of wrought-iron pipes lined with cement.
The other cables are laid on the solid system in earthenware troughs.
In making up our estimate as to the value of cables, we have al-
lowed a similar amount per mile of track to that expended in Glas-
gow, of which we were able to obtain complete detailed information.

Dublin. Detailed particulars were not available. The total
length of cable laid is about 188,000 yards, a portion of this being
three-core, high-tension cable for transmitting alternating current
to the substations, the remainder being single core low-tension cable
for feeders and returns. Most of the cable is drawn into cement-
lined wrought-iron pipes laid in concrete. Cables are insulated
with impregnated paper enclosed in a lead sheath.

Norwich. Cables are laid on the draw-in system. There are
nine positive feeders, each consisting of a single-core cable insu-
lated with impregnated paper enclosed in a lead sheath, the con-
ductor having a sectional area of .15 square inch. The total length
of cable is some 18 miles. Conduits are of earthenware.
H 5. Overhead lines.

All tramway systems reported upon use the overhead trolley
system, except the London County Council which uses the conduit
system, and a few lines operated by horse traction pending the
change to the conduit system. The London United has one short
horse-car line. All poles are of steel and usually provided with
ornamental cast-iron cover extending some five feet above the
ground. The poles are placed at a distance not exceeding 40
yards apart. In some cases, especially Glasgow and Liverpool,
rosettes have been used to some considerable extent for carrying
the span wire. In all cases a double insulation is used between
the trolley wire and earth. It was not possible in all cases to ob-
tain definite particulars as to the length of route equipped with
each type of construction, and the number of poles used. The
following table gives the information so far as it could be obtained ;
in some cases the figures are only estimated :

OVERHEAD EQUIPMENT (Lsr MILES).

Rosettes Side Poles Total

Centre Span and with Route
Undertakings. Poles. Wires. Span Wires. Brackets. Mileage.

Glasgow 6 41.4 26.6 74

Manchester 3y2 72y2 2% 2% 81

Liverpool 16% 28*4 7 4% 56

London C. C .... ....

London United 2% 33 y> ¥> 36y2

Dublin 2% 14y> 33 50

Norwich 8*4 6^. 14%

460 NATIONAL CIVIC FEDERATION.

WORKING EQUIPMENT.
H 5a. Horses.

A certain number of horses are kept by each system for draw-
ing tower wagons and such purposes. The London United employs
horses for drawing passenger cars on a short length of line between
Kew Bridge and Kichmond, which is detached from the other por-
tions of their system. Fifty-five horses are used for maintaining
this service. The London County Council still have a large num-
ber of horses in use on portions of their system which have not yet
been reconstructed. The number of horses in Manchester is some-
what large, owing to the fact that they own an omnibus service
(9 buses) and also have 60 parcel vans in connection with their
parcel express service. Dublin also has a parcel express system for
which a number of horses are employed. The horses owned are
as follows:

Glasgow 66

London United 91

Manchester 200

Dublin 80

Liverpool 28

Norwich 1

H 6. Passenger cars.

It is almost a universal practice to use double-deck cars, and
in many instances the upper decks are covered and so arranged
that in fine weather they become practically open. In no case was
any heating apparatus provided in the cars. On all systems cars
were electrically lighted, excepting the horse cars of the London
C. C. and London United systems. No cars were vestibuled except
100 belonging to the Dublin company.

Glasgow. The standard car is of the double-deck type
mounted on a single 4-wheel truck. Its seating capacity is
24 inside and 38 on the upper deck, making a total of 62. At the
date to which accounts were made up, 120 of the cars had been
fitted with covers to the upper deck. A similar arrangement was
being adopted for the remaining cars. All cars are provided with
fenders and hand brakes and electro-magnetic brakes.

Manchester. The standard car is of the double-deck type
mounted upon single 4-wheel truck, provided with trigger life-
guards and hand and electric rheostatic brakes ; 60 of the cars are
also fitted with electro-magnetic track brakes.

Liverpool. The standard car is of the double-deck type
mounted upon a single 4-wheel truck. All are fitted with hand and
electric-rheostatic brakes. A special type of fender is employed.
The cars seat 22 passengers inside and 42 on the upper deck, mak-
ing a total of 64 seats. They are allowed by the police regulations
to carry an additional 9 passengers standing on the lower deck.
The upper deck has a cover and can be entirely closed in bad
weather and opened in fine weather.

TRAMWAY ENGINEERING. 461

London C. C. Three types of cars are in use: (a) double-
truck double-deck, seating 72 passengers per car; (b) double-truck
single-deck, seating 36 passengers each; (c) single-truck double-
deck, seating 56 passengers per car. All cars are fitted with fend-
ers and hand brakes ; in addition, 341 of the cars have electric
rheostatic brakes and 76 have magnetic track brakes. Eighty-one
of the cars are provided with covers to the upper deck.

London United. All the electric cars are of the double deck
type mounted upon two maximum traction trucks, fitted with life-
guards and hand brakes ; 240 are also fitted with electric rheostatic
brakes, and 100 with electro-magnetic track brakes. Forty of the
cars have covers to the upper deck. Each seats 69 passengers, ex-
cepting 9, which are used for horse service between Kew and Rich-
mond.

Dublin. The standard car is of the double deck type mounted
upon a single 4-wheel truck. AU cars are provided with lifeguards
and hand brakes, and 100 also have rheostatic brakes for use in
emergency. One hundred of the cars are vestibuled and 12 had
been fitted with covers to the upper deck.

Norwich. The cars are of the double deck type, mounted upon
a single 4-wheel truck. All are fitted with trigger lifeguards and
hand brakes. Forty-two of the cars each carry 26 passengers in-
side and 26 outside, the other 5 carrying 21 inside and 21 outside.

CARS.

(S. T.— Single Truck. D. T.— Double Truck.)

Double Deck

with Total
Single Deck. Double Deck. cover to Passen-

upper deck, ger

Undertakings. 8. T. D. T. S. T. D. T. 8. T. D. T. cars.

Glasgow 21 542 .. 320 .. 6S3

Manchester 25 12 306 125 .. 64 532

Liverpool 15 12 113 3 351 . . 494

London, C. C. El (?) (?) (?) (?) (?) (?) 401

London United 9 300 . . 40 349

(horse)

Dublin 282 .. 12 .. 294

Norwich . . . . 47 . . . . . . 47

Besides the above, every undertaking has a nunjber of cars and
wagons for miscellaneous purposes.

H 7. Car sheds.

Total

Undertakings. Number. Capacity.

Glasgow 9 1,062'

Manchester 2 517

Liverpool 5 508

London C. C 1 1741

London United 7 424

Dublin 13 339

Norwich 1 50

1 Also temporary sheds in use.

462 NATIONAL CIVIC FEDERATION.

Manchester. These sheds are of a most substantial character
and have long frontages of ornate design, being of a much more
expensive character than those used by the other undertakings.

London C. C.

London United. Most of these depots were constructed by
the present company and are substantially built, generally well
laid out and conveniently situated for dealing with traffic on va-
rious sections of the system.

Dublin. There are no less than 13 car depots, previously the
property of the various horse tramways, which have been taken
over and amalgamated in the present Dublin United Company.
The buildings have been adapted for the electric service, but such
an arrangement cannot be so convenient or economical as where
fewer depots are in use.

Norwich. The one car depot has been put up specially for
the purpose, and though plain is of substantial construction.

H 8. Repair shops.

All the undertakings have suitably equipped repair shops for
carrying out the ordinary running repairs. In addition, Glasgow
and Manchester are provided with sheds and all the necessary equip-
ment for building their own car bodies. Liverpool also has a very
complete repair plant, but does not build cars as is done by Glas-
gow and Manchester.

H 9. Permanent way.

All the systems investigated use grooved girder rails laid upon
a bed of concrete not less than 6 inches deep. The usual practice
is for this concrete bed to extend over the whole area between the
rails and tracks and to an extent of 18 inches outside the outer
rails. This method of construction has been adopted by all the
systems investigated except Manchester, where the concrete forms
a girder under each rail, having a width of 18 inches, the concrete
bed not being extended further under the paving. The lengths of
rail are generally joined by fishplates with six bolts. Electrical
connection is secured across the rail joints by means of bonds. In
Liverpool a considerable number of special joints have been tried
in addition to the fishplates, and some 10 miles of the track have
been electrically welded. The tracks are held to gauge by tie rods
usually spaced 10 feet apart.

On all the systems the roadway between the rails and tracks
and for a distance of 18 inches outside outer rails is paved at the
cost of the tramway undertaking. The margins for the London
C. C. system vary from 18 inches to 36 inches. This paving is in
all cases maintained at the expense of the tramway undertaking.
All the tramways examined are laid along the public streets and
roads.

TRAMWAY ENGINEERING.

483

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464 NATIONAL CIVIC FEDERATION.

H 10. Track mileage (in miles).

Double Single Route Total as

Track. Track. Mileage. Single Track.
Glasgow:

Owned in perpetuity 66 . 30 .18 66 . 48 132 . 78

Under Clydebank order... 2.03 .. 2.03 4.06

Total owned 68.33 .18 68.51 136.84

Leased from Govan 4.35 .18 4.53 8.88

Running powers in Paisley .99 .. .99 1.98

Total of lines 73.67 .36 74.03 147.70

Connections, sidings, etc.. .. 6.22 6.22 6.22

Total 73.67 6.58 80.25 153.92

Manchester:

Owned 44.45 17.03 61.48 105.93

Leased from local auth 16 . 414 3 . 34 19 . 75 36 . 17

Running powers in Stock-
port 1.40 .. 1.40 2.80

Total 62.264 20.37 82.63 144.90

Liverpool:

Owned 43.19 15.09 58.28 101.47

Leased from Bootle 3.85 .56 4.41 8.26

Total 47.04 15.65 62.69 109.73

Only about 104 miles are operated, the remainder being held in reserve
and used only in case of emergency.

London, C. G.:
Owned' (?) (?) (?) 56.

London United:

Owned 33.5 4.5 38.0 71.5

All is electric traction but 1.5 miles of double track.

Dublin:
Owned (?) (?) 50. 97.

Norwich:
Owned 4.45 10.36 14.81 19.26

APPRAISAL OF PLANTS.
H 11. Appraisal of plant.

An estimate has been prepared of the cost of plant, perma-
nent way, etc., belonging to each of the undertakings. From this
an allowance has been made depending upon the length of time in
operation to allow for depreciation. Deducting the amount so
estimated there remains the structural value at the date to which
accounts were made up. All undertakings have been valued on a
similar basis, and the depreciation allowed on each item has been at
the same rate in each case. It was impossible in some cases to
value the land and buildings, also the underground cables and con-
duits, so that the estimates have in such case been based upon
figures obtained from the undertakings or from their published
accounts, or by taking notes of other undertakings of which detailed
particulars were available.

TRAMWAY ENGINEERING.

465

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Vol. III.— 31.

466

NATIONAL CIVIC FEDERATION.

OPERATION.

H 12. Current generated and bought in units (k. w. h.).
Undertakings. Generated. Bought. Total.

Glasgow 23,918,863 23,918,863

18,854,240 18,854,240

Manchester
Liverpool . . .
London C. C.

21,186,782 21,186,782

Particulars not available.

London United 12,330,398

Dublin 8,624,125

Norwich 1,445,895

H 13. Current used (units).

Used at Works

Undertakings. Sold. and Offices Tramways.

Glasgow 1,243,532 2,116,124 17,951,961

Manchester . .
Liverpool
London C. C.

18,854,240
315,780 20,871,002

12,330,398
8,624,125
1,445,895

Total.
23,918,863

18,854,240
21,186,782

London United..

Dublin

Norwich . . .

244,509

Particulars not available.

12,330,398 12,330,398

373,326 8,006,290 8,624,125
41,818 1,404,477 1,445,895

H 14. Fare passengers carried.

(Statistics same as given under I 2, Schedule IV.)
H 15. Passengers carried free.

No record kept except at Liverpool, where the number was
84,139, made up of employees, 45,074; policemen, 24,000; of-
ficials, 12,615; committee, 2,450.
H 16. Passenger car mileage, car hours, population.

Car Car Hours of Population

Undertakings. Mileage. Hours. Service. Served.

Glasgow 17,943,595 2,010.822 20 1,000,000

Manchester 14,123,124 (?) 18 750,000

Liverpool 12,067,033 (?) 19 750,000

London C. C 14,081,3972 (?) 181 (?)

London United 7,319,460 (?) 22 (?)

Dublin 7,443,243 (?) 18 448,000

Norwich 1,083,055 192,984 16 112,000

H 17. Speed of cars. (See also D 44.)

Before a tramway line may be opened for public traffic it is
inspected by the Board of Trade and they have authority under
Parliamentary powers to fix a limit to the speed of cars on various
sections of the system. This speed is varied according to the gradi-
ents, width of street and any other local conditions. The highest
speed allowed was 16 miles per hour on some sections in Glasgow
and London C. C., but on the London United and Liverpool sys-
tems the maximum was 14. The following figures which apply to
Liverpool, may be taken as illustrative of conditions generally.

On 10 per cent, of the system the maximum speed allowed was
14 miles per hour.

1 To a limited extent all night.

'Including 10,931,396 for the electric system and 3,150,001 for the
horse system.

TRAMWAY ENGINEERING. 467

On 54 per cent, of the system the maximum speed allowed was
12 miles per hour.

On 26 per cent, of the system the maximum speed allowed was
10 miles per hour.

On 10 per cent, of the system the maximum speed allowed was
8 miles per hour.

The average in Manchester, including stops, was 7.1 miles per
hour on whole system.
H 18. Transfers.

The transfer system is not in use. In Norwich when passen-
gers desire to travel over more than one route, they ask for a trans-
fer ticket at the time of paying their fare, and a ticket is given
for the entire journey if the entire fare is paid. No waiting rooms
are provided at the transfer points. In Liverpool there is only one
transfer point, where the Liverpool system joins up to the St.
Helen's system. A waiting room is provided at this point.
H 19. Where do cars stop for passengers?

At predetermined points, usually indicated by signs attached
to poles or by the poles being specially painted.
H 20. Car service.

The number of cars run on the various systems appeared gen-
erally sufficient to meet the requirements of the traffic, extra cars
being put on to meet the larger number of passengers during "rush"
hours. At one point in Glasgow as many as 466 cars pass per hour,
giving a headway of 15 seconds, and this is increased to 516 cars
per hour on Saturdays, or a headway of 13.8 seconds. The average
number of passengers per car mile in Glasgow, taken over the year,
was 10.91. Very little, if any, delay or waiting by passengers on
any system, except on the London C. C. and the London United
systems during rush hours. The service on the London C. C.
system was limited owing to their generating station not being
completed, power being obtained from various temporary sources.

Passengers are not generally allowed to stand on the cars,
although it is allowed to some extent in Manchester, Dublin and
Glasgow during wet and inclement weather. In Liverpool the cars
are licensed to carry a certain number of passengers standing on
the lower deck, usually 9.
H 21. Condition of cars.

The cars on all the systems were generally well painted and
kept in good condition. In Glasgow each car was washed every
night, repairs of general character made every six weeks and
thorough overhauling once a year. The lighting and ventilation
appeared in all cases satisfactory. No attempt is made to heat the
cars during cold weather on any of the systems. All cars were
provided with destination and route indicators, the former being
carried from the upper deck railing at the front and back end of
each car, and arranged so that they can be illuminated at night.
In Glasgow cars running on different routes are painted different
colors and at night carry colored headlights to correspond.

468 NATIONAL CIVIC FEDERATION.

H 22. Advertising on cars.

Glasgow, Manchester. No Advertising.

Liverpool. Advertising is allowed and the department ob-
tains a revenue of about £20 10s. per car per annum from this
source. The class and nature of advertising must be approved
by the general manager.

London C. C. Advertisements are allowed on screen boards
outside and on the glass ventilators inside.

London United. Advertising is allowed on the screen boards
along the roof and on the upper part of the windows of the lower
deck.

Dublin. A five-year contract has been entered into. Adver-
tisements are allowed in space over the windows and upon the out-
side of the cars.

Norwich. Advertising is just being adopted. To obtain the
sanction of the city the company has agreed to allow a percentage
on receipts from this source, the city taking 25 per cent, of all
receipts up to £600 and 50 per cent, on receipts above that amount.

H 23. Were engineering tests being carried on?

All the undertakings are required by the Board of Trade to
make and keep a record of certain tests relating to return current
through earth and to the drop of potential in rails when these are
used as a return circuit. Each undertaking is provided with suit-
able recording instruments for carrying out these tests.

H 24. Were there frequent complaints about interruption of

service ?

There appear to be very few interruptions of service on any of
the systems, and a general cessation of service is not reported as
having taken place on any of the systems except on one occasion in
Manchester shortly after commencing to work, due to trouble at
the main generating station.

EXTENSIONS.

H 25. What factors have determined the extent and location of
extensions ?

Glasgow, Manchester. Population and the estimated earnings
anticipated.

Liverpool. Population and the city boundaries.

London C. C. Local necessities and local conditions as to
width of roadways, etc.

London United. Probable traffic.

Dublin. Probable earnings from investment and density of
population.

Norwich. No extensions have been made.

In all cases Parliamentary powers must be obtained before
a tramway may be laid along any public street or road, and where

TRAMWAY ENGINEERING. 469

such a tramway is to pass through a district under the control of
any local authority other than the one applying for Parliamentary
powers, the sanction of such authority must be previously obtained.
The systems examined have fairly well covered the area allotted
to them and have given a reasonably efficient service to the popula-
tions served.

H 26. Total length of extensions during the past year.

Glasgow. 2.38 miles for 1904-5, and 26.71 miles in the three
years, 1901-4.

Manchester. 8.295 miles.
Liverpool. .471 of a mile.

London C. C. Keconstruction of old horse tramways not yet
completed.

Companies. None.

H 27. Have the citizens of any section petitioned for extension
to their district within the last five years?

Municipalities. Yes.

Companies. No.
H 28. Were extensions made promptly when there was a demand?

Glasgow. Promptly after Parliamentary powers had been ob-
tained. Under the original act of 1870 over 22 per cent, of the
tramways were outside of the city boundary. Now 36 per cent, are
outside the city boundary.

Manchester. Yes, and some before there was actual demand.

Liverpool. Yes.

London C. C. System not yet completed.

Companies. Yes.

H 29. Has the necessity for passage of an act ever caused delay
in extending the service?

Glasgow. Yes, and sometimes by a failure to agree with the
local authorities of other districts.

Manchester. Yes, in one case.

Liverpool. No.

London C. C. Yes.

London United. Yes.

Dublin, Norwich. No.

H 30. Has service been extended in advance of the demand in
order to stimulate the growth of a district, or has it
awaited demand?

Glasgow. Probably all have been made prior to demand.

Manchester. To a slight extent in advance of demand.

Liverpool. Policy has been liberal and the city seeks to be
in advance of demand.

London C. C. System not yet completed.

470 NATIONAL CIVIC FEDERATION.

London United. Extended in advance of demand.
Dublin. Awaited demand.
Norwich. No extensions.

STREET WORK.

H 31. Was street work done by direct employment or contract?

Glasgow. All maintenance by direct labor; extensions by di-
rect labor or contract. No rule.

Manchester. Direct employment.

Liverpool. Direct employment under control of highways
committee.

London C. C. Contract, except repairs.

London United. Direct employment.

Dublin. Both contract and direct labor.

Norwich. Contract, except repairs.
H 32. Was the work done by contract properly inspected?

Yes, wherever contracts were made inspectors were appointed
to supervise the work.
H 33. Was the work performed in an efficient manner?

Ordinarily, yes. Some trouble sometimes experienced before
final acceptance and payment.

H 34. Was the street surface promptly restored after openings
were made?

Yes, so reported in each case.
H 35. Was water used in puddling ditches ?

No, except by the Dublin company.
H 36. Were open trenches and obstructions properly guarded?

Yes, in each instance.
H 37. How are sunken trenches taken care of?

Fenced and lighted in each case.

H 38. What has been the policy in regard to improving the con-
dition of street services prior to street paving or repaving?

Glasgow. It is intended to provide for all sub-pavement im-
provements and constructions before pavement is laid. This is
ordinarily accomplished.

Manchester. The standing orders of the city provide: To
obviate the frequent disturbance of the surface of the streets,
which are under the charge of the paving, sewering and highways
committee, any other committees of the council intending to dis-
turb the surface of the streets for any purpose shall, except in cases
of emergency, give notice to the paving, etc., committee of such in-
tention, and upon the receipt of such notice it shall be the duty
of the paving, etc., committee to inform any other committee having
work to do of a kindred character, in order that it may be com-
pleted at the same time.

TRAMWAY ENGINEERING. 471

Liverpool. Work necessary for pipes, sewers, tracks, etc., is
done in advance of paving or repaving.

London C. C.

London United. Notice is given to local municipal authority.

Dublin. All street services were looked to prior to paving, so
far as possible.

Norwich. Notice given to city before repaving.
H 39. Is there an up-to-date map showing location and nature
of all street mains and fixtures ?

Municipalities. Yes.

London United. Yes.

Dublin, Norwich. No.

H 40. Who decides where underground structures shall be lo-
cated in the street?

The exact location of the tracks is determined by Parliament
or the central authorities ; otherwise as follows :

Glasgow. The statute labor committee of the common coun-
cil.

Manchester. Paving, etc., committee of the council.

Liverpool. The health committee of the council.

London C. C. Highways committee.

Companies. By each company as approved by local authority.
H 41. Is a permit from a public authority required before street
may be opened ?

Municipalities. From a committee of the council.

London United. Only notice by company.

Dublin. Notice required to gas company and city.

Norwich. No.
H 42. Is a separate permit obtained for each opening?

Municipalities. Yes.

Companies. No.

PURCHASE OF SUPPLIES.

H 43. Who placed the orders for materials and who governed
the placing of orders?

Municipalities. The general manager with the approval of
the tramway committee.

London United. Accountants department.

Dublin. Secretary and treasurer subject to the approval of
the board of directors.

Norwich. General manager.
H 44. Were contracts advertised?

Municipalities. All municipal undertakings advertised for
tenders for various materials likely to be required during the year.
Tenders were accepted by the tramway committee.

472 NATIONAL CIVIC FEDERATION.

London United. Tenders were invited from a selected num-
ber of firms, but contracts were not advertised.

Dublin. Advertisements were published and orders placed in
Dublin.

Norwich. No contracts advertised.

H 45. What system was used to check the quality of materials
and weights and measurements of shipments?

In all undertakings all materials were delivered into stores
and checked as regards quantity and quality by the storekeeper,
who reported to the offices so that invoices might be checked and
passed.

H 46. What redress is there in case of shortages or poor quality
of shipment ?

In event of deficiency in quantity or quality a report is made to
the office and payment is withheld until the matter has been recti-
fied. In some cases there are further penalty clauses which may be
enforced.

H 47. Were the dealers supplying materials connected with the
public authorities in any way ?

Municipalities. Under the acts of Parliament no member of
a public body is allowed to trade with the public body to which he
belongs.

Companies. No instance was found.
H 48. Were local dealers favored over those outside of the city?

Municipalities. No special preference was given to local deal-
ers.

London United. No local preference.

Dublin. Irish dealers were favored on equal basis.

Norwich. Preference was given to local dealers.
H 49. Was there delay in placing orders after the engineer or
superintendent expressed the necessity for supplies?

No instance of delay was found in any case.
II 50. In practice, did the manager get the types and makes of
things he asked for, or was he forced to take something
else?

No instance was found in any case where the manager's re-
quest was disregarded or overruled.
H 51. Were bills for materials purchased paid promptly?

In each instance it was reported that there was no delay.

GENERAL MATTERS.
H 52. Is the system adequately equipped to handle business?

Glasgow, Manchester, Liverpool. Each system seems to be
well handled and have ample equipment.

London C. C. Will be when reconstruction is completed.

Companies. Yes.

TRAMWAY ENGINEERING. 473

H 53. Is the equipment of modern and efficient type?

Yes, in each instance. The equipment is of the type ordinar-
ily used in Great Britain, except that the L. C. C. system uses the
conduit instead of the trolley.
H 54. Is it in good condition?

Municipalities. Yes. The equipment is good and repairs are
carefully made. In Glasgow all cars are run into the repair shops
once in every six weeks for ordinary light running repairs and
overhauling^ and once each year for a thorough overhauling, gen-
eral repairs and painting.

Companies. Yes.

H 55. Will it be necessary to make extensive repairs or alterations
in the near future ?

No, except those ordinarily made from time to time.
II 56. Is the plant kept in clean and neat condition?

Yes, in each instance.
H 57. Are the works adequately ventilated?

Yes, in each instance.
H 58. Are the pits, shafts and machinery properly guarded ?

Yes, in each instance.

H 59. Are the offices for payments, complaints and other busi-
ness conveniently located?

Yes, in each instance. In Glasgow the central office is kept
open day and night.

H 60. Were passengers' complaints promptly and efficiently at-
tended to?

Yes, in each instance. Inspectors are usually kept for this
purpose.
H 61. Were any places of amusement owned or maintained?

None, in any instance. Of course., every city owns and main-
tains various public parks, but none of these was under the control
of the tramway undertaking or maintained in Connection therewith.
H 62. Is there a system of badging or uniforming the employees
so that they may be known to the public?

In every case the motormen and conductors were uniformed.
The municipalities provide the uniforms without expense to the
employees. The same was true of the London United and the
Dublin companies. The Norwich company paid one-third of the
cost and the employees two-thirds.

H 63. Is the general morale and discipline of the employees
good, bad or indifferent?

In all cases the discipline of employees appeared excellent.
H 64. Are the employees who meet the public polite and atten-
tive?

So far as could be learned all employees who came in contact
with the public were polite and attentive.

474 NATIONAL CIVIC FEDERATION.

H 65. Were they neatly dressed?

Yes, in each instance.
H 66. Do various departments work in harmony?

So far as could be learned there was complete harmony be-
tween the various departments.

H 67. Is there an adequate system of telephones?

Yes, in each case.
H 68. Are the works and offices properly watched at night?

Yes, in each case.

H 69. Is there any system of inspection to prevent workmen of
other companies or city departments from injuring the
underground structures ?

Glasgow, Liverpool. No special provision was made.
Manchester. There were special inspectors for this purpose.

London C. C.

Companies. Special provision.
H 70. Was a drafting room maintained?
Yes, in each instance.

H 71. What system was in vogue to take care of the tools distrib-
uted to employees ?

Tools were checked in and out of stores, and where the men
were working in gangs the foreman was generally held responsible.

H 72. Were the different classes of workmen equipped with proper

tools? Were the tools kept in order?

The workmen of each undertaking seemed to be properly
equipped with the various classes of tools and they were appar-
ently kept in good order.

FINANCIAL MATTERS

British Tramways

(Schedule IV)

By E. HARTLEY TURNER and R. C. JAMES*

I 1. Data for year ending: Glasgow, May 31, 1905; Manchester,
March 31, 1905; Liverpool, December 31, 1905; London
C. C., March 31, 1905; London United, December 31,
1905; Dublin, December 31, 1905; Norwich, June 30,
1905.

I 2. Give rates of fares for last year. Average distances in miles
at various rates of fare.

A. ORDINARY FARES.

London United —
London

Fare. gow.

id.

Id.
lid.

2d.
2id.

3d.

4d.
4id.

5d.
5id.

6d.

.58

2.30

3.48

4.59

5.88

6.90

8.11

9.19

10.15

10.77

11.59

12.93

Wan-
tester.
72

Liver-
pool.

London
C.C.1
.64

& Mid-
dlesex.

-Dul>-
Surrey. lin.

Nor-
wich.

2.10
2 61

2.40

1.85
262

2.07

1.84 ....

1.46
About

3.34
403

4.38

4.05
4.80

4.17

3.70

1
mile

4.68
543

6.66

5.98

6.18

5.42

for
Id.

6.45

8.54

8.80

7.21

10.43

10.16

8.90

11.16

B. WORKMEN'S FARES.

Same as ordinary fares, and

Glasgow, Manchester, Liverpool.
same cars are used.

London C. C. Workmen's fares charged in all cars reaching
terminus before 8 A. M. ; ordinary cars used in evening, rates, Id.,

1 The figures in this column are approximate only.

2 No data available. About li miles for Id.

*A11 figures in these schedules relating to assets, liabilities, revenue,
and profit and loss accounts, are prepared from the published accounts
certified by the auditors. We have in all cases where further informa-
tion was required obtained such details from the staff of the undertaking.

We have not in any case verified by personal examination the
accuracy of the audited accounts, as we considered that in the short
time at our disposal we should not have been able to do this with any
completeness, even had we entree to the books and original records.

For general comments and summary, see further report at the end
of this volume.

476 NATIONAL CIVIC FEDERATION.

3 to 6| miles; 2d., 6 to 12£ miles. Number of passengers carried
during 1904-5, 9,898,289 ; receipts, £36,172 ; average fare, ,89d.

London United. Special cars are run in the morning, ordi-
nary cars used in evening. Average distances: Id., 5.26 miles (sin-
gle) ; Id., 4.58 miles (return) ; 2d., 11.51 miles (single). Keturn
tickets at double single rates are good for return at any time after
noon. Number of passengers carried in 1905 was 1,721,739; re-
ceipts, £10,725 ; average fare, 1.49d.

Dublin. Special cars are run. Average distance, about 2£
miles for Id. Number carried in 1905, 51,159, at the following
rates: Id., 39,747; l£d., 11,397; 2d., 7; 3d., 8. Average fare,
l.lld.

Norwich. Special cars are run and tickets are available up
to 8 A. M., between 1 and 2 p. M. and from 5 :30 to 7 :15 p. M. ex-
cept after 2 p. M. on Saturdays; 12 tickets for 6d. Receipts in
1904-5 were £623.

C. SCHOLARS' TICKETS.

Glasgow. Children traveling to and from school are allowed
to ride at half fares, up to 15 years of age, but the minimum fare
is ^d.

Manchester, Liverpool.

London C. C. No special rates.

London United. No special rates.

Dublin. Under 15 years, 25 per cent, discount. Tickets are
sold and accepted at face value.

Norwich. Tickets, 12 for 6d. are available from 8:30 to
9 A. M., 12 to 12:30 p. M., 1 to 2:30 p. M. and 4:30 to 5 p. M., ex-
cept on Saturdays, bank or school holidays. Receipts in 1904-5
were £133.

Rates of
Fare. Gl

PASSEXGERS <
Man-
asgow. Chester.
29.9 5.4
60.2 72.0
6.7 11.0
1.9 7.1
.5 1.9
.6 1.6
.1 .7
.1 .3

CARRIED — PERCENTAGES.

Liver- London London
pool. C. C. United.

3fi 0

Dublin.

Nor-
wich.

89.3
1.0
9.1

".4

47.1 71.6
9.1
5.0 21.1
1.2
1.6 3.1

81.1
14.7
' l'.8

88.2
6.8
4.3
.4
.3

1*..

2£

2.3

1.1

'".2

lOd -3s

Howth thro
passengers.

.8
.2
.2

. . . .

Sneeial. etc..

Total... 100.0 100.0 100.0 100.0 100.0 100.0 100.0

TRAMWAY FINANCE.

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478 NATIONAL CIVIC FEDERATION.

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TRAMWAY FINANCE. 479

I 3. State conditions upon which transfers were given.

No transfers were given by any undertaking, except at Nor-
wich, where a sort of zone system was in force. If one has to change
cars to complete his journey, a transfer may be had upon ap-
plication when the fare is paid, provided, of course, the required
fare for the full distance is paid when the transfer is asked for.

I 4. Summarize charges for freight and express service.
Glasgow, Liverpool, London C, C. No service.

Manchester. Parcels are collected and delivered anywhere
within the cities of Manchester and Salford and part of Stretford
at the following rates :

Up to 14 Ibs. weight 2d. Up to 56 Ibs. weight 4d.

Up to 28 Ibs. weight 3d. Up to 112 Ibs. weight 6d.

The rates outside of this area, to and from any point in some
66 districts including all the large towns in the neighborhood of
Manchester except Bolton, and extending some 11 miles to the
north, eight miles to the east, nine miles to the south and six miles
to the west of the center of Manchester, were :

Up to 14 Ibs. weight 3d. Up to 56 Ibs. weight 6d.

Up to 28 Ibs. weight 4d. Up to 112 Ibs. weight 8d.

Breakable articles are carried at the ordinary rates if at the
risk of the owners and at double these rates if at the risk of the
department. Parcels are called for or may be left at any one of
the 150 depots.

London United. No service.

Dublin. Parcels are collected and delivered anywhere within
the city and within 1 mile of any of the company's ten stations out-
side of Dublin, comprising a circular area with a radius of not
quite four miles, at the following rates :

Up to 4 Ibs. weight 2d. Up to 56 Ibs. weight 6d.

Up to 14 Ibs. weight 3d. Up to 84 Ibs. weight 9d.

Up to 28 Ibs. weight 4d. Up to 112 Ibs. weight Is.

Up to 42 Ibs. weight 5d.

A special rate for traders' light goods from 56 to 84 Ibs.
of 7d. and from 84 to 112 Ibs. of 8d. is charged. Laundry baskets
over 56 Ibs., 6d., half rate extra for frail or breakable articles. For
delivery beyond one mile from the company's stations, 2d. per par-
cel per half mile up to 28 Ibs. and 4d. per half mile up to 56 Ibs.
is charged, but no parcel will be delivered beyond two miles, nor
can punctual delivery outside of the one mile distance be guaran-
teed. Parcels are called for or may be given to street car conductors.
The profit last year was £3,000.

Norwich. The business is very small. Total receipts were
only £112 last year.

I 5. Summarize mail contracts.
Municipalities. None.

480 NATIONAL CIVIC FEDERATION.

London United, Norwich. None.

Dublin. No contract, but the company received £63 in 1905
from a private company for carrying mails.

I 6. If fares were altered between January 1, 1900, and 1906,
give changes.

Glasgow. Average distance at various fares, in miles:

Since Since

Fares. ' 1900. 1902. Fares. 1900. 1902.

id 58 .58 3Jd 8.11

Id 1.75 2.30 4d 9.19

lid 2.31 3.48 4id 10.15

2d 3.49 4.59 5d 10.77

2id 4.12 5.88 5id 11.59

3d 5.20 6.90 6d 12.93

Manchester. A general reorganization of the fares and stages
took place in October, 1903. Intermediate stages at 1-Jd., 2^d. and
3£d. were introduced all over the system, and the distances length-
ened for the other fares. The general effect was in favor of the
traveling public.

Liverpool. Reduction between 1897 and 1899 would be be-
tween one-half and two-thirds of the original fares.

London C. C.

London United. Slight increases in distance carried; fares
were not materially altered.

Dublin, Norwich. No changes.

I 7. Was the reduction voluntary, the result of law or ordinance

or competition?

Voluntary in each instance, but perhaps due in part to com-
petition.

I 8. If plant has undergone a change from private to public man-
agement, or vice versa, give fares and distances just be-
fore and just after change, with dates.

Glasgow. The working of the tramways was taken over by
the city council on July 1, 1894. The fares charged by the company
just before and by the city just after the change were:

Company — Municipality —

Distance in Miles. Fares. Distance in Miles.

£d. .58

1.12 Id. 1.17

1.80 l£d. 1.80

2.20 2 d. 2.28

2|d. 2.81

3.23 3d. 3.41

Average fare per mile, company 0.89d.

" " " " citv 0.46d.

TRAMWAY FINANCE. 481

Manchester. A comparison of the average distances traversed
for the various rates of fares is as follows :

Company— Municipality —

Distance in Miles. Fares. Distance in Miles.

Inside. Outside. Inside or Outside.

|d. .72

1.08 1.21 1 d. 2.10

l|d. 2.61

2.06 2.23 2^d. 3.34

2|d. 4.03

3.08 3.08 3~d. 4.68

3t>d. 5.43

4.30 6.06 4~d. 6.45

5.38 5 d.

6.29 6 d.

The company ceased running cars in the Manchester area
March 31, 1903. A general reorganization of the fares and stages
was made in October, 1903.

Liverpool. Eeduction between 1897 and 1899 would be be-
tween one-half and two-thirds of the original fares. Average fare
per passenger up to 1897 was about 2d., but the stages have been
lengthened so that comparison is very difficult. Change from com-
pany to municipal operation was made in 1897.

London C. C. Many alterations have been made both in fares
and distances since January 1, 1899, when lines were taken over.

Companies. Inquiry not applicable.
I 9. What system of accounts was used during last fiscal year?

Municipalities. The standard form approved by the Munici-
pal Tramways Association of Great Britain and the Institute of
Municipal Treasurers and Accountants, except at Liverpool, where
certain modifications were in vogue.

London United. Ditto.

Dublin. The form prescribed by the Eailway Clauses Consol-
idation Act of 1868.

Norwich. A form drawn up by the manager of the company,
very similar to the form used in this schedule.

I 10. By whom were the accounts audited?

Glasgoiv. A professional firm of chartered accountants:
Messrs. Kerr, Andersons & MacLeod, Glasgow.

Manchester. Messrs. Butcher, Litton and Pownall, chartered
accountants, Manchester ; and the elective and mayor's auditors.

Liverpool. There was a continuous audit conducted by the
controller and auditor of accounts. In addition there were also
audits by a firm of chartered accountants, and by the elective and
mayor's auditors, who were chartered accountants.

London C. C. An auditor of the Local Government Board.

Vol. III.— 32.

4S2 NATIONAL CIVIC FEDERATION.

London United. Solomon Hare, chartered accountant.

Dublin. Articles of association provide for the appointment
of two auditors one of whom must be a shareholder. Sir Robert
Gardiner, one of the auditors, is a shareholder.

Noncich. F. S. Culley, chartered accountant, Norwich.
1 11. Who paid for this auditing?

Glasgow, London C. C. Tramways department.

Manchester. The City of Manchester out of the city fund.

Liverpool. Municipality. See also inquiry I 21.

Companies. The company in each case.
I 12. Who selected the auditor ?

Municipalities. The elective auditors are chosen by the city
council ; the mayor's auditor is appointed by the mayor. The pro-
fessional auditors are selected by the city council also, except in
London, where the Local Government Board appoints.

Companies. The shareholders in general meeting.
I 13. Was each item charged to the proper account?

Yes, in each instance.

I 14. What provision was there for assuring that each item was
properly charged ?

Besides the audit prescribed under inquiry I 10:

Glasgow. All accounts were carefully allocated by an experi-
enced clerk and were thereafter checked by the accountant. All
capital expenditure was certified by the head of the department in-
curring the expense.

Manchester. The provision of a proper method of analysis
and the supervision of the actual analysis by responsible officials.

Liverpool. Primarily by the executive office, checked by the
audit staff.

London C. C. The usual internal control supervised by the
accountants' department.

London United. The store room system is an admirable one,
and a staff of clerks was engaged entirely on the work. There was
a practical supervision by the management and the auditor of the
company.

Dublin. All purchases were verified by responsible officials
and the secretary and accountant supervised" the method of charg-
ing the same to the proper account.

Norwich. A proper scrutiny of all purchases by responsible
officials, supervised by the accountants' department.

I 15. Were the accounts of the particular plant kept separate from

all others and from the general accounts of the city ?
Yes, in each instance. In the case of the London C. C. tram-
ways separate accounts were kept of the construction and operation
of the Northern and Southern systems, and in the case of the South-

TRAMWAY FINANCE. 483

ern system as between horse and electric traction. In addition to
the outlay upon the Northern and Southern systems, the Council
has expended £474,715 up to March 31, 1905, upon the purchase
of land, the erection of the western and eastern generating stations,
tramway subway under Kingsway and street improvements. This
expenditure, which has been since considerably increased, has not
been allocated to either the Northern or Southern systems as at
present worked. No revenue has been received in respect to this out-
lay to March 31, 1905.

I 16. As regards taxes, fire insurance, boiler insurance, water rents
of land and buildings not owned but used, interest on loan
debt and other liabilities, were the expenses charged in
the books of the undertaking and included in the financial
returns ?

The accounts of each plant were charged with the amounts
spent.

I 17. As regards accident insurance and payments for claims and
damages, were the expenses charged in the books of the
undertaking and included in the financial returns ?
The accounts of each plant were charged with the amounts
expended, but some took out the ordinary insurance policy, while
others did their own insuring.

I 18. As to transportation for employees, was the cost charged
in the books of the undertaking and included in the finan-
cial returns?

No, in no instance, except in the London C. C. system. See
also I 22.

I 19. Were charges made for "depreciation" in the books of the

undertaking and included in the financial returns?
In this connection, it is advisable to consider not only the or-
dinary charges for repairs and maintenance, but payments out of
revenue to sinking and reserve funds, and in aid of rates — taxes —
as well as depreciation funds. Sinking funds will be considered
under I 20, the others will be treated here.

I — Payments to Depreciation and Reserve Funds.

Glasgow. Previous to the year ending May 31, 1905, the
tramways department treated the capital account in the same way
as did the gas department, inasmuch as they deducted the depre-
ciation charged to revenue account from the capital expenditures
shown in the balance sheet. In May, 1905, the committee decided
to issue the accounts in accordance with the standard form adopted
for municipal tramways. In consequence of this decision, the ac-
counts of the tramway undertaking to May, 1905, show on the
assets side of the balance sheet the full capital expenditures and on
the liabilities side the amount of the fund set aside to meet depre-
ciation. This fund has been built up by annual contributions out
of revenue at fixed rates per cent, and amounts of £777,637. In the

484 NATIONAL CIVIC FEDERATION.

case of permanent way, the yearly contribution was £450 (since
increased to £500) per mile of single track; electric equipment 3 1/&
per cent. ; buildings and fixtures, 2£ per cent. ; power station plant,
5 per cent. ; cars and electrical equipment, machinery and tools, and
miscellaneous equipment, 7J per cent. — a total of £153,292 for
1904-5. These were the rates charged for the year ending May 31,
1905. The rates for previous years can all be ascertained from
the published accounts of the undertaking.

In addition to these regular rates the undertaking has set
aside a special depreciation fund which is arrived at by transferring
round sums from the surplus revenue as profits allow. At May 31,
1905, this special depreciation amounted to £68.500. The munici-
pality has expended the sum of £287,036 on actual renewals out of
the depreciation fund above created. Full provision has been made
out of revenue for obsolete plant, and in this case we would spe-
cially mention that the whole cost of temporary equipment for
horse traction amounting to £186,637, has been written off out of
revenue. The total amount expended under the head of parlia-
mentary charges is £15,857, of which there has been written off out
of profits the sum of £13,756, leaving a balance of £2,101, which
is included in the capital outla}r.

In addition to the depreciation fund of £777,637 already re-
ferred to, this department has accumulated a reserve fund of £32,-
590, which has been provided out of surplus profits. It is not spe-
cifically invested, but has been used in extending the works.
The total amount set aside out of revenue from 1896 to

1905 has been £353,018

Increased by proceeds of sale of horses and obsolete plant 2,662

Total £355,680

This has been applied as follows:
In paying a proportion of the expenses of munici-
pal buildings for two years in 1899 . . . £1,000~~

Transfer to permanent way renewals fund 190,000

Amount expended on alterations in 1902 and

1905 70,588

In writing off outlay on the old horse traction

plant and preliminary expenses 61,502

£323,090

Leaving a balance carried forward as above of £32,590

With regard to the investment of the depreciation and reserve
funds of this department, we would make the following remarks:
The depreciation and permanent way renewal fund, together with
the general reserve fund, both of which we have referred to above,

amounts to £810,227

This is represented by:

Loan to the Corporation of Govan £10,000

Invested in the Common Good of the Glasgow

Corporation 157,000

TRAMWAY FINANCE. 485

Employed as working capital £76,090

Expended on cars and alterations in course of

construction 36,108

— £279,204:

The remainder £531,023

has been used in building and equipping the plant.

With regard to the last application of these funds we would
point out that this is only a temporary use of these reserve funds
seeing that the city has unexercised borrowing powers amouning to
£467,642. Instead of borrowing this amount and increasing their
sinking fund charges, they have utilized their cash reserves in cap-
ital outlay until such times as the reserves are required for their
proper purpose, when the borrowing powers will be exercised and
the money so raised will be applied in carrying out the required
renewals of permanent way and other plant.

Manchester. The capital outlay of the undertaking purchased
from the old Carriage Company is included in the balance sheet
as £263,158. The old track which was leased to the Carriage Com-
pany is included in the outlay at the amount of £20,819, represent-
ing the outstanding loans which have not been provided by means
of sinking fund, although it has all been repaid. This amount is
being written off out of revenue, as the loans are repaid. During
the lease the municipality received by way of rent a sum sufficient
to pay the interest and sinking fund on the debt incurred for this
purpose. The amount of sinking fund so supplied has been writ-
ten off the capital outlay, reducing it to the above sum.

The balance to the credit of the renewals and depreciation fund
at the end of 1904-5 was £185,086, represented by cash in bank
and working capital; £70,907 were set aside out of revenue for
that year. Current repairs were paid out of revenue.

Liverpool. The balance to the credit of the reserve, renewal
and depreciation fund at the end of 1905 was £271,019, represented
by a loan of £100,000 to the water department, working capital
and cash in bank. The statement is as follows :

Total amount set aside to December 31, 1904 £236,697

Add for year ended December 31, 1905 50,639

£287,336

Deduct: Electric welding of tramway lines £7,667

Alterations of lines ". 8,650

16,317

Amount stated above £271,019

The published accounts show this amount reduced by
the outlay on Hatton Garden and Litherland properties
which we have included in capital outlay, viz . . 56,620

Amount as per published accounts £214,399

486 NATIONAL CIVIC FEDERATION.

Since this fund was established no charges have heen made
against it for renewals, except the above item of £16,317. All re-
newals have been charged to current revenue.

London C. C. The balance to the credit of renewals reserve
fund at the end of 1904-5 was £66,607, represented by investments
of £31,541 in 3 per cent consolidated stock of the London County
Council, and working capital ; £35,000 were set aside out of revenue
for that year, besides costs of ordinary repairs.

In this connection it is important to point out that during
the conversion of the horse system to electric traction, it was nec-
essary to erect temporary stations at a cost of £25,203, which has
been entirely written off out of revenue. Further provision in this
respect will have to be made when certain temporary car sheds are
closed. On conversion also the horses were sold and any loss under
this heading has been charged to revenue account.

As to parliamentary expenses, the costs of the bill of 1903
have been written off out of profits, and two-thirds of the costs
of the Bill of 1904 have also been provided for in the same w;iy.

Companies. It is not the practice for the companies to charge
the revenue account with any definite rates of depreciation, which
is provided for by charging all renewals to the year's revenue ac-
count as and when made.

London United. This company has accumulated a reserve
of £15,000 by transfers from surplus profits and by a premium
of £3,750 received in respect of new preference shares. It is not
specifically invested but is represented by the general assets of the
company. The object of this fund is to provide for depreciation
and renewals. Subject to the control of the shareholders, there
is no limit to the amount which may be set aside; £10,000 were
set aside out of revenue for the last year.

Dublin. The company has improved their track at various
times by laying down heavier rails and by the conversion from
horse to electric traction. All this expenditure has been charged
to revenue account except that portion which is represented by
improvements effected to equip the lines for electric traction.

The following fund has been accumulated: Reserve fund,
£21,000; accident insurance reserve, £3,000; maintenance fund,
£2,500; total, £26,500. These have been provided out of surplus
profits and have been invested to the extent of £1,900. The interest
on these investments is credited to the net revemie account.

This company has made a special reserve which we think
should be specially mentioned. In 1905 they issued £300,000 of
"B" debenture stock at a discount. This discount amounted to
£24,704 and the stock is redeemable at par in 1938. To provide
for this discount on the redemption of the stock, they have taken
out a policy of insurance upon which they pay an annual premium
of £388. This premium has been regularly charged against the
profits for each year, but the company has not included in its
assets any sum representing the present value of the policy. We

TRAMWAY FINANCE. 487

have calculated this on a 2£ per cent, basis, which gives a present
value of about £3,400. Although this is not included in the assets
in the balance sheet, we have added it to the assets in the state-
ment in the schedule and deducted it from the amount appearing
in the balance sheet as discount on the "B" debenture stock.

Norwich. This company has set aside a reserve fund amount-
ing to £4,197, which has been provided out of surplus profits. It
is invested specifically at call and the resulting interest is credited
to the net revenue account.

II — Payments in Aid of Rates— Taxes.

The amount paid over in aid of rates is as much an application
of surplus profits as the provision of a reserve fund. The reserve
fund appears in the accounts of the undertaking, but profit applied
in aid of rate is not generally shown in the accounts and then only
as a memorandum. The following table summarizes the facts:

Year

Towns. Total Years. Annual Under How Applied.

Amount. Average. Review.

Glasgow £156,760 11 £14,250 £25.000 To Common Good '

Manchester... (?) (?) (?) 51,000 Note2

Liverpool8 127,283 5 25,456 25,320 General purposes

London C. C." 39,600 5 7,920 General purposes

I 20. Were payments to sinking funds charged in the books of
the undertaking and included in the financial returns?

1 The department does not contribute anything directly to the gen-
eral rate, but makes an annual payment to the Common Good. This is
an indirect benefit to the rate of the city. The contributions have been
steadily increasing :

1894-5—1 year £8,260

1895-6 to 1898-9—4 years 9,00(1

1899-00 to 1901-2—3 years 12,500

1902-3 to 1904-5—3 years 25,000

1905-6—1 year 35,000

2 Of the £51,000 contributed in 1904-5, £46.000 were out of the cur-
rent year's profits, and £5,000 were transferred from reserve fund. All
was applied in aid of the general rate of the city.

3 The special Act of 1897 prohibited the municipality applying any
portion of the profits in aid of rate until 1912, but in 1902, Parliament
authorized the transfer of net profits in excess of £30,000 in relief of rates
with a limit of one-third. The amounts transferred were £17.607 for 1901,
£25,166 for 1902, £32,081 for 1903, £27,109 for 1904, and £25.320 for 1905.
The act was not passed until 1902, but the amount just given was set
aside in 1901, although not actually paid over until authority had been
given. Besides there were large sums set aside prior to 1897.

* The figures here given are for the Southern system only, and do
not include the large sums paid in aid of rates from the Northern sys-
tem. The total amount here given was contributed in three years,
1899-1900, 1900-1 and 1901-2. As the following pages will show, there
was an unappropriated balance for the year 1904-5 of £7,054.

488 NATIONAL CIVIC FEDERATION.

accounts. Also it is quite impossible for any municipality to em-
ploy any part of its sinking fund in providing capital or in any
manner other than its legitimate purposes, namely the repayment
of loan debt. Any part of the sinking fund not so applied must
be represented either by cash in the bank or invested in outside
securities or, where permitted by statute, invested in the authorized
loans of the same municipality, as at Liverpool — the only munici-
pality of the ones here treated which has any considerable amount
in its sinking fund unapplied. Manchester has £378 of sinking
fund unapplied represented by cash in bank. It should be borne
in mind, however, that the sinking fund may not be invested in
any other department of the same municipality unless that de-
partment has obtained statutory powers to borrow the amount and
is therefore under a statutory obligation to set aside out of reve-
nue a sinking fund for its redemption.

Municipalities. The statutory provisions outlined under in-
quiry D 25 supra have been obeyed in each instance. See J 3.

Companies. No sinking fund obligations in any instance.

I 21. Were there any charges which should properly be included
in expenses but which were actually paid from other
sources and not charged to the plant, such as the ser-
vices of the town clerk, treasurer, etc. ?

Glasgoiv. No; £400 were charged in respect of town clerk's
services.

Manchester. The tramways department has its own ad-
ministrative and financial staff, and bears the cost thereof. The
services rendered by the treasurer are comparatively unimportant.
The undertaking does not contribute towards the salaries and ex-
penses of the town clerk, city surveyor, city treasurer, city archi-
tect or professional auditors. The estimated value of this free
service is £500.

Liverpool. Yes; the undertaking contributes £2,000 per an-
num to the salaries and expenses of general officers charged to city
fund.

London C. C. All expenses applicable to tramways are
charged against tramways account.
Companies. No items omitted.

I 22. Were there any items which should be credited to the
income account, which were not so credited, such as free
transportation to firemen, employees or other persons?

Glasgow. All corporation tramway employees in uniform are
allowed to travel free on cars going to and from work. Tokens
are given to other employees of the department and each account
is charged with the expenses. No record was kept of the amount
or value of the free service.

Manchester. The traffic staff generally, if traveling to or
from their work and if in uniform, were allowed to ride free. No

TRAMWAY FINANCE. 489

entry was made in the accounts. The approximate value of this
free service was £6,000.

Liverpool. Passes were issued free to servants in uniform,
officials, policemen and four or five active members of the com-
mittee. The number issued during the past year was as follows :

Servants 45,074

Police 24,000

Official 12,615

Committee 2,450

Total 84,139

No entry was made of the value in the accounts. Depart-
mental tickets were sold to the water, electric supply and lighting
departments.

London C. C. All employees are entitled to a 2d. token per
da}7, provided they live one mile or over from work. This enables
them to obtain a 2d. workman's return ticket. Metal arm badges
are also issued as passes on the cars. The approximate value of
the whole of the free service was £1,293 and was credited to traffic
receipts and debited to general expenses.

London United. Free transportation was given to employees
in uniform, and a few complimentary passes have been issued by
the directors and managers. The approximate value was small
and could not be ascertained. No entry was made in the books.

Dublin. Officials in uniform going to and from work were
allov.ed to travel free. In addition complimentary passes were
given to outside individuals, but the value of this free transport
was very small in amount and no record was kept in any way.

Norwich. Free transportation was given to policemen in uni-
form, detectives not in uniform, the city engineer and three fore-
men and employees of the company in uniform going to and from
work. This free service was rendered voluntarily by the company,
and no record was kept of the amount or value.

I 23. Was there a storeroom account to which materials were
charged when purchased?

Glasgow. No material was issued from store unless the of-
ficial requisition form signed by the foreman in charge of the work
was presented to the storekeeper. All goods issued from store
were accompanied by an official dispatch note showing the nature
of the material and the account chargeable.

Manchester. Stores were issued on certified requisitions only.
These requisitions stated the purpose for which stores were re-
quired, generally by means of a job number. These requisitions
were afterwards summarized, the totals being posted to the various
accounts.

Liverpool. Charged out on written authority of superin-
tendent or other responsible official.

490 NATIONAL CIVIC FEDERATION.

London C. C. All stores were charged to the head of service
benefited by their use.

Companies. All goods issued from store were signed for by
responsible officials and charged to the proper account.

I 24. How did the rate of interest paid by the city compare

with the rate paid by private public service companies ?

Rate Paid Rate Paid City Lower

Towns. by City. by Companies. than Company.

Glasgow About 3 p. c. 4 p. c. 1 p. c.

Manchester Below 3£ p. c. 4 p. c. Over | p. c.

Liverpool About 3i p. c. 4 p. c. Over A p. c.

London C. C 3J-3* p. c. 4-4 \ p. c. 2-1 p. c.

Ixmdon United 3J-3i p. c. 4-4£p. c. |-lp. c.

Dublin About 3£ p. c. About '6$ p. c.

Norwich 3+ p. c. 4 p. c. 1 p. c.

I 25. What is the amount of the bonds or other liabilities of the
plant cancelled since it began operation?
Liabilities Sinlc Fund

Redeemed. Unapplied. Total.

Glasgow £449,275 £449/275

Manchester^ 74,150 £378 74,528

Liverpool 202,728 233,816 436,544

London C. C.2 208,364 208,364

Companies

I 26. In construction work, has a detailed record been kept of
expenditures, so that the amount spent to date is known?
Yes, in each instance.

I 27. Have records been kept so that it is known that the total
cost will exceed the appropriation before the indebtedness
for the excess is incurred?
Yes, in each instance.

I 28. Coal used during last year (ton — 2,240 Ibs.).

Towns. Kind. Price. Tons.

Glasgow Bituminous washed singles 6/4.814 l'^,'2(il

Manchester 3 Bituminous slack 9/4.11 78.1GU

Liverpool 3 Lancashire slack 6/10.5 ST>.r>(.»2

London C. C See note *

London United Derbyshire wash nuts 12/3 lii',537

Dublin Scotch bituminous 10/11 1(5.431'

Norwich Staffordshire bituminous 13/10

1 These figures are merely for the undertaking as now operated by
the city and as it stands upon the books at present, and do not include
the old system. The item of £74,150 includes £6,829 in respect of the
old plant, and that of £378, £28 likewise.

2 Besides this amount, which applies only to the Southern system,
liabilities to the extent of £117,045 for the Northern system and of £i>,H29
for general purposes have also been paid off.

3 The tramway departments of Manchester and Liverpool do not
generate current; they buy it from the electricity departments. These
figures are taken from Electric Supply Schedule IV., inquiry I 3U.

4 Current and steam were purchased from private companies as a
temporary measure while the power plant was being constructed.

TRAMWAY FINANCE. 491

I 29. Give quantity and cost of water used.

Quantity Cost per Total

Towns, (gallons). 100,000 gals. Cost.

Glasgow 45,933,700 £1 13s. 4d. £679

Manchester See note 3 to inquiry I 28

Liverpool See note 3 to inquiry I 28 ....

London C. C See note 4 to inquiry I 28

London United 26,946,900 £2 10s. 672

Dublin 1 9,810,000 £2 10s. 546

Norwich Pumped from the River

J— SHARE AND LOAN CAPITAL.
J 1. Share capital.

Municipalities. Have no share capital.

Amounts. London United. Dublin-. yorwien.

Authorized £2,500,000 £1,200,000 £264,000

Called up 2,010,042 1,200,000 2(54,000

Uncalled 239,958

Fully paid 2,010,042 1,200,000 264,000

No. of shareholders 2,500 5,000 9

J 2. Explain how share capital was issued.

London United. — The authorized share capital consists of:

125,000 ordinary shares of £10 each £1,250,000

125,000 preference shares of £10 each 1,250,000

£2,500,000
The called up capital consists of:

60,007 ordinary shares of £10 each, fully paid £600,070

39,993 ordinary shares of £10 each, £4 paid 159,972

£760,042
125,000 5$ preference shares of £10 each, fully paid. . 1,250,000

£2,010,042

The original issue of shares was made by prospectus; part
was allotted to the vendor company at par. Subsequent issues
have been made to the existing holders pro rata. Of the 100,000
ordinary shares issued 12,000 are held publicly. The remainder
are held by the underground electric railways.

The company issued to the vendor company in 1901 ordinary
capital stock of the nominal value of £600,000 in payment of
goodwill included in the sale. We have treated this as a dis-
count on the ordinary capital stock.

Dublin. The total capital of the company as authorized by
the memorandum and articles of association of the company is
£1,200,000, divided into 120,000 shares of £10 each. This is
divided into 60,000 shares bearing a preferential dividend of 6^
and 60,000 ordinary shares of £10 each. The original capital

1 The figure here given for the amount of water used is only the
quantity used at the Ringsend power station. Water for condensing is
supplied free by the Grand Canal Co. Water for traffic purposes cost
£301 of the total given.

492 NATIONAL CIVIC FEDERATION.

was issued by prospectus in 1876. Since that date the share
capital has been issued to shareholders in other companies whose
undertakings have been purchased by this company.

This company converted its share capital in 1881 and

1896 and added on conversion a nominal amount of £126,000

It also paid in 1896 on the purchase of the Dublin
Southern District Company a premium in shares
of 33,239

£159,229

In addition to the above premiums the company issued
its B. debenture stock at a discount in respect
of which they have taken out a policy of insurance
which is dealt with fully under I 19 24,704

£183,933

These amounts are not shown separately on the assets side
of the balance sheet, but are included in the item of capital outlay.
We have, however, shown them separately in the statement of
assets in this schedule.

Norwich. The whole of the share capital was taken up by
the promoters — the New General Traction Company, Limited — and
no prospectus was issued or any shares offered to the public. The
shares were issued at par.

J 3. Loan capital. (Debenture stock or mortgages are analagous
to bonds in the United States.)

Out-
Towns. Authorised. Issued. Paid Off. standinff.

Glasgow £2,700.000 £2,232,358 £449,275 £1,783,083

Manchester1 . . 1,971,206" 1,550.874 67,321 1,483,553

Liverpool (?) 1,869,130 202.728 1,666,402

London C. C.2 Note3 2,415,329 208,364 2,206,965

London United 2.500,000 1,331,000 1.331.000

Dublin 812,000 812,000 812,000

Norwich 66,000 66,000 66.000

1 The figures here given are only for the present system and do not
include the amount of loan debt authorized, issued and paid off in con-
nection with the old horse car lines owned by the city. The figures
for the present undertaking including the part of the old still kept on
the books would be, respectively, £1,999,131, £1,578,799, £74,150 and
£1.504,649 (see 25 and J 8).

2 The amounts actually borrowed and paid off are in excess of the
figures here given, because these do not include the loans repaid out of
proceeds from sales but only by means of sinking funds. As noted
before, this report deals with the Southern system only.

8 The London County Council's borrowing power is conferred by
its annual Money Act which limits the amount of borrowing for
each financial year (April 1 to March 31) for each purpose. Powers
not exercised within the year are surrendered. The Council mists
money for capital expenditure by issue of stock and the proceeds of
each issue are subsequently appropriated according to the actual expen-
diture.

TRAMWAY FINANCE. 498

J 4. Explain how capital was raised?

Glasgow. By public issue and subscription.

Manchester. The loan debt at March 31, 1905, consisted of
mortgages falling due at various periods up to 1932-'3. The loans
for periods of years are obtained by public subscription after
advertisement in local newspapers. Money is borrowed from
private investors, and in some cases a commission is allowed to
agents introducing loans at the rate of .05 of 1 per cent, for each
year the loan is to run. Money raised under mortgage is in sums
of not less than £ 100, repayable in periods of years. The powers
granted by Parliament allow a longer term for the redemption of
debt, and money is reborrowed to replace loans falling due.

Liverpool. By issue of corporate stock to the public and by
mortgages upon the rates, etc.

London C. C. Stock is issued to the public and the issue an-
nounced by public advertisement.

London United. The company issued a prospectus in No-
vember, 1901, relating to an issue of £825,000 at 4 per cent.
Of this amount of first mortgage debenture stock, £450,000 at par
were issued to the vendor company in part payment of the purchase
price and £375,000 were offered for public subscription. The
whole amount of £825,000 is secured by a trust deed, constituting
the debenture stock a first charge upon the whole of the assets
and undertaking of the company, including its uncalled capital,
subject only to an annual charge not exceeding £750. The trust
deed contains a covenant by the company under which, while re-
taining the power to issue debenture stock to an amount equal
to the nominal capital of the company, the company agrees that
any future issue of debenture stock beyond £825,000 shall only
be made for the purpose of capital outlay and then only to the
extent of 50 per cent, of such outlay, after an equal amount shall
have been first provided by calling up share capital of other funds
of the company. The whole of the debenture stock issued shall
rank pari passu. Under the articles of association the directors
may borrow an amount equal to the nominal capital of the
company.

Dublin. The debt now outstanding is divided as follows:
Mortgage bonds, specially charged upon the Dublin

United Tramways Co £150,000

Ditto upon the Dublin Southern District Tramways Co . 62,000
Mortgage debentures, 3^$, charged upon the whole
of the undertaking subject to the mortgage

bonds, redeemable in 1938 at par 300,000

" B " debenture stock, 3£$, charged upon the whole
of undertaking subject to the mortgage bonds and
mortgage debentures, redeemable in 1938 at par. . 300,000

Total . ... £812,000

494 NATIONAL CIVIC FEDERATION.

" B " debenture stock was issued at a discount of £24,704 and
is redeemable at par in 1938. To produce this discount the direc-
tors have taken out a policy of insurance, and the premiums are
charged against the yearly revenue accounts of the undertaking.
This policy is worth about £3,400 on a 2£ per cent, basis. The
trust deed in favor of the debenture holders does not impose any
limit to the amount to be borrowed, but any subsequent borrowed
money will rank after the present liability.

Shares have been issued by private sale. All the bonds were
issued at par except the B debenture stock, the discount upon
which appears in the balance sheet as an asset.

Norwich. The whole of the mortgage bonds were taken at
par by the promoters and no public issue was made.
J 5. If funds have been secured from any other sources for the
construction and extension of plant, give amounts, dates
and sources fully. (See also inquiry J 6.)

In no case is this separately shown in the balance sheet, but
where it is not so shown it is quite possible that extensions have
been made out of revenue and charged to ordinary maintenance
without being separately distinguished. In this connection it is
important to bear in mind that while some municipalities have
not charged revenue with outlay of this character, yet they are
repaying by means of sinking fund which is charged to revenue
the whole of the capital which has been borrowed with the sanc-
tion of the central government for the purpose of making the outlay.
There are several cases where outlay of a temporary nature has
been charged to the revenue account, notably the London County
Council, where the entire cost of temporary generating station*
has been written off out of revenue. The same is true of the Glas-
gow horse traction -system.

Glasgow. Out of depreciation and permanent way renewals
fund and general reserve fund £531,023.

Manchester. There is a temporary overdraft on the bankers
of £139,423 on capital account., but against this the department
has a credit balance of £207,937 on revenue and renewals fund bank
accounts and cash in hand on revenue account.

Liverpool. An overdraft on the bankers of £27,967 and a
charge against revenue fund of £56,620; total £84,587.

London C. C. None.

Companies. None.
J 6. How has working capital been secured?

Glasgow. The working- capital of the undertaking amounts
to £243,096, which is provided as follows :

Loan debt outstanding £1,783,083

Surplus provided out of revenue applied in reduction

debt 449,275

Depreciation and permanent way reserve fund £777,637

General reserve fund 32,590

' 810,227

Total £3,042.585

TRAMWAY FINANCE. 406

Deduct : Capital outlay £2,763,381

Cars building 18,875

Alterations in course of construc-
tion 17,233

£2,799,489

£243,096
This amount is made up as follows:

Stores £89,979

Debt owing to plant 9,539

Cash in hand in bank 9,160

Investments 167,000

£275,678

Less amounts owing to sundry creditors 32,583

£243,096
Manchester. The capital account stands as follows:

Loan debt outstanding £1,504,649

Amount set aside out of surplus revenue and applied in

reduction of debt 74,150

Benewals and depreciation fund 185,086

Total £1,763,885

Deduct amount expended on capital outlay 1,616,804

£147,081
This amount is made up as follows :

Debts due to plant

Sundry stores, etc

Cash in hand and in bank on revenue ac-
count £220,800

Less temporary overdraft from bankers on

capital account 139,423

81,377

£215,741
Deduct : Sundry creditors 68,660

£147,081
Liverpool. The capital account stands as follows:

Loan debt outstanding £1,666,402

Surplus provided out of revenue and applied in reduc-
tion of debt 202,728

Reserve renewals and depreciation fund 271,019

Insurance fund 2,058

£2,142,207
Of this amount there has been expended on capital

outlay 1,955,433

£186,774

4»6 NATIONAL CIVIC FEDERATION.

Made up as follows:

Loan to the water committee £150,000

Sundry stores 18,178

Debtors to plant 10,;>r*

Cash in hand and in bank on general ac-
count £113,639

Lees overdraft from bankers on capital ac-
count 27,697

85,942

£264,392

Less : Sundry creditors £52,298

Contribution in aid of rate 25,320

77,618

London C. C. -
London United.

Dublin. The working capital of the company is £55,118,
provided as follows:

Share capital £1,200,000

Loan debt outstanding 812,000

£2,012,000
Deduct capital outlay 1,809.956

£202,044
Add surplus and other funds ' 33,607

£235,651
Deduct premium account 180,531

£55.118

This amount is made up as follows:
Cash in hand and in bank

£67,011

Investments

1,900

Stock of stores, etc

23,677

Debts due to the company

3,700

Policy .

3,400

()0 fiC«

Less amount due to sundry creditors. .

44,570

»/

£55,118

Norwich. Working capital has been provided as follow* :

Share capital £264,000

Loan debt 66,000

. £330,000

TRAMWAY FINANCE.

Add surplus and other funds ,

£334,795
Deduct amount expended on capital outlay 331,654

£3,141
This is made up as follows :

Sundry debtors £247

Stock in stores, etc 3,675

Investments 5,522

Cash in bank and in hand 593

10,037
Deduct amounts owing to sundry creditors 6,896

£3,141
SUMMARY OF SOURCES OF WORKING CAPITAL.

Glasgow Surplus reserves provided out of profits.

Manchester Loans raised for capital purposes but unexpended,

renewals fund and bank overdraft.
Liverpool Surplus reserves provided out of profits.

London C. C. Profit unappropriated and part of reserve fund

uninvested.

London United Capital stock, loans and reserve funds.
Dublin Capital stock, loans and surplus funds.

Norwich Capital stock and loans.

J 7. What provisions have been made for payment of capital
liabilities when due?

See inquiries B 3, D 22, D 25, I 19, I 20 and I 25.
J 8. Give the cash capital raised by the undertaking.

In the following table all items of premium added on conver-
sion of capital stock or loans to a lower rate per cent, have been
eliminated from the liabilities as shown in the balance sheets be-
low. We have added to the capital stock and loans appearing in
the balance sheets all items of premiums received on issue of the
same which have been credited to premium capital account or re-
serve or other funds in the accounts of the plant. We have also,
where possible, deducted from the capital outlay (as shown in the
balance sheets) all items of premium and good will which are thus
included.

Vol. III.— 33.

498

NATIONAL CIVIC FEDERATION.
Loan Capital Raised.

Towns.

Still Out-
standing.

Glasgow £1,783,083

Manchester 1 1,504,649

Liverpool 1,666,402

London C. C 2,415,329

Repaid by Total

Means of Capital Total Capital

Sinking Stock Capital Expended

Fund. Raised. Raised, on Work*.

£449,275 £2,232,358 £2,753,381

74,150 1,578,799 1,616,804

202,728 1,869,130 ' 1,916,258

208,364 2,623,693 8 2,623,693

Municipalities. £7,369,463 £934,517 £8,303,980 £8,910,136

London United £1,331,000 £1,413,792 £2,744,792 £2,702,013

Dublin 787,296 1,040,771 1,828,067 1,809,956

Norwich 66,000 264,000 330,000 331,654

Companies . . . £2,184,296 £2,718,563 £4,902,859 £4,843,623

Total £9,553,759 £934,517 £2,718,563 £13,206,839 £13,753,759

It will be noticed from the above table that the municipalities
have expended more capital than they have raised. This arises
from the fact that in many cases the surplus funds provided out of
revenue have been used in extension of works. In the case of pri-
vate undertakings the capital expenditure is less than the capital
raised. This is explained by the fact that private undertakings
employ part of the capital raised in providing working capital.

1 These figures are for the present undertaking and include £21,096
in loans still outstanding, £6,829 in debt repaid from sinking fund and
some capital expenditures for the old undertaking leased to the com-
pany, but now a part of the present undertaking (see J 3).

2 This item includes an amount for good will paid to the old com-
pany.

3 This item includes an amount for good will paid on the purchase of
the Southern system, the amount of which we were unable to ascertain.

TRAMWAY FINANCE.

498

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500 NATIONAL CIVIC FEDERATION.

K 3. Analysis of special items.

Glasgow. The total amount expended for " Par-
liamentary Expenses " was £15,857

Of which there has been written off out of profits 13,756

£2,101
Add preliminary expenses (electric traction) giving. . . . 4,845

£6,946
Capital outlay for "Works and Plant" consists of:

Land £107,395

Permanent way, track and roadway 830,401

Electrical equipment of line 562,398

Buildings and fixtures 416,196

Plant at power and sub-stations 387,420

Workshop tools and sundry plant 20,751

Cars 227,111

Electrical equipment of cars 171,043

Other rolling stock 7,196

Miscellaneous equipment, horses and harness 2,440

Miscellaneous uniforms 2,751

Miscellaneous 12,550

Office furniture 4,726

Lease of Govan and Ibrox tramways 4,057

£2,756,435

A fuller analysis of the above items is given in the annual
report to May 31, 1905. The above capital outlay does not include
the cost of the old horse traction plant, etc., £186,637, which has
all been charged to revenue account.

" Stocks on Hand " was made up of :

Cars building £18,875

Alterations in course of construction 17,233

Stores, spares, tickets, uniforms, etc 89,979

Total £126,087

" Invested Funds " represents £157,000 in the city securities
of Glasgow and £10,000 in those of Govan — a burgh to the west of
Glasgow.

Manchester. " Parliamentary Expenses " includes not only
what is ordinarily known as Parliamentary charges amounting to
£16,318, but "preliminary and formation expenses prior to run-
ning" of £25,288, which perhaps should be included in "Works
and Plant."

" Works and Plant " consists of the following items :

Permanent way £541,599

Overhead equipment 155,439

Land 69,302

Buildings and fittings 217,162

TRAMWAY FINANCE. 501

Jelling stock, cars £284,076

Boiling stock, sundry vehicles 4,257

Machinery and plant, car works 6,382

Office furniture 4,949

Leasehold properties 8,055

Total new undertaking £1,291,221

Old undertaking : Purchase of Carriage Co.

properties, etc £263,158

Balance of cost of old track being

loans still unpaid 20,819

283,977

£1,575,19S

" Debts Due " includes an item of £36,268 owing to Man-
chester from other local authorities for reconstruction of tramways.
" Cash " represents not only the cash on hand and in bank on
revenue account of £100,956, but also £119,844 on renewals account
and £378 on sinking fund account.
. Liverpool. " Parliamentary Expenses " of £57,995 consists of :

Expenses of issue of stock £49,467

Stamp duty on conveyance 2,837

Engineers' fees 2,967

Parliamentary charges, etc 2,724

Total '. £57,995

" Works and Plant " is made up of the following :
Purchase money paid Liverpool United Tramway and

Omnibus Co £567,375

Additional capital spent by company, but not included

in share capital 46,803

£614,178

Deduct : Profits not apportioned by the com-
pany for payment of divi-
dends £17,073

Decrease in stud and harness, cars,
omnibuses, wagonettes, etc.,

sold 112,099

Horses transferred to separate

account 495

Land, etc., sold during year 1905 117

129,784

Net amount paid £484,394

Compensation to solicitors, auditors and directors. . . . 17,362

Tramways lines : Old city £212,069

Old city extensions 5,100

Added area 40,653

257,822

502 NATIONAL CIVIC FEDERATION.

Reconstruction and extension of tramway for electrical
haulage, including paving, permanent way,

overhead electrical equipment, etc £608,274

Land and buildings1 £134,911

Cars 292,308

Machinery 6,742

Sundry rolling and other stock 8,331

442,292

Horses 560

Widening streets 9,857

Purchase of undertaking of Garston Co 20,257

Add outlay on Hatton Garden and Litherland prop-
erties, per foot note2 56,620

£1,897,438
The investment of £150,000 is a loan to the water committee.

London C. C. The capital outlay on works and plant for the
Southern system was composed of:

Horse and Cable Traction.

Permanent way and general including good will £601,197

Property and Wildings 385,048

Horses 29,831

Boiling stock 76,714

Machinery and plant 53,701

Harness and equipment 5,719

Office furniture 430

Advertising plant 1,034

£1,153,674
Electric Traction.

Sub-stations : Acquisition of land £20.741

Erection of buildings 41,690

Machinery and plant 35,817

1 Amount expended on land and buildings to December 31,

1905, was £166.739

Deducting the amount expended to December 31. 1904, on
purchase of Hatton Garden site, transferred to
reserve, renewal and depreciation account 31.S2S

Leaves £134.011

2 On December 31, 1904, the municipality had expended £31,828
upon the new offices in Hatton Garden which item was included in the
capital outlay. This amount together with the further outlay during
1905, amounting together to £44.716, has now been charged against the
reserve renewal and depreciation account. This account has also been
charged with the expenditure upon the Litherland tramways and car
shed amounting to £11,904. These two items amount to £50.620 and
are not included in the capital outlay as shown by the balance sheet
published. We have, however, included the amount in the statement
of assets and have made a corresponding correction in the reserve, etc.,
account treating the outlay as an investment of the reserve fund.

TRAMWAY FINANCE. 503

Cables and ducts £137,408

Permanent way 793,101

Alterations to bridges ' 13,591

Stopping place signs 235

Depots : Acquisition of land 20,140

Erection of buildings 130,133

Machinery and plant 1,021

Rolling stock 240,158

Workshop tools and sundry plant 3,491

Commission of consulting engineer 15,169

Salaries 4,071

Preliminary expenses 204

Street widenings, etc. : Harleyford street 11,782

Camberwell New road 1,200

Queens road, Peckham 67

£1,470,019

The expenditures for the Northern system (not included in
this investigation) were:
Purchase money: North Metropolitan Co. . £573,951

London Street Co 218,398

£792,349

Professional charges 9,423

Stamp duty and incidental expenses 4,236

Alterations and extensions 43,314

Electric traction: Acquisition of land, sub-station. . . . 15,391

Plans, etc., of proposed buildings 612

Permanent way 3,982

Alterations to bridges 1,763

Plans of proposed depots 265

Salaries, engineer's department 203

£871,536
The capital outlay not allocated to either is :

Horse traction, preliminary expenses £290

Electric traction : Western generating station :

Acquisition of land 80,789

Erection 198

Eehousing 46

Electric traction : Eastern generating station :

Acquisition of land. 25,593

Erection of buildings 89,401

Pier and river wall 32,413

Machinery and plant, part temporarily installed

at Loughborough, Deptford and Streatham 67,914

Eehousing 8,164

Commission of consulting engineer 1,776

Salaries of electrical engineering staff '.1,172

Tramway subway : Works, etc 80,222

Alterations to bridges, preliminary expenses

504 NATIONAL CIVIC, FEDERATION.

Hammersmith car shed £9,109

Street Improvements: Ked Lion Street, Garratt Lane. 24,000

Fulham Palace Koad '. 34,500

Denmark Hill 4,000

Archway Eoad 500

Southampton Eow 14,506

£474,625
The total assets for the three accounts are:

Southern Northern General — not

System. System. Allocated. Total.

Capital outlay £2,623,693 £871,536 £474,715 £3,969,944

Debts due 23,043 13,191 1,228 37,462

Stocks 28,608 28,608

Cash 30,363 9,652 316 40,331

Invested funds 31,541 59,759 91,300

Total £2,737,248 £954,138 £476,259 £4,167,645

London United. Owing to the fact as previously explained
that the company purchased the undertaking for a lump sum,
we cannot ascertain the actual amount expended under the head
of " Parliamentary Expenses." We have therefore made a careful
estimate of the amount, bearing in mind that the tramways run
through the districts governed by 30 local authorities, and that
the company has promoted bills in Parliament each year since
1898, all of which have been opposed by the local authorities. \Ve
consider £100,000 a fair estimate.

The capital outlay on " Works and Plant " is made up of :
Street widenings, etc., and other public improvements. £645,000
Outlay on works and equipment 1,957,013

£2,602,013

The company has been compelled, in order to obtain the con-
sent of the various local authorities, to carry out many public
improvements connected with streets and bridges. The outlay to
December 31, 1905, amounted to £645,000; there are several out-
standing improvements which have yet to be carried out which
may bring this total up to £745,000.

" Debts due " included £7,900 deposited with local authorities,
to insure the due performance by the company of its obligation
to repair the roads. Interest is allowed by the various local au-
thorities.

Dublin. *The expenditure under the head of " Parliamentary
Charges " amounts to £49,850. In addition, " Parliamentary Ex-
pemes " includes the sum of £9,183, being payments to local author-
ities to obtain their consent to the granting of powers to the com-
pany. • The revenue account has been debited with the sum of
£1,552 — the expenses of formation of the company.

TRAMWAY FINANCE. 505

The officials of the plant are unable to subdivide the expendi-
ture on capital outlay owing to the fact that the company has at
various times purchased other undertakings for lump sums. They
have, however, given us certain particulars of the amounts
inchwled in the balance sheet in respect to premiums on stocks and
discount on " B " Debenture stock, amounting to £183,933. See
inquiry J 2.

The company has borne the expense of widening a street
which cost £8,000. It obtained property valued at £1,000, reduc-
ing the actual cost to £7,000, which is included in the capital out-
lay. The local authority imposed this > condition before giving their
consent to the laying of a double line by the company.

" Invested funds " includes the policy to provide the discount
on "B" debenture stock valued 'at £3,400.

Norwich. The construction and equipment of the line was
let by contract for a lump sum and no analysis can therefore be
given of the capital outlay of £323,354, except that £44,000 of this
amount was for street widenings, new streets and bridge improve-
ments.

K 4. Do the values above given represent the original cost 'of the
present assets, their present market value, or cost of
duplication? State how values were fixed.

Glasgow. Original cost.

Manchester, Liverpool, London C. C. The new track and
equipment -is at the original cost; the part of the undertaking
purchased from the company is at the price paid.

London United, Dublin. Original cost, including the plant
and equipment taken over from the old companies at the price paid.

Norwich. Original cost. A lump sum was paid to a con-
struction company for the whole undertaking.

NATIONAL CIVIC FEDERATION.

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TRAMWAY FINANCE. 507

K 6. Special items analysed where possible. (See also I 19, 20.)
Municipalities. Two of the four plants had bank overdrafts.
This might appear misleading unless attention is drawn to the
fact that in each case the municipality had cash to its credit in
the bank on other accounts, and that the subdivision was merely
an accounting convenience in order to keep each fund distinct.
These overdrafts were as follows:

Overdraft on Set off against Cash in, Bank
Capital • Revenue On What
Account. Account. Account. Amount.

Glasgow

Manchester £139,423 Revenue £110,893

Liverpool 27,697 Revenue 113,639

London C. C

Liverpool. " Sundry Creditors " is made up of :

Sundry accounts £52,024

In aid of rate 25,320

Unclaimed dividends ..... , 274

£77,618
" Sinking fund unapplied " is the total of several funds :

Tramway sinking fund £84,090

Mortgage debt sinking fund 1,360

Tramway undertaking sinking fund • 50,247

Reconstruction, extension and equipment sinking fund 96,190

Litherland tramways and car shed sinking fund 682

Hattoii Garden land and buildings sinking fund 1,247

£233,816

Although the Hatton Garden and Litherland outlay has been
taken out of reserve fund provided out of surplus profits of previous
years, yet the municipality is charging present and future profits
with the provision of a sinking fund in respect of this outlay.

London C. C. The total liabilities for the three accounts are :

Southern Northern General —

System. System, not allocated. Total.

Land secured £2,415,329 £754,491 £464,886 £3,634,706

Sundry creditors 39,894 59,766 1,446 101,106

Loan debt paid 208,364 117,045 9,829 335,238

Reserve fund 66,607 66,607

Profit and loss balance 7,054 22,836 98 29,988

Total £2,737,248 £954,138 £476,259 £4,167,648

London United. . . " Sundry Creditors " consists of unpaid div-
idends of £36,806 and accounts payable £40,727. \

Dublin. " Sundry creditors " is made up of :

Debenture interest accrued £2,494

B debenture stock interest 1,662

Sundry unpaid accounts 4,012

Wayleaves accrued 583

Dividends on share capital 35,100

£43,851

508 NATIONAL CIVIC FEDERATION.

Norwich. "Sundry creditors" consists of: Tradesmen's ac-
counts £152, conductors' deposits £144, dividend on ordinary shares
£6,600; total £6,896.

Notes to L 1, 2 and 3, p. 509.

1 Southern system only, but including both electric and horse trac-
tion as follows :

Receipts. Electric. Horse. Total.

Passenger traffic receipts £535,754 £128,168 £663,9^2

Rents received ' 304 1,070 1,974

Other receipts, sale of stores, etc 1,766 1,135 2,901

Advertising on cars and tickets less ex-
penses " 7,537 1,648 9,185

£545,361 £132,621 £677,982

The rent received from the North Metropolitan Tramways Company
under lease dated October 14, 1897, for the Northern sys-
tem was :

Lines, etc., at £45,000 per annum, less income tax £42,750

Depots, buildings, etc., at £14,245 per annum, less income tax 13,594
Percentage (12£) on excess of gross receipts over those of

1895, less income tax 816

Percentage on extensions, less incofne tax 2,506

Rents from tenants of property, Parklmrst Rd 268

Miscellaneous receipts 2

Total for Northe/n system £59,846

The account for the General system — not yet allocated to either South-
ern or Northern system was as follows :
A deficiency on revenue account of £18,467 made up as follows :

General expenses £1,261

Interest on loan debt £12,04S

Sinking fund 4,514

16,562

Cost of training school 145

Parliamentary expenses 3,310

£21,278
Reduced by :

Rents* received £1,109

Other receipts 23

Interest on cash balances 1,679

' 2,811

Net deficiency £18,467

This deficiency was charged against the balance of profits of pre-
vious years standing to the credit of the " appropriation account " at
March 31, 1904 (£18,565), reducing it to £98.

2 On tickets only ; credited to traffic receipts.

3 Including rents received, user of lines, and sundries, less amounts
due to locafl authorities for running powers.

4 From express service.

TRAMWAY

FINANCE

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NATIONAL CIVIC FEDERATION.
L 4. Expenditures further analyzed.

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TRAMWAY FINANCE. 511

L 5. Analysis of special items.

London C. C. The expenditures for "Maintenance" were di-
vided between the electric and horse traction systems as follows:

Electric Horse

Traction. Traction.

Permanent way £9,732 £9,203

Buildings 2,036 2,216

Boiling stock 24,666 4,162

Machinery and plant 2,936 1,347

Cable plant 1,030

Office furniture and advertising plant. 193 43

Harness and equipment .... 508

Power plant buildings 171 ....

Power plant cables 987 ....

Power plant machinery and plant .... 898 ....

Power plant surplus property repairs. . 170 ....

£42,819 £17,479

The "Transportation" expenses of horse traction lines were
apportioned as follows:

Forage . £25,916

Granary wages 1,926

Horsekeepers' wages 13,409

Shoeing 2,763

Veterinary attendance and horse superintendence 465

Sundry stable expenses 386

Loss on sale of horses 2,233

Horse hire (Catford cars) ' . . 7,822

Gas and water 1,124

Platform expenses, drivers and conductors 37,066

Other wages 4,802

Notes to L 4, p. 510.

1 Less advertisements on tickets.

2 Including an item of £8,360 for " depots expenses."

3 Including maintenance of cable plant as well as electric and horse
systems.

4 The figures include, of course, both electric and horse traction, but
for the Southern system only.

• Cost of steam purchased as well as electricity.

• Included in expenditures upon cars.

7 Included in expenditures on miscellaneous equipment.
s Including an item of £1,413 for " depot expenses."
' This item includes £2,000 as an annual contribution to the city fund
to cover salaries and other expenses not otherwise charged against the
tramway undertaking, and £1,219 for expenditures in connection with
management of securities.

10 Included in rents.

11 This amount opposite " other general " expenses includes expendi-
tures for licenses, for management of debenture stock (£827) and stables
(£2,130).

512 NATIONAL CIVIC FEDERATION.

Car service supplies and expenses £'!.('*~>4

Uniforms (H;S

Ticket check 582

Clearing and sanding track 1,121

£103,237
The "Transportation" charges of the electric lines were:

Hired power, current anfl steam 93,584

Power plant wages and salaries 5,964

Fuel for power 2,850

Light for generating and sub-stations 715

Lubricants and Avaste, water and stores 1,025

Miscellaneous supplies, etc., for power plant 4,684

Gas and water 320

Platform expenses, motormen and conductors 99,010

Other wages 18.986

Car service supplies and expenses 16,172

Uniforms 2,703

Ticket check 1,912

Clearing and sanding track 7,077

Total £255,002

The "General" expenses of the two systems were:

Electric. Horse.

General office salaries £7,756 £1,741

Rent, etc 1,538 3,706

Office expenses 2,332 616

Legal expenses 331 36

Injuries, damages and claims 9,734 1,131

Licenses and excise duties 657 234

Insurance — fire, boiler, accident 535 159

Superannuation fund 201 45

Workmen's compensation 93 3

Travelling allowances (employees) ... 1,157 136

Total £24,334 £7.807

The totals for the two systems were:

Maintenance £42,819 £17,479

Transportation 255,002 103,237

General 24,334 7,807

Total £322,155 £1 .1 38,583

Dublin. As regards paving, it should be noted that in addi-
tion to paving 18 inches*on each side of the track, the company in
the case of Monkstown road were required to pave the whole of
the street for a distance of 2 miles, being 6 feet on each side of
the track. This cost £57 per yard of street, or a total cost of about
£10,032. The repair of this street has been borne by the tramway
company, but has not cost much beyond the repair of the track.

TRAMWAY FINANCE. 513

The local authority imposed this condition before agreeing to
extra powers being granted to the company.

The city compels the company to sand the track up to their
paving limit. The matter was the subject of legal proceedings
which the company took up to the House of Lords, whose decision
Avas against the company. The city does not sand the remainder
of the streets.

Norwich. During the year exceptional outlay has been made
on maintenance and repairs, including the renewal of several im-
portant junctions and a number of crossings, etc., amounting to
about £1,300.

In addition to the paving between the rails and 18 inches
beyond on each side, the company has to maintain the whole width
of the roadway where there is a less space than three feet between
the footpath and the rail, and also the junctions between the pav-
ing done by the company and the city. The length of street which
the company is bound to repair, being less than three feet in width,
is about one mile. The question of the obligation of the company
to keep in repair the junctions is at present the subject of litiga-
tion and accounts for the large item of legal expenses in the reve-
nue account.

Notes to M 1, 2 and 3, p. 514.

1 Income from investments. The sinking fund is paid over annually
to city chamberlain in reduction of debt and is not invested in any
form.

3 Payment to the " Common Good " fund, not directly in aid of
rates.

3 Parliamentary expenses.

* The amount of £5,000 transferred from the reserve fund was in
order to make the contribution in aid of rate £51,000, the profits of the
year only allowing a contribution of £46,000.

"The city has purchased the site of the Infirmary at a cost of
£400,000. Part of the land has been added to the street on all four sides
and the tramway undertaking is charged with the interest, sinking fund
and other charges relating to £100,000, but neither the capital account
nor the liabilities of the tramway department have been charged with
capital cost.

6 This item consists of bank interest of £2,718, of interest from loan
to water department of £4,108 and £2,747, the income derived from the
investment of sinking funds numbers 2 and 4 in following note, which
are credited with such an annual installment as will repay the debt
without any accumulating interest.

* This amount is composed of the following payments :

1. Tramway undertaking sinking fund £13,915

2. Tramways sinking fund 7,007

3. Reconstruction, extension and equipment sinking fund .... 29,999

4. Mortgage debt sinking fund 170

5. Litherland tramways and car shed sinking fund 349

6. Hatton Garden land and buildings sinking fund 873

7. Cancellation of debt account 2,984

£55,297
The above sinking fund installments vary in principle. Numbers

1 and 3 are accumulating funds ; numbers 2 and 4 are not accumulating ;

numbers 5 and 6 are optional as already explained ; number 7 is an

annual repayment of principal.
Continued on p. 515.
Vol. III.— 34.

514

NATIONAL CIVIC FEDERATION.

M— PROFIT AND LOSS.

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III

TRAMWAY FINANCE.

515

M 4. Analysis of special items.

London C. 0. The division of the accounts between electric

and horse traction is as follows :

Electric, Horse.

Balance from revenue account £223,205 £4,099

Against which the following items were
charged :

Interest on loan debt 40,257 27,289

Sinking fund installments 44,405 25,003

Rates and taxes 19,158 4,628

Loss on horse traction 52,821 52,821

Total £156,641

Subtracting these amounts from the gross

profit above, leaves as net profit £66,564

£4,099

Notes to M 1, 2 and 3 continued from p. 513.

8 Leasehold outlay.

8 Composed of £261, cost of installing electric lighting in head
office, and £1,941, expenditure in connection with proposal to run
electric cars by cable traction (since abandoned).

10 The dividends paid by the company have been: In 1902, 8 per
cent. ; 1903, 8 per cent. ; 1904, 6 per cent. ; 1905, 3 per cent.

n The company has to pay annual sums by way of wayleaves to the
various local authorities. These amount to £5,527 in all, of which only
£1,630 had been incurred in 1905. The wayleaves are on a sliding
scale and increase periodically. The present value of these annual
charges at 4 per cent, up to the time when the various local bodies may
purchase is about £100,000.

u " Maintenance Fund."

M Accident insurance.

14 The credit balance of profit and loss account at the end of the
previous year was decreased £11 to allow £1,000 to be credited to the
reserve fund.

18 Liquidation of balance of expenditure for temporary generating
stations.

TAXATION OF GAS, ELECTRIC SUPPLY

AND TRAMWAY UNDERTAKINGS

IN GREAT BRITAIN

By MILO R. MALTBIE

The principal authorities to be consulted are :

1. Acts of Parliament and sessional papers.

2. Eegulations of the Board of Trade, Local Government
Board and the Light Eailway Commissioners.

3. Standing Orders of the House of Commons and the House
of Lords.

4. Browne & McNaughton: "The Law of Eating * *"

5. Michael & Will : "The Law Eelating to Gas and Water/'
fifth edition.

6. Newbiggrng, Thomas and Wm. : "Valuation of Gas, Elec-
tricity Works * *"

7. Eobertson: "The Law of Tramways and Light Eailways
in Great Britain/' third edition.

8. Eyde: "The Law and Practice of Eating * */' second
edition.

The British system of taxation is so complex and the various
parts are so interwoven that the situation can be portrayed more
easily and clearly by a single report for the three subjects of in-
quiry than by three separate statements in schedule form which
would involve considerable duplication. Not only will the pay-
ments made to the local authorities in the form of "rates" be con-
sidered, but all payments to local or central authorities which must
be made by companies or municipalities operating the three kinds
of undertakings considered in this investigation. Many of them
are fees and not taxes, if we adopt the distinction made by econo-
mists, but they may be treated here without great injury to the
strict definition of "taxation."

For the purpose of this investigation it is more important to
ascertain whether companies and municipalities are subject to the
same or to equal burdens than to describe in detail what taxes or
fees are imposed and how the present conditions developed histor-

TAXATION. 517

ically; but to settle the former, a glance at the latter will be nec-
essary.

STAMP DUTIES.

The most numerous obligatory payments to the central gov-
ernment, but not the most important, are the stamp duties. For
example, all conveyances or transfers of property must bear stamps
ranging from 6d., when the consideration is £5 or less, to £1 10s.,
when it is more than £275 but not over £300; with an extra 5s.
for every additional £50 or part thereof. All issues of loan capital
must be stamped at the rate of 2s. 6d. per £100. Eeleases, surren-
ders, etc., at 6d. per £100. Contract notes for over £5 but less
than £100, Id., and for £100 or over, Is. Agreements under hand
pay 6d. ; under seal, 10s. Upon all receipts for £2 or over, a Id.
stamp must be affixed. These, and others which might be given,
apply to companies and municipalities alike. The amounts spent
in any one year are usually insignificant.

There are other duties which apply alone to companies.
The more important ones for companies whose liability is limited
by the share capital are as follows : ( For details see the Companies
Act, 1862, c. 89; Stamp Act, 1891, c. 39; Financial Act, 1899, c.
9; and amendments.)

Fee stamp on notice of office 5s.

Fee stamp on Articles 5s.

Deed stamp on Articles 10s.

Deed stamp on Memorandum 10s.

Fee stamp on Memorandum as follows:

For registration of a company whose nom-
inal capital does not exceed £2,000 £2 Os.

For registration of a company whose nom-
inal capital exceeds £2,000 the above
fee of £2, and for every £1,000 after
the first £2,000 up to £5,000 £1 Os.

For every £1,000 of nominal capital or part
of £1,000 after the first £5,000 up to
£100,000 5s.

For every £1,000 of nominal capital or part

of £1,000 after the first £100,000 Is.

With a limit of £50 as the maximum fee stamp. It will
be seen that the limit of £50 is reached when the capital of
the company is £525,000.

Duty on share capital per £100 is 5s.

Combining all of these fees, one finds that for a nominal share
capital of £100 the total would be £3 15. ; £1,000 the total would
be £6; £10,000 the total would be £32 15s.; £100,000 the total
would be £280 5s.; £500,000 the total would be £1,300 5s.;
£1,000,000 the total would be £2,551 10s.

In terms of percentages, these amounts range from 3f per
cent, to .25 of 1 per cent, and decrease as the nominal share cap-
ital increases. If the share capital is increased at any time after
the registration of the company a duty of 5s. per £100 and fee
stamps according to the above scale with a limit of £50 must be
paid.

518 NATIONAL CIVIC FEDERATION.

In addition there are stamp duties and fees to be paid for the
registration of many documents., such as:

s. d.

Memorandum of satisfaction of mortgage or charge. 5 0
Contract for issue of fully paid or partly paid

shares 5 U

Consent of board of trade to change of name 5 0

Special resolution 5 0

Copy of register of directors or managers 5 0

Declaration of compliance precedent to registration. 5 0

Consent to act as director 5 0

List of persons who have consented to act as di-
rectors 5 0

Application for certificate of incorporation 5 0

Prospectus 5 0

Certain of these fees or stamp duties are not applicable to
companies organized by act of Parliament, but they are so small
that for practical purposes all companies with limited liability are
subject to the same charges whether incorporated under the gen-
eral company acts or by special act of Parliament.

None of the company acts apply to municipalities, of course,
and they therefore escape these duties. Upon the other hand,
there are charges which fall upon municipalities and not upon
companies. Approval of various acts relative to the issue of securi-
ties must be obtained from the central government, local inquiries
are held and special documents must be stamped. In the long run,
therefore, there is probably little, if any, difference between mu-
nicipal and company undertakings; and what difference there may
be is not important. In any one year the expenditures for fees
and stamp duties might be considerable for that twelve months,
but scattered over a long period of time as they come to be, they
are light.

PARLIAMENTARY CHARGES ON PRIVATE BILLS.

The expenses connected with the granting of powers are far
more important. The process of incorporation is comparatively
simple and inexpensive, but mere incorporation confers no author-
ity whatever to operate an undertaking in any specific locality.
To obtain statutory powers for this purpose, one must proceed
either by private bill or provisional order, or also by a light railway
order in the case of tramways. Bach avenue is open to munici-
palities and companies. Let us consider first the Parliamentary
charges connected with a private bill.

The Standing Orders of each House of Parliament and the
statutes specify in great detail the procedure which must be fol-
lowed in the preparation, introduction, consideration and enact-
ment of private bills. Those for the House of Commons alone cover
over 80 duodecimo pages in fine type and prescribe not merely the
course to be pursued after the measure has reached the Private Bill
Office of the House, but also certain things which must have been
done prior to that time, even several months before. (For a resume"
of this procedure see the history of franchise legislation in Great

TAXATION. 519

Britain.) The table of fees to be paid by the promoters while the
bill is before the House of Commons is:

On the deposit of the petition, bill, plan or any other

document in the Private Bill Office £6

For every day on which the examiners shall inquire

into the compliance with the Standing Orders £8

For Proceedings m the House.

On the presentation of the bill £5

On the first reading of the bill £15

On the second reading of the bill £15

On the report from the committee on the bill £15

On the third reading of the bill £15

********

The preceding fees on the presentation, first, second, and
third readings, and report, to be increased according to the
money to be raised or expended under the authority of any
bill for the execution of a work, in conformity with the
following scale:
If the sum be £100,000 and under £500,000, twice the amount

of such fees.
If the sum be £500,000 and under £1,000,000, three times the

amount of such fees.
If the sum be £1,000,000 and above, four times the amount

of such fees.

For Proceedings Before any Committee or the Referees.
For every day on which the committee or the referee
shall sit—

If the promoters of the bill appear by counsel £10

If they appear without counsel £5

Fees to Be Paid ~by the Opponents of a Private Bill.
On the deposit of every memorial complaining that the

Standing Orders have not been complied with. ... £1
On the presentation or deposit of every petition

against a private bill £2

For Proceedings Before the Examiners, or Before any Com-
mittee, or the Referee.

For every day on which the examiners shall inquire
into any memorial complaining of a non-compli-
ance with the Standing Orders £3

For every day on which the petitioners appear before

any committee, or the referees £2

GENERAL FEES.

£ *. <J.

On every motion, order, or proceeding in the
House upon a private bill, petition, or

matter not otherwise charged 1 0 0

For copies of all papers and documents, at the
rate of 72 words in every folio —

If five folios or under 2 6

If above five folios, per folio 0 6

For the copy of a plan made by the parties . . 1 0 0
For the inspection of a plan, or of any docu-
ment 5 0

For every plan or document certified by the
Speaker pursuant to any Act of Parlia-
ment 10 0 0

For every day on which any parties shall be
heard by counsel at the bar, from each
side . 10 0 0

520 NATIONAL CIVIC FEDERATION.

£ s. d.

For every day on which a committee of the
whole House shall sit on a private bill
or matter 600

For serving any summons or order on a pri-
vate bill or matter 1 0 0

For every order for the commitment or dis-
charge of any person 1 0 0

For taking any person into custody for a

breach of privilege or contempt 500

For taking any person into custody for any

other cause 2 0 0

For every day on which any person shall be

in custody 1 0 0

For riding charges, per mile (J

FEES TO BE PAID ON THE TAXATION OF COSTS ON PEIVATE BILLS.

£ *. a.

For every application or reference to "the
taxing officer of the House of Commons"
for the taxation of a bill of costs 100

For every £100 of any bill which shall be

allowed by the taxing officer 1 0 0

On the deposit of every memorial complain-
ing of a report of the taxing officer 1 0 0

For every certificate which shall be signed

by the Speaker 100

For copies of any documents in the office
of the taxing officer per folio of 72

words 1 0

********

FEES TO BE TAKEN BY THE SHORTHAND WHITER.

£ s. d.

For every day he shall attend 220

For the transcript of his notes, per folio

of 72 words U

The preceding fees shall be charged, paid, and received

at such times, in such manner, and under such regulations,

as the Speaker shall from time to time direct.

The House of Lords has its own elaborate rules not precisey
the same as the House of Commons and a schedule of fees some-
what dissimilar; hut it is not necessary to quote them here, fcr
those of the House of Commons give a general idea of their char-
acter.

The total amount of these fees for a single bill is quite vari-
able. If a measure is "opposed," that is, if persons appear againi
the bill in committee, the cost will be very much greater than if i;
goes through as an "unopposed" bill. Also the larger the amoun;
of money involved, the larger the fees. In the four years from
1898 to 1901, the House of Commons received upon an average
£41,187 per year in fees upon private bills., or about £170 for each
bill which was read the first time.1 Some of the measures were
dropped during the session and about one-third of them were op-
posed. If one may be allowed to strike a general average, the cost

aAppendix 6 to the Report from the Select Committee on Private
Business, Sessional Papers, 1902 (378).

TAXATION. 521

for an unopposed bill in the House of" Commons which is finally
enacted probably approximates £150. If the bill is opposed, the
fees may even exceed a thousand pounds. As every measure must
go to the House of Lords, the total fees may be nearly doubled.

Besides these Parliamentary fees, there are five other classes
of expenses: Printing and advertising, local expenses, Parliament-
ary agents' charges, counsel's fees and fees of expert witnesses.
Here again the cost is greatly increased if the bill is opposed and
the committee hearings prolonged. It is quite common for Par-
liamentary charges in such instances to reach several thousand
pounds. But as bills come and go, opposed and unopposed, the
average seems to be about £1,500 or £2,000, including Parliament-
ary fees. Now none of the expenses just mentioned is fixed specifi-
cally by Parliament as in the case of the fees of the House of Com-
mons or the House of Lords. The promoters and the circumstances
surrounding each bill determine how large or how small they shall
he. But indirectly the standing orders of the two Houses and the
provisions of the statutes are responsible for most of the expense.
For example, the cost of printing and advertising would be very
small if the promoters were not obliged to post notices and insert
advertisements in certain papers so that every one affected by the
bill may be duly advised of its proposals. Again, the charges of
Parliamentary agents would be very much less than they are if
the procedure had not become so technical that men with years
of experience must be employed to avoid shipwreck upon this or
that requirement, for a failure to obey means additional expense
and usually postponement to the next session, when the proceeding
must be begun anew.1

The big variation in the amount of expense incurred is due
to the extent of opposition, and this in turn is largely due to the
character of the measure. Powers to carry out an ordinary scheme
may be obtained through provisional orders, which are much less
expensive and for which the procedure is much simpler. But the
Board of Trade or Local Government Board will not issue an or-
der where the powers are at all unusual or where the scheme pro-
poses to depart from the beaten track in any essential point. Con-
sequently, the measures which take the shape of private bills are
such as are likely to arouse opposition.

Coming now to the question whether bills promoted by cities
are more expensive than company measures, or vice versa, it is
clear that there is nothing in the procedure which imposes larger
costs upon one or the other. There are certain differences due to

'An extreme instance of what a special act may cost under unusual
circumstances is the Water Act of the Derwent Valley Water Board (a
joint body representing the towns of Derby, Nottingham, Leicester and
Sheffield), cited in Redlich and Hirst, Local Government in England,
v. 2, p. 346-347. The Parliamentary charges for this bill amounted to
about £110,000, of which £60,000 or £70,000 were paid to solicitors,
barristers and technical experts for their professional services, so it is
said. The measure was long fought by vested interests and land-
owners.

522 NATIONAL CIVIC FEDERATION.

the fact that one is a public body and the other private, but the
fixed fees of each practically amount to the same. But as the
expenses for most of the items are largely within the control of
the promoters, an equality of requirements does not necessarily
mean an equality of expenses.

There is no published record which gives complete data upon
this point, but certain returns have been issued by Parliament
which throw some light upon the question. One published in 1900
shows that in the seven years from 1892 to 1898 some 434 bills
were promoted by town councils and other local authorities in Eng-
land and Wales at an expense of over £584,000 — an average of
nearly £1,350 per bill. In the same period, 102 bills promoted
by tramway, gas and electric companies cost nearly £190,000 — an
average of £1,860 per bill. (There were 31 companies which did
not make returns, so that these figures are not complete.) These
statistics would seem to indicate that a bill promoted by a private
company costs more than one fathered by a local authority and that
the difference is nominally £500 per bill.

This comparison is somewhat misleading. The bills pro-
moted by the local authorities include not only those relating to
gas, electricity and trams, but every other subject, such as paving,
refuse disposal, streets, police, bridges, harbors, drainage, ceme-
teries etc. Now as measures relating to gas, electricity and trams
usually arouse more opposition than other bills, the average for
all would be lower than the average for gas, electricity and train
bills alone. Consequently, if a comparison were made between the
same sort of bills promoted by municipalities and by companies,
the difference would be considerably less than £500 per bill. What
the exact difference would be cannot be obtained from the return,
for the bills promoted by local authorities are not differentiated
by subjects.

Several explanations may be offered for the difference that
probably exists: (1) That the company schemes are larger, more
novel and therefore more likely to arouse opposition; (2) that
private corporations controlling public utilities are viewed with
suspicion, and their plans frequently opposed to secure conces-
sions; (3) that companies are more liberal in retaining counsel
and expert witnesses than cities; and (4) that Parliament is more
hostile to company schemes, so that a greater preponderance of
evidence and legal talent is necessary. The last is entirely unten-
able. Parliament has always been very considerate of private in-
terests, and if it has favored either, it has been the private company
and not the municipality. The first doubtless has some force, for
cities are not so apt to go into big schemes ; but this is less true of
gas and tramway projects than of other enterprises. The second
is about as long as it is broad, for while public service companies
are sometimes considered free game by the municipalities, the
schemes of municipalities are freely opposed by individuals and
companies, for they know that Parliament will amply protect them
if they oppose and demand protective clauses. I am inclined to

TAXATION. 523

the opinion that the third factor offers the principal explanation.
The Parliamentary return above referred to shows that the expen-
ditures of companies, whether opposing private bills or provisional
orders or promoting provisional orders, are always upon the aver-
age considerably in excess of the expenditures of local authorities.
Further, the proceedings of Parliamentary committees and the long
lists of Parliamentary agents, counsel and expert -witnesses in many
of the hearings point in the same direction.

Costs of Provisional Orders.

The second method of obtaining power to build and operate
a gas, electric light or tramway undertaking in a specific locality
is through a provisional order. This is a grant drawn up by some
department of the central government in the same form as a bill,
but which has no legal force until approved by Parliament. The
procedure governing application, consideration and issuance of
a provisional order is regulated largely by the rules of the depart-
ment having jurisdiction, although of course the statutes specify
certain requirements.

The chief advantage of the provisional order over a private
bill is that it costs much less. The fees to be paid the central de-
partments are small, the procedure is simple, and if any unusual
powers are wanted, the company or municipality ordinarily does
not attempt to get them through a provisional order but resorts
to a private bill. The principal expenses incurred are for advertis-
ing, serving of notices, preparation of maps and plans, holding of
inquiries and presentation to the department of expert opinion
favoring the project. The heavy charges for Parliamentary agents,
solicitors and continued hearings are wanting, so that the average
order costs about £1,200 less than a private bill.

Judging from the regulations and the statutes, the scale of
charges to companies and municipalities are practically the same.
But that there is some difference in the amounts actually spent
is indicated by the Parliamentary return above cited. From 1892
to 1898, the local authorities in England and Wales spent £141,-
474 in promoting 607 provisional orders, an average of £233. In
the same period 117 orders were obtained by tramway, gas and
electric lighting companies, costing £56,576, or £483 each; a dif-
ference of £250. But here again it should be noted that the aver-
age cost of all orders is less than of those relating to gas, elec-
tricity and tramways alone, so that the figures are not directly com-
parable. The average of £233 would be somewhat increased if
gas, electric and tram orders could be separated from the others,
but doubtless the difference would not be entirely obliterated, and
the explanation of the difference is similar to that given above rel-
ative to private bills.

Light Railway Orders.

The third method by which power to operate may be obtained
is through a light railway order. This procedure is not appli-
cable to gas or electrical undertakings, and indeed it was not ex-

524 NATIONAL CIVIC FEDERATION.

pected at first that it would be used to authorize tramways, but it
has been used for this purpose to some extent. The .subject is
more fully treated in the history of legislation in Great Britain,
and it will suffice to say here that a light railway order is an order
drawn up in the form of a bill, issued by the Light Eailway Com-
missioners but having no legal effect until approved by the Board
of Trade. It is analogous to a provisional order, if one substi-
tutes the Board of Trade for Parliament and the Light Railway
Commisioners for the Board of Trade. Virtually it is a delegation
of legislative powers to administrative bodies.

The procedure in detail is very similar to that for a provisional
order, but even more simple and slightly less expensive. Municipali-
ties and companies are treated alike. The scale of charges applies
equally to all. I have been unable to find a return showing the
exact costs, but judging from the data given above the expenses
for a municipal order are less than for an order promoted by a
company. The explanation would be the same as that given above
relative to private bills. In only one of the seven undertakings
examined are light railway orders in force — the London United
Company, which is operating lines under two orders.

THE INCOME TAX.

The only tax paid directly to the central government is the
income tax. The administrative machinery by which this tax is
assessed and collected in England and Wales is in the hands of
two sets of officials; one appointed by the central government, and
the other selected practically by the local land tax commissioners.
The persons named by the land tax commissioners and officially
designated by Parliament appoint additional commissioners, assess-
ors, usually two for each parish, collectors and such other clerical
assistants as are needed. The officials named by the Crown are
the commissioners of internal revenue, who name inspectors and
surveyors to represent them locally and to supervise the execution
of the law by the local officials.

As the Income Tax Act (5 and 6 Viet., c. 35), which is the
basis of the present system, was passed prior to the introduction
of electric lighting and tramways, the assessment of these under-
takings differs somewhat from that for gas and water works. The
latter come under "Schedule A" of the act, which declares that
assessable value to be the profits for the one year preceding the date
of assessment. This amount is determined by the assessor from
data secured in a return made by each taxpayer giving a descrip-
tion of his property, its income, etc., and from such other infor-
mation as he may obtain. This report soon finds its way to the
surveyor, who goes over the assessment and approves or calls for
a revision as he sees fit. The matter is next taken up by the local
commissioners, who formally fix the assessable value, usually
adopting the figures of the assessor unless a taxpayer appeals, in
which case the commissioners hear the evidence and make a final
decision. In London the procedure is somewhat different.

TAXATION. 52&

Electric supply and tramway undertakings are taxed under
"Schedule D." The value is the average annual "full amount of
profits or gains" for the three years preceding the date of assess-
ment. The procedure begins with the preparation by the assessors
of a list of those to be served with blank forms. When the forms
are returned, the assessor tabulates them, fills up the blanks and
delivers his return to the surveyor. The surveyor fixes the assess-
able values after consultation with the assessor and the taxpayer,
and with the aid of such other information as he may have. His
report then goes before the "additional commissioners," appointed
by the commissioners who were named by the land tax commis-
sioners. They review the entire report, raise or lower assessments,
fill up the blanks, decide appeals from the surveyor's dcision and
finally fix the assessable values, unless appeal is taken to the gen-
eral commissioners or to the special commissioners in London,
generally following the report of the surveyor.

The principal differences to be noted between the assessment
of gas and water works, and electricity and tramway undertakings
are the period considered and the method of fixing the value. In
the former only one year is considered; in the latter three years.
The former are assessed practically by the assessor; the latter by
the surveyor. But this difference is not essential; for although
the assessor is a local official and the surveyor an agent of the cen-
tral government and moved from one district to another, the land
tax commissioners and still more the appointees of the local in-
come tax commissioners are so far removed from the taxpayer
that they are quite independent. Further, the surveyor and in-
spectors of the central government indirectly have considerable
influence and thus centralize the administration much more than
it would seem at first. As a result the principles followed by the
assessors and surveyors are very nearly uniform throughout the
country.

When once the assessment value is fixed, the remainder is
simple. The tax rate is fixed annually by Parliament at — s. or
— d. in the pound. For 1904 and 1905 it was Is. in the pound,
or 5 per cent. This means that if a company or department has
been assessed at £100,000, the tax to be paid to the collector upon
January 1 amounts to £5,000. The rate varies from year to year
according to the needs of the central government. Since 184.2
the lowest rate was 2d. in 1874 and 1875, and the highest Is. 4d.
in 1855 and 1856. It was Is. 3d. in 1903.

Whether municipal undertakings shall be assessed like private
companies was settled many years ago.1

Both are upon the same footing, the universal test being
whether there is a profit. If there is, the undertaking is assessed;
if there is none, it is not assessed. From this it is evident that an
undertaking may escape the income tax entirely by fixing its
charges so low that there is a deficit. A company is not likely to

'See In re Glasgow Gas Commissioners (1876), 1 Tax Gas., 122,
and other cases cited in Michael and Will, The Law Relating to Gas
and Water, Fifth Ed., pp. 51 and 52.

526

NATIONAL CIVIC FEDERATION.

do this intentionally; neither is a municipality unless there are
great benefits to be gained by the public through such a course.
It has not been done in any of the undertakings examined, but in
the case of water works it is quite common in Great Britain for
municipalities to fix the rates of charge to the consumer very low
and to levy a "water rate/' that is, to raise part of the revenue by
taxation.

Coming now to the question whether in actual practice com-
pany and municipal undertakings are valued equally (the rate
may be dismissed, for it is the same everywhere), it is necessary
to ascertain somewhat more definitely what are considered profits.
First, as to gas works. Through the courtesy of the managers of
two of the undertakings, I have secured the following statements
showing how the income tax was assessed for the years in ques-
tion. (The shillings and pence have been omitted.)

SOUTH METROPOLITAN GAS COMPANY.
Income Tax for the Year 1903, ending April 5, 1904.

Profit to June 30, 1903 £224,788

" " December 31, 1903 222,555

£447,343
Add:

Income tax on salaries £1,222

Interest received (June) 934

(December) ... 539

Rents not locally assessed 1,038

Leasehold renewal fund 300

• 4,033

Deduct: £451,376

Rents receivable (June) £1,895

(December) .. . 1,479

Interest on loans (June) 2,746

(December).... 2,648

8,768

Assessment value £442,608

Income Tax at Is. in the £ £22,130

SHEFFIELD UNITED GAS LIGHT COMPANY.
Income Tax for the Year 1904, to April 5, 1905.

Profit for half year to June 30 £45,231

Profit for half year to December 31. . . 52,859

£98,090
Add:

Rents payable (not locally as-
sessed) £309

Depreciation 2,979

Income tax, surplus dividend. . . 1,171

Bank interest 136

Donation to University 1,000

5,595

£103,685
Deduct :

Rents receivable (tax paid) £197

Assessable value £103,488

Income Tax at Is. in the £ £5,174

TAXATION. 527

A comparison of these statements with the financial reports
for the years in question and the provisions of the statutes shows
that the gross profits are taken as a starting point, gross profits
being the sum remaining after the manufacturing, distribution and
general expenses, including rates and taxes, have been deducted
from the receipts from the sale of gas and residuals, meter and
stove rents and other receipts. To the gross profits there are added
any other revenues, such as interest on bank balances or loans, the
income tax for the previous year, rents payable if not locally
assessed, and such other items as have been charged against revenue
which are not properly chargeable as operating costs, as deprecia-
tion over and above the ordinary expense for repairs and mainte-
nance, reserve fund payments, etc. Deductions are made for rents
receivable where tax has already been paid, interest on loans from
which tax has been deducted, and any other items that have been
paid out of funds which should have been charged to revenue ac-
count. In most cases it is easy to decide whether an item should
be included or excluded; but when it comes to drawing the line
between maintenance and repairs, and depreciation charges, the
problem is much more difficult. The practice of assessors is not
entirely uniform upon this point, but the principle generally fol-
lowed is to allow such amounts to be deducted, either in operating
costs or in a special charge for depreciation, as will provide for
the maintenance of the plant at its original efficiency, especially
if the expenditures for which allowance is claimed have actually
been made.

In the main the same principles apply to electric supply and
tramway undertakings. But is should be noted that where a sys-
tem is developing rapidly and the gross profits are increasing con-
siderably from year to year, a three-year average is noticeably more
favorable to an undertaking than if the assessment value were the
profits for the year last preceding. In the statements given below
for the electrical undertakings, the assessable value upon the basis
of a three-year average is from 20 to 30 per cent, below what it
would have been if the last year alone had been taken, barring ac-
cidents.

The following examples of income tax statements will suffice
to show how the assessment value is arrived at :

528

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TAXATION.

NEWCASTLE-UPON-THE-TYNE ELECTRIC
COMPANY LIMITED.

529

SUPPLY

Statement prepared for Income Tax for year ending April 5, 1905.

Profit for year 1902 £27,950

Profit for year 1903 43,539

Profit for 1904 as per account £59,940

Add items deducted but not allowed for
Income Tax purposes —

Depreciation on office furniture 185

Income tax 1,158

Ground rent 52

Interest received, tax not de-
ducted 78

£61,413

Deduct interest paid, tax not de-
ducted 763

60,650

Total for three years £132,139

Average yearly profit £44,046

Deduct schedule A assessments —

Roberts Terrace, Wallsend 74

Works, Neptune Bank 15

Offices, Neptune Bank 250

Deduct allowance for depreciation.. .. £6,000

6,339

Income tax assessment £37,707

Income tax at Is. in the £ £1,885

GLASGOW MUNICIPAL TRAMWAYS.
Assessment for Income Tax for Year ending April 5, 1906.

Tears ending May 81. 1902. 1903. 1904.

Net profits £326,511 £354,326 £367,334

Deduct proportion of perma-
nent way renewals al-
lowed 2,338 2,071 4,611

£324,173 £352,255 £362,723
Add horse renewals 1,884 166 158

£326,057 £352,421 £366,881

Total for three years £1,041,359

Yearly average 347,120

Deduct depreciation for year 1904-5 as per follow-
ing page 48,570

Assessment value £293,550

Income tax at Is. in the £ £14,927

Detail of Net Profits for 1903-1904.

Gross Revenue £724,851

Less Working Expenses £356,820

Rents on which tax has been paid 1,108

Interest, tax deducted 760

Plus Feu duties and teinds (tax deducted) 1,060

Parliamentary expenses 105

357,517

£367,334

Vol. III.— 35.

530

NATIONAL CIVIC FEDERATION.

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TAXATION.

531

Whether municipal undertakings are valued at a higher or a
lower rate than companies is somewhat uncertain, for there are
great differences in local conditions. There is no absolute stand-
ard with which the assessment may be compared and the question
thus settled beyond peradventure, but conclusions will probably
be reached as accurately as in any other way if the amount of the
assessment is computed per thousand cubic feet of gas sold, per
unit (k. w. h.) of electricity sold or per car mile. The facts for
all of the municipal and company plants investigated are given in
the following table:

INCOME TAX ASSESSMENTS.

Gas Undertakings. Amount.

Birmingham £197,969

Glasgow 133,842

Manchester 170,663

Leicester 102,120

Municipalities £604,594

London— So. M £442,608

Newcastle 113,011

Sheffield 103,323

Companies £658,942

Electric Supply. Amount.

Manchester £79,798

Liverpool Appealed

Glasgow 35,542

St. Pancras 21,877

Municipalities fl-37,2171

Newcastle — Supply £41,840

Newcastle — District 16,197

London — City 110,568

Westminster 85,260

St. James 43,909

Central 13,843

Companies £311,617

Per.M.Cu.Ft.
Sold (Pence).

7.67

5.52

8.57
13.36

7.79

8.75
9.39

8.87

8.88

Per Unit
Sold (Pence),
.569

(?)
.467
.789

.5621

.866

For three undertakings only.

532 NATIONAL CIVIC FEDERATION.

Per Car

Tramways. Amount. Mile (Pence).

Glasgow £206,478 2.762

Manchester 133,912 2.276

Liverpool Appealed ( ?)

London C. C 65,227 1.4322

Municipalities £405,617! 2.2641

London United Appealed (?)

Dublin Est. 89,000 2.870

Norwich 10,590 2.266

Companies (?) (?)

This table clearly indicates that there is great variety between
the plants; certain undertakings are taxed one-half what others
pay, and in the case of the Newcastle Supply Company and the
St. James company the difference is very much greater. It is also
clear that municipal plants, either group by group or collectively,
are assessed at a lower figure than the companies. One hesitates
to attempt an explanation, but probably it is due in part to the
higher amounts charged to maintenance, repairs and renewals by
the municipalities, in part to the fact that the companies are more
anxious to make a large profit, and in part to the different stand-
ards adopted by the assessors.

As the rate of taxation is the same everywhere — 5 per cent,
of the assessment — the amounts paid vary in the same ratio as the
assessments. But the amount levied upon an undertaking is not
necessarily the amount actually charged in the accounts as income
tax. The difference comes about in this way: When interest or
dividends are paid, a deduction is sometimes made therefrom for
the income tax thereon, and only the net amount is charged in the
accounts. For example, the Glasgow tramway undertaking was
taxed, in the year under review, £10,324; of this amount, £4,890
were deducted from the interest upon the debt when paid and the
net amount, £5,434, charged in the accounts, the charge for inter-
est being the gross amount before deducting income tax. The
Central Electric Company collected all of its tax from the holders
of its securities and therefore charged no income tax on its books.
Of course, the holders of securities are not obliged to pay the tax
twice, and if it is deducted from their dividends and interest when
paid, the net amount is not again taxed. It will be seen from the
following table that neither course is followed by all municipalities
or all companies, and that to judge from the amounts charged in
the accounts as to the extent to which the undertakings are assessed
for the income tax would be misleading.

1For three undertakings only.

2 Computed on the basis of electric mileage, not including horse-car
mileage, as the latter is run at a loss owing to the interference with
traffic due to reconstruction.

TAXATION.

533

INCOME TAX PAYMENTS.

Tax

Tax Charged
Actu- in Accounts
ally (Schedules Differ-

Tax Per M. Cu.

Ft. (Pence).

Oas Undertakings — Levied. IV). ence. Levied. Charged.

Birmingham £9,899 £9,899 38 .38

Glasgow 6,692 6,692 28 .28

Manchester 8,533 4,785 £3,748 .43 .24

Leicester 5,106 5,106 67 .67

Municipalities £30,230 £26,482 £3,748 .39 .34

London £22,130 £22,130 .44

Newcastle 5,850 £5,850 48 .48

Sheffield 6,052 .... 6,052 .52

Companies £34,032 £5,850 £28,182 .46 .08

Electric Supply — Per unit sold.

Manchester £3,990 £842 £3,148 .029 .006

Liverpool Appealed (?) (?)

Glasgow 1,777 367 1,410 .023 .005

St Pancras 1,094 705 389 .039 .025

Municipalities £6,86r fl.9141 £4,947* .0281 .0081

New.— Supply £2,092 £2,092 .017

New.— District 810 810 038 .038

London — City 5,531 5,531 063 .063

Westminster 4,263 4,263 069 .069

St James 2,205 2,205 .068

Central 728 728 .025

Companies £15,629 £10,604 £5,025 .043 .030

Tramtcays — Per Car Mile.

Glasgow £10,324 £5,434 £4,890 .138 .073

Manchester Appealed 2,983 (?) (?) .051

Liverpool Appealed 5.877 (?) (?) .117

London C. C 3.261 3.261 0722 .0722

Municipalities (?) £17,555 (?) (?) .077

London United Appealed £4,100 (?) (?) .134

Dublin £4,450 4,450 144 .144

Norwich 531 189 342 .118 .042

Companies (?) £8,739 (?) (?) .131

LOCAL TAXATION.
The Machinery of Rating.

The system of local taxation in Great Britain is based upon
the Elizabethan Poor Law of 1601. At that time the care of the
poor was almost the only function calling for obligatory contribu-
tor three plants only.
2 See note (2) page 532.

534 NATIONAL CIVIC FEDERATION.

tions, and the poor rate was the principal and often the only local
tax. As more money had to be raised for new functions or as the
financial needs of old duties increased, other rates were added to
the poor rate, the assessment being the same for all. The principal
ones thus added were the highway, watch (police), sanitary, ceme-
tery, drainage, lighting, school, county and borough rates. At first
the principle of assessment was not clearly defined, but as taxes
increased and rates came to be levied regularly everywhere, the
annual rent of land and buildings was generally adopted. Since
the seventeenth century the whole system has been extended, elab-
orated and perfected, but as it has all been done by piecemeal and
as no far reaching revision has ever been made, the system is most
intricate and confused. Only the salient features of the method
of taxing public utilities need be given here.

The valuation of property for rating purposes is a function
ordinarily belonging to overseers and the assessment committee in
England, and the county councils and burgh councils in Scotland.
The overseers are householders appointed for each parish by the
parish council or parish meeting in small parishes, or the justices,
borough council or other local representative body in urban par-
ishes. In London, the borough councils are now the overseers.
Usually they are appointed by the parish council or the justices
and seldom by the same authority that would be managing the pub-
lic utility to be valued. They are generally from two to four in
number except in small parishes, where often only one is appointed.
The assessment committee, consisting of from 6 to 12 members,
is appointed from among their number by the guardians of the
union — an elective body which has charge of the administration
of poor relief — and in London by the borough council when the
union is entirely within one borough. In Scotland similar officials
are appointed by the burgh or county councils.

The valuation list for each parish in England is made up by
the overseers, with the assistance of subordinate officials. Ordinarily
it is a copy of the last approved list, with such alterations as may
need to be made because of any change in the value of any property.
After an opportunity has been given for examiation by the ratepay-
ers, it is transmitted to the assessment committee., who hear and de-
cide all complaints about valuations whether of the property of the
complainant or of others. When all cases have finally been dis-
posed of and the values determined to the satisfaction of the com-
mittee, the list becomes the legal basis for the assessment of the
rates, unless upon appeal to the courts by a ratepayer the valuation
is upset.

No limit is fixed for the duration of the valuation list outside
of London, and it remains in force with such alterations and addi-
tions as are made from time to time until a new list is ordered. In
London a revaluation must be made every five years — 1900, 1905,
1910, etc. — but a supplementary list may be made every year to
alter any values which have changed during the year. London also
differs from the rest of Great Britain in that a copy of the list
made by the overseers is sent to the income tax surveyor, and he

TAXATION. 535

may alter the gross value of any property and transmit his copy
of the list so altered to the assessment committee. When the com-
mittee has fixed the gross value, this becomes the gross value for
the local rates from which the statute deductions are made.

The Scottish system for the valuation of property generally
is similar, except that the assessors appointed by the burgh and
county authorities work with the surveyors of the Inland Revenue
Office to a considerable extent. Appeal from the appraisal of the
assessors may be taken to the county valuation committee or the
magistrates of the burgh, whose decision is final unless recourse
is had to the courts. But in the case of railways, in order to avoid
the varying and conflicting methods of unrelated local authorities,
a special assessor of railways and canals has been created for the
whole of Scotland. His duty is to value these undertakings as a
whole and to allocate to each of the respective parishes its share.
He is appointed by the Crown and is wholly independent of the
local authorities. Gas, electricity, tramways and other similar un-
dertakings have the option of being assessed by him if liable to be
rated in more than one parish, and as a matter of fact are so as-
sessed.

From this brief outline, it is evident that the local officials
are left free to act very independently ; for there is no central super-
vision or control, as in the case of the income tax, except in Scot-
land and somewhat in London. Further, the statutes use only
general terms and are not explicit either as regards the property
to be valued or the principles of valuation. The result is that local
officials often adopt quite different standards and rules, so that
tramways, for example, are not valued alike in all parishes, as we
shall see. The decisions of the courts have brought about some
uniformity, but only a few cases are ever taken into court, and a
wrong method of valuation often goes unchallenged, unless a rate-
payer considers himself injured thereby.

The gross valuation thus fixed is not necessarily the value upon
which the local rates are levied, for all property is valued even
though it may be exempt. There are also deductions to be made
for various reasons . upon certain classes of property, and the rat-
able value of any property or of the whole parish is not known until
the exempt property and other deductions have been subtracted
from the gross valuation. If a county or a borough council believes
that the ratable value as thus found is not a fair criterion of tHe
true value, it may make an independent valuation for the county
or borough. This is seldom done, however.

When the ratable value has finally been established and when
each rating authority has determined the amount to be raised by
taxation for its needs, the fixing of the exact rates per pound of
ratable value is a simple mathematical problem.1 The next step

xThe rate is quoted not as such a percentage of the ratable value
or as so many pounds in a hundred or one thousand, but as s. d.
in the pound. In other words, if the rate is 7s. 6d., a person having
property rated at £1,000 will pay a tax of £375. Of course the rate is
determined by dividing the amount to be raised, reduced to shillings or
pence, by the total ratable value.

536 NATIONAL CIVIC FEDERATION.

is to compute the amount each ratepayer owes and to serve notice
upon him. An agent of the guardians usually collects the amounts
due from each ratepayer, and each local authority is paid the sums
due it. However, the town councils may collect their rates if they
please, and this has been done in a number of cases with a con-
siderable saving in expense, owing to the substitution of one central
bureau for a number of small parochial bureaus.

Principles of Valuation.

The machinery for the valuation of property is comparatively
simple, but the manner of determining the value of each piece of
property is not simple. Theoretically property is to be assessed
at its annual net rental, viz., what a hypothetical tenant might be
expected to pay the owner from year to year, if he (the tenant)
were to pay all rates and taxes, less the probable cost of repairs,
insurance and the other expenses necessary to keep the property in
a state to command that rent. In the case of a house rented an-
nually subject to the conditions just stated, the ratable value can
easily be fixed ; but gas and electric works are almost never rented,
and tramways very seldom, so that it is extremely difficult to say
what a hypothetical tenant would pay. As there is no actual rental
to serve as a basis, the probable rental must be estimated, or
determined by certain arbitrary rules. Further, a public utility
usually extends through several different parishes, thus making
the problem still more complicated by the difficulty of apportion-
ing the value properly between the different areas. The statutes
give few directions ; they lay down only general principles and leave
the local officials and the courts to interpret the law as each case
arises.

One of the most important principles generally accepted is
that existing, not future, value is the measure of ratable value, but
it is assumed that the hypothetical tenant has a reasonable expec-
tation of continuing his tenancy for more than one year. This
prevents upon the one hand an extremely low valuation, estimated
from what a tenant would pay if he could operate the plant only for
the year in question; it excludes upon the other hand practically
all consideration of the future value of the rights and franchises
when population has become denser and operation more profitable.
The test is the present value to the present occupier. In other
words, the value of the franchise is assessed, as well as the physical
property, but it is assessed at its present income value and not at
its capitalized value in view of what the income may be in the
future. In view of the continued growth of cities and the increas-
ing value of rights in the streets, this means that on the basis of
present income, the capitalized value of the assessment is less than
the capitalized value of all the securities of the undertaking at
their market value, which takes account of prospective profits to
some extent at least.

The strict application of this principle of rating would lead
to profits as shown by the accounts as the sole standard, but it is

TAXATION. 537

not strictly followed. If there is evidence to show that profits or
rent actually paid are not true tests of value, if there is evasion or
a manifest failure to utilize the property to advantage, the author-
ities and the courts will brush profits and rents aside. Further, if
a municipality has intentionally placed the charges for a service
very low, as is not infrequently done so as to give the user or con-
sumer every advantage, the actual profits are not considered as
final, unless the statutes forbid higher charges, which is practically
never the case. Practice varies as to how the ratable value shall
be determined in such cases. In some places the net rental is
estimated from value of other plants and the probable profits that
could be made at reasonable charges. In others a percentage of
the capital outlay is taken, the ordinary rates for schools, asylums
and sewage works — 4 per cent, on the cost of land and 5 per cent,
on the cost of buildings — being often applied. Where only this is
done, it is evident that a large amount is not included for the value
of the franchise, but if the undertaking is supplying a commodity
or service at such a low figure that the net profits amount only to
4 per cent, or 5 per cent., the franchise is evidently not worth a
large sum as long as prices are kept at such low figures.

Municipal undertakings are to be assessed and rated equally
with company plants. There is some difference, as will be seen,
between the practice in Scotland and in England, and between dif-
ferent areas within each country, but not between company and
municipal plants as such in either, so far as the law is concerned.
Until 1865 the theory was quite generally accepted that unless the
statutes specifically required the rating of municipal property, it
was to be exempt because devoted to public purposes. In that year
the House of Lords repudiated this theory in the case of Jones vs.
Mersey Docks (11 H. L. Gas., 443), but an act of Parliament was
held to have given statutory exemption, and it was not until 1876
that the atmosphere was cleared by the repeal of this act. At pres-
ent it is universally recognized that municipal corporations and
all similar bodies are to be assessed and taxed on the same prin-
ciples as private individuals or companies. Probably this is an
outgrowth of the theory that it is property that is taxed rather than
the owner thereof. The only instance where the decisions seem to
indicate that an exception might be made is where taxation would
merely result in the taking out of one pocket to put in another.
Such an occurrence is extremely rare as far as public utilities are
concerned, for a public utility is operated by only one local author-
ity in a given area, and there are so many other authorities that do
not have any control over it whatever and do not share its profits,
that they naturally insist that it be taxed for their benefit. Fur-
ther, if an authority were to exempt a municipal undertaking from
paying rates, any ratepayer could appeal from its decision and by
legal procedure force the authority to place the plant upon the list.

For many years it was not conclusively settled that an under-
taking should be rated for the use of the streets as well as for the
plant situated upon private property. An early decision in 1823

538 NATIONAL CIVIC FEDERATION.

held that pipes in highways were ratable, but not until 1895 was
the last vestige of a claim for a contrary decision disposed of.
Pipes, mains, wires, tracks, subways and everything else which
yields an income or may ordinarily be made to yield an income, are
to be rated and taxed. Goodwill is not supposed to be valued, but
in actual practice it is often found impossible to separate the in-
come from this source from the other profits. In the undertakings
examined, no instance was found where any allowance had been
made.

Valuation of Gas Works.

When one comes to apply these principles to specific cases, the
difficulties begin, and as each class of undertakings differs some-
what from the others, each will be discussed separately; gas works
first. As already stated, gas works are practically never leased by
the owners. In the search for a method of determining what a
hypothetical tenant would pay, the assessment officials have gen-
erally fallen back upon profits as shown by the books of the under-
taking, and the courts have upheld in numberless cases valuations
arrived at as follows:

The actual gross receipts from the gas business were used as a
starting point, from which were deducted actual working expenses,
tenant's rates and taxes, a sum for tenant's profits and risks, and
the normal cost of repairs, renewals and insurance of buildings, sta-
tions, plants and mains, the remainder thus obtained being taken
as the gross assessment valuation. If repairs, etc., are included
in working expenses, they should not, of course, be deducted a
second time.

To determine what deductions should be made for tenant's
profits, certain fixed percentages have been adopted, based upon
the principle that a tenant could not be found if he had to pay
over all of the profits to the owner. He can be expected to rent
the works only upon the condition that he receive out of the profits
an amount sufficient to pay interest upon the working capital he
provides, to pay for risks and casualties, and to leave for him a rea-
sonable profit. It is customary to allow 5 per cent, on working
capital for the first, 2^ per cent, for the second and 10 per cent,
for the third, making in all 17£ per cent. Working capital is con-
sidered to include stocks, such as coal, residuals and stores, con-
sumers' meters, stoves for hire, tools, loose machinery, etc., at their
present actual value, not at their original cost, and a certain pro-
portion of operating costs (working expenses), usually about four-
twelfths — 4 months' expenses.

The valuation having been found by this process, the next
step is to determine the ratable value — the amount upon which the
rates shall be computed and paid. The only thing to be done is to
ascertain whether any deductions have been authorized by statute
or by the rating authorities. If there are none, the value as above
described becomes the ratable value; if there are, they must be
subtracted and the remainder becomes the ratable value.

TAXATION. 539

If the works are entirely within one rating area, usually the
parish, the problem ends at this point; but where they extend into
two or more districts, there is the further difficulty of determining
how the property shall be divided. Shall the value for the whole
be divided among the districts according to the miles of mains in
each area, or the total sales, or the net profits, or the situs of the
physical property; or shall each area fix its own value arbitrarily
and without consultation with the others; or shall an attempt be
made to apportion the total value according to the amount of pro-
ductive property in each area? In practice a number of methods
have been used which have varied widely, but at present the one
most commonly adopted is to determine the valuation of the whole
system by the method given in the above paragraphs. A distinc-
tion is then made between property "directly productive of profit"
and "indirectly productive." The first includes the mains and ser-
vices that deliver gas directly to the consumer; the second, the sta-
tions where gas is made and stored, and the mains that carry gas
from one station to another or from the stations to the parishes
where it is sold. From the value of the whole system, the rate-
able value of the "indirectly productive" part is subtracted and
apportioned to the areas in which it is located. The remainder,
the value of the directly productive part, is divided among the par-
ishes according to the gross or net receipts in each. In determin-
ing the value of the "indirectly productive" property, it is treated
as mere land, buildings, etc., but deriving some additional value
from their capacity of being applied to gas purposes; frequently
a percentage of the capital cost is taken.

Let us now take a concrete case, that of the Newcastle and
Gateshead gas company. The valuation is for the year 1903 and
is based upon the receipts, working expenses and profits for the
three years 1900, 1901 and 1902. Only the figures for the New-
castle Union are given, for they cover every point of practice.

Receipts for the average of the three years 1900,1901 and 1902 :

Gas £251,415

Meter and stove rents 13,335

Residuals :

Coke 76,190

Breeze 358

Tar 15,545

Sulphate of ammonia 18,916

POITK 759

Working Expenses (same period) :
Manufacture :

Coals £164.726

Wages 43,317

Purification 10,414

Salaries 4,028

Repairs 28,989

£251,474

Distribution :

Salaries and wages £5,635

Repairs and maintenance 8.026

Repairs, meters 2,751

Repairs, stoves 2,252

18,664

540 NATIONAL CIVIC FEDERATION.

Public lamps £699

Management :

Directors £1,821

Salaries 3,257

Salaries collectors 1,700

Stationery 1,438

General charges 1,308

Official auditor 150

Law and parliamentary charges. v 169

9,843
Rates 8,735

£289,415

Net Receipts £86,344

Of this sum 65 per cent, is earned in Newcastle. This

is equal to \. £56,123

Deduct interest on tenant's capital (see below) 28,833

-F97 9QO

XZ* I ,At7V

Statutable Deductions : »

Insurance £440

The Gross Assessment of Redheugh Gas
Works, £12,261, of which 62.57 per cent.

is due to Newcastle £7,672

Less 22.93 per cent, of gas made at Els-
wick Works and consumed outside of

Newcastle 721

6,951

7'391

£19,899

One-fifth deduction 3,979

£15,920

Add for certain properties only entitled to a deduction of one-
sixth 169

£16,089

TENANT'S CAPITAL CHARGES.

Working Expenses (given above) £289,415

Working Capital :

Working Expenses: Five months' expenditure, i. e., five-
twelfths Of £289,415 £120,590

Less four months' receipts from automatic meters. £6,600

Three months' receipts from residuals 27,752

34,352

~£86,238
Stocks in hand :

Coals £6,136

Coke 2,055

Tar and ammoniacal liquor 5,308

Meters 2.329

Stoves 2,450

Other stores 13.862

Meters on hire 84,399

Stoves on hire 50,699

Cash in bank

Working capital £253,476

Tenant's Capital:

Interest on £253,476 at 5 per cent £12,674

Trade profits on £253,476 at 10 per cent 25,348

Risks and casualties on £253,476 at 2£ per cent 6,337

£44,359
Proportion due to Newcastle (65 per cent.) £28,833

TAXATION.

541

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542

NATIONAL CIVIC FEDERATION.

VALUATION or MAINS, PIPES AND SERVICES, NEWCASTLE UNION.

Parish or Township.

St. Nicholas

St. Johns

All Saints

St. Andrews

lesmond

Byker

Byker (St. Anthony's Burial D.) .

Heaton

Westgate 13,426

Elswick — 43,669

Benwell 7,491

Fenham 9

Net

Revenue for
Gas (1902).
£8,633
13,459
12,043
20,232
14,592
9,254
2,575
7,318

Gross

Rateable

Value.

£617

964

925
1,448
1,044

662

184

524

898
3,126

536

Net
Rateable

Value.

£494
771
740

1,159
835
530
147
419
719

2,501
429

£152,701

£10,928

£8,744

Briefly summarized this statement is as follows:

Receipts for the average of three years £375,759

Working expenses, including repairs and rates, ditto.. 289,415

Net receipts for the whole undertaking £86,344

Newcastle's share, 65 per cent, of whole 56,123

Tenant's allowance, 65 per cent 28,833

Gross assessment for Newcastle £27,290

Statutable deductions 11,201

Rateable value of all property in Newcastle Union. . . . £16,089
Rateable value of land,, buildings, etc., ditto 7,345

Rateable value of mains, pipes and services, ditto £8,744

Which was apportioned among the parishes in the Newcastle Union
according to the receipts from the sales of gas to private consumers
in each parish.

An examination of the valuation and a comparison with the
accounts of the company reveals several points to be noted. (1)
The receipts and working expenses were averaged for three years
instead of one as ordinarily done. (2) Receipts did not include
rents from property and miscellaneous services; these were net
payments, rates having already been deducted. (3) Certain items
of expense, such as bad debts and damages which were supposed
to be covered by the allowance to the tenant of 17£ per cent, on
tenant's capital, were not included in working expenses, and there-
fore were not deducted from receipts. (4) The net receipts were
divided among the unions according to the amount earned in each,
and not according to the theory above, viz., a separation of the
property into "directly productive" and "indirectly productive."
But under statutable deductions a correction was made so as to
deduct such a proportion of the value of the works outside of the

TAXATION. 543

union as the gas made outside but consumed within bore to the
whole value of the works outside, and to add such a proportion, of
the value of the works inside the union as the gas made inside but
consumed outside bore to the whole value of the works inside.
(5) When it came to dividing the rateable value for the union
among the parishes, then the general principle given above was ap-
plied. (6) A deduction of one-fifth was allowed on nearly all
property. (7) Working capital included 5 months' expenses less
4 months' receipts from automatic meters and 3 months' receipts
from residuals. (8) No deduction was allowed for depreciation,
beyond the charges for repairs and renewals, nor for payments to
reserve funds.

The assessment of the Manchester gas undertaking is typical
of another method which is used somewhat. There the land, build-
ings, holders and all other structures upon land belonging to the
department are assessed at 4 per cent, of their value as shown by
the books of the undertaking, and the situs of the property deter-
mines the district in which it is rated. The mains and services are
assessed at a rate varying from 10 per cent, to 15 per cent, of the
total receipts from the sale of gas in the district in which the pipes
are located. This means a high valuation and a heavier charge per
1,000 feet of gas sold than paid by any other undertaking examined,
as will be shown later. No deductions are allowed, so that the
gross valuation here would be equal to 5 per cent, on land, etc.,
and 12^ per cent, to 19 per cent, on income for mains in other
places where deductions are permitted. An appeal was pending
against the assessment when the plant was visited. It was main-
tained that the plant should not be assessed at a higher rate than
other plants, and that 10 per cent., certainly 15 per cent., was
altogether too much. The Gas Committee of the Council had
expressed a willingness to be satisfied with an assessment of 4
per cent, on land, buildings, etc., and 7-J per cent, on receipts
for mains; but the township authorities, which have charge of the
valuation of property in Manchester, are naturally very loath to
make the reduction.

Valuation of Electricity Supply Works.

Electric undertakings are assessed generally according to the
same methods that rule in the valuation of gas works. The Man-
chester electrical undertaking, for example, is assessed precisely
as the gas works, except that the rate upon land, buildings, etc., is
3i per cent, instead of 4 per cent, of the capital outlay, and that
the mains and services are assessed uniformly at 15 per cent, of
the income from the sale of current. All in all, this is a heavier
assessment than the gas works valuation and an appeal is now
pending against the assessment for mains.

The method in Glasgow is analogous to that used in Newcastle
for the assessment of gas works. The gross valuation of the whole
undertaking is as follows (shillings and pence omitted) :

544 NATIONAL CIVIC FEDERATION.

GLASGOW ELECTEIC LIGHTING WORKS.
For the Year Ending Whitsunday, 1906.
Revenue for year ending May 31, 1904 :

Sale of current per meter £146,838

Public lighting 11,352

£158,190

Working charges for year endng May 31, 1904 :

Generation of electricity £32,375

Distribution of electricity 8,984

Public lamps, attending and repairing 3,112

Occupier's local rates and taxes 5,107

Rent of telephones, offices, etc 589

Management 7,815

Lamps and fittings supplied during year to con-
sumers consequent on change of voltage, and
including proportion for year 1903-1904 trans-
ferred from suspense account 2,701

Occupier's income tax say 232

Depreciation of moveable plant, amount written off.. 4,108

65,023

Net revenue £93,167

Allowances :

Five per cent, on £30,458 — half of Working Charges
being estimated capital necessary to carry on the

business for interest £1,523

Five per cent, on £79,601 — value of meters, accumu-
lators, instruments and furniture, at May 31,
1904, for interest 3,980

Value £87,664

Comparing the above with the Newcastle gas company's state-
ment^ it is seen in Glasgow (1) that the returns for the latest
year were taken instead of the three preceding years; (2) that
depreciation upon moveable plant was allowed in addition to the
usual charges for maintenance and repairs; (3) that the allowance
for tenant's profits was very much less, equivalent to about 5 per
cent, or 6 per cent, only, where in Newcastle it was 17£ per cent. ;
(4) that the assessment of the whole undertaking was determined
first of all; (5) that the buildings and land were valued and
assessed where they were, and (6) the remainder of the gross val-
uation, after deducting the value of the buildings and land, was
distributed among the various areas according to the mileage in
each, as follows:

Parish of Glasgow £54,574

" " Govan 30,699

" Cathcart 2,048

" Eastwood 343

£87,664

Burgh of Glasgow £87,401

« " Partick 73

County of Lanark 190

$87,664

TAXATION. 545

From these amounts certain deductions were subtracted to
secure the rateable value. In two parishes 32 per cent, was sub-
tracted for poor and school rating; in two others, 25 per cent.
For the other rates, such as police, sanitation, roads, parks, etc.,
the percentage varied from nought to 45 per cent., depending upon
the purpose of the rate.

Valuation of Tramways.

The assessment of street railways is supposed to follow prin-
ciples similar to those applied in the valuation of gas and electric
works, and in determining the value of the undertaking as a unit,
there is little difference, except between England and Scotland.
The method in vogue in England and Ireland is as follows:

First get the gross receipts for the preceding year from the
accounts. Then deduct working expenses, including repairs to
paving and cars and depreciation upon movable property. From
this sum, called net receipts, subtract 17-J per cent, usually of ten-
ant's capital, which is the present value of the cars, horses, stocks,
tools, stores, furniture and other movable property, and cash in
the bank. This remainder is the gross estimated rental, from which
the statutable deductions must be made, viz., the repairs and sink-
ing fund to renew track, overhead equipment, buildings and fixed
machinery, and any fixed percentages allowed. It is important
to note that no allowance may be made for payments as compen-
sation for the franchises or for the decrease in value due to the
gradually approaching dats of termination of the company's
rights.

The net ratable value thus obtained is the amount upon which
the rates are levied if the system lies wholly within one rating
area. But if it does not, the value of the "indirectly productive"
property in each parish is obtained by taking 4 per cent, of the
value of the land and 5 per cent, of the value of the buildings,
barns, power houses, offices, etc. Their total, apportioned among
the parishes where the property is located, is subtracted from gross
estimated rental, and the remainder is considered the value of the
lines.

As to the apportionment of this sum, practice varies. Four
principles have been suggested: (1) Division according to route
mileage. This is generally considered unfair because it gives the
same weight to a mile of single track in a suburban area as to a
mile of double track in the heart of a city. (2) Division accord-
ing to mileage of track, omitting side-tracks. This has been
adopted in some cases with corrections, but is open to objections
similar to those just given. (3) According to car mileage. This
is more accurate and has been used. (4) Passenger mileage. The
necessary data are seldom available, but theoretically it is consid-
ered fairer and more accurate than any other system. (5) Re-
ceipts and expenditures. These must usually be estimated accord-
ing to one of the previous methods. Generally, therefore, the
value of the lines is divided according to track or car mileage, or

Vol. III.— 36.

546 NATIONAL CIVIC FEDERATION.

estimated net profits. The method of distributing the whole value
of the undertaking upon this principle has been rejected.

The Scottish system is similar, yet different. All tramways
are assessed by one person, as stated above, who determines the
valuation for the whole system. The land, buildings, etc., are
valued locally at 5 per cent, on original cost, and the balance is
allocated according to the length of line in each rating area. De-
ductions are allowed as follows in Glasgow: 75 per cent, off on
lines for municipal rates, 36 per cent, off on lines and buildings
for poor and school rates, none for country rates. The statement
of the valuation for 1906-7 founded upon the accounts for 1904-5,
is as follows:

VALUATION OF GLASGOW TBAMWAYS, 1906-7.

Gross revenue, 1904-5, exclusive of rents » . . £762,922

Deduct working expenses, 1904-5 :

Traffic expenses £217,873

Power expenses 20,908

General expenses (less £35,236 disallowed) 39,883

Repairs (less £21,990 disallowed) 51,277

One-half permanent way and electrical equipment

renewal 44,719

Depreciation of rolling stock and other moveable

plant 33,885

Occupier's income tax 3,010

Rental paid to Paisley Tramway Co 915

412,470

Net revenue £350,452

Deduct tenant's allowances :

Twenty-three per cent, on £319,020, being 75 per cent.

of tenant's working stock and plant £73,375

Ten per cent, for interest and deterioration on

£59,501 for value of stores 5,950

Five per cent, for interest on £5,000 for floating

capital 250

79,575

Valuation for 1906-7 £270,877

Valuation for 1905-6 260,964

Valuation for 1904-5 245,464

Total £777,305

Average for three years £259,102

Add for new lines to be opened 4,125

Gross valuation for 1906-7 £263,227

which is apportioned as above stated.

Comparing these figures with the accounts for the year, it
appears that the assessor did not allow the following expenses
to be deducted from receipts: Feu duties and teinds, owner's
local rates and taxes, third party accident insurance, fire insurance
on buildings and fixed machinery, repairs to ditto, half of amount
spent on repairs to permanent way and electrical equipment of
line, half of amount set aside for depreciation on the same or

TAXATION.

547

anything for depreciation on buildings and plant. The 23 per
cent, for tenant's profits consists of 12 per cent, for profits, 5 per
cent, for interest and 6 per cent, for risks, etc.

The question now naturally arises whether municipalities or
companies are rated the more heavily. In canvassing local senti-
ment, one usually finds two opinions. Upon the one hand, it is
claimed that companies are more heavily burdened, and it is ex-
plained that this is true because the assessing authorities, being
public officials, naturally favor a co-ordinate branch of the local
government. Upon the other hand, it is said that the municipal
plants are more heavily assessed because the assessors consider
that a public undertaking can more easily bear the burden im-
posed and because the attitude of the assessors is one of independ-
ence rather than of favoritism. Whether the true explanation is
the one just urged may be questioned, but it is apparent from the
following table that the ratable value per unit of output is more
for municipal plants than for companies. This is specially sig-
nificant when it is recalled that the income tax assessments were
less for municipalities than companies. Evidently there is no
favoritism or exemption of the former from the local burdens
which are borne by private industries.

The following table also shows that there is a very much
greater difference between ratable values than between the amounts
actually paid in the form of rates, for without exception the rate
of local taxation is higher for each group where there are com-
panies than where there is municipal operation. But as local con-
ditions must determine the rate of taxation, but ought not to in-
fluence ratable value, the latter is the more exact test.

LOCAL KATES — ASSESSMENTS AND PAYMENTS.

Gas Undertakings —

Birmingham

Glasgow

Manchester .....
Leicester

Rate- Average
able Local
Value. Rate (Ap-
proximate).

£96,921 6/4

146,151 4/4.9

120,000 7/2

34,292 7/2

Rateable

Rates Paid. Value
Per M. Per M.
Amount. Cu. Ft. Cu. Ft.
Sold Sold
(d.) (d.)

£30,685 1.19 3.76

25,502 1.05 6.03

42,927 2.16 6.02

12,335 1.61 4.49

Municipalities .. £397,364 5/7.31 £111,449 1.44 5.12

London— So. M... £191,552 8/4.5 £80,255 1.59 3.79

Newcastle 38,308 6/4.9 12,269 1.02 3.18

Sheffield 41,132 8/9.5 18,082 1.55 3.53

Companies £270,992 8/1.96 £110,606 1.49

3.65

548

NATIONAL CIVIC FEDERATION.

Electric Supply —
Manchester

Liverpool

Glasgow

St. Pancras..

Rate- Average
able Local
Value. Rate (Ap-
proximate).
£46,940 7/3
42,795 7/8.9
63,135 3/10
7,087 7/1

£17,134

15,728

12,159

2,474

Per Unit

Sold (Pence).

A.,

.123 .333

.120 .323

.100 .830

.089 .256

Municipalities.... £159,957 5/11.26 £47,495

Newcastle — Supply.
Newcastle — District
London — City ....

Westminster

St. James

Central .

£20,500 4/0.6 £4,152

3,000 6/7 988

25,714 6/9 9,149

30,759 6/10 10,531

25,410 6/6 8,258

7,167 6/10 2,452

Companies £112,550 6/3.76

£35,530

.127

.033
.046
.105
.170
.254
.083

.099

.426

.162
.139
.295
.496

.780
.242

.313

Tramways —

Glasgow £245,464

Manchester 71,632

Liverpool 48,011

London C. C 54,370

Per Car
Mile (Pence).

3/2 £38,782

7/3 25,912

7/8.9 17,427

7/7 20,525

.513

.440

.347

.3501

3.283

1.217

.955

.9271

Municipalities .. £419,477 4/10.73 £102,646

.423 1.729

London— United Est. £20,000

Dublin Est. 28.500

Norwich 2,130

7/4
8/9
9/10

Companies £50,630 8/3.32

£7,505

12,401

1,047

£20,953

.246
.400
.232

.656
.919
.472

.317

.767

LOCAL FEES AND LICENSES.

Besides the local rates, there are usually certain licenses and
fees to be paid. For example : The Glasgow electricity department
pays (£72 in 1905-6) the assessor for preparing the valuation roll;
the Sheffield gas company, the gas tester's fees; all gas undertak-
ings, a fee (£3 per works) for making sulphate of ammonia. But
the most important financially are the street car licenses.

Under the Tramways Act of 1870, local authorities may
license motormen, conductors, drivers and all other persons having
charge of tramcars and also the cars themselves, the license fixing
the number of persons that may be carried, etc. Where the local
authority operates its own tramways, the licensing body becomes
the police authority, whether it is a separate body or a committee
of the council. The regulations in such cases must be obeyed and
the license fees paid just as if the lines belonged to a private
company. For example, the London County Council tramways
are regulated and licensed by the Metropolitan Police Commis-
sioners. It is the almost invariable custom to attach a small fee

1 Computed on the basis of the total mileage, including both electric
and horse systems.

TAXATION. 549

to the license and to issue licenses for one year only, so that the
charge becomes an annual payment. In the case of municipal
tramways, the undertaking pays the fees just the same as any
other licensee, even though it may be merely a payment from one
committee to another. In London it is £2 15s. per car.

The amount and kind of these fees and licenses vary from
place to place, as considerable discretion is left to the local author-
ities. There is doubtless considerable inequality as between plant
and plant, but the total payments are not large and the difference
therefore could not be relatively great in any case. In theory they
are supposed to cover the cost of inspection and regulation.

SPECIAL ASSESSMENTS.

Not infrequently local improvements are paid for by an ap-
plication of the "betterment" principle, viz., by assessing the cost
upon the adjacent property in proportion to the amount of benefit
conferred by the improvement. The undertakings considered in this
report usually own little land, and it is seldom so situated as to
become assessable. But if it does, neither the law nor the practice
recognizes, any difference between company and municipal land.
Each is assessed equally with the adjoining property.

LABOR AND POLITICS

British Gas, Electric Supply and Tramways

(Answers to Questions in Schedule II)

By JOHN R. COMMONS and J. W. SULLIVAN

E — Organization.

E 1. What is the supreme governing body of the service, whether
city council, board, commission, board of directors, etc. ?

E 2. Number of members.

E 3. Method of selection of members, including nominations and
election.

E 4. Do political considerations influence selection?

E 5. Is the board bi-partisan or non-partisan ?

E 6.. Term.

E 7. Do all retire at the same time?

E 8. State salaries or allowances for services in connection with
the service?

E 11. May they also conduct private business?

E 12. What has been the custom?

E 13. How often does governing body meet?

E 14. Have they a technical knowledge of the service?

E 15. What is the scope of the authority vested in this body?

E 16. Is it fully exercised in practice ?

E 17. If there is any intermediate person or body between the
supreme governing body as above described and the chief
executive officer, give its constitution, organization,
functions, etc.

E 21. Is the chief executive officer an engineer by profession?

E 22. Does the supreme governing body actually determine the
administration of the service or does it simply ratify the
suggestions of the executive officer?

E 23. How is the chief executive officer (or officers, if more than
one of equal rank) selected?

E 24. How is he removed or discharged?

E 25. Do political considerations influence appointment or re-
moval ?

E 26. What is his term of office?

E 27. Has he changed with each change in the city adminis-
tration ?

LABOR AND POLITICS— APPENDIX. 551

E 38. What is the system of promotion?
E 39. What considerations determine

(a) Selection?

(&) Dismissal?

E 42. Are residents of the town given the preference?
E 43. Are positions distributed among the needy?

F — Political Conditions.

F 1. What are the conditions of municipal suffrage ?

P 5. Have the votes of employees affected city elections ? Cite in-
stances.

F 6. Have they used political power to secure higher wages, fewer
hours, etc. Cite instances.

F 8. Are employees active in party work?

F 9. Are they expected or required to pay political assessments?

F 10. What evidence is there of the influence of private companies
upon the nomination and election of members of the
franchise granting and franchise controlling authorities?

F 11. To whom has free service been given?

F 12. Has the privilege of free service been considered an in-
herent right in connection with holding office, and has it
been granted voluntarily immediately upon taking office,
or has it been made the subject of special request on the
part of the office holder?

F 13. After the person enjoying the free service has left the office
through the holding of which he has been granted free
service, has the privilege still been continued?

F 14. Who has had the authority to grant free service?

F 15. What have been the rules in regard to free service?

F 16. Have they rigidly been adhered to?

F 17. What was the number of people enjoying free service last
year?

F 18. Is the number increasing or decreasing?

F 19. What was the total amount of free service last year?

F 20. Has any attempt been made to make confidential any of
the features relating to free service, or has it generally
been understood?

F 21. Is there any tendency to abuse the privilege of free service?

F 22. Has anything been done in case the privilege of free ser-
vice has been found to be abused?

G — Labor.

G 14. In case of accident to employees, who paid medical ex-
penses ?

G 15. Who paid for badges and uniforms?
G 19. Were prizes offered for faithful service?
G 20. Describe system of profit sharing, if any.
G 21. Describe pension system for old age or infirm employees.
G 30. How were wages fixed and by whom?
G 31. Were union rates observed?
G 32. If there were trade agreements, state them.

552 NATIONAL CIVIC FEDERATION.

G 33. Was there any form of collective bargaining?

G 34. Has there ever been any concerted action among employees
to have wages raised or hours shortened? Describe.

G 35. Were the employees organized in unions?

G 36. Was the " closed shop " or " open shop " policy in force?

G 37. Was the municipality or company opposed to organized
labor ?

G 38. Has there ever been a strike on the system ? If so, describe
fully.

G 39. How were labor disputes settled?

G 40. Were the laws relating to health, employer's liability, and
contract labor observed?

G 41. Were there any printed or written instructions to em-
ployees? If so, enclose copies.

G 42. How were employees treated by management?

G 43. Did employees have a share in the management of the
system ?

G 49. If so, were his expenses paid by himself?

G 50. Number of persons killed during past year:

(a) Employees.

(b) Others.

G 51. Number of persons injured:

(a) Employees.

(6) Others.

G 52. What was the amount of damages usually paid for death?
G 53. Were payments for injuries usually adequate?
G 54. Were cases usually settled without lawsuit?
G 55. May the municipality or company compromise or settle

claims without lawsuits?

GAS UNDERTAKINGS.

E — Organization.
E 9. May councillors also hold other public office?

Yes, in all cases.
E 10. Do they always, generally, exceptionally, or never ?

Glasgow, not uncommon; Newcastle, generally; others not
answered.
E 18. What is the official title of the chief executive officer (or

officers, if more than one of equal rank) ?
Glasgow. Chief Engineer and General Manager (combined).
Manchester. Gas Superintendent.
Birmingham. Secretary to Gas Committee.
Leicester. Engineer Manager (combined).
Newcastle. The Secretary.

Sheffield. General Manager and Secretary (combined).
South Metropolitan. Chairman.

E 19. Is the head of the engineering service subordinate to the
chief executive officer, co-ordinate with him or united in
one man?

Glasgow. One man.
Manchester. Subordinate.

LABOR AND POLITICS— APPENDIX. 553

Birmingham. Co-ordinate.

Leicester. One man.

Newcastle. Eesponsible to directors. Instructions through
Secretary.

Sheffield. No answer.

South Metropolitan. Subordinate.

E 20. Is the head of the engineering service an engineer by
profession ?

Glasgow. Yes.

Manchester. Yes.

Birmingham. Yes.

Leicester. Yes.

Newcastle. Yes.

Sheffield. Yes.

South Metropolitan. Yes.
E 28. How long has the present chief executive officer served?

Glasgow. Since 1891 as Works Manager. Since 1903 as
Chief Engineer.

Birmingham. Five years.

Leicester. Twenty-four years.

Newcastle. Thirty-nine years with company. Eleven years
as secretary.

Sheffield. Twenty-three and a half years.

Manchester and South Metropolitan. No answer.
E 29. Does he devote all of his time to the business?

Yes, in all cases.
E 30. What was his annual salary or pay for last fiscal year ?

Glasgow. £1,000.

Birmingham. £1,200, Chief Engineer £1,600, Chief Chemist,
£350.

Leicester. £1,500.

Newcastle. £1,250 and income tax paid by company.

Manchester, Sheffield and South Metropolitan. No answer.
E 31. Give titles and annual salaries of the ten highest paid
subordinates of the chief executive officer for the last
fiscal year.

Glasgow :

Treasurer £650 Asst. Genl. Mgr £300

Manager at Works 540 Chief Draughtsman.... 360

" " " 400 Surveyor 300

" " " 350 Supt. of Workshops 250

" 350 " Street Mains. 208

Manchester. No data.

Birmingham :

Secretary £1,200 and Engineer £1,600 are co-ordinates.

Chief Chemist £350 Works Engineer £575

Chief Cashier 500 Do. 500

Accountant 350 Do. 450

Office Supt 300 Do. 325

Assistant Secy 300 Do. 275

Fittings Supt 450

554 NATIONAL CIVIC FEDERATION.

Leicester:

Accountant £350 Assistant at Works .... £300

Chief Clerk and Cash. . 300 Supt. Office at Works. . 300

Chief Rental Clerk 225 Supt. of Street Mains. . 200

Chief Collector 225 Supt. of Stove Dept 190

Chief Meter Inspect . . . 225 Assistant Collector 150

Newcastle:
Engr. and Mgr. Elswick Cashier £300

Works £1,000 Registrar 275

Do. Redheugh 500 Sub-Mgr. Elswick Works 325

Distribution Supt 400 Supt. Rental Dept 250

Accountant 325 Chief of Development

Chief of Stores and Resi- Dept 250

duals Dept 300

Sheffield. Salaries are known only to the company head and
the party receiving the same. Hence no data.

. South Metropolitan. No data.

E 32. Give the number of all salaried offices during last fiscal
^ year.

Leicester. 106.

Newcastle. 132.

Sheffield. 145.

Glasgow, Manchester, Birmingham and South Metropolitan.
No answer.
E 33. How are the subordinate officials and employees selected?

Glasgow. By officer in charge of the several branches of
undertaking.

Birmingham. In adm. by Secretary. In engr. by Engineer,
Chief. In Chemistry, by Chief Chemist. Confirmed by Com-
mittee. Most important positions after interviews by committee
first.

Leicester. Committee on recommendation of Engr.

Newcastle. Officials sometimes after advertising, usually by
promotion. Workmen from applicants of whom there are usually
a large number on the list.

Sheffield. General Manager.

Manchester and South Metropolitan. No answer.
E 34. How and by whom are they discharged?

Glasgow. By chief officers in charge of branches.

Birmingham. Staff appointments by committee. Others by
Secretary, Engineer, and Chief Chemist.

Leicester. By committee on report of Engineer.

Newcastle. For misconduct, officials by board of directors,
or Head of Dept., 1 month's notice. Workmen head of Dept. 1
week's notice.

Sheffield. General Manager.

South Metropolitan. By the Board. Suspended by chief
executive officer.
E 35. What positions are filled for definite terms?

Indefinite in all except engineer, Newcastle.

LABOR AND POLITICS— APPENDIX. 555

E 36. Who decides when and how many men are to be employed?

Glasgow. Chief officers acting under General Manager.

Birmingham. Engineer in charge of various works.

Leicester. Engineer Manager.

Newcastle. Department Heads.

Sheffield. Superintendents of Works.

Manchester and South Metropolitan. No answer.
E 37. What is the usual length of service?

Glasgow. Varies.

Birmingham. As long as work continues. Some from 10-40
years.

Leicester. Av. 25 years, several over 40 years.

Newcastle. Instances of 50 years service, seldom discharged
for old age. Given light work.

Sheffield. During good behavior.
E 40. Is employment restricted to citizens ?

Glasgow. As far as practicable.

Birmingham, Leicester, Newcastle. No.

Manchester, Sheffield and South Metropolitan. No answer.
E 41. Are there any age restrictions?

Glasgow. No.

Manchester. No answer.

Birmingham. Only in more important positions when it is
desirable to get men under 40 years of age.

Leicester. No.

Newcastle. No.

Sheffield. None but usually young men.

South Metropolitan. No answer.
E 43. Are positions distributed among the needy?

Glasgow. Not unless man is otherwise qualified.

Birmingham. Occasionally in hard times in unskilled work.

Leicester, Newcastle. No.

F — Political Conditions.
F 2. Give the number of votes cast at the last city election and

date of election.

Glasgow. November, 1905. Eleven wards, 66,400 electors,
45,790 votes.

Leicester. Bye-election 17,550, March 6, 1906.
F 3. How many of the employees are voters?
Glasgow. Probably all.

Leicester. All except youths. Others not answered.
F 4. If any employees hold city office, state how many and what

positions.

Glasgow. Municipal employees forbidden by law to hold
any city office.

Birmingham. Cannot hold office.
F 7. Have candidates for office promised higher wages, better

hours, etc., for employees? Cite cases.
Glasgow. In several instances.
Birmingham. Yes, but unable to carry them out.

556

NATIONAL CIVIC FEDERATION.

Leicester. Made, but not taken too seriously.
Others, no answer.

G — Labor.

G 1. The following data are for the year ending:
Glasgow. May 31, 1905.
Manchester. March 7, 1902.
Birmingham. March 31, 1906.
Leicester. March 31, 1905.
Newcastle. December 31, 1905.
Sheffield. December 31, 1905.
South Metropolitan. January 1, 1906.

G 2, 4, 5.

TOTAL NUMBER OF ALL EMPLOYEES FOE THE LAST FISCAL YEAE OF
THE RESPECTIVE PLANTS.

Man- Birming- South

Glas- ches- ham. Leices- New- Shef- Metro-

July, 1904

goiv.
2,648

ter.

castle.

•field.

politan,

August, 1904

2,641

September, 1904.

2,635

October, 1904. . .

2,691

November, 1904.

3,073

December, 1904.

3,138

January, 1905 . . .

3,532

1,316

1,845

1,356

6,301

February, 1905 .

3,440

1,272

1,805

1,384

6,158

March, 1905
April, 1905

3,214
2,961

1,966

1,056
1,023

1,645
1,631

1,259
1210

5,653

5,608

May, 1905

2,706

1,937

1,142

1,772

1,342

5,924

June, 1905

2,662

1,922

1,046

1,609

1 193

5,437

July, 1905

1,934

2,228

1,055

1,619

1,167

5,476

August, 1905 . . .

1941

2 239

1,082

1,661

1 119

5534

September, 1905.
October, 1905 . . .

1,982
2,044

2,256
2,344

1,113
1,142

1,720
1,721

1,105
2,344

5,675

5,888

November, 1905.
December, 1905.
January, 1906.. .

2,233
2,241
2.203

2,508
2,613
2547

1,220
1,246

1,821
1,917

2,508
2,613

6,108
6,380

February, 1906..

2,084

2,581

March, 1906

1,994

2478

April, 1906

2,342

May, 1906

2,223

June, 1906

2,193

Average (all).. .
Average (work-
men ) . .

2,945
2.900

2,026

2,389

1,142
1.037

1,730
1.650

1,250
1.105

5,845
5.584

G 9. How was overtime paid for?

Glasgow. Tradesmen 1^. Laborers 1£

Manchester. 1| and 1-J.

Birmingham. 1£, 6 A. M.-10 P. M. Sun.
T. W. T. P. 1J, 1 P. M.-6 A. M. S. and S.

Leicester. Overtime avoided.

Newcastle. 1-J.

Sheffield. 1% Sundays, 1£ week days, Sun. 1£.

South Metropolitan. 1^ work days, workmen.

5 P. M.-6 A. M. M.

Sundays.

LABOR AND POLITICS— APPENDIX. 557

G 10. State what vacation, including holidays, with pay was al-
lowed to wage workers.

Glasgow. Retort house men and unskilled laborers 5 days.

Manchester. Workmen 4 days.

Birmingham. Retort house men 1 week a year. Yard men
three bank holidays a year.

Leicester. A week and double pay for Christmas and Whitsun-
day.

Newcastle. Retort house men one week. Double pay Christ-
mas and Good Friday. Workshop one day for annual excursion.

Sheffield. All foremen 10 days. Others none.

South Metropolitan. First two annual holidays, one week
with pay. Third and future holidays one week with double pay.
Good Friday and Christmas.

G 11. State what vacation with pay was allowed to salaried em-
ployees.

Glasgow. Three weeks for indoor, and two weeks for outdoor.

Manchester. No answer.

Birmingham. 2-4 weeks according to position.

Leicester. Two weeks.

Newcastle. Two weeks.

Sheffield. Two weeks.

South Metropolitan. Three weeks.

G 12. State what allowance was made to wage workers for sick
leave.

Glasgow. None.

Manchester. No answer.

Birmingham. None unless injured at works in course of
employment.

Leicester. None except for accident.

Newcastle. None.

Sheffield. None.

South Metropolitan. See Sick Fund Rules.

G 13. State what allowance was made to salaried employees for
sick leave.

Glasgow. Salary if absence is for reasonable time only.

Manchester. No answer.

Birmingham. Full pay first month, half pay second month.
Each case actually on its merits.

Leicester. Except in protracted cases, full pay while sick.

Newcastle. Full salary.

Sheffield. Salary is paid during absence.

South Metropolitan. No answer.
G 16. Were employees required to give surety bonds?

Glasgow. Those handling cash were.

Manchester. No answer.

Birmingham. When necessary.

Leicester. Those handling cash.

Newcastle. Those handling money.

Sheffield. Such as handle money.

South Metropolitan. No answer.

558 NATIONAL CIVIC FEDERATION.

G 17. Who paid the premiums?

Glasgow. City.

Manchester. No answer.

Birmingham. The Department.

Leicester. Department.

Newcastle. Company.

Sheffield. The Company.

South Metropolitan. No answer.
G 18. What provision was made for technical instruction?

Glasgow. None.

Birmingham. Pay fees for all who attend. Youths required
to go to one class.

Leicester. None.

Newcastle. Fees paid for young salaried employees attending
colleges on condition good attendance.

Manchester, Sheffield,' South Metropolitan. No answer.
G 21. Describe pension system for old age or infirm employees.

Glasgow. No system, voluntary donations only in deserving
cases.

Manchester. No answer.

Birmingham. Complete system see text.

Leicester. No definite system, but receive something.

Newcastle. Few small allowances to old workmen by board.
No system.

Sheffield. Directors pension old, infirm workmen. Super-
annuation fund for officials who pay 2£ per cent, salaries. Company
pays same amount. Fund invested with the Company. (Copy of
scheme furnished.)

South Metropolitan. No answer.
G 22. Did local benefit associations exist among employees?

Glasgow. Yes. Friendly Societies.

Manchester. No answer.

Birmingham. Sick and Funeral Allowance Society.

Leicester. Sick Fund (Annual Statement).

Newcastle. Yes.

Sheffield. Friendly Societies, i. e., Odd Fellows, etc.

South Metropolitan. Several such associations.
G 23. If there were, did municipality or company contribute to
the funds?

Glasgow. No.

Manchester. No answer.

Birmingham. Department guarantees sufficiency of fund.

Leicester. £50 per year.

Newcastle. No.

Sheffield. No.

South Metropolitan. No answer.

G 24. What other methods were used by the municipality or com-
pany to improve the social welfare, such as club houses,
libraries, gymnasiums, excursions, toilet facilities, etc. ?

LABOR AND POLITICS— APPENDIX. 559

Glasgow. Bath rooms and lavatories. Good, but not well
located, hence not much used.

Manchester. No answer.

Birmingham. Mess and bath rooms and club house.

Leicester. Cottages, clubs, lavatories, etc., well taken care of.

Newcastle. Contribution to excursion and rifle range.

Sheffield. Lavatories, mess rooms, etc., for stokers. In poor
condition.

South Metropolitan. Great variety of welfare arrangements.
Abundant provision.

G 25. Did employees get free service or gratuities of any sort?
If so, what?

Glasgow. None.

Manchester. No answer.

Birmingham. None.

Leicester. None.

Newcastle. Coke half price. Gas 40 per cent, discount, to
officials who are householders. Workmen: Coke 50 per cent.
Gas 10 per cent, discount.

Sheffield. No.

South Metropolitan. Gas at cost.
G 26. How frequently were different classes of employees paid?

Workmen weekly, officials monthly in all cases.
G 27. Was payment made promptly and regularly?

Yes, all.
G 28. Were they paid by cash, check or due bill?

Cash.
G 29. When and where were payments made?

Where employed, in all cases.

G 44. Were bicycles used in the business by employees? If so,
how many and for what purpose ?

Glasgow. No.

Manchester. No answer.

Birmingham. 6 for gas fitters. 8 for inspectors.

Leicester. Some at offices.

Newcastle. Six.

Sheffield. One for superintendent of mains.

South Metropolitan. No answer.
G 47. Were any technical journals subscribed for?

Yes, in all cases.

G 48. Did the superintendent or engineer attend technical meet-
ings?

Yes, in all cases.
G 49. If so, were his expenses paid by himself?

Glasgow. By department.

Manchester. No answer.

Birmingham. By themselves.

Leicester. By himself.

Newcastle. Partly by company, partly by himself.

560 NATIONAL CIVIC FEDERATION.

Sheffield. By themselves.

South Metropolitan. No answer.
G 50. Number of persons killed.

Glasgow. 2.

Birmingham. 1.

Others none.
G 51. Number of employees injured.

Glasgow. 77.

Manchester. 26.

Birmingham. 118.

Leicester. 11.

Newcastle. 67.

Sheffield. 18.

South Metropolitan. 243.

ELECTRIC LIGHTING.

E — Organization.
E 9. May councillors also hold other public office?

Yes, in all cases.
E 10. Do they always, generally, exceptionally, or never?

Generally.

E 18. What is the official title of the chief executive officer (or
officers, if more than one of equal rank) ?

Glasgow. Chief Engineer and Manager.

Manchester. Chief Electrical Engineer; Commercial, Secre-
tary.

Liverpool. Eesident Electrical Engineer.

St. Pancras. Chief Electrical Engineer.

Newcastle — Supply. No answer.

Newcastle — District. Chief Engineer, Commercial Manager,
and Secretary.

City of London Lighting Co. Managing Director and En-
gineer.

E 19. Is the head of the engineering service subordinate to the
chief executive officer, co-ordinate with him or united in
one man ?

Glasgow. One man.

Manchester. Co-ordinate with the Secretary.

Liverpool. See 18.

St. Pancras. Resident and Supervising Engineer subordinate
to the Chief Electrical Engineer.

Newcastle — Supply. No answer.

Newcastle — District. Subordinate to the Managing Director.

City of London Lighting Co. Both responsible to Board for
their respective departments.

E 20. Is the head of the engineering service an engineer by pro-
fession ?

Yes, in all cases.
E 28. How long has the present incumbent served?

Glasgow. 14 years. 13 as subordinate official, 1 as Chief
Engineer.

LABOR AND POLITICS— APPENDIX. 5G1

Manchester. 2 years.

St. Pancras. Since August, 1895.

Newcastle — District. Engineer been with company since or-
ganization January, 1889.

City of London Lighting Co. Chief Engineer since 1896.
Manager Secretary since 1891.
E 29. Does he devote all of his time to the business?

Yes, in all cases.
E 30. What was his annual salary or pay for the last fiscal year?

Glasgow. First year £800; second year £900; third year
£1,000.

Manchester. £900.

Liverpool. £900 per annum.

St. Pancras. £1,000.

Newcastle — Supply. No answer.

Newcastle — District. Not published.

City of London Lighting Co. Chief Engineer £1,500, M. Sec.
£1,000.

E 31. Give titles and annual salaries of the ten highest paid
subordinates of the chief executive officer for the last
fiscal year.

Glasgow. £182 to £500.

Manchester. £200 to £400.

Liverpool. £200 to £550.

St. Pancras. £110 to £450 (latter also residence coal and
light).

Newcastle — Supply. No answer.

Newcastle District. Amount of salaries not published.

City of London Lighting Co. £200 to £650.
E 32. Give number of all salaried offices during last fiscal year.

Glasgow. Approximately 20.

Manchester. 36.

Liverpool. 62.

St. Pancras. 18.

Newcastle — Supply. No answer.

Newcastle — District. Eight officials, six clerks.

City of London Lighting Co. No answer.
E 33. How are the subordinate officials and employees selected ?

Glasgow. Principal Assistants to Chief Engineer selected by
the Committee. All other assistants selected by Chief Engineer
or his subordinates by personal interview, etc.

Manchester. Picked as appointed by Executive officer from
filed list.

Liverpool. Salaried officers appointed by the Committee.

St. Pancras. Estab. officers appointed by Committee. Weekly
employees by Chief Officer.

Newcastle — Supply. No answer.

Newcastle — District. Clerks appointed by Secretary. Officers
elected by the board.

Vol. III.— 37.

502 NATIONAL CIVIC FEDERATION.

City of London Lighting Co. Monthly Staff by chief officials
subject to confirmation by the board. Weekly entirely by two

•L • -C «? • 1 J

chief officials.

E 34. How and by whom are they discharged?

Glasgow. Principal officials discharged by Committee. Minor
officials and employees can be by head of their department.

Manchester. The Executive Officers.

Liverpool. By the Committee.

St. Pancras. By the Chief Officer. If discharged employee
appealed to the Committee, his complaint would be attended to.

Newcastle — Supply. No answer.

Newcastle — District. By authority that appointed them.

City of London Lighting Co. Monthly by Board usually on
recommendation of chief officials. Weekly by two chief officials.
E 35. What positions are filled for definite terms?

Glasgow. Engineer. Chief Engineer Assistant.

Manchester. Onty Chief Engineer has agreement as to term
of years.

Liverpool. No answer.

St. Pancras. Establishment officers subject to three months'
notice for the two principal offices and one month for others.

Newcastle — Supply. Agreement for stated number of years.

Newcastle — District. Manager Director and Secretary are ap-
pointed for a term of years.

City of London Lighting Co. None.
J3 36. Who decides when and how many men are to be employed?

Manchester. The Executive Officer.

Liverpool. Eesident Electrical Engineer.

Si. Pancras. The council usually acting on advice of Com-
mittee.

Neivcastle — Supply. No answer.

Newcastle — District. Engineer.

City of London Lighting Co. Chief official.
E 40. Is employment restricted to citizens?

No, in all cases.
E 43. Are positions distributed among the needy?

Manchester. For special and temporary work when extra
liands required, these drawn partly from unemployed.

Others, no.

F — Political Conditions.

~F 2. Give the number of votes cast at the last city election and
date of election.

Manchester. 45,700.

Liverpool. 47,390 out of 86,125; average 55 per cent, per
ward.

St. Pancras. In 1903, 17,460 out of 33,376 electors— viz. :
52.3 per cent.
IT 3. How many of the employees are voters?

Glasgow. Impossible to answer correctly. In department
about 700 employees, about 1/3 of whom supposed to be on the roll.

Manchester. Probably 70 to 80 per cent.

LABOR AND POLITICS— APPENDIX. 563

P 7. Have candidates for office promised higher wages, better

hours, etc., for employees ? Cite cases.
Manchester. Very probably.

G — Labor.
G 1. The following data are for the year ending:

Glasgow. 1905.

Manchester. December 31, 1905.

Liverpool. December, 1905.

St. Pancras. No answer.

Newcastle — Supply. December 1, 1905.

Newcastle — District. December 31, 1905.

City of London Lighting Co. December, 1905.
G 4. What was the average number of officers for the year?

Glasgow. 700.

Manchester. 770.

Liverpool. No answer.

St. Pancras. 200.

Newcastle — Supply. No answer.

Newcastle — District. 110.

City of London Lighting Co. Commercial clerks, canvassers,
women clerks about 45.
G 5. What was the average number of wage workers for the year?

Glasgow. 600.

Manchester. 770.

Liverpool. No answer.

St. Pancras. 180.

Newcastle — Supply. No answer.

Newcastle — District. 98.

City of London Lighting Co. 514.
G 9. How was overtime paid for ?

Glasgow. 1| for overtime, double time for Sunday, men paid
a weekly wage not paid for overtime if worked, but for holidays.

Manchester. 1£ and 1^ time week days. Double time Sun.

Liverpool. No answer.

St. Pancras. By the hour.

Newcastle — Supply. No overtime for upstanding wages. Men
by the hour are paid 1J time for first 2 hours and then 1£ for
overtime.

Newcastle — District. Weekdays ordinary rate. Sundays 1-J
time for engineers and firemen. Double time for fitters and others.

City of London Lighting Co. By allowance in time varying
from base time to double time.

G 10. State what vacation, including holidays, with pay was
allowed to wage workers.

Glasgow. Men paid by the hour do not get paid for holidays.
Paid for any overtime they work.

Manchester. Engine room staff generally — one week; la-
borers, none.

Liverpool. One week holiday allowed with pay after 12
months' service.

564 NATIONAL CIVIC FEDERATION.

St. Pancras. All men employed 12 months and over 7 days.
Staff 14 days.

Newcastle — Supply. 10 days station men. 14 days others.

Newcastle — District. Fitters and Power Station Employees —
2 weeks. Foreman and Meter Inspectors — 2 weeks. Outside men
1 week.

City of London Lighting Co. Those on fixed weekly wage are
allowed 1 week and national holidays. Those paid by day or hone
get from 1-7 days.

G 11. State what vacation with pay was allowed to salaried em-
ployees.

Glasgow. From 5-21 days per annum.

Manchester. 10 and 14 days in summer and usual recognized
holidays.

Liverpool. Under 10 years' service 2 wees. Over 10 years'
service 3 weeks.

St. Pancras. 14 days.

Newcastle — Supply. Officials 21 days. Other salaried em-
ployees 14 days.

Newcastle — District. 2 weeks.

City of London Lighting Co. Generally 2 weeks in addition
to national holidays. Superintendent and heads of four depart-
ments 3 weeks.

G 12. State what allowance was made to wage workers for sick
leave.

Glasgow. If hourly paid none. If weekly, half pay.

Manchester. None except in case of accident when half pay is
usually granted.

Liverpool. None.

St. Pancras. No sick leave allowance except for staff hands.

Newcastle — Supply. One week's wages and then no more
until they return.

Newcastle — District. Foremen, Fitters and Meter Inspectors,
upstanding wage.

City of London Lighting Co. Weekly servants get full pay for
maximum of three months subject to discretion of company and
doctor's certificate.

G 13. State what allowance was made to salaried employees for
sick leave?

Glasgow. Full pay for a month.

Manchester. Full salary for a certain period.

Liverpool. No deduction made from salary for ordinary sick
leave.

St. Pancras. Full pay and half according to directions of
Committee.

Newcastle — Supply. First 6 weeks full pay. Second 6 weeks
half pay. No more till return.

Newcastle — District. Full wages.

City of London Lighting Co. Full pay at discretion of com-
pany for three months.

LABOR AND POLITICS— APPENDIX. 565

G 15. Who paid for badges and uniforms?

Glasgow. Department.

Manchester. Corporation.

Liverpool. Meter readers' uniforms and enginemen's and
firemen's overalls supplied by Corporation.

St. Pancras. None used.

Newcastle — Supply. Company.

Newcastle — District.

City of London Lighting Co. Where necessary the company
supplies.
G 16. Were employees required to give surety bonds ?

Glasgow. No.

Manchester,. No.

Liverpool.

St. Pancras. Yes, in case of Chief Clerk.

Newcastle — Supply. (Collectors.) We are guaranteed with
insurance company against loss.

Newcastle — District.

City of London Lighting Co. Not directly, but company in-
sure in a guarantee company in all cases where control or handling
of money is concerned and pay the premium.
G 17. Who paid the premiums?

Glasgow. None.

Manchester.

Liverpool.

St. Pancras. The Council.

Newcastle — Supply. Company.

Newcastle — District. '

City of London Lighting Co.

G 18. What provision was made for technical instruction?

Glasgow. None, but facilities are granted to allow young en-
gineers to attend regularly evening classes at Technical College.

Manchester.

Liverpool.

St. Pancras. None.

Newcastle — Supply. None.

Newcastle — District. Donations to colleges.

City of London Lighting Co. Each department train their
own men.
G 19. Were prizes offered for faithful service?

None.
G 21. Describe pension system for old age or infirm employees.

Glasgow. None. Friendly Society worked by a committee
of employees.

Manchester. Thrift fund under which a certain per cent, is
deducted from salary or wages.

Liverpool. None.

St. Pancras. None.

Newcastle — Supply. Old employees kept on as far as possible
and given light work.

5G6 NATIONAL CIVIC FEDERATION.

Newcastle — District. None.

City of London Lighting Co. Superannuation fund for sal-
aried employees for this purpose.
G 22. Did local benefit associations exist among employees?

Glasgow. Yes.

Manchester. Provident and Sick Fund for officials.

Liverpool. Employees have formed Mutual Aid Society to
assist members when off sick.

St. Pancras. Yes.

Newcastle — Supply. Sick Fund. They subscribe 6d. per
week and in case of illness are allowed a figure in proportion to
their wages.

Newcastle District. Yes. Sick Benefit.

City of London Lighting Co. Company interest themselves
and direct a Sick Club supported and controlled by wage earners
and make an allowance to sick members of one-half the allowance
made by the Club.

G 23. If there were, did municipality or company contribute to-
the funds?

Glasgow. No.

Manchester. Yes.

Liverpool. No.

St. Pancras. No.

Newcastle — Supply. Yes. Guarantee £20.

Newcastle — District. Yes. Company contributed.

City of London Lighting Co.

G 24. What other methods were used by the municipality or com-
pany to improve the social welfare, such as club houses,
libraries, gymnasiums, excursions, toilet facilities, etc.?

Glasgow. Department has Eambling Club, Eeading Club,
Harriers Club, Photographic Club, bath rooms and a few journals
for the staff.

Manchester. Athletic Club, but no Social Clubs or Club
Houses so far.

Liverpool. Employees formed Athletic, Social and Thrift
Society and the Corporation allow them the use of land and Club
room without charge.

St. Pancras. Baths, etc. Officers of Council have their own
Swimming and Cricket Clubs.

Newcastle — Supply. None.

Newcastle — District. Bath room and lavatory at Works.

City of London Lighting Co. Annual excursion to which
Company contribute and also give full day's pay.
G 25. Did employees get free service or gratuities of any sort?
If so, what?

Glasgow. None.

Manchester. No.

Liverpool.

St. Pancras. No.

LABOR AND POLITICS— APPENDIX. 567

Newcastle — Supply. Salaried officers allowed current acct.
instead of 3f per unit less 5 per cent, the usual rate.

Newcastle — District.

City of London Lighting Co. No free service or perquisites,
but gratuities are granted for special work done.
G 26. How frequently were different classes of employees paid ?

Glasgow. Once per week.

Manchester. "Weekly generally. Certain officials monthly.

Liverpool.

St. Pancras. Weekly.

Newcastle — Supply. Officials monthly. All others weekly.

Newcastle — District. Street laborers daily. Workmen weekly.
Officials monthly.

City of London Lighting Co. Salaried staff monthly. Others
weekly.
G 27. Was payment made promptly and regularly?

Yea.
G 28. Were they paid by cash, check or due bill?

Both.
G 29. When and where were payments made?

At works.
G 30. How were wages fixed and by whom?

Glasgow. Standard rate of wages to all tradesmen. Scale for
all others shown on engaging men.

Manchester. Committee.

Liverpool.

St. Pancras. According to trade-union rates.

Newcastle — Supply. Department Managers.

Newcastle — District. Managing Director and Secretary.

City of London Lighting Co. According to class and value of
work by Chief Engineer.
G 31. Were union rates observed?

Glasgow. Yes.

Manchester. Yes.

Liverpool. — —
- St. Pancras. Yes.

Newcastle — Supply. No. \

Newcastle — District. No. We believe we have a little better.

City of London Lighting Co. No, but standard rates adopted
if reasonable.
G 32. If there were trade agreements, state them.

None.
G 33. Was there any form of collective bargaining?

None.

G 34. Has there ever been any concerted action among employees
to have wages raised or hours shortened? Describe.

Glasgow. Workmen who are not tradesmen have " Municipal
Employees' Assoc." and through their Secretary they have asked
for increase of wages or have pointed out alleged grievances to
heads of departments.

568 NATIONAL CIVIC FEDERATION.

Manchester. Petitions have been received from different
grades of men for advances.

Liverpool.

St. Pancras. None.

Newcastle — Supply. None.

Newcastle — District. No.

City of London Lighting Co. About twice in ten years a few
men have signed a letter asking for revision of rates and hours.
G 37. Was the municipality or company opposed to organized
labor ?

City of London. " Absolutely opposed."

Others, no.

G 38. Has there ever been a strike on the plant ? If so, describe*
fully.

Manchester. Yes, amongst one section of the mechanics last
summer.

Others, no.
G 39. How were labor disputes settled?

Glasgow. By Committee and afterwards by the whole Council.

Manchester. Either directly by the officials or by the Com-
mittee and men's representatives.

Liverpool.

St. Pancras. By Committee of the Council.

Newcastle — Supply.

Newcastle — District. None to settle.

City of London Lighting Co. None, but when they arise the
agitators will go.

G 44. Were bicycles used in the business by employees? If so,
how many and for what purpose?

Glasgow. One bicycle used by Superintendent of Street Light-
ing Department.

Manchester. Yes. Mains and Substation officials.

Liverpool.

St. Pancras. No.

Newcastle — Supply. Yes, and motor cars.

Newcastle — District. No.

City of London Lighting Co. No.
G 45. Did employees ride in the street cars for business?

Glasgow. Yes, but paid like any other citizen.

Manchester. Yes.

Liverpool. Yes.

St. Pancras. On trains and 'buses.

Newcastle — Supply. Yes.

Newcastle — District. Yes.

City of London Lighting Co. Where necessary.
G 46. How were their fares paid ?

Glasgow. Either by supplying carchecks or by petty cash ac-
counts at end of week.

Manchester. Generally by small tokens.

Liverpool. By tickets at ordinary prices.

LABOR AND POLITICS— APPENDIX. 569

St. Pancras. By Council.

Newcastle — Supply — By Company, weekly.

Newcastle — District. By Company.

City of London Lighting Co. — Cash on production of voucher.
G 47. Were any technical journals subscribed for?

Yes, in all cases.

G 48. Did the Superintendent or Engineer attend technical meet-
ings?

Yes.
G 49. If so, were his expenses paid by himself ?

Glasgow. Yes.

Manchester. No.

Liverpool.

St. Pancras.

Newcastle — Supply. Yes.

Newcastle — District. No.

City of London Lighting Co. Yes.

G 50. Number of persons killed during past year ? (a) Employees.
(&) Others.

None, in all cases.
G 51. Number of persons injured, (a) Employees. (&) Others.

Glasgow. 20.

Manchester. 8.

Liverpool. None.

St. Pancras. None in doing this work.

Newcastle — Supply, (a) 30.

Newcastle — District. Two. (a) One. (&) One.

City of London Lighting Co. (a) About 51, mostly trivial.
(&) None.
G 52. What was the amount of damages usually paid for death?

Not answered.

TRAMWAYS.
E — Organization.
E 9. May they also hold other public office?

Glasgow. Yes, but not under City Council.

Liverpool. Yes.

Dublin. Yes.
E 10. Do they always, generally, exceptionally or never?

Glasgow. Yes.

Liverpool. Generally.

Dublin. Generally.

E 18. What is the official title of the chief executive officer (or
officers, if more than one of equal rank) ?

Glasgow. General Manager.

Liverpool. Traffic Manager.

Dublin. 1. Secretary. 2. Manager.

E 19. Is the head of the engineering service subordinate to the
chief executive officer, co-ordinate with him or united in
one man?

Glasgow. Subordinate.

570 NATIONAL CIVIC FEDERATION.

Liverpool. He holds an independent position.

Dublin. Subject to control of Board.

E 20. Is the head of the engineering service an engineer by pro-
fession ?

Liverpool. Yes.

Dublin. Yes.
E 28. How long has the present incumbent served?

Glasgow. Twenty-five years altogether.

Liverpool. Thirty years.

Dublin. Secretary thirty years.
E 29. Does he devote all of his time to the business?

Glasgow. Yes.

Liverpool. Yes.

Dublin. Yes.
E 30. What was his annual salary or pay for the last fiscal year?

Glasgow. £1,000.

Liverpool. £700.

Dublin. Not published.

Norwich. No answer.

E 31. Give titles and annual salaries of the ten highest paid
subordinates of the chief executive officer for the last
fiscal year.

Glasgow. No answer.

Liverpool. See Sheet.

Dublin. See Sheet.

Norwich. No answer.

E 32. Give number of all salaried officers during last fiscal year.
(a) Total. (&) Average.

Glasgow. No answer.

Liverpool, (a) Seventy.

Norwich. No answer.
E 33. How are the subordinate officials and employees selected?

Glasgow. By the General Manager.

Liverpool. By competitive examination and promotion.

Dublin. By 1. Secretary. 2. Manager. 3. Electrical En-
gineer, in various departments.

Norwich. By Assistant Manager who also acts as Traffic
Manager and Assistant Engineer.
E 34. How and by whom are they discharged ?

Glasgow. By General Manager.

Liverpool. The Manager and confirmed by the Tramways and
Electric Power and Lighting Committee.

Norwich. Assistant Manager.
E 35. What positions are filled for definite terms?

Glasgow. None.

Liverpool. No answer.

Dublin. None.

Nonvich. No answer.
E 36. Who decides when and how many men are to be employed?

Glasgow. General Manager.

LABOR AND POLITICS— APPENDIX. 571

Liverpool. The Manager.

Dublin. Chief officer subject to approval of Board.

Norwich. Assistant Manager.
E 37. What is the usual length of service?

Liverpool. No answer.

Dublin. During good and satisfactory service.

Norwich. 70 per cent, of employees in service since opening.
E 38. What is the system of promotion?

Glasgow. No answer.

Liverpool. If competent from the ranks.

Dublin. Merit and length of service.

Norwich. By merit.
E 40. Is employment restricted to citizens?

Glasgow. No.

Liverpool. Yes, to a certain extent, preference being given
to men who are resident in the city.

Dublin. No.

Norwich. No.
E 41. Are there any age restrictions?

Glasgow. No.

Liverpool. Yes. Conductors must not be under 21 nor
over 30.

Dublin. No.

Norwich. No.
E 43. Are positions distributed among the needy?

Glasgow. No.

Liverpool. Yes, if competent.

Dublin. No.

Norwich. No.

F — Political Conditions.

F 2. Give the number of votes cast at the last city election and
date of election.

Liverpool. No answer.

Dublin. No answer.
F 3. How many of the employees are voters?

Liverpool. All householders.

Dublin. No answer.

F 4. If any employees hold city office, state how many and what
positions ?

Liverpool. None.

Dublin. No answer.

Norwich. No.

F 5. Have the votes of employees affected city elections? Cite
instances.

Glasgow. No.

Liverpool. Know of none.

Dublin. No answer.

572 NATIONAL CIVIC FEDERATION.

F 6. Have they used political power to secure higher wages,
fewer hours, etc.? Cite instances.

Liverpool. No answer.

Dublin. No answer.

F 7. Have candidates for office promised higher wages, better
hours, etc., for employees? Cite cases.

Liverpool. No answer.

Dublin. No answer.
F 8. Are employees active in party work?

Liverpool. No.

Dublin. No answer.
F 9. Are they expected or required to pay political assessments ?

Liverpool. No.

Dublin. No answer.

F 10. What evidence is there of the influence of private com-
panies upon the nomination and election of members of
the franchise granting and franchise controlling authori-
ties?

Liverpool. None.

Dublin. No answer.
F 11. To whom has free service (transportation) been given?

Liverpool. Chief officials.

Dublin. Officials of company. Employees of company in
uniform. Editor and chief reporters of Dublin newspaper and
to certain officials of the local authorites.

Norwich. Police. Certain Corporation officers. Employees
in uniform going to and from work.

G — Labor.

G 1. The following data are for the year ending:
Glasgow. December 31, 1905.
Liverpool. 1905.
Norwich. June 30, 1905.

G 2. What was the total number of all officers, clerks and em-
ployees for the last fiscal year?

Liverpool. 2,292.

London County Council. 7,500.
G 3. What were the dates of elections ?

Glasgow. First Tuesday of November.

Liverpool. No answer.

Dublin. No electors.
G 4. What was the average number for the year?

Glasgow. One.

Liverpool. No answer.

Norwich. June, 1906, 231.
G 5. What was the average number of wage workers for the year ?

Liverpool. No answer.

Norwich. No answer.

LABOR AND POLITICS— APPENDIX. 573

G 6. Wages paid?

Liverpool. No answer.

Dublin. No answer.

Norwich. No answer.
G 7. Legal maximum of hours of labor?

Glasgow. None. Agreement between masters and men.

Liverpool. No answer.

Dublin. None.

Norwich. None.
G 8. Hours of actual work.

Liverpool. No answer.

Dublin. (See Sheet.)

Norwich. (See Sheet.)
G 9. How was overtime paid for?

Liverpool. At per hour.

Dublin. Generally as time and one-half.

Norwich. Men in employ of Engineering Department 1J
time. Others at ordinary rate.

G 10. State what vacation, including holidays, with pay was al-
lowed to wage workers.

Glasgow. All employees allowed five days holiday with pay
after six months satisfactory service.

Liverpool. Drivers, conductors and inspectors one week with

pay-

Dublin. Traffic Staff, one day off in twelve at full pay after
first year. Others two weeks to one month according to rank and
length of service.

Norwich. Only foremen, engineers and inspectors get one
week.

G 11. State what vacation with pay was allowed to salaried
employees.

Glasgow. Salaried Staff allowed fourteen days annually with
pay.

Liverpool. 14 days less 10 years service. 21 days over 10
years service with full pay.

Norwich. Inspectors one week. Officials two weeks, per
annum.

G 12. State what allowance was made to wage workers for sick
leave.

Glasgow. No allowance was made for sick leave, but a De-
partmental Society and receive from this.

Liverpool. Each case considered on its merits. Have Sick
Benefit Society.

Dublin. None.

Norwich. Co. pay to Benefit Society 30 per cent.

574 NATIONAL CIVIC FEDERATION.

G 13. State what allowance was made to salaried employees for

sick leave.

Glasgow. Allowed full pay at discretion of General Manager.
Liverpool. Full pay is allowed.
Dublin. Allowed pay during illness.
Norwich. No special allowance. Inspectors a week.

G 14. In case of accident to employees, who paid medical ex-
penses ?

Glasgow. Medical attendance paid by Accident Insurance Co.
under Employer's Liability Policy for first visit. If employee is
member of Departmental Friendly Society no charge for subse-
quent visits.

Liverpool. Men's Benefit Society.

Dublin. Company.

Norwich. Insurance Co.

G 15. Who paid for badges and uniforms?

Glasgow. Paid for by the Company.

Liverpool. Tramways and Electric Power and Lighting Co.

Dublin. Company.

Nonvich. Company pays for badges and uniforms. Men 2/3.
Co. 1/3.

G 16. Were employees required to give surety bonds ?

Glasgow. No security asked from any employee except office
staff.

Liverpool. No.

Dublin. Yes.

Norwich. Conductors deposit £2.

G 17. Who paid the premiums?

Glasgow. By Corporation on surety bonds.
Liverpool. No answer.
Dublin. None. Bonds must be personal.
Norwich. Company.

G 18. What provision was made for technical instruction?

Glasgow. Fully equipped school fitted out at the depots where
motormen were instructed by experienced engineers.

Liverpool. Six months training as motormen.

Dublin. No.

Norwich. Taught in cars and afterwards examined.

G 19. Were prizes offered for faithful service?

Glasgow. No prizes offered, but those with longer service get
a gradual increase in wage. Motormen who keep clear of accidents
for 26 weeks get a bonus of one shilling per week.

Liverpool. Merit pay granted for long and faithful service.

Dublin. No. Promotion the only reward.

G 20. Describe system of profit sharing, if any.
Glasgow. No system of profit sharing.

LABOR AND POLITICS— APPENDIX. 575

Liverpool. None.

Dublin. None.

Norwich. None.
G 21. Describe pension system for old age and infirm employees.

Glasgow. Departmental Friendly Society. Members paid
death allowance. Free medical advice and medicines. Free ad-
mission to hospitals and Convalescent Homes.

Liverpool. System now being propounded. Not quite com-
plete.

Dublin. None.

Norwich. None.
G 22. Did local benefit associations exist among employees ?

Glasgow. Yes.

Liverpool. Yes.

Dublin. Yes.

Norwich. A sick club.

G 23. If there were, did municipality or company contribute to
the funds?

Glasgow. Municipality contribute to Friendly Society Funds
and to Superannuation Funds.

Liverpool. Yes. Tramways and Electric Power and Lighting
Com. contribute.

Dublin. Company contributed.

Norwich. Co. contributes £50 per year.

G 24. "What other methods were used by the municipality or
company to improve the social welfare, such as club houses,
libraries, gymnasiums, excursions, toilet facilities, etc.?

Glasgow. Recreation room in depots, Football clubs, Cricket
clubs, ambulance classes, swimming clubs, draught clubs, chess
clubs, temperance societies, social clubs, etc.

Liverpool. Social Athletics and Thrift Society. Club room
at each depot.

Dublin. Lunch rooms and cooking facilities. Excursions
given annually to part of staff, etc.

Norwich. Cricket Club. Concerts in winter. Excursions
in summer.

G 25. Did employees get free service or gratuities of any sort?
If so, what ?

Glasgow. Employees get no gratuities of any kind.

Liverpool. Free service to and from duty. No gratuities.

Dublin. Yes. When in uniform travel free to and from
work.

Norwich. Free service to and from work.
G 26. How frequently were different classes of employees paid?

Glasgow. Office staff monthly. All others weekly.

Liverpool. "Weekly and monthly.

Dublin. Weekly.

Norwich. Weeklv.

576 NATIONAL CIVIC FEDERATION.

G 27. Was payment made promptly and regularly?

Glasgow. Payments of wages promptly and regularly made
on same day at same time each week and on last day of each month.

Liverpool. Yes.

Dublin. Yes.

Norwich. Yes, each Saturday.
G 28. Were they paid by cash, check or due bill?

Glasgow. Cash.

Liverpool. Cash.

Dublin. Cash.

Norwich. Cash.
G 29. When and where were payments made?

Glasgow. Office staff paid at office. Wages of all other men
paid at depots or on street where they may be at work.

Liverpool. Depots and Termini.

Dublin. General office is central and wages are sent to those
who cannot reach office.

Norwich. At each department.
G 30. How were wages fixed and by whom?

Glasgow. Wages fixed by Tramways Committee and approved
by City Council.

Liverpool. Tramways and Electric Power and Lighting Com.
and confirmed by City Council.

Dublin. By chief officers in various departments.

Norwich. Engineer and Manager.
G 31. Were union rates observed?

Glasgow. In case of artisans and laborers the standard rate
of wages recognized by the masters and men in the district always
paid.

Liverpool. No union in Liverpool.

Dublin. Co. pays as much as union rates.

Norwich. No.
G 32. If there were trade agreements, state them.

Glasgow. Corporation of Glasgow always conform to any
trade agreements that are made by outside masters.

Liverpool. No answer.

Dublin. None.

Norwich. No answer.
G 33. Was there any form of collective bargaining?

Glasgow. No system of collective bargaining.

Liverpool. No.

Dublin. None.

Norwich. No. Employees have no union.

G 34. Has there ever been any concerted action among employees
to have wages raised or hours shortened? Describe.

Glasgow. Never been any.

Liverpool. Evervthing has been settled without objection.

Dublin. None.

Norwich. Yes, for increase of wages and also for extra time
allowance.

LABOR AND POLITICS— APPENDIX. 577

G 35. Were the employees organized in unions ?

Glasgow. Motormen and conductors and all members of the
traffic staff not organized in any way. Artisans generally members
of their own trade unions.

Liverpool. See No. 31.

Dublin. No.

Norwich II. No.
G 36. Was the "closed shop" or "open shop" policy in force?

Glasgow. Corporations do not confine themselves to men who
are members of trade-unions.

Liverpool. No answer.

Dublin. Open shop.

G 37. Was the municipality or company opposed to organized
labor ?

Glasgow. No.

Liverpool. No feeling in the matter.

Dublin. No.

G 38. Has there ever been a strike on the system ? If so, describe
fully.

Glasgow. Never been any strike on Tramway system.

Liverpool. No.

Dublin. No answer.

Norwich II. No.
G 39. How were labor disputes settled?

Glasgow. No labor disputes.

Liverpool. No labor disputes.

Dublin. No answer.

G 40. Were the laws relating to health, employer's liability, and
contract labor observed?

Glasgow. Eigidly observed by municipality.

Liverpool. Yes.

Dublin. Yes.

Norwich II. Yes.

G 41. Were there any printed or written instructions to em-
ployees? If so, enclose copies.

Glasgow. Yes.

Liverpool. No answer.

Dublin. Yes.

Norwich II. No answer.
G 42. How were employees treated by management?

Glasgow. Corporations fix the general conditions of service
and these rigidly adhered to. Strict discipline insisted on among
all sections of the staff.

Liverpool. Well.

Dublin. Generously.

Norwich II. No answer.

G 43. Did employees have a share in the management of the
system ?

Glasgow. General Manager is entirely responsible for man-
agement of the system.

Vol. III.— 38.

578 NATIONAL CIVIC FEDERATION.

Liverpool. Through their representatives in the City Council.

Dublin. No.

Norwich II. No.

G 44. Were bicycles used in the business by employees? If so,
how many and for what purpose?

Glasgow. No.

Liverpool. None used.

Dublin. No answer.

Norwich II. No.
G 45. Did employees ride in the street cars for business?

Glasgow. Only uniformed officials ride in street cars. If
others have occasion to do so, they are given tokens which are ac-
cepted by the conductors.

Liverpool. Uniformed men, free service to and from duty.
• Dublin. See before.

Norwich II. Yes.
G 46. How were their fares paid?

Glasgow. Tokens (Id. and -|d.) sold at face value to Public
Work's shops, warehouses, etc., for use of messengers.

Liverpool. Allowed to travel free in uniform.

Dublin. Not paid.

Norwich II. Free.
G 47. Were any technical journals subscribed for?

Glasgow. A considerable number of technical journals sub-
scribed for, for use of General Manager and his chief assistants.

Liverpool. Yes.

Dublin. Yes.

Norwich II. Yes.

G 48. Did the Superintendent or Engineer attend technical meet-
ings.

Glasgow. General Manager and heads of departments attend
meetings of Tramways' Association and also meetings of Engineer-
ing Societies.

Liverpool. Yes.

Dublin. Yes.

Norwich II. Yes.
G 49. If so, were his expenses paid by himself?

Glasgow. Expenses of General Manager and staff attending
meetings paid by Corporation.

Liverpool. Yes.

Dublin. Company paid.

Norwich II. No answer.

G 50. Number of persons killed during past year, (a) Employees.
(&) Others.

Glasgow. 1905, 19. (a) None. (6) 19.

Liverpool. Four, (a) (6) 4.

Dublin. Three, (a) Nil. (&) 3.

Norwich II. One. (6) One child.

LABOR AND POLITICS— APPENDIX. 579

G 51. Number of persons injured: (a) Employees. (6) Others.

Glasgow. 2,893. (a) 105. (b) 2,788.

Liverpool. No answer.

Dublin, (a) 39. (6)710. (9 6 claims only).

Norwich II. (b) 5.
G 52. What was the amount of damages usually paid for death?

Glasgow. Paid by Accident Insurance Co. Consequently no
record of sums actually paid.

Liverpool. Each claim settled on its merits.

Dublin. Cannot recall any case.

Norwich II. Settled by Insurance Co.
G 53. Were payments for injuries usually adequate?

Liverpool. No answer.

Dublin. Accident Insurance Co. paid by company a fixed sum
per annum and undertake all liability as to third party and em-
ployer's risk.

Norwich II. The Co. consider it is.
G 54. Were cases usually settled without lawsuit?

Glasgow. Almost all claims settled by Accident Insurance
Co. out of court.

Liverpool. Yes, the majority.

Dublin. Yes.

Norwich II. Yes.

G 55. May the municipality or company compromise or settle
claims without lawsuits?

Glasgow. Claims may be settled without lawsuits.

Liverpool. Yes.

Dublin. Yes.

Norwich II. Yes.

580

NATIONAL CIVIC FEDERATION.

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LABOR AND POLITICS— APPENDIX. 581

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582 NATIONAL CIVIC FEDERATION.

Manchester Corporation Gas Works.
Bradford Road Station.

Rate of Pay Amount

irned Weekl
Per Man.
f s. a.

2 12 6

No. of Occupation.

Hours

Per Hour, Day,

Men. l

Worked

or Week.

Carbonization :

3 Foremen

52/6

Sub-Foremen

36 Machinemen

'5/9

IButtyers, Attendants

5/3

Closing Lids, Attendants

5/3

Opening Pipes, Attend-

ants

5/3

Filling Furnaces, At-

tendants

5/3

51 Coke Wheelers

4/5

12 Patchers

5/7

12 Enginemen and Boiler-

men

5/3

16 Firemen

5/3

12 Cannel Breakers (En-

gines)

4/9

Hopper Fillers

....

14 Stackmen

f 1 at 5/7
{ 13 at 5/3

243

Tradesmen :

1 Foreman Bricklayer. . . .

54$

54/-

7 Bricklayers

lOd.

1 Foreman Mechanic

60/-

6 Mechanics

38/-

3 Turners

38/-

2 Drillers and Planers. . . .

30/-

1 Foreman Joiner

54$

lOd.

4 Joiners

9£d.

1 Pattern Maker

41/-

1 Wheelwright

54$

36/-

2 Barrowsmiths

J54$

29/5

1 Plumber

9$d.

2 Masons

9id.

1 Foreman Blacksmith...

42/-

2 Blacksmiths

" 1

1 at 38/-
1 at 36/-

1 Painter

54$

8$d.

Other Workmen:

6 Pipe Fitters

54$

Foreman 7$d.
4/2

4 Smiths' Strikers

1 at 26/3
3 at 25/2

1 Foreman Purifier

6/-

12 Purifiermen

Piecework.

1 at 45/-

20 Carters, etq

54$ H

1 at 5/3
18 at 4/5

* Average.

1 14 6
1116
1 11 6

1 11 6

1 11 6
166
1 13 6

1 11 6
1 11 6

1 86

1 13 6
1 11 6

2 14 0
255
300
1 18 0
1 18 0
1 10 0
255
232
210
1 16 0
1 19 6
195
232
232
220
1 18 0
1 16 0
1 18 7

1 14 1
1 6 3

1 16 0
*1 16 0
250
1 11 6
166

LABOR AND POLITICS— APPENDIX.

583

Rate of Pay

Amount

No. of

Occupation. Hours

Per Hour, Day,

Earned Weekly

Men.

Worked.

or Week.

Per Man.

£ «. d.

Mechanics' Laborers... . "

4/2

150

Pressuremen 8

5/7

1 13 6

Yard Foreman 54J

6/4

1 18 0

Railway Foreman

55/-

2 15 0

Cannel Discharges

4/2

150

Coke Trimming and

4/2

150

Pipe Layers

5/-

1 10 0

Crane Drivers

4/9

186

Gatekeepers

33/-

1 13 0

Storekeeper

35/-

1 15 0

Locomotive Drivers

5/3

1 11 6

Signalman

4/2

150

Joint Makers "

1 at 5/7
2 at 4/9

1 13 6

186

Youths

2/- to 3/2

12/- to 19/-

General Laborers "

4/2 to 4/6

(150
1 1 7 0

192

516

(Including C. W. G.)

Bradford Road Station (Carburetted Water

Gas).

Rate of Pay

Amount

No. of

Occupation. Hours

Per Hour, Day,

Earned Weekly

Men.

Worked.

or Week.

Per Man.

£ s. d.

Carburetted Water Gas:

Foremen Operators 8

5/9

1 14 6

Operators "

5/3

1 11 6

Helpers "

4/2

150

Enginemen and Boiler-

men "

5/3

1 11 6

Laborers (Generators). 54£

( 4/5
j 4/2

166
150

Clinkerers

Piecework.

*2 2 3

Purifiermen

Piecework.

*2 0 0

Carters 54£ <

2 at 4/10
2 at 4/-

190
140

Foreman (Mode Wheel

Depot) 8

60/-

300

No. of
Men.

Droylsden Station.

Rate of Pay Amount
Occupation. Hours Per Hour, Day, Earned Weekly

Worked. or Week.

Foremen Carbonizers ... 8 5/9

Retortmen " 5/3

Laborers 54i 4/2

Per Man.
£ s. d.
1 14 6
1 11 6
150

* Average.

584

NATIONAL CIVIC FEDERATION.

Street Mains and Lighting Department.

Hours
Worked.

No. of
Men.

Occupation.

Street Mains:
Inspector

Foremen

Sub-Foremen

Storekeeper

Blacksmiths

4
1

Main Pipe Gangers
Fitter

Gas Tubers

Carters

Pipe Layers

100

General Laborers . . .

Rate of Pay Amount
Per Hour, Day, Earned Weekly

or Week.

Per Man.

50/-

{

3 at 44/-
1 at 40/-

2
2

4
0

0
0

33/6

40/-

30/- and 36/- j

1
1

10
16

0
0

33/6

38/6

24/- to 33/6 {

4
13

25/-

-I

25/- to 32/- ]

-i

22/- to 24/- j

j.
1

242

Lamp Lighting:
Inspector

40/-

Foremen

. . . 25/- to 27/6

{

134

Lamplighters

25/-

[

1
1

(>
0

Cleaners

25/-

165

Men in the Street Mains Department work 54£ hours per week for
39 weeks, and rather more than 46 hours during three winter months,
giving an average of about 53 hours per week for the year.

Stoves Show Room (Deansgate) and Meter Repairing Shop (Gaythorn).

No. of
Men.

Occupation.

Stoves Show Room :
Foreman Inspector..

Inspectors

Rate of Pay
Hours Per Hour, Day, 1
Worked. or Week.

... 50i 46/-
" 25/6 to 38/-

Amount
Earned Weekly
Per Man.
£ s. d.
260
j 1 5 6

Foreman

" 42/-

220

Repairers, etc

" 3/4 to 5/2

(100

Gas Fitters

" 9d and 9Jd.

1 17 11

Youths .

1/2 and 1/5

7/- and 8/6

Meter Repairing Shop :
8 Repairers, etc .......... 54i

3 Youths ................ "

5 at 6/-

1 at 4/6

2 at 4/4
1/4 to 2/6

1 16 0

170

160

8/- to 15/

LABOR AND POLITICS— APPENDIX. 585

Holidays — Four days allowed, for which the men receive their
usual pay.

Overtime — Men working eight-hour shifts are allowed time and a
half for Sunday labor, three shifts. Tradesmen and Smiths' Strikers,
time and quarter, 5.30 to 7.30 P.M.; time and half, 7.30 to 9.30; and
double time afterwards. Fitters' Laborers, time and quarter, 5.30 to
7. 30 P. M. ; time and half afterwards. Joiners' Laborers, time and
quarter. General Laborers, time and quarter.

Sunday Labor — Tradesmen and Smiths' Strikers, double time.
Tradesmen's Laborers, time and half. General Laborers, time and half.

City of Birmingham Gas Department.
SCHEDULE OF WORK AND WAGES BOTH WORKS.

Agreement with Gas Workers' Union, November, 1900.

Saltley.

Shrs.

Fires, per Day.
Stint Rate
Workmen. Work. per of

Man. Wages.

Stokers Drawing and charging retorts, " sevens,"

including luting lids, quenching,

coke, and trying pipes 25 5/6

Ditto Drawing and charging retorts, " sevens,"

patent lids, quenching coke, and

trying pipes 27 5/6

Ditto Drawing and charging retorts, " sevens,"

" eights," or " nines," patent lids, no

quenching, pipes to try 27 5/6

Ditto Charging after rakes on " sevens," in-
cluding luted lids, or on " eights " or
" nines " with patent lids and stage
to move; no pipes to try nor coke to
quench 48 5/6

Ditto Charging after rakes on " sevens,"

" eights," or " nines," no stage to
move, no pipes to try, nor coke to
quench ; patent lids 65 5/6

Ditto Drawing retorts on " eights " or " nines,"

patent lids, stage to move, no pipes

to try nor coke to quench 48 5/6

Stokers Drawing retorts on " sevens," " eights,"

or " nines," patent lids, no stage to
move, no pipes to try, nor coke to
quench 55 5/6

Ditto Drawing and charging on " eights " or

" nines," patent lids, with stage to
move, pipes to try, but no coke to

quench 27 5/6

Mouth-
pieces.

Macainemen.. Drawing retorts, moving machines, rais-
ing, lowering, oiling, etc., also at- 202
tending to three regenerative fires to
below only; 6 hour charges 203 5/9

Ditto Charging retorts, moving machines,

raising, lowering, oiling, etc., also 202
attending to tnree regenerative fires to
below only; 6 hour charges 203 6/9

58B NATIONAL CIVIC FEDERATION.

Mouth- 8 hrs.
pieces, per Day.
Stint Rate
Workmen. Work. per of

Man. Wages.

Machineman's

Assistant... Backing-up after chargers, also attend- 202
ing to three regenerative fires below to
only ; 6 hour charges 203 6/6

Machinemen. . Drawing retorts, moving machines, rais-
ing, lowering, oiling, etc., also at-
tending to two regenerative fur-
naces below only; 5 hour 20 min.
charges 228 5/9

Ditto Charging retorts, moving machines, rais-
ing, lowering, oiling, etc., also at-
tending to two regenerative fires
below only; 5 hour 20 min. charges. 228 5/9

Machineman's

Assistant... Backing-up after chargers, also attend-
ing to two fires below only; 5 hour
20 min. charges 228 6/6

Machinemen . . Charging retorts, including raising, low-
ering, oiling, etc., two sets of ma-
chines on Nos. 1 and 2 ranges, No. 3
Retort House, including charging
odd retorts, which cannot be charged
by machines; no fires to attend to;
5 hour 20 min. charges 220 5/9

Ditto Drawing retorts, including raising and

lowering but one set of machines,
oiling and cleaning two sets of ma-
chines on Nos. 1 and 2 ranges No. 3
Retort House, including charging
odd retorts, which cannot be charged
by machines; no fires to attend to;
5 hour 20 min. charges 220 5/9

Ditto Drawing or charging retorts, including

raising and lowering, oiling, etc.,
two sets of machines on Nos. 1 and
2 ranges No. 3 Retort House, includ-
ing charging odd retorts, which can-
not be charged by machines; 6 hour
charges, with one fire each to attend
to below only 196 5/9

Machineman's

Assistant. . . Backing up after chargers on Nos. 1 and
2 ranges, No. 3 Retort House, assist-
ing hoist, two sets of rakes, and
charging odd retorts, which cannot
be charged by machines; no fires to
attend to; 5 hour 20 min. charges. . 220 6/6

Ditto Ditto ditto as above; 6 hour charges,

with one fire to attend to below only 196 5/6

Fires.

Firemen Attending ordinary fires, " fives,"

" sixes," or " sevens," with or with-
out secondary air supplies 9 5/6

Ditto Attending regenerators, " sevens,"

" eights," or " nines," top and bot-
tom with clinkering 6 5/6

LABOR AND POLITICS— APPENDIX.

587

Workmen.

Firemen

Coal Wheelers.
Ditto

Ditto
Ditto

Ditto

Coal

TJnloaders. . .
Coke Wheelers

Work

Fires,

Stint

per

Man.

Attending regenerators, " sevens,"
" eights," or " nines," top or bottom
only ............................. 12

Wheeling from trucks ................. 102

From stock up to 40 yards from Retort

House ....... ..................... 83

Ditto beyond 40 yards from Retort

House ........................... 69

Ditto into No. 1 or 4 coal crushers up to

68 yards from the crushers ......... 83

Ditto over 68 yards from the crushers. .. 69

8 hra-
per Day.
Rate

of
Wages.

5/6
6/-

5/-
5/-

Into coal crushers direct from trucks

Wheeling coke to outside of Retort
Houses, through usual doorways, to
a maximum distance of about 20
yards, other men being engaged to
take coke up mounds; from ordi-
nary or secondary air settings, no
quenching 78

Ditto From regenerative settings " sevens,"

no quenching, firing side, 89 mouth-
pieces, no quenching, opposite side,
67 mouthpieces, average 78

Ditto From subways of Nos. 1 and 2 ranges,

No. 3 Retort House, with quenching,
firing side, 75 mouthpieces, opposite
side, with quenching, 57, average. . 66

Ditto From No. 3 range, No. 3 Retort House,

settings, of " eights " or " nines,"
with quenching, firing side 84
mouthpieces, opposite side, with
quenching, 57 mouthpieces, average 70 6/-

Coke Wheelers From No. 4 range, No. 3 Retort House,
settings of " eights " or " nines,"
with quenching, firing side, 75
mouthpieces, opposite side, with
quenching, 57 mouthpieces, average 66 5/-

Ditto From firing side No. 4 range, No. 3

house, where coke is tipped into the
conveyor hopper with coke to
quench, hopper made workable 97 5/-

Coke Runners

Away

Pullers-up . . .

Breeze
Wheelers .

Coke Mounds
Men

Pipe Jumpers
Hot Retort
Menders .

To run coke up mounds per 8 hour shift

To pull barrows up coke mounds when

extra steep, per 8 hour shift

To run breeze into Retort Houses, and
put it on the fires per 8 hour shift,
and men cleaning up coal and other
odd jobs

To look after coke mounds, per 8 hour

shift

Per 8 hour shift, maximum, for 2 men . . 228

5/-

&/-

5/-

Per 8 hour shift, ordinary.

4/6
5/3

4/6

588 NATIONAL CIVIC FEDERATION.

Stint Rate
Workmen. Work. per of

Man. Wages.

Ditto Per 8 hour shift, after machines 6/-

Scui;fers Ditto ditto 4/6

Lidcleaners . . Per 8 hour shift 4/6

Purifiers (day

work) i'er day of 9 hours (53 per week) 4/9

Time and half to be paid to the fire-
men who come in on Sundays to
get fires ready from 6 a. m. to
1U p. m.

Swan Tillage.

Stint per

Man. Rate
Workmen. Work. Based of

upon Wages.
Saltley.
Mouth- 8 hrs.
pieces, per Day.

Stokers Drawing and charging retorts, trying

pipes, and quenching coke, luted lids 25 5/6

Ditto Ditto ditto (No. 1 Retort House) 31 5/6

Ditto Ditto latent lids, quenching coke, and

trying pipes 27 5/6

Machinemen. . Drawing retorts, moving machines, rais-
ing, lowering, oiling, etc., also at- 202
tending to three regenerative fires to

below only; 6 hour charges 203 6/9

Ditto Charging retorts, moving machines,

raising, lowering, oiling, etc., also 202
attending to three regenerative fires to

below only; 6 hour charges 203 5/9

Machineman's

Assistant. . . Backing up after chargers, also attend- 202
ing to three regenerative fires be- to

low only; 6 hour charges 203 5/6

Machinemen.. Drawing retorts, moving machines, rais-
ing, lowering, oiling, etc., also at-
tending to two regenerative fur-
naces below only; 5 hour 20 min.

charges 228 5/9

Ditto Charging retorts, moving machines, rais-
ing, lowering, oiling, etc., also at-
tending to two regenerative fur-
naces below only; 5 hour 20 min.

charges 228 5/9

Machineman's

Assistant. . . Backing up after chargers, also attend-
ing to two fires below only; 5 hour
20 min. charges 228 5/6

Fires.

Firemen Attending to ordinary fires, " fives,"

" sixes," or " sevens " 9 5/6

Ditto Attending regenerators, " sevens,"

" eights," or " nines," top and bot-
tom, with clinkering 6 5/6

Ditto Attending regenerators, " sevens,"

" eights," or " nines," top or bottom

only 12 5/6

LABOR AND POLITICS— APPENDIX. 589

Stint per Rate
Man. of
Workmen. Work. Based Wages.

upon 8 hrs.

Coke Saltley.per Day.

Wheelers .. Wheeling coke to outside of Retort

Houses through usual exits, to a

maximum distance of about 20

yards, other men being engaged to

take coke up mounds .. . 78 5/-

Dltto Ditto (No. 1 Retort House) 96 5/-

Ditto From subways, firing side, with quench-
ing, 75 mouthpieces, opposite side,

with quenching 57, average 66 5/-

Coke Runners

Away Per 8 hour shift 5/-

Pullers-up . . . When mounds are extra steep, per 8

hour shift 4/-

Pipe Jumpers. Per 8 hour shift 5/3

Hot Retort

Menders ... Ditto Ordinary 4/6

Ditto Ditto After machines 5/-

Scurfers Per 8 hour shift 4/6

Lid Cleaners. . Per 8 hour shift 4/6

Coal Wheelers Wheeling from truck 102 5/-

Ditto Ditto from No. 1 Retort House 121 5/-

Ditto Ditto from short stack 83 5/-

Ditto Ditto from long stack 69 5/-

Purifiers (day

work) Per day of 9 hours (53 per week) 4/9

Time and half to be paid to the fire-
men who come in on Sundays to
get fires ready from 6 a. m. to
10 p. m.

Windsor Street.
OLD HOUSES.

Stoker Retorts drawn and charged, patent lids,

pipes to try 30 5/6

Fires.

Fireman To come in on Sundays at 3 p. m. or 7

p. m., as required, to prepare fires

after stoppage 9 5/6

Mouth-
pieces.

Coke Wheeler. One to every three stokers 90 5/-

Coal Wheeler. One to every six stokers 4/9

NEW HOUSE.

Stoker 20 ft. retorts charged only, patent lids . . 52 5/6

Ditto 22 ft. 3 in. retorts charged only, patent

lids 48 5/6

Machineman. . Ross drawing machines, to open lids and
draw all the retorts on 21 beds (one
side), 6-hour work; two men to each

machine, viz.: One at 5/9

And one at 5/6

Arrol-Foulis charging machine, hand
geared. To charge all the retorts
on 21 beds, one side, and close lids,
6-hour work. Two men to each

machine, viz. : One at 5/9

And one at 5/6

590

NATIONAL CIVIC FEDERATION.

Workmen.
Machineman

Work.

Arrol-Foulis drawing and charging ma-
chines, hand geared. All charging
and drawing on 14 beds, one side,
6-hour work, opening and closing
lids, and all pipe jumping. Two
men at

And one at

Note. — Machinemen to oil and clean,
also assist in packing, changing
rakes or chains, replacing broken
wires, and light repairs to keep the
work going. One fitter and laborer
to be attached to each gang for re-
pairs to machines.

Fireman Regenerative furnaces, coke, one gen-
erator to a setting

Ditto Ditto, breeze, two generators to a setting

Note.— Firemen to come in on Sundays
at 2 p. m. or 6 p. m., as required,
to prepare furnaces after stoppage.
Exhaust steam to be applied to all
fires as far as this is available.

Cokewheeler. . No. 1 side. — 72 mouthpieces, wheeled 7
beds' length inside the house and 20
yards level run outside, or 15 yards
up mound; or 62 mouthpieces,
wheeled 7 beds' length inside the
house and 20 yards up mound when
not sufficient for a chain horse; or,
62 mouthpieces, wheeled through
archway and tipped into boats or
trucks.

Cokewheeler — No. 2 side. — 72 mouthpieces, wheeled
and tipped into boats or trucks; or,
62 mouthpieces wheeled through
archway across house and 15 yards
up mound at nearest opening; or 62
mouthpieces, wheeled through arch-
way from a distance of seven
beds on either side of same and
tipped to coke elevator; or, 62
mouthpieces, wheeled from No. 1
or A section, up platform at end
of house, and tipped either into
trucks outside or at end of platform.

Nos. 3 and 4 sides. — Six cokewheelers
to each section, or 56 mouthpieces
per man, to wheel all coke and tip
Into boats or trucks. If there should
not be sufficient boats or trucks for
the draw, the remainder of the
coke to be wheeled outside by the
six men.

If from No. 3 or F section, the coke
has to be wheeled past the middle
section and tipped into trucks, then
seven cokewheelers to be employed
on that section; or, seven coke-
wheelers to each section or 48

Rate

Wages.
8hrs.
per Day.

5/9
5/6

5/6
5/6

LABOR AND POLITICS— APPENDIX. 591

Stint Rate
per (>i

Workmen. Work. Man. Wages.

Mouth- 8 hrs.
pieces, per Day.

mouthpieces per man, to wheel all
coke outside the house, or from
No. 3 or P section, to the coke
elevator. If seven men so start
on a draw, they are to be kept on
to finish the draw, whether or not
all the coke has to be wheeled out-
side, on completion of which the sev-
enth man may be withdrawn.
In each case the distance outside for
the coke to be wheeled is 20 yards
on the level, or 15 yards up mound
in front yard, or 30 yards up mound

at end of retort house 5/-

Coke Wheeler All cokewheelers to clean up the cellar
opposite the retorts on which they
are at work.

All coke to be forked if required. Load-
ing into boats, per boat load, 2s.
9d.; into railway wagons, inside or
outside house, 2£d. per ton, or 6d.
per ton for small or broken coke,
all extra, and to be divided amongst
the whole of the men employed on
cokewheeling, according to the num-
ber of turns worked.

Pipe Jumper. In gangs of three men, 36 beds 5/3

Hot Retort

Menders ... To do any other work that may be re-
(after ma- quired, maximum per 8-hour shift. . .. 5/-

chines only)

Ditto

(ordinary) Ditto ditto 4/6

Lid Cleaners. . Maximum ditto . . 4/6

Coal

Trimmers 175 4/9

Coal

Unloaders.. . Bottom door wagons, per wagon ...

Side door wagons, per wagon

Steel hopper wagons, per wagon

Or to do any work at 6d. per hour.

Ditto Attending to Conveyor and Coal Hopper,

per truck

Adaerley Street.

Stoker Drawing and charging retorts, patent

lids, pipes to try 27 5/6

Fires.

Fireman To come in on Sundays at 3 p. m. or

7 p. m., as required, to prepare fires

after stoppage 9 5/6

Slow fires one-half the rate of ordi-
nary fires.

f>92 NATIONAL CIVIC FEDERATION.

Rate

Workmen. Work. Wages.

Mouth- 8 hrs.
pieces, per Day.

Coke Wheeler 78 5/-

Coal Wbeeler. One to every four stokers 108 4/9

Coal

Trimmers . . Per hour

Hot Retort
Mender and

Scurfer 4/6

Purifiers Three men to empty and charge one

purifier per day, lime or oxide, at

14/3 per purifier 4/9

Minimum wage in the retort house,
4/- per 8-hour shift.

As far as possible there shall be no extra work, but odds and
ends of work, or work that would otherwise be standing for want
of an odd man, may be divided amongst the men on duty, and is
to be paid for at a proportionate rate.

This to apply more particularly to night work, or between
the hours of 6 P. M. and 6 A. M.

All the WorJcs.

Rate.

Valveman, per 8 hour shift 4/10

Engineman, per 8 hour shift 5/-

Boilerman, per 8 hour shift 4/4

Gateman, per 8 hour shift 3/8

Yardmen (ordinary), maximum per week 23/-

Yardmen (handy), maximum per week 27/-

Coke Loaders, per hour 5Jd.

Coal Crushers or Breakers or Elevators, per 8 hour shift. . . . 4/6

Coal Conveyor Attendants, per 8 hour shift 4/6

Locomotive Drivers, per day of 9 hours (53 per week) 5/-

Locomotive Shunters, per day of 9 hours, maximum per day. . 4/4

Water Gas Makers, per 8 hour shift 5/6

Attendants, per 8 hour shift 4/3

Cold Retort Menders, per day of 9 hours 4/6

Flue Cleaners, per day of 9 hours 4/6

Sunday work between the hours of 6 A. M. and 10 p. M. to be
paid for at the rate of time and half.

During the months of May, June, July, August, and Septem-
ber carbonising work to be suspended on Sundays between 6. A. M.
and 10 P. M., and also, as far as practicable, during the remainder
of the year.

HOLIDAYS.

Carbonisers one day for the first four months' service, and one
day for each succeeding two months. One week for not less than
10 months' continuous service, subject in each case as at present
to forfeiture, either wholly or in part, for irregularity in attend-
ance at work. The one day for two months to be forfeited in the
event of one day's absence without leave.

Valve, gate, engine and boiler men, foreman purifier, and fore-
man coke loaders, one week's holidays per annum. All others,

LABOR AND POLITICS— APPENDIX. 593

subject to their having been employed continuously for three month*
previous to any such holiday, Christmas Day, Whit-Monday, and
the first Monday in August, or one day for four months' continuous
employment.

In the event of any grievance or alleged departure from the
schedule, the men are required to make their complaint in the first
instance to the ganger or foreman immediately in charge of the
work. If not remedied, it may then be laid before the Superin-
tendent or Engineer, and the men may, if they choose, be accom-
panied for this purpose by a deputation of their fellow-workmen.

The gangers or foremen will be instructed to report daily to
the Engineers as to any and all complaints they may receive, and
how such have been dealt with.

HEISTEY HACK,
CHAELES HUNT,

Engineers.

26th November, 1900.

Corporation of Leicester.

GAS AND ELECTKIC LIGHTING DEPARTMENT.

Weekly

Rate of Pay. Wage.

Gas Works — • £ s. d.

7 Stokers' Foremen 7/6 per day 2 5 0

4 Stokers' Foremen 6/8 per day 2 0 0

222 Stokers 5/5 per day 1 12 6

76 Barrowers out of coke. . . 5/- per day 1 10 0

27 Firemen 5/- per day 1 10 0

25 Laborers in retort house. . 4/6 per day 1 7 0

11 Enginemen 5/- per day 1 10 0

6 Boilermen 6d. per hour 170

100 Coal and Cokemen 6d. per hour 1 7 0

3 Coal and Cokemen's Fore-
men 1 15 0

Yard Laborers 6d. per hour 1 7 0

Yard Foremen 1 15 0

Yard Foreman 2 2 0

Carpenters' Foreman 8/4 per day 2 10 0

Carpenters 9d., 8, 7-J, 7d. per hour (7£

used)

2 Carpenters' Laborers 6id. per hour 1 9 3

1 Bricklayers' Foreman 8/4 per day 2 10 0

19 Bricklayers 9d. per hour 206

13 Bricklayers' Laborers 6£d. per hour 193

1 Painters' Foreman 9d. per hour 2 0 6

1 Painter 8|d. per hour 1 11 6

1 Painters' Laborer 7d. per hour 1 11 6

2 General Fitters' Foremen. 8/8 per day 2 12 0

16 General Fitters 1 at 8, 1 at 7i, 5 at 7, 9 at 6|

18 General Fitters' Laborers 6d. per hour 1 7 0

9 Blacksmiths 1 at 9, 3 at 8, 5 at 7

1 Purification Foreman.... 6/8 per day 200

24 Purification Men Average 1 14 0

1 Horse Keeper 29/6 per week 1 9 6

14 Horse Keepers 26/- per week 1 6 0

9 Metermen, repairing 1 at 8, 1 at 7£, 1 at 7, 6 at 6d

. . Pressure taking 30/- per week 1 10 0

Vol. III.— 39. I I '1 'T

594 NATIONAL CIVIC FEDERATION.

Weekly

Rate of Pay. Wage.

Chemical Works — £ s. d.

1 Yard Foreman 8d. per hour 1 16 0

14 Engine, Boiler and Salt-
men 7£d. per hour 1 13 9

1 Blacksmith 7£d. per hour 1 13 9

2 Fitters 8d. and 7d. per hour

22 Laborers 6d. per hour 170

Water Gas Plant—
1 Foreman 7/- per day 2 2 0

4 Laborers 1 at 6£, 3 at 6d

Stove Department — Aylestone —

1 Foreman 7/6 per day 2 5 0

5 Fitters and Cleaners 7£d. per hour 1 13 9

3 Fitters and Cleaners 7d. per hour 1 11 6

14 Fitters and Cleaners 6Jd. per hour 1 9 3

4 Laborers 6d. per hour 1 7 0

Stove Department — Town Offices —

1 Fitter Foreman 9d. per hour 2 0 6

6 Fitters' Foremen 8d. per hour 1 16 0

5 Fitters' Foremen 7|d. per hour 1 13 9

9 Fitters' Foremen 7d. per hour 1 11 6

11 Fitters' Foremen 6^d. per hour 193

4 Fitters' Foremen 17/6, 12/6, 12/6, 10/-

Mains and Services Department —

1 Mainlayer lOd. per hour 2 5 0

1 Mainlayer 9|d. per hour 229

1 General Fitter 9£d. per hour. 2 2 9

12 Mainlayers 8d. per hour 1 16 0

62 Laborers 6at 7i,15at 7,22t.t 6i,19at6d

. . Inspectors

8 Porters and Messengers

Fitting Department —

4 Fitters 9d. per hour 206

21 Fitters 8£d. per hour 1 18 3

4 Fitters 8d. per hour 1 16 0

3 Fitters 7id. per hour 1 13 9

17 Fitters 7d. per hour 1 11 6

6 Fitters 6^d. per hour 1 9 3

13 Fitters 20/- per week 100

6 Fitters 17/6 per week 0 17 6

20 Fitters' Boys Average, 10/- 0 10 0

1 Storekeeper 35/- per week 1 15 0

HOLIDAYS.

All foremen, stokers, barrowers-out, foremen, retort house
men, engine drivers and boilermen, men employed at the Chemical
Works and Electric Lighting Station and the time keepers and
storekeepers, who have been employed for at least twelve months
are allowed six days holiday each year for which they are paid.

Stokers, foremen and barrowers-out if at work on Christmas
Day, Easterday and Whitsunday have double pay.

Each man not having the week's holiday has August Bank
holiday or some other day allowed him for which he is paid.

LABOR AND POLITICS— APPENDIX.

595

Newcastle-Upon-Tyne and Gateshead Gas Co.

Elswick Gas Works, Newcastle.

Average Rate of Wages

Wage Workers. Number for Per Hour, Extras.

the Year. Day or Shift.
Enginemen —

Exhausters 3 5/9 per shift...

Compressors . .

Firemen —

Boilers 3 5/5i per shift. . .

Scrubber Pumps — 1/6 good

Attendants 3 4/7 per shift. .. time money.

Oil Gas-
Makers . .

Assistants . .

Retort House —

Stokers 96 6/8* per shift. ..

Firemen 48 5/- per shift...

Pipe Burners 2 4/10 per shift. . .

Hydraulic Main men .... . .

Retort Cleaners 1 5/8J per shift...

Retort Cleaners Assist-
ants 1 4/10 per shift. . .

Mouthpiece men 1 4/9 per shift...

Coke Wheelers 2 4/4 per shift... "

BTGGZG 'WliGGlors •

Cannel Coal Wheelers... i 4/4 per shift... **

Coal Breakers

Sulphate of Ammonia —

Makers 1 5/8 per shift. . .

Assistants 1 5/2 per shift. . .

Yardmen — •

Laborers 59 6d. per h. (4^ to 6J)

Loco. Enginemen 1 f d. per ton tipped.

Loco. Firemen . .

Fitters 5 37/6 per week usual.

Joiners 3 39/6 per week

Bricklayers 4 22/- per week "

Masons 1 39/9 per week ....

Slaters

Plumbers 1 24/- per week

Blacksmiths 5 31/1 per week average.

Officials and others 32

274
Redheugh Gas Works, Gateshead.

Wage Workers.

Enginemen —

Exhausters

Compressors

Firemen —

Boilers

Scrubber Pumps —
Attendants

Oil Gas-
Makers

Assistants .

Average Rate of Wages
Number for Per Hour,
the Year. Day or Shift.

Extras.

5/9 per shift...
6/7 J per shift...

per shift.. .

1/6, good
4/9 per shift. . . time money.

5/6 per shift...
4/11 per shift. . .

596

NATIONAL CIVIC FEDERATION.

per shift.
per shift.

Average Rate of Wages
Wage Workers. Number for Per Hour,

the Year. Day or Shift.
Retort House —

Stokers 76 5/8$ per shift. .

Firemen 66 5/3 per shift..

Pipe Burners 35 4/11J per shift.

Hydraulic Main men... 5 4/6 per shift..

Retort Cleaners 3 5/8$ per shift..

Retort Cleaners Assist-
ants 3 5/3

Mouthpiece men 5 5/ \

Coke Wheelers

Breeze 9 3/1$ per shift..

Cannel Coal Wheelers

Coal Breakers 9 3/- per shift. .

Sulphate of Ammonia —

Makers 2 5/8$ per shift. .

Assistants 5 4/lli per shift.

Yardmen —

Laborers 284 4/5 per day...

Loco- Enginemen 3 5/8$ per day. . .

Loco. Firemen 3 5/2$ per day . . .

Fitters 8 6/- per day . . .

Joiners 5 6/3 per day . . .

Bricklayers 24 9$ per hour

Masons 1 9$ per hour

Platers , 1 6/3 per day . . .

Plumbers 5 6/7 per day...

Blacksmiths 6 6/- ner day...

Officials and others 39

626
Workshops, Forth Street, Newcastle.

Extras.

Wage Workers.

Firemen

Plumbers

Plumbers' Apprentices

Tinsmiths

Tinsmiths' Apprentices

Stove Repairers

Mantle Maintenance Attendants.

Blacksmiths

Blacksmiths' striker

Glaziers

Joiners

Storekeepers

Inspectors

Complaint Men

Syphon Men

Boys (Plumbers' helps) 105

Pipelayers 9

Laborers 130

"Lamplighters 146

Officials and others 24

750

* Light and extinguish lamps daily and clean lamps on beat once
a week. Approximate hours per week, 32.

Average
Number
for Year.

10
212
2

25
3

20
9
1
1

12
3
2
4
18
8

Rate of Wages

Per Hour,
Day or Shift.
44/- to 65/- per week.
8$d. per hour.

6/- to 18/- per week.
35/- per week.

6/- to 18/- per week.
23/- per week.
18/- to 20/- per week.
36/- per week.
23/- per week.
30/- per week.
35/6 per week.
30/- per week.
44/- per week.
23/- to 28/- per week.
24/- to 26/- per week.

8/- to 10/- per week.
26/- to 32/- per week.
23/- per week.
22/- to 24/- per week.

LABOR AND POLITICS— APPENDIX.

597

Replies to Question No. 9 G. Single time to 9 p. M. Time and
quarter after 9 P. M. Time and half after 9 P. M. if work-
ing two or more nights in succession.

Replies to Question No. 10 G. Christmas Day, Good Friday and
Saturday once a year for annual excursion.

Class.

HOURS FOR DAY AND WEE-K.

ElswicJc Gas Works, Redheugh Gas

Newcastle. Works, GatesJiead.

i \ f i

Per Day. Per Week. Per Day. Per Week.
Hours. Hours. Hours. Hours.
Enginemen —

(a) Exhausters 8 56 8 56

Compressors . . . . 8 56

Firemen —

(&) Boilers 8 56 8 56

* Scrubber Pumps —

* Oil Gas —

Makers . . . . 8 56

Assistants .. .. 8 56

*(d) Retort Houses — •

Stokers 8 56 8 56

Firemen 8 56 8 • 56

Pipeburners 8 56 8 56

Hydraulic M'ains Men. . . . . . 8 56

Retort Cleaners 8 56 '8 56

Retort Cleaners' Assts. 8 '56 8 56

Mouthpiece Men 8 56 8 56

Coke Wheelers 8 56

Breeze Wheelers .. .. 8 56

Cannel Coal Wheelers. 8 56

Coal Breakers .. .. 8 56

*(e) Sulphate of Ammonia —

Makers 8 56 8 56

Assistants 8 56 8 56

(f) Yardmen — •

Laborers 5* hrs. 1 day ] r -i v, -t A •>

Loco. Enginemen 9i hrs. 5 days }- 53 ] '£* P8' if*3 I 53

Loco. Firemen As required. J i y* nrs' '° days J

Fitters
Joiners

54 hrs. 1 day ] __ (5* hrs. 1 day \
9£ hrs. 5 days } ' ' (.9) hrs. 5 days J

Plumbers . ,
Blacksmiths

Overtime — Time and quarter till 9 P. M. (bricklayers 7 P. M.), and
time and half till 6 A. M. next morning. Double time Sunday.

Holidays — (a), (6), (c), (e), one week per year.

(d) On graduated scale up to seven days, double time for

Christmas Day and Good Friday,
(f) Public holidays (about six days per annum).

* Time and half on morning and afternoon Sunday shifts.

598

NATIONAL CIVIC FEDERATION.

Sheffield United Gas Light Co.
Neepsend.

Average Rate of Wages
Wage Workers. Number for Per Hour. Extras.*

the Year. Day or Shift.
Er gin em en —

Exhausters — Engine men 3 4/9 per shift. . .

Compressors — Boiler men 3 4/6 per shift...
Firemen —

Boilers— Boiler Firers... 3 4/6 per shift...
Scrubber Pumps —

Attendants

Oil Gas-
Makers . .

Assistants . .

Retort House —

Foremen and stokers 3 48/- per week...

Stokers 23 6/9 per shift. . .

Firemen 16 5/3 per shift...

Pipe burners

Hydraulic main men 3 4/6 per shift...

Retort cleaners "

Do assistants 28 5/3 per shift. ..

Mouthpiece men

Coke wheelers ^ 4/g ... .

Breeze wheelers 4/y per '"'••

Cannel Coal wheelers. ... 1A , /R Oi,n»4.

Coal breakers 10 4/6 pei shlf * ' ' •

Sulphate of Ammonia —

Makers . .

Assistants . .

Yardmen —

Laborers and others 272J 23/- to 26/- week.

Locomotive enginemen..

Locomotive firemen

Fitters, smiths, etc 10 32/- to 36/- week.

Joiners 2J 8£ and 8d. per hour

Bricklayers "| 9£d. per hour. . . .

Masons }• I7i 9M. per hour....

Slaters J 33/- per week . .

Plumbers 1 34/- per week...

Blacksmiths 3 3V- to 36/- week.

Officials and others . .

Total . 446

Wage Workers.

ten-

Efflngham Street.

Average Rate of Wages
Number for Per Hour.
the Year. or Shift.

Enginemen —

Exhausters — Engine
ders ...................

Compressors — Shop engine
Firemen —

Boilers — Boiler Firers
Scrubber Pumps —

Attendants
Oil Gas-

Makers ................

Assistants

Extras.*

4/9 per shift.
23/- per week .

* Overtime, paid at time and quarter ; Sundays, time and half.

LABOR AND POLITICS— APPENDIX.

599

Average Rate of Wages
Wage Workers. Number for Per Hour, Extras.

the Year. Day or Shift.
Retort House —

Foremen and stokers .... 3 47/- per week . . .

Stokers 27 5/9 per shift...

Firemen 4 5/3 per shift. ..

Pipe burners . .

Hydraulic main men and | g 3/_ per.shlft_

sweepers 5

Retort cleaners

Do. assistants

Mouthpiece men . .

Coke wheelers ) 1Q| 4/3 sMft

Breeze wheelers \

Cannel Coal wheelers... j 3 g/_ pershlft>..

Coal breakers J

Sulphate of Ammonia —

Makers . .

Assistants . .

Yardmen —

Laborers and others 58J 23/- per week...

Locomotive enginemen. .

Locomotive firemen

Fitters, Smiths, etc 3 34/- per week...

Joiners i 36/- per week . . .

Bricklayers ^

Masons <• li

Slaters J

Plumbers . .

Blacksmiths . .

Officials and others

Total , 118

Class.

Enginemen —

(a) Exhausters — Engine

Compressors

Firemen —

(ft) Boilers — Firers

Scrubber Pumps —

Oil Gas-
Makers

Assistants

(d) Retort Houses —

Foremen Stokers

Stokers

Firemen

Pipeburners

Hydraulic Mains men. . . .

Retort Cleaners

Do. Assistants

Mouthpiece men

Coke wheelers

Breeze

Cannel Coal

Coal Breakers. .

Grimesthorpe.

Average Rate of Wages
Number for Per Hour,
the Year. Day or Shift.

4/9 per shift.

84
'3
22

16
3

4/6
5/3

4/9
4/6

Extras.*

4/6 per shift..,

47/- per week . . .
5/9 per shift..
5/3 per shift. .

per shift. . .
per shift. . .

per shift...
per shift...

* Overtime, paid at time and quarter ; Sundays, time and half.

600

NATIONAL CIVIC FEDERATION.

Class.

(e) Sulphate of Ammonia —

Makers

Assistants

(f) Yardmen —

Laborers and others. . . .
Locomotive enginemen.
Locomotive firemen

Fitters

Joiners

Bricklayers

Masons

Slaters

Plumbers

Blacksmiths ,

Total

Average Rate of Wages
Number for Per Hour, Extras.*

the Year. Day or Shift.

3 5/- per shift. . .

2 2/9 per shift...

158J 23/- to 26/- week.
1 30/- per week . . .
1 24/- per week . . .
8i 32/_ to 34/- week,
li 8£d. per hour. . . .

9|d. per hour

3J 9£d. per hour

36/- per week. ..
1 8£d per hour ....

3 33/- to 34/- week.

258

FITTINGS AND PIPE LAYEES.

Workshops.

Wage Workers.

Average

Number for

Tear.

Rate of Wages
Per Hour,

Day or Shift.*

( 1 at 48/- per week.

Foreman — Fitters 2 [ 1 at 44/- per week.

Foremen — Brass 1 52/- per week.

Fitters ?.nd Brass shop men 86 24/- to 36/- per week.

Lads 13 7/- to 19/- per week.

Foremen — Tinsmith 1 52/- per week.

Tinsmith 1 38/- per week.

Tinsmiths 7 30/- to 34/- per week.

Painter and Glazier 2 37/6 & 38/- per week.

Others 10 24/- to 30/- per week.

Foreman — Stove 1 36/- per week.

Stove repairers 29 24/- per week.

Mantle Maintenance —

Foreman maintenance 1 42/- per week.

Attendants 26 24/- per week.

Blacksmiths 2 36/- & 25/- per week.

Do. Strikers 1 18/- per week.

Joiners 1 38/- per week.

Storekeepers 3 24/- to 30/- per week.

Complaintmen (see Fitters, above).

Syphon men 2 30/- per week.

Boys (see above).

Foremen — Pipelayers 2 152/- & SO/- per week.

Pipelayers 11 26/- 28/- 30/- 36/-

Laborers 47 23/- & 24/- per week.

Lamplighters Done by Corporation.

Officials and others 18

Foreman — Road repairer 1 45/- per week.

Road repairers 3 9d. & 7d. per hour.

Do. Laborers 3 5 Jd. per hour.

Total . 274

* Overtime, paid at time and quarter ; Sundays, time and half.

LABOR AND POLITICS— APPENDIX.

601

South Metropolitan Gas Co., London.

OLD KENT ROAD STATION. 8 HOUKS IN RETORT HOUSE.

Number Rate
j Employed. Per Day.

Enginemen ..... ........... '. ................ 4 7/-

Enginemen ................................. 4 6/6 d.

Boiler Firemen .............................. 5 5/6 d.

Boiler Firemen .............................. 4 5/3 d.

Scrubber Attendants ......................... 1 7/3 d.

Scrubber Attendants ......................... 4 6/6 d.

Retort House —

Stokers ................................. 50 6/-

Firernen ................................ 16 6/2 d.

Pipeburners ............................ 11 5/7 d.

. , Per Hour.

Hydraulic Mains men .................... j J L d'

Per Day.

Coal Breakers ............................ 4 5/6 d.

Sulphate —

Makers ................................. 2 7/-

Makers ................................. 2 6/-

Per Hour.

Laborers ................................... 11 7 d.

Laborers ................................... 9 6f d.

Laborers ................................... 230 6£d.

Laborers ................................... 4 6£d.

Laborers ................................... 89 6 d.

Locomotive Enginemen ...................... 1 8id.

Locomotive Euginemen ...................... 1 8 d.

Locomotive Firemen ......................... 1 6}d.

Locomotive Firemen ......................... 1 6£d.

Fitters ...................................... 1 lid.

Fitters ...................................... 1

Fitters ...................................... 1 10 d.

Fitters ...................................... 1 9^d.

Fitters ...................................... 10 9 d.

Fitters ...................................... 3 8} d.

Fitters .................................... 6 8Jd.

Fitters ...................................... 8 8 d.

Fitters ...................................... 5 7f d.

Fitters ...................................... 11 7^d.

Fitters ...................................... 2 7Jd.

Fitters ...................................... 18 7 d.

Joiners ..................................... 1 lOid.

Joiners ..................................... 10 10 d.

Joiners ..................................... 2 9Jd.

Slaters ..................................... 1 8 d.

Platers ..................................... 1 7 d.

Bricklayers ................................. 19 9£d.

Bricklayers ................................. 6 9 d.

Bricklayers ................................. 1 8£d.

Bricklayers ................................. 3 8 d.

Plumbers ................................... 1 10 d.

Blacksmiths ................................ 1 10 d.

Blacksmiths ................................ 1 9£d.

Blacksmiths ................................ 7 9 d.

Blacksmiths ................................ 1 8}d.

602

NATIONAL CIVIC FEDERATION.

Number Rate
Employed. Per Day.

Blacksmiths 1 8 d.

Blacksmiths 4 7*d.

Strikers 10 6Jd.

Strikers 1 6*d.

Strikers 3 6 d.

Tinsmiths 2 9 d.

Tinsmiths 1 8 d.

Tinsmiths 1 7}d.

Stove Repairers Piece Work.

Per Week.

Mantle Maintenance 21 27/6 d.

Mantle Maintenance 3 2f>/-

Mantle Maintenance. 8 25/-

Mantle Maintenance 4 24/-

Mantle Maintenance 4 23/-

Mantle Maintenance 3 22/-

Mantle Maintenance 2 21/-

Mantle Maintenance 3 20/-

Mantle Maintenance 1 19/-

Painters and Glaziers Piece Work.

Storekeepers 2 50/-

Storekeepers 1 42/-

Storekeepers 3 40/-

Storekeepers 6 35/-

Storekeepers 1 32/6 d.

Storekeepers 3 30/-

Per Hour.

Complaint Men 11 7$d.

Complaint Men 3 7|d.

Complaint Men 1 7 d.

Syphon Men 5 7f d.

Pipe Layers 4 S^d.

Pipe Layers 8 8 d.

Pipe Layers 16 7$d.

Pipe Layers 2 7id.

Pipe Layers 28 7 d.

Laborers (District) 23 6fd.

Per Week.

Lamplighters 181 27/6 d.

Lamplighters 25 26/6 d.

Foremen 1 90/-

Foremen 1 80/-

Foremen 2 75/-

Foremen 1 72/6 d.

Foremen 6 70/-

Foremen 5 65/-

Foremen 1 63/-

Foremen 1 62/6 d.

Foremen 2 60/-

Foremen 4 58/6 d.

Foremen 2 57/6 d.

Foremen 7 55/-

Foremen 2 52/6 d.

Foremen 5 50/-

LABOR AND POLITICS— APPENDIX.

603

Manchester — Electric Lighting and Supply.

Number
Employed
Occupation. at Each

Rate
of Pay.

*Resident Engineers 2

*Engineers in Charge 9

*District Engineers

* Assistant Engineers 2

*Mcchanical Assistants.... 1

tForemen

•{•Drivers and Greasers

JFiremen (Stokers)

•j-Coal Trimmers

•{•Cooling Tower Attendants

tCrane Drivers

•{•Boiler and Economiser

Cleaners

fPump Attendants

•(•Laborers

fSwitchboard Attendants..

fDynamo Attendants

•{•Juniors

f Sub-station Attendants and

Assistants

f Office Cleaners (women)...

tMeter Readers

flnspectors

fWiremen

t Jointers and Assistants . .
tMeter and Motor Fixers

and Assistants

fLamp Trimmers

tMechanics

fritters ...

•{•Turners . .

fPainters

fConcretors

•{•Bricklayers

f Blacksmiths

f Joiners

flmprovers

•{•Laborers and Gangers ....

fMotor Car Attendant.

fWatchman

fStoremen

•{•Timekeepers and Gate-
keepers

fHead of Testing Dept

fDo. Assistants

17
46

15
3

95
5
9

11
26

25
4

5
2
5
3
9
6
165

Hours
Per Week.

48 to 56
48 to 56
48 to 56

56
55 and 56

53 and 56

55 and 56

53 to 56

52 to 56

53 to 56
52 to 56

241

411

431 to 56

521

521
53 and 56

53
53
53

521

5*3
53
53

521

7 Shifts
521 to 56

$ Rate of Wages.

Per Annum.
£280 and £350
150 to 175
175 to 350
163.16.0 to £250
255

Per Week.
47/_ to 63/-
19/- to 45/-
34/_ to 42/_
25/- to 29/-

30/-
30/- and 32/_

25/_

25/- and 26/_
25/- to 26/6
30/_ to 45A-
21 /- to 30/-
10/- to 17/-

25/- to 45/-
12/- to 15/-
20/_ to 35/-
25/- to 57/8
Per Hour.
81d. to 91d.
41d. to 9d.

3id. to 81d.
5d. to 7d.

Per Week.
34/- to 42/-
38/- to 40/-
38/-

Per Hour.
81d. to 9|d.

lOd.
36/- and 38/- per wk.

94 d. per hour
9/- to £1.8.9 per week
31d. to 9d. per hour
Per Week.

36/-

24/6 to 30/-

18/- per wk. to £150

per ann.

i to 56 30/- to 40/-

"431 £215 per annum

43| I/- to 38/- per week

* Two weeks' holiday with pay.

f Holidays, from four days to a fortnight with pay.

% From single to double time for overtime.

NOTE. — Bonus allowed to boiler house staffs for coal saving.

604

NATIONAL CIVIC FEDERATION.

Liverpool Corporation Electric Supply Dept.

Occupation.

Hours

Number Per
Employed. Week.

*Station Engineers 5

*Mains Superintendent 1

*Mains Engineer 1

*Assistant Engineers 2

Mechanical Assistants

•fa Engine Drivers and Greasers 42

{Firemen 67

fCoal Trimmers 10

•(•Watermen

f&Ash Roisters

fc Boiler Cleaners 12

{Pump Attendants on Condens-
ing Plant 8

f Laborers 48

{Switchboard 9

f Juniors

Inspectors

*Meter Readers 3

fWiremen on Installation and

Station Work 30

f Jointers 4

f Cable Layers 6

Fusemen

Lamp Trimmers

Mechanics

•(•Fitters 19

{Turners 3

Plumbers

f Bricklayers 1

Blacksmith

Improvers

Laborers and Gangers on Un-
derground Mains 64

Watchmen 3

fStoremen 2

Storekeeper 1

Gate Keepers

56
56
56

56
53
56

52
60
60

53
53

60
84
60

Rate of Wages.

("£130 per annum

-J 165 per annum

I 200 per annum

275 per annum

250 per annum

£275 & £300 per anm.

6£d. to 9d. per hour

6Jd. to 7£d. per hour

5id. to 6d. per hour

4d. to 5d. per hour

7^d. to 9d. per hour

5£d. to 8d. per hour

5d. to 8d. per hour

27/- to 32/_ per week

5fd. to I0|d. per hour

6£d. to 8d. per hour

5£d. per hour

8d. to lOd. per hour

.
8id. to

per hour
per hour

4d. to 5f d. per hour

4d. per hour

6^d. & 7£d. per hour

£100 per annum

* Holidays with pay (after twelve months' service), two weeks.

f Holidays with pay (after twelve months' service), one week.

a Extras, overtime, bonus, etc., 3d. per shift for leading hands.

6 Included as firemen or coal trimmers.

c In summer time, when number of boilers are less than in winter,
the foremen are employed on boiler cleaning at their ordinary rates of
pay so that they may be available for service as firemen again during
the winter.

LABOR AND POLITICS— APPENDIX.

605

Glasgow Corporation Electricity Department.

Hours or

Occupation. Number Rate of Wages. Shifts Per

Employed. Week.

Engineers in Charge...

1 at £234 per an. j Undefined
1 at 208 per an. J um

District Engineers

1 at 234 per an. (
2 at 221 per an. ]

Undefined

{ 1 at 75/- week "I

Assistant Engineers

\ 1 at 72/6 week I

Undefined

1 1 at 65/- week j •

Mechanical Assistants..

35/_ week

Fitter, Drivers,

Greasers

27/- to 35/- week

7 shifts

Firemen

23/- to 29/- week

7 shifts

Coal Trimmers

23/- week

7 shifts

Watermen

....

Ash Hoisters

....

Boiler Cleaners (classed

• , -; .

as Laborers)

....

Pump Attendants

....

*Laborers

407

5d. hour

Switchboard Attendants

18/- to 65/- week

Undefined

Draughtsmen

20/- to 75/- week

Clerks

_,, ( 18 at 35/_ to £3 {
M 1 34 at 12/6 to 35/- f

Messengers

27/- to 32/- week

Varying

Laboratory Assistants..

18/- to 40/- week

*Cranemen

5d. to 6id. hour

•"Coppersmiths

8d. to 8jd. hour

*Plasterers

9^d. hour

*Masons

8|d. to 93d. hour

* Joiners

9|d. hour

•"Painters

6d. to Sd. hour

*Instrument Repairers.

7d. to 8d. hour

Bench Hands

51d. to 6|d. hour

Inspectors Meter Read-

ers

£70 to £110 annum

"•Wiremen

6d. to 9d. hour

*Wiremen's Mates

5d. to 6d. hour

"•Jointers

8d. to 9|d. hour

"•Jointers' Mates

5|d. hour

Conduit Layers (classed

as Laborers )

....

Fusement ( Emergency )

23/- to 30/- week

7 shifts

Arc Lamp Trimmers...

25/- to 27/- week

Varying

Arc Lamp Trimmers

(Mates)

21/5 week

Varying

"•Mechanics

9d. hour

"•Fitters

6d. to lOd. hour

"•Turners

7|d. to 8M. hour

"•Plumbers

6Jd. hour

"•Bricklayers

9Jd. to lOd. hour

"•Blacksmith

8d. to 9d. hour

Improvers

Foreman Squad, Labor-

ers and Gangers . . .

11 6}d. to 35/- per week 54

Watchmen (Outside) . .

3/5 per shift

Varving

Watchmen ( Inside )

24/_ to 3/5

7 shifts

Storemen

40/- week

Gate Keepers

* . • •

"•Timekeepers

20/- to 32/_ week

Holidays
With Pay.

21 days
21 days

21 days
14 days

14 days
14 days
14 days

5 days
21 days
14 days

14 days

14 days
14 days

14 days

14 days
14 days

14 days

* Extras, overtime, time and a half.

606

NATIONAL CIVIC FEDERATION.

Newcastle-Upon-Tyne Electric Supply Company Limited.
(At Carville and Gateshead.)

Number

Employed Hours

Occupation.

at Each

Per

Rate of Pay

Rate

Week.

Per Week.

of Pay.

* Engineers in Charge

£104 to £190

'District Engineers

104 to 139

* Assistant Engineers

65 to 91

Mechanical Assistants. . . .

£2. 5.0 to £2.10.0

Fitters Drivers

1.17.0 to 2. 2.0

Greasers

18.0 to 1.13.0

Firemen

1.10.4 to 1.16.0

Coal Trimmers, included

as Firemen

. .

Watermen

1.13.0

Ash Hoisters

1. 8.0 to 1.13.0

Boiler Cleaners

14.6 to 1. 9.0

Pump Attendants

1.10.4

Laborers

12.0 to 1.10.0

Switchboard (permanent

switchmen)

1.10.0 to 2. 0.0

Switchboard - (temporary

switchmen)

*••

2.0 to 2.6

Juniors

10.0 to 25.0

Shunter . . ,

§..

1. 6.6

Inspectors

156 per annum

= 60/ per week

Meter Readers

25.0

Wiremen

Jointers

§..

33.0 to 35.0

[[Conduit Layers

Fusemen

1. 0.0 to 1.18.0

Lamp Trimmers

6.0 to 1.17.0

Mechancs

Fitters

jTurners

Plumbers

Bricklayers

Blacksmith

Improvers

. .

Laborers and Gangers

1. 6.0 to 1. 7.0

(Watchmen

f 9

jStoremen

t a

Gatekeepers

£1.10.0

2. 7.6

Mains Engineer

J39

2.15.0

Telephone Operators

1. 5.0

Chemist

3. 0.0

Holidays
With Pay.

14 days
14 days
14 days
14 days
14 days
10 days
10 days

10 days
10 days
10 days
10 days
10 days

14 days

14 days
10 days
14 days

1 week

10 days

14 days
14 days
14 days
14 days

* Per annum ; paid monthly.
f Special, liable to be called at any time.
± Special.

§ Special ; usually 53.

|| Any special work that Is to be done for Operation Department,
Jointers, etc., are loaned to them by Construction Department.

LABOR AND POLITICS— APPENDIX.

607

London — The Central Electric Supply Company, Limited.

LOW & MEBBILL.

Number

Employed Hours
Occupation. at Each Per

Rate Week.
of Pay.

Engineers in Charge 2

District Engineers

Assistant Engineers 3

Mechanical Assistants

*Fitter, Drivers, Greasers. . . 4

*Firemen . 14

*Coal Trimmers

Watermen

Ash Hoisters

Boiler Cleaners

Pump Attendants

*Engine Room Laborers....

* Switchboard

Juniors

Inspectors

Meter Readers. .

*Wiremen

Jointers

Conduit Layers..

Fusemen

Lamp Trimmers.
Mechanics .

*Fitters

Turners

Plumbers

•"Bricklayers 1

*Blacksmith 1

•"Improvers 1

*Construction Laborers and

Gangers 9

•"Watchmen 8

•"Storemen 1

Gate Keepers

*Tank House 1

*Boys 2

54
54

Rate of Wages

Per Day,
Hour, or Shift.

£325

1 at £135
1 at 140

1 at 100

2 at 40/-
1 at 34/_
1 at 32/_

f4 at 34/_
4 8 at 32/_
L2 at 40/-
} 1 at 7d.
1 4 at 6id.

Average 6d
1 at 38/-
1 at 34/_
1 at 8d.

8d.

ffl at 60/-1

I 1 at 9}d. t

1 at 9d. f

[ 1 at 8id. J

io'jd.
844

30/-

Average 7d.
30/-
30/-

Vd.'
4d.

Holidays
With Pay.

54 hours

54 hours
54 hours

54 hours
54 houra

54 hours
54 hours

54 hours
54 hours
54 hours

54 hours
54 hours

* Extras, overtime, bonus, etc., time and quarter overtime.

t Foreman.

N. B.-This company does not distribute, but supplies in bulk to the
St. James' & Pall M'all Electric Light Co., Ltd., and the Westminster
Electric Supply Corporation, Ltd.

608

NATIONAL CIVIC FEDERATION.
St. James & Pall Mall Electric Light Company, Limited.

Occupation.

dumber

Employed

at Each

Rate
of Pay.

Engineers in Charge 2

Arc Lamp Attendant 1

District Engineers

Assistant Engineers 3

Mechanical Assistants

*Fitter, Drivers, Greasers ... 5

*Firemen 14

*Coal Trimmers 3

*Engine Room Cleaners 8

*Ash Roisters 1

*Boiler Cleaners 2

Clock Makers 4

Pump Attendants

Tank House 2

Laborers .

* Switchboard

Juniors

*Boiler Makers, etc 5

*Inspectors 3

*Meter Readers 5

*Wiremen

*Jointers

Conduit Layers

Fusemen

*Pipe Layer 1

*Lamp Trimmers 5

Hours Rate of Wages
Per Per Day, Holidays

Week. Hour, or Shift. With Pay.

\ 1 at £200 )

1 at 150 C

50/-

[1 at £2 '

1 at 35/-

1 at 30/-

1 at 45/_

2 at 35/-

1 week

2 at 32/-

'1 at 40/-

KJ.

1 at 37/6

1 week

Orr

4 at 34/-

8 at 32/-

6^d. hour"

1 week

54 Average 5d. hour 1 week

8d.

1 week

6M.

1 week

\ 1 at 32/6 )
3 at 30/- j 1 week

' 1 at 7d.
1 at 6Jd.

(

"1 at 40/-"

1 at 38/-

1 week

3 at 35/-

54
54

7d.

;3 at 7d.
2 at 6d.

1 week

54 hours
54 hours
54 hours

54 hours

54 hours
54 hours

* Extras, overtime, bonus, etc., time and quarter overtime.
f Foreman.

LABOR AND POLITICS— APPENDIX.

600

Occupation.

Number
Employed
at Each
Rate
of Pay.

Hours
Per
Week.

54
54
54

54
54

Rate of Wage.
Per Day,
Hour, or Shift

•fl at'60/_ I
1 at lOd.
2 at 9^d.
1 at 8£d.
1 at 8d.
L 1 at 6d.
fl at 50/- )
|1 at 9id. j

fl'at 9§d.)

1 1 at 10|d. f
1 at lOd.
f 3 at 7|d. 7
73 at 7d. f
[2 at 7d. 1
\ 4 at 6|d. [
1 2 at 6d. I
30/-
35/-
f2 at 15/-1
J 1 at 8/_ [
1 1 at 4d. f
\1 at 3d. J

f2 at'i6id.1
1 at lid. I
1 1 at lOd.

Holidays
. With Pay.

*Fitters

54 hours
54 hours

*Turners

Plumbers

*Bricklayers ....

54 hours
54 hours
54 hours

*Blacksmith

"•Construction Dept. Laborers 6

Mains Laborers and Gangers 8
Watchmen 2

Storemen

*Boys

54 hours

Gatekeepers

* Carpenters

54 hours

* Extras, overtime, bonus, etc., time and quarter overtime.
f Foreman.

Vol. III.— 40.

610

NATIONAL CIVIC FEDERATION.

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Boiler Cleaners
Pump Attendants. . . .

Laborers
Switchboard

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fe

LABOR" AND POLITICS— APPENDIX.

611

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612

NATIONAL CIVIC FEDERATION.

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LABOR AND POLITICS— APPENDIX.

013

Glasgow Corporation Tramways.
Traffic Employees.

Working Rate of Wages.

No. of Class of Hours , — A ,

Em- Employees, Per Rate Rate

ployees. Week. Per Hour. Per Week.

30 Depot Clerks 54 32/ 6 to50/-

*2,335 Motor-men and Conduc-
tors 54

34 Traffic Regulators 54 82/- to36/-

42 Ticket Inspectors 54 32/- to 38/ 6

2 Motor Inspectors 54 32/_ to36/-

10 Sandmen 54 5d. to 5}d. 22/ 6 to 24/ 9

9 Trackmen 54 3/8 per day 22/-

25 Trolley Boys 54 1/5 per day 8/6

8 Points Boys 54 1/2 per day 7/-

282 Car Cleaners 54

16 Pit Cleaners 54

14 Car Greasers 54

2,807

3/8 to 4/4 per shift 22/- to26/-
3/6 per shift 21/-

5d. to 5id. 22/ 6 to 24/ 9

General Employees. Repairers, Etc., at Depots.

13
17

27
21
13

28
5
6
1

Night Inspectors 54

Depot Fitters 54

12 Night Shift 54

5 Day Shift 54

Truckmen 54

Controllermen 54

Handymen (Night

Shift) 54

Handymen (Day Shift) 54

8fd.

8d.

61d. to 7d.
5fd. to 6}d.

5}d. to 5£d.
5|d. to 6id.

Overhead Repairers.

Linesmen 58 6d. to 9d.

Tower Wagon Drivers. 60 4/2 per shift.
Construction Labourers 56 6d to 7d.

Leading Construction
Labourer 56 7£d.

42/ 6 to50/-

89/ 4}

36/-

28/ li to 31/ 6
25/10} to 29/ 3

24/ 9 to 25/10}
25/10} to 28/ 1}

27/- to40/ 6

25/-
28/- to 32/ 8

35/-

Pinkston Power

Employees Connected with Distribution of Power.

Station.

1 Superintendent of Pow-
er Station 120/-

4 Charge Electricians.... 48 45/- to 60/-

3 Shift Engineers 48 45/- to 55/-

1 Relief Engineer 50/-

6 Drivers 48 36/- to40/-

36 Greasers 48 4/6 per shift. 27/-

3 Feed Pump Attendants 48 4/6 per shift. 27/-

3 Leading Stokers 48 5/8 per shift. 34/-

7 Stokers 48 4/8 per shift. 28/-

3 Switchboard Attend-
ants 48 2/8 to 3/- per shift. 16/- to 18/-

* See separate scale of wages.

614

NATIONAL CIVIC FEDERATION.

Working

No. of Class of Hours
Em- Employees. Per

ployees. Week.
2 Basement Attendants. . 56
1 Electric Cranernan 48

Rate of Wages.

11
4
1
1

Rate

Per Hour.
5d. to 6^d.
4/8 per shift.
[One at

4 Coal Conveyors 56 \ One at 6d.

[Two at 5d.

Cleaners 56

Motor Attendants 48

Slinger 54

Storeman 56

Watchman 72

106

. to 7id.
7d.

4d.

2 Clerks

Switchroom Attendant. 48

Foreman Fitter 51

Fitters 51

Wireman 51

Boiler Fitter 51

Labourers . . . 54 to 56

8d.
7}d.
5d. to

Rate

Per Week.

23/ 4 to 30/ 4

28/-

25/-

28/-

23/4

10/- to 28/-
25/- to 30/-

31/6

21/_

24/_

One at 32/6
One at 30/-

29/-

55/-

36/-

34/_

23/ 4 to27/-

Sub-Stationa.
Sub-station Attendants. 48 2/- to 6/8 per shift. 12/- to 40/-

Car Works Employees.

1 Chief Foreman 100/-

1 Foreman, Wood Work-
ers 70/-

1 Foreman, Iron Work-
ers 57/6

1 Foreman, Blacksmiths. .. 55/-

1 Foreman, Electricians. .. 52/6

1 Foreman, Painters 55/-

1 Foreman, Saddlers 35/-

27 Fitters 51 7d. to 9d. 29/ 9 to 38/ 3

14 Machinemen 51 6d. to 9d. 25/ 6 to 42/ 6

18 Car Overhaul Fitters. . 51 8d. to 8f £ 34/- to 37/ 2*
14 Car Overhaul Handy-
men 51 5Jd. 23/4

10 Vertical Machinemen.. 51 5d. to 6id. 21/ 3 to 27/ 7

2 Roof Railers 51 6}d. to 7£d. 26/ 6J to 31/10}

4 Tinsmiths .... 51 8d. to 8Jd. 34/- to 36/ \\

7 Light Plater* ., , 51 8d. to 8^d. 34/_ to 36/ li

4 Plumbers 51 9£d. 40/4

23 Brass Finishers and

Moulders 51 6Jd. to lOd. 26/ 6J to 42/ 6

2 Glaziers ' 51 8id. 36/1*

2 Slaters 51 9d. 38/3

1 Rigger 51 5Jd. 23/4

2 Enginemen 51 5Ad. 23/4

10 Punch Repairers 51 7|d. to 9d. 31/10 to 38/3

4 Steam Hammer Boys. . 51 9/-

21 Blacksmiths 51 8d. to 8M. 34/- to 36/ U

23 Hammermen 51 5Jd. to 5Jd. 23/ 4 to 24/ 5i

6 Apprentices 51 5/- to 13/-

22 Wiremen and Armature

Winders 51 7d. to 9d. 29/ 9 to 38/ 3

LABOR AND POLITICS— APPENDIX.

615

Working

No. of Class of Hours

Em- Employees. Per

ployees. Week.

8 Wiremen's Labourers. . 51

2 Cranemen 51

80 Car Builders 51

23 Joiners 51

17 Wood Machinernen 51

2 Patternmakers 51

3 Mill and Cartwrights.. 51
36 Painters 51

18 Polishers 51

113 Labourers 51

4 Watchmen 72

8 Saddlers 51

1 Tailor 51

Rate of Wages.

Rate

Per Hour.

5d. to 6|d.

6d.

lOd.
8d. to lOd.

8M.

8*<L
7*d. to 8d.

»8d.

5d. to 74d.
3/10 per shift.

Rate
Per Week.

21/ 3 to 28/ 8i
25/6
36/1J
42/6

34/- to42/ 6
36/14
36/14

31/10ito34/_

34/_

21/ 3 to 30/ 9|
23/-
30/-
32/6
1 Machinist ............ 51 ........ 16/-

8 Clerks ......................... 16/ 6 to 50/-

542

Permanent Way Employees.
1 Chief Foreman ......... ........ 77/6

15 Squad Foremen ......... ........ 37/ 6 to 52/ 6

5 Timekeepers ............ ........ 30/- to 42/ 6

1 Inspector .............. ........ 47/6

2 Sett Checkers .................. 24/ 6 to 34/-

48 Paviors .............. 56 8d. 37/4

12 Platelayers .......... 56 54d. to 5f d. 24/ 6 to 26/10

34 Boilermen ........... 56 5£d. 25/8

14 Sizers ................ 56 2£d. to 4d. 10/ 74 to 17/-

1 Mason ............... 56 94d. 44/4

384 Labourers ............ 56 44d. to 6d 21/- to 25/ 8

1 Yardman ............ 56 ........ 32/6

1 Yard Clerk ........... 56 ........ 23/-

48 Watchmen ........... 84 3d. 21 /-

6 Bonders .............. 56 8d. 37/4

1 Fitter ................ 56 74d. 35/-

16 Borers ............... 56 5£d. to 6d. 24/ 6 to 28/-

3 Stonebreakers ........ 56 2/9 per cub. yd. ____

1 Storeman ............ 56 6d. 2S/-

f25 Dressers ............. 56 ........ ____

$24 Carters .............. 56 4/2 to 4/4 per day. 25/- to26/-

643

Buildings Employees.

1 Foreman ............... ........ 52/6

1 Inspector .............. ........ 40/-

6 Bricklayers .......... 51 9*d. 40/44

1 Mason ............... 51 9 jd. 40/44

3 Slaters and Glaziers. . . 51 9d. 38/3

7 Joiners .............. 51 lOd. 42/6

2 Plumbers ............ 51 9id. 40/44

4 Painters ............. 51 9d. 38/3

13 Labourers ............ 56 5d. to 5|d. 23/4 to 25/ 8

~38

f Cleaning stones, lOd. per 100 ; re-dressing stones, 2/6 per ton, or 14d.
per cwt.

J Double carts, 4/8 per day ; 28/- per week.

616

NATIONAL CIVIC FEDERATION.

No. of

Class of

Mains Department.
Working

Hours

Rate of Wages.

Em- Employees. Per . Rate Rate

ployees. Week. Per Hour. Per Week.

1 Superintendent 56 65/-

8 Inspectors 56 20/- to 52/6

1 Foreman Jointer 56 52/6

3 Jointers 56 9£d. 44/4*

14 Labourers 56 4fd. to 6d. 22/ 2 to 28/-

3 Apprentices 56 ll/-

1 Fitter 56 9d. 42/-

_ 4

Horsing Employees.
1 Foreman 32/6

1 Coachman 30/-

3 Vanmen 60 28/- to30/-

2 Lorrymen 60 4/4 per day. 26/-

2 Store and Lorry Boys.. 60 3/10 per day. 23/-

2 Horseshoers 51 {l at 36/1

2 Handymen 60 3/6 to 4/- per day. 21/- to24/-

4 Horsekeepers, etc 60 3/8 per day. 22/-

1 Granary Foreman 54 32/6

4 Granary Employees ... 54 21/ to 25/-

Summary.

No. of
Class. Employees.

Traffic Staff 2,807

Repairers, etc., at Depots 96

Overhead Repairers 40

Pinkston Power Station 106

Sub-station Attendants 32

Coplawhill Car Works 542

Permanent Way 643

Buildings Employees 38

Mains Department 31

Horsing Employees 22

4,357

46 Bath Street, August 15, 1905.

GLASGOW CORPORATION TRAMWAYS.

Motormen and Conductors.
July, 1894—

Drivers and Conductors were paid at 4/- per day = 24V- per week,
with 6d. extra for Sunday.

(No scale of wages.)
M'ay, 1895—

21/- to 26/- per week, with 6d. extra for Sundays.

Scale.

3/6 per day for first three months = 21/- per week.
3/9 per day for next nine months =22/6 per week.
4/- per day for second year <=24/- per week.

4/2 per day for third year = 25/- per week.

4/4 per day for fourth year =26/- per week.

LABOR AND POLITICS— APPENDIX. 617

September, 1896—

23/- to 27/- per week.

Scale.
_. (First six months, 3/10d. per day = 23/- per week.

*t year j Second six months, 4/- per day = 24/- per week.

Second year 4/2d. per day == 25/- per week.

Third year 4/4d. per day = 26/- per week.

Thereafter 4/6d. per day = 27/- per week.

Rates apply equally to Sundays and week days.

August, 1899—

24/- to 28/- per week.

Scale.
m . ( First six months, 4/- per day =24 /- per week.

" year { Second six months, 4/2d. per day = 25/- per week.

Second year 4/4d. per day = 26/- per week.

Third year 4/6d. per day = 27/- per week.

Thereafter 4/8d. per day = 28/- per week.

Rates apply equally to Sundays and week days.

June, 1901—

Motormen 24/- to 30/- per week.

Conductors 24/- to 28/- per week.

Scale.

Qualified Motormen.
First six months, 4$d. per hour = 24/- per week.

First year.

Second year.

Third year.
Thereafter

Second six months, 5d. per hour —25/- per week.
Third six months, 5£d. per hour = 26/- per week.
Fourth six months, 5§d. per hour = 27/- per week.
Fifth six months, 5gd. per hour = 28/- per week.
Sixth six months, 5$d. per hour = 29/- per week.
6d. per hour = 30/- per week.

Conductors Who Do Not Qualify as Motormen.
„ ( First six months, 4$d. per hour = 24/- per week.

• | Second six months, 5d. per hour = 25/- per week.
Second year .......................... 5£d. per hour = 26/- per week.

Third year ............................ 5§d. per hour = 27/- per week.

Thereafter ........................... 5§d. per hour == 28/- per week.

Rates apply equally to Sundays and week days.
NOTE — The above scale was altered from rate per hour to rate per
day on llth July, 1901, the weekly amount remaining the same.

February, 1905—

Present Scale.
Qualified Motormen-Conductors.

First six months, 4/- per day = 24/- per week.

First year.

Second year.
Third year. .

Second six months, 4/2 per day = 25/- per week.
Third six months, 4/4 per day = 26/- per week.
Fourth six months, 4/6 per day = 27/- per week.
Fifth six months, 4/8 per day = 28/- per week.
v Sixth six months, 4/10 per day = 29/- per week.

Fourth year " 5/- per day = 30/- per week.

Thereafter 5/2 per day = 31/- per week.

Rates apply equally to Sundays and week days.
46 Bath Street, 13th April, 1905.

618

NATIONAL CIVIC FEDERATION.

Manchester Corporation Tramways.
WAGES OF DRIVERS, GUARDS, ETC.

Rate
Per
Hour.

5fd.

6id.

6|d.

7d.

Earnings
Per Week
of 54
Hours.
25/10*
28/ li
30/ 4*
31/ 6

Drivers —

On appointment

At the end of one year's service

At the end of two years' service

At the end of three years' service

Guards —

On appointment 5$d. 24/ 9

At the end of one year's service 6d. 27/-

At the end of two years' service 6£d. 29/ 3

At the end of three years' service 6fd. 30/ 4}

Washers and Cleaners 25/-

Timekeepers 32/ 6

Ticket Inspectors —

On appointment 32/ 6

At the end of two years' service 35/-

Depot Clerks 35/-

The above rates apply equally to Sundays and week days.

(Report ~by the general manager prior to the operation of the
tramways by the corporation.)

In accordance with the instructions of the committee, the
general manager begs to submit the following report as to the wages
paid to the drivers, guards, etc., employed by the Manchester Car-
riage and Tramways Company, and the wages paid by the various
corporations named in the accompanying statement.

The drivers and guards in the service of the Manchester Car-
riage and Tramways Company are paid at the following rates,
namely :

Drivers.

First class, 4s. 8d. per day. Sundays, 6d. per hour.

Second class, 4s. 4d. per day. Sundays, 5|d. per hour.

Conductors.

First class, 4s. Od. per day. Sundays, 5d. per hour.

Second class, 3s. 8d. per day. Sundays, 4£d. per hour.

The men are paid at the maximum rate after twelve months'
regular service.

The working hours are 10£ per day for the six ordinary week
days, and Sunday work is arranged as follows: One Sunday the
men are off duty; the next Sunday they work 8£ hours; and the
third Sunday they work 13£ hours.

The average working hours per week thus work out as follows,
namely :

Hours.

First week, 6 days at 10£ hours 63

Second week, 6 days at 1(H hours, plus 8i hours on Sunday. . 71$
Third week, 6 days at 10£ hours, plus 13£ hours on Sunday. . 76£

Divide by 3 ) 211

Average per week.

70$

LABOR AND POLITICS— APPENDIX. 619

Similarly, the average weekly wages work out as follows,
namely :

Drivers, First Class.

s. d.

First week, 6 days at 4s. 8d 28 0

Second week, 6 days at 4s. 8d., plus 8£ hours on Sunday

at 6d 32 3

Third week, 6 days at 4s. 8d., plus 13£ hours on Sunday

at 6d.. 34 9

Divide by 3 ) 95 0

Average per week 31

Drivers, Second Class.

First week, 6 days at 4s. 4d 26 0

Second week, 6 days at 4s. 4d., plus 8£ hours on Sunday

at 5£d 29 11

Third week, 6 days at 4s. 4d., plus 13£ hours on Sunday

at 5|d 32 2

Divide by 3 ) 88 1

Average per week 29 4

Guards, First Class.

First week, 6 days at 4s. Od 24 0

Second week, 6 days at 4s. Od., plus 8-| hours on Sunday

at 5d 27 6

Third week, 6 days at 4s. Od., plus 13^ hours on Sunday

at 5d.. 29 7

Divide by 3 ) 81 1

Average per week 27 0

Guards, Second Class.

First week, 6 days at 3s. 8d 22 0

Second week, 6 days at 3s. 8d., plus 8£ hours on Sunday

at 4|d 25 2

Third week, 6 days at 3s. 8d., plus 13£ hours on Sunday

at 4^d 27 1

Divide by 3 ) 74 3
Average per week 24 9

620 NATIONAL CIVIC FEDERATION.

Dividing the average weekly wages by the average hours
worked, the wages paid per hour come out as follows:

Drivers.

First class 5.4d. per hour.

Second class 5d. per hour.

Guards.

First class 4.6d. per hour.

Second class 4.2d. per hour.

The average wages paid by other corporations to the motor-
men and guards on the electric cars are as follows :

Motormen 5.2d. to 6.1d. per hour.

Guards 4.4d. to 5d. per hour.

and the average working hours are 60 per week.

The comparison between average rates paid by the various cor-
porations and the rates paid by the Manchester Carriage and Tram-
ways Company is therefore as follows :

Corporations (Average).

Motormen (maximum), 60 hours at 6. Id. = 30s. 6d. per week.
Motormen (minimum), 60 hours at 5.2d. = 26s. Od. per week.
Guards (maximum), 60 hours at 5d. = 25s. Od. per week.
Guards (minimum), 60 hours at 4.4d. = 22s. Od. per week.

Carriage Company.

Drivers (first class), 70-J hours at 5.4d. = 31s. 8d. per week.

Drivers (second class), 70-j hours at 5d. = 29s. 4d. per week.

Guards (first class), 70^ hours at 4.6d. = 27s. Od. per week.

Guards (second class), 70i hours at 4.2d. = 24s. 9d. per week.

The deputation from the Amalgamated Association of Tram-
way and Hackney Carriage Employees, which recently attended
the committee, suggested that the wages should be as follows :

Drivers, maximum 7d. per hour.

Drivers, minimum 6£d. per hour.

Guards, maximum 6d. per hour.

Guards, minimum 5£d. per hour.

and that the working hours should be 8 hours per day.

Regarding the other classes of employees, the following is a
brief comparison of the average rates paid by other corporations
and the rates paid by the Manchester Carriage and Tramway
Company :

LABOR AND POLITICS— APPENDIX.

621

Manchester Carriage and
Tramways Company

Hour*

Class.

Rates. Per

Week.

f 28/- per week 70

Ticket Inspectors

\ 31/6 per week 70
[ 35/- per week 70

Night Inspectors

None employed

Motor Inspectors

None employed

Washers and Cleaners

( 4 d. per hour 78
| 4.3d. per hour 78

Timekeepers

5.3d. per hour 68

Corporations (Average).

Hours

Class.

Rates. Per

Week.

Ticket Inspectors

f 28/2 per week 64
1 32/5 per week 64

Night Inspectors

* f 30/- per week 60
J 35/2 per week 60

Motor Inspectors

j 7.3d. per hour 60
J f 4.2d. per hour 57

Washers and Cleaners

1 5d. per hour 57
' j 5.4d. per hour 58

Timekeepers

{ 6d. per hour 58
| 7.9d. per hour 60

J. M. MoELROY,

General Manager.

Town Hall, Manchester, January 11, 1901.

622

NATIONAL CIVIC FEDERATION.

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LABOR AND POLITICS— APPENDIX.

623

LIVERPOOL CORPORATION TRAMWAYS.

Ratet of Pay of Men Employes at Lambeth Road Carriage Works.
Number of men employed at works, 274.

Rates of Hours
Occupation. Pay Per Hour. Per Week.

Car Wiremen and Controller Men 6d. to 7d. 53

Pit Men 7d. 53

Helpers 6d. to 6}d. 53

Laborers 5 7-16d. to 5£d. 53

Armature Winders 9|d. 53

Painters —

Foremen lOd. 53

Painters and Writers 8&d. to 8fd. 53

Painters 7f d. 53

Car Body Makers —

Foreman lOd. 53

Body Makers 8Jd. 53

Whitesmiths 7 ll-16d. 53

Tinsmiths 8|d. 53

Fitters —

Foremen lO^d. 53

Ordinary 8£d. 53

Coachsmiths —

Foreman l(Hd. 53

Ordinary 8|d. 53

Laborers 5&d. 53

Wood Working Machine Men —

Foreman lOd. 53

Ordinary 7d. to 8d. 53

Assistants 6d. 53

Brass Finishers 8£d. 53

Pattern Makers 9d. and 9|d. 53

Engine Drivers 6d. 53

Coach Trimmer 8£d. 53

London County Council Tramways.

Statement of rates of pay and hours of labor which prevailed
with the various companies as compared with rates of pay and
hours of labor now in force on the London County Council tram-
ways.

London Tramways.

Acquired January, 1899.

Designation.

Drivers

Conductors

Stablemen

Washers

Farriers

Track Cleaners. ..

Pointsmen

Trace Boys

Ticket Inspectors.

Regulators

Night Inspectors.

Foremen

Deputy Foreman.

Rate of Pay Per

Week.

31s. 6d. to 42s.
31s. 6d. to 42s.

23s. to 30s.

22s. to 28s.

33s. to 36s.
21s. to 24s. 6d.

15s. to 20s.

15s. to 18s.

40s. to 42s.
42s.

32s. to 42s.

36s. to 55s.
40s.

Number Hours

of of

Days Laoor

Per Per

Week. Week.

56i

624

NATIONAL CIVIC FEDERATION.

Southeast Metropolitan.
Acquired April, 1902.

Designation.

Drivers

Conductors 33s.

Stablemen

Washers

Farriers

Track Cleaners

Pointsmen

Trace Boys

Ticket Inspectors

Regulators

Night Inspectors

Foreman Washer

Deputy Foreman

Number

Hours

Rate of Pay Per

Days

Labor

Week.

Per

Week.

33s. 3d. to 42s.

a. 3d. to 38s. 6d.

29s. 2d.

13s.

J2s. to 35s. lOd.

35s.

South London Tramways.
Acquired November, 1902.

Number

Hours

Designation.

Rate of Pay Per Days

Labor

Week. Per

Per

Week.

Drivers
Conductors ,

1 26s. 3d. to 31s. 6d. j ^

70
70

Stablemen

25s. 4d. to 28s. 7

Washers

33s. 3d. 7

Farriers

36s. to 42s. 6

Track Cleaners

21s. 7

Pointsmen

• •.

Trace Boys

16s. 7

Ticket Inspectors

37s. 6d. 7

Regulators

35s. 7

Night Inspectors

40s. 3d. 7

Foremen

45s. to 65s. 7

Deputy Foreman

37s. 6d. 7

London, Deptford and Greenwich.

Acquired July, 1904.

Number

Hours

Designation.

Rate of Pay Per Days

Labor

Week. Per

Per

Week.

Drivers

33s. 3d. to 40s. 3d. 7

Conductors

33s. 3d. to 36s. 9d. 7

Stablemen

27s. 7

Washers

27s. to 32s. 6d. 7

Farriers

Track Cleaners

Pointsmen

Trace Boys

Ticket Inspectors

36s. 9d. to 40s. 3d. 7

Regulators

38s. 6d. 7

Night Inspectors

40s. 3d. 7

Foremen

42s. 7

Deputy Foreman

••

LABOR AND POLITICS— APPENDIX.

625

London County Council.

Number Hours

Designation.

Rate of Pay Per
Week.

Drivers 28s. 6d. to 37s. 6d.

Conductors 28s. Gd. to 37s. 6d.

Stablemen

Washers

Farriers

Track Cleaners. . .

Pointsmen

Trace Boys

Ticket Inspectors.

Regulators

Night Inspectors.

Foremen

Deputy Foreman.

26s.

25s. to 30s.
39s. to 43s. 6d.

25s.

24s.
14s. to 18s.

42s.

42s.
42s. to 64s. 6d.

42s.

Days
Per
Week.
6
6
6
6
6
6
6
6
6
6
6
7
7

Labor
Pet-
Week.
60
60
60
60
54
60
60
60
60
60
60
70
70

Dublin United Tramways Company.

Department

and Occupation. Number.
Traffic —

Conductors 355

Motorinen 360

Traffic Insprs., etc. . 6

Timekeepers and

Foremen 26

Washers, Yardmen,
Track Cleaners,

etc 63

Ticket Inspectors ... 15

Points Boys..." 18

Lampmen 3

Sanding 10

Way Bills 2

Punch Boxes 1

L. P 1

860

Stables-
Foreman 1

Shoers 2

Stablemen , . 6

Coachmen 2

Harness 3

Parcels —

Supt 1

Vanmen 16

Clerks, Boys, «tc. . . 130

— - 147

Hours.

Irreg.

Irreg.
70

10
Irreg.

Rate.

21/_ to 26/6 per week

24/6 to 30/- per week

42/6 to 65/- (Incl. D.

Supt., 65/-)

30/- to 35/- per week

15/- to 21/- per week

(Genl. rate, 19/-.)
28/- to 32/6 per week

9/- per week
19/-, 21/- and 28/-

per week

19/- to 21/- per week

26/6 and 8/- per w'k

10/- per week

20/- per week

34/- per week
32/- and 30/- per w'k
19/- to 22/- per week

24/6 per week
21/-, 28/- and 36/_
per week.

60/- per week
18/- per week

Vol. III.— 41.

(520

NATIONAL CIVIC FEDERATION.

Department

and Occupation. Number.

Sundries —

Office Messengers. . . 3

Hours.

Housekeeper

Window Cleaner 1

Cottage Insp 1

Stores 2

Stores Labourers ... 2

B. Bridge Car Dept. —

Foreman 1

Fitters 17

Winders 2

Wheel Press 3

Switches 1

Wiremen 2

Bearings 2

Moulder 1

Smiths 2

Carpenter 1

Carter and Shunters 2

Boys 3

Timekeeper 1

Car Cleaning and

Inspection 1

Car Cleaning and

Inspection 25

Ringsend and Sub-stas. —

Station Supt 1

Engineers 7 8

V Switchboards G 56

Office 2 52

Stores 2 52

Drivers 3 8

Greasers 9 8

Condensers 3 8

Stokers 6 8

Oil Carriers 2 8

Yardmen 2 12

Fitters 2 52

Boilermaker 1 52

Coal Tower 1 52

Cleaner 1 52

Labourers 9 52

O. H. Line and Cables —

Engineer 1

Emergency Crew ... 7

Drivers 2

Cable Jointer 1

Cable Jointer's Help 1

Fitter 1

M. H. Cleaners 2

Labourers 6

Rate.

10/-, 14/_, 15/- per

week

40/- per week
10/- per week
35/- per week

1 at 45/-, 1 at 75/-,

inc. 15/- chg. stables.

20/- and 21/- per w'k

70/- per week

3/- to 6/4 per day

5/- and 6/4 pet day

3/6 and 4/4 per day

6/- per day
2/6 and 5/- per day
3/8 and 4/4 per day

5/8 per day
5/5 and 3/- per day

5/4 per day

3/4 and 4/- per day

I/- to 1/11 per day

32/6 per week

60/- per week
1/5J to 4/- per day

£250 per an.

25/- to 60/- per week

10/- to 20/- per week

30/- and 35/_ per w'k

15/- and 7/- per w'k

5/4 and 5/6 per day

4/- per day

3/6 and 4/4 per day

2/84 per day

2/10J and 3/- per day

6/- and 7/11 per day

6/4 per day

5/8 per day

3/9 per day

3/- to 4/- per day

76/11 per week

3/- to 5/- per day

3/- to 3/6 per day

38/ per week

18/- per week

4/2 per day

3/4 per day

3/- to 3/6 per day

LABOR AND POLITICS— APPENDIX.

627

Department

and Occupation. Number. Hours. Rate.
Inchicore Car Dept. —

Foreman 1 . . 65/- per week

Clerk 1 . . 32/ per week

Bodymaker 24 . . 3/4 to 6/4 per day

Carpenters 3 . . 4/4 to 5/4 per day

Smiths 7 . . 3/- to 6/4 per day

Fitters 31 . . 3/3£ to 6/4 per day

Painters 34 . . 1/6 to 6/4 per day

Wiremen 3 . . 2/- to 4/6 per day

Sundries 16 . . 2/6 to 5/- per day

120

Permanent Way —

Foremen 6 . . 5/-, 5/6 and 8/7 per

day
Timekeeper (Head

Deputy) 1 . . 50/- per week

Platelayers 4 . . 4/- and 5/- per day

Hammermen 5 . . 3/4 per day

Carters 18 .'. 3/2 per day

Paviors 10 .. 5/- (usual earnings)

per day

Labourers 61 . . 3/- per day

Watchmen 5 Varies 2/8 to 3/- per day

Sett Dressers 2 . . 6/- per day

Tarmeu 4 . . 3/- and 4/- per day

Pointsmen 3 . . 3/- and 4/- per day

119

Buildings —

Clerk of Works 1 .. 55/ per week

1,411
Norwich Electric Tramways Company.

No.

75
G6
10

Class.

Hours.

Rate of Wages.

2
2
2
1
1

13
(5
1

Conductors 70 per week

Motormen 70 per week

Inspectors

Point Shifters 70 per week

Point Cleaners 70 per week

Plate Layer 56| per week

Paviors 56* per week

Workshop:

Foreman 561 per week

Fitters 56-J per week

Motor Inspectors 56* per week

Carpenters 561 per week

Blacksmiths 561 per week

Striker 56£ per week

Painter 561 per week

Laborers 561 per week

Car Cleaners 561 per week

Watchman 56* per week

Engineers 9 per day

Firemen 8 per day

Coal Trimmers

Greasers 8 per day

Per Hour. Per Week.
3|d. to 41d

41d. to 5d.

3d.

6d.
7d.

7d. to 71d.

7d.

6£d. to 7d.
5Jd. to Gd.

41d.

61d.

41d. to 5d.
4id. to 5d.

5d.

32/6 to 40/-
18/-

17/6

45/-

45/- to 60/-
25/-
21/-
22/-

GENERAL REMARKS UPON
FINANCIAL CONDITIONS

(Schedule IV)*

To the Commission on

Municipal Ownership and Operation of the

National Civic Federation,

New York City.

GENTLEMEN — We, the undersigned, Bobert C. James, Ac-
countant of Philadelphia, TL S. A., and Edward Hartley Turner,
A. C. A., Chartered Accountant, of the firm of Astbury, Turner
& Co., 42 Spring Gardens, Manchester, England, were appointed
your experts in accounting to assist in the investigation made by
your Commission in Great Britain. We have completed our labors,
and now beg to report to you as follows :

It was our duty to answer the specific enquiries set out in
Schedule IV, relating to the financial details of gas works, street
railways and electric lighting, and to add such further details as
we considered would be useful and pertinent to the enquiry. We
have carried out these instructions as fully as the time at our dis-
posal has allowed; but we feel that there are many points not so
fully answered as might have been desirable. This arises from the
fact that as our examination proceeded new points opened out
which we had not time to investigate in the case of those under-
takings for which our schedules had already been completed. Con-
sequently, we would state that where any details are not given it
does not necessarily follow that such information is not obtainable,
but that we had not time to obtain it.

However, we hope that we have given you sufficient information
to enable you to come to a definite conclusion upon the very im-
portant questions which you have to decide. * * *

Constitution and Management of Private Companies. The
private plants examined are owned and operated by two different
classes of cprnpanies. The first class, and speaking generally, the
older companies, are what are termed " parliamentary companies,"
and are incorporated by special act of Parliament. These acts
confer upon the companies powers to construct and operate works
and also contain sections specifying the method in which the in-
ternal management of the company shall be carried out. The acts

*A large portion of the matter appearing in this report as sub-
mitted also appeared in the schedules for the individual plants and
therefore has been omitted from the following pages, but is to be found
under the appropriate headings in the preceding pages.

FINANCE— APPENDIX. 629

also contain provisions as to raising money by issue of capital stock
or borrowed capital of various kinds, all of which are generally
set out fully. In the case of these companies the liability of the
shareholders is limited to the amount for the time being unpaid
upon shares held by each shareholder. All the private gas under-
takings examined are owned and operated by parliamentary com-
panies and, in addition, the private tramway undertaking at Nor-
wich. We have in all cases examined the special acts of Parliament
relating to the above companies in connection with the financial
clauses as to issue of capital stock, borrowing powers and reserve
funds.

The other class of companies is incorporated under the limited
liability acts officially referred to as the " Companies Acts, 1862 to
1900." These acts comprise all the legislation in respect of limited
companies. As in the case of parliamentary companies all limited
companies constructing and operating gas, electric lighting and
street railway undertakings have to obtain the authority of Parlia-
ment either by special act or provisional order. These acts and
orders specify the works which may be carried out, but do not
always contain clauses as to issue of capital or borrowing powers.
The internal management of these companies is regulated by the
memorandum and articles of association. The memorandum is a
short document which specifies :

1. The name of the company.

2. The situation of the registered office.

3. The objects for which the company is formed.

4. A statement that the liability of the members is

limited.

5. A statement of the capital of the company.

The principal part of the memorandum is "the objects for
which the company is formed." This is usually drawn very full
because, except as defined in the memorandum of association act of
1890, no alteration in the provisions of the memorandum can be
made without winding up the company. The articles of associa-
tion provide for the internal management of the company, and may
be altered by resolution of the shareholders as provided by the com-
panies acts. This alteration may extend to the increase of capital
of the company by resolution of the shareholders, and to decrease
of capital by similar resolution requiring the consent of the court.
The memorandum and articles of association, together with any
special resolutions altering or amending the same, must be filed
with the registrar of joint stock companies.

We have in all cases examined the memorandum and articles
of association of all the private undertakings investigated in con-
nection with the financial clauses as to issue of capital stock, bor-
rowing powers and reserve funds. The private plants examined by
us which are owned and operated by limited companies are eight in
number, and comprise the whole of the electric lighting undertak-
ings, and all the street railway undertakings with the exception of
Norwich. * * *

G30

NATIONAL CIVIC FEDERATION.

The following is a summary of the audits of the undertakings
investigated :

MUNICIPAL UNDERTAKINGS.

Town.
Gas:
Birmingham . . .
Glasgow

Elec-
tive and
Mayor's
Auditors.

Yes.
Yes.
Yes.
Yes.

Yes.
Yes.
No.
Yes.

No.
Yes.

Local
Govern-
ment
Board.

No.
No.
No.
No.

No.
No.
Yes.
No.

Profes-
Special sional
Staff. Auditors.

Yes. Yes.
No. Yes.
No. Yes:
No. Yes.

No. Yes.
Yes. Yes.
No. No.
No. Yes.

No. Yes.

Yes. No.
No. No.
No. Yes.

Leicester

Manchester
Tramways :
Glasgow

Liverpool

London C. C . . . .
Manchester

Electric Lighting:
Glasgow

Liverpool

St. Pancras

Manchester .

PRIVATE UNDERTAKINGS.

Profes-

Profes- sional Ac- Share-
sional countants holders
Auditor Appointed Appointed
~by Share- by Corn-
holders, pany.

Town.
Gas:
Newcastle

Board
of Trade.

No.

Appointed
by City.

Yes

Sheffield

Yes

S. Met

Yep

Trams :
Dublin

No.

London United . .
^Norwich

No.
No.

Electric Lighting :
London Central .
London City ....

Westminster ....
Newcastle D . . . .
Newcastle Supply
St James

Yes.
Yes.

Yes.

Yes.
Yes.
Yes

No.
No.

(See note)
No.
No.
No.
No

No.
No.

No.

Yes.
Yes.

Yes.

No.
Yes.
Yes.
Yes.

No.
No.
Yes.

Yes;

No.

No.
No.

Note. — The City of London Company is not subject to the audit
of the Board of Trade with respect to the accounts relating to supply
within the city.

FINANCE— APPENDIX. G31

Capital Stock or Share Capital of Private Companies. The
following remarks do not apply to municipalities, but only to
private companies) whether incorporated by special act of Parlia-
ment or registered under the Companies (limited liability) Acts
(1862-1900).

In the case of parliamentary companies the share capital which
they are authorized to raise is in all cases expressly stated in the
special act of Parliament incorporating the company, and no further
capital can be issued without the consent of Parliament. In the
case of limited companies registered under the Companies Acts,
1862-1900, the amount of share capital which they are authorized
to raise is stated in the memorandum and articles of association of
the company. These documents are drawn up by the company and
are not subject to any control by Parliament. Consequently a
limited company can increase its capital at any time by resolutions
of the shareholders in general meeting provided the formalities
prescribed by the companies acts are duly observed.

As previously stated, the amount of capital winch a parlia-
mentary company may raise is strictly limited by its special acts,
whereas the capital raised by a limited company is absolutely in
the control of the shareholders and is practically unlimited as to
amount.

The capital contributed by the shareholders of a limited com-
pany always consists of a specified number of shares of a fixed value.
In the case of a parliamentary company it may be issued as a stock.
Both methods are adopted indiscriminately, the general practice
of the larger companies (including the railway companies)
being to issue stock while the majority of trading com-
panies issue their capital in shares. The recent practice is to make
all shares of the value of £1 each. The share capital both of a
parliamentary company and a limited company may be issued with
various preferences and is generally divided into two classes, viz. :
Preference capital; ordinary capital.

The preference capital is generally entitled to a fixed limited
dividend per cent, which is payable in priority to any dividend
upon the ordinary capital. This dividend may be limited to the
profits in any one year, or, as is more generally the case, may be
cumulative and be payable out of the profits of any succeeding year.
The preference capital may be issued with the right to participate
pro rata with the ordinary capital in a distribution of the assets
in the event of a winding up of the company — or may be repay-
able in priority to the ordinary capital. Both methods are adopted
in practice. Full details as to the rights of the preference capital
are in each case given in the schedules.

Founders shares are sometimes issued as in the cases of the
St. James and Westminster private electric lighting companies.
These shares were in the case of the St. James company of the
total nominal value of £100, and carried the right to one-half the
profits after paying seven per cent, to the ordinary shareholders.
In the case of the Westminster company these founders shares

032 NATIONAL CIVIC FEDERATION.

were of the total nominal value of £500. In both cases these shares
have been converted into ordinary shares. * * *

Loan Debt of Private Undertakings. We have already referred
to the fact that the loan debt which may be raised by parliamentary
companies is strictly limited by their special acts. In the case of
limited companies., power to borrow is given by the memorandum
and articles of association and is generally subject to the control
of the shareholders in general meeting. Under the articles of asso-
ciation the borrowing power is very often limited except with the
consent of the shareholders, but there is not the same strict limit
as is imposed on parliamentary companies. A further restriction
on borrowing is very often imposed by the trust deed which charges
the property of the company in favor of the loanholders. We have
in all cases investigated referred to any restrictions which may
exist and have satisfied ourselves that the amounts borrowed are
in all cases within the powers possessed by the company.

In some cases the amount which a limited company may
borrow is fixed at a certain percentage on the nominal capital of
the company and in some cases at a certain definite proportion of
the subscribed capital.

Some explanation may be required as to what is included in
the term " subscribed capital." It includes the total amount of the
capital stock or shares which have been actually applied for and al-
lotted to the shareholders and is the full amount which they may be
called upon to contribute towards the assets of the company, not-
withstanding the fact that only part of the subscribed capital has
actually been paid in cash. It includes the amount of capital paid
up and the amount for the time being uncalled and unpaid. An
instance of this is fully described in the schedule relating to the
Newcastle District Company.

With regard to both parliamentary and limited companies the
usual course is to issue a prospectus. We have, where possible,
obtained a copy of. the original prospectus issued.

Money may be borrowed either as a floating debt without any
specific security or by way of mortgage. In all cases investigated
the borrowing has been by mortgage of the property and under-
taking of the company. In several cases, however, the uncalled
capital is not included in the mortgage. * * *

Municipal Loan Debt. We have paid considerable attention
to this subject in order to satisfy ourselves that the borrowed
capital is in each case within the powers possessed. We do not find
any instance of unauthorized borrowed capital, subject to remarks
on overdrafts and temporary loans.

In all cases the borrowing powers granted to municipalities
are conferred by statute, either under public general acts, by pro-
visional order or by special act. In all the undertakings investi-
gated the powers have been by special acts. The London County
Council differs from all other public undertakings examined. It
has to go to Parliament annually for a Money Act, and any powers
granted, if not exercised during the year, require re-sanction in the

FINANCES-APPENDIX. 633

next act. All powers to borrow are granted for specific purposes
only.

All grants of borrowing powers are by way of limitation, and
the duty of seeing that the powers are not exceeded is placed with
the Local Government Board, which exercises a strict control of
such matters.

We have given in each schedule full particulars of the rate
at which the various municipalities borrow money as compared
with private undertakings. In all cases investigated the municipal-
ity is able to borrow money at a lower rate than private companies.

A very favorite method is to borrow for short periods on mort-
gage of the undertaking and of the general rate of the city. These
loans are generally for periods varying from 3 to 10 years, and in
some cases longer. They are repaid at the end of the period ar-
ranged with the lender either out of the sinking fund or out of
other moneys borrowed to replace them ; but if they are repaid out
of sinking fund the amount may not be reborrowed.

Although the loans are for short periods, the sinking fund
must be set aside to redeem the whole amount at the end of the
time granted by statute. This does not preclude borrowing for
short terms. These mortgages are issued and redeemed at par, and
the interest paid is at the rate of the day. Most municipalities
pay a commission to agents introducing such investors, usually at
the rate of Is. per cent, for each year the money is loaned. This
is the case in several municipal undertakings examined, all of which
are mentioned in the schedules. In the case of Liverpool the com-
mission on issue of stock is included in the capital account of the
electric lighting undertaking. In general, however, these commis-
sions are charged to revenue account.

It is very unusual for a municipality to borrow unless on
security except from the Bank.

The issuance of stock is very often adopted where the amount
to be raised is large enough to enable a quotation to be obtained on
the stock exchange.

As a general rule the borrowing powers granted by Parlia-
ment to municipalities provide for the redemption of the debt at
par at the end of the sinking fund period, as defined in the special
act under which the powers are granted.

In the case of Manchester gas undertaking and a few other
municipal plants, Parliament some years ago sanctioned the issue
of irredeemable stocks, but the sinking fund obligations relate only
to the par value of the stocks. * * *

Bank Overdrafts and Temporary Loans. When dealing with
the borrowing powers of municipalities, we have stated that they
have not any power to borrow except such as is conferred by
statute, and that municipalities rarely borrow except on security —
and we have made an exception in the case of bank overdrafts and
temporary loans. We would state that bank overdrafts by mu-
nicipalities are viewed with disfavor by the Local Government
Board.

634 NATIONAL CIVIC FEDERATION.

On referring to the statements of liabilities of the undertak-
ings, it will be seen that in 8 cases municipalities have such over-
drafts. This may appear misleading unless we draw attention to
the fact that in 6 of those cases the same municipality has cash to
its credit in the bank on other accounts and that the subdivision
is merely an accounting convenience in order to keep each fund
distinct.

In the case of Leicester (gas) there is an overdraft on revenue
account of £15,969, and in the case of Liverpool (electric) an
overdraft of £204,244. In the case of St. Pancras (electric) the
cash in the bank on reserve fund account is less than the over-
drafts on capital and revenue accounts, but in all these cases we
find that the municipality as a whole has money in the bank. Even
then we would point out that Liverpool (electric) has borrowed
£204,244 from the general funds of the municipality. * * *

We have not drawn any special attention to the bank over-
drafts of private companies, all of which are fully set out in the
statements of liabilities. The borrowing of money from a bank is
within the powers of all the private companies investigated. * * *

Repayment of Municipal Loan Debt, Sinking Fund, etc.
With very few exceptions (and this in the case of very old powers
only) all loan capital borrowed by municipalities has to be repaid
within the period prescribed by the special act authorizing the
borrowing or allowed by the Local Government Board when giving
sanction to the expenditure.

In all cases examined by the commission the revenue account
has been charged with the repayment of a portion of the whole of
the loan debt outstanding. This repayment may be either by an
equal annual instalment of principal only, or by an equal annual
instalment of principal and interest combined, or by means of a
sinking fund.

All these methods are adopted in the municipal undertakings
investigated by the commission. In the St. Pancras electric under-
taking the municipality borrowed £10,000 from the London County
Council, the repayment to be spread over a period of 50 years.
They are repaying this at the rate of £200 per annum and pa}ing
each year interest upon the balance remaining unpaid. This is
known as the instalment system, and involves a decreasing charge
to revenue year by year. This municipality has also borrowed
money from the London County Council and the Prudential As-
surance Company, and is repaying these loans by equal annual in-
stalments of principal and interest. This is known as the annuity
system, and equalizes the charge to revenue over the whole period.

When either of these methods is adopted there is not any sink-
ing fund required, and none exists in the case of the St. Pancras
municipality, as the loan is repaid direct to the lender as and when
the instalments are taken out of revenue. Where a sinking fund
method is adopted (and this is generally the case in all other mu-
nicipalities investigated) the revenue account of the undertaking
is debited with such an equal annual instalment as will, with ac-

FINANCE— APPENDIX. < ;.;r,

cumulated interest at the end of the period allowed, provide the
amount of the loan in respect of which it is set aside. These instal-
ments require to be invested either in outside securities or in the
stocks of the municipality.

This sinking fund involves an equal annual charge to the
revenue account during the whole period of the loan, made up of
the annual instalment and the interest on the whole of the original
loan. If any part of the sinking fund is applied in paying off loans,
the interest upon the loan so redeemed has still to be charged to the
revenue account and added to the sinking fund.

When the sinking fund is applied in redemption of part of the
debt at a premium, such premium should not be paid out of the
sinking fund, but charged against revenue. We find an instance
of this in the Manchester gas undertaking in the case of the irre-
deemable stock already referred to. But if the sinking fund instal-
ments are calculated upon the premium value of the loan, then
the whole amount paid is properly chargeable against the sinking
fund.

All municipalities in England have to make a very full return
to the Local Government Board as to their loan debt and the provi-
sion which is being made for redemption thereof by means of sink-
ing fund, etc. This return is very thoroughly checked by the Local
Government Board, which requires the sinking funds to be made
up to the calculated amount out of revenue where the interest aris-
ing from investments has fallen short of the estimated amount.
In Scotland this return is made to the Secretary for Scotland,
who exercises functions similar to those of the Local Government
Board in England. In the year 1904 the Secretary for Scotland
drew attention to a deficiency in the amount set aside for sinking
fund by the Glasgow electric undertaking in 1902 and 1903, and
the municipality accordingly made up the deficiency of £1305.10.6.
out of revenue department.

Mr. Turner has had considerable experience in connection with
municipal sinking funds and we can assure the Commission that
the figures as given in the published accounts are absolutely reliable,
apart altogether from the question of the audit of the accounts. We
would also mention that it is quite impossible for any municipality
to employ any part of its sinking fund in providing a working
capital or in any manner other than its legitimate purpose, namely,
the repayment of loan debt. Any part of the sinking fund not
so applied must be represented either by cash in the bank or in-
vested in outside securities, or where permitted by statute, invested
in the authorized loans of the same municipality.

This question of the investment of sinking fund in the same
municipality was frequently referred to when the members of the
Commission were in England. And we would point out the fol-
lowing facts with reference thereto. In the case of three of the
municipal undertakings investigated, we find that sinking funds
are so invested. These undertakings are Leicester (gas) and Liver-
pool (tramways and electric lighting). In the case of Liverpool

•C36 NATIONAL CIVIC FEDERATION.

the power to so supply the sinking fund in this manner is given
under their special act of 1894.

The investment of sinking funds in this manner is not gen-
erally allowed under older acts, but Parliament has very often
granted this power in recent acts. It should be borne in mind,
however, that the sinking fund cannot be invested in any other
department of the same municipality unless that department has
obtained statutory powers to borrow the amount and is therefore
under a statutory obligation to set aside out of revenue a sinking
fund for its redemption. * * *

Goodwill. The only case in which we can ascertain the exact
amount paid by either a private or municipal undertaking for
" goodwill " is that of the London United Tramways, where
£600,000 was paid under this head and satisfied by the issue of a
similar amount of ordinary capital stock.

We are informed that the price paid in the following pur-
chases included a sum for goodwill :

Municipal Undertakings. Tramways, Liverpool, London
County Council. Electric, Liverpool.

Private Undertakings. None, except as above. The Birming-
ham gas plant was purchased by the municipality from a previously
existent private company at a price which may have included a sum
for goodwill, but we are unable to state whether any such item was
included or not, as the officials are unable to subdivide the amount
appearing as capital outlay.

The following undertakings having been commenced by the
municipalities, and not purchased from private companies, do not
include any item for goodwill in their capital outlay: Municipal
Gas, Manchester. Tramways, Glasgow, Manchester. Electric,
Glasgow, Manchester, St. Pancras.

Under this head we would draw attention to the case of Glas-
gow municipal gas department, where the original private company
was bought out by the issue of municipal annuities. The premium
on these annuities is dealt with elsewhere in this report and repre-
sents the goodwill paid for the purchase of the undertaking. The
Leicester municipal gas undertaking paid a total premium of
£256,651, which represents the goodwill paid for the purchase. * * *

Investments in Other Companies. Several of the private
undertakings examined have invested part of their capital in sub-
sidiary companies. The Newcastle Gas Company has in con-
junction with the local private water company erected a bridge over
the Eiver Tyne for carrying their mains. The South Metropolitan
Gas Company has invested part of its funds in the purchase of a
property in America, in order to obtain monazite sand for the
construction of gas mantles. The Newcastle Electric Supply Com-
pany has invested considerable sums in other local electric distribu-
tion companies. The Central Electric Supply Company of London
is owned entirely by the St. James and Westminster Companies.

FINANCE— APPENDIX. 037

Depreciation. In the following remarks we have dealt sepa-
rately with the practice which has been adopted by each undertaking
investigated, and would summarize these remarks, as follows:

With regard to the obligation to write off depreciation against
the revenue we would point out that this provision is not imposed
upon any municipality by statute. The only case in which it was
imposed was on a private undertaking, viz. : The City of London
Electric Light Company under their Act of 1893, and in 1900 the
company obtained a special act relieving them of this obligation.
With regard to the actual practice on the part of the municipal
undertakings examined, we find that it is usual ^ to write off de-
preciation on such items as meters and stoves; but with regard to,
the main outlay the practice varies. Both the Glasgow and Bir-
mingham municipalities charge depreciation to the revenue account
at definite rates per cent. The Liverpool, Leicester and Manchester
municipalities and the London County Council do not charge
definite rates per cent. At St. Pancras it is not the practice to
charge definite percentages, but the capital outlay has been reduced
from time to time by round sums transferred from the surplus
profits.

The capital outlay at Birmingham has been reduced by the
depreciation written off and has also been adjusted from time to-
time by a valuation being made of the plant. At Glasgow the
capital outlay appearing in the balance sheet is reduced by de-
preciation written off in the case of the gas and electric light
undertakings, but we have ascertained the amount so written off
and have included the capital outlay at the original cost and in-
cluded the depreciation amongst the surplus funds on the liabilities
side. In the case of the Glasgow tramways prior to the year under-
review the capital outlay was treated in the same Avay, but in that
year a change was made, the outlay being included at cost and the
depreciation being shown amongst the surplus funds.

In all cases of municipal undertakings surplus profits have
been set aside to provide a renewals fund out of which renewals
have been defrayed as and when they were made. In addition, the
revenue account has been charged with special renewals in several
cases, but in the majority of cases the maintenance charged is not
divided as between ordinary maintenance and renewals.

The reason for the varying practice on the part of the above
municipalities is found in the different opinions entertained as to
whether depreciation should be charged against revenue account in
addition to charging sinking fund instalments, which are in most
cases created to repay the debt in the period which is fixed by
Parliament and which is generally within the estimated life of the
plant. With regard to percentages charged to the revenue account,
we find that the practice varies considerably, and that the provision
of depreciation has largely depended upon the actual profits of any
particular year. In some cases we find that even where it is the
practice to charge fixed percentages, in some years this has not
been charged at all. We find further when the profits have been

G38 NATIONAL CIVIC FEDERATION.

large, in addition to charging these fixed percentages, the depart-
ment has applied round sums out of its surplus profits and added
them to the depreciation fund.

We find that none of the private gas undertakings examined
has charged its revenue account with anything in respect of
depreciation, except upon meters and stoves. The plant is main-
tained entirely out of revenue, and each year's revenue account is
charged with renewals during the year. The capital outlay is
maintained at cost and no depreciation funds are accumulated.

Similarly in the case of private tramway undertakings, no de-
preciation is charged to the revenue account. The capital outlay
is maintained at the original cost and all renewals are charged to
maintenance during the year in which they are made.

With regard to electric light companies, we have already re-
ferred to the City of London Company. In the following cases
the revenue account is not charged with depreciation, and the
capital outlay is maintained at the original cost, viz. : Newcastle
Supply Company, Newcastle District Company, the Westminster
Company and the Central of London Company. The St. James
Company regularly charges the revenue account with fixed rates
and deducts the same from the capital outlay shown in the balance
sheet.

We find, however, that in all cases where depreciation is not
written off the outlay at fixed rates per cent., the revenue account
is charged with the provision of renewals funds, all of which are
shown in the statements following.

The procedure adopted at Birmingham (gas) with regard to
depreciation differs from that in any other plant investigated by
the Commission. In this case the capital outlay account is debited
with the total expenditure at the end of the previous year, to which
is added the total outlay during the current year. At the end of
each year, a deduction is made for " Buildings and Plant abandoned,
Plant Transferred to Stock Account," and the difference shows the
amount of capital outlay at the end of the year. In explanation
of the amounts deducted the officials of the plant state that the
value of buildings, plant, machinery and gas holders is depreciated
each year and the values reviewed from time to time. These de-
ductions from capital account are therefore in the nature of de-
preciation, and obsolete plant taken out at the depreciated value,
and constitute a charge, against the revenue account. In the pub-
lished accounts of the plant they are not specifically shown as
charges to revenue, but are included in the items of repairs, main-
tenance and renewal of works, etc. Birmingham appears to be
the only plant investigated in which the revenue account is charged
not only with the above items and with the sinking fund instal-
ments, but in which a periodical valuation of the assets is made.

In the published accounts, Glasgow (gas) deducted the de-
preciation charged to revenue account from the total capital outlay,
and the depreciated amount is included in the balance sheet. In
the schedule, however, we have shown the capital outlay at the

FINANCE— APPENDIX. 039

original cost and have included on the liabilities side a depreciation
fund as a surplus created out of revenue. During the year under
review, depreciation has been deducted at the rate of 1^ per cent,
per annum, gas meters 6 per cent, per annum and gas stoves 10
per cent, per annum.

No deduction is made in respect of depreciation on the main
gas undertaking of Leicester, but is charged in respect of meters
and stoves. The municipality considers that the repayment of the
debt by means of sinking fund and the proper maintenance of the
works out of revenue take the place of the provision of deprecia-
tion.

Manchester Gas. As we have elsewhere mentioned, it was
the custom prior to 1892 for the Manchester gas department to
charge the revenue account with depreciation which was deducted
from the capital outlay, but since that date this practice has been
discontinued. The Manchester municipality takes the same position
as Leicester and Liverpool with regard to this question.

Previous to the year ending 31st May, 1905, the tramways
department of Glasgow treated the capital account in the same
way as that of the gas department inasmuch as they deducted the
depreciation charged to revenue account from the capital expendi-
ture shown in the balance sheet. In May, 1905, the committee
decided to issue the accounts in accordance with the standard form
adopted for municipal tramways. In consequence of this decision
the accounts of the tramway undertaking to May, 1905, show on
the assets side of the balance sheet the full capital expenditure,
and on the liabilities side the amount of the fund set aside to
meet depreciation. This fund has been built up by annual con-
tribution out of revenue at fixed rates per cent, and amounts to
£777,637. In the case of permanent way the yearly contribution
was at £450 (since increased to £500) per mile of single track;
electric equipment, 3 1/3 per cent. ; buildings and fixtures, 2% per
cent. ; power station plant, 5 per cent. ; cars and electrical equip-
ment of same, machinery and tools, and miscellaneous equipment,
7£ per cent. These are the rates charged for the year ending 31st
May, 1905. The rates for previous years can all be ascertained
from the published accounts of the undertaking. In addition to
these regular rates the undertaking has set aside a special deprecia-
tion fund which is arrived at by transferring round sums from the
surplus revenue as profits allow. At 31st May, 1905, this special
depreciation amounted to £68,500. The municipality has expended
the sum of £287,036 on actual renewals out of the depreciation
fund above created.

In the case of the Liverpool tramways the municipality has
built up a reserve, renewal and depreciation account which at 31st
December, 1904, had a balance to credit of £211,386.12.0. _ This is
essentially a fund for the renewal of the undertaking and is drawn
upon from time to time to defray the cost of such renewals. It is
not the practice at Liverpool to write off depreciation in addition

640 NATIONAL CIVIC FEDERATION.

to sinking fund, following the practice at Manchester and Lei-
cester.

The revenue account of the London County Council tramways
is not debited with any definite percentage annually for deprecia-
tion, but the County Council is setting aside surplus profits to
create a reserve fund for renewals.

The same practice prevails in the tramway undertaking of
Manchester as in the gas and electric undertakings. No definite
percentage is set aside annually, but surplus profits are transferred
to a renewal and depreciation fund, out of which sums are from
time to time taken as renewals are carried out.

The revenue account of the Dublin tramways is not charged
with any definite percentages each year. The alterations and im-
provements to the track have been from time to time charged to
revenue account as and when made.

It is not the practice of the London United Tramways Com-
pany to charge the revenue account with any definite rates of de-
preciation, which is provided for by charging all renewals to the
year's revenue account as and when made.

It is not the practice of the Norwich Tramways Company to
charge the revenue account with any definite rates of depreciation,
which is provided for by charging all renewals to the year's revenue
account as and when made.

The practice of the Glasgow electricity department has been
to charge the revenue account with definite rates per cent, on the
capital outlay. These amounts have been deducted from the outlay
shown in the balance sheet. In the schedule, however, we have
included the capital outlay at the original cost, and have added on
the liabilities side a credit to the depreciation fund of £140,700.
This figure is taken from the published accounts for the year ended
31st May, 1905, and is the total of the amounts deducted as shown
by those accounts. The officials of the department inform us that
the total amount set aside out of revenue for depreciation amounts
to £235,861, the difference of .£95.161 being accounted for by
capital outlay, which has been entirely written off and does not
now appear in the assets. With regard to the actual rates written
off these have varied considerably, but have remained constant for
the last three years. In 1901 no depreciation was written off and
in 1902 only a small amount. Several items have been entirely
written off.

The revenue account of the Liverpool electricity department
is not debited with any fixed percentages for depreciation, but
surplus profits have been applied in setting aside a renewals fund
which now amounts to £68,971. Out of this fund is defrayed the
actual cost of renewals to buildings, machinery, mains and ac-
cumulators. This is in addition to the ordinary repairs charged
to the revenue account.

As in the other departments of Manchester, it is not the
practice of the electricity department to set aside annually any
fixed percentages for depreciation. They are creating a fund to
provide for further renewals by transfer of surplus profits. In

FINANCE— APPENDIX. 641

addition to debiting the revenue account with ordinary current
repairs, the revenue account to March, 1905, has been charged with
£13,328 for special renewals at the generating and distributing
stations.

It is not the practice of St. Pancras to charge the revenue
account with fixed percentages in respect of depreciation. During
the year ended March, 1906, the revenue account was debited with
depreciation on stores and tools, and during previous years the
surplus profits have been applied in writing off depreciation on
accumulators, meters, machinery, boilers and other works which
have been deducted from the capital outlay.

The provisions with regard to depreciation in the case of the
City of London Company are somewhat unusual. Under the
special act of 1893, the company was compelled to set aside a fixed
percentage on their capital outlay each year, in respect of deprecia-
tion, and the local authorities of the City of London had the right
under the contracts to inspect the accounts of the company in order
to satisfy themselves that the regulations with respect to the statu-
tory depreciation and reserve funds had been complied with. The
municipality availed itself of these rights to inspect the accounts
of the company up to thirty-first of December, 1897. The
directors felt that they should not have imposed upon them any
larger obligations than are imposed on other companies who have
to keep their accounts in the form required by the Board of Trade,
and they applied to Parliament and obtained a special act leaving
the provision of depreciation to the discretion of the directors. In
the year ending 31st December, 1900, no depreciation was set
aside. At that date the whole of the depreciation and reserve
funds were consolidated and since that time no definite sums have
been charged to revenue account by way of percentage, but lump
sums have been transferred out of the disposal profits and credited
to the depreciation and reserve funds. * * *

The directors of the Newcastle Supply Company have not
charged the profit and loss account with any definite percentages
on the outlay. They have created a depreciation fund which now
stands at £156,000. Part of this fund, viz.: £37,500, has been
created out of premiums received on shares and the balance out of
surplus profits. The company informs us that this fund is more than
sufficient to meet any obsolete plant, which is estimated at £117,000.
The directors in their report to the shareholders state that de-
preciation will be set aside when the works are completed and in
full revenue bearing condition.

In the case of the Newcastle District Company also, the com-
pany has not set aside any fixed percentages by way of depreciation.
They have, however, accumulated a depreciation fund amounting
to £7,500, of which £7,000 was contributed in the years from 1894
to 1899 ; and in 1902, £500. Since 1902 the Close and Newburn
stations have been purchased, built and equipped and the greater
part of the outlay being in respect of new works, the depreciation
has been practically nothing.

Vol. III.— 42

642 NATIONAL CIVIC FEDERATION.

The St. James Company regularly charges the revenue ac-
count with depreciation at fixed rates per cent., which amounts are
deducted from the capital outlay shown in the balance sheet. The
rates deducted are 1 per cent, on buildings, and an average of 6
per cent, on the remaining outlay. The amounts deducted are as
follows :

Year ending 31st December, 1905 £14,794

Six years ending 1905 84,500

From the commencement of the undertaking to the

end of 1905

The Westminster Company has created a depreciation fund,
which now stands at £162,755 ; by charging against the revenue in
each year certain fixed percentages on the capital outlay. During
the six years ending 1905, the above transfers from revenue ac-
count have amounted to £149,602. This fund has been debited
with expenditure in the nature of replacements, amounting during
the past six years to £47,127, and we are informed that the whole
of the obsolete plant has been provided for in this manner. All
the ordinary repairs, maintenance and renewals are charged to
revenue account. This company maintains the capital outlay in
the balance sheet at the original cost and does not deduct any part
of the depreciation from such outlay.

The Central Electric Company does not charge the revenue
account with any fixed percentages in respect of depreciation.
They have accumulated a depreciation fund of £6,300, which has
been taken out of surplus profits. * * *

Revenue Account. We find that there is a considerable dif-
ference in practice as to what items shall be included under this
head, and we are unable to state that in all cases, especially in those
of municipal plants, those items charged to revenue are strictly
in the nature of revenue items, and that they do not include exten-
sions which might properly be considered as chargeable to capital
account. The time at our disposal was not sufficient to enable us
to make an exhaustive examination in each case, and we have
accordingly accepted the figures as published by each undertaking.

As we have already pointed out, the accounts of each class of
undertakings are prepared on a fairly uniform basis, so far as
regards the ultimate revenue account, profit and loss account and
balance sheet, but there is a striking absence of any uniform system
of analysis. To be effective, the prescribed system should begin
with the analysis of the expenditures in a manner similar to that
adopted in the standard forms used in America.

Credits to Revenue Account. The same want of uniformity
in analysis which we have referred to under the heading of "ex-
penditure " is met with under the head of " receipts," and* this has
rendered it impossible for us to fill up the schedule in the form in
which it is drawn. We will refer to each class of undertakings
separately :

As to the gas undertakings, the schedule asks for a very
minute subdivision of the sales of gas for various purposes.

FINANCE— APPENDIX. 643

But in very few instances have we been able to fill this up with
any completeness and we have not been able to obtain informa-
tion which would enable us to prepare a uniform statement in each
case on uniform lines, although differing from the schedule. We
must therefore refer the Commission to the information which
we have been able to obtain in each case as shown by the schedule.

In the case of electric light plants also the same want of uni-
formity exists and we must in these cases also refer the Commission
to the detailed information which we have been able to obtain. * * *

Reserve Funds. We have paid considerable attention to the
question of reserve funds. The points we have had in mind are :

(1) That the schedule should show the exact amount of re-

serves which have been set aside by each undertaking.

(2) That it should also show how these reserves have been

built up.

(a) Out of profits.

(b) Out of premiums on shares.

(3) The manner in which the funds have been applied:

(a) As working capital.

(b) In extension of works.

4 , (4) In cases where the funds are invested how the income
from the investments is applied.

(5) Whether any part of the fund has been used and if so to
what extent and for what purposes.

We propose to answer all these questions in the following re-
marks. We have not been able to ascertain in all cases the limits
imposed, but we believe that the Commission have copies of all
statutory and other documents dealing with the question, and that
much of this information will be contained in the replies to
Schedule I. We have, however, in the following remarks given all
the information which we have.

In the case of municipalities the amount which they may set
aside by way of reserve is often limited by the special acts govern-
ing the undertaking and is very often at the discretion of the local
authority, as to whether any fund should be set aside at all. In the
case of private companies any limit in this respect is usually im-
posed by the articles of association and the clause governing the
same is usually under the heading " powers of directors."

Birmingham has accumulated a reserve fund of £100,000,
which has been accumulated out of the profits of the undertaking
after making considerable contributions in aid of the general rate
of the city. It is specifically invested in other departments of the
municipality and brings in a clear 4 per cent, without deduction
of income tax. This resulting interest, £4,000 per annum, is not
included as part of the revenue of the gas undertaking, but is
applied directly in aid of the improvement rate of the city. In
addition to the foregoing reserve the municipality has accumulated

644 NATIONAL CIVIC FEDERATION.

a fund out of profits of £3,000 to cover any possible liability under
the Forged Transfers Act of 1891. This undertaking has no fund
of unapplied profits.

The Glasgow gas undertaking has accumulated a large fund
amounting to £1,346,657 out of revenue to provide for deprecia-
tion, and it not being the practice to apply any part of the profits
in aid of the general rate of the city, they have only provided a
contingency fund of £19,289. This contingency fund has been
built up out of surplus profits, and is not specifically invested, but
forms part of the working capital of the undertaking. In addition
to the above reserves this undertaking has unapplied profits amount-
ing to £21,026.

The Leicester accounts show that they have a reserve fund of
£79,828. This represents the reserve fund of the old company,
existing at the time of the purchase in 1878, which is invested in
the undertaking. The municipality has created out of profits a
further reserve fund of £8,000 which is invested in the funds of
the corporation. The resulting income is credited to the net revenue
account. The limit to the reserve which may be accumulated is
£50,000 under the Act of 1878. The undertaking does not carry
forward any unapplied profits. The balance of revenue for the
year amounts to £43,467, and following the usual practice, this
amount will be applied in aid of rate. We have in all other cases
of this kind treated the balance of profit as if it had been actually
applied in aid of rate and regret that we have not done so in this
case.

The Manchester gas works have accumulated a reserve fund
of £147,608. This amount has been provided out of surplus
revenue after setting aside considerable sums in aid of the general
rate of the city. The amount is not specifically invested, but has
been used in providing the working capital of the department. The
revenue account is not charged with any interest for the use of
this fund. The department does not carry forward any unapplied
profits, the practice being to credit the whole of the unapplied
profits to reserve fund at the end of each year. * * *

The reserve fund of the Newcastle gas company stands at
£60,000, being the limit allowed by statute. It is not specifically
invested, but is represented by the general assets of the company.
In addition to the above the company has carried forward un-
applied profits to the amount of £17,537.

The Sheffield gas company has power under its special act to
accumulate out of profits a reserve fund equal to 10 per cent, of
the share capital. This amount has now been accumulated, and is
invested in outside securities, the income upon which is credited
to the current year's net revenue account. In addition to the
reserve fund the company has accumulated a surplus of undivided
profits amounting to £83,972 to provide for any rise in the price
of coal and to keep the price of gas at its present level, although
this is primarily the function of the reserve fund proper. The
company has a further reserve fund accumulated out of premiums

FINANCE— APPENDIX. 645

received on capital issued, amounting to £19,706. The company
is not empowered to pay dividends upon this sum, and there is
not any obligation to repay it at any time or upon the winding
up of the company. In the latter event it would be represented
by the general surplus assets of the company, and be distributed
pro rata amongst the whole of the shareholders.

The South Metropolitan gas company has accumulated a re-
serve fund of £174,305 which has been provided out of surplus
profits and also increased by interest received on specific invest-
ments representing the fund. At the close of 1905 this fund was
all specifically invested with the exception of £73,932. This com-
pany has also accumulated a renewal fund for redemption of lease-
hold properties which stands at £23,962. This fund has been
created out of revenue by annual transfers which for the past six
years have been at the rate of £300 per annum. It has also been
increased by interest on the specific investments representing the
fund and has been from time to time applied in purchasing leases
of properties occupied by the company. The amount of the fund
uninvested at December 31, 1905, was £2,525. The company has
also out of profits accumulated an "insurance fund" which is
really an ordinary reserve fund which may be set aside according
to the special acts. An explanation of this fund is given in the
report to the shareholders of June, 1903. It is to meet any extra-
ordinary claim, demand or charge which may at any time arise
against or fall upon the company from accidents, strikes or other
circumstances which in the opinion of the auditors due care and
management could not have prevented. The amount to credit is
£105,189, which has been provided by annual contributions from
revenue and increased by interest on the specific investments rep-
resenting the fund. The whole of this fund is specifically invested
with the exception of £3,382. In addition the company has car-
ried forward undivided profits amounting to £5,683.

(For a full analysis of the Glasgow tramways reserve funds,
see schedule * * *)

As to the Liverpool tramways, we have already pointed out
that this municipality has accumulated a reserve and depreciation
fund, amounting to £211,387. Of this amount £100,000 has been
invested on loan to the Water Committee of the municipality. The
remainder of the fund is utilized as working capital or is in the
bank. Considerable sums have from time to time been expended
for purposes for which the fund was formed. In addition to the
above reserve the municipality has accumulated an insurance fund
of £1,659.

The southern system of the London County Council tram-
ways has accumulated out of profits a renewals reserve fund of
£66,607. This fund is invested to the extent of £31,541 in 3 per
cent, consolidated stock of the London County Council. The in-
terest received on this investment is credited to the fund, which is
also increased by the bank interest on the amount for the time
uninvested. The fund has been drawn upon in 1903-4 to the extent

646 NATIONAL CIVIC FEDERATION.

of £5,257, which has been used in repaying part of the debt out-
standing in respect of the omnibus services. It has not been
otherwise drawn upon. In addition to the above there is an un-
appropriated balance of profit amounting to £7,054.

The Manchester tramways has accumulated a renewals and
depreciation fund amounting to £185,086, which has been provided
by annual transfers from the revenue accounts. It is not specifically
invested, but is used as working capital. This fund has been
drawn upon from time to time for renewals of permanent way and
other purposes for which the fund was formed.

(The data for private tramway undertakings are given in the
schedules * * *)

The Liverpool electricity department has set aside out of the
surplus revenue of the undertaking a reserve fund of. . £95,617
and a renewals fund of 68,971

Total £164,588

Of this sum the municipality has specifically invested

in government securities £26,471

Leaving uninvested £138,117

The renewals fund has been from time to time debited with
the actual cost of renewals. During 1905 the amount so expended
was £3,917.

(The data for the other municipal electric plants are given in
the schedules * * *)

City of London Company. We have already referred fully in
the previous part of this report to the provision of a depreciation
fund of £153,379. Up to the year 1900 this company was com-
pelled by statute to set aside certain definite rates of depreciation,
which obligation was removed by special act in that year. Follow-
ing the removal of this obligation the company re-arranged and
consolidated the whole of its reserve funds which now stand as
follows :

Eeserve account for capital purposes £40,941

Eeserve account for depreciation purposes 153,379

Leasehold redemption 2,000

Debenture stock premium redemption account 53,331

Total £249,651

Company has invested specifically £59,303

Leaving £190,348

which is invested in outlay on works. The dividends on the above
investments are credited to the net revenue account. Full details
of these funds are contained in the schedule, but are too long for
reproduction in this report.

FINANCE— APPENDIX. 647

The funds have been built up by transfers from revenue
account, premiums received on issue of shares and debentures, and
sales of old plant. These funds have from time to time been
debited with ordinary current repairs and maintenance up to
1901, special outlay on replacements, loss on sale of investments,
costs of alterations in connection with change of pressure, amount
written off capital outlay for obsolete plant, expenses of issue of
shares, parliamentary costs of opposing bills in Parliament. In
addition to the above a transfer has been made to the debenture
stock redemption account. This latter fund is in respect of the
first debenture stock of the company, of which they have issued
£400,000. This stock is redeemable at 125 per cent., which repre-
sents a premium of £100,000. The account was opened in 1900,
and since that date the revenue" account has been charged with
interest on the balance standing to the credit of the fund, which
has been increased by such interest. There is not any fixed date
for the redemption of the debenture stock, but it is redeemable at
the option of the company at six months notice after 1910. We
consider that this provision is ample. In addition to the above
reserves the company has a bad debt reserve of £1,400 and has
carried forward to next account £22,235, being the balance of un-
divided profits.

(The other companies are covered in the schedules * * *)

In conclusion we would express our thanks to the officials of
the various municipal and private undertakings who have so kindly
furnished us with copies of documents and other information and
without whose help we could not have obtained all the information
which we have.

We have been very pleased to have been engaged in this in-
vestigation and hope that the result will be satisfactory to the
members of the Commission and to the National Civic Federation.

We are,

Your obedient Servants,

E. C. JAMES,
Accountant,

Philadelphia, U. S. A.

E. HAKTLEY TUENEE,

Chartered Accountant,

Manchester, England.

MEETING OF COMMITTEE ON INVESTIGATION
At St. Ermin's Hotel, London, July 3, 1906

To Hear Leading Representatives of the Municipal
Ownership Movement in Great Britain

Prof Frank J. Goodnow was selected to act as Chairman, and
the following gentlemen were heard :

Messrs. T. McKiNNON WOOD, M. P., L. C. 0., Leader of the Pro-
gressive Party in the Council.

J. ALLEN BAKER, M. P., L. C. C., Chairman of the High-
way Committee in charge of the L. C. C. Tram-
ways, etc.

EOBEET DONALD, Editor of the " Municipal Journal," and
the " Municipal Year Book/' and Managing Editor
of the " London Daily Chronicle."

G. W. SPENCER HAWES, Member of the Institute of Elec-
trical Engineers.

The following is a condensed report of the hearing, as nearly
verbatim as possible :

T. McKiNNON WOOD: People sometimes look on municipal
undertakings as mere matters of making money, and thereby reduc-
ing rates, but that is a narrow and inadequate way of looking at the
question. We have a further object. Take the tramways. If a
private company goes into the tramway business it is obviously
their duty to the shareholders to get a profitable line and not go a
mile further because it would help the housing problem or be con-
venient to the people. Then we have had great complications in
London arising from the fact that the matter has been dealt with
in a piecemeal way by separate companies, each monopolizing cer-
tain tracks. There has been no coherent scheme running through
the transportation system. A municipal authority like the London
County Council can consider these larger questions. They can say :
It is true, we are not going to make a profit out of this particular
line, but it will feed one of our great routes, or open up a great
piece of land where the working classes can house themselves in
comfortable and airy homes, instead of being penned up in monster
barrack erections in the heart of the city. The opponents of mu-
nicipal ownership have not proved their case when they say the
municipal authority is not making much money out of the tramways.
We regard it as much an advantage to carry people at halfpenny
and penny fares as if we made another 1 per cent, out of the venture.

LONDON HEARINGS. 649

We regard it as a great advantage to work the men humanely, 6
days a week instead of working them 7 days a week or at any rate
20 days out of 21, as some of the old companies did — as great an
advantage as 1 per cent, more profit — and we regard it as a para-
mount advantage that we may use the control of the tramways
system to develop all the resources of London, and to subserve all
the interests of a great commercial and residential town.

People often put the figures of municipal enterprise in a very
misleading and unfair way by omitting the item of sinking fund.
A municipal authority in this country is obliged to consult — in the
case of London, the Treasury, and in case of other towns, the
Local Government Board — as to the term of years over which it
may spread any loan for capital expenditure. Take our tramways
for example; there is one term of 60 years for land and build-
ings, which of course will last a great deal longer than that,
with shorter terms on other items, making an average of about
5 and 20 years. The effect is that in 25 years a very great portion
of our tramway debt will be paid off and we shall have unencum-
bered property belonging to the rate-payers of London. This is
done by the sinking fund, to which no credit is given in the criti-
cisms made by opponents of municipal enterprise.

We have spent between four and five millions on our tram-
ways. We are still in process of transition. We have only this
year got possession of the northern part of our system. The
southern lines are partly electrified. We are changing horse lines
into electric lines, and under these circumstances you cannot expect
to get the best results from the system, as the traffic is interfered
with and the receipts are stopped on part of the lines.

The total capital is £4,818,000. This includes the purchase
money. The sinking fund is about £450,000. Of the £4,818,000
capital, we have paid off £607,000, and of that £607,000 about
£450,000 is sinking fund. We have also put a sum of £290,000 to
relief of rates.

Although we have low fares, as a half-penny and a penny — we
carry millions of passengers at a half-penny for short distances —
we still earn over a shilling a mile on our tramways, and when we
have completed our generating station we shall be able to operate
the tramways for about 7d. per mile, leaving 5d. for interest and
sinking fund. It has been costing us about 7|d. to operate the
lines, because we have had to buy electricity from other people.

The receipts which we estimated have been fully realized. The
margin we estimated at 4d. has been in fact 4£d., and has gone
£30,000 beyond our estimates during the last two years.

Let me give you a concrete comparison between a private com-
pany in London and the County Council tramways, taking them
on the same basis exactly. The London County Council Southern
Tramways for the year ending 31st March, 1905: Capital ex-
pended, £2,600,000; profit on working, £203,500; percentage of
profit to capital expended, 7.6 per cent. The London United
Tramways Company, year to 31st December, 1904: Capital,

050 NATIONAL CIVIC FEDERATION.

£2,905,000; profit on working, £120,000; percentage of profit to
capital expended, 4.1 per cent. Those are the figures given by the
Official Comptroller, and I assure you, you may take them as abso-
lutely correct.

Mr. WALTON CLARK: I should like to ask Mr. Wood one
question. The statement has been made to us that the London
United has had to pay large sums for way-leaves and consents. If
then their capitalization is so greatly enlarged by these way-leave
charges, is the comparison you made quite a fair one, assuming that
the London County Council has not been pledged to pay large
amounts for widening the streets and for way leaves ?

Mr. WOOD : As a matter of fact the London County Council
has paid much more than the United Tramway has for widening
the streets.

Mr. WALTON CLARK: What is the principle upon which the
London County Council Tramways Department is charged with
the expense of street widening ?

Mr. WOOD : It depends first of all upon whether the widening
is necessitated by the tramway. The Local Authority is expected
to pay something toward the cost of a local improvement, because
it is of advantage to other classes of traffic, and the rule that has
usually been adopted is that one-third is paid by the local authority,
one-third by the Improvements Account, and one-third by the
Tramways Account.

Mr. WALTON CLARK: There is one point about the London
United and the County Council that ought to be brought out. The
County Council has two millions capital which represents the horse
cars. They introduced electric traction on an old system, and
therefore they have this dead capital. The London United lines
are nearly all new. Therefore they have no dead capital or horse
lines.

Mr. BAKER : The dead capital or excess of capital over struc-
tural values in case of the London United, infinitely exceeds the
dead capital in the Council tramways.

Mr. WOOD : It is said that municipalities often obtain powers
and do not use them. That is a very reckless assertion. For one
case where the municipalities obtain powers and do not use them,
there are a hundred cases and very probably more in which com-
panies obtain powers and do not use them. The reason is obvious.
A municipality has no difficulty in raising money. But companies
having obtained powers fail to use them because they cannot raise
the money. You have lines of tube railways — and when they have
the powers they cannot raise the capital. Then they have to come
to Parliament for an extension of time. But nobody else can go
in even if they can find the money, as the line has been monopolized.
That is one reason why it should not be left to private companies.

To show the difference between the horse cars and the electric
trams — from Greenwich to the Bridge, 1901-02, we were carrying
23 million passengers and our receipts were £98,490; in 1905-06,
we carried 372,259,000 passengers, and our receipts were £169,000.

LONDON HEARINGS. 051

Mr. WALTON CLARK: You run cars for working men at Id.,
early hours, and you carry them any distance for a penny, don't
you?

Mr. WOOD: Not any distance.

Mr. WALTON CLARK: Does the London United do anything
of that sort ?

Mr. BAKER: In their franchises they are pledged to rim a
certain number of workmen's cars at ch'eap fares at an early hour
in the morning, but they run a limited number compared with those
that we run.

I might enlarge the comparison which Mr. Wood has forcibly
put before you. He gave you the capital expended and the per-
centage of profits, 7.6 for the London County Council, and 4.1 for
the London United. But he did not tell you that they have their
own generating station, and that they are therefore at a very great
advantage as compared with us in that respect. The cost of power
to us, purchased from four companies, was 2.78d. per car-mile.
And when we are working from Greenwich it is estimated that we
can produce it at 1.4d. per car-mile. That makes 1.38d. per car-
mile advantage they have as compared with us in the generation
of power. If we had been producing our own power as they are
doing, it would have meant an additional £67,579 of earned profit
on the twelve million car-miles run, and would have brought our
7.6 per cent, up to about 10 per cent.

Mr. WALTON CLARK: You pay more for power and yet
run much more cheaply. What is it that they pay more for than
you do?

Mr. BAKER: A provisional order in the hands of a company
represents anything from £30,000 up. Sir Clifton Eobinson of the
London United is always complaining of being held up by the local
authorities and cheated, but he has walked away with a million
pounds in a few years.

Mr. WALTON CLARK: The point is that they have a large
capitalization.

A VISITOR : With small tangible assets.

Mr. WALTON CLARK : Are they wasting material and energy ?
Do you think they are running their cars as cheaply as you run
yours per car-mile ?

Mr. WOOD : I am not able to say, as they do not publish their
accounts in the detailed way we do.

Prof. PARSONS: May I ask whether the regions over which
the two systems operate are different in some way, so that you get
a much larger number of passengers per car-mile than they do ?

Mr. BAKER: That is a very fair question, certainly. We
have the denser population and earn slightly more per car-mile.
But there is another point which I think an important one and
which Mr. Wood did not bring out. On the 183 millions of
passengers we carried in 1905, the average fare — one-third or
about sixty millions roughly being half -penny fares — per passenger
upon our lines was .97 of a penny — that is just under 2 cents.

652 NATIONAL CIVIC FEDERATION.

Mr. WALTON CLARK: The receipts just under a penny per
car-mile or per passenger-mile ?

Mr. BAKER : No. We are speaking now irrespectively of dis-
tance, taking the number of passengers carried and what each one
paid as an average fare. Going up to 2£d. or 3d. or 4d. on our
longest distances. Against our .97 of a penny the London United
was 1.47d. for the year ending December 31, 1904. The difference
is exactly a half-penny, so their charges per passenger are fifty per
cent, more than ours. If we had carried passengers on the same
principle as to charges, and received the average fare that they
received, the -|d. more per passenger would have amounted to no
less a sum than £382,000.

Mr. WALTON CLARK: I suppose it depends on the distances
carried.

Mr. BAKER : It does. But the fact still remains that we give
the 183 million persons who use our tramways, a money advantage
of £382,000.

Mr. WALTON CLARK: If you carry them the same distance;
but if you have the half -penny fares on short distances, the prob-
abilities are that they carry each individual passenger farther than
you do on the average.

Mr. BAKER: I do not know whether that could be main-
tained.

Mr. WALTON CLARK : I think it is bound to follow, otherwise
I do not see how your half-penny fares get your number of pas-
sengers.

Mr. HEALT: It has been stated that 30 years ago men did
not take up public work in London as they do to-day. How do you
account for the men coming to the front to take up this work and
give all their time to it as they do now ?

Mr. WOOD : You see, 17 years ago for the first time an elected
central authority was created in London. Before that we had about
fifty Vestries and the City Corporation, which only represented one
square mile in the populous part of London. Members were dele-
gated from these local bodies to make a Board of Works, which had
limited powers. Up to that time there was no great central author-
ity for whom all the people of London could vote and none who
could speak for them; that is the reason that you did not get the
same attention to London business.

Dr. MALTBIE : Mr. Wood, you said that the Local Authorities
could not get the provisional orders, then keep them and shut out
companies from coming into the area. Now, in the case of electric
lighting, what was to prevent a Local Authority getting a pro-
visional order, authorizing it to establish an electric lighting plant,
and then simply act out the dog-in-the-manger policy of shutting
out any company from coming in.

Mr. WOOD: As a rule powers sanctioned by Parliament are
only sanctioned for a limited time ; if the work is not carried out in
a certain number of years, one or two years, the concession will be
cancelled.

LONDON HEARINGS. 653

Mr. HAWES: The number of streets which are specified in
provisional orders must be supplied with mains within a period of
two years, otherwise the Board of Trade has the right to revoke
the order.

Mr. DONALD: There are cases where you find no companies
coming forward to do the work, because it would not be profitable.

Mr. HAWES : In the first place, a very large proportion of the
provisional orders that have not been carried out relate to the past
two years. There are a few relating to an earlier period, and they
are for very small towns which do not provide a productive field
of electric lighting yet. Also, in some cases, these small District
Councils get an electric lighting provisional order under the sup-
position that the electric lighting bulk supply companies are
going to give them a cheap supply in bulk and then they cannot get
it and consequently the powers remain unused. This explanation
covers all the municipal electric lighting orders which have not
been carried out.

Mr. WOOD : The big towns, like London and Manchester, are
not likely to go into a thing of that sort without having made up
their minds to carry it through, but it constantly happens on a
large scale with companies.

Dr. MALTBIE : What if it is not floated ?

Mr. WOOD: If a syndicate getting rights for the purpose of
floating a company, fails to float it, and keeps the powers to the
end of the time, hoping to sell it, anyone else can get the business.

Dr. MALTBIE: Has the Board of Trade taken away from a
Local Authority that has not used its powers the right to use them,
or granted authority to a company to use them after the time has
expired ?

Mr. WOOD: Yes, they have in a number of cases where the
Local Authority has not shown the Board of Trade that there has
been a reasonable prospect of their carrying out the works promptly.

Mr. HAWES : The Board of Trade always asks the Authority
what it intends to do, and it sends up representations to the Board.
If they are not legitimate ones, the Board of Trade over-rides
them, and the order is that we have no authority after a certain
day. Just the same with companies; there are a good number of
them who have not made any attempt to carry out their orders.

Mr. DONALD: You heard Mr. Wood say that London did
not have good government years ago; well, Mr. Wood and Mr.
Baker were the type of men who came forward to give us better
government. One reason why London is not better governed
to-day, and that municipal enterprise is not further advanced, is
because during all that period those who have been working for
progress have had to give one-half of their energy to fight com-
panies who have been wire-pulling and undermining honesty of
public life and everything else, and I want to point out to you that
wherever you have a franchise company you have the elements of
corruption. You have a splendid example in the tramways. In
the early elections of the County Council, we had the telephone

G54 NATIONAL CIVIC FEDERATION.

company (circularizing all its shareholders), the gas companies
and the electric lighting companies — these vast corporations with
their thousands of shareholders, all operating against the mu-
nicipality and getting men on the Council. The result was that
this Council got elected even. That level was not enough; the
companies wanted one on their side, and when it came to the
question of the County Council municipalizing the tramways as
they had a right to do, there was a terrific fight, and the great
Tramway Company paid an impecunious labor man to vote against
his convictions. The cash value could not have been a thousand
pounds — the cash value to London has been half a million, for this
delayed the electrification of the tramways for seven years — that is
the result.

Mr. MOFFETT : Was this man convicted of bribery ?

Mr. DONALD : No, he was a labor representative. Every labor
man in this country would vote for municipal ownership. At the
last critical moment the vote was transferred. He was ostracized
and a few months afterwards became a saloon-keeper. Wherever
you find a company in municipal life in England you find a little
bit of corruption in its business. A tramway Company goes into
Norwich ; I take Norwich because you have been there. There is a
continental financier on it, with no local interest whatever in
Norwich. They say: "Who can we get hold of in this city to
work our game?" They get a member of the Council; there is a
member of the City Council of Norwich on the Board of that
Tramway Company, and wherever you go where these companies
are operating, you find a member of the Board on the municipality.
Take the company that is owned by Mr. Garcke. The solicitor to
that company is the Town Clerk. Why did he select that particular
gentleman ? Not because of his legal ability, but because he would
suit their interests. Wherever you find a company you have this.
Again I say it is absolutely impossible for a man to serve the com-
munity honestly and to serve the company honestly. Therefore if
you want to establish absolutely pure government in any city, you
must get rid of the sources of corruption. The sources of corrup-
tion in London and in England have been the private corporations.
Since we are rid of the Water Company in London it has been a
tremendous relief for the London County Council, and they have
more energy to work for other things. Wherever you have a com-
pany it furthers its interests by getting somebody in the municipal-
ity to work for it.

Mr. MOFFETT : You speak of the companies taking part in a
very practical way in politics for the purpose of corrupting them.
Specifically you said that they used this influence to resist mu-
nicipal ownership. Now would you say that they used their politi-
cal influence in this or in any other way to accomplish any other
purpose ?

Mr. DONALD: No, only to keep what they had. You will
find that in the elections around London it is very difficult to get
men to come forward, but if a company pays them, there is no diffi-

LONDON HEARINGS. 655

culty. If they get hold of a man who would not mind being paid,
he comes forward as one of the public candidates, but he advocates
the Company's interests. You will find it everywhere, and we in
this country were not able to get a city purely governed until we
had gotten rid of the companies.

Prof. BEMIS: It has been suggested to us that municipal
trading diverted the statesmanship and energies of the Council to
the neglect of other things more important, by which I suppose
reference was made to education, sanitation and various matters of
social amelioration.

Mr. DONALD: That cannot possibly be. There is no author-
ity in this country more energetic in promoting municipal owner-
ship than the London County Council, and it is absolutely un-
questioned that no authority has maintained a higher standard of
park management, of polytechnic management, of sanitary manage-
ment and everything else that is outside companies. The same
thing happens in other cities.

Mr. HEALY: We have been told that the municipalities have
been over-paying their employees and that they have handled the
taxpayers' money recklessly.

Mr. DONALD: The municipality only aspires to be a model
employer. It does not want to be better than the best outside
employers. I am quite sure that Mr. Baker in his own business
pays his own men better than the County Council men are paid, or
equally well, because Mr. Baker is a model employer. The London
County Council has done a little better by employees in the so-
called unskilled lines than has other Authorities.

Mr. HEALY: You do not think there is any fear in regard
to municipal trading that when the labor men get more powerful
in the Councils they will drive wages up out of all proportion to
what wages are now ?

Mr. DONALD: No. I think it is impossible. Direct repre-
sentatives of labor must be limited in municipal work, because
municipal work is very hard and it takes up much time. It will
take Mr. Baker 8 hours a day. There are no labor men who can
attend to the work. You could get a few trade union officials and
they might pay a man or two, but they would not have the ability
nor the time to do the work. Labor men in this country have not
aspired at all to run a municipality. As to driving wages up to
an unreasonable level, I think the working people would stop that.
They are not going to have a preferential class of wage earners
to get more wages than they. They would vote against it and
every taxpayer would vote against it.

Mr. BAKER : Sometimes on Committees where there were two
or three labor men, a suggestion might be made that possibly cer-
tain men were not being sufficiently well paid. Another labor man
there would say : " This is the trade union rate ; we cannot go
against our own principle." The trade union rate, that is, the rate
mutually established between outside employers and the men, is
the one that is adopted by the London City Council. Of course it

656 NATIONAL CIVIC FEDERATION.

goes without saying that trade union rates will always be fixed
by the great private industries of the country rather than by a
municipality. I think that danger is a very small one.

Prof. PARSONS : A suggestion has been made that possibly
or probably municipal ownership may injure labor by interfering
with the unions — breaking up the unions — making the men so well
satisfied that they will not want anything to do with the labor
movement and so injure organized labor.

Mr. DONALD : I think that extremely improbable.

Mr. MOFFETT: Your suggestion is that men do not seek to
obtain wages beyond the union rate, which is what the men call a
fair rate between employee and employer. Now with regard to
their output: take, for instance, the case of a bricklayer. Will a
bricklayer employed by the London County Council lay as many
bricks for a day's work as he does for a private employer who pays
the same wages ?

Mr. BAKER: I think generally speaking, that he will, on the
same class of work. Of course the London County Council in its
buildings, like fire brigade stations and other buildings that are to
be of a lasting character, some of them having considerable archi-
tectural beauty, have established a standard of excellence to justify
not only the period for repaying the capital cost of these buildings
in the sixty years that is allowed; but when they are constructing
buildings, whether model dwellings for housing the working people
or fire brigade stations, whatever these buildings are, they are put
up with the view of lasting not only 60 years but twice that, and
the standard of material and of workmanship is very high as com-
pared with what is known in London as " jerry building " — getting
through a lot of cheap buildings for a speculative purpose to sell
as a builder would do, perhaps two or three months after they are
built.

Mr. DONALD : The County Council does its work too well. It
builds to last 200 years. I hope that before 200 years have passed
there will be a different class of dwelling from these high tene-
ments of to-day.

Mr. MOFFETT : You say that in the same class of work a man
will lay as many bricks as for outside contractors. Is the case
typical of municipal employees?

Mr. BAKER: It is practically the rule laid down by the
trades union and that has prevailed for a similar class of work
whether by an outside employer or by the County Council.

Mr. MOFFETT : Suppose you had one hundred men to put in
an extension of sewers, an odd job, and employment temporary,
how would you set about hiring these men? Do you take them
from some list or is preference given to veterans, or are they rec-
ommended to you by some one having a peculiar interest in the
Corporation or in its projects ?

Mr. BAKER: The foreman who is engaged to carry out work
of that kind is made responsible to his works manager, and he has
to see the work well done. There is no preferential list whatever;

LONDON HEARINGS. 657

the men are taken on and discharged as they are required. They
may or may not be local men. Of course, other things being equal,
the local man is preferred. But there is no appeal or influence
that we know of to have a preferred set of men who are of a par-
ticular political opinion. Such questions are never asked, it is the
fitness of the man.

Mr. HEALT : If a foreman or a superintendent were taking
men that had a " pull," what action would be taken ?

Mr. BAKER: He would be reported at once to his Chief, and
the Chief would bring the matter before the committee, and the
committee would at once discharge him.

Prof. PAESONS : There are three points to which I would like
to direct Mr. Donald's attention for a moment. The increase of
taxes in recent years which is charged to municipal ownership, the
alleged unreliability of municipal accounts, and the keystone of
advantage — what he considers the chief advantages of municipal
ownership. Those three things — the increase of taxes, the unre-
liability of accounts — the question of audit, etc., and the principal
benefits of the system.

Mr. DONALD : About the increase of taxes ; you may take any
reference book — take for instance the Stock Exchange Intelligence
Year Book; at the beginning of it there is a list of municipal
productive undertakings and non-productive undertakings, the
amount of taxes and the amount of debt; you will find there are
exceptions, one city might have an enormous expense over its
sewerage or something, but as a general principle the cities that
have advanced farthest in municipal trading have the lowest taxes.
The city of Bolton has municipalized everything for a considerable
number of years, and it relieves its local taxation to the extent of
£50,000 a year out of profits, which is about £1 per house in the
city. It would amount to a shilling in the pound on the tax rate.
Now you have visited the city of Norwich. Norwich, it has hardly
any municipal ownership or profit out of municipal trading, and
the rates are very high. I object to this principle of relieving
rates out of profits, but there are several reasons why we are obliged
to do it. The system of local taxation is very unjust in this
country. It is levied on the annual value or rental value of prop-
erty; therefore it hits houses very hard, and industry, while it
touches land very lightly. We have a big local taxation problem,
and until that problem is solved on an equitable basis we consider
it a matter of expediency to relieve local taxation out of mu-
nicipal profits. The sound policy for a community is to look at
the social balance sheet as Mr. Wood has mentioned to you, and
the financial balance sheet, and give the community cheap tramway
fares, cheap gas and cheap electric light. You benefit the com-
munity more in that way than by a system of indirect taxation,
which is unsound business and bad policy. You must regard it
generally as an opportunist policy. If we had our local taxation
on another basis, the general system here would be to do away with
profits and give the community the benefit in prices; and another

Vol. III.— 43.

658 NATIONAL CIVIC FEDERATION.

thing, we ought to look ahead to the time when the capital charges
on most enterprises will be very low, and the benefit to the con-
sumers all the more.

Prof. PARSONS: About the accounts and the question of,
audit ?

Mr. DONALD: You can put aside County Councils and Dis-
trict Councils and the London County Council, because they are all
under Government. The other towns — the municipal Corporation
Boroughs — all have, in their own service, an accountant who keeps
the accounts. In addition to that, they call in a professional
auditor who is perfectly independent. A chartered accountant
must maintain his professional standard.

Prof. PARSONS: With regard to the audit; would the audit
show what ought to be the capital charges against the undertaking
in all instances? For example, if street widenings were put down
to the expense account of another Committee than the tramways,
would that be revealed by this audit ?

Mr. DONALD : It would show exactly how the capital has been
disposed of. The accountant would treat the municipal corpora-
tion exactly as he would a private company. An accountant cannot
deal with the allocation of capital in a private company. He will
deal with the soundness of the accounts and finance. Account-
ants reported when there is not sufficient depreciation.

Prof. PARSONS : Could we, as a Committee, rely upon the
statement as certified to by the accountant that a certain amount
has been spent upon tramways ? Could we rely upon its including
all the items? Would it include the money that had been spent
by the Highways Committee to widen streets ?

Mr. DONALD: Yes, and Mr. Baker can tell you that. The
provincial municipalities widen very few streets for tramways —
the traffic is not so great as in London and it is not necessary
to do it.

Mr. BAKER: The entire cost of all the street widenings that
have been paid for by the seven or eight tramways companies who
owned line- in London before the franchises fell in and we pur-
chased their undertakings — the entire amount that they had spent
for street widening in the whole County of London, was £23,000.
Now when a municipality comes in to carry out any street improve-
ment there is always a different standard set up from that which
prevails in connection with the company. The Local Authorities
will say to the London County Council : " If you run a tramway
out there we must have a very big widening." If a company was
coming they would say for " Tramway purpose* we want so much
and we will take so much.". Mr. Wood ha* said that thorp has been
a sort of rule of thumb basis upon which wp hnvp -into'1. onp-third
of street widenings charged to tramways account, on^-^ird to the
Local Authority, and one-third to the Metropolis ^arwd as a
metropolitan improvement for through traffic. Thnt hn<? not pre-
vailed in all cases. As a matter of fact in all ca«e« of <^-oof widen-
that we have carried through up to the present moment, on

LONDON HEARING

any of our working lines, the whole cost has been charged to the
Tramways account. And we have assumed capital charges of over
for further street widenings where a third has been
charpci to the Tramv.'ays account for improvements on streets
where there are no trams as yet; and we have paid ten or twelve
thou-and pounds on interest and sinking fund in advance on those

b and on those new roads — in advance of a single line having
been opened or a single car having been run. And we have been
buying our electricity at about three tirces the price that we ought
to have paid, because we are taking a temporary supply. They
have their own stations for generating and we will have after the
middle of this year.

The CHAIRMAN: When you £et a franchise from a Local
Authority, how long does it last to rt;n a tramway?

Mr. DONALD: The London County Council gets them forever
of course.

The CHAIRMAN: Is that because of any peculiar law with
regard to London ?

Mr. DONALD : Xo. The municipality has a franchise forever.

The CHAIRMAN : Suppose you go outside of London ?

Mr. BAKEK: We make arrangements for seven years renew-
able and so on.

The CHAIRMAN: I mean where you go in and build the
track. You could go into a suburb of London and take a fran-
chise from a Local Authority, build the track on condition that
your property could be taken in 21 years at it? value.

Mr. BAKER : Oh, yes, we do that.

Mr. DONALD: Yon must never forget that the municipality
has to work for a different principle, a different ideal. You have
not. perhaps, *"Mf""r»H the London United System, but if you did
yon would come to a place called Brentford, where they have
put down two tracks on a street that is not wide enough for one.
The result is that the number of accidents there is enormous. A
carriage or a horse cannot go through if there are t^o cars eoming
along. Sir Clifton Robinson ought to have told yon how he managed
to get through Brentford without widening that street — that would
be very interesting, because within the nest few years municipalities
will have to widen it for his benefit ; it is a curiosity — High street,
Brentford.

Mr. HEALY: How did he get through there?

Mr. DONALD: Xo. You must ask him that- I don't know
how msny councilmen he saw, nor what he said to them.

Mr. WALTON CLARK : Yon were speakinz of your east of
operating as expressed ia the percentage you have earned OB. your
investment* — that is last year's.

Mr. BAKER : That is the last published issue.

Mr. WALTON CLARK : How many miles ?

Mr. BAKES: We had about 26 miles of electric lines
about 20 miles of horse probably.

Mr. WALTON CLARK: Yon are probably not expending
neeessarily any amounts in repairs on bone cars.

660 NATIONAL CIVIC FEDERATION.

Mr. BAKER : No, but we are doing something more. While
we are reconstructing our horse lines we are shutting up large sec-
tions of them and taking no receipts whatever there; the whole
system is disorganized, and the receipts drop practically 50 per
cent. During the first two years of reconstruction on the South,
we had small deficits of £2,000 and £8,000, but that was because
we set aside £50,000 to £60,000 a year for sinking fund and re-
newals, in addition to the payment of £25,000 interest the first
year, and £57,000 the second year. We pay interest and sinking
fund in advance of any lines and trams being run at all. In one
of those years in which we show a deficit we had actually paid in
this advance interest and sinking fund about £4,000 more than
the amount of that deficit — about £12,000 or £13,000 was paid in
advance interest and sinking fund. We are paying at a rate that
will pay the whole thing off in 25 years, the lines in the meantime
being actually closed during reconstruction.

Mr. WALTON CLARK: During this period that you did not
make any earnings on this horse track, had you any money lying
without interest?

Mr. BAKER: You borrow more money — it will be on deposit
and will be earning a small amount. It takes you a year to re-
construct a certain portion and get your cars to running — you pay
three-quarters of the whole of the construction charge before you
are able to run a single car, and you commence to pay your interest
and sinking fund immediately.

Mr. WALTON CLARK: How old are your electric trams?

Mr. BAKER : About three or four years old.

Mr. WALTON CLARK : How many miles ?

Mr. BA.KER: We have 30 miles of line double track electric
conduit about 2-J or 3 years old. While we are putting aside what
we call renewals and reserve accounts, the whole system is being
practically kept up out of revenue. We have actually expended
during these last three or four years, £65,000, which might legiti-
mately have been taken from a renewals or reserve fund, because
we paid out of profits capital charges that in the ordinary way
would be spread over a number of years.

Mr. WALTON CLARK: Have you any account of the amount
you paid for maintenance and repairs per mile of track ? Not what
you put aside, but what you have spent in keeping up joints and
renewing plant.

Mr. BAKER: We keep a careful account of that, and it is
paid out of revenue. Under police regulations in London we are
obliged to keep all our cars up to complete and perfect working con-
ditions all the time. They are annually licensed under those con-
ditions. They have to be repainted and fixed up. If a car is
smashed up in an accident and practically becomes a wreck, it
ought to go on your renewals fund, you have to put on a new car —
but we simply pxit in all the new parts and make a perfectly new
car, which is all charged to the revenue account.

LONDON HEARINGS. 661

Mr. DONALD: You ought to compare Dublin with English
cities — Sheffield, Leeds, perhaps come nearest in population — and
you will find that the comparison is in favor of the municipality
on every point — the amount of profit earned and everything else.

Mr. BAKER: We in London are expected and we are glad, to
keep up a standard of paving that is quite above what is usually
demanded of, or is usually carried out at all events, by any com-
pany. Comparing Clifton Kobinson's system of the London United
for example, and ours here, our paving and maintenance is very
much better than his. With the very heavy traffic that we have
here, the maintenance of paving is a very considerable item. An-
other thing, we are paying not only interest and sinking fund and
all these charges out of revenue, but we are paying in local rates
to the Borough Councils, through whose districts we run, the sum
of £500 per street mile.

Prof. PARSONS: How about the competition of the bus and
the motor bus? Is it about the same on your system and the
United?

Mr. BAKER : There is very much difference. The competition
with us is much greater than on the London United. They have
practically run the busses off their streets. We cannot hope to do
this until we cross the bridges and unite our Northern and Southern
lines. But I think municipal tramways are hardly hit from the
fact that they have to pave and maintain paving for the motor
omnibuses and all the other traffic as well.

Prof. PARSONS : Do not the companies do that also ?

Mr. BAKER: Both are unjustly hit in that way. We pave
between the tracks and eighteen inches on either side and maintain
it perfectly and at a higher standard than any company does, and
yet having no horses, we do not wear the pavement at all. We
have tram cars that carry 70 passengers. If we did not have those
trams there would be two motor omnibuses with 34 passengers
to each bus or something of that kind — a less number for two
motor omnibuses than we carry in one of our cars — there would be
more street congestion, and infinitely more wear on the pavement;
so while we are paving and maintaining pavement we are taking
off the traffic on that pavement, which would be two, three or four
times as great if it were not for our sefvice.

The CHAIRMAN : Is it a fact that outside the city of London
the veto power of the small Local Authorities is a hindrance to the
development of suburban systems such as we have in the United
States ?

Mr. BAKER: This Borough Council veto in London has un-
doubtedly hindered tramway development to an enormous extent.
Had we had the whole position in our own hands, we would have
had a more complete system for London — you would have seen it
much more up-to-date.

The CHAIRMAN : Is it the same throughout the country as a
whole ?

662 NATIONAL CIVIC FEDERATION.

Mr. BAKER: The little Local Authorities have been a great
disadvantage both to the companies outside and to the larger mu-
nicipal authorities.

Prof. BEMIS : I know that Mr. Baker has been in America a
good deal. I have read one or two valuable reports of his on tram-
ways, comparing American with English conditions. Of course we
are all very much struck with the far greater development of tram-
ways in America than in England, and we are also familiar with
an assertion of Mr. Eobert Porter that this difference is due to the
fact that private ownership has full swing in America and does not
have it here. I think a word from you on that point would in-
terest us.

Mr. BAKER: You say rightly that I know something about
the conditions over there. I was born in Canada, and have traveled
pretty well over the States, and when I joined the County Council
at first I felt that my best service would be given to London by
putting into actual practice in the London County Council some
of the experience I had gained in America and other countries.
And being an engineer I took up the tramway question as a
specialty. I am perfectly familiar with all the development over
there from the cable in Broadway and the first little bit of conduit
on Lenox avenue, and then the development of the conduit and the
change of the cable into the conduit. I go to America every year
and spend a month or two in the United States and Canada, and
naturally keep my eyes open in regard to these matters. And I
have said on various occasions that I am simply astonished that,
with the type of men that you have available in the United States,
great administrators, great business men who can build up gigantic
fortunes, you cannot find a type of man who has the interest of the
great community in which he has made his money sufficiently at
heart that he might from a purely patriotic point of view give up
a part, if not the whole of his time, and do for the public good
that which he has done for himself, and administer some of these
great utilities, and see that your city government is pure, and that
,Lhese great services, like water, gas, electric light and tramways —
srreet railways — and a few others, are carried on not for the benefit
of a monopolizing company, but for the benefit of the public. And
one argument I use is this : If we in London can carry our
passenger? at less than an average of Id. per passenger, while a
company jnst outside of us find that they have to charge 1-Jd. for
their average fare, that 4d. which is saved becomes in the aggregate
a very considerable amount to the passenger during the year.

Prof. BEMIS: I don't think yon quite answered the question
I meant to raise, which was to explain why England has been so
much slower in tramway development in mileage per million popula-
tion than America. Is it due to municipal trading or other causes?

Mr. DONALD: I will answer that question by asking a lot of
other questions. I want to know why telephones were popular in
America years before they were in England, and I want to know
why you developed boot-making much before we did. It is the

LONDON HEARINGS. 663

character of the people. It has nothing to do with municipal trad-
ing at all. The same as your railroads. American railroad ad-
ministration is ahead of ours. We had to import an American to
electrify our district road. When George Francis Train came over
here with a tramway, nobody would look at it — it is the character
of the people. America has such a lot of inventors, and they have
so much energy, that if a thing is new it is taken up at once. The
same with the typewriter.

Mr. BAKER: From our experience here, we find the two
essentials for success are, first, getting men of first-class ability and
of sterling character to carry on the works as tramway managers or
as electrical engineers, men put in with a view to a permanent
situation so long as they do their duty, entirely independent of
party and of political pull.

The CHAIRMAN : Do you find any difficulty in keeping that
class of men in your service ?

Mr. BAKER: Absolutely no difficulty whatever.

The CHAIRMAN : It has been stated to us that cities outside
of London had some difficulty in getting engineers. Engineers
would prefer to work for a private company rather than for a
municipal corporation.

Mr. BAKER : It may be so in some cases. Some of the better
corporations may feel they are entitled to pay a higher salary. A
municipal enterprise should not be conducted on penurious lines.

The CHAIRMAN: Can an engineer expect to receive as good
a pecuniary compensation from a municipal corporation as he would
from a company?

Mr. BAKER: There may be exceptional cases one way or the
other that would show a different view, but I think the balances are
equal ; if not, better salaries are paid by the corporation than by the
private enterprise.

Prof. PARSONS : With the leading business men who go into
your local governments, managers of large affairs, is the social
consideration they receive a part motive?

Mr. BAKER: I think probably a great many men will be in-
fluenced by the fact that they are brought into public notice, and
they get a certain amount of honor and cudos, as we say, from ser-
vice of this kind. I think you must endeavor to get the class of
man to serve on these bodies who will be patriotic enough and dis-
interested enough to put private interests entirely aside, and have
the public interest entirely before him as his aim and his ideal.

The CHAIRMAN : Can a man who has not an independent
fortune devote the time that is necessary to carry on this, work?
Can he carry on his business successfully ?

Mr. BAKER: Of course one can only speak from his own
experience or particular observation. I couldn't afford to give up
business to carry on this work. I have to earn my bread and
butter. And it means considerable sacrifice. My trips to America,
producing reports on tramways, and so on, have always been at my
own expense. And I would not venture to say how many thousands

664 NATIONAL CIVIC FEDERATION.

it has cost me during the last ten or twelve years — and what one
might have made in business if one had given all one's time would
amount to many more thousand pounds. But having food and
raiment, and being content not to live in great style, one feels it
is a privilege and a pleasure to give up a certain portion of their
time for doing good. And if one has a few thousand pounds less
in one's banking account per annum or at the end of one's career
than one would have otherwise, one would feel that he had served
their day and their city to the best of his ability.

The CHAIRMAN : How much time does it take generally ?

Mr. BAKER: On the London County Council one would have
to give three or four afternoons a week. I have given three days
a week for the last nine or ten years.

Mr. MOFFETT : Practically half your working time ?

Mr. BAKER : Yes. And with Parliament I am going to give
more — right up to 12 o'clock at night. I am giving up the London
County Council at the end of this year, because I feel my work in
Parliament will not allow me to do justice to this work.

Mr. MOFFETT : We have been told that when a company seeks
to obtain authority from Parliament to enter the tramway or the
electrical business, pressure in several ways is brought to bear upon
Parliament to prevent their getting this privilege. We have been
also told in regard to this matter that there is an association of
municipal employees, called the Association of Municipal Corpora-
tion Clerks, composed of Town Clerks and others, and that this
association would get its members together, and use their influence
to the detriment of the petition of the company. Now, are you
aware of the existence of such an association, and are you also
aware of its acting in that particular way ?

Mr. BAKER: I know of no case in which the Association or
Corporation of Clerks has acted in the way you state, and I do not
know on what basis or how they would be able to act in that way.
Of course nearly every franchise that is sought from Parliament
in London or in any other municipality is on principle opposed by
the municipality. I do not think there is any railway Bill, whether
it is a steam railway, an underground railway or tramway enter-
prise, or an electric lighting concern, that the London County
Council does not feel that it is necessary to have a status before
Parliament, and therefore the Parliamentary Committee considers
the thing and they may decide to oppose it. It does not mean that
the opposition is carried to the extent of trying to prohibit, but to
safeguard the interests of the public, for whom they are guardians
or custodians. It becomes an absolute necessity that they should
have counsel and appear, either on preamble if the scheme is not
good, or on clauses if the preamble and general principle is ap-
proved of, so that they may get conditions that will be in favor
of the public at large. For example, when the London United
Tramway was coming inside, or the Tube Railway, the Central
London, were getting their franchise, the London County Council
had their Attorneys or their Counsel present, and would have a say

LONDON HEARINGS. 605

in regard to the position of the stations, the safety of the public,
the fares that should be charged, a certain number of workmen's
cars to be run morning and evening in the interests of the working
classes, etc. ; and they would be heard in that way, not necessarily
opposing the scheme.

Mr. MOFFETT: You would say that when a company has
status before Parliament no such pressure is brought to bear upon
Parliament that would deny the company its privilege under that
status ?

Mr. BAKER: I think not. Of course private members hold
their views in regard to these schemes, and they will speak to their
friends naturally, and the merits or demerits will be discussed;
and if a municipality was seeking powers at the same time, those
who believed in municipal ownership might naturally do a little
work on their own account and try to get the municipal bill carried
through. That is the situation in general.

The CHAIRMAN: The statement was made that under these
conditions the municipality that was opposing a company would
apply to this Association of Town Clerks, and that they would cir-
cularize Parliament, sending from each Town Clerk a petition for
the particular municipality with which he was connected, and writ-
ing the Member of Parliament to oppose this Bill, and could and
did organize a tremendous general opposition which it was very
difficult for the company to overcome.

Mr. BAKER : Of course the municipalities may to some extent
help each other in that way if they believe that the incoming private
corporation would be a detriment to the municipality carrying on
certain work. I think they do in some cases.

Mr. HAWES: Did they tell you that they also had an organ-
ization under the title of the Industrial Freedom League, which
undertakes even more violent measures in favor of the companies
and against the municipalities ?

Mr. MOFFETT: We were told with regard to the matter of
accuracy in municipal accounts that in Leeds £300,000 had been
spent on tramways, and at the same time £300,000 in street widen-
ings, and that not one sixpence was charged to the Tramway
Account with respect to this last expenditure. In other words,
£600,000 in all was spent, £300,000 of which was spent for widen-
ing the streets; yet the books showed but £300,000 spent on the
tramways, the second amount going to some other account.

Mr. BAKER: It is a debatable point whether there is any
justice in charging street widenings either to tramway companies
or municipal tramway enterprises, inasmuch as they pave and main-
tain the paving for the rest of the traffic on that street. But I
think if you take the amounts that are paid by municipalities
throughout the country for street widenings where tramways are
carried through, and the amounts that are paid by companies in
proportion to the length of mileage, you would find that the
municipalities pay a much larger amount than the companies do,
and make much more valuable contributions to the general interests
of traffic at large.

666 NATIONAL CIVIC FEDERATION.

Mr. HAWES: As the Leeds tramway contributes £140,000
per annum to the rates, it makes a pretty good return even if the
whole street widening has been charged to another account.

Mr. MOFFETT: Is there any general disposition upon the
part of the friends of municipal ownership to disfranchise mu-
nicipal employees ?

Mr. BAKER : I should not think so.

Mr. MOFFETT : Is it not being considered ?

Mr. BAKER: I do not know of it. I do not see why that
point should arise. These men, if they are properly controlled and
understand their duties, are surely employed to do their duty
quite apart from any particular party.

There is one point that I was going to refer to in making the
comparison between the London United and our Southern system,
as regards depreciation and reserve. We had £66,000 in that year,
while the company had £5,000 put aside to depreciation and reserve
fund.

All our tramway work will be for the next two or three years
in the transition stage. We are now commencing to reconstruct
the northern lines, and until they are done and regularly working,
we cannot show our best results, many of our best lines being
closed in sections for the time.

Mr. HEALY: It has been stated that private companies can-
not compete with the municipalities in tramways. Cannot a private
company that is well managed compete with the municipality?

Mr. BAKER: I think they can run their cars and probably
give just as good a service and can be as ably managed, but of
course the whole basis of the work is different. In one case the
tramway is being run in the interests of the public at large, and
under the municipal system the lines will be carried to places
probably for housing and other purposes at cheap fares where the
company would not care to go. In the other case the tramway is
being run entirely in the interests of as large a dividend as pos-
sible— two different ideals.

Mr. HEALY: The statement has been made to this Committee
that people in private business are beginning to think that where
municipal trading is introduced it is a good place for the private
companies to keep out of, and one of the reasons given was that
municipalities were paying so much for labor that the private com-
panies could not compete.

Mr. BAKER: I do not think there is anything in that. The
municipal tramway enterprises pay the standard rate of wages, and
have better conditions than prevail where companies have a similar
enterprise. I think there is no doubt that the municipal corpora-
tions do pay more — they pay the standard rate, and instead of
having a seven-day week they give a man one day off, and a 9 or
10 hour day in place of an 11£ or 12 hour day, and wages in both
cases about equal. There comes in the benefit to the community.
You have a few more men being paid regular wages, the mouej
that these men earn in turn goes into the pockets of tradesmen.

LONDON HEARINGS. 667

Where you have men working under municipal conditions 10 hours
a day, and one day's rest in seven, you don't have so much to pay
in poor rates and in hospitals and in human wreckage. Your
humanity is better preserved. It becomes an economy 1 think in
the long run.

Prof. BEMIS : You do not think it develops a privileged class ?

Mr. BAKER: Not at all, because we do not go beyond what
any trades union would do in fixing a fair day's pay for a fair
day's work.

Prof. BEMIS : It is charged that you have no safeguard as you
have in electric lighting and gas, and therefore it might raise
wages ad libitum ad nauseam.

Mr. BAKER: We have a trades union of conductors and
drivers, and Manchester has a strong trades union.

Mr. HEALY : We find in the city of London that the omnibus
drivers work every day of the week for 15 and 16 hours a day.

Mr. BAKER: It is a very hard and very rough life. Among
them you have a great deal more human wreckage, and very shortly
you have to retire them in the poor houses, asylums and hospitals ;
and in various other ways they become a charge on you. Proper
conditions pay under all circumstances, if you work from the com-
mercial as well as from the moral point of view.

Mr. WALTON CLARK: What wages do you pay for platform
labor — motormen and conductors?

Mr. BAKER: I think they get up to 42 /- per week as their
maximum, and ?d. or 8d. an hour as a rule. Their hours are 10
per day. They begin on a rising scale. They get 5/6, 6/-, 6/6,
and 6/9 or 7/ after they have had so many years' service. It is
according to merit, time and service.

Prof. BEMIS : The Newcastle Supply Company has a very
low operating cost. It sells more electricit_y than any other com-
pany or corporation in Great Britain, or will at least in the coming
year if they do not already. The question has arisen, is that fairly
typical of private ownership in Great Britain, where we of course
know that other companies, private companies, have not grown as
fast; but the question is, is that due to parliamentary restrictions
or lack of a field for selling electricity? Or is it simply the fact
that the Newcastle Company is exceptionally enterprising and is
not perhaps fairly typical of private companies? If it is typical
it means more of course than if it is exceptional.

Mr. H'AWES : There is no doubt whatever that the Newcastle
case is an exceptional one. It is a very special area of supply, that
is to say, it gets an excellent diversity of load. It has a railway
suppty, the docks and all the shipyards of the Tyne. It also has a
supply of power to a very large number of chemical works on the
Tyne, which take supply about 24 hours a day. It further has a
tramway supply. It has again a bulk supply to smaller concerns,
and in addition to all that, it has the great advantage of having the
lighting business of half the city of Newcastle. The Newcastle
Coinpany is controlled by extremely energetic engineers and di-
rectors.

668 NATIONAL CIVIC FEDERATION.

The CHAIRMAN: Is there any reason why there should not
be the same diversity of supply in other places, as on the Clyde
for example.

Mr. HA WES: There are a few places in the Country where
you can get somewhat similar conditions, but comparatively few.
London is one on the banks of the Thames and Clyde is another;
Liverpool might be another case.

The CHAIRMAN : How about Manchester ?

Mr. HA WES: They are doing well — not perhaps so well as
Newcastle. I would like to say this as to Newcastle: In the old
days when they were a lighting company and restricted to half the
city of Newcastle, they were able to pay excellent dividends rang-
ing up to 8 per cent., and at the same time to preserve their assets
by setting aside a substantial sum for depreciation. Since they
became a big power supply company they have only been able to
maintain their dividends, not at the ordinary rates they used to
pay, but at a much lower rate, by practically neglecting the de-
preciation fund. Now there has been a great glamor thrown over
this Newcastle company's operations. But to my mind, after care-
fully studying their records, if they do not soon make it their
practice to establish a substantial depreciation fund for protecting
their plant, etc., they will in a few years be in the condition of
some of the other power companies, having to face the problem of
reconstruction with no adequate depreciation or renewal funds.

Prof. BEMIS: Now as to the Clyde. The city of Glasgow did
not try to reach that field apparently, or did not reach it, but left
it to a private company to do so. Why was that? Is Glasgow to
be criticised for not having got that business or are there other
conditions that made it more difficult for Glasgow than for a
private company farther down the Clyde to do it ?

Mr. HA WES : Yes, I think so. The service is dependent upon
quite an artificial boundary line, that boundary line being the area
of the municipal Borough. All our corporations (cities) have had
to restrict their energy and their services to their own boundaries,
because to go outside causes serious questions of local self-govern-
ment. It is easier for a company. Where any service overlaps
several areas under our existing local governing laws it is easier for
a company to obtain the powers to carry out those services than
for one central authority.

Dr. MALTBIE: Do you know whether it is true that Parlia-
ment more reluctantly gives a. municipal corporation the right to
go outside of its Borough in the case of electric lighting than it
does a company ?

Mr. HAWES: That is so. When powers were granted years
ago to the municipalities they were actually restricted to their own
borough boundaries.

The CHAIRMAN : I think it is a very important social ques-
tion. If not a mere fault in your law then it makes an inherent
disadvantage in municipal ownership.

LONDON HEARINGS. 669

Mr. HAWES: It does to the extent that you are restricted
by this official boundary line.

The CHAIRMAN: Do you think it is merely in the law?
Could the law be changed?

Mr. HAWES : Undoubtedly.

The CHAIRMAN : To an American the situation that you have
in London is simply ludicrous on the subject of electric light. It
is the most absurd situation I have seen, but it is simply due to
the law.

Mr. HAWES : It is ; yes. If our British Parliament could go
back and re-arrange electric lighting matters it would grant powers
and privileges entirely irrespective of the question of boundaries.

The CHAIRMAN: How can you do that on a basis of mu-
nicipal ownership? If you grant powers, who are you going to
grant them to ?

Mr. HAWES: In the first place you must make the Mu-
nicipal Authority cover sufficient ground to give it a proper electric
supply.

The CHAIRMAN : Can it be done ?

Mr. HAWES: Yes, because every local governing authority
has the right to go to Parliament to extend its boundaries and in-
corporate others.

The CHAIRMAN: Take the neighborhood of Manchester —
would not those people outside look with jealousy upon the corpora-
tion of Manchester coming in?

Mr. HAWES: They would undoubtedly. There has only
lately been a case where Liverpool tried to acquire Bootle. Bootle
fought against the incorporation and said it could do better for its
own residents in its district than the Liverpool corporation could
do for it.

Prof. PARSONS: Is it not a fact that Manchester has made
agreements with neighboring authorities to supply them with elec-
tricity ?

Mr. HAWES : Yes, it has with authorities that would be re-
luctant to supply themselves.

The CHAIRMAN: How do you municipal ownership people
hope to overcome that difficulty?

Prof. PARSONS: Is not the example of Manchester an illu-
stration of the way in which it can be done ?

Mr. HAWES : Yes, one, but it does not get over the difficulty
where separate undertakings have been established. That is a very
serious question.

The CHAIRMAN : Have you any program for that ?

Mr. HAWES : I do not like to express opinions on that point,
because this matter is one on which I may be called upon by one
side or the other to express opinions in Parliament or before the
Parliamentary Committee, and one has then seriously to consider
the problem represented by local circumstances. But I think prob-
ably the difficulties would be overcome by a combination of mu-
nicipal authorities in any given district, that is to say, by the

670 NATIONAL CIVIC FEDERATION.

creation of what we might term a joint Committee of Control.
Having the control of electric supply or tramways of a given dis-
trict, the Committee to report to the Borough Councils periodically
as to the duties they were carrying out and the results.

The CHAIRMAN : Something on the order of your water
Boards ?

Mr. HAWES : Quite so. All the difficulties will be overcome
and are being overcome by the establishment of joint Boards. I
have in mind the one joint Board that is operating now in the
Stalybridge-Hyde-Dukenfield-Moseley District in Lancashire, that
probably indicates the line by which this " area " problem will be
solved.

Prof. PARSONS : Will a company get the right to run tram-
ways and electric light and all these things outside through a
number of municipalities more easily than a city like Manchester
could get the right? Would the municipalities outside fight the
city more than it would the company ; is that what you say ?

Mr. HAWES: No matter where the movement comes from,
from one of the central municipal authorities or from a company,
it will probably face opposition by all the others until such time
as they can make mutual arrangements.

Prof. PARSONS: Have you any concrete facts to show that
local authorities will refuse to co-operate with municipal plants in
this way?

Mr. HAWES : I do not think they would ; I think they would
be inclined to co-operate with them and assist them, if they had
their own district protected. But as I know very well, and we all
know, each little local governing authority has very great regard
for its own importance.

Prof. BEMIS: You say that owing to the action of Parlia-
ment or other reasons, it is harder for a municipality than a com-
pany at present to get extensive rights over large areas.

Mr. HAWES : I do say that as exemplified by these power
Bills that have been passed by Parliament. A municipality enters
into what is called a trading concern in which a loss may be in-
volved. The people in its own area are apt to say that the people
in the outside areas ought to stand some of the risk that they them-
selves would have to bear in the event of a loss being made. Now
there seems to be no provision at present by which a municipality
extending its services into outer districts could make the outer
districts responsible for any losses which it might incur in the
early stages of that undertaking, that is the difficulty.

Prof. BEMIS: You spoke of the Clyde district as being per-
haps as good as the Tyne. Now what other supply companies —
there are eight in all I believe — what other supply companies have
districts nearly or quite as good as the Tyne and the Clyde?

Mr. HAWES: I would not say quite as good; I would except
the case of London, but that is split up into some twelve com-
panies.

Prof. BEMIS: But there are other companies in Wales and
Lancashire ?

LONDON HEARINGS. 671

Mr. HAWES : Oh ! Power companies, yes ; but in not a single
case is the area of supply so good as that of Newcastle.

Prof. BEMIS : Have they displayed as much energy as New-
castle in using the opportunities they have had ?

Mr. HAWES: I do not think so, but they have not the same
opportunity. The South Wales company, which has a fair area of
supply — finds itself at present in a very serious financial position,
as it is unable to develop business enough to get a return upon its
capital.

In some cases the local authorities have the supply in their
own areas, which are included also in the South Wales area, but
their way was to supply electricity on a large scale to collieries and
very large factories and manufacturing concerns. They find, how-
ever, that these collieries and local manufactories have their own
plants, and they prefer to make the energy themselves rather than
take it from the power company.

Dr. MALTBIE: The current is supplied in Newcastle at a
very low rate, is it not ?

Mr. HAWES : Yes, because of the enormous output they have
got and their great diversity of load. They distribute a lot of
power at very high pressure and as a consequence avoid electrical
losses to a very large extent. In that way they are able to convey
a current of ten thousand volts direct from their high pressure
feeders into the shipbuilding yards, with small sub-stations, and
avoid what would otherwise be heavy electrical losses.

Prof. PARSONS : What would you think if you were told that
they could make current at their main station at .lid. or .13d.,
covering coal, labor and materials?

Mr. HAWES: In our scheme that we put before Parliament
this year — the London County Council — we estimated that we
could produce electricity at a fuel cost of about .15d. per unit; and
the Works cost, including coal, water, stores, labor and repairs at
.197d. per unit.

Mr. WALTON CLARK: What is the Tyneside output?

Mr. HAWES : I think it is now about 32 millions— 40 millions
made and 30 millions sold in the two stations.

The CHAIRMAN : Is there any area in this country that has a
larger output than that?

Mr. HAWES : Oh, yes ! London jointly, very much larger
than that. Liverpool has a larger output than that of Tyneside.
Liverpool's output for the year ending December, 1905, was 32
millions, Manchester's was 33 millions.

The CHAIRMAN: What is the population of these districts,
and of Newcastle?

Mr. HAWES: Manchester, 698,000; Liverpool, 604,000; New-
castle would run to a million I should think; it involves so many
local districts. The area of supply by the Newcastle company in-
volves other companies to which it gives a supply in bulk, which is
difficult of computation.

Prof. PARSONS : What would be the cost of coal in the Lon-
don County Council estimate yon have given us?

672 NATIONAL CIVIC FEDERATION.

Mr. HAWES : We reckon it to be 9s. a ton delivered into the
boilers. Tyneside coal is 5s. a ton, and they have to incur the
delivery charges into the boilers.

Mr. HEALY: You use a poorer grade of coal than what is
used at Newcastle.

Mr. HAWES: No, I think it is about the same; Newcastle
avoids the cost of transit from the Tyne district to London because
they have coal at their back door.

Prof. BEMIS : Comparing the use of electricity for light and
power per capita here and in Boston and most American cities, we
find you use a less number of units per capita.

Mr. HAWES : We are not in it with America yet. You Ameri-
cans, I think, are more up-to-date and desire a cleaner illuminant
and a more efficient source of power than we people over here are
prepared to demand, and you insist on your factories being driven
by up-to-date means. We have been content to go jogging along in
the old fashion too long.

Prof. BEMIS: The statement is often made that electrical
backwardness in Great Britain is due to municipalization. What is
your explanation of it?

Mr. HAWES: I can hardly agree to that. I do not quite
see how we would be very much further on now if municipalities
had not dealt with the work. Municipalities in connection with
tramways only took it up in recent years. They found the com-
panies were not prepared to tackle the job on comprehensive lines,
so the municipalities undertook the task and they are now showing
pretty good headway. Similar conditions apply to electric supply.
Our early legislation in regard to electrical supply and electric
tramways certainly had a tendency to retard the growth of this
business because it applied certain restrictions to it which capitalists
in those early days would not face by risking their money. It
brought up the question of limited tenure. That was altered later
and then electric supply made very much better headway.

Prof. BEMIS: That was due then to the attitude of Parlia-
ment rather than the attitude of municipalities?

Mr. HAWES: Undoubtedly.

Prof. PARSONS : What in your experience has been the
attitude of a municipality that has a gas plant towards the in-
troduction of electric light?

Mr. HAWES : Many years ago a municipality holding gas
works would view with very great disfavor the idea of a company
coming in and getting powers for the supply of electric light. But
the position is entirely altered now, because electric ' supply is
available now in all the principal towns of the Kingdom.

Prof. PARSONS: Might that not have had some influence on
the development of electric light in the cities ?

Mr. HAWES: I do not think so. They not only had to say
"we are holders of gas works and are to oppose this company "
but they also had to make up their minds to apply for electric
powers and to carry them out. It may have had a slight effect,
but not much.

LONDON HEARINGS. 673

Mr. MOFFETT : Is it not true, Mr. Hawes, that in some cases
where the municipality has a great lot of money invested in gas
works, comparatively speaking, the municipality will advance the
gas proposition at the expense of the electrical proposition. Do you
know of such cases?

Mr. HAWES: No. I do not think that is quite a reasonable
thing to expect a municipality to do.

Mr. MOFFETT: I had got the impression that there was at
least one city we had visited where that sort of thing did obtain
within the recent past.

Mr. HAWES: I do know of a case in which the municipality
carried on a gas supply and also carried on an electric supply and
did use an unfair advantage for one against the other.

Question: You only know one instance of it?

Mr. HAWES: Yes. It has been suggested that Stafford is
another case.

Question: What, so far as you know, was the origin of these
extremely restricted measures of 1882 ?

Mr. HAWES : Mr. Chamberlain's first Act. At that time the
idea of municipal ownership of these different services which
utilized the streets was being put before the country very forcibly,
and they felt that even if powers were given to companies some
very severe restrictions should be placed upon them, and the mu-
nicipal authorities should at the same time be given the right to
come in and take possession of these undertakings.

Prof. BEMIS : Do you think their experience of having to
pay the big sums they had to to buy up the gas companies influenced
them in any way ?

Mr. HAWES : I should say so undoubtedly.

Prof. PARSONS : Eeferring to what you said about the op-
position not being very effective in the way of retardation, for the
reason that the city had to apply at the same time for rights and
had to use those rights within a limited time : — Is that conclusive
in view of the fact that they could use the right and yet make
the relation of price between electric light and gas such as to shut
out one or the other, just as they chose practically? Could not the
city get electric rights and make the price of electricity such that
the gas could easily hold the field against electric light ?

Mr. HAWES: Yes, they could — but don't. Experience is all
the other way. Electric light is being supplied by municipalities
at such a reasonable cost that it is displacing gas all over the
Kingdom. And the records of the undertakings show most con-
clusively that the municipal authorities are selling electricity to the
consumer at a much lower price than the companies taken as a whole
are doing, and they are able to do that by the more economical
method they have of producing electricity and carrying on their
undertaking than the companies as expressed by their working
expenses per unit of output. The cities sell electricity cheaper
than the companies, and produce it more cheaply on the average.

Vol. III.— 44.

674 NATIONAL CIVIC FEDERATION.

Prof. PARSONS : I did not quite catch what you regarded as
the causes enabling municipalities to charge less for their electricity
than the companies.

Mr. HA WES : I said one main feature was that their working
expenses per unit were lower, particularly the working expenses of
delivering the electricity to the consumers. The average price
charged to consumers for energy delivered by the 181 municipal
undertakings in the United Kingdom was 2.6d. per unit, and the
average price charged by the 69 companies was 3.71d. per unit.
The average working expenses per unit for the municipalities was
1.28d., and for the companies 1.88 per unit. This is a summary
of the 250 undertakings in the United Kingdom.

Prof. PARSONS : What are the items of working expenses ?

Mr. HAWES : Coal, lights, stores, wages of workmen, generat-
ing and distributing department, rents, rates and taxes, manage-
ment expenses, legal charges, office expenses, stationery and general
administration.

Question: It does not include any capital charges?

Mr. HAWES: No capital charges on either side.

Question: Does it include depreciation?

Mr. HAWES: No.

Question: What was the average output for municipalities
and companies ?

Mr. HAWES : 303 million units for the first and 118£ millions
for the second.

Prof. BEMIS: The majority of the undertakings as far as
bulk is concerned are in London, where coal and labor are higher
than in the provinces. How much of the .6d. per unit difference
in operating cost in favor of the municipal plants would be swept
away by taking account of that ? Would all of it be swept away or
only part of it by allowing for the location in London?

Mr. HAWES: It would account for only a part of it. I will
give you the figures for London undertakings, for 26 undertakings
operating in the administrative County of London. The average
price charged to consumers by the 12 municipal vmdertakings, was
3.23 pence per unit. And for the 14 company undertakings the
average price was 3.94 pence per unit. Per kilowatt delivered, in
both cases. The working expenses for London in the case of the
municipal undertakings were 1.71d. per unit, and in the case of the
company undertakings, 1.98d. per unit.

Question: To what do you attribute that?

Mr. HAWES: Well, it is very difficult to say, in detail, but
the companies should be more efficiently managed.

Mr. MOFFETT : You pay higher wages for one thing ; that
makes the explanation all the harder.

Mr. HAWES: Yes.

Question: In London the average size of the company is
greater too?

Mr. HAWES : Yes, certainly. The company undertakings de-
livered 87 million units, the municipal undertakings only 27

LONDON HEARINGS. 675

million units. There is an average of the value of representative
undertakings. I say the figures are most expressive.

Mr. WALTON CLARK: Not unless you give an analysis and
find out where the difference is.

Mr. HAWES: There is no difference. You are speaking of
the way in which the accounts are made up; there is no material
difference. The Board of Trade prescribes the form of accounts
which all these undertakings have to conform to, and every London
Borough Council's accounts are subject to most rigorous scrutiny
which is quite as severe as that which is applied to company under-
takings.

Mr. WALTON CLARK: If that is so, why is it costing the
companies so much more ?

Mr. HAWES: I put it boldly; I say the municipal under-
takings are worked more efficiently. One material fact is that the
municipal undertakings have paid more per kilowatt of plant than
the companies.

Mr. WALTON CLARK : You said there was no interest charged.

Mr. HAWES : True, but it will have some effect before you
come to consider the question of capital charges.

Mr. WALTON CLARK: I mean it will not affect the cost of
operating.

Mr. HAWES : I do not know about that. If you have a com-
pany giving out plant to its friends you are not likely to get such
a high class of plant as if you have it bought in the open market
under a vigorous specification.

Mr. WALTON CLARK : My experience is that the companies are
capable of building plant as cheaply as a good plant can be built.

Prof. PARSONS : Is it not true that a good many small places
are supplied by the municipalities and are so small and un-
profitable that companies would not undertake them?

Mr. HAWES : Yes. I firmly believe that.

Prof. BEMIS : How can we get the fact in regard to the claim
that four Parish Councils of London which own their electric
supply have dust destructors and do not charge themselves suffi-
cient for fuel, but throw it into that account and make the Destruc-
tion Department pay for it — that is a charge made with regard to
4 out of 12 or 16.

Mr. HAWES : It was in the case of Haclmey and I speak with
some authority there, because we are the consulting engineers,
and I represented my firm and I know that we pay the Public
Health Department for the refuse exactly on the same basis as we
should pay for coal if we used coal ; in fact, we give them a slight
advantage. The other cases are Fulham, Southwark and Shore-
ditch. I have not such complete knowledge of those undertakings
as I have of Hackney.

Prof. BEMIS: It was claimed by one party that Southwark
was losing money on its undertaking, so it had to depend on the
rates which were paid by the city of London company. Now it is
said that Southwark refused to buy current of the city of London
at a penny a unit less than it could make it for.

676

NATIONAL CIVIC FEDERATION.

Mr. HAWES: I think that offer was made for public light-
ing only.

Question: I believe it was made for supplying the County
Council tramways — that is the way I understood it.

Mr. HAWES : I am sure it is not so. Several of the London
Supply Companies jointly are supplying the London County Coun-
cil with energy in bulk, but they are charging them at a pretty
good rate for it.

Question: What are they charging?

Mr. HAWES: It is somewhat confidential information from
the companies' point of view. They do not like it known what they
are charging. But I may say that the figure is under 2d. and it is
more than l£d.

Question: Is it the practice where a Local Authority is
operating an electric light and tramway undertaking, to charge the
tramways a high price for electric current with the result that the
electric light undertaking shows a good profit?

Mr. HAWES : No. The municipalities that own both services
are charging most reasonable rates indeed for traction energy. I
know of one case such as you speak of, but it certainly is not
general.

KECORDS OF ELECTRIC SUPPLY UNDERTAKINGS.*

(Westminster, May, 1906.)

Summary of Financial Results of London Electric Supply Under-
takings for the Year 1903-1904.

Total
12 Municipal H Company 26

Under- Under- Under-

Particulars. takings. takings. takings.

Capital outlay £2,877,297 £11,499,532 £13,376,829

Board of Trade Units sold 27,271,640 87,198,560 114,470,200

Gross Receipts from current sup-

£367,309
£6,305
£373,614
£194,040

£1,430,706
£71,034
£1.501,740
£720,969

£780,771

£1,798,015
£77,339

£1,875,354
£915,009
£960,345

plied

Rentals and other receipts

Total receipts from all sources. .

Working Expenses

Gross Profits £179,574

Allowed for protection of Capital

Assets £46,063 £169,793 £215,856

Net Profits for Interest and Div-
idends £133.511 £610,978 £744,489

Average Price per unit charged

to consumers 3.23d. 3.94d. 3.77d.

Average Working Expenses per unit 1.71d. 1.98d. 1.92d.

Amount of Gross Profits per £100

of Capital 6.24% 6.79% 6.68%

Amount allowed for Depreciation
of Sinking Fund per £100 of
Capital 1.60% 1.48% 1.50%

Amount of Net Profits per £100

of Capital 4.64% 5.31% 5.18%

Total Capacity of Plant in Kil-
owatts 30,911 105,551 136,462

Capital spent per K. W. of Ca-

pacity £93 £109 £105

* Submitted by Mr. G. W. Spencer Hawes.

LONDON HEARINGS.

677

Summary of Financial Results of Provincial Electric Supply
Undertakings for the Year 1903-1904.

169 Municipal 55 Company
Under- Under-

takings.
£4,571,470
31,349,393

Particulars. takings.

Capital Outlay £23,636,444

Board of Trade Units Sold 276,315,736

Gross Receipts from current sup-
plied £2,927,072 £401,618

Rentals and other receipts £82,824 £40,276

Total receipts from all sources . . £3,009,895 £441,894

Working Expenses £1,422,994 £205.296

Gross Profits £1,586,902 £236,598

Allowed for protection of Capital

Assets £573,545

Net Profits for Interest and Div-
idends £1,013,357

Average Price per unit charged
to consumers 2.54d. 3.07d.

Average Working Expenses per unit 1.24d. 1.57d.

Amount of Gross Profits per £100

of Capital £6.71 £5.18

Amount allowed for Depreciation
of Sinking Fund per £100 of
Capital £2.43 £0.85

Amount of Net Profits per £100

of Capital £4.28 £4.33

Total Capacity of Plant in kwts. . 319,033 42,952

Capital Spent per K. W. of Ca-
pacity ". £74.1 £106.4

Total
224

Under-
takings.
£28,207,914
307,665,129

£3,328,690
£123,100
£3,451,790
£1,628,290
£1,823,500

£38,778 £612,323
£197,820 £1,211,177

2.60d.
1.27d.

£6.46

£2.17

£4.29
361,985

£77.9

Summary of Financial Results of Electric Supply Undertakings,
London and Provincial Combined, for the Year 1903-1904.

Total

181 Municipal 69 Company 250

Under- Under- Under-

Particulars. takings. takings. takings.

Capital Outlay £26,513,741 £16,071,002 £42,584,743

Board of Trade Units Sold 303,587,376 118,547,953 422,135,329

Gross Receipts from current sup-
plied £3,294,381 £1,832,324 £5,126,705

Rentals and other receipts £89,129 £111,310 £200,439

Total receipts from all sources. . . £3,383,510 £1,943,634 £5,327,144

Working Expenses £1,617,034 £926,265 £2,543,299

Gross Profits £1,766,476 £1,017,369 £2,783,845

Allowed for protection of Capital

Assets £619,608

Net Profits for Interest and Div-
idends £1,146,868

Average Price per unit charged

to consumers 2 . 60d. 3 . 71 d.

Average Working Expenses per unit 1.28d. 1.88d.

Amount of Gross Profits per £100

of Capital £6.66 £6.33

Amount allowed for Depreciation
of Sinking Fund per £100 of

Capital £2.34 £1.30

Amount of Net Profits per £100 of

Capital £4.33 £5.03

Total Capacity of Plant in kwts.. 349,944 148,503

Capital spent per K. W. of Ca-
pacity £75.8 £108.2

£208,571 £828,179
£808,798 £1,955,666

2.91d.
1.45d.

£6.54

£1.94

£4.59
498,447

£85.4

•
MEETING OF COMMITTEE ON INVESTIGATION

At St. Ermin's Hotel, London, June 28, 1906
To hear Leading British Opponents of Municipal Trading

Prof. Goodnow was chosen to act as chairman, and the fol-
lowing gentlemen were heard :

LORD AVEBURY (Sir John Luboock), F. R. S., D. C. L.,
Messrs. EMILE GARCKE, Managing Director British Electric Trac-
tion Co.,
WILLIAM L. MADGEN, Managing Director Brush Electrical

Engineering Co., Ltd.,

CHARLES CHARLETON, Chairman London Chamber of Com-
merce,

SYDNEY MORSE, Chairman Municipal Trading Committee,
London Chamber of Commerce.

The following is a fairly full resume of the hearing :

Mr. GARCKE (opening) : I am Managing Director of the
British Electric Traction Company. I have been interested in
many concerns in this country for the last twenty- three or twenty-
four years, and we have been very largely concerned in doing the
pioneer work of the industries, always, I am sorry to say, under
difficulties of a legislative and municipal character; and we have
been surprised on coming into contact with the way in which local
authorities followed up the business; but the question is so large
that it is very difficult to deal with it satisfactorily in a general
way, and to deal with it in a particular way necessitates the selec-
tion of special points.

Prof. BEMIS: You spoke of the difficulties that were put in
the way of private Companies by legislation. I think that it might
be well to know something of this.

Mr. GARCKE: I think on that particular point Mr. Morse
can speak with more authority than anyone.

Mr. MORSE: With regard to tramways, there are two facts:
The Act of 1870, which was to facilitate the construction of tram-
ways, and it made the consent of the Local and Rural Authorities
a condition precedent to the granting of the powers. The standing
orders of the Houses of Parliament adopted the same principle,
but went further because they made the consent of the Local
Authority a precedent to the Bill. It cannot be brought before
Parliament without the consent of this Authority. Unfortunately

LONDON HEARINGS. 679

here our Local Authorities have not acted as if they were in a
judicial position, JDut bargained and sold for this consent. The
Act of 1870 had one protecting element in favor of the Companies,
namely, the Local Authority could not work a tramway. But just
about the time when electric traction was coming in they were
given power to work, and it became a question of whether it should
be worked by a Company or not, and it made the thing much
harder, because the Local Authority had to say whether they should
have the power at all. Our Local Authorities deal with small
areas. You cannot go over even a few miles without coming
through the areas of many Local Authorities; but if you got the
consent of Local Authorities for two-thirds of your proposal, it was
not essential to get the remaining third.

A further point of the Tramways Act was that at the end of
twenty-one years the Local Authority should have the right to pur-
chase at the then value of the undertaking represented by merely
its plant and machinery ; and the principle applied to this purchase
has been this, that when it purchases under the provisions of the
Act the price is determined by what it would cost at the date of
purchase to put down the undertaking which exists, less deprecia-
tion for the number of years from date when it was put down, so
that you get a depreciated cost.

With regard to electric lighting, when the Act of 1882 was
introduced, the same position was taken up by the Legislature.
They gave the Local Authorities the right to work the electrical
undertakings, or to purchase any undertakings at the end of
twenty-one years on the then value of plant and material. That
was such a deterrent that nothing was done. In 1888 it was
amended to forty-two years against twenty-one, but unfortunately
the consent of the Local Authority was made a precedent condition
which was not the case in the Act of 1882. Again the Legislature
has interpreted the Acts of 1882 and 1888 as giving the preference
to the Local Authority to start electrical undertakings, and the
consent has been a matter of bargain and sale. Any price of any
such undertaking payable to the Local Authority was, in effect, to
be paid by the public, and it makes the burden on the public
heavier ; for success entirely depends on whether the public want it.
That about states the legislative position.

Prof. BEMIS: Was it the Act of 1888 that made the reason
necessary in the case of tramways ?

Mr. MORSE : No. The Act applied to electric light.

Prof. BEMIS : If you went through the areas of two or three
Local Authorities with the wires you would need the consent of
two-thirds of those Authorities?

Mr. MORSE: Of all. But there is power in the Board of
Trade to dispense with the consent, but in early days they very
seldom exercised that power.

Prof. BEMIS: Since when?

Mr. MORSE: In 1898 the power schemes first came up, and
the question was then put by Parliament to a Joint Committee of

680 NATIONAL CIVIC FEDERATION.

the two Houses to see whether there was such difference between a
power scheme and an ordinary domestic scheme as would require
different conditions for the power scheme; and the Committee re-
ported that in the case of power schemes other conditions should
apply. It reported, in fact, in favor of getting rid of the condi-
tions as to consent and purchase altogether, but that has not been
done as yet.

Mr. GARCKE: Many Local Authorities in early days applied
for lighting orders not with the intention of carrying them out,
but with the object of keeping the Companies out of the district,
especially when they were owners of the gas works.

Mr. MADGEN : The Board of Trade dispenses with the con-
sent very unwillingly, because the Local Authorities have great
political influence. There is a body known as the Association of
Municipal Corporations, consisting of the Town Clerks of mu-
nicipalities and others. If one district is affected by the Board of
Trade dispensing with the consent, a circular is sent round begging
them to bring pressure to bear through local Members of Parlia-
ment, and the result is that you have a huge municipal machine
opposed to electrical expansion.

Mr. MORSE: Under our provisional orders you can supply
power for light and power, but in rather a limited district. When
the proposals were made for supply in bulk a special Committee
sat in 1898, and since then power was given to supply in bulk;
but first it was limited to a supply to authorized distributors for
electric lighting or traction. In some cases power can be supplied
to the consumer.

Mr. GARCKE: Wherever a Local Authority has already ob-
tained an order, the Local Authority has been successful in getting
its area cut out of a power company's area. Lancashire, for in-
stance, obtained an Act of Parliament to supply power in a large
district. But Local Authorities, which had obtained a lighting
order, were eliminated from the power in the area, like taking a
plum pudding with all the plums cut out. There are a large
number of districts where the Local Authorities have done nothing,
and the Power Company thought they should negotiate with a view
to bringing those areas into their supply area, with the result that
Lancashire has five large plants erected and only one is supplying
power — there is nevertheless a plentiful demand for electricity in
these districts, so much so that I have been able to get them to
sell me one of their plants because they cannot get a load. The
Local Authority will not buy in bulk, and will not supply it to the
consumer.

Mr. MADGEN : The Local Authorities say " We have put down
plant with public money, and there must be no competition."

Mr. WALTON CLARK: We cannot obtain information of dis-
tricts. They will not let others come in ?

Mr. GARCKE : The Chairman of the Lancashire Company will
give you this information.

Mr. WALTON CLARK : Has this appeared in any of last year's
lists?

LONDON HEARINGS. 681

Mr. MORSE: The Bill last year was before Parliament and
in the proceedings on that Bill a list was drawn up and it gives all
the information.

Mr. GARCKE : The Bill is " The Administrative County of
London Electrical Supply Bill."

Mr. MORSE : In the House of Lords. Mr. John Kennedy, of
Abingdon street, Westminster, has the Bill in hand.

Mr. GARCKE : This was a tramway scheme. We had obtained
the consent of all but one. This last saw the strength of their
position. We could not complete the scheme without their approval,
and the Mayor said:» "These gentlemen cannot complete their
scheme without our consent. They must understand it is our op-
portunity to bleed them." But we left them alone. The result is
that their town is isolated. Parliament put on us the necessity to
get their consent. They would not give consent unless we pur-
chased the electrical energy from their electrical station, and the
prices would have made the working of the lines unremunerative ;
and the price at which we were to be supplied was 3d. a unit. We
brought it down to l£d., but as that would have set a precedent for
the price to be charged — a fair price would be Id. or l^d. — we
would not pay. Wolverhampton was the place. I have made the
same statement before the Municipal Trading Committee of the
House of Lords.

Mr. W. J. CLARK: With regard to the difficulties that you
have recited as to Local Authorities keeping the community from
having power, does it not also act in this way: If you have your
station at a certain point and you start to run your mains, town
A keeps you out, and even though you have secured a fair number
of customers the burden of expense of reaching them for mains
runs 3, 4, 5, 6 or 8 times what it would in America in similar
conditions; is that not so?

Mr. MADGEN : The expense of mains is very much larger than
in America.

Mr. MADGEN (in reply to question by Chairman) : Towns
will not let them in. You will see that the incursion of a governing
body, such as a municipality, into trading has very curious effects.
Wolverhampton stipulated to sell their current at an impossible
price. In the case of a company they could not use that power
because the municipality is in the electrical supply trade. Another
case is that of Newbury, where they own the gas undertaking.
There again, because they were in the gas trade, I could not get
the electric lighting unless I would contract that my price would
not be below their figure.

Mr. WALTON CLARK : Has that appeared anywhere ?

Mr. GARCKE: Yes, but I cannot mention the name. But a
very important place in the Midlands, where we have the rights,
a point has arisen where the Local Authority own the gas under-
taking, and they are seeking that we shall not bring the price of
electricity below a point that would hit their Gas Works.

682 NATIONAL CIVIC FEDERATION.

Mr. MOESE: When the Mond Gas was in progress Walsall
town opposed, and passed a resolution in which they said that if the
Mond Gas was brought into Walsall it would result in the mu-
nicipal supply being run at a loss, and they would not allow it.

Mr. GARCKE : The Southend Corporation owns tramways, and
for some time past a Motor Omnibus Company has tried to establish
a service. The Southend Corporation, as owners of the tramways,
have prevented the Motor Omnibus Company from plying for
hire. The Omnibus Company have run their omnibuses, but they
have taken no payment for the fares but sold tickets.

Mr. MADGEN: Take the case of Birkenhead. Birkenhead is
one side of the Mersey and Liverpool on the other. The railway
between them runs through the Mersey tunnel. The Birkenhead
municipality owns steamers, running to Liverpool, and have estab-
lished a tramway service in Birkenhead running in conjunction
with the steamers, and avoid as far as possible giving facilities for
the interchange of passengers between their tramways and the
railway which competes with their steamers. The Railway Com-
pany, in order to counteract that, sought powers to run a service
of motor omnibuses to bring passengers to the railway station on
the Birkenhead side. Thus you will see the municipality's having
gone into the Steamboat Trade has had the effect of preventing
the railway company's affording a service of motor omnibuses. The
municipality has obviously misused their powers, and the position
is Gilbertian, but they have the weight in Parliament of the Asso-
ciation of Municipal Corporations.

Mr. MOESE : In our country the Local Authorities are the
licensing authorities for hackney carriages, and if the Local Au-
thorities axe running their own they do not like to support their
rivals' carriages.

Prof. PARSONS : What would a private company do if it were
in the position of the Municipality ?

Mr. GARCKE: A Company possessing the same authority
would not regard with indifference the advent of a competitor, but
they would not possess the veto upon the competitor coming in.

Prof. PARSONS: I understand that; but is it any particular
iniquity attaching to the Municipality, or would a private individual
do the same?

Mr. GARCKE: It would endeavor to obtain the same terms,
but they do not combine the judicial capacity with the trading
instinct, therefore, the private Company doing its best to obstruct
the competitors' incoming would be controlled by the Local Govern-
ment, and we have had cases of that kind where the Tramway Com-
pany would object to a competitor coming in. But then we go to
Parliament and would be heard, but would not have the power to
obstruct a new comer. In the other case they have the power to
prevent you going to Parliament. We cannot go to the Board of
Trade without the consent of the Local Authorities, if the Local
Authorities exercise their veto ; consequently, to give Local Govern-
ing bodies the powers against competitors is much more detrimental
than if the power were in the hands of Companies.

LONDON HEARINGS. 688

Prof. COMMONS: Need you have rights under these Acts in
the locality ; are their rights exclusive ?

Mr. GARCKE : No, they confer no monopolies, but in the case
of tramways they are practically monopolies. This is shown in
the case of the power station in London. All the powers were
obtained for forty-two years (they have 25 years to run). They
were confined to small municipal areas which are not large enough
to admit of economical supply. It must be done from one centre,
and last year a Bill was started to supply in this way. They did
not get their Bill. This year the London County Council promoted
the same scheme which last year they opposed, not so mature a
scheme but nevertheless it will compete with the existing Com-
panies, and, unless some clauses are put into this Bill of a protec-
tive character, the London County Council will be in a position to
utilize those powers to depreciate the value of the Company's con-
cession, and they will be at the mercy of the London County
Council.

Mr. SULLIVAN : Then it will be best to let the London County
Council get it ?

Mr. GARCKE: No doubt the effect will be, if they get the
Bill, that the Company will not be able to spend more capital,
because they will have no security of tenure and will not anticipate
being fairly treated by the London County Council.

Lord AVEBURY: Municipalities have most important func-
tions. The same body cannot govern a trade. If you once mix up
the question of trading and the question of government it will be
very prejudicial to both. All monopolies are bad, but those of mu-
nicipalities and governments are worst of all. In the case of the
supply of water in London, it was managed by Water Companies.
Then it was controlled by the London County Council, and they
were very strict in keeping up the purity of the water, but now you
have no outside authority to guard the purity. The development of
tramways and electric lighting has, in my judgment, been much
retarded. Personally my interests are with those of the public, and
my main action all through has been in the interests of the public.
It is also very undesirable to increase unnecessarily the number of
municipal^ employes. Progress in private enterprise has been and
will be much checked by municipal trading. Many years ago I
took a part in the introduction of electric lighting. My colleagues
were fully persuaded that towns that worked the gas themselves
looked on us as dangerous opponents. On the contrary, when -the
Gas was worked by Companies they gave every facility. One
gentleman has asked if a private Company would not do the same.
It might if it could. The Municipal Authority can, and that is
where the difference comes in.

Prof. COMMONS: Supposing you are going into a locality
where there is a private supply company having the field, not. a
gas company, but an electrical company, would not you find it
necessary to make some arrangement that the private company
purchase, or some arrangement so that they should not oppose it ?

684 NATIONAL CIVIC FEDERATION.

Mr. GARCKE: Some reasonable arrangement with them. In
the case of a Local Authority you have no opportunity of making
a reasonable arrangement because they will not be reasonable.

Mr. MORSE : A competitor has not a locus standi to oppose as
a right, only a discretionary locus standi. The Committee of
Parliament may say, " We think you may oppose." But the Local
Authority has a veto.

Mr. MORSE : A Company carrying on a business in a town, a
second Company wanting to do so in the same town, they are like
two ordinary shopkeepers. If a man can get a shop he can open a
business. If the Local Authority is the competing trader, the Au-
thority can veto it.

Prof. PARSONS : Do you believe in competition as the solution
of this public service problem ?

Mr. MORSE: I do not think competition is fair when the
Local Authority raises capital on the rates and can pay losses out
of the rates. I believe in Free Trade in these matters. Those who
go into the trade ought not to be competed with unfairly by others
being put in a different position.

Prof. BEMIS: Existing tramways have rights. Would you
allow others to come and tear up the streets and put in wires
and so on ?

Mr. MORSE : Subject to its being fair.

Prof. BEMIS : Historically that has ceased to exist in the case
of Gas Companies.

Mr. MORSE: Under strict regulation as to price and divi-
dend, etc.

Prof. BEMIS : You think it right ?

Mr. MORSE: I think it in the interests of the public to see
that they get it at the lowest price, if there is no competition
allowed. I think there are objections to having half a dozen sets
of mains in the street if it can be all done on the best terms to
the public by one, but where there is actual or a possible competi-
tion it is better to have the right to put in a third person.

Prof. PARSONS: Were you speaking of lighting as well as
trams ?

Mr. MORSE : In the Electric Lighting Act consent is a prece-
dent condition.

Prof. PARSONS: Cannot you go direct to Parliament?

Mr. MORSE: You cannot go direct to Parliament. I cannot
say there is an Act saying you shall not, but the Government has
always said having given the administration to the Board of Trade
it will not introduce a Bill for the same thing. A power company
was entitled to take a limited supply to light its own factory, to get
over the difficulty of A Company having to go to B Company for
its light.

Mr. MALTBIE : No private Bills ?

Mr. MORSE: They are always stopped by the officers of the
House if introduced. If the Local Authority brings in a Bill for
forty or fifty different points, it may get some provision for electric

LONDON HEARINGS. 685

lighting into the Bill, but it is an exception. But in the case of
tramways a Bill introduced into the House of Commons has to
prove compliance with the Standing Orders before reading a first
time in the House. But with regard to tramways, one of the
Standing Orders is, that the Road Authorities shall have given con-
sent, and until that is proved the Bill is not allowed to proceed.
An Act of Parliament is a very expensive matter. The smallest
Act of Parliament would cost £1,000; a Provisional Order costs
£300 at least, but the Provisional Order procedure is much less
expensive than a Bill.

The CHAIRMAN : Is it more expensive in the case of a Mu-
nicipality ?

Mr. MORSE: There is no difference; the fees are the same
to each.

Mr. CHARLTON: I speak here not as the Chairman of the
London Chamber of Commerce, but as an individual and es-
pecially as a manufacturer. The main point before me as a manu-
facturer is this, that I do not think any of us in this League seek
to interfere with what are the legitimate functions of a municipal-
ity. I ask anyone at this table: Which body is more capable of
carrying out engineering, technical, various industrial works, a
body of men who have been brought up to that business, who have
gone through a particular training since boyhood, and gone through
the various stages of the business before they could take a leading
part in it, who have put money into it and backed their opinion
with their money; or a body of men who are elected year by year,
who have businesses of their own to look after, and who have no
responsibility beyond their period of office — the persons who have
been brought up to it, or those who are occupying temporary posi-
tions on public bodies?

Then there is the question of responsibility. Those who are
Directors of large concerns are responsible to shareholders. Mem-
bers of local bodies frequently attend meetings after a day's work,
and having no responsibility and no capital invested whatever, yet
spend millions out of the rates, and if anything goes wrong you
cannot get at them. The answer to that of course is, that the
remedy is in the hands of the ratepayers. But the ratepayers do
not always exercise their rights. Then the question of voting —
we have fought against employes of corporations (companies) hav-
ing a vote; I do not think any man should have a vote who is so
employed. Men elected for a short time to municipal bodies are
distinctly out of place if they indulge in municipal trading. To
give one or two concrete instances — at Brighton, where I happen
to live — we have Brighton and Hove. A short time ago the
British Electric Traction Company had a short piece of line to
loop up through the municipality of Hove at the back; it would
have interfered with no one, but it crossed the borough. The mu-
nicipality put in an opposition to their Bill in the House; and
brought in a Bill in which they proposed to lay down tramways
which would have ruined the municipality, because it is a purely

686 NATIONAL CIVIC FEDERATION.

residential neighborhood. In this case the ratepayers were alive
to their interests ; on a poll of about 7,000 we beat the Municipality
by over 1,000, and they had to withdraw their Bill. This shows
that ratepayers can control these things if they choose to. Then
there is the Brighton Tarmac case. On that I will not give an
opinion because it is still sub judice; but the reports of that case
are a very good object lesson; I would like you to read them. In
the case of the South Essex Water Works, the Company was formed
in 1861 under an Act of Parliament which gives the safeguards
Mr. Morse has just mentioned to the public in schedule rates, etc.,
and which prevented this company from doing anything against the
interests of the public generally, and of course all the capital was
arranged in the Act. In due course of time, with the development
of the district, which was rapid and large, the Company required
to go to Parliament for fresh powers. They did so in 1882, and
obtained their fresh capital and went on again till about 1900 or
so, when it was necessary to repeat this operation. They wanted
further powers and a larger district. They went again for a third
act. A collection of local bodies who imagined they could do the
work better than those who had been at it since 1861, combined to
take over the water company, and opposed their Bill, although the
company had fulfilled its statutory obligations. The Bill went
before a committee of the House of Lords and was thrown out on
a pledge by these combined councils to bring in a Bill to cover the
same district in the following session. Both Bills came before
Parliament — they were both of a very heroic nature — they were
brought before a committee of the House of Lords, but were so
intricate and so difficult that they were both thrown out, and in the
meantime the ratepayers became alarmed at the amount of money
being spent. In the third session something in the nature of a
compromise was arrived at, and the water company got their Bill.
All that time the district was crying out for more water. The
result was that the Bill dragged through three years before the
company got it, and I think the total cost to all parties was nothing
less than £50,000, of which the largest proportion fell upon the
ratepayers.

Prof. PARSONS: If I might ask Mr. Garcke one question,
what is his idea of the best plan for dealing with the electric light
supply here in London. Here we are all divided up between mu-
nicipalities and companies and it seems to be in a bit of a mess.
We have heard that you have a comprehensive plan which might
deal with that problem in a much better way than it has been dealt
with.

Mr. GARCKE: That question is answered by the decision
which two Committees of Parliament have already given last year.
It was referred to the House of Lords and after long sitting that
committee reported in favor of the Bill with certain modifications.
Then it was referred to the House of Commons committee. It was
supported by that committee after a long hearing with certain
modifications, but the long inquiries had carried the Bill over the

LONDON HEARINGS. 687

time which was available in Parliament, and the committee did not
report until one day before Parliament adjourned, and too late
for the third reading of the Bill, and the Bill was lost for that
session, although a very considerable sum of money had been ex-
pended by the promoters. £50,000 was expended in bringing it to
that report stage, and so the question was answered by the inquiries
held by the Parliamentary committees. That Bill was the best
solution; it was a company bill, and it protected the interests of
the companies and the Local Authorities. Many of the companies
had arranged to take power from the new company in bulk. It
induced the London County Council to bring forward a hurried
measure asking Parliament to place power supply in the hands of
the London County Council, and the present Parliament decided
that the Bill should be put into the background, preference should
be given to the London County Council Bill. The London County
Council has been before Committee many weeks, and the committee
are giving their decision this morning, and I believe it will be
against it on the ground that it is not bold or comprehensive
enough. They did not deal with the problem in an adequate way,
but it is too late for the Administrative County Bill to be pro-
ceeded with.

Prof. PARSONS : Have you not written something on the
subject ?

Mr. GARCKE : In one of the articles for the " Times " I made
the suggestion that if private enterprise is to be discouraged — and
in the present political situation private enterprise has very little
chance — the London County Council control is not the best alterna-
tive, and the London County Council Bill would have the effect of
stopping the development of electrical supply. Therefore, I said,
we must look out for some other arrangement which will secure
the development of the electrical industry. I would prefer private
enterprise, the administrative company, or some other 'scheme which
would consolidate the different interests; but if that is not so, I
suggested it that a Board should be formed on the lines of the
Metropolitan Water Board which should take over the whole of the
existing electric lighting undertakings, both of the Local Authority
and of the companies, solely to deal with electricity, not like the
London County Council impeded by a multitude of other bigger
schemes. The London County Council cannot raise the money
necessary for the electrical supply; they have to spend ten millions
on tramways, considerable sums -of money on other matters, and we
have it on the authority of the Chairman of their Finance Com-
mittee that they ought not to take up fresh enterprise till they
have dealt with the things they have in hand. Therefore I said
you must have a separate Board to raise capital at low terms, and
at the same time acquire existing undertakings and develop the
business on its merits, and not on the merits of many other schemes.

Mr. SULLIVAN : You recognize the difference between owner-
ship of electric lighting and power, and ownership in ordinary
private industries. You acknowledge the necessity of a greater
regulation and control of the authority ?

688 NATIONAL CIVIC FEDERATION.

Mr. MOESE : In the case of quasi-monopolies, it is necessary
to have someone to regulate or control them.

Mr. SULLIVAN : As to the price of the product ?

Mr. MORSE : My view is that if the Local Authority ade-
quately perform their duty as controller they would do a great
public service. It is quite clear that owners of something in the
nature of a monopoly ought not to be able to charge exorbitant
rates and give a bad supply.

The CHAIRMAN : Under the present system is there any con-
trol exercised by the Local Authority where it goes into this
business ?

Mr. MORSE: To this extent, that Parliament regulates the
price and gives the Local Authority permission to apply for a
revision of price. But our experience has been that the Local Au-
thorities will give you any consent required if you give them an
equivalent in cash down.

The CHAIRMAN : Is there any control of the candle power?

Mr. MORSE : There is an inspection.

Mr. WALTON CLARK : Is it governmental or municipal ?

Mr. MADGEN : It is anomolous. The inspector is paid by the
Corporation, but his duty is to report upon the Corporation.

Mr. MALTBIE : He is a man of some standing ?

Mr. MADGEN : He is a municipal nominee.

Mr. SULLIVAN : Mr. Morse, in the case of control merely, is
the tendency of private enterprise to spread over large areas?
Take the case of the South Lancashire tramways. It has a large
area between Liverpool and Manchester. Do you know the process
by which it has gone into business ?

Mr. MORSE: It has always had to get its consents. It has
paid dearly for them.

Mr. MADGEN: Comprehensive schemes are, however, in the
best interests of the public.

Mr. SULLIVAN : Is not that the practice with municipalities ?

Mr. MADGEN : For obvious reasons they are very rarely em-
powered to go beyond their municipal boundaries, which were
settled in Saxon times and have very little reference to existing
requirements.

Mr. SULLIVAN: In reference to Leeds, Huddersfield and
Halifax, did a private enterprise go and try to join up the whole
system ?

Mr. MADGEN : Yes.

Mr. MORSE : The Local Authority is not interested in loss or
profit, it is interested in the facilities of the occupants of the
places where they live, and the money raised is trust money. Trust
money ought not to be invested in a speculative business. Battersea
has a population of 300,000. They have spent £100,000 in elec-
tricity supply and made a loss for the year, but there are only
about 500 people in Battersea who take a supply; that is, the
Corporation is borrowing on the security of all its ratepayers in
order to give electricity to very few ratepayers, and charging the

LONDON HEARINGS. 689

loss made by the supply to all the ratepayers? If a Company has
made a loss, it would have got the electricity all the same.

The CHAIRMAN : Are returns from municipalities reliable ?

Mr. MORSE: I should not like to say they have been fraud-
ulently drawn up, but I do not think they are to be trusted as full
and complete accounts of the trade. For instance, Leeds spent
£300,000 on tramways, and at the same time £300,000 on street
widenings which were solely made for the purpose of the tramways.
Now not one sixpence was charged to the tramway account.

The CHAIRMAN: What is the policy of the municipality
where the private Company comes in?

Mr. MORSE: The Company would have to widen the streets;
but at Leeds you find only one £300,000 charged, and it ought to
have been £600,000. You cannot say that the total expenditure
was charged unless you have both items. Then in South Shields
they spent £100,000 or more, and for the first three years no
charge was made against the electric lighting undertaking in
respect of the Town Clerk's Department, although they had given
a deal of work, nor the Engineer's Department, nor the Account-
ant's Department, although they all had been employed on the
work.

The CHAIRMAN: It is the policy of the Corporation to
charge each department with what it has to pay. If it is in the
electric light business it will receive an amount of money for the
Committee for lighting the streets. Is it the case that that charge
is made on a commercial basis, or is it made so high as to make the
electric lighting profitable ?

Mr. MADGEN : That is very general. We are very glad to
get £16 per annum for an arc lamp in the streets and £16 or £17
is a reasonable price, but the electric lighting accounts are very
commonly credited with £20 to £25 per annum. This is a matter
of record.

Prof. PARSONS : On the question of street widening, what is
the situation ?

Mr. MORSE: In London the London County Council is the
tramway authority and they divide it into thirds. They say the
Local Authorities must pay one-third, so that that is out of the
public funds.

Mr. MALTBIE : Do you know of cases where the Municipality
in provincial towns has charged any portion of the street improve-
ment to the tramways account ?

Mr. MORSE: The principle largely adopted is that the street
widening is a public improvement and it is not wholly necessary
to tramways, but the Chairman asked whether the accounts were
fully made out.

Mr. MALTBIE : Are the accounts of no use ? Should they be
charged with the extra street widening?

Mr. MORSE : I would not go as far as that. We may always
claim that if street widening is necessary the result is partly im-

Vol. III.— 45.

690 NATIONAL CIVIC FEDERATION.

provement, and it should be adjusted reasonably ; but whatever the
Company has to pay on street widening is necessarily part of the
expenditure of the Company for the particular purpose of the tram-
way. Similarly I think that Corporation accounts should show a
similar sum.

Mr. MALTBIE : How much should the undertaking bear ?

Mr. MORSE : It is very difficult to say in all cases.

Mr. WALTON CLARK : Would not the matter have to be settled
according to the particular locality and the surrounding conditions ?
A tramway Company might come to a place to run its rails through
where there was a public necessity for the widening of the street.
In that case the proportion would be one thing. In another case
where there was no necessity for anything but the tramways it
might be quite another.

Mr. MORSE : I quite agree.

Mr. SULLIVAN: At the Municipal Tramways Association it
was stated that eight cases had shown a deficit.

Mr. MORSE: We put the matter to a joint Committee on
Municipal Trading and it was considered desirable to have an audit.

The CHAIRMAN : There is no audit ?

Mr. MORSE: There is very little audit. Boroughs audit by
elected auditors, and in Westminster a friend called my attention
to a coster in whom he seemed interested. I asked him, " Why are
you interested in that man ?" and he replied, " That is one of our
auditors/'

Mr. MALTBIE : Were there no other audits ?

Mr. MORSE: I am speaking of boroughs. They still have
elective auditors.

The CHAIRMAN : And there are no other auditors ?

Mr. MORSE : There is the Mayor's auditor, but there are no
audits by chartered accountants.

Mr. MALTBIE : In none of the towns ?

Mr. MORSE : Plymouth was discovered to have spent moneys
authorized for one purpose on quite another. But speaking gen-
erally the audit is very slight. We have a barrister sent down about
a year afterwards, and he audits. He is not an expert.

Mr. MADGEN : It is beginning to be felt by those engaged
in private enterprises that any industry in which municipalities
become established is a very good one for the private trader to be
out of. It is a rather serious but sincere statement. We find in
tramway work they establish labor conditions which sooner or later
become imposed by pressure on private undertakings, and these
are so onerous as to seriously handicap the private enterprise, and
on some municipalities you have representatives of the employes
of the Corporation. At Newcastle-on-Tyne I think the Secretary
of the Tramways Workers is on the Municipality and he takes
their part in the Councils of the City. Newcastle tramways are
not paying and the existence of high wages there is bound to have
an effect on the surrounding districts.

The CHAIRMAN: Have the municipal employes shown any
tendency to control the Council ?

LONDON HEARINGS. 691

Mr. MOESE: Manifestly.

Mr. McNuLTY : Did these members of the Councils take more
active interest than others represented on the Council ?

Mr. MADGEN : Not yet ; but as the numbers go on they will,
because it is very difficult for a sincere citizen to maintain his
position on the Council. If he does not choose to assist the labor
party, it is made unpleasant for him.

Mr. McNuLTY: The labor members merely try to get laws
enacted that will compel the municipal government to pay the
employes of the tramways, gas works and water works the standard
rate of wages. Is that not a fact ?

Mr. MADGEN : If you give to the word " standard " a very
flexible meaning you are right.

Mr. McNuLTY: The standard is set by the recognized rate
of the Trades Union ?

Mr. MADGEN: That is one-sided. They want to get as much
as they can. You cannot get more out of a concern than it will
stand ; but in the case of municipal undertakings there is the whole
of the pockets of the ratepayers to pull at.

Mr. MOFFETT : They do not attempt to raise wages above the
rate generally applied by the Trades Unions ?

Mr. MADGEN : Broadly speaking, they are trying to get what
they can without reference to what it will stand.

The CHAIRMAN : Where carpenters are employed by the City
are they paid any more than that outside by the master carpenters
of the Union?

Mr. MADG'EN : Not yet, I think.

Mr. MADGEN : I should think the municipalities do not pay
a higher rate for carpenters, etc., than the private firms do — than
we do at our works — but the class of trade which they are in re-
quiring the greatest body of men is the tramway trade. They may
have a thousand tramway conductors and drivers, that is pretty
nearly a thousand votes. They bring their influence to raise their
rates above the proper economic limit. In the case of a private
company, the company would fail.

Mr. SULLIVAN: It would not mean having all labor as well
paid, as labor would admit.

Mr. MADGEN: It is discriminating between the different
classes of labor.

The CHAIRMAN : What about disenf ranchisement ?

Mr. MADGEN : There is a feeling that that is a last resort. I
do not like the idea of disenfranchising any man. I feel that every
man is entitled to a vote ; but if the thing goes very much further
then the idea may get adherents.

Mr. SULLIVAN : Has there been any movement on the part of
employers among their own men?

Mr. MADGEN : No.

Mr. McNuLTY: Is there any chance that the tramway men
are not properly organized ? Is there not just as much chance for
the employes of a private corporation to be organized as of a mu-
nicipality ?

692 NATIONAL CIVIC FEDERATION.

Mr. MADGEN: No. We employ 2,500 men at our works in
Leicestershire. We do our best for them; but many of them have
their own union, and we are not on their council, and they are not
on ours. When disputes arise we meet the men and discuss matters,
but we each have our own board. We should be a house divided
against itself if there were a representative of theirs on our board.

Mr. McNuLTY : If the labor man takes up an arbitrary posi-
tion, the representative of the corporation would be there to object
if necessary, as in the case of a company ?

Mr. MADGEN : Yes. But in Loughborough we pay a consider-
able proportion of the rates of the town; but we have no vote at
all, even in the elections.

Mr. MOFFETT : What reason have you, Mr. Madgen, to think
you should have a vote ?

Mr. MADGEN : I do not ask for it.

Mr. MOFFETT : Then you do not complain of not having one.

Mr. MORSE: I think every person who is a ratepayer should
have a vote.

The CHAIRMAN : Is the administration as efficient by the Cor-
poration ? Do they look after the funds as well as a private Com-
pany would ?

Mr. MADGEN : I do not think they are so mobile or resource-
ful. They do not adapt themselves to varying conditions.

Mr. SULLIVAN: Aside from the labor item, are there any
comparative records of work done by municipalities and that done
by companies ?

Mr. MADGEN: Yes. Take electric power supply, the Tyne-
side district is one of the very best in England, and the people
are fairly broad-minded. Private enterprise is encouraged there
rather more than elsewhere in England, and the result is that im-
pediments have not been so prominent as elsewhere, and a very
large electric power scheme has been organized in that district.
It extends over three counties from Northumberland to Yorkshire,
and electricity is much cheaper there than in any other part of the
country. The North Eastern Eailway takes its supply for elec-
trification from the Company.

Prof. BEMIS : How do you explain the fact that some of the
other supply companies had equal rights from Parliament that
they did not develop ?

Mr. MADGEN: That is true in one sense but not in another.
Mr. Garcke has described the condition in Lancashire. The result
is that Lancashire power scheme was mutilated.

Prof. BEMIS : Is that true of all the power companies ?

Mr. MAGDEN: No. The North Metropolitan Power Com-
pany has equal privileges, but not such a fine area — and, sub-
stantially, we have only been at work about a year. However, we
are giving very great benefit to that district already, and there is no
doubt that when we have established cheap rates we will be able
to induce manufacturers to move out of London to us.

LONDON HEARINGS. 093

Mr. MORSE : Where the power supply is in the hands of com-
panies, the companies are quite prepared to make business bargains,
but the Local Authority is very keen on having its own station.
The Local Authorities are always liable to refuse to give consent.

Mr. W. J. CLARK: In view of your statement that you are
charging the North Eastern Eailway a halfpenny a unit, why is it
that some of the larger municipalities such as Liverpool and Man-
chester are charging so much higher a figure to their tramways?
Are not the labor conditions as favorable for cheap power develop-
ment in Lancashire and Yorkshire as in the Tyneside District?

Mr. MAGDEN : They ought to be.

ADDENDUM*

LONDON, 29th June, 1906.
MY DEAR SIR —

At the request of the Chairman and members of your Com-
mission, whom I had the pleasure of meeting yesterday afternoon,
I set down in writing a few observations which I have to make on
the subject of your Inquiry.

I understand that your Commission is anxious to form a judg-
ment of the comparative efficiency of public services conducted by
the Municipal Administration, and those in the hands of private
undertakers. It appears to me that you will find a very great diffi-
culty in making such a comparison, for the reason that the circum-
stances of the two forms of trading are not conditioned alike. The
power of the local administration, which it should be observed, is
more absolute within its own jurisdiction than that of the central
government, and is able to obtain almost any concession it chooses
from Parliament, is freely used for the purpose of removing from
the path of the Municipal undertaking many obstacles and occa-
sions of expense which private undertakers would have to put up
with. There are many instances of this preference which have no
doubt been mentioned to the Committee. I venture, however, to
call attentipn to the following:

(1) The Public Authorities Act, 1893. This Act passed
by Parliament under pressure of the Municipal Association,
prohibits any action being brought against a Corporation — for
instance, by a person injured on a Borough Tramway — more
than six months after the accident happening, whereas if the
accident had happened on a Company's Tramway, the injured
person would have had six years in which to bring action.
Further an unsuccessful plaintiff against a Corporation is
penalized by having to pay to the Corporation a higher scale
of costs known as Solicitor and Client costs. Costs are never
awarded on this scale as between ordinary parties, and the
Courts have a certain discretion to withhold any costs alto-
gether in the case of ordinary litigation. There are other
special provisions in the Act which make litigation with a
Corporation most risky and costly.

(2) Another most important Statutory indulgence to
the Municipal Trader is that contained in the Trustee Invest-
ment Act, which makes the Stock of a County Council and
any Municipal Borough having a population exceeding 50,000
available for the investment of any Trust Funds.

* The following letter, from the Solicitor of the Great Central Rail-
way, was added to these Proceedings by order of the Committee of Five.

LONDON HEARINGS. 695

This gives the Municipal undertaking command of un-
limited capital at an artificially low rate of interest.

(3) It is sometimes suggested that this financial ad-
vantage is counter-balanced by the obligations on the Corpora-
tions to accumulate a Sinking Fund; but this obligation the
Corporations have escaped by a series of ingenious provisions
which they have induced Parliament to insert in the Local
Acts, the effect of which is to authorize the Sinking Fund to
be invested in the Corporations' own securities; so that when
the forty or sixty year loan for the enterprise has expired, the
position of the lender will be this :

The machinery either worn out or hopelessly antiquated,
the permanent way a streak of rust, horses dead, and the Sink-
ing Fund which should be available for paying off the debt,
represented by the town grave yard or the Borough rabbit
warren.

(4) No doubt many examples will have been mentioned
to you as to the somewhat tyrannical use of the Municipal
By-laws in order to protect the Municipal enterprises from a
competition which would have been freely encouraged by the
Authorities had it not been for their corporate interest in the
trade. A case was recently brought before the Courts of this
kind in reference to Blackpool, where the Corporation had re-
futed Licenses to Hackney Carriage proprietors to run Omni-
buses in the streets which might compete with the Corpora-
tion tramway, and which Licenses had been freely granted
prior to the Corporation acquiring the tramway, There was
also a case of the Walker Urban District Council against a

„ Newcastle firm of Engineers where the authority sought to
use their control over the high road to prevent the Engineers
supplying themselves with electricity for their shops on one
side of the road from dynamos of their own on the opposite
side, in order that the Engineers might be compelled to pur-
chase their current from the town public station. This case
was reported and reference can, if necessary, be supplied.
There have also been cases of Corporations who were seeking
to use their tramways for a general carrying business, imposing
By-laws restricting the traffic of general trade vehicles in the
streets.

I would call your attention to the fact that this oppressive use
of authority when it is wielded by bodies interested in trade is no
novel abuse in this country. Prior to Queen Victoria's reign the
trade of the old English towns was controlled by Corporations
elected by the Trade Guilds, and their interferences and By-laws
became notoriously restrictive. A famous example of this was the
prohibition of James Watt, who desired to set up a forge in Glasgow
for the purpose of experimenting with his Steam Engine. As he
was not a member of the Guild of Hammermen, he was prohibited
by the Corporation from establishing his works, and had to rely
upon the friendship of the University of Glasgow, of which at the

696 NATIONAL CIVIC FEDERATION.

time Adam Smith was one of the Professors. The precincts of the
University were outside the jurisdiction of the Corporation, and
hence it was that Watt was left unmolested to complete his valuable
invention. This and other abuses of the old trade-elected Corpora-
tion led to the Municipal Corporations Act of 5 & 6 William IV.
Cap : 76, the 14th Section of which reads as follows :

Be it enacted that, notwithstanding any custom or By-
laws, every person in any borough may keep any shop for the
sale of all lawful wares and merchandise by wholesale or retail,
and use every lawful trade, occupation, mystery and handi-
craft for hire, gain, sale or otherwise within any borough.
The spirit of this enactment is directly contravened by the
principle of Municipal Ownership, whose advocates always insist on
an absolute monopoly for any concern in which the ratepayers'
money has been invested. The consistent and steady opposition of
the electrical owning Corporations to the Electric Power Bills is a
flagrant instance of how Municipal Ownership induces these bodies
to offend against the spirit of the Municipal Corporations Act,
and return to the policy of oppression and restriction to which their
predecessors, the Guild-elected Corporations, were so addicted.

Now I should like to submit to the judgment of your Com-
mission this proposition: Do not these facts which I have men-
tioned constitute in effect a confession by the advocates and fol-
lowers of the practice of Municipal Trading that that form of
corporate enterprise has failed as trading? The following is my
argument :

If Municipal Trading was successful we should have the capital
for it raised on its own credit. There would be Muddlepool Gas
Stock and Puddleton Electric Stock. There is no legal difficulty in
such a method of finance, for the London Water Board has adopted
it, taking the water rates established by the long and successful
history of the Water Companies as a sufficient financial basis. Why
is it there are no similar stocks amongst all the hundreds of millions
of Corporation securities ? For the simple reason that all the world
knows that, while a Company's electric works or gas works would
very probably be conducted with due efficiency and economy, and
so yield a return on the money invested, such a result for a Mu-
nicipal enterprise of the same kind would be so improbable as to be
beyond the utmost stretch of the credulous investor's imagination.
The fact that Corporations have to buoy up their securities by ad-
ventitious aid of the ratepayers' liability, and the legislative cre-
dential of the Trustee Investment Act, amounts to an admission on
their part that their commercial tubs cannot stand on their bottoms,
in fact, that their trading is a failure.

Again, if their enterprise were really capable of rendering an
efficient public service, why should there be this continual running
to Parliament to defend them against competition? Why at the
present time are the full forces of the Municipal Corporations
Association marshalled in battle array to prevent the Mersey Rail-
way Company and the Wirral Railway Company from obtaining

LONDON HEARINGS. G97

power to run Motor Omnibuses which might empty the Corporation
Tramcars? If the various Corporation electricity works were
capable of holding their own in the stress of scientific and com-
mercial necessities and developments, why do we find the Corpora-
tions and the Municipal Corporations Association persistently
opposing every scheme that is being brought into Parliament for
the distribution of Electricity on a large scale? The promoters of
these schemes are not afraid of the competition of the Corporation,
why should the Corporations be afraid of them if it were not that
they knew that the municipal ventures were a trading failure?

If ordinary traders are content with the ordinary standard of
justice to be obtained from the Courts, and the Committees of
Parliament, why must the Municipal Traders have the special
privileges of the Public Authorities Act, and the intervention of
the specially whipped Borough Members, to deliver the Municipal
Traders from the decisions of those tribunals ?

Clearly a Municipal undertaking is a craft which cannot live
in the open sea, but has to have breakwaters constructed for her
protection. She stands condemned by her own designers, who them-
selves show such lack of confidence in her seaworthiness. As to
her ship's company, it is hardly to be expected, when they never
go out of sight of land, that they will maintain the same standard
of efficiency as is compelled by instinct of self-preservation in the
crew of a vessel which has only her own resources to rely upon for
keeping above water.

The fact is that Municipal Traders have forsaken the standard
of industrial and financial success, and adopted instead the shelter
of legalized monopoly and compulsory subsidy. They have forsaken
the service of the public at large and are catering for any section
of the community, however small, who may have influence enough
to help themselves to a facility such as Telephones or Parcels
carriage, or Hydraulic power by the aid of the public purse. They
have forsaken the idea of democracy; their funds are largely de-
rived by taxing those who are not represented, for in many cases
the larger portion of the assessable property is owned by Companies
and others who have no vote at all. They have thrown overboard
the standard of justice, for there is no justice in raising a large
fund by taxing, for instance, railway property in order to establish
a carrying business which can have no purpose except to reduce the
just railway earnings. They have forsaken the idea of local self-
government, for there is nothing local in the bureaucratic ring
which whips the Member for a Scotch Borough to vote against an
Electric Power Scheme for Ireland. There is nothing autonomous
in placing the community in bonds of debt to outside capitalists
who are placed in the position to dictate the raising of rates in the
Borough for generations ahead. They have raised the cost of all
production by depriving the industries of cheap power facilities,
which but for their interference they would long ago have had.
They have raised rents by discouraging the building of working
class houses by private persons who hesitate to compete with the

698 NATIONAL CIVIC FEDERATION.

rate-provided house of the Municipality. They have lowered wages
by draining the capital resources of the country into Borough
Treasuries, and thus both diminishing employment by creating an
artificial scarcity of capital in the industries, and reducing, the
share of labor by increasing the price of money. They have de-
stroyed the independence of thousands of workers by turning them
into Municipal officials. They have lowered the function of the
Capitalist by relieving him of responsibility, and consequently of
the necessity for bold and shrewd adventure. They have abandoned
the idea of the greatest good of the greatest number, and zealously
promoted the greatest good of the money lender.

I sincerely hope that your Commission will think a good many
times before they take the responsibility of advising the public of
the United States to embark on the seductive but slippery slope of
Municipal Trading.

I am,

Yours faithfully,

(Signed) DIXON H. DAVIES.
DR. MALTBIE,

9 Arundel Street, Strand W. C.

BRITISH TRAMWAY HISTORY

By FRANK PARSONS

To ascertain the effects of public and private operation of
tramways in Great Britain, we shall first review the history of Brit-
ish tramways, then examine the causes and effects of the change
from one form of operation to the other in the cities selected by the
Commission for special investigation, and finally study the ccfa-
trasts between existing public and private systems in the selected
cities.

I— GENERAL ACCOUNT OF THE MUNICIPAL MOVEMENT.

In a dozen years municipal operation of street railways in
Great Britain has grown forty-fold ; from 3 public systems in Janu-
ary, 1894, to 123 in March, 1906 * ; from 2 per cent, of the whole
number of tramways in the Kingdom in 1894 to 49 per cent, in
1906.2

Prior to 1894 only three municipalities, Huddersfield, Ply-
mouth and Blackpool, had adopted municipal operation of tram-
ways. In 1894 Leeds and Glasgow established municipal operation.
The marked success of their experiments gave the movement for
municipalization irresistible momentum. From 1896 to 1898, in-
clusive, eleven cities adopted the same policy.3 The data for 1906
show that municipal operation has been adopted by more than
seventy of the leading cites and towns, including all the principal
cities of the United Kingdom, except Dublin, Bristol, Norwich and
Edinburgh,4 and the total number of local authorities operating

1 The data as to tramway development are from the annual returns
of the Board of Trade to the House of Commons, as published in the
Parliamentary documents.

2 The Board of Trade returns dated 1894 show 3 municipal systems
at the beginning of that year out of a total of 153 tramway undertakings,
and 25 miles of line operated by the municipalities out of a total of
975. The full data for 1906 are given on a later page.

3 Sheffield, Dover, Hull, Halifax, Aberdeen, Blackburn, Bradford,
Liverpool, Nottingham, Southampton and London, all above 100,000
population except Dover and Halifax, and aggregating 6,668,000 popu-
lation for the group.

4 Edinburgh, in December, 1903, bought 11.7 miles of the 18.4
miles operated by the tramway company, but leased the roads for
operation. In the session of 1897, the city obtained authority from
Parliament to work the tramways, and is quite likely to take them over
when the present lease expires. Bristol also will probably buy and
operate the lines at the expiration of the company's franchise. Norwich
seems almost sure to follow the same road, and even Dublin may in
time join the procession, although the present company management
there is far above the average.

700 NATIONAL CIVIC FEDERATION.

their tramways was 123 against 127 private tramways, with 1,273
miles of line operated by municipalities against 936 miles still
operated by private companies.

Municipal ownership of tramways has prevailed in Great Brit-
ain from the early years of the industry. A large number of towns
and cities built their own lines, and another considerable number
purchased the lines from tramway companies, and in 1906, 175
tramway and light railway (interurban) undertakings, with 1,491
miles of line and 2,499 miles of track, were owned by local authori-
ties against 137 company undertakings with 748 miles of line and
1,092 miles of' track — over half the undertakings and two-thirds
of the mileage being public property. In 1883 municipalities owned
less than 25 per cent, of the tramways; in 1896 they owned 26 per
cent. (37 in a total of 153 and 335 miles of line out of 1,009 miles
total) ; in 1905 they owned 54 per cent., and in 1906 their holdings
rose to 56 per cent, of the total number of undertakings.

The Tramway Act of 1870, under which tramways are usually
constructed,5 made it easy for municipalities to build or buy, but
expressly precluded municipal operation. Parliament so fully rec-
ognized the right of a municipality to control the use of its streets
that it required the companies to obtain the consent of the local
authority in every case before the company could apply for an order
(from the Board of Trade) permitting it to build a tramway;6 and
it further provided, not only that municipalities might build and

5 The Light Railways Act of 1896 has also been used to some extent
for interurban lines. This act escapes the purchase clause of the
Tramway Act. A light railway must be bought as a going concern. No
consent of the local authorities is necessary, but the Commissioners give
great weight to what the local authorities say.

8 In view of this law and the general attitude of Parliament toward
municipal questions and the policy of municipal home rule, some of
the favorite contentions of those opposed to municipal ownership in
Great Britain are that Parliament favors municipalities, even making
the consent of local authorities necessary to a tramway order or the
introduction of a tramway bill, and that the cities have united to
carry their measures in Parliament and have enormous influence with
that body.

It is refreshing to find a legislative body in which the people con-
stantly have more influence than the companies. In this country it is
the public service companies that unite to carry their measures, while
our cities have not yet learned to organize or work together for their
common interests. We believe it to be perfectly right that Parliament
should require the consent of local authorities to tramway franchises,
and otherwise favor municipalities as against private companies where
their interests conflict. The municipalities represent thousands of
people where the companies represent tens and hundreds, and if the
majority is to rule in a republic or under free government, the big
corporations called municipalities should have preference over the
little corporations called companies.

In relation to the criticism of Parliament by the companies and
their friends, it must not be forgotten that the companies had the
field for a long time, and failed to make good. Till 1896 the cities
could not introduce a bill to operate trams without the consent of the
companies. If any company could be found to operate the system
Parliament would not consider municipal operation.

BRITISH TRAMWAY HISTORY. 701

own tram lines, but that they might purchase compulsorily, at struc-
tural value, the undertaking of a private company after the expira-
tion of twenty-one years from the time the undertaking was author-
ized.7 While providing for municipal ownership on easy terms,
however, the law denied municipalities the right to work the trams,
and left them to lease their own lines to private corporations,
for operation under such conditions as the municipality might see
fit to prescribe. The Glasgow Tramway Act got through with a
clause authorizing the city to take the lines and operate them after
a twenty years' lease; and from time to time concessions were
granted to a few municipalities to work their lines under license,
when "no reasonable" offer could be obtained from private parties.8
But so decided was Parliament in the policy of preventing munici-
pal operation that the interdiction of the act was supplemented by a
Standing Order of the House of Commons precluding even the
introduction of any bill for the purpose of giving local authorities
power to operate tramways. This standing order was not revoked
until the session of 189 6. 9 Then the House unanimously passed a
bill authorizing Sheffield to work its tramways. A few weeks later
Dover and Hull obtained similar powers, and in the session of 1897,
Liverpool, Manchester, Edinburgh, Newport, Neath, Birkenhead,
Bolton, Halifax, Leicester and Southampton secured the same
authority, including as in former cases, power to introduce mechani-
cal traction. Since then it has been easy to obtain authority for
municipal operation.

7 The clause in the Act of 1870 which provides for compulsory pur-
chase reads as follows :

" Upon terms of paying the then value (exclusive of any allowance
for past or present profits of the undertaking, or any compensation for
compulsory sale, or other consideration whatsoever) of the tramway,
and all lands, buldings, works, materials and plant of the promoters
suitable to be used by them for the purposes of their undertaking."

The local authority has only to pay " the then value " of the tram-
way ; in other words, the structural value or cost of duplication, less
depreciation. This interpretation of the clause was at first disputed
by the tramway companies, but the first cases which came under it
between the London County Council and the London Street Tramways
Company, and between the Edinburgh Tramway Company and the
Edinburgh Corporation (City) settled the matter, and the ruling was
affirmed by the House of Lords (see London S. T. Co. vs. L. C. C., 1894,
A. C. 489; 63 L. J. Q. B., 769). The London Street Company claimed
£604,090 for about 4% miles of lines with depots, etc., but the amount
was cut down to £101,798, or about one-sixth of the sum claimed by the
company.

8 The Board of Trade report for 1894 stated that "By special
statutory powers Blackpool, Huddersfield and Plymouth are working
their tramways." Huddersfield obtained authority to work its tram-
ways in 1882, but from that time until 1897 it was under orders from
the Board of Trade to lease its lines as soon as a reasonable offer could
be obtained from a private company. The grades were so steep that no
company would undertake the service, but the city has made a decided
success of it. Blackpool also was unable to find a company that would
take the lease, and in Plymouth a company tried and failed, so that the
city was forced to take the system or go without tramway service.

9 After Glasgow and Leeds had begun to work their lines and other
cities were demanding similar privileges.

702

NATIONAL CIVIC FEDERATION.

A list of the principal cities and towns that have adopted
municipal operation of street railways is given in Table 1. All but
Birmingham and London, where the transfer is incomplete, have
already fully municipalized and electrified their tramways, and are
operating them as public electric systems.10

TABLE 1. — MUNICIPALITIES OPERATING ELECTEIO STREET
EAILWAYS.

Municipalities .

Popula-
tion,

Census of
1901.

Aberdeen 143,722

Ayr 31,541

Belfast 349,180

Birkenhead 110,926

Birmingham 522,182

Blackburn 127,527

Blackpool 47,346

Bolton 168,205

Bournemouth ... 47,003

Bradford 279,809

Brighton 123,478

Burnley 97,044

Burtou-on-T. . . . 50,386

Bury 58,028

Cardiff 164,420

Chester 38,281

Chesterfield 27,185

Colchester 38,351

Darlington 44,496

Darwen 38,211

Derby 105,785

Doncaster 28,924

Dover 41,782

Dundee 160,871

East Ham 95,989

Exeter 46,940

Farnworth 25,927

Glasgow 735,906

Gloucester 47,943

Halifax 104,933

Huddersfield . . . 95,008

Hull 240,618

Ilford 41,240

Ipswich 66,622

Kilmarock 34,161

Kirkaldy 22,346

Lancaster 40,329

Esti-
mated
Popula-
tion..
1906.

171,022

117,292
548,022
134,015

180,562

67,702

288,544

128,095

102,808

52,922

58,744

183,383

122,981
165,007

835,625

109,272
94,851

'71,809

Municipalities.

Popula-
tion,

Census of
1901.

Leeds 428,953

Leicester 211,574

Liverpool 684,947

London 4,536,063

Lowestoft 29,842

Maidstone 33,516

Manchester 543,969

Nelson 32,816

Newcastle-on-T. . . 214,803

Newport 67,290

Northampton 87,021

Nottingham 239,753

Oldham 137,238

Plymouth 107,529

Pontypridd 32,319

Portsmouth 189,160

Preston 112,982

Reading 72,214

Roachdale 83,112

Rotherham 54,348

Salford 220,956

Sheffield 380,717

Southampton 104,911

Southend-on-Sea . . 28,857

Southport 48,087

Stalybridge, etc 47,538

Stockport '. 78,871

Swindon 44,996

Sunderland 146,567

Wallasey 53,580

Walsall 86,440

Warrington 64,241

West Ham 267,308

Wigan 60,770

Wolverhampton .. . 94,179

Yarmouth . 51.316

Esti-
mated

iton
1906.

463,495
232,111
739,180

637,126

268,721

74,227

93,749

254,563

140,969

118,014

205418
116,399

78,987
87,189

234,077
447,951
117,312

99,646

154,385

94,577

69,280
301,617

87.588
100,729

52,613

Total 14,121,458

The aggregate population of these 73 cities and towns is
14,121,458, or nearly 70 per cent, of the total population in places
of 20,000 or more inhabitants in the United Kingdom ; and the
other 50 municipalities operating tramways include a considerable
part of the remaining urban population. The movement appears to
be all one way; no city or town that has entered upon municipal
operation has gone back to private operation.

10 See Vol. I., p. 261, note 2.

BRITISH TRAMWAY HISTORY. 703

The chief reasons for municipalization were the desire for
better service and fairer treatment of labor, and the belief that the
streets and all monopoly uses of them should be controlled by the
public and that the profits of such uses should accrue to the public.11

The companies as a rule gave the people very poor service and
showed a grievous lack of enterprise. When the cities urged the
claims of electric traction or demanded the extension of the lines
into suburban districts to carry people out of the congested areas,
the companies said there was no money in it and they could not
agree to it unless they should be given longer terms than the
standard twenty-one year lease or franchise. The cities replied in
substance that public sentiment and the law had come to regard
long terms as against public policy, and if the companies could not
make reasonable improvements on a twenty-one year lease or fran-
chise, with purchase at full value at the end, it was equivalent to
saying that they could not be reasonably progressive under the con-
ditions that had been found essential to the safeguarding of the
public welfare. The fact is strongly emphasized in Great Britain
that one of the great advantages of municipal ownership is that a
public plant can be safely trusted with an unlimited franchise, while
a company cannot. That is one of the handicaps of private owner-
ship.

While the Commission was in London a visit was paid to Sir
Clifton Eobinson, the Managing Director of the London United
Tramways Company, the largest and most important private tram-
way in the Kingdom. In the course of our conversation our chair-
man, M. E. Ingalls, asked the tramway magnate this question:
"Why was it the companies did not develop electric traction and
give the people a thoroughly good service in every way? We
understand that the service under the old companies was very bad;
why was it?"

Sir Clifton replied : " It was ignorance more than anything
else ; they put in some nephew or relative or friend of an owner to
be manager or director — men who knew nothing of transportation.
They paid all their profits in dividends, kept nothing for renewals
or reserve, did not think ahead or foresee that the cities might take
over the plant; and then when it came near to the end of the
twenty-one year terms and there was a prospect that the cities would
buy, the companies did not pay any dividends at all in many cases,
so that when the term was up almost the whole community was down

11 There were other reasons for municipal operation of tramways.
In some cases, as we have seen, no private company could be found to
undertake the service. In other cases private enterprise failed, and the
people had to take the lines or walk. In Liverpool the company tried
to prevent the extension of the city's boundaries, and the development
of the suburbs, doing its best to hold up the progress of the city till
its demands should be acceded to. Still other reasons are on record,
but those named here and in the text are sufficient to give an idea of the
motives and difficulties involved, and some of the phases of unpubllc
and anti-public activity and neglect in which the opposition of interests
between the companies and the public manifested itself. (See Vol. I., p.
262.)

704 NATIONAL CIVIC FEDERATION.

on the companies, and all that the cities had to do was to shake the
tree and the rotten fruit fell into their mouths."

This may not be a very elegant bit of imagery, but it is certainly
very expressive of the inefficiency and bad management of the Brit-
ish tramway companies.

The companies not only opposed extensions and persisted in
continuing their antiquated horse systems, blockading the adoption
of electric traction unless the cities would grant them terms the
public deemed unreasonable, but in addition to this, their service
was bad in other ways. The cars were small, dirty, ill-ventilated,
uncomfortable, and unsightly. They were plastered with adver-
tisements, outside and in, even the windows being largely covered in
many cases. Such ads as Cadbury's Cocoa, Lipton's Teas, Swan
Soap, Taddy's Tobacco, Hennesy's Brandy, etc., obtruded themselves
on the public from the walls or windows of the cars or appeared in
large letters a foot or more in height extending the whole length
of the car on a headboard or sideboard that could be read blocks
away, while the destination of the car was buried in obscure an-
nouncements that needed a telescope for their discovery. Moreover,
the cars were few and the service infrequent, so that it often took
less time to walk than to stand on a corner and wait for a street
car. And to cap the climax, in spite of the poor service they ren-
dered, the companies in many cases charged the public fares con-
siderably above what were regarded as reasonable by the munici-
palities concerned.

When asked to reduce their fares the companies took the same
stand they did in respect to extensions and improvements. They
said they could not afford it. The fares demanded by the public
they declared would mean bankruptcy.

But the municipalities have proved that the companies were
wrong in both positions. The cities took the lines, carefully investi-
gated the problem of improving transportation, adopted electric
traction and sent the old horse-car systems to the scrap pile, ex-
tended the lines, put on larger, better, cleaner cars, with the ads
reduced to due subordination, and in some cities abolished entirely,
lowered the fares even more than they had asked the companies to
do, shortened the hours of labor, and in many cases increased wages
also, and, after all, realized, not the losses the companies predicted,
but comfortable profits for the people. In other words the cities
have done successfully what the companies declared they could
not do.

In Table 2, the increase of mileage is tabulated for the periods
before and after municipalization in five cities, and for correspond-
ing early and later periods in five other cities having company man-
agement in both periods. In every case the rate of extension or
increase of mileage under municipal ownership greatly exceeds the
rate of extension under company management in the same city,
the annual per cent, of increase of mileage under municipal oper-
ation ranging from 5 to more than 50 times the annual rate of
increase under company management. The rate of increase under

BRITISH TRAMWAY HISTORY. 705

municipal management also largely exceeds the rate for existing
companies both in the earlier and later periods. The average rate
of extension for the municipal systems is 15.8% per year against
5.5% per year for the existing companies in the later period
corresponding with the period of municipalization in the upper
group. Moreover, Edinburgh and Belfast, which now show the
highest rate of extension among the companies, have both felt the
impulse of municipalization ; Edinburgh having bought the lines in
December, 1893, and leased them with agreements for extensions
and improvements; and Belfast having begun to municipalize sev-
eral years ago, completing the process at the beginning of 1905.
The facts set forth in this table clearly show that municipal owner-
ship has had much more to do with extensions than electric traction,
for the existing companies have adopted electric traction as well
as the municipalities, and yet the rate of extension averages only
about one-third of the rate for the municipal systems.

TABLE 2. — EXTENSION OF LINE BEFORE AND AFTER MUNICI-
PALIZATION.

*City.

No.
•Yrs.

*Da'e

Period Before *$ ,
Municipaliz'on .£
Mtles of Lin* *%**•
Increased ti£

Period Since
Municipaliz'on No.
Miles of Line (f
Increased Yrs.

Per Cent, of
Inereasefor
Period

Annual
Average
Per Cent.
Increase
Com-
pany fJity

from.

To.

from.

To.

Before. After. Period. Period.

Glasgow . .

'12

22.2

'94

80.5

168

2.7

Leeds

13.7

14.2

'94

218

54.2

3.7

201

16.8

Liverpool ..

43.7

'97

43.7

63.4

6.7

Sheffield ..

9.4

'96

9.4

35.5

* . • *

275

27.5

Manchester

80.5

87.5

'01

355.7

8.7

2.2

Municipalities — Group averages

1.2

15.8

Dividing

Earlier

Later

Date.

Period.

Period

Dublin ....

31.3

33.3

'94

33.3

49.5

Edinburgh

13.3

18.4

'94

«11.7

22.7

3.1

7.8

Belfast . . .

15.1

'96

39.1

5.2

Bristol . . .

11.2

19.6

'97

19.6

28.2

8.3

4.8

Norwich . . .

, .

5'01

13.8

14.5

....

. . ..

Companies — Group averages 4.0 5.5

*The first five cities, Glasgow, Leeds, Liverpool, Sheffield and Man-
chester, changed from private to public operation at dates ranging from
1894 to 1901, and the rate of extension in the period of company man-
agement is compared with the rate under public management. The
last five cities, Dublin, Edinburgh, Belfast, Bristol and Norwich, have
had company operation during both the earlier and later periods, except
that the last two or three years in Belfast the city has been taking
over the lines, completing the process Dec. 31, 1904. The London United
Tramways Company was not organized till 1901, and made no returns
for 1902. Moreover, the data available do not enable us to distinguish
between extensions and the increase of mileage by consolidations of
companies, so the company has not been included in this table.

The municipal period in each case is from the date of municipaliza-
tion to the returns for 1906.

1 For the periods going back twelve years from 1894, the figures
for 1881 were taken, because the Board of Trade returns for 1882 are

Vol. III.— 16.

706 NATIONAL CIVIC FEDERATION.

In Table 3 we have tabulated the reduction of average fares
under company control and under city management for the same
period of years before and after municipalization in each case as
shown in Table 2,12 and also for the earlier and later periods of
existing companies. Except in the case of Leeds, the rate of re-
duction of average fares is 6 to 160 times as great for the municipal
period as for the company period, and 50 times as great for the
municipal systems as a group compared with the net average reduc-
tion for the existing companies as a group, or 3^ times as great
if we leave out the companies whose average fares have increased
slightly instead of diminishing, in which case the average reduction
in the later period for the four remaining companies would be .88
of one per cent. The Dublin United shows specially strong reduc-
tions for company management, partly because it started with such
a very high average fare, and partly because the management is
reasonable and progressive. The average fare, however, is still
2.48 cents against 1.88 cents in Glasgow, and Glasgow gives an
average of over 50 per cent, more distance than the Dublin com-
pany for each cent of fare collected.

This brings us to the fact that the table does not show the
whole amount of reduction in charges, because it does not cover the
changes in routes. Prior to the municipal ownership period the
companies did not as a rule get beyond Id. a mile as the basis of
their schedules. But the municipalities have increased the average
distance for Id. to 2, 2.3, 2.4 miles or more,13 and existing com-
panies, following the lead of the municipalities, have increased the
average penny route to 1.5 miles, and in one line of the London

missing in all the half dozen sets to which we have had access. Taking
the figures of the year before, however, favors the companies, for it
gives them one more year for development, and with the twelve-year
divisor magnifies their progress a little in the early period.

2 The city already had 3.8 miles when it took over the company
lines.

SA four-year period has to be used for Manchester in this table,
because the city did not take over all the track the company had been
operating, and the first returns for city operation are dated 1902 for
1901-1902. In 1901 the Manchester Carriage and Tramway Company
was operating 87.5 miles — 35.3 miles of line belonging to the city of
Manchester, 29.1 miles of its own and 23.1 miles belonging to five other
municipalities, including Salford and Oldham. The returns for 1901-
1902 show the city of Manchester working 55.7 miles, Salford and
Oldham deciding to work their own lines about the same time as
Manchester, so Manchester, starting with a smaller mileage than the
company ended with, began to build up a new system. All the
municipalities greatly enlarged their systems. The Manchester growth
is shown in the table. The Salford system grew from 12.3 miles in
1901, the last company returns, to 18.52 miles in 1902, the first city
returns, and 36.8 miles in 1906. And the Oldham system developed
from 11.3 miles in 1901, to 23 miles in 1906.

* In December, 1893, Edinburgh bought 11.7 miles of the 18.4 oper-
ated by the Edinburgh Street Tramways Company, and leased them.

6 The first returns for the Norwich Company are dated 1901. It
did not open its lines till 1900.

12 Except in the case of Manchester where the whole 5-year period
since municipalization Is available for this comparison.

18 For Sheffield it is stated at 2.5 miles for Id.

BRITISH TRAMWAY HISTORY.

707

United to 2 miles. The average charge per mile is below £d. for the
municipalities, against Id. for the former companies, and fd. for
the present companies in Dublin and Bristol, according to their
own statements. For Norwich, the charge appears to be more than
f d. per mile, and for the London United, less, apparently about
,6d., but we have no exact data on this point for either of the
last named companies. Taking the increase of distance given for
Id. into account, and the establishment of -|d. fares in all the
municipal systems but that of Liverpool, the real reduction of
charges under municipal ownership in the cities of Table 3 ranges
from 50 to 66 per cent.14

TABLE 3. — EEDUCTION OF AVERAGE FARES BEFORE AND AFTER
MUNICIPALIZATION.

*City.

No.'
of
?rs.

Company

Period

Average

Fare

Fell

Municipal
Period

Average No.
Fare of
Fell

Per Cent.
Seduction

for
Period.

Annual

Per Cent.
Seduction.

Before. After. Before. After

From To iFrom To

Cents. ' , ' 1906

Glasgow 12 2.33 2.30 1.88 12 1.28 18.3 .11 1.52

Leeds 12 3.00 2.52 2.12 12 16.0 15.8 1.33 1.31

Liverpool 9 3.96 3.78 2.22 9 4.57 41.0 .5 4.55

Manchester 5 4.04 4.03 2.38 5

Sheffield 10 3.02 2.95 1.80 10

4.57 41.0

.24 40.9 .05 8.18
2.31 39.0 .23 3.90

Municipalities — Group averages

Dublin United... 12 4.88 3.28 2.48 12 32.8

Edinburgh 12 3.62 3.1622.34 2.28 12 12.7

Bristol 10 3.39 2.41 2.29 10 28.9

Belfast 10 3.51 2.30 2.14 10 34.4

London United S2.76 2.88 3 ....

Norwich *2.19 2.25 5

50 3.21

Early Later
Period. Ptriod.
24.3 2.73 2.02
2.56 1.06 .21
4.97 2.89 .49
6.91 3.44 .69
4.34 .... "1.45
°2.74 .... 5.55

Companies — Group averages 2.46 .61

Net

*See Table 2 for statement as to the groups of cities, periods, etc.
*For the turning point dates see Table 2, or estimate back from

the 1906 column, according to the number of years in the periods

covered.

2 There was a break here, the city buying part of the lines of the
old company (see notes to Table 2).

3 From the returns of the year 1903. The present company began
in 1901, but made no returns in 1902.

4 Returns dated 1901.

5 Increase, instead of reduction. In the case of Norwich this may
be due to transfer passengers buying two routes at a time. In the
case of the London United it is probably due to the fact that, as the
system became more complete, passengers rode longer distances.

14 See Vol. I., p. 267, note 6.

The savings to the traveler from the lowering of fares was very
considerable. These savings were estimated for Glasgow by the tram-
way committee in 1897 at £180,000, or in round American figures,
$900,000 a year. The Liverpool department estimated the savings in
that city for 1904-1905 at £330,000, or about £1,600,000 a year. The
establishment of one cent fares by the London County Council was
estimated in 1905 as amounting to a clear gift of £100,000 (or nearly
$500,000) a year to the passengers.

708

NATIONAL CIVIC FEDERATION.

The answers given by the Commission's experts to two questions
in Schedule IV. claim attention here.

The first question relates to the fares just before and just after
the change from private to public ownership. The data for Glasgow
show that the municipal management introduced at once the £d.
fare for short rides, the lowest fare under the company regime hav-
ing been Id. The distances given for various fares were lengthened
somewhat and the schedule says:

Average fare per mile, company .89d.

Average fare per mile, city .46d.

This is a reduction of nearly 50 per cent., which is more than
the management claims as the immediate effect of the transfer.
The signed statement given the writer by Manager Dalrymple, shows
the average fare per mile for the company, .89d., and for the city
in the first year after the transfer, while the cars were still drawn
by horses, .75d. Later, the city so greatly lengthened the routes
that the average fare per mile fell to .45d., but not the first year.
In the official report for 1896-7, p. 7, it is stated that if the
99,000,000 passengers carried that year (in horse cars) had paid
the fares charged by the company, it would have cost them £180,000
more than the £365,761 it did cost them. That means a reduction
of about 33 per cent, in the second year of municipal operation.
Since then further reductions have been made, so that the total
reduction now amounts to more than 50 per cent.

In Manchester the company ceased operating cars March 31,
1903, and the city made " a general reorganization of the fares and
stages in October, 1903." The schedule then gives the following
table showing the introduction of -|d. fares by the city, and £d.
stages between the Id. and 2d. stages, the 2d. and 3d., and the 3d.
and 4d. stages. The average fare for the company was 2d. (4
cents) and for the city, 1.2d. (2.4 cents) ; and the average distance
for Id. was 1 mile 100 yards for the company, and 2 miles 206 yards
for the municipal system.

TABLE 3A. — MANCHESTER FARES AND DISTANCES BEFORE AND
AFTER MUNICIPALIZATION, 1903.

Company.
Distance in Milts.

Inside.

iios

2 '.06
3.' 08

5.38
6.29

Outside.

iisi

2.23

3!08

eioe

Fares.

y2d.

1 d.

Municipality,
in Mile

2 d.

3 d.
3V2d.

4 d.

5 d.

6 d.

file*.
Inside or Outside.

.72
2.10
2.61
3.34
4.03
4.68
5.43
6.45

Liverpool took the tramways in 1897. Schedule IV. says:
"The reduction between 1897 and 1899 would be between one-half
and two-thirds of the original fares." The London County Council

BRITISH TRAMWAY HISTORY

709

introduced a system of £d. fares,* and " many alterations have been
made both in fares and distances since January 1, 1899, when the
lines were taken over."

The second question of Schedule IV., above referred to, is
this : " If fares were altered between January 1, 1900, and 1906,
give changes."

The reductions by Manchester in 1903, amounting to more than
50 per cent., have been noted under the previous question.

For Glasgow, Table 3B gives the average distances at various
fares in 1900 and 1902, and for the former company.

TABLE 3B. — GLASGOW FARES BEFORE AND AFTER MUNICI-
PALIZATION.

Average Distances in Miles.

V2d.

1 d.
iy2d.

2 d.

3 d.
3y.d.

4 d.
4%d.

5 d.

sy2d.

6 d.

1900.
.58
1.75
2.31
3.49
4.12
5.20

City Management

1902.

.58

2.30

3.48

4.59

5.88

6.90

8.11

9.19

10.15

10.77

11.59

12.93

Company.
1894.

No such fare
1.12
1.80
2.20

3.23

The company's longest route was 3.23 miles, and the fare 3d.
The city extended the routes so that by 1902 the longest route had
grown to a length of 12.93 miles, or four times the company's
longest route; and instead of charging nearly 2 cents a mile as the
company did, the city made a rate of less than 1 cent a mile, or
more than 50 per cent, reduction.

In regard to the companies, Schedule IV. says: "London
United. Slight increases in distance carried; fares were not mate-
rially altered. Dublin, Norwich. No changes." According to the
Bristol company's returns, the average fare was 1.9d. in 1900 and
1.14d. in 1906.

The reduction of fares, increase of facilities, greater frequency
and attractiveness of cars and general improvement of service
established by the municipal managements, resulted in a great de-
velopment of traffic. Table 4 shows the passenger traffic in millions
for the municipal period and the company period (see Table 2 for
dates, etc.). The annual rate of increase for the municipal period
is 5 to 34 times as great as for the company period. The lowest
rate of growth for the municipal systems is above the highest rate
of growth for the existing companies; and the highest municipal
rate of development is over five times the highest company rate in

* The company had a few y2d. fares, but no such general system
as the County Council adopted. The Council also greatly lengthened
the routes in many cases and made a very marked improvement in the
service for workingmen.

710

NATIONAL CIVIC FEDERATION.

the later period. The traffic of existing companies has not increased
so rapidly in the later period as in the early period. The average rate
of traffic increase for the municipal systems is 16 times the aver-
age for the companies they replaced, and 4.8 times the net average
for existing companies during the period covered by municipal-
ization.

TABLE 4. — TRAFFIC BEFORE AND AFTER MUNICIPALIZATION.

City.

Glasgow
Leeds

Liverpool ..
Manchestr .
Sheffield ...

No.

Yrs.

Company Period Municipal Period
No. Passengers No. Passengers
(in millions) (in millions)
Hose Hose
From. To. From. To.

No.
Yn.

Per Cent.
Increase for
Period.

Annual
Average
Per Cent.
Increase.

12
12
9
4
10

is —

34.15 53.73 208.06
5.96 8.45 69.63
22.77 29.69 119.12
54.95 63.5 *23.59 133.92
5.19 6.57 68.24

Groun averages .

12
12
9
4
10

57 287
42 724
30 301
16 467
27 937

4.8 23.9
3.5 60.3
3.3 33.4
4 117
2.7 93.7

3.6 57.3

Dublin U...
Edinburgh .

Bristol

Belfast

London U. .
Norwich .

12 10.04 19.20
11 8.37 15.42216.56
10 5.69 18.59
10 6.17 22.12

336.21

47.82

Early

Later

Period. Period.

50.40

163

7.6

13.6

6 53.67

224

7.7

20.3

45.29 10 227 144 22.7 14.4

30.13 10 258 36 25.8 3.6

49.16 3 ... 36 .... 12.0

7.33 5 ... 5.6 .... "1.2

Companies — Group averages 15.3 11.9

Net

In some of the cities the tramways carry express packages and
mail. A resident of the city or the surrounding country reached by
the tramways can mail a letter or express a package on the tram
car that goes by his door or travels the neighboring roadway.

Next to the desire to obtain a better service at lower fares, to
secure electric traction on reasonable terms, with due extension of
lines, larger, cleaner, better looking cars, and other needed improve-
ments, and to take a direct control that would prevent in future
any such paralysis of progress and blockade of the people's will as
had occurred under the leasing system — next to this, the wish to
improve the conditions of labor has been the predominant motive
in the municipalization of tramways, especially in the larger cities.

*See Table 2 for dates of municipalization, periods, etc.

*Here again the Manchester period, is four years, for the reasons
stated in note 3 to Table 2.

2 There is a break in Edinburgh, owing to the fact that in December,
1893, the city purchased part of the lines and. leased them, so that, in
order to get full unbroken years for both periods, old and new, it was
necessary to take the data for 1893 as ending the first period, and those
for 1894-1895 for the beginning of the new period.

"Returns of 1903 (see notes to Table 3).

* Returns of 1901.

"Decrease. The passenger receipts fell off as well as the number
of passengers, so that the difference here cannot be accounted for by
the double ticket transfer system.

BRITISH TRAMWAY HISTORY. 711

The companies generally paid the men low wages and worked
them very long hours, 11 and 12 hours a day for 7 days in the
week being moderate requirements according to the ideas of company
managements before municipal operation lifted the standards of
employment and educated public sentiment, and company sentiment
also, to a point where reasonable treatment of labor becomes the
normal policy. Under the company regime it was not unusual for
the men to work 13 to 14 hours a day, and even longer hours than
this were demanded by some companies.

When the municipalities took the tramways they greatly les-
sened the hours of labor and increased wages in many cases at the
same time. They adopted as a rule a 9, 9£ or 10 hour day, with one
day's rest in seven, reducing the hours from 77, 84, 91 or 100 and
more per week under company management to 54 and 60 per week
under public management. In Glasgow, for example, the company
worked the men 77 to 84 hours and more per week. The city
adopted a 10-hour day and a little later a 9-hour day with six days'
work a week, reducing the hours from 77 and 84 to 60, and then to
54 per week.15

The Sheffield management states that the city reduced the hours
from 102 to 60 per week, and more than doubled the hourly wages
of experienced drivers and conductors.16 Liverpool claims a reduc-
tion of average hours from 98 and 105, under company rule, to
60 under public management, with an increase of something like
50 per cent, in wages.17

Manchester cut the hours from 70 to 54 per week when she
municipalized the tramways, and also increased wages 43 to 63 per
cent. Manager Baker of the Birmingham City Tramway states that
the city established a 60-hour week in place of what was ostensibly
a 70-hour week under company control, but was very often in
reality a 90 to 100-hour week, or even more.18

15 Statement of Mr. John Young, the first manager of the Glasgow
tramways. Wages were increased 15 to 25 per cent, at the same time,
and the hours and pay of men in the service three years or more was
raised 65 per cent, above the company level.

Men frequently worked 13 to 14 hours a day under company con-
trol, but 84 hours was nominally a full week's work.

18 The maximum wages of drivers or motormen were increased from
3.3d. to 6%d. per hour; 71 per cent, of the motormen are getting the
maximum wages ; 16 per cent, are getting 7.7d. and 8d. per hour, in-
cluding " gradient money." The maximum wages of conductors rose
from 2d. to 5.9d. per hour, and relief pay; and 27 per cent, of the
conductors receive the maximum pay. Conductors are promoted to
motormen. The city also grants the men one week's holiday per year
with pay, also free uniforms, and allows them to ride free of charge to
and from duty.

" Manager Mallins says the company worked employees 13 to 17
hours a day, with a probable average of 98 to 105 per week for the
different classes of labor.

18 The company pretended to have a 10-hour day, but the men said
that they were on duty 14 hours in the 24 generally, frequently 15 or
16 hours, and sometimes even 18 hours, without intervals for meals.
And they complained bitterly that when on duty on the late night

712 NATIONAL CIVIC FEDERATION.

In London the companies as a rule worked their conductors
and drivers, pointsmen and inspectors from 77 to 91 hours a week.
The London County Council made a 60-hour week when it took the
operation of the tramways. Dr. F. C. Howe, writing for the United
States Department of Commerce and Labor, estimates that the re-
duction in hours of tramway employees during the period of rapid
municipalization and electrification, amounted to 48 per cent., and
the increase of wages at the same time he puts at 42 per cent.19
We have not sufficient data before us to make so broad a generaliza-
tion, but it is certain that in some cases the company schedule of
hours was nearly 100 per cent, above the working week established
under municipal management, and that the wages per hour have
been lifted 60 to 100 per cent., and even more in some of the best
systems, for men who have been long enough in the service to prove
their value.

The table given in Vol. I., p. 268, presents in condensed form
some of the facts relating to the reduction of hours under municipal
operation.

The tramway acts require the managements to run workmen's
cars morning and evening at half the penny a mile maximum al-
lowed by law for ordinary fares. In Glasgow and Dublin for ex-
ample, the law provides for workmen's cars before 7 a. m., and after
6 p. m., at fares not exceeding ^d. a mile. Glasgow has abolished the
class fares by reducing all fares below the -|d. a mile prescribed by
the law for workmen's fares.20 Liverpool also makes law rates for
all, with no distinction of working-class cars.21 In Manchester
all the cars are workmen's cars before 7 a. m., and 2 cents will carry
them 31/., miles, 3 cents over 4 miles, and 4 cents 51/3 miles.
Any one can ride at these fares who rides early.

shift, they would often be called for the early morning shift at 4 a. m.
and have to go to work again for another long day on only 3 hours
sleep.

As to wages, the company's conductors start with 4d. an hour of
nominal time, and end with 5d. ; the city's conductors start with 5d.
an hour and rise to 6d. The city's motormen start with 6d. an hour
for the first year, get G.3d. the second year and 6.6d. the third year.
The company's motormen get 5d., 5^d. and 6d. for the corresponding
periods.

19 U. S. Bulletin of Labor, January, 1906, p. 67.

20 The Glasgow management says they found it a nuisance to have
special rates for different classes of service and so they cut all rates to
the level of the working class rate, and now the fares are considerably
lower than the legal requirements for workingmen's fares.

21 In Sheffield, Leeds, Nottingham and a number of other municipal
systems the same cars are used for all classes of passengers. Sheffield,
like Liverpool and Glasgow, has reduced all fares below the ^d. mile
level so that passengers ride at any time of the day and in any car
at fares below the workers' rate prescribed by law. In Leeds all cars
run at workers' rates up to 7 :45 a. m., and the upper decks of all cars
are open to passengers at workmen's fares between 5 and 6:15 p. m.
In Nottingham passengers on all cars leaving a terminus before 8:00
a. m. are carried at workmen's rates.

BRITISH TRAMWAY HISTORY. 713

The situation in some of the other cities is shown in Table 5A,
derived from the data of Schedule IV.

TABLE 5A. — WORKINGMEN'S SERVICE.

London County Council..,
London United

Average
Fares on ,
Workmen's
(Jars.

1.78
2.98
2.22
No data
No data

Distance for

2cts.

3 to 7
5%

Miles
6 to 14
11

Dublin United

Norwich ,

Bristol . .

Number of
Workmen
Carried.

9,898,289

1,721,739

111,397

The London County Council makes a universal Id. (2 cent)
fare for workmen for any distance on any route; and 2d. buys a
two- journey ticket, " available for another journey on any route, on
any car, at any time of the day of issue." Workmen, of course, like
any other passenger, may ride the short stages for |d. But there are
twenty good routes, 3 to 7 miles long, any one of which the worker
can ride for Id., with a round trip up to 14 miles (7 in and 7 out)
for 2d.22

The County Council obeys the spirit as well as the letter of the
law, and makes ample provision for the working-class service. The
companies do not. The Dublin United, for example, only operates
one car on a route, and only five routes have even the solitary work-
men's car. The car starts in at 6 a. m. and out at 6 p. m. Sales-
girls cannot ride on these cars, so they must pay the full fare any-
way,23 and there is room for only a very small fraction of the work-
men who travel by the trams. Aside from the question of room,
the would-be passenger loses the car unless he is on hand at the
exact time. In other words, the companies as a rule do not en-
courage the working-class traffic. They prefer to have the workers
ride in the ordinary cars and pay higher fare, nearly double on
many stages, for the company trams, except one line of the London
United system, have not brought ordinary fares down to the work-
ing-class level. The London United has seven penny routes for
London workmen, ranging from 3 to 8 miles (only one 8 -mile route)
and one 2d. route of 12^ miles.

1The figure given in the schedule is 51,159. But one of the prin-
cipal officers of the road stated to us that the workmen's fares num-
bered less than 12,000 a year out of a total of more than 50,000,000 pas-
sengers, and in a letter dated June 11, 1906, he gives the exact number
carried in workmen's cars as 11,397. Return tickets at 8d. each are
issued for a 5d. stage, and about 100,000 of these tickets are issued in
a year. Even this only gives low fares to one-fifth of one per cent, of the
passengers, and only in respect to two stages out of a total of eighty.

22 London route book, 1906, pp. 93-105.

23 On one line (the longest run in Dublin, 9^4 miles out) the pay-
ment of the ordinary fare is no great hardship for the company is com-
peting with the railroads on this line, and that has brought the fare
down to 5d. (10 cents), or within %d. of the workmen's fare on that
line.

714 NATIONAL CIVIC FEDERATION.

The Board of Trade returns for 1906 reveal the following con-
trasts :

TABLE 6. — TRAMWAY KETURNS FOR THE UNITED KINGDOM.

Percentages.

Local

Local Authori- Corn-

authorities. Companies, ties. panics.

Undertakings owned 175 137 56 44

Miles of line 1,491 748 67 33

Cost per mile of line £24,916 £28,072

Miles of track 2,499 1,009 71 29

Cost per mile of track £14,870 £19,250

Undertakings worked 123 127 49 51

Mileage 1,276 963 57 43

Capital outlay £31,147,306 £26,305,028 ..

Receipts £6,853,486 £3,789,692 ..

Operating expenses £4,323,734 £2,512,029 ..

Their per cent, of income 63.08 66.28

Net revenue £2,529,752 £1,277,663

Per cent, of return on capital 8 4.8

Net revenue per mile £1,980 £1,365

Net revenue per car — mile 7.82 cts. 6.86 cts. ..

Car miles run 154,965,781 89,183,683 ..

Passengers carried 1,529,596,438 706,416,339 68 32

Average fare per passenger 2.1 cts. 2.43 cts. ..

Operating cost per passenger.. 1.3 cts. 1.72 cts. ..

The returns for 1906 show that out of 2,240 miles of lines in opera-
tion 1,993 miles were operated by electricity, 72 by steam, 26 by cable,
4 by gas and 145 by horse power and the rest by mixed methods.

About 30 municipal systems are still held by companies under lease,
but the number is fast diminishing. The mileage thus leased was 215
in 1906, or about 14% of the total belonging to local authorities. Private
tramway concerns decreased by 9 during the year, 7 of them passing
into the hands of municipal managements. Municipal systems appear-
ing for the first time under public control in 1906 are those of Pool,
South Shields, Erith, Leyton, Littleborough and Walthamsstow.

It appears from the data above tabulated that the average fare
per passenger is 14 per cent, more for the companies than for the
public systems, and yet the companies have a higher percentage of
operating cost to income. The average working cost per passenger is
less than V-A cents (1.3 cts.) for the public systems, and nearly If
cents (1.72 cts.) for the companies, or 32 per cent, higher operating
cost for the companies than for the municipalities. Their capital per
mile is larger,24 and their net revenue considerably less than for
the public systems — the return on capital being 4.8 per cent, for
the companies against 8 per cent, for the municipalities. With 57
per cent, of the mileage, the municipal systems ran nearly twice as
many car miles as the companies, and carried more than twice as
many passengers. Their profits are £1,980 per mile against £1,365
for the companies, and 7.82 cents per car mile against 6.86 cents

**The Board of Trade figures are not conclusive on this point, how-
ever, for the company capitalization includes some buildings and equip-
ment for lines they lease from municipalities, and the returns do not
state how much is due to this item.

BRITISH TRAMWAY HISTORY. 715

for the companies. The municipalities realize a very large profit
on an average 2-cent fare for the whole group of local authorities
operating their tramways,25 while the companies have a much higher
cost and obtain a smaller profit in spite of an average fare of nearly
2$ cents.

The full publicity incident to public operation has been of
great value to both public and private managements. Every item
of cost and detail of management has been published and a whole-
some rivalry has been created thereby.26

The development of municipal operation has impelled the re-
maining companies to improve their service and to give more con-
sideration to the public, yet the cities continue to municipalize the
tramways to get still lower fares, control the streets, secure the
profits for the public and add a new field for the development of
civic activity and good citizenship.27

Alderman Beal, of Birmingham, who has been four times Lord
Mayor, the last time in 1905, and who is now chairman of the
City Tramways Committee,28 gave an excellent illustration of this

28 The great majority of municipal tramway systems makes a good
surplus above interest and repayment charges, and many of them, as
will appear in Section III., pay large sums into the public treasury in
relief of rates or to lower the rate of taxation on all property. A few
municipal systems do not realize a net profit. Some are located in
places where private companies refused to operate or tried it and failed,
and some others show insufficient profit to meet interest and capital
charges because of low fares or small traffic or because they are too
recent to have attained a full measure of success. Of the seventy odd
cities and towns above listed, with their populations, 7 did not have
sufficient net earnings to meet interest charges, and 10 more did not
have profit enough to cover interest plus the repayment charges neces-
sary for the cancellation of the debt within the required time. Nearly
all these electric systems are very recent ; 6 were opened in 1904-5, and
9 in 1902-3, leaving only 2 that started before 1902. The total amount
which must be made up in order to cover the remaining interest and
repayment charges after applying the net revenue of the tramway
systems in question is £1,700 per city, or 8d. (16 cents) per capita for
the population served by the tram lines under discussion. Municipali-
ties pay for the maintenance of ordinary roads out of taxes, and these
municipalities pay for the tramways in part out of taxes in order that
the people may have electric transit at average fares of 2 or 3 cents.

24 Manager Fearnley says: "One of the greatest points of munici-
pal operation is the open books, and the steady competition with each
other for results. We get everything that any one else in municipal
business knows. This spread of exact inside knowledge is of very great
value to the progress of both public and private systems."

27 See Vol. I. pp. 270-2.

28 Alderman Beal was for years one of the ablest and most persist-
ent opponents of municipal operation, but is now an enthusiastic sup-
porter of the policy. In several elections the question was made an
issue in Birmingham, and the people returned municipal ownership
councilmen. In 1899 the Council voted, 60 to 1, to operate the lines
when the leases ran out. The arguments were: (1) The need for im-
proved service, electric traction and extension of lines; (2) economy
through consolidation of lines and co-ordination of services; (3) better
treatment for labor; (4) profits for the people; (5) management in

716 NATIONAL CIVIC FEDERATION.

principle. He said that as a director and stockholder of a private
company he found himself looking chiefly at profit, and inclined to
oppose increase of wages and acquiescence in the demands of the
public, but in municipal work he found himself inclined to favor
improved conditions of labor, and readily assent to the wishes of
the public, not looking first at profits as he did in his relations with
the private companies.

Municipal operation of tramways in Great Britain has been
developed for the most part under fairly good political conditions.
In the best cities, like Glasgow, the Council, which elects the Mayor
and the committee on tramways and lighting, is chosen by the
people on much the same principles as those on which the stock-
holders of a bank or railroad elect their board of directors; in
other words, councilors are not elected on party lines as a rule, but
because of their fitness to manage the business affairs of the city.
Even in cities like Sheffield, Birmingham, Manchester and Lon-
don, where members of Council are largely elected on national party
lines, the councils when once elected very rarely act on party lines
in the conduct of the city's business. They do not manage the
tramways or other public utilities on the basis of party politics,
but on the basis of what they regard as sound business in the inter-
est of the whole community. Partisanship is practically eliminated
from the administration of public business. Neither the Council
nor the Tramway Committee asks what the tramway manager's
politics are. No matter what changes take place in the political
complexion of the Council, the tramway manager is safe and free
to act according to his judgment in the employment and discharge
of men, and all the executive duties of his position. If members
of Council exert their influence to get places for their friends, as
they sometimes do, the manager is perfectly safe in disregarding the
recommendations. Such is the testimony of tramway managers
and members of Council (some of whom have had their requests
turned down), and other men who are in a position to know. The
spoils system has no grip on municipal government in Great Brit-
ain, such as it has in our larger cities. There are instances of
influence and favoritism in appointment and employment, but they

harmony with the public interest. The committee which reported in
favor of municipalization said: The companies' view the matter as
it will affect their dividends rather than the convenience of the pub-
lic." Manager Baker, when asked what mainly caused the adoption
of municipal operation, said : " Well, the companies operate only for
what they can get out of it ; the city operates with regard to the public
welfare and makes a lot of money out of it after all."

In 1902 the city had a big fight with the companies in Parliament.
The companies got hold of outside lines by guaranteeing big rentals
and then asked Parliament for compulsory powers to go through Bir-
mingham, but the city won. In 1903 two- companies asked for new
leases, having concluded to transform their lines to electric traction if
the city would give them 24-year terms. Alderman Beal moved to ac-
cept the offers, but his motion was voted down, 50 to 15.

BRITISH TRAMWAY HISTORY. 717

are sporadic, the exception not the rule, and councils take a decided
stand against it.29

Substantial business men of large experience and great weight
in the community, enter the Councils and serve year after year on
the tramway and other committees, without pay or expectation of
financial gain to themselves. The success of municipal operation
in Great Britain has been largely due to these political and civic
conditions.

These conditions in their turn have been largely due to the
development of municipal operation of public utilities. There has
been a mutual interaction.

II— SPECIAL ACCOUNT OF THE SYSTEMS SELECTED FOR SPECIAL
INVESTIGATION IN WHICH A CHANGE HAS TAKEN PLACE
FROM ONE FORM OF OWNERSHIP AND OPERA-
TION TO THE OTHER.

The Commission selected for special investigation, four public
systems — Glasgow, Manchester, Liverpool and the London County
Council — and four private systems — London United, Dublin,
Bristol and Norwich. The Bristol company refused to be in-
vestigated, so that the schedules cover only 7 plants.

The writer visited Bristol, went over the system, met the com-
pany's manager, and some of the leaders in the Council and in the
business life of the city, and made a study of the company's re-
ports and public documents, and interviews with the company's
manager and some leading members of the city government, made it
clear that both the face capitalization and the market capitalization
of the system are greatly in excess of tangible assets. The face
value of stocks and bonds is $6,500,000, and the market values
amount to $7,500,000 (using round figures at $5 to the £), against
real assets of less than $3,500,000, or an excess of market capitaliza-
tion amounting to something like 114 per cent, of real value. In
nine years the city will have a right to buy the plant at structural
value, which is estimated now at $2,500,000. This makes the re-
lation between physical assets and capitalization specially unsatis-

29 Thus the Manchester Council passed an order that men applying
without a note from a Councilman should have preference over those
recommended by Councilmen. The tramway chairman in Birmingham
said : " We have no trouble with politics or influence of Councilmeu
to get places for their friends. Councilmen do send men or speak for
men needing work, but they use no pressure, and if they did it would
amount to nothing. The committee stands by the manager in his entire
control of the force on straight business principles." In one city the
Commission visited we were told that when suspicion arose that certain
Councilmen were getting relatives and friends appointed to positions
on the tramways a leading Councilman moved for an investigation and
the preparation of a list of all such members with the names of the
relatives and friends they had recommended ; sentence of imprisonment
would hardly be worse than the publication of such a list by the press
of an English city after an official Investigation.

718 NATIONAL CIVIC FEDERATION.

factory.1 The London United also refused at first to permit an
examination of its books and appraisal of its plant, perhaps for
reasons similar to those just stated for Bristol, since $10,000,000, or
nearly two-thirds of the London United's capitalization of $16,000,-
000, is excess above tangible assets. But the company finally gave
its assent to the investigation, and every courtesy was extended to
the Commission by the Managing Director, Sir Clifton Robinson,
and other officials of the company.

All the municipalities and companies use the overhead trolley,
except the London County Council. The overhead system being
forbidden by law in its London territory, it has transformed and is
transforming the horse railroads purchased from the companies, to
the underground conduit system, a most expensive but very excellent
system of construction. The schedules cover only the Southern sys-
tem of the County Council's tramways, as it did not begin to oper-
ate the Northern system till April, 1906. The London United has
only four miles of line in London. Most of its lines are in Middle-
sex and Surrey, so it can use the trolley. Norwich is a considerably
smaller system than the others, but was taken to make up the list

1 The company has 200 cars and 51% miles of track on 28^ miles
of street for a population of 360,000 to 400,000. The capital is $6,500,000
--one-fifth of it in bonds. The $2,500,000 of ordinary shares ($50 per)
stand at about $75 on the market, so that they represent $1,250,000
premium, making a total of $7,500,000 of market values. The company
will need at least $6,500,000 in order to make good its capital. Toward
this it has only $642,600 — all it has accumulated for reserves in 30
years — about $535,000 in renewal funds, stocks on hand and other quick
assets, and the plant which does not appear to be worth over $2,500,000.
That is the cost of duplication less depreciation, as shown by estimates
secured by Councilmen considering the question of city purchase. An
examination of the company's capital account indicates nearly the same
value. In 1901, when the system was still all horse traction, the com-
pany had spent £834,392 on the horse lines and their equipment. The
total capital expenditure given in the 1906 report is £1,324,061. Allow-
ing 20% of the horse capital for land and buildings that did not have
to be scrapped, we have a capital outlay of £656,550 for the present
system. Uncovered depreciation for six years at 3%% a year would be
£131,000, giving a present value of £525,500, or about $2,450,000. The
term has nine years more to run, at the expiration of which the city
has the right to take the plant at its structural value, i. e., cost of du-
plication less depreciation. On an electric system of this kind, 17 years
old, the depreciation is likely to be considerable. It is estimated that
the city will not have to pay over the present value, $2,500,000, at the
most, and the Tram Manager and the city authorities agree that the
municipality is practically certain to buy. Leaders in the Council say
the city would be foolish not to purchase, for it can buy at about
$2,500,000 a plant that is paying interest and dividends on three times
that amount. If the plant were closed out now at the said structural
value there would be a total of $3,677,600 of physical assets with which
to meet $6,500.000 of face values and $7,500,000 of market values of
stocks and bonds. At the present rate of accumulation about $500,000
would be added to the reserves in the next nine years; but that would
not fill the gap. The only way to do that appears to be for the company
to increase its business very greatly or cut down its dividends. For the
year ending Dec. 31, 1905. the total tramway receipts were $1,080,000,
and the receipts from busses and carriages were $195,000. The total
dividends were $300,000.

BRITISH TRAMWAY HISTORY

719

because tramway companies owning and operating the lines in Brit-
ish cities of large size are getting very scarce. The Dublin and Bris-
tol companies each have the whole tramway system of a large city
and therefore resemble the municipal systems of Glasgow and Liver-
pool more closely than is the case with the other two companies.

The company systems have not undergone the change from
one form of ownership to the other, which is necessary to bring out
the historic contrasts with which this branch of the inquiry is
concerned. The contrasts between existing systems are examined
in the tramway sections of volume I. We are concerned here with
the history of the selected public systems where a change in the
form of ownership and operation has taken place.

Glasgow.

Glasgow is the second city in the British Empire in respect to
population, and the first in respect to public ownership. It is to
public ownership very much what London is to finance. It is the
metropolis of Scotland — a manufacturing city of about 835,000
population and an area of 12,382 acres — very compact,1 very pro-
gressive, very full of Scotch common sense, co-operative spirit, civic
honesty and public enterprise.

The city built the tramways and leased them for operation.
The first line was constructed by the city in 1871 and leased for
23 years, from July 1st of that year. Subsequent lines were also
built by the city and leased for such periods that all concessions
would expire on the same date, July 1, 1894.

The leases required the company to pay interest and sinking
fund to cancel the cost of construction by the end of the term ; also
4 per cent, on construction cost for renewals; $750 per mile per
year for the use of the streets ; all expenses of paving and repairing
the roadway between the rails and 18 inches beyond, etc.2

From a financial point of view the leases were fairly success-
ful.3 But from other points of view than the financial the leasing
plan was not successful. The city desired to have the tramways

*The following table illustrates the density of British cities as
compared with ours :

Glasgow . . .
Edinburgh. .
Leeds

Area In
Acres.

12,382
10,908
21,596

Popula-
tion 1906 '

835,625
341,035
463,495

\ation
per
Acre.

67
31
?,1

St. Louis...
Boston ....
Philadelphia

Area in
Acres.

39,276
24,613

81,828

649,320
602,278
1,441,735

tion
tcr

16
25
17

Birmingham
Bristol
Manchester.
Liverpool . .
London —

12,639
17,000
19,893
14,912

74,880

548,022
363,223
637,126
739,180
4,536,541

43
27
32
49
60

Cleveland ...
Indianapolis
Washington.
Chicago . . .
New York..

25,378
19,165
38,406
114,932
209,218

460,327
219,154
307,716
2,041,185
4,113,043

18
14
8
17
20

552,816 9,834,758 17

184,210 8,464,257
2 See Schedule I.

8 The promoting company which took the lease in 1871 sold out to
the operating company for £315,000, clearing £150,000 or more, as the

720 NATIONAL CIVIC FEDERATION.

keep pace with the growth of population, provide every section with
adequate facilities, and extend the lines into suburban districts ; the
company wanted large profits, and did not favor extensions into less
profitable districts. From the beginning the company opposed the
extensions the city desired to make. We quote from a report issued
in 1894 by the Glasgow Tramway and Omnibus Company: "The
system of Glasgow tramways authorized in 1870 extended only to
21 miles, several of the routes stopping short of the city limits, and
in 1872 the city proposed to extend these lines to its boundaries,
and to add many miles beyond the city itself. In the same year
three other separate schemes proposed to come from various places
outside and join their lines to the city lines authorized by the act of
1870. The tramway company opposed at great expense the city
and other bills. The city's bill itself sought extension of no less
than 21 miles in length, in addition to those authorized by the act
of 1870, but they were unsuccessful, and only the financial clauses
of their bill were sanctioned."

In 1889, five years before the expiration of the leases, negotia-
tions for renewal were begun, but the company and the city found
it hard to agree on terms. In addition to the difficulty about ex-
tensions, the labor question and the question of mechanical traction
became serious matters of dispute.

The tramway men were ill-clad, overworked, underpaid, and
dissatisfied. They were working 11 and 12 hours a day, and not
infrequently 13 or even 14 hours, and did not receive over $5 or $6
a week. A deposit of $10 was required to obtain employment.
Fines were imposed for reaching their destination too early or too
late, for standing too long or not long enough, and for other offenses.

real investment did not exceed £165,000 (Schedule I). The operating
company paid on its inflated capital half yearly dividends of 5% to 7%
for 13 half years, or at the rate of 10% to 14% a year, and 10% to
12% for 10 half years or 20% to 24% a year. The largest dividends
were in the eighties and the lowest in the early years, December, 1872, to
December, 1875, being passed without any dividend at all. The com-
pany might have made even more than 16% to 24%, water and all, if
it had not set itself so persistently against extensions and improvements.
It had an uncomfortable end because it negelected to write off any de-
preciation till two or three years before the close of the lease, when it
was known that it would not be renewed, and then it was too late
to cover its capital. After its losing fight with the city it went into
liquidation with a heavy handicap.

From the payments made to it by the company the city was able
to pay for renewals, clear off most of the capital debt and pay some
£69,600 to the " common good," an average of £3,000 per year during
the lease. In 1894 £201,470 of the total capital expenditure (£344,965)
had been cleared off, leaving £143,495 outstanding. The lines were re-
garded as more than covering remaining debt, although they had very
greatly depreciated at the end of the lease, the rails having had an
average of 9 years' wear, and the points and crossings generally being
in very bad condition. On part of the system the company had not
kept up ordinary repairs, as it should have done, and an arbitrator de-
cided that the track was not in condition to fulfill the company's obliga-
tions, and fixed the portions to be repaired by the lessees. The company
paid the city £18,400 to settle the claim and left the city to do the re-
pairing itself.

BRITISH TRAMWAY HISTORY. 721

Men were discharged for being too prominent at a meeting to con-
sider striking because of their grievances. The city asked better
treatment for the men. It specially demanded that the hours should
be reduced from 77, 84 and 91 or more per week to 60 per week.
The company finally agreed to adopt electric traction, but refused to
adopt the policy demanded by the city in respect to labor.4 It said
that it was treating its men as well as other tramway companies
treated their employees, and it could not afford to do any better.
The city was determined to secure fair treatment for the men, and
this, according to Mr. John Young, the first manager of the Glas-

*The city offered to continue the leasing system on the following
conditions: "To provide that the conductors and drivers should not
work more than 60 hours per week ; to secure their being properly
clothed and that they should have sanitary conveniences at suitable
places; to reserve full power to the city to adapt the tramways to
mechanical motors and also for constructing additional tramways ; to
restrict the use of advertisements on the cars; to provide that the city
should be in a position to enforce performance of the obligations con-
tained in the conditions." It was also proposed to lease for five years
at a time instead of twenty-one years or more at a time, and to bind
the company not to alter the scope of their business in such a way as
to make it impossible for the city to know the facts as to cost, etc.,
relating to their own system.

In a letter dated Oct. 7, 1891, a copy of which is before the writer,
the company offered to transform the lines gradually to mechanical
traction, beginning as soon as it should be determined what motors should
be used. The other conditions proposed by the city were ignored.

The Tramway Committee reported that the company's offer was
limited to the introduction of mechanical motors, that " no reference
was made to the conditions of let so lately agreed on by the Corpora-
tion (City Council) and placed before the company, and that the com-
pany had already extended the scope of its business, having entered
on the working of other tramways and acquired a general hiring
business, so that the separation of accounts and the distinguishing of
the expenditure pertaining to the Glasgow tramways from the other
business of the company would now be difficult if not impossible."

We quote from the minutes of the Glasgow Council, Oct. 27, 1891,
page 377:

On the suggestion of the chairman, the committee, after con-
sideration, resolved to recommend the Town Council to approve of the
following resolutions, viz. :

1. " That, at the expiry of the lease now current between the Cor-
poration and the Tramway Company, the whole existing tramway sys-
tem, and the traffic thereon, shall be managed and controlled directly
by the Corporation, and that it be remitted back to the committee to
negotiate and, if deemed expedient, to make arrangements with the
present lessees for the acquisition of their stables and plant, or such
portions thereof as may be necessary for carrying on the working of the
tramways on the expiry of the lease."

2.. " That the committee be instructed further to consider and re-
port in what manner tho tramway system can be best worked by
mechanical motors, and also to make whatever arrangements may be
necessary for testing, in a practical manner, during the currency of the
present lease, any method of mechanical traction of which they may
approve."

Bailie James Martin dissented.

Approved of by the Town Council on 12th November, 1891.

An amendment to continue negotiations with the company was
lost, 49 to 7.

Vol. HI.— 47.

722 NATIONAL CIVIC FEDERATION.

gow Tramway Department, was the main cause of municipalization.
There were also many complaints of the service given by the com-
pany. The cars were said to be too few, not well cleaned, and
poorly lighted at night, and the fares were thought to be too high,
especially in view of the dividends that were paid. If reasonable
extensions were to be made, workmen were to get fair treatment,
service to be improved, fares lowered, and public interests adequately
guarded, it was clear that a radical change in the relations of the
city to the tramways must be secured. Even if satisfactory terms
for another lease could be agreed upon, new disputes and difficulties
would be likely to arise, and new resistance to the progress de-
manded by the city, especially toward the end of the term. There
seemed to be no way to secure due dominance of the public interest
in the management of street transportation, except for the city to
operate the lines.

In the municipal elections of 1890 and 1891, especially the
latter, municipal ownership became a test question. Public opinion
was strongly in favor of municipal operation of the tramways, and
November 12, 1891, by a vote of 49 to 7, the Council rejected the
company's terms as unsatisfactory, and finally decided that the
city itself should work the lines. Municipal operation began July
1, 1894. The old company put its omnibuses on the car routes to
compete with the city tramways. In fact, there were more omni-
buses on some routes than cars. The citizens, however, preferred
the cars, and the attempted opposition resulted in a heavy loss to
the company.

The city introduced 1-cent fares (the lowest company fare
having been 2 cents) and lengthened the routes, reducing average
charges about one-third. Other changes were made later, until the
total reductions amount to more than one-half. Instead of working
the men in one shift 11 to 14 hours a day and 7 days a week, as the
company did, the city divided the force into two shifts on a ten-
hour day, with 60 hours per week, and a little later (1901), a
9-hour day, with 54 hours per week. Wages were raised 15 to
25 per cent., with progressive increments year by year, so that the
men now get 68 to 100 per cent, more per hour than under the
company regime.5 The city greatly extended the lines, transformed
them to electric traction,6 and has made a good profit each year,
part of which has been paid into the public treasury, and part
used to pay off the capital debt, extend lines, make improvements
and cover further reductions in the fares.

"The joint report on labor and politics by Prof. Commons and Mr.
Sullivan (Schedule II.) says the Glasgow Company worked the men
14 hours a day and paid them 19s. a week, or 2/10 per day. The present
management states the former company pay of conductors and drivers
as 3/ to 3/6 per day. We have taken the latter statement as being the
most favorable to the company. The city started the men in 1894 at
4/ a day. In May, 1895, a scale of wages was adopted running up to
4/4 per day or 26s. per week In the fourth year of service. In Septem-
ber, 1896, the scale was changed so that the men would get 4/4 in the
third year and 4/6 thereafter. In August, 1899, the 4/4 was moved up

BRITISH TRAMWAY HISTORY. 72.J

to the second year, the 4/6 to the third and a new rate of 4/8 per day
or 28s. per week was adopted for the fourth year. In June, .1901, the
scale was again advanced for motormen so that they would get 28 / the
first half of the third year, 29/ the second half and 30/ in the fourth
year, and in February, 1905, the present scale wa» established, which
is us follows :

Increase of wage per hour
Per day. Per week. above oumpa^y wage.

Above company'!

minimum.
Above company's

average.

Above company'^
maximum.

1st year J 1st 6 months. .4/ 24/ 78%

* 2d 6 months.. 4/2 25/ 85%

3d 6 months.. 4/4 26/ 68%

4th 6 months. .4/6 27/ 74%

5th 6 months . . 4/8 28/ 76%

6th 6 months. .4/10 29/ 84%

2d year.
3d year.

4th year.

30/

Thereafter 5/2 31/ 100%

These wages are for a 9-hour day and a 54-hour week. They are
low according to our standards, but they are high according to British
standards, and they run from 68% to 100% more per hour than the
company paid. In addition to their regular pay the motormen receive
a premium of 26/ for 26 weeks freedom from accidents. The men have
a vacation each year on full pay and two free uniforms a year, one for
summer and one for winter wear.

' In order to act upon full information in deciding what form of
motors it would be best to use, a sub-committee and the General Man-
ager and Engineer were sent to the Continent and America to investi-
gate and report on the different systems of mechanical traction. Eleven
cities of Europe were visited, including Paris, Berlin, Dresden, Vienna,
Hamburg, etc., also fourteen cities in the United States, including Bos-
ton, New York, Philadelphia, Detroit, Cleveland, Chicago, etc., and two
cities in Canada — Toronto and Montreal. The report 'was in favor of
the overhead trolley, and that system was adopted.

When Glasgow began to move in the matter of electric traction
British tramways were practically all in the horse-age still.

The City of Leeds, which municipalized the tramways Feb. 2,

1894, had a little line 3.7 miles long, worked experimentally by elec-
tricity. It was the continuation of an experiment begun by the city
in 1891. That was the first overhead electric tramway in Great Britain,
but prior to 1891 Blackpool had put in a line on the underground con-
duit plan. That was the very first electric line in the United Kingdom,
according to the Board of Trade, and it was put in by a municipal tram-
way management. There was a short line worked by electricity In
Birmingham in 1891 — 12 cars out of a total of 152, all the rest being
drawn by horses. The Hobart Electric Tramway Co. began operating
SV2 miles of electric line Sept. 21, 1893; the Brighton & Rottingdean
Seashore Electric Tramroad Co. opened its line in September, 1896;
the South Staffordshire Tramway Co. worked 8 miles by electricity, the
first report appearing in the Board of Trade returns in 1894. The
Dublin United did not begin to operate any part of its system by elec-
tricity till 1898 ; the London United was all horse in 1901 ; 1902 no re-
turns; 1903 nearly all electric. The Norwich Electric began in 1900.
The Bristol trams were still all horse at the beginning of 1903, accord-
ing to their own report.

In Garcke's Manual for 1896 and in subsequent issues the " British
Electric Traction Co., Ltd.," (Garcke's own company) Is marked as the
" pioneer." The company, however, was not even registered till Nov. 7,

1895, as the manuals show, and how far it was from being the pioneer
in electric traction is abundantly evident from the facts above stated.
The City & South London Railway Co. has been presented for tramway
honors as opening a short electric line In 1890. But It was an under-
ground railroad, not a tramway, and not included in the Board of
Trade's street railway returns. It is said that a 6-mile electric line was
put in at Port Rush in the north of Ireland in 1883, but no such tram-

724 NATIONAL CIVIC FEDERATION.

The city put on more cars at once, ran them earlier and later
and at more frequent intervals. The company had 220 cars; the
city began with more than 300 in 1894, and now it ha» nearly 800
cars, or about 5 cars per mile of track.

The municipal management made a special effort to improve
the workingmen's service by adding more special cars, both morn-
ing and afternoon. Very shortly the workers were given the priv-

way appears in the Board of Trade lists. The above statements as to
the first electric lines in the Kingdom were made in answer to direct
questions at the interviews given by the Board of Trade officials to our
Commission.

Why the adoption of electric traction should have been so long de-
layed in Great Britain may be no easier to understand than the slow-
ness of British landlords about putting in elevators, and their absence
even yet from so many buildings where they ought to be, or Great
Britain's failure to adopt a rational system of public schools, or the
willingness manifest in all the British cities, even London and Glasgow,
to continue with the old-time buildings instead of replacing them with
handsome and convenient modern structures not necessarily sky-scrapers
(we get too far from the ground perhaps in some of our cities) but some-
thing better than the old-time four to six-story buildings that line most
of their streets to-day.

The cities declare that they would have had electric traction long
before they did if the companies had not held back and made it im-
possible for the cities either to secure electric traction or buy them out
on reasonable terms until their franchise terms expired.

The companies contend that short franchises were responsible for
the failure of the former companies to adopt improvements. But the
franchises are no longer now than they ever were, and yet existing
companies have adopted electric traction and made other improvements
the former companies said they could not make without long franchises.
The short term proposition cannot explain why companies did not even
propose the adoption of electric traction and ask for conditions that
would justify the expenditure from their point of view. The municipali-
ties have shown that even in the first four or five years a well managed
electric system will yield a good profit above working expenses and de-
preciation so that the companies, if they had been as efficient as the
municipal managements, could have made electric traction a paying in-
vestment, even if they had been obliged to sell out at real values in
five, seven or ten years, let alone twenty-one years. The Liverpool com-
pany had still eighteen years to run without any extension of lease ;
yet it appears to have been absolutely inert — not even a suggestion from
it that electricity should be adopted as the motive power in place of
horses. Many cities were willing to grant franchises extensions if the
companies would adopt electric traction, but they would not. They
wanted unreasonable conditions. The cities would not grant terms of
thirty, forty or fifty years, for such terms were regarded as contrary to
public policy. If the companies could not be progressive on a short-
term franchise, then they could not be progressive under the conditions
essential to safeguard the interests of the public. The fact that a
municipal plant can be safely trusted with an unlimited franchise, and
is therefore free from the risk, real or imaginary, that attaches to the
short term, is one of the advantages of municipal ownership. But it is
not the real reason for the progressiveness shown by municipal systems.
The moving force is the desire of the community that the service should
be improved, a desire, which in the case of municipal systems, is ren-
dered effective by the fact that the management is responsible to the
people, while, In the case of company systems, that desire is rendered
Ineffective In so far as it conflicts, or is thought by the companies to
conflict, with profits.

BRITISH TRAMWAY HISTORY. 725

ilege in the afternoon, between 5 o'clock and 6.30, of riding on top
of any car, on payment of the workmen's fare, and in 1901 the
city reduced all fares to the level of the former working class
fares. Since then the workers ride at workmen's fares or less at
any time and on any car.

The number of car-miles run per year has grown from
4,944,-204 in the company's last year to 18,886,910 for 1906, almost
a fourfold growth in a dozen years under municipal management,
or an increase of 280 per cent, against an increase of less than 70
per cent, for the last dozen years of company management. The
passenger traffic also has nearly quadrupled under municipal man-
agement in 12 years, while under company management it did not
even double in that length of time, the actual increase being less
than 60 per cent, between 1881 and 1894.

The following table compares a decade of company manage-
ment with a decade of municipal ownership, beginning with the
first full year of city operation, 1895-1896 :

TABLE 7.
Cars

A decade of company
management.

A dtcade of municipal
owners/tip.

Company
operation.
1884.
233

Last year
of company.
1894
220
4,944,204
53.729.472

FirstfuU
Ttarcfeity
optrafion,
1995-6.
337
6,831,379
86.462,594

Last year,
1906,
r«turnt.
783
18,886,910
208.059.833

Car-miles

3,853,156

Passengers .

42.397.671

Since the city began to operate the tramways in 1894, they
have paid in local taxes and contributions to the " Common Good,"
£1,771,000, or about $8,600,000, and the net profits of the tramways
above interest, rents, depreciation and taxes, have amounted to
£1,226,402, or nearly $6,000,000.

The benefits to the traveling public through the savings re-
sulting from reduction of rates, are estimated at nearly $4,000,000
for the year 1906, if we compare the municipal charges with those
of the former Glasgow company in 1894T or more than $2,260,000,

7 The old company had no %d. fare, and in view of the fact that the
companies still operating do not make any rate lower than Id., It is
fair to presume that the Glasgow company would have been equally
Innocent of reducing charges to %d. if it had remained in possession.
This means that the 61,058,860 passengers, who paid £127,205 in %d.
fares in 1905-06, would have had to pay double the amount to the com-
pany for the same service — a saving of £127,205 on the ^d. traffic.
On the Id. fare 125,044,602 passengers paid £521,019. The city trams
give an average of 2.3 miles for a penny fare, against 1.12 miles given
by the company. In other words, the company charge was more than
100% above the city charges — it would cost more than 2d. on the av-
erage to go the 2.3 miles the city gives for Id. Assuming that the com-
pany would have reduced charges in the same ratio that it did before
1894, i. e. 1.28% in a dozen years, the saving on the Id. traffic would
be £515,500. For all the routes from iy2d. to 3d. the company's charges
were also more than double the city fares for the same distances. That
means another saving of about £158,000 in 1906 as against the com-
pany's rates for the same service — making a total of £798,000 a year as
the amount of reductions in fares on last year's traffic. Another method
of estimate is on the basis of the average charge per mile for the whole

726 NATIONAL CIVIC FEDERATION.

if we compare the Glasgow charges with the present charges of the
Dublin company,8 which is unquestionably the best managed tram-
way system among those that are fairly comparable with the
Glasgow system in respect to location and general conditions, inde-
pendent of the management.

The total savings from reduced rates for the whole 12 years
of municipal management are estimated at $23,000,000 on the old
company basis, and at $15,100,000 on the Dublin basis of com-
parison.9

The total benefits to the public from municipal operation of
the tramways, including payments to the " Common Good," addi-
tional net profits and savings from reduction rates, amount to
nearly $29,000,000 in 12 years, taking the former company as a
basis of comparison in estimating the savings from reduction of
fares; or more than $21,000,000 if the present Dublin company
is taken as the basis for comparison.10 The amount paid in local
taxes by the municipal tramways is not included, because a part of
that amount at least would have been paid in taxes by the company,
had it continued to control the service.11 We will sum up the
facts in Table 8.

service. The management estimates that its charges average .45d. per
mile against .89d. for the company. That is, the company's charge wag
98% above the city's charge on the average of the whole traffic — the
traffic receipts in 1906 were £813,768, and 98% of that amount is £769,500
— the reduction in fares for 1906 on the basis of the average charge per
mile — a result not very different from that obtained by the more detailed
method first applied.

8 The Dublin company has no %d. fare so the %d. passengers would
have had to pay double under the Dublin scale, or £127,205 more than
they did pay. For practically all the rest of the tariff, as we have
seen in volume I, the distances given in Glasgow are 50% or more
greater than for the same fare in Dublin. To go a given distance in
Dublin within the 3d zone, where the great bulk of the traffic lies,
you must pay at least 50% more fare than in Glasgow. That would
amount to a difference of £340,000 on the Id. to 3d. business of Glas-
gow, making a total of £467,000 in Glasgow's favor as compared with
Dublin.

8 In the years preceding 1901 (the date of the second great reduc-
tion of fares) the department estimated that fares were 33% lower
than under the company's regime, i. e., passengers would have had to
pay at the company's rates 50% more than they paid under the city
schedule. From 1902 to 1906, inclusive, the city fares have averaged
about half the old company rates, so that on the company scale passen-
gers would have had to pay nearly double (about 98%) more than on
the city scale of charges. On these bases the difference between the
fares paid the city and the charges for the same service on the company
scale would be about £4,720,000 for the 12 years of municipal operation

A similar comparison with Dublin gives a difference in favor of
Glasgow of about £3,120,000, or about half the total traffic receipts in
Glasgow from 1895 to 1896 inclusive. The estimate is probably too low
for the average fare in Dublin was 3.24 cents in 1895 against 1.88 cents
on the municipal trams of Glasgow, and now, though the Dublin av-
erage fare has fallen to 2.48 cents, the distances for a given fare are
60% to 100% more in Glasgow than in Dublin.

"This is probably the fairer basis of comparison. The estimates
that have been made by comparing the charges year by year with those

BRITISH TRAMWAY HISTORY. 727

TABLE 8. — PUBLIC PAYMENTS, PROFITS AND SAVINGS.

Paid in local taxes in 12 years £982,000

Paid to the Common Good in 12 years 789,000

Net profits above interest, taxes, rents, &c., actual de-
preciation,12 1906 175,000

Net profits above interest, taxes, rents, &c., actual

depreciation,12 in 12 years 1,226,402

Estimated savings by reduction of fares, 1906 —

On old company basis 796,500

On Dublin basis 467,000

Estimated savings by reduction of fares, 12 years —

On old company basis 4,720,000

On Dublin basis 3,120,000

Net profits plus estimated savings by reduction of
fares —

On the former company basis 5,946,402

On the Dublin basis of comparison 4,346,402

The benefits of municipal operation to labor are estimated at

$515,000 a year, distributed as follows:

Reduction of hours $288,000

Increase of wages:

Eegular force $158,400

Spare men 24,000

182,400

Holidays on pay 14,400

Free uniforms 30,240

Total $515,040

Employment is by competitive tests, and no political influence
is allowed to interfere in any way with the efficiency of the force.

of the old company are reasonably fair for the early years of municipal
management, but they are not wholly fair for the later years because
it is not to be presumed that the company would have made no reduc-
tion at all in its charges during the 12 years from 1894 to 1906 had it
secured a renewal of its lease, although as a matter of fact the company
did make almost no reduction of charges during the 12 years preceding
1894, the average fare being 2.33 cents in 1882, and 2.30 in 1894.

11 We say a part of the taxes would have been paid for the attitude
of the company toward extensions indicates that it would not have en-
larged the system nearly so much as the city has, and therefore would
have paid a smaller amount of taxes than the municipal system.

"Net profits are found by deducting from income the following
items: (1) Operating cost including maintenance and taxes; (2) in-
terest on loans; (3) rent of leased lines; (4) parliamentary expenses,
if any; (5) depreciation.

The actual depreciation is found by taking the depreciation of th«
electric system according to the determination of the Commissioner's en-
gineers (averaging 4.7% a year) and adding the whole cost of the
horse system used by the city before electric traction was put in. In
the case of Glasgow the whole value of the horse system, £186,637, was
written off out of revenue during the first eight years of municipal op-
eration, and in addition to this £600,000 has to be deducted to cover
depreciation on the electric system down to June, 1906.

728 NATIONAL CIVIC FEDERATION.

There has been no friction between the management and the em-
ployees in the whole 12 years of municipal operation, neither has
there been any effort on the part of the employees to bring pressure
on the Council, or from any sort of political organization to push
their special interests. Such action on the part of municipal em-
ployees has been predicted by the opponents of municipal ownership
on both side of the water, but it has not yet materialized, and
Glasgow's long experience gives no hint of danger in this direction.

There are no politics in the management of the Glasgow tram-
ways. There is no street railway graft in Glasgow; no lobbyists
endeavoring by questionable methods to get special privileges for
public service companies; no high-priced attorneys squeezing the
unearned increment out of the monopolies; no advertisements even
on the cars — perhaps nothing else so clearly shows how far the
public street railway management is from being dominated by com-
mercial motives — the city foregoes $50,000 a year, which it could
get in a lump sum for the privilege of advertising on the cars, in
order that the people's carriages may have a little added dignity
and beauty. No merchant would sell space to advertise Pears' soap,
or Carter's Little Liver Pills, or Mennen's Borated Talcum Powder
on the sides of his carriage or automobile, and the municipal man-
agement believes there is no reason why the public's carriages
should have less dignity than those of the individual merchant.

Years ago, in the early days of municipal management, in
Glasgow, the writer asked John Young, the General Manager of
the tramways, why the city had sacrificed £10,000 a year for the
sake of abolishing the advertisements from the cars. He said it
was done for esthetic reasons. Pointing out of the window of the
tramway office, he said : " Over 400 cars per hour go by this
window, or any given point on the principal streets and the ap-
pearance of these cars must have a decided effect upon the esthetic
development of the people."

The total receipts of the city tramways in 12 years have been
$30,610,000, and the total working expenses have been $18,375,000.
Perhaps the most interesting of the financial facts relating to the
Glasgow tramways are: (1) That it has paid off over $2,400,000
of the tramway debt (May 31, 1906), so that the remaining debt is
less than the structural value of the plant, plus the cash and stores
on hand, by an amount exceeding $4,000,000. And (2) that the
$5,600,000 provided for depreciation and renewals down to May
31, 1906, is at least $1,500,000 more than the actual depreciation
to that date, according to the valuation and rate of depreciation
fixed by the Commission's engineers.13

We were told before we sailed for the British Isles, that there
was a strong reaction against municipal ownership in Glasgow and
other cities in Great Britain; that there was vigorous opposition
in the Glasgow Council, and that prominent business men had
formed a " Citizens' Union " and a " Eatepayers' Association " on
purpose to fight municipal ownership. It was also impressed upon

"See Schedule III.

BRITISH TRAMWAY HISTORY. 729

us that the city tramway management had neglected to extend the
lines into suburban districts and had therefore " failed to distribute
population/' and was responsible for the density of population in
the congested areas of the city.

In view of this, especial pains were taken to look up the oppo-
sition in Glasgow, and hear what they had to say, and also to in-
vestigate the matter of extensions and the relations of the tramways
to the problem of distributing population. We met the " most
vigorous opponent" of municipal ownership in the Council; there
were only three or four alleged opponents altogether among the 80
members of that body. Some of the Commission dined with the
man who has for years been the leading spirit in the " Ratepayers'
Association," and signed statements were obtained from the Sec-
retary of that organization and the organizer of the Citizens'
Union.14

The " most vigorous opponent " said he agreed to municipal
operation of water, gas, electric light and also tramways in the
city, but not outside. He objected to municipal operation of tele-
phones in Glasgow, because of the competition involved and the
necessity of paying for both telephone services, and he was also
opposed to municipal banking, insurance, tailoring, etc., and all
other proposals looking to the extension of " municipal trading "
into the field of competitive commerce or manufacturing. This
seemed reasonable, except the objection to extension of the tram-
ways into suburban districts — we had been assured that it was the
city tramways, not their opponents, that objected to extensions.

"Aside from the matters dealt with in the text, it was stated in
criticism of the city tramways that streets have been widened for the
tramways at the expense of the city, Hope street being named as an
instance ; that the street department replaces the paving for the tram-
ways, thus charging the cost to the wrong department ; and that the
tramways and electric light departments are worked under separate
committees. At one of the commission's hearings evidence was taken
on these points, and it developed that no street had ever been widened
for the tramways in Glasgow. There were no tramways on Hope street,
and no intention of putting them there. The tramway department had
stated its willingness to make a handsome contribution to the street
Improvement fund for the widening of Hope street in case it should
put trams on that street, but did not expect to do so probably for ten
years to come. When a street was lowered to escape a bridge the tram-
ways paid the cost, and all street costs incurred for the benefit of the
tramways have been paid by that department.

The statement that the city street department replaced the paving
for the trams turned out to be incorrect. No other department than
the tramways department pays any expenses that belong to the trams,
or does any work free for the trams.

The proposition for a joint committee to operate both the trams
and electric light departments was lost by only one vote — Lord Provost
Chisholm casting the deciding vote. The impression among city officials
in Glasgow now is that it would have been better to unite the two de-
partments under one committee, with a subcommittee to generate elec-
tricity, and another to manage the trams. " But after all," they say,
" there are some advantages in the present arrangement for there Is a
healthy rivalry between the two committees, and both departments are
large enough to buy coal and supplies at the lowest rates and obtain
and use their labor to advantage."

730 NATIONAL CIVIC FEDERATION.

On inquiry, it appeared that the objector in question has large
railway interests and does not want the trolleys to parallel the
railroads on suburban routes; the railroads have already had to
take off a number of trains because of such competition, and they
do not desire any more of it.

The " Ratepayers' Federation " was " formed to oppose the
Glasgow Housing Scheme of 1902, when the city sought power to
build houses on a huge scale for the working classes." The scheme
was defeated. The Federation has also opposed municipal com-
petition in the telephone service, and in the supply of electrical
appliances, gas fittings, lamps, cooking stoves, and other municipal
undertakings in competition with private enterprise.

The Citizens' Union was formed in 1898 " on non-political
and unsectarian lines for furthering the good government of
Glasgow, by securing the election of suitable persons to the Town
Councils." The leaders of the two organizations, " Citizens'
Union" and "Ratepayers' Federation," are largely the same, the
same men organized both, they have their offices together, and they
stand in substantially the same attitude toward municipal trading,
but the Citizens' Union has been the most active in local affairs.
It is opposed to the establishment of municipal cemeteries, munici-
pal insurance, municipal banking, and municipal house building,
and has also " placed its views before the Town Council in opposi-
tion to the extension of the tramways into the country,"15 but
"favors clearing slum areas and municipal gas, water, electricity
and tramway supply."16

Here again we find that the alleged opponents of municipal
ownership are not in opposition to municipal ownership as the
phrase is used in this country, but, on the contrary, " favor munici-
pal gas, water, electricity and tramway supply." What the Citi-
zens' Union and the Ratepayers oppose is not the municipal owner-
ship and operation of municipal monopolies, but the invasion of the

" From the signed statement of Robert Bird, who organized the
Citizens' Union, worked with Mr. Arthur Kay in forming the Rate-
payers' Federation, and is now the secretary of the latter association.

In his chapter on British municipalities Professor Goodnow states
the case in regard to the " Ratepayers' Federation " and the " Citizens'
Union " with great clearness and accuracy as follows :

"The policy of these associations, as stated by their secretaries,
has not been to oppose the municipalization of trams, gas, electric and
water supply. Indeed, they have no criticisms to make on the adminis-
tration of these enterprises in Glasgow, when confined to their proper
spheres. At the time the Citizens' Union was organized, in 1898, the
socialistic program was in full swing, and there were propositions
seriously considered by the Council of extending municipal ownership
further — to housing, banking, insurance, cemeteries, tailoring, baking,
etc. It was these extensions that the Union was organized to combat."

As a matter of fact, the tailoring and baking schemes never had any
chance of passing any way. The number of Socialists In the Council
has always been small.

18 The exact wording is: "We favor clearing slum areas and
municipal gas, water, electricity and tramway supply." " We favor "
changed to " favors " in order to unite the clause with the quotation
relating to extensions.

BRITISH TRAMWAY HISTORY. 731

field of competitive business — as banking, insurance, storekeeping,
etc. (proposed by the Socialists and a few of the more radical
members of the Council), "huge house building schemes for hous-
ing the working clases," and " unwise and unnecessary extensions
of the tramways into the country."

So it is the business men who hold railway stocks and own
real estate in the city who object to extensions of the street railways
into suburban districts, which they fear may diminish the value
of railway stocks and city property. But in spite of the objections
of railroads and city landowners, the department has pushed its
lines out into the country until it has suburban extensions more
than 16 times greater than those of the company period.

EXTENSIONS.

In the company period during the 12 years preceding munic-
ipal ownership, 8 miles of extensions were made. In the 12 years
of municipal operation, the extensions of the tramway lines amount
to over 50 miles. In the last 6 years of the company period, from
1888 to 1894, there were no extensions at all. When the city took
possession in 1894 it began at once to extend the lines. On pages
26 to 28 of the Official Eeport for 1906 there is a list of all the
tramway lines, with the date of opening each section, its length
and location, whether inside or outside of the city limits. Prior
to July, 1894, there were 28.3 miles of line inside of the city, and
only 1.8 miles outside. In 1906 there were 51.1 miles of line inside,
and 29.4 miles outside,17 practically all double track, both inside
and out (Table 9). The situation in a nutshell seems to be this:
The company was opposed to extensions, according to its own state-
ment quoted above, and during its 23 years only 1.8 miles of line
were built outside of the city, notwithstanding the efforts of the
city to secure extensions. The municipal tramways on the other
hand, favor extensions, and have built 27.6 miles outside the city
in about half the period covered by the company control ; a rate of
suburban extension under municipal management 30 times the
rate for the company period.

TABLE 9. — SUBURBAN EXTENSIONS.
Total miles Miles of line Annual rate of suburban

of line. In city. Outside. extension, miles.

1894 30.1 28.3 1.8 .078 for company period.

1906 80.5 51.1 29.4 2.3 for city period.

Miles.
Total extensions in city and outside under company in 12 years

preceding municipal operation

Total extensions in 12 years of municipal operation 50

"The Glasgow ratio of extension in suburban areas compares
the outside mileage being, however, Inside of Greater Boston. The
Cleveland companies have only 17 per cent, of their track outside the
city. The Philadelphia Rapid Transit Company, operating practically
all the lines in that neighborhood, has 12 per cent, of its track outside
the city. In the municipal tramway system of Glasgow 37 per cent,
of the track operated is outside the city in suburban areas; and in
the Manchester system 28 per cent, of the track is outside.

732

NATIONAL CIVIC FEDERATION.

The company's longest route was 3.23 miles. The city soon
ran out to 5.2 miles, then to 7 miles, and since 1902 the longest
route has been stated as 12.93 miles.

TABLE 10.

The company f
had only fourj
stages as here "I
given I

STAGES AND FARES, BEFORE AND AFTER.

No. ofstagu Average
distance,

Fares.
Id.

80
.20

3.23

2d.
3d.

class.

mile*.

Fare

r 161

.58

yad.

152

2.30

Id.

120

3.48

i^jd.

The city i

100

4.59

2d.

has 12

5.88

2M,d.

classes

6.90

3d.

of stages-'

8.11

3y2d.

as here

9.19

4d.

shown. ...

10.15

4V&d.

11.14

5d.

12.00

5y2d.

12.93

6d.

The city still continues to extend its lines. In the last five
years, 1902-1906, extensions have amounted to 36 miles.

The rapid extension of the tramway lines into suburban areas,
together with the great reduction of fares, has led to a great in-
crease in the erection of dwelling houses in the vicinity of Glasgow
in the last few years. In one suburban district, Clydebank, 1904-
1906, 2,800 houses were erected and 600 more were in course of
construction. In another neighborhood, the upper ward of Eenf rew,
3,269 houses have been built in five years. In all we have a list of
13,705 houses erected in the vicinity of Glasgow in the last six
years. Eesidents say there never has been such a period of sub-
urban building in the history of Glasgow. Property owners in the
city see in all this a danger to their rental values, and are naturally
inclined to oppose extensions which they fear may build up the
country at the expense of the city, and diminish the value of their
city holdings.

At one of the Commission's hearings, Bailey Alexander,
" Convenor " or Chairman of the Tramway Committee, was asked
"Is it part of the policy of the tramway system to carry people
out into the country?"

Bailey Alexander — " That was one of the reasons we gave to
Parliament when we asked for power to operate the tramways."

" Has that policy been carried out ?"

Bailey Alexander — "Yes; it has been carried out with great
success. For long-distance suburban traffic the railways in this
and other British cities make rates that are very low,18 too low to
• u Even for distances of 7 or 8 miles the working class railway fares
are very low. To and from Paisley, for example, 7 miles out of Glas-
gow, the Caledonian and the Glasgow South-Western carry working
people for Is. a week or 2 cents a trip; and to Clydebank, 7.8 miles
out, the North British and the Caledonian make a rate of Is. 3d. or
2y2 cents a trip. The single fares by railway are 5^d. and 6d. third
class and 9d. and 10d., respectively, for first class, against Sy^d. by
trolley, which is all first class. Within a radius of 7 or 8 miles the
railroads carry 26,756,900 suburban passengers, and within the sam«
radius the trolleys carry a total of about 200,000,000 passengers. Far
the larger part of this tramway traffic was for distances below IVi
miles.

BRITISH TRAMWAY HISTORY. 733

make it wise for the tramways to compete, but within the range of
reasonable tramway traffic we have done a very great deal to carry
the people out of the crowded districts by greatly lengthening, more
than doubling, the distance the passengers can travel for Id., and
by other means.

" The railways have opposed us for fear we'd take away their
custom, and they were right; in some cases the railway service got
so thin the management took off the trains.

"Local authorities have opposed us, not because they object
to extensions, but simply to protect their rights and get all they
can out of us.

" We have been opposed also by a class of people inside, who
say : ' If you take people outside, our city property will depreciate.'

" Again, we have the critic who says the suburbs are too thinly
settled, and traffic will not pay out there.

" These objections have been falsified. Property in Glasgow
has not depreciated because we have taken people out, and the
department has not lost money, but has built up an ever-increasing
traffic as the lines have been extended."

Manchester.

Manchester is a busy manufacturing city of about 640,000 pop-
ulation. The city built the tramways, the first line being opened in
1877, and leased for 21 years from May 1st of that year at a rent
of 10 per cent, on the cost. Subsequent lines were leased on pay-
ment of £300 to £450 per mile of single track. The leases were
made to terminate on various dates from 1898 to July, 1902.

In February, 1895, a few months after Glasgow began to oper-
ate her street railways, the Manchester Council appointed a com-
mittee to report on the question of municipal operation. After two
years of investigation the committee recommended the municipal-
ization of the tramways and the adoption of the trolley system of
electric traction; and December 1, 1897, the Council adopted these
recommendations. How strong the sentiment was in favor of mu-
nicipal operation, appears from the fact that the Council voted 68
to 0 to work the tramways.1

The principal reasons given for the adoption of municipal
operation were: (1) To secure better service, especially the in-
troduction of mechanical traction. (2) To obtain lower fares —
the average of the company's fares in 1895 being over 4 cents
against an average fare of 1.8 cents in Glasgow under municipal
operation. (3) To secure for the city more complete control of
its streets and their monopoly uses. (4) To improve the conditions
of labor, following the example Glasgow had set. (5) To extend
the lines and to secure the social advantages of making suburban
areas easily accessible to the people at low fares. (6) To transfer
from the company's shareholders to the public the profits of the
public patronage of the tramway service.

After much negotiation, an agreement was made with the
company July 21, 1899, providing that all leases in Manchester

'See Schedule I.

734 NATIONAL CIVIC FEDERATION.

should terminate May 31, 1902, and that the city should have the
right to reconstruct and operate any line before that date, the pay-
ment for this privilege being the average net profit of the company
per mile of track. The city has paid the company £263,158, a
large part of this payment being made to get the company to permit
reconstruction and the transfer of the lines, route by route, as re-
constructed before the end of the franchise terms.2

The city began to operate the first lines in 1901, but did not
get full possession of the system until March 31, 1903. In October
of the same year the department reorganized the fares and stages,
reducing the average fare from 4 cents to 2.38 cents, and increas-
ing the distance given for Id. from one mile 100 yards under com-
pany management, to 2 miles 200 yards under municipal manage-
ment. The company's charges for a given distance were double
the charges of the city.

One of the definite purposes of the public tramways has been
to extend the lines and reduce fares in such a way as to distribute
population more widely and relieve the congested districts of the
city. The company operated 103 miles of track, the city operates
148 miles, 42 miles being outside of the city, and arrangements
are now in progress for further large extensions. The city has
made working agreements with 18 neighboring municipalities.8

This union or federation of cities is one of the most interesting
parts of the Manchester system. It is the centre and general agent
of a great co-operative system of tramways.

A few words about the Tramway Express Service may be of
interest here. Human beings are not the only things the British
tramways carry. The tramway acts permit the carriage of coal,
iron, timber, sugar, flour, cotton, furniture, horses, mules, cows,
sheep, pigs, and all other kinds of " animals, goods, wares, merchan-
dise, articles, matters, or things," including even manure, sand,
bricks, and carriages. The maximum tolls and charges are fixed
by law.

As a matter of fact, however, the tramways have not gone into
the freight business, but Manchester and Dublin do a considerable
express business; and the Norwich lines carry a few packages, but

*The city paid £210,000 for the lines owned by the company, In-
cluding 20 miles of way, 8 depots, 194 cars and 1,418 horses. The com-
pany claimed originally £510,000 altogether, but arbitration and litiga-
tion greatly reduced the amount, and finally an agreement was reached
with the result stated in the text (see Schedule I.).

1 In general these agreements provided that each local authority
was to own the lines within its area, reconstruct them for electric trac-
tion, lease them to Manchester for 21 years, and refuse to lease new
lines to any other party. Manchester was to equip and maintain the
lines on the overhead trolley system, pay all local rates and taxes, and
a rental sufficient to pay off the capital with interest, in 21 years, plus
the cost of maintaining track and paving. In the case of Salford,
Ashton and Oldham, which operate their own systems, agreements were
made to exchange running powers so that cars from Manchester might
run over the Salford, Ashton and Oldham lines, and cars from each of
these towns might run to the center of Manchester.

BRITISH TRAMWAY HISTORY. 735

the business is very small, the total receipts for 1905 being only 112
pounds. The Manchester trams carry 25,000 parcels a week, and
the receipts for 1905-6 were £11,996. The financial result for the
first twelve months of this department has been unsatisfactory,
there being a deficit of £5,770. This has been partly due to the
fact that practically at the very beginning of the service legal pro-
ceedings were begun against the department by a local carrying
firm, with a view of obtaining an injunction restraining the city
from carrying on the business. The result of the trial was to estab-
lish the right of the city to do practically all they claimed a right
to do. The total receipts for the Dublin express are not given, but
the profit for the year ending December 31, 1905, was £3,000.

Taking the charges and distances shown in Table 11, and the
notes appended to it, it appears that the Manchester rates within
the district corresponding to the area covered by the Dublin system
are practically 50 per cent, less than the Dublin rates for the same
weights and distances. For the outside districts the rates come
abreast of the Dublin charges, and on very light packages are
higher than the Dublin rates, but the distances goods are carried by
the Manchester express for a given charge are more than twice as
great as the Dublin distances, so that taking both rates and distances
into account the Manchester charges are only about one-half the
Dublin charges in the suburban districts also. If, therefore, Man-
chester had received the Dublin rates on the business done last year,
the department would have realized a very comfortable profit. It
may be that the Manchester express charges are too low — an as-
tonishing phenomenon for express rates to be suspected of — but stili
a possibility with a municipal express.19

19 Since the text was written word has come from the Manchester
management that the part of the business requiring the use of horse
vehicles for collection and delivery has been discontinued, limiting the
service to business that can be carried on by the tram cars with the aid
of messengers. This was deemed better than continuing the team deliv-
ery with a higher schedule of charges, especially in view of the protests
of local express interests against tramway competition in the heavy
traffic.

Under the new arrangement, taking effect Oct. 29, 1906, parcels not
exceeding 14 Ibs. in weight may be handed to the conductor of any
street car at any stopping place for delivery by messenger anywhere
within half a mile of any Manchester tramway line. The charges are
2d. for packages not exceeding 7 Ibs. and 3d. for packages from 7 to
14 Ibs. The parcels express book contains a list of places over half a
mile from the Manchester lines in which parcels will be delivered at
a uniform charge of 3d. per package up to 14 Ibs. "When shopping,"
says the little express book, " order your parcels sent home per tram-
ways, or hand them to the guard of a passing car." All parcels must
be prepaid with stamps, and the department will insure the value up
to $125.

Parcels not exceeding 56 Ibs. are accepted at the city depots for
conveyance to any of the outside offices to be left till called for. The
charge for this service is 3d. per package.

The department is now making a good profit on its express business.

736 NATIONAL CIVIC FEDERATION.

TABLE 11. — TRAMWAY EXPRESS KATES.

1 Dublin Tramway Express. 2 Manchester Tramway Express.

Up to 4 Ibs. weight 2d.

Up to 14 Ibs. weight 3d. Up to 14 Ibs. weight 2d.

Up to 28 Ibs. weight 4d. Up to 28 Ibs. weight 3d.

Up to 42 Ibs. weight 5d.

Up to 56 Ibs. weight 6d. Up to 56 Ibs. weight 4d.

Up to 84 Ibs. weight 9d.

Up to 112 Ibs. weight Is. Up to 112 Ibs. weight 6d.

The receipts of the tramways in 5 years to April, 1906, have
been $11,385,000. The profits above working expenses have been
$4,000,000 and the net earnings above interest, etc., about $2,830,-
000. About $1,265,000 of net revenue has been appropriated to
depreciation and renewal funds; $510,000 to sinking fund and
redemption of debt, and $955,000 to reduction of the local tax rate.
The tramways are now paying about $250,000 a year in relief of
taxation, in addition to the payment of the regular taxes.

The advantages to labor from municipal ownership are very
marked. The city reduced the hours of work from 70 to 54 per
week, and increased wages at the same time. The concessions
granted to employees as compared with their condition under the
company, amount to 43 per cent, in the case of motormen and 63
per cent, in the case of conductors, and are estimated to be worth
£40,000, or nearly $200,000 a year.

Political influence is not allowed to enter into the employ-
ment of the men. July 9, 1901, the Council resolved : " That it
be an instruction to the officials of this committee (Tramway Com-
mittee) that all letters presented by those seeking employment,
from members of the Council, be ignored, and that a preference be
given to those men who apply in the legitimate way." In other
words, the attempt to use political influence defeats the end in
view. It is true that Councilmen do not have to write requests
for employment of their friends. They can telephone or they can

1 Parcels are collected and delivered anywhere within the city of
Dublin and within one mile of the company's ten stations outside of
Dublin, comprising a circular area with a radius of not quite four
miles, at the rate stated in Table 11. A special rate of 7d. is made for
traders' light goods from 56 to 84 Ibs., and 8d. from 84 to 112 Ibs. ; laun-
dry baskets over 56 Ibs., 6d. ; half rate extra for frail or breakable
articles. For delivery beyond one mile from the company's stations 2d.
per parcel per half mile up to 28 Ibs., and 4d. per half mile up to 56
Ibs. is charged, but no parcel will be delivered beyond two miles nor can
punctual delivery outside of the one-mile distance be guaranteed. Par-
cels are called for or may be given to street car conductors.

2 The Manchester system collects and delivers parcels anywhere
within the cities of Manchester and Salford and part of Stratford at
the rates stated In Table 11. Beyond this area, to and from any point
in some 66 districts, including all the large towns in the neighborhood
of Manchester, except Bolton, and extending some 11 miles to the north,
8 miles to the east, 9 miles to the south and 6 miles to the west of the
center of Manchester, the rates are 3d. up to 14 Ibs., 4d. to 28 Ibs., 6d.
to 56 Ibs. and 8d. up to 112 Ibs. Breakable articles are carried at the
ordinary fares, unless the department insures them, and then they go
at double rates. Parcels are called for or may be left at any one of
the 150 depots.

BRITISH TRAMWAY HISTORY. 737

whisper. But the manager is free to disregard all such requests,
regardless of the form in which they are made, and his entire
freedom of action in employment and discharge is sustained by the
Tramway Committee. No politics have ever entered into the ap-
pointment of the staff of the department.

When asked to state the aim of the Tramway Department, the
main purpose it keeps always in view, Manager McElroy said:
" Service is the first consideration — safe, comfortable, convenient,
rapid service at reasonable cost. Then we must consider the rights
of employees, and finally, we try to make a profit that will enable
us to cancel our debt in due time and pay a round sum into the
public treasury each year." Manager Dalrymple, of the Glasgow
tramways, said, in answer to the same question : " The aim of the
city in the operation of the tramways is to give the citizens the
most up-to-date, efficient and cheap service that it is possible to
give, always, of course, keeping in view the commercial soundness
of the undertaking."5

The difference between public and private tramways in their
fundamental aim and purpose is very marked. The companies, of
course, are in business for the profit of their stockholders, and the
managers frankly admit that this is their controlling purpose,
while the managers of public systems state with equal force that
profit is a subordinate consideration, the primary purpose being
good service at low cost to the public.

Liverpool.

Liverpool is a shipping and manufacturing centre, with a pop-
ulation of 739,000 in 1906. The tramways in Liverpool were built
by a private company, the first line being opened in 1869. The
company allowed its tracks to get into such poor condition and
become so destructive to street traffic, that in 1874 the city ordered
the tracks removed, under the authority given in the Act of 1868
to order the removal of the tracks in five years if they proved to be
detrimental to public interests. The company brought suit, and

5 The answers of all the tramway managers to this question were
substantially to the same effect. For example, Manager Mallins of the
Liverpool tramways said: "The company management aimed to
make a dividend ; the city management aims at the good of the com-
munity, employees included." Manager Fearnley of the Sheffield tram-
ways said : " We try to give the city the best possible service at the
lowest possible cost consistent with the fair treatment of labor." Man-
ager Baker of the Birmingham tramways said : " The companies operate
only for what they can get out of it ; the city operates with regard to
the public welfare and makes a lot of money out of it after all." Mr.
John Young, first manager of the Glasgow tramways, said : " The policy
of the city is to give the best and closest possible service of cars at the
lowest fares which will leave a safe margin of profit and afford fair
treatment for labor." The late C. R. Bellamy, first manager of the
Liverpool tramways, said to the writer in answer to the same question :
" The department uses the tramways to serve the public interest by good
service at low cost, liberal treatment of employees and a schedule of
routes and fares arranged with due regard to general industrial and
social considerations as well as with regard to the financial interest*
of the department."

Vol. III.— 48.

738 NATIONAL CIVIC FEDERATION,

threatened to fight every step in the courts. That meant that con-
ditions would continue as they were for a long time, and little
would be gained, even if the city were successful. In addition to
poor service, the fares were very high, and there were only 7 miles
of track in a city of 400,000 inhabitants. After due deliberation,
the City Council concluded to buy the lines. The agreement was
made in 1879, and the ownership of the lines was vested in the
city January 1, 1880.1

In 1895 the agitation for municipal ownership began. Glas-
gow was operating her tramways and appeared to be making a suc-
cess of it. The Manchester company was non-progressive. The
service was characterized as " dear, slow and dirty ." It was also
inadequate, and the fares were high, nearly 4 cents per passenger
against 1.8 cents in Glasgow. There were also loud complaints of
the condition of labor. The men worked 7 days in the week, with
an average of somewhere between 13 and 14 hours a day, or 91 to
98 hours per week. To cap the climax, the company opposed the
city's bill in Parliament for the extension of the city boundaries.
The city had to extend the company's lease 10 years, in order to
persuade it to withdraw its opposition, for the Committee of the
House of Commons which was considering the extension bill, said
that the company should have a 10-year extension or the bill would
not go through. This opened the eyes of the people to an under-
standing of the hold the company had upon them, and its power
to obstruct the normal development of the city.

November 18, 189G, the Council voted 78 to 7 for municipal
operation of the tramways, and January 13, 1897, the measure was
again approved on final vote of 71 to 16. The city paid £631,540;
over £266,000 of the amount being for the franchise value of the
18 remaining years of the company's term.2

The city took possession September 1, 1897, and at once
arranged to scrap the entire undertaking and adopt electric trac-

lrrhe city paid £30,000 or about £4,300 per mile of track. The lines
were leased to the company at a rental of 1Vz% on the purchase price,
the city agreeing to maintain the track. In 1884 a new lease was made
for 21 years, the city to build and maintain the lines and the company
to pay a rental of £5,855 for existing lines and 10% on the cost of new
lines, including the expense of paving. In 1895 still another lease was
given, to expire Jan. 1, 1915, and including all the lines in the city.
(See Schedule I.)

2 The stock was bought at a slight advance on the market value,
which was well above par — £567,375 being paid for £452,500 par value
of securities (£7.500 bonds and the rest stock), or £114,875 above par
value. Besides this, £46,803 was paid for capital spent by the company,
biit not included in share capital, and £17,362 more was paid to direc-
tors, auditors and solicitors, under an agreement by which the city
undertook to pay five directors the capitalized value of an annuity equal
to the fees they would have received up to the year 1915, or at their
death if it should occur before that time, to compensate auditors and
solicitors in like manner, and to take over all the officers and employees
at the salaries and wages they had been receiving. The city paid alto-
gether £631,540. According to the company's statement to shareholders,
the capital invested was £364,057. So the city paid over £266,000 for
the franchise value.

BRITISH TRAMWAY HISTORY. 730

tion. The city adopted the overhead trolley and opened the first
line in November, 1898. In the next two years the whole of the
68 miles of track were reconstructed for electric traction, together
with 40 miles of additional new track, about three-quarters of it
being in the suburban areas, added to the city in 1895. The traffic
was carried on during the reconstruction. The total carrying
capacity was quadrupled, the fares reduced by one-half to two-
thirds, the wages of employees largely increased, their hours of
labor reduced from 91 or more per week to 60 per week, and all
were given free uniforms, sick benefits, superannuation payments,
etc.3

The management estimated in 1903 that the direct gain to
employees through municipal ownership was about $200,000, or
one-third of the total wage payment. Mr. C. R. Bellamy, who
was then manager of the tramways, said : " It would have cost
$200,000 less if we had worked the men the same hours and paid
the same wages as the private company did; so that in hours and
wages the men have gained an equivalent of 50 per cent." This
was the voluntary action of the city, without any pressure from the
men.

When the city began to reconstruct the lines in 1898, it
adopted 2r/3 miles as the standard stage for Id., increasing the
average distance for Id. from 1,232 yards under company control
to 4,191 yards under city control, a 240 per cent, increase. In
other words, under' municipal operation the passengers are carried
over three times as far for a penny as under private operation, and
with an average speed of 8 miles an hour against an average of
5£ miles under company management. The savings to the public
from reduction of fares are estimated at over $2,500,000 a year — •
they would have had to pay over that much more than they did if
the company rates and distances had continued. The closest ser-
vice the company gave was a headway of 7 minutes, with longer
intervals on most of the lines. The city has cut the minimum
headway down from 7 minutes to £ of a minute, and the maximum
headway from an hour to a quarter of an hour. The substitution
of electric traction for horse power was, of course, a part cause
of these improvements, but the adoption of electric traction was
one of the direct results of municipal operation. No move or
proposal of the company is on record for the adoption of electric
traction, either on condition of extending the franchise or on any
other condition.

The city's cars, clean, well-ventilated and brilliantly lighted
at night, form a remarkable contrast with the little, dark, dirty,
ill-ventilated, swaying, uncomfortable vehicles the company was
satisfied to operate year after year, while other cities in Europe and
America were enjoying the advantages of electric traction. The
department has experimented with cars of various patterns, from

3 During disability the employee receives 15s. per week for the first
six months, 7s. 6d. per week for the next six months. One-third of the
contributions are paid by the department, and the rest is contributed by
the men.

740 NATIONAL CIVIC FEDERATION.

the long American car to the English double-decker, with the glass
sides and roof for the upper deck, adjusted in such a way that the
whole top may be opened and closed in a moment. This type of
car proved to be most popular with the public, and has been
adopted as the standard car for the entire system.

The increase of traffic and receipts is shown in the accompany-
ing table:

TABLE 11. — TRAFFIC AND RECEIPTS.

Increase
Car in Traffic

Tear Mileage. Passengers. Receipts. Receipts

1897 £6,013,180 £38,409,084 £290,743

1905 12,067,033 119,123,644 550,084 £259,341

The increase for 1905 over 1897, the last year of the company's
control is as follows, viz.:

Car mileage 100 per cent.

Passengers 210 per cent.

Receipts 89 per cent.

Like the municipal tramways of Glasgow and Manchester, the
Liverpool trams have done much for the distribution of popula-
tion, by making suburban areas easily accessible at low fares. On
the long routes out of the city a maximum fare of 4 cents has
been substituted for the company's charge of 12 cents. The effect
on building in the outlying districts has been very marked.

During the four years, 1895 to 1898, 3,613 houses were erected
in the suburban areas added to the city when its boundaries were
extended ; in 1898, 2,023 houses were erected in these areas, and in
the four years, 1900-1903, 6,696 houses were built, being an in-
crease of more than 85 per cent, over the four years 1895-1898.
Inside of the old city, during the four years, 1895-1898, 1,776
houses were constructed, while in the four years following 1899,
1,055 houses only were built, a decrease of 40 per cent. on. the
figures applicable to the old city, including laborers' dwellings
erected by the corporation.

In six years of municipal operation the tramways have made
nearly $6,000,000 of net earnings, and have paid $740,000 in relief
of taxation. The aim of the municipal management is not profit
for shareholders, but the good of the community, including the
employees. The profits of the city tramways benefit about 800,000
people, instead of 1,750 shareholders, who got the profits of this
important public service under the company regime.

That Liverpool has 'found reason to be satisfied with the
change from private to publi'c operation of the tramwaj^s was proved
two years after the city came into possession, when a Liverpool
syndicate made an offer to lease the lines from the city, provide
an efficient service, and at the end of thirty years hand back the
whole undertaking free of all debt, paying off the whole price the
city had paid for the lines and the cost of reconstruction. The
City Council rejected this offer without hesitation, being convinced
that if a company offering these terms could make the tramways

BRITISH TRAMWAY HISTORY. 741

pay, the municipality could do the same with far better results to
the community.

London County Council.

The Elective County Council succeeded the Metropolitan
Board of Works in 1889, and October 27, 1891, the Council by a
vote of 90 to 2 decided to buy 4£ miles of the London Street Tram-
ways Company lines1 (the franchise having expired that year),
And notice was served upon the company. The company claimed
£604,090 compensation, on the basis of rental value capitalized at
20 years' purchase. The Council held that structural value, or the
cost of duplication, less depreciation, was the measure of compensa-
tion under the law, and that no allowance should be made on ac-
count of earning power, past or prospective, good will, or value as a
going concern. The courts sustained the Council, deciding that the
measure of compensation was the cost of replacement less de-
preciation.2

So the company got £101,798, or about one-sixth of the amount
it claimed. The Council took the lines and leased them back to
the company August 1, 1895, at a rent of £5,729 a year.

In December, 1892, while the first purchase was still in the
courts, the council served notice on the North Metropolitan Tram-
ways Company for the purchase of 8 lines, having a total length
of 19 miles. This led to an agreement in 1896 with the two
companies above named, by which the Council bought all the lines
of those companies in London County, 48 route miles (about 97
miles of track), with depots, for £805,869, and leased the lines for
operation to the North Metropolitan for 14 years from midsummer,
1896.3

The first line south of the Thames became purchasable in
1895, 2^ route miles, belonging to the London Tramways Company.
The Council bought it in, but left the company to work it for a time.

January 1, 1899, the Council took possession of all London
Tramways Company lines (about 24 route miles), the franchise

1 Prior efforts had been made to pass the measure at two meetings,
June 9 and July 14, but members who were opposed to purchase left
the chamber before the vote was taken, thus reducing the number on
the floor below the two-thirds required by law to be present when a
tramway purchase vote is taken. In each case the motion for municipal
purchase was carried by large majorities, 69 to 2 on June 9, and 86 to
3 on July 14, but both votes were inoperative because two-third's of the
Council were not present on the floor. A number of the opposition were
In the galleries, but they could not be counted there to make up the
two-thirds. At each of the three meetings the motion as carried con-
tained an amendment to the effect that the Council would not work the
lines. This provision did not amount to much, however, for the Council
had no authority to work the lines, and did not obtain such power from
Parliament till 1896.

1 See London Street Tramways Company vs. London County Council,
1894 A. C., 489 : 63 L. J. Q. B., 769.

' Report of the Council, 1900-01, page 89. The purchase did not In-
clude the cars, horses, etc., the ownership of which was to be in tha
lessee company, the Council agreeing to buy them at a fair valuation
on the expiration of the lease.

742 NATIONAL CIVIC FEDERATION.

having expired in 1898, and has since operated the lines as a
municipal system. Five other undertakings have been taken over
at various dates from 1902 to 1906, and April 1, 1906, the
Council took over the operation of the 48 miles leased to the North
Metropolitan. The lease had four years more to run, but to unify
the tramway system and secure electric traction, negotiations with
the company for that purpose having failed, the Council bought
out the company, paying £120,000 for the surrender of the lease
and £221,202 for the company's horses, cars, etc.

TABLE 12. — LINES BOUGHT BY THE L. C. C.

Route Purchase

Year. Miles. Price.
North Metropolitan and London Street

Tramways Co 1897 48 £805,869

London Tramways Co 1897 26 . 12 882,043

South Eastern Metropolitan Co 1902 2.5 50,167

South London Tram Co 1902 13.25 232,144

London Deptford and Greenwich Co.. 1904 6.9 96,327

Woolwich and South East 1905 .8 49,825

London Southern Lines 1906 5.7 65,000

North Metropolitan Co., for surrender

of lease and for horses, cars,

depots, etc 1906 341,202

103.27 -
Total (£120,000 of it being for surrender of

North Metropolitan lease) .............. £2,522,577

The London County Council has paid £2,402,577 for lOS^i miles of
line, with depots, land, horses, and other equipment, and £120,000 for
the surrender of a four years franchise on 48 miles of the system.

Practically all the lines in the County of London have been ac-
quired by the Council. The chief exceptions are 4 miles belonging to
the London United Tramways Company, 2 miles belonging to the Harrow
Road and Paddington Lines (the lease of which expires in 1907), and
the London Southern lines from Vauxhall to Norwood and Camberwell.

The purchase prices have been very large, because of the enormous
value of laud in London ; and the cost of rebuilding is very large be-
cause of the difficulties of electric construction in a city like London,
and because the law will not permit the use of the overhead trolley, so
that all the lines have to be built on the underground conduit plan. The
cost of widening streets in the case of the London lines has also been
exceedingly great, and a considerable part of this cost has been charged
to tramway capital. The paving is also of a much more costly character
than in other cities. The standard is higher than for any of the com-
pany systems including the London United, because of the heavy traffic
in the city.

Out of the 128 route miles of tramways in London, the County
Council owns and operates 115 miles, including all the lines it
has bought and built. It is operating 55£ miles by electricity (21
miles of which have been opened since April 1, 1906), and is

BRITISH TRAMWAY HISTORY. 743

reconstructing other lines for electric traction. The rest are still
operated for the present by horse power.4

The reasons given for the adoption of municipal operation in
London are similar to those we have met with in other cities.
Under the company management there were many complaints of
poor service, infrequency of cars, bad condition of the tracks, the
companies failing to keep up the paving between the rails and 18
inches beyond, etc.

The lack of unity or co-operation among the tramway com-
panies was also a serious drawback; the separate companies oper-
ating independently, with no adequate relation between the various
services, entailed much inconvenience and expense upon the travel-
ing public. Again, there were constant disputes between the com-
panies and the government as to the rights and duties of the com-
panies under the leases. Moreover, the companies would not ex-
tend their lines except where they could see clear promise of
financial gain. It was not to be expected that the companies would
go beyond the limits they thought would pay, but the Council could
deal with larger considerations. If the line would open up a large
area, where working people could secure good homes, with trees
and grass and fresh air in place of brick pavements and air that
has been cooked, it would not be so necessary for the Council to
calculate the profit, as in the case of a private company. The men
worked long hours at low pay. The Council had tried to protect
the employees by inserting conditions in the grants, but the attempt
to safeguard the interests of the men in this way proved not to
be effective. Then there were the profits of the transportation
service, which might just as well go to the municipality as to the
companies, and finally, the success of Glasgow, Leeds and other
cities in municipal operation of tramways was urged as a reason
for following their example.

So to unify the tramway system, secure electric traction, and
adequate facilties at reasonable rates, carry the working people out
of the city to suburban homes, protect the interests of labor, secure
control of the streets and get rid of constant contention with the
companies, the Council took over the lines and is now operating
practically the whole tramway system of the County of London.

The benefits of municipal operation are thus summed up in the
London Manual for 1906, p. 118:

(1) The relief of rates from the profits of the undertaking.

(2) The institution of all-night car services.

(3) The running of workmen's cars at reduced rates.

(4) Reduced fares for ordinary passengers on many of th«

principal routes.

(5) The removal of advertisements from the windows of the cars.

(6) The institution of a ten hours day (or sixty hours per week)

for all tramway employees.

(7) The recognition of the principle of " one day's rest in seven."

(8) Increased wages for employees.

(9) Provision of uniforms for drivers and conductors.

4 Minutes of Council, April 23, 1907, pp. 823, 824.

744

NATIONAL CIVIC FEDERATION.

The following table shows the contrast between municipal and
company policy in regard to the hours of labor :

TABLE 13. — HOURS PER WEEK BEFORE AND AFTER MUNICIPALI-

London tramways acquired
January, 1899

South East Metropolitan ac-
quired April, 1902

South London tramways ac-
quired November, 1902. . . .

London, Deptford and Green-
wich acquired July, 1904. .

Woolwich and South East
London tramways acquired
May 31, 1905

North Metropolitan Tram-
ways Company acquired
April 1, 1906

London County Council

ZATION.
Drivers.

77
70

70
60

Con-
ductors.

70
60

Stable- Ticket
men. inspectors.

77 80

77 81

70 91

63
60

70 to 80
60

The reduction of hours costs the Council many thousands of
pounds a year, but the men are not regarded as mere implements,
to be bought at the lowest market rates. Civic and social consid-
erations enter into the question of hours and wages under municipal
management, as well as economic questions. Mr. Wood, the leader
of the Progressive Party in the Council, says : " We regard it as
a great advantage to work the men humanely — quite as great an
advantage as 1 per cent, more profit." The same spirit runs
through the whole management. The Liberals say : " The op-
ponents of municipal ownership haven't proved their case when
they say the London tramways are not making much money. We
regard it as a paramount advantage to use the tramway system
to develop all the resources of the city, and to serve all the interests
of a great commercial and residential town."

The average fare per mile was .54d. in 1906, and the fare per
passenger was 1.04d. for electric traction, and .84d. for horse
traction.

It has been affirmed that the Moderate Party is opposed to
municipal operation of tramways, but this is not true. Years ago,
when it was thought that franchises and good will would have to be
paid for in case the companies were bought out, the Moderates
opposed the purchase. But the decision that only structural value
need be paid, changed their view, and now they confine themselves
to criticizing tramway accounts. In a famous debate in the
Council, October 16, 1906, which has been scattered broadcast by
the Moderates, under the title " The Tramway Scandal/' they took
the ground that a larger proportion of general county expenses
and of tbe cost of street improvements should be charged to the
street railway accounts (the failure to do this was the " Scandal "),

BRITISH TRAMWAY HISTORY. 745

but expressly repudiated the charge that they were opposed to
municipal tramways.5

Captain Swinton, " the Party Whip," or official representatire
of the Moderate Party in the council, declared that the profits
shown in the tramway accounts (about £100,000 for 1906) were a
myth, because he said street improvements which were charged
against the general county fund ought to have been charged against
the tramways. He began with a statement of £4,044,844 as the
cost of street improvements for the benefit of tramways, toward
which, he said, the tramways had only paid £377,260. A couple of
minutes later he admitted that over £1,000,000 of the amount he
had named were expended for bridges and could not be fairly
charged to tramways, and he finally ended with the claim that the
tramways owed the county fund half a million — a very moderate
claim compared to the four million statement with which he began.
The Captain got his original four millions by adding together the
totals of two sections of a Parliamentary Return relating to street
improvements: Section " (A) Improvements undertaken or pro-
posed in connection with tramway schemes/' £1,287,123; and sec-
tion " (B) Improvements for purposes of general traffic," £2,757,-
721. He had no warrant for saddling the tramways with the cost
of improvements undertaken for purposes of general traffic, and
only a small part of cost of section (A) was properly chargeable to
tramways. But the " Party Whip," the commissioned leader of the
opposition, does not wait for a warrant to justify his assaults on
the administrative party. The speech was simply a party attack
on the Progressive Administration and was made and used for
election purposes.

The fact is, that the municipal tramways have paid a much
larger portion of the cost of street improvements than the
private tramways paid before the lines were taken over by the
Council. According to the statement made to the Commission

8 Dr. B. B. Forman, Deputy Chairman of the Council and a leader
of the Moderates, speaking of the " change in the tramway policy of
the Moderate Party since Sir George Fardell was leader of the party
in the Council," referred to the decision that only structural value need
be paid and said: "Now that entirely altered the position, and the
tramway question became a different thing. The surprise would have
been had they hot been taken over, and therefore what I say would
have been a costly proceeding in Sir George Fardell's time became a
good inheritance for the local authority."

Captain Hemphill, speaking against loading the tramways with
larger improvement costs, said it looked as though the Moderates wanted
to kill the trams. " It seems to me," he said, " that what they are
driving at is to kill municipal tramways." (Cries of "No! No!" from
the Moderates.)

Mr. R. A. Robinson, Moderate member from South Kensington,
said : " When Mr. Wood said he now knows that the policy of the
Moderate Party in regard to tramways must be to stop municipal tram-
ways, he made quite a mistake. Perhaps he only made a slip in one
little word ; I think he must have meant steamboats. If he had said
that our policy was to stop municipal steamboats and not tramways he
would then have been very likely correct. The idea that we want to
stop tramways is wholly a mistaken idea and is one for which there
is no foundation whatsoever."

746 NATIONAL, CIVIC FEDERATION.

July 3, 1906, by J. Allen Baker, Chairman of the London County
Highways Committee, the 7 or 8 tramway companies purchased by
the Council had only paid £23,000 for street widenings throughout
the whole of London. But after the Council took the lines a much
greater burden for street improvements was laid on the tramways.
Chairman Baker said : " As a matter of fact, in all cases of street
widenings that we have carried through up to the present moment
on any of our working lines the whole cost has been charged to the
tramway account. And we have assumed capital charges of over
£100,000 for further street widenings, where a third has been
charged to the tramway account for improvements in streets where
there are no trams as yet, and we have paid ten or twelve thousand
pounds on interest and sinking fund in advance on those streets
and on those new roads — in advance of a single line having been
opened or a single car having been run."6

This appears to be a sufficiently liberal policy in regard to
street improvements.- It would hardly seem fair to burden the
trams with the cost of improvements made for the general benefit
of all traffic, as Captain Swinton desired to do. Where private
trams and motor bus companies are not assessed for street improve-
ments, there would seem to be no ground for assessing public trams.

As to the profits claimed in the tramway accounts, we may
note that the Commission's experts, after a thorough investigation,
certified to net profits of £66,564 for the tramways operated by the
Council for the year ending March 31, 1905,7 a sum within
£4,300 of the net profits shown for that year in the accounts issued
by the department.

Ill— CONTRASTS AND RESULTS.

The contrasts between existing systems are dealt with in the
report of the Committee of Four, volume I., pages 270 ff, based on
our schedule data.

The general results of the experience of British cities with
public operation of street railways, as compared with private opera-
tion, may be summed up as f ollows :

(1) A great reduction of fares, amounting in some cases to more
than 50 per cent, on the average, with the introduction of 1 cent fares
for short rides, and so great a reduction on the longer routes that on
some of them the company charges were 200 to 300 per cent, above
the rates established by the public tramways. (2) An equally remark-
able improvement of the service, substitution of electric traction for
horse power, better cars, greater frequency of service, a better class
of employees, and more courteous treatment of the public, which is
quite natural since they are stockholders in the roads. (3) The policy
of extending the lines into suburban areas with long routes at low
fares to relieve the congestion of tenement districts, and obtain a
better distribution of population, in place of the company policy of
limiting the lines to the best paying areas. (4) An increase of traffic-
corresponding to the reduction of fares and increase of facilities. (5)
A marked improvement in the conditions of labor, through shortened
hours and increased wages, free uniforms and yearly vacations on
full pay, greater permanency of employment and a share in the con-
trol through the ballot for the council, which is the board of direc-
6 See Minutes of London Meeting of the Commission July 3, 1906,
which forms the last section of Volume I.
' Schedule IV.

BRITISH TRAMWAY HISTORY. 747

tion of public works, recognition of unions and settlement of disputes
by arbitration. Thousands of men have been lifted to a living wage,
and relieved of the fear of capricious dismissal. (G) Greater regard
for the safety, health and comfort of the public in the operation of
trams. (7) Economies through co-ordination of departments and in-
dustries, lower rates of interest, better paid and more efficient em-
ployees, etc. (8) The appointment of expert managers who operate
the roads, not for private profit but for the public service, and who
have obtained a high degree of economy and efficiency, and in spite
of increased wages, shortened hours and reduced fares, have made
large profits for the people. (9) A policy of keeping capital down to
structural value, writing off full depreciation, and clearing off loan
capital within a moderate period. (10) Full publicity of costs and
values and all the inside facts of the business, milking a solid founda-
tion for the regulation of rates and capitalization and for true esti-
mates of structural value in case of public or private purchase. (11)
A flexibility and progressiveness much greater than the British cities
secured under the leasing system or the franchise for a limited term.
The public which wants the improvements has now the direct and
complete control and can have the improvements it wants when it
wants them. Every citizen is a critic and every member of council, and
all the critics are part owners who have much more weight with the
management to secure improvements in the service they suggest, than
the common people had or have with the private managements. (12)
Diffusion of benefit and prevention of the evils that grew out of the
control of public service monopolies in private interest and the conse-
quent antagonism of interest between the owners and the public.
(13) An increase of social and political efficiency through identifica-
tion of the interests of former company owners with the interests of
the general public, the widening of the sphere for civic activity and
the development of civic pride and patriotism. A civic co-partnership
or co-operation of all for the common benefit is regarded in England
as a superior relationship to the co-operation of a few for the ex-
ploitation of the rest. Better institutions do not change at once the
habits and characters of men, but in the long run they develop a new
type of character adapted to and in harmony with the new institu-
tions. Great Britain is already realizing in some degree the advantages
of the new civic spirit, which is due in part at least to the develop-
ment of public operation of public utilities. (14) A care for the
cleanliness and beauty of grounds, buildings and cars, which in the
best systems has gone so far in the recognition of the esthetic ele-
ment in business as to abolish advertisements from the cars. (15) A
change of fundamental aim and purpose from private profit to public
service ; from dividends for a few to benefit for all ; from management
in the interest of part of the people to management in the interest of
the whole people. (16) An improvement in the attitude of remaining
private managements toward the public and in the service they render,
owing in large part to the stimulus of municipal example, the pres-
sure of public opinion enlightened and educated by the results of
municipal operation, and the fear of compulsory purchase in case of
serious dissatisfaction.

The cities and towns that have not municipalized their street rail-
ways have nevertheless received large benefits from the growth of
municipal operation. They are not satisfied, however, with reflected
benefits, and continue to municipalize the tramways as the leases fall
in or the franchise terms expire. The general opinion in Great Britain
appears to be that even a company tramway so well conducted as to
escape complaint or positive dissatisfaction would still be inferior to
a well-managed public system for the reasons already stated in tho
earlier part of this examination. The history of the municipal owner-
ship movement in Great Britain proves that the people want direct,
continuous, and complete control of the public streets and all monopoly
uses of them. And they want the profits of the public service mon-
opolies to be devoted to lowering fares and charges, relief of rates, im-
provement of service and paying off the capital.

INDEX

Volume III

By FAY N. SEATON

Accidents: payment of medical expenses
of tramway employees, 574.

Accident benefits: to workmen, 91-8; re-
quired by law, 91-2; of trade unions, 93.

Accounts: audit of gas, by cities, 147-8;
systems and audit of, gas works, 215-16;
electric works, 346; tramways, 481-3;
electric works, kept separate from
others', 347; reliability of municipal,
658, 665-6.

Advertising on tramway cars: 468, 704;
abolishing of, in Glasgow, 728.

Air: mixed with gas, 189.

Alexander, Hugh: Convener of Glasgow
tramways committee, election to coun-
cil, 23.

Ammoniacal liquor: made by gas works,
224.

Amendment power of Parliament over
charters: gas companies, 132; electric
companies, 265; tramway companies,
418.

Annuities: Issued by Glasgow for pur-
chase of gas company, 636.

Appraisal: gas plants, 185; electric
plants, 314; tramway plants, 464-5.

Area of supply: gas works, population of,
129-30, 135-6; electric works, 263, 269-71;
tramways, 416, 424.

Assessments, special: public service
works, 549.

Assets: gas works, 233-8; electric works,
370-5; Manchester tramways, 396; tram-
ways, 499-505.

Audit of accounts: gas works, 147-8,
215-16; electric works, 282-3; tramways,
444, 481-3; public service works,'. 630;
reliability of municipal, 658, 690.

Avebury, Lord: remarks at London hear-
ing, 678 ct seg.

Badges and uniforms: gas employees,
204; electric, 333, 565; tramway, 473, 574.

Baker, J. Allen: remarks at London
hearing, 648 et seg.; reports on Amer-
ican and English tramways, 662.

Battersea, Eng. : electric supply in, 688-9.

Beal, Alderman: attitude of, as company
and city tramway manager, toward
profits, 715-16.

Belfast Tramway Co.: see also tramways;
extensions, 704-5; reductions In fares,
706-9; traffic. 709-10.

Bellamy, C. R. : statement as to gain to
Liverpool tramway employees through
municipal ownership, 739.

Bemis. Edward A.: remarks at London
hearings, 655 et seq.

Benefits to workmen: sick and death,
88-9; pensions, 89-91; accident, 91-8;
death, 97.

Benefit associations of employees: gas
works, 558; electric works, 566; tram-
ways, 575.

Bibliography on history and legislation:
gas works, 113-15; electric works, 248-50;
tramways, 383-7; on taxation of gas,
electric and tramway undertakings, 51C.

Bicycles used by employees: gas works,
559; electric works, 568; tramways, 578

Bills: collection of, by gas works, 215;
electric works, 345-6; not liens on prop-
erty, 215, 345.

Bills, private: Parliamentary charges on,
518-23.

Birmingham Gas Light and Coke Co.:
history and rnunicipalization of, 116-18.

Birmingham and Staffordshire Gas Light
Co.: history and municipalization of,
116-18.

Birmingham municipal gas works: sea
also Gas Works: Councillors, 8; labor
councillors, 61; Gas committee: member-
ship of, 11-12; length of service on, 13;
National politics and council commit-
tees, 14; Rate-payers' association, 17;
Unions of employees: 41, 47-8; Wages:
minimum standard required in con-
tract work, 63; minimum wage, 67-8;
wages paid, 99, 100, 101, 112; higher,
promised by candidates, 555; payment
for overtime, 556; vacations with pay,
557, 592-3; work and, of employees, 585-
93; Gas workers' contract, 75; Benefits:
mutual sick and death, 88, 89; sick leave,
557; local benefit associations, 558; Pen-
sions, 89, 151-2, 558; Hours of labor,
102; Date of origin of company and
municipalization, 115; Changes in owner-
ship, 116-18; Public sentiment toward,
128, 129; Population and area supplied,
129-30; Competition with electric works,
130; Powers: to issue securities for
works, 130; of city to tax for works.
130, 131; procedure to construct or
acquire works, 131-2; to construct works
on property owned, 133; to purchase
plants, 133; no right of eminent
domain, 133; power to lay mains in
streets, 133-4; to operate plants, 134-5;
Purchase of plants. 135; Area to be
served, 135-6; Extensions of mains, 137;
Prices: 138; changes In, 1900-06, 213, 214;
at municipalization, 214; charges and
rents, 209-12; for connections, 212;
street lighting. 225; Service: statutory
provisions on. 139-40: tests by other than
city authorities. 140; interruptions of,
195: Issuance of bonds, 142; Use of in-
come. 143-4: Sinking funds: 145; charges
to, 219, 220; Accounts: audit of, 147-8,

INDEX.

740

630; system and audit of, 215-16; pro-
vision for charging items to proper, 216;
not charged with gas used, 217; charged
with taxes, insurance, rents, etc., 216-17;
sundry expenses not charged, 220; sun-
dry credits not made, 221; Taxes: ex-
penses for public lighting charged to,
154; payments in aid of, 219; income tax
assessment, 531, 532; income tax pay-
ments, 533; local taxes, 547; Control by
other than city authorities, 159; Pro-
cess used and daily capacity, 162;
Purification, 162; Description of plant,
163-5; Distribution system: 181; Holders
and mains, 183; Meters and services:
183-4; tests of meters, 187-8; Apparatus
rented, 184; Appraisal of plant, 185;
Output, 186; No free service, 186; Con-
sumption, 186, 187; Means to extend
business, 188-9; Air mixed with gas,
189; Candle power tests, 189-91; Candle
power, 190-1; Calorific value, 191; Purity,
192; Chemists and laboratories, 192;
Engineering tests, 193; Pressures and
tests, 193-5; Extensions: making of, 195,
196-7; are adequate, 195; made during
year, 196; petitions for, 196; beyond city
limits, 197; payment for, 212; Street
Work: done by contract, 197; restoration
of street service after opening, 198; per-
mits for, 199; use of water in puddling
ditches, 198; care of trenches, 198; Ser-
vices: improvement of, prior to paving,
199; maps of, 199; pipes run only when
required, 206; record of, by date in-
stalled, 207; Underground structures:
determination of location of, 199; pro-
tection of, 205; Materials: placing of
orders for, 200, 201; advertisement of
contracts, 200; supplying by public
officials, 200; local dealers favored, 200;
Condition of equipment, 201. 202; Con-
dition of plant, 202; Ventilation, 202;
Business offices, 202; Handling of com-
plaints, 203, 204; Badges and uniforms,
204; Attendance of employees at fires,
205; Reports of operation to manager,
205; Tools and their care, 206; Attention
to orders to turn on gas, 206; Regula-
tions on entrance into consumers'
houses, 207; Inspection of work in con-
sumers' houses, 207; Collection of bills,
215; Depreciation: charges for, 217;
charging of, 637, 638; Reserve fund, 218,
643-4; Storeroom account, 222; Interest
rates less than of companies, 222; Li-
abilities: cancelled, 222; analyzed, 234,
239, 240-1; Records kept of expenditures
for construction, 222-3; Coal used, 228;
Water used, 223; Enrichers, 223; By-
products, 224; Lamps: public lighting,
225; ownership of posts, 225; care and
maintenance of, 225; Budgets, 225-6;
Capital: amount and issue of loan, 227;
securing of working, 230; cash, raised,
232-3; Assets: 234; analyzed, 234, 235;
determination of value of, 238; Profits:
analysis' of revenue accounts, 242, 243,
244; profit and loss account, 245; disposal
of net, 246; Employees: morale and dis-
cipline of, 204; selecting and discharg-
ing, 554; length of service of, 554, 555;
cannot hold office, 555; number of, 556;
payment of, 559; settlement of griev-
ances, 593; Official organization of
works: 552-5; chief executive officer and
length of service, 552, 553; head of en-
gineering service, 553; titles and salaries
of 10 highest paid subordinates, 553;
Political conditions in works, 555; Gen-
eral labor matters, 555-60; age restric-
tions, 555; distribution of positions
among needy, 555; surety bonds re-

quired, 557,558; technical instruction and
attendance at technical meetings, 558,
569; welfare work, 559; bicycles used,
559; Number injured or killed, 560;
Payment for goodwill at purchase of
plant, 636.

Birmingham Municipal Tramways: see
also tramways; hours and wages, com-
pany and city, 711-12; political condi-
tions, 716.

Board of Trade: supervision of gas works,
133, 148; electric works, 286-7, 288-90;
tramways, 448, 449-50; action in case of
non-use of powers of municipalities,
653; granting powers of operation to
public service works, 679-80.

Bonds: statutory provisions on issue of,
by gas works, 142-3; electric works,
278-9; tramways, 437-8.

Bonds, surety of employees: tramways,
77, 574; gas works, 557-8; electric works,
565.

Bonuses: granted to workmen of City of
London electric CO., 610-12.

Borrowing: by public service undertak-
ings, 632-3.

Bristol Tramway Co.: see also tramways;
extensions, 704-5; reductions in fares,
706-9; traffic, 709-10; capitalization in ex-
cess of assets, 717; right of city to pur-
chase, 717.

Brush Electrical Engineering Co. : history
of, 256-7.

Budgets: of gas works, 225-6; of electric
works, 360.

Buses, motor: competition with trams, 661.

By-products: of gas works, 223-4.

Calorific value: of gas, 191-2.

Candle power: statutory provisions on,
139-40; of gas supplied, 189-91, 190-1.

Capital: Share, of gas works, 226-33;
electric works, 360-2; tramways, 491;
companies, 631-2; Loan, of gas works,
226-33; electric works, 362-4; tramways,
491-4; repayment by municipalities1,
634-6; Working, of gas works, 230-2;
electric works, 364-8; tramways, 494-7;
Cash, of gas works, 232-3 ; electric works,
368-9; tramways, 497-8; Capital ac-
count, Manchester tramways, 1876-96,
396; Raising of, by tramways, 493; Pref-
erence, of companies, 631; Ordinary,
of companies, 631; Subscribed capital,
632; Capital outlay, 637; Excess, Lon-
don tramways, 650; Difficulty of
securing, by companies because of un-
certain tenure, 683; of tramways in ex-
cess of assets, 717-18.

Cars, tramway passenger: 460-1; con-
dition of, 467; advertising on, 468; work-
men's cars, company and city, 712-13.

Car service, tramways: 466, 467.

Car sheds, tramways: 461-2.

Central Electrical Supply Co.: see
also Electric Works; Wages: of fire-
men, 110, 111; fitters, 112; all work-
men, 607; Does not distribute current,
250; Organization, 258, 265; Sentiment
toward, 258, 259; Charter perpetual, but
subject to Parliament, 265; Powers: to
acquire works, 265, 266; to lay mains
in streets, 266; of city to purchase,
267-8, 269; Area to be served, and
population, 271; Statutory provisions:
plant and equipment, 271-3, 274; exten-
sion of mains, 274-5; prices, 275-7; ser-
vice, 277-8; issue of securities, 278-9;
audit of accounts, 283; publicity of
records, 283; Supervision: by central
authorities, 286-90: by city, 290-1; Year
covered by investigation, 292, 339: Gen-
erating stations, 306-7; Distribution
system, 307, 310; Methods of supplying

750

NATIONAL CIVIC FEDERATION.

current, 312; Steam plant, 312;
Dynamos, 313; Appraisal of plant, 314;
Meters, services, consumers, 315; Cur-
rent generated, 315; current sold and
consumed, 316; Daily capacity, 31ti;
Owns all conduits used, 317; Plant
adequate, 329; condition of plant and
equipment, 331; Prices, 341, 342; changes
in prices, 1900-6, 345; Accounts: system
and audit of, 346; proper charging of
items to, 347; audit of, 630; Deprecia-
tion: funds, 349; charging of, 638, 642;
Reserve fund, 355; Storeroom account,
357; Interest rate compared with city's,
357; Sinking fund unapplied, 357; Ex-
penditures: records of, on construction
work, 357; analyzed, 379, 3SO; Budget,
360; Capital: share, 360, 362; loan, 362,
363-4; working, 368; cash, 3ti8-9; Assets:
370; and outlay analyzed, 370, 375;
Liabilities; 370; and funds analyzed,
376; Revenue account, 378; Profit and
loss account, 381; disposal of net profit,
382; Taxes: local, 548; income tax as-
sessment, 531, 532; income tax payments,
533; Workmen, hours, wages, and
holidays, 607; Owned by St. James and
Westminster electric companies, 636.

Central Tramways Co. : sale of, to Dublin
United Tramways Co., 412.

Chamberlain, Joseph: advocated munici-
pal ownership in Birmingham, 116-17.

Charleton, Charles: remarks at London
hearing, 678 et seq.

Chemical works: of Glasgow, 128.

Chemical laboratories: of gas works, 192.

Chemists: employed by gas works, 192.

Cities, British: See individual plants
located in; Labor and Politics in, 1 ff;
Suffrage in, 1-7; Councillors, 7-10;
Council committees: 11-14; effect of
national politics on membership of,
33-14; Citizens' associations, 14-17;
Municipal employment, 17 ff. ; Commit-
tee control of works of, 17; Unions of
employees: 36; methods of dealing with,
36: causes for disagreements with, 64;
Wage standards in, 99; Slowness of
business interests in, to adopt inven-
tions. 662-3: Public-spirited business
men in, 663-4; density of population, 719
note.

Cities. United States: promptness of
business interests in, to adopt inven-
tions, 662-3; lack of public-spirited
business men in, 662; density of popula-
tion, 719 note.

Citizens' associations: 14-17; opposition to
municipal activities of Glasgow, 730-1.

City and Suburban Gas Co. (Glasgow):
history and municipalization of, 119-21.

Clark, W. J. : remarks at London hear-
ing, 681 et scq.

Clark, Walton: remarks at London hear-
ings, 650 ct scq.

Clerks. Association of Municipal Corpo-
ration: influence on securing powers by
companies, 665-5; opposition to private
ownership, 680.

Coal used: gas works, 223; electric works,
358; tramways, 490.

Coke: made by pas works, 224.

Commons, John R. : report on Labor and
Politics, Iff., 550 ff.; remarks at Lon-
don hearing. 683 et seq.

Companies, private: see individual com-
panies; loan debts of. 6.12; constitution
and management of, 628-9.

Companies' Acts. 1862-1900: Companies in-
corporated under: 629; share capital of,
631-2.

Competition: between gas and gas and
electric works, 129, 130; of electric

works, 260-2; tramways, 415, 666-7; re-
fusal of cities to permit, with their
works, 680-1. 695-6; as a solution of
public service problems, 684.
Complaints: as to service of gas works,
195; handling of, by gas works, 203-4;
electric works, 332-3; tramways, 468,

Conductors, tramway: employment of In

Glasgow, 23-30.
Consolidations of companies: gas, 129;

electric, 262; tramway, 415.
Conspiracy and Protection of Property

Act: 70-1, 153-4.
Construction, powers of: gas works, 133,

229; electric works, 266; tramways, 413,

Consumption: gas, 186, 187; electricity,
315-17.

Contracts: WHh workmen, 69-82; breach
of, by an employee formerly a criminal
offence, 69-70; Statutory provisions: on
letting of. for gas works, 140-1; electric
works, 278: tramways, 426; en per-
formance cf public work by. gas works,
140; electric works, 326; Street work
done by. gas works, 197-8; electric
works, 326: tramways, 470; Advertise-
ment of. by gas works. 200; electric
works, 328; tramways, 471-2; Of elec-
tric companies for public lighting,
358-9.

Co-partnership: see Profit-sharing.

Corruption: by private interests opposing
municipal ownership, 653-4.

Councils, city: committees of, 11-14; con-
trol of, by municipal employees, 690-1.

Councillors: 7-10; three, members of
board of directors of Sheffield gas co.,
45; labor, 61-2; may hold other public
office, 552, 560, 569.

Crawford, Norman McD. : report on tram-
way engineering matters, 453 ff.

Current, electric: methods of supplying,
311-12; consumption of, 315-17; orders
to turn on, promptly attended to, 336;
used in works not charged, 347; gen-
erated, bought and used by tramways,
466.

Dalrymple, James. Manager Glasgow
tramways: contract, 17-18; appointment,

Damages for injury: by gas works, 148,
149-51; electric works, 283; tramways-,
445, 579; cities favored by legislation
as to suits for, 694.

Davies, Dixon H. : letter opposing mu-
nicipal trading, 694 ff.

Debts, loan: of private undertakings, 63Z;
municipalities, 632-3, 634-6.

Deficits: power of cities to tax for. 130.

Deposits by customers: gas works, 138-9;
electric works, 340, 341.

Depreciation: of tramways, 438: Glasgow
municipal tramways, 1904-5, 483-5; pro-
vision for. all works. 637-42; London
C. C. and London United tramways,
666.

Depreciation funds: see also Reserve
Funds; Statutory provisions on, 144-5;
Payments to, by gas works, 2J7-20;
electric works, 347-9; tramways, 483-7;
need for, by Newcastle Supply com-
pany, 668.

Direct employment: No statutory pro-
visions on doing public work by, 140;
Street work done by, gas works. 197-8;
electric works, 326: tramways, 470.

Discounts: Gas works: statutory pro-
visions on, 138-9; allowed by. 2C9-10;
Rlpctric works: statutory provisions on
275-7; allowed by, 340, 341.

INDEX.

751

Dlsfranchisement: of workmen in county
of London, 2-3; voters receiving aid from
Board of Guardians, 3-4; wage earners,
5; classes disfranchised, 6; of municipal
employees, 666, 691.

Distribution systems: gas works, 181-4:
electric works, 307-12; tramways, 458-9.

Dividends, statutory provisions on: gas
works, 146-7; electric works, 281-2;
tramways, 440.

Donald, Robert: remarks at London hear-
ing, 648 et seq.

Drafting rooms: gas works, 206; electric
works, 335; tramways, 474.

Droylsden Gas Co.: purchase of, by Man-
chester, 116.

Dublin and District Tramwayraen Union:
51.

Dublin Southern District Tramways Co. :
history and consolidation with Dublin
United Tramways Co., 412-13.

Dublin United Tramw&ys Co. : see also
Tramways; Organizations of employees,
51, 577; not opposed to, 577; Surety bonds
required of employees, 77, 574; Work-
men's contract, 80; Wages: 107, 108,
109, 625-7; of firemen, 110, 111; fitters,
112; payment and fixing of, 574, 576;
equal to union rates, 576; Hours of
labor, 107, 108, 109, 625-7; no legal
maximum of, 573; Date of beginning
operation, 388; Early history and
changes in ownership, 412-13; Sentiment
toward, 414; Competing tramways, 415;
Population: of city, 416; of area of
supply, and mileage, 424; Incorporation:
date and place of, 417; method of, 418;
duration of, 418; Parliament, power to
amend charter, 418; Powers: to build
on property owned, 418; to lay tracks
in streets, 419; of operation, 419; pur-
chase of plants, 418, 420-2, 423; no right
of eminent domain, 418; Statutory
provisions: size and location of plants,
424; nature of plant and equipment,
424-5, 426-9; extensions and improve-
ments, 429; fares, 429, 430, 431, 433-4,
435; service and inspection, 435-6;
issuance of stock, 436; bonds, 438; divi-
dends, 440; compensation for franchises,
440, 443; audit, 444; publicity of reports
a.nd records, 445; enforcement of, 446-7;
Supervision: by central authorities,
417-50; local authorities, 450-1, 452; re-
sistance to, 452; Year covered by in-
vestigation, 453, 475; Generating sta-
tions, 455, 456; Substations, 457-8; Un-
derground and overhead equipment,
459; Horses, 460; Passenger cars: 460,
461; condition of, 467: advertising in,
468; Car sheds, 461, 462; Repair shops,
462; Track and paving, 462-3; Mileage,
464; Apnraisal of plant. 464-5; Current
data, 466; Passenger data, 466, 476-7,
709-10; Car service, 466-7; Transfers, 467;
Care of equipment, 472, 473, 474; Engin-
eering tests. 468; Extensions, 468, 469,
470, 704-5; Street work, 470, 471; Sup-
plies, purchase of, 471, 472; Badges and
uniforms, 473. 574: General matters, 473,
474; Fares: 475, 476; reductions in, 706-9;
Traffic receipts. 478; Freight service, 479;
Express service, 479, 734-6; Mail service,
480; Accounts: system of, 481, audit,
4S2, 630; charging of particular items,
482, 483; services not credited, 489; De-
preciation and reserve funds, 486-7;
charging of depreciation, 640; Store-
room account, 490; Interest rate com-
pared with city's, 490; Coal used, 490;
Water used, 491; Capital: share, 491-2;
loan, 492; raising of, 493-4; working,
496, 497; cash, 497-8; Assets: 499; and

outlay analyzed, 499, 504-5; Liabilities:
499; and fundd analyzed, 506, 507; Rev-
enue accounts, 609; Expenditures
analyzed, 510, 512-13; Profit and losa
account, 514, 515; Taxes: income tax
assessment, 532; payment, 533; local,
618; Official organization: 569 ff . ; hold-
ing of other offices by councillors, 569;
cbiof executive officers, 569; head of
engineering service, 570; Employees:
selecting and discharging, 570, 571;
length of service and promotion, 571;
no citizenship or age restrictions, 571;
Free service, 572; Labor matters:
572 ff. ; overtime, vacations and sick
leave, 573, 574; payment of medical ex-
penses of injured employees, 574; free
service to employees, 575; benefit asso-
ciations and welfaro work, 575; laws
relating to labor enforced, 577; em-
ployees generously treated, 577; tech-
nical instruction and attendance at
technical meetings, 578; Number in-
jured or killed, 578, 579: Settlement of
claims for damages, 579; Workmen,
hours and wages, 625-7; Workmen's cars
and fares, 712, 713.

Duration of incorporation of companies:
gas, 132; electric, 265; tramways, 418.

Dynamos: electric works, 313; tramways,
456.

Edinburgh Tramway Co. : see also tram-
ways; extensions, 704-5; reductions in
fares. 706-9; traffic, 7C9-10.

Electric works: See also individual elec-
tric works; Reports on: Labor and
Politics, 1 ff., 560-9, 593-4; 603V12;
History and Legislation, 248 ff . ; En-
gineering Matters, 292 ff. ; Financial
Matters, 339 ff., 628 et seq.; Taxation,
516 ct set}. ; Organization of employees
in, 52-6; Wages in, 110-11; Competition
with gas works, 130; Financial powers
cf municipalies as to, 264-5; Public sup-
ervision of, 265-91; Assessment for in-
come tax, 527; Valuation for taxation,
543-5; Owned and operated by limited
companies, 629; Cost of operation and
price of output of public and private,
compared, 673-5.

Electrical Trades Union: organizations
of, 52; official organ of, and socialistic
propaganda, 53-5; sick benefits of, 88.

Eminent domain, power of: gas works,
133; electric works, 265; tramways, 418.

Employees: Organizations of, 36 ff . ; Stat-
utory provisions as to pensions, 151-3;
Morale and discipline of: gas works,
201; electric works, 333-4; tramways,
473; Gas works employees, 556; Electric
works, 563; Tramways, 572, 577; see also
Employees, municipal.

Employees, municipal: wages, 38, 39;
organizations of, 41-2; see also Em-
ployees.

Employers' liability: Negligence of em-
ployees does not affect, 91; Legislation
on: 91; gas works, 149-51; electric
works, 283; tramways, 445; Contract to
relieve of, void, 93; Agreements as to,
permitted if not unfavorable to work-
men. 93-4.

Employment of workmen: gas works,
554-5; electric works, 561-2; tramways,
570-1; Glasgow tramways, 727-8; see also
Municipal Employment.

Engineers: Amalgamated Society of, 52,
55-6, 112; Northern United Association
of, 54; salaries under public and private
ownership, 663.

Engineering matters, reports on: gas
works, 162 ff . ; electric works, 292 ff. ;
tramways, 453 ff.

NATIONAL CIVIC FEDERATION.

Enrichers used by gas works: 223.

Equipment: gas works, 137, 201; electric
WOI-KS, 271-4, 330-1; tramways, 460-4, 472-4.

Exemption of public property from taxa-
tion: 537.

Expenditures: gas works, 242, 243-4; elec-
tric works, 379-80; tramways, 509-13.

Express service of tramways: 479, 734-6.

Extensions: Gas works: mains, 137-8,
195-7; payment for, by consumers, 212;
made from other than capital funds, 229;
Electric works: mains, 274-5, 323-6;
charges for, 343; Tramways: 429, 468-70;
under company and city, 704-5; Glas-
gow, 731-3.

Fares, tramway: 429-35, 475-6; changes In,
1900-6, 480; before and after municipal-
ization, 480-1; payment of, by employees
of electric works, 568-9; of tramway em-
ployees, 578; high, of companies, 704; re-
ductions under companies and cities,
706-9; charged, company and city, 714;
benefit to Glasgow public from reduc-
tions in, 725-6; reduction of, by Liver-
pool, 739; of London C. C., 744.

Fees, local: 548-9.

Financial matters: gas works, 143-S,
208 ff; electric works, 279-83, 339 ft ; tram-
ways, 475 ff; supplementary report on,
628 ff; constitution and management of
companies, 628-9; audit, 630; capital
stock, 631-2; loan debts, 632-3; repay-
ment of municipal loan debts, sinking
funds, etc., 634-6; investment of sinking
funds, 635-6; payment for good will,
636; annuities issued by Glasgow for
gas company, 636; investments in other
companies, 636; practice as to deprecia-
tion, 637-42; revenue accounts, 642; re-
serve funds, 643-7; financial result* of
London electric works, 676; of provincial
electric works, 677; of Glasgow tram-
ways, 728; see also Financial Powers.

Financial powers, municipal: gas works,
130-32; electric works, 264-5; tramways,
416-17.

Fires, attendance at by employees: gas
works, 205; electric works, 334.

Firemen: wages in electric works, 110-11;
see also Engineers.

File Office, The (Leicester): history of, 126.

Franchises: compensation for, gas works,
147; electric works, 282; tramways,
440-4; value of, assessed, 536; duration
of, 659.

Freight service by tramways: 479.

Friendly societies: Glasgow and Liver-
pool, 51.

Gallon, F. W.: statement on registration
of lodgers, 5.

Garcke, Ernile: remarks at London hear-
ing, 678 ct se(f. ; articles on solution of
London electric supply problem, 687.

Gas works: see also individual gas works;
Reports on: Labor and Politics. 1 ff.,
550-60, 580-602; History and Legislation.
113 ff.; Engineering Matters, 162 ff.;
Financial Matters, 208 ff., 628 et seq.;
Taxation, 516 et seq.; Organization of
employees in, 42-8; Wages, 99-106;
Financial powers of municipalities as
to, 130-2; Public supervision of, 133-61,
159-60; Competition with electric works,
264; Valuation of. for taxation, 538-43;
Companies incorporated by Parliament,
629.

Gasworkers, unions of: Amalgamated So-
ciety of Gasworkers, etc., 41, 47-8: Na-
tional Union of Gasworkers, etc.: bene-
fits secured. 42: objects of, 43-4; benefit
features, 44, 88; political program of,
44; represented at Leicester, 43; at
Manchester, 48.

Uateshead Gas Co. : see Nevvcastle-upon-
Tyne and Gateshead Gas Co.

Glasgow Uas Light Co.: history and mu-
nicipalization of, 119-21.

Glasgow municipal electric works: see
ui.so JOlectric Works; Councillors, 10;
Council committees: 12, 13; control by,
17; Ward committees, 14; Ratepayers'
federation, 15; Citizens' union, 15-16;
Municipal employment: 17 ff. ; of rela-
tives of officials, 19-21; municipal labor
bureau, 21-2, 23; of men recommended
by councillors, 21-3, 32-3; of clerks, 26;
all workmen, 30-1; and discharging of
men, 561, 562; preferences in selecting
employees, 31-3; not controlled by politi-
cal considerations, 32; Wages: minimum
wage scale and effect, 23-4, 68; contrac-
tors required to pay standard, 53, 63;
of flremen. 110, 111; of litters. 112; of
officers, 561; of workmen, 605; overtime,
vacations and sick leave, 563, 564; fixing
and payment of, 567; union rates ob-
served, 567; attempt by employees to in-
crease, 567; Promotions, 24, 26; Ap-
pointment of manager, 24; Period of
service of officials. 25; Labor council-
lors: 61; not wage-earners, 61; Date of
beginning supply, 250; Municipalization,
250, 254-5; Sentiment toward, 258, 259;
No competing electric companies, 260;
Population of city and area supplied,
263, 269, 271; Competition with munici-
pal gas works, 264; Powers: to issue se-
curities, 264; taxing powers of city, 264;
to acquire works, 265, 266; to lay mains
in streets, and operation, 266; Statutory
provisions: plant and equipment, 271-3;
extensions, 274-5; prices, 275-7; service,
277-8; issue of bonds, 278, 279; use of
insome, 279-89; sinking funds, 280; Audit
of accounts, 283, 346, 630; Accounts: sys-
tem of. 346; proper charging of items,
347; all service credited, 356; Publicity
of records, 283; Pensions, 285. 565; Su-
pervision by central authorities, 286-90;
Year covered by investigation, 292, 339;
Generating stations, 295-6; Distribution
system, 307, 308-9; Methods of supply-
ing current, 311; regulation of current,
320, 321; voltage, 322; orders to turn
on current promptly attended to, 336;
Steam plant, 312; Dynamos, 313; Ap-
praisal, 314; Meters, services and con-
sumers, 315: meter tests, 318; Lamps,
315; Consumption, 315, 316, 317; Maxi-
mum and minimum output, 316; Owns
all conduits used, 317; Means to extend
business, 319, 320; Outages, 321; Tests
and experiments, 322; Interruptions of
service, 323; Extensions: policy as to,
323, 324, 325; made in year, 324; power
as to, 325, 326; Street work: 326, 327;
permits for, 328; Trenches and puddling
ditches, 327; Underground structures:
locating of, 328; protection of, 334; Pur-
chase of materials, 328, 329; Plant ade-
quate, 329; Condition of plant and equip-
ment, 330, 331; Handling of complaints,
332, 333; Badges and uniforms, 333, 565;
Employees: 333. 563, 605; attendance of,
at fires, 334; Reports of operation to
manager, 335; Drafting rooms, 335;
Tools, 335, 336; Services: run prior to
paving, 336; records of, 337; Work of em-
ployees in consumers' houses, 337, 338;
Prices: 340, 342; changes in, 1900-6, 348,
345; for connections, 342; for extensions,
343; Collection of bills, 345, 346; De-
preciation: funds, 348; charging of, 637,
fiJO; Reserve fund, 350: Payments in
aid of rates, 355; Sinking fund: 356;
deficiency made up, 635; Storeroom ac-

INDEX.

753

count, 357; Interest rate compared with
public service companies, 357; Liabili-
ties: redeemed, 357; and assets, 370; and
funds analyzed, 376, 377; Records of ex-
penditures on construction, 357; Coal
used, 358; Public lighting, 359; Budgets,
360; Capital: loan, 362; working, 364-5,
368; cash, 368-9; Assets: 370; and outlay
analyzed, 372, 375; Revenue account, 378;
Expenditures analyzed. 379, 380; Profit
and loss account, 381; disposal of net
profit, 382; Taxes: income. 531, 532, 533;
assessment, 1906, 543-4; assessment of,
compared with Newcastle gas company,
544-5; local, 548; Official organization,
560 ft. ; councillors holding other offices,
560; chief executive officer, 560; head
of engineering service, 560; salaried of-
ficers, 561; Workmen voters, 562; Labor
matters, 563 ff . ; surety bonds required,
565; welfare work, 566; technical in-
struction, 565; technical journals and at-
tendance at meetings, 569; benefit asso-
ciations, 566; settlement of labor dis-
putes, 568; bicycles and tramway fares,
568; Number injured in year, 569;
Hours and holidays, 605; Non-exten-
sion to Clyde, 668.
Glasgow municipal gas works: see also
Gas Works, and for general references
preceding page 62 see Glasgow Munici-
pal Electric Works; Gas committee: 12;
sub-committee of, 17; Employment: of
applicants, 31; application schedule, 35;
selection and discharging of employees,
554; age and citizenship restrictions,
655; distribution of positions among
needy, 555; Wages: of plumbers reduced
because of reduction in private wages,
39; of employees, 99, 100, 101, 580-1; of
fitters, 112; Contracts with workmen,
73-4; Sick and death benefits, 88; Hours,
102; Date of origin and municipalization,
115; Changes in ownership, 119-22; Pub-
lic ownership and private operation of
chemical works, 128; Sentiment toward,
128, 129; Population of city and area
supplied, 129-30; Competing electric
works, 130; Powers: to issue securities,
130: of city to tax for works, 130, 131;
procedure to construct or acquire works,
131-2; no right of eminent domain, 133;
to purchase plants, 133; to build on
property owned, 133; to lay mains in
streets, 133-4; of operation, 134-5; Pur-
chase of plants, 135, 636; Area to be
served, 135-6; Statutory provisions: ex-
tensions, 137; prices, 138; service, 139-40;
Tests of gas other than by city, 140;
Issuance of bonds, 142-3; Use of income,
344; Sinking funds: 145; charges to, 219,
220; Statutory provisions on profits, 146;
Audit. 148, 215-6, 630; Pensions, 152-3,
558; Candle power: penalty for viola-
tion of statutes on, 155; tests of, 189-
91; Control other than by city, 159; Pro-
ce*s used and daily capacity, 162; Puri-
fication, 162; Description of plant, 185-8:
Distribution system, 181; Holders and
mains, 183: Meters and services, 183-4:
tests of meters, 187-8; Anparatus rented,
1S4; Appraisal, 185; Output, 186; Con-
sumption, 18fi, 187; Means to extend
business. 188-9; No air mixed with gas,
189; Quality of pas. 192; Chemists and
laboratories. 192; Engineering tests. 191:
Pressure, 193-5; Interruptions of service,
195; Extensions: adequate, 195; making
of, 195. 196-7: Street work: by contract
and direct employment. 197; streets re-
stored after opening, 198: nermits for,
199; Use of water in puddling ditches,
198; care of trenches, etc., 198; Services:

Vol. III.— 49.

improvement of, prior to paving, 198;
inu-pa of, 199; pipes run only when re-
quired, 206; records 01', by date, 207;
Underground structures: location, 198;
protection, 205; Purchase of materials,

. 200, 201; Condition of plant and equip-
ment, 201, 202; Ventilation, and guarding
of machinery, 202; Location of offices,
202; Handling of complaints, 203, 204;
Badges and uniforms, 204; Employees:
morale and discipline, 204; number of,
556, 580-1; length of service, 554, 555;
Harmony between departments, 204; At-
tendance at fires, 205; Reports of opera-
tion to manager, 205; Tools, 206; Atten-
tion to orders to turn on gas, 206; Work
of employees in consumers' houses, 207;
Charges: 209-12; for connections, 212; for
laying mains, 212; changes in, 1900-6,
213, 214; before and after municipaliza-
tion, 214; for street lighting, 225; Col-
lection of bills, 215; Accounts: system
of, 215-16; charging items to proper,
216; kept separate from city's, 216;, all
expenses charged, 216-17, 220; gas used
not charged, 217; credits not entered on
books, 221; storeroom account, 222; De-
preciation; charges for, 217, 637, 638-9;
Reserve funds, 218, 644; Payments in
aid of rates, 219; Interest rate less than
of public service companies, 222; Lia-
bilities cancelled, 222; Records of ex-
penditures on construction work, 222-3;
Coal, water and enrichers used, 223;
By-products, 224; Public lighting, 225;
Lamps: 225; ownership of posts, 225;
care and renewal of, 225; Budgets,
225-6; Capital: loan, 227-8; working, 230;
cash, 232-3; Assets: 234; and outlay an-
alyzed, 234, 235; determination of valu«
of, 238; Liabilities: 234; and funds an-
alyzed, 239, 240, 241; Revenue account!,
242, 243, 244; Profit and loss account,
245; Profits: disposal' of net, 246; pay-
ments to city from, 247; Taxes: income,
531, 532, 533; local, 547; Organization,
552 ff. ; holding of other offices by coun-
cillors, 552; chief executive officer and
head of engineering service, 552, 55J;
titles and salaries of 10 highest paid
subordinates, 553; Political conditions,
555; higher wages promised by candi-
dates, 555; Labor matters, 556 ft. ; pay-
ment for overtime, 556; vacations with
pay, 557; sick leave, 557; surety bonds
required, 557, 558; local benefit associa-
tions, 558; welfare work, and payment of
employees, 559; technical journals and
attendance at meetings, 559; Number
killed or injured, 560.

Glasgow municipal tramways: see also
Tramways, and for general references
preceding page 62 see Glasgow Elec-
tric Works; Tramways committee, 12;
Contract with James Dalrymple, Man-
ager, 17-18; Employment: in permanent
way department, 26-7; on recommenda-
tions of councillors, 26-8; in works de-
partment, 27-8; of car cleaners, 28; of
conductors and motormen, 28-30; select-
ing and discharging of employees. 570,
571; no age or citizenship restrictions,
571; Length of service: of car cleaners,
motormen and conductors, 28; of head
of engineering service, 570; of em-
ployees. 571; Unions of employees: 50-1,
577; Friendly societies, 51; open shoo,
577; not opposed to organized labor, 577;
No written contract with workmen, 77;
Rules for employees, 82; Sick and death
benefits, 89: benefit associations. 575;
Pensions. 90, 445, 575; Hours: 107, 108,
109, (J13-1C; reduction of, by municipal-

754

NATIONAL CIVIC FEDERATION.

ization, 106; no legal maximum of, 573;
Wages: 107, 108, 109, 616-17; of firemen,
110, 111; of fitters, 112; overtime, vaca-
tions and sick leave, 573, 574; payment
and fixing of, 575, 576; prizes and pen-
sions, 574, 575; union rates and trade
agreements, 576; paid by company and
city, 711-12, 722-3; payment of fares of
employees, 578; Date of beginning opera-
tion, 387; Character of original and
present organization, 387, 701; Early
History and changes in ownership,
388-92; Sentiment toward, 413, 414,
728-31; Municipal ownership and private
operation, 413, 719-22; Competing Tram-
ways, 415; Population of city and
area served, 416; Procedure for ac-
quisition or construction of works, 417;
Powers: financial, of city, 416, 417; to
build on property owned, 418; to lay
tracks in streets, and of operation, 419;
city, no right of eminent domain, 418;
Purchase of plants, 418, 419; Area sup-
plied and mileage, 424; Statutory pro-
visions: size and location of plants, 424;
nature of plant and equipment, 424-5,
426-9; extensions and improvements, 429;
service and inspection, 435-6; enforce-
ment of, 446-7; Fares: statutory provi-
sions as to, 429, 430, 431, 435; charged,
475, 476; changes In. 1900-6, 480; before
and after municipalization, 480, 706-9,
722; benefits to traveling public from
reduction of, 725-6; stages and fares, 732;
Issuance of bonds, 437; Use of income,
428; Sinking funds, 439, 487-8; Compensa-
tion for franchises, 440-1; Audit, 444, 481,
482, 630; Publicity of records, 444; Super-
vision: by central authorities, 447-9, 449-
50; local, 450-1, 452; Year covered by in-
vestigation, 453, 475; Generating sta-
tions. 453-4, 456; Sub-stations, 456-7, 458;
Engines, boilers, dynamos, 456; Under-
ground lines, 458; Overhead lines, 459;
Horses owned, 460; Cars: 460, 461; speed
of, 466-7; car service, 466, 467; condition
of, 467; no advertising on, 468, 728; Car
sheds, 461; Repair shops, 462; Track:
and paving, 462, 463; mileage, 464; Ap-
praisal, 464-5; Current data. 4fi6; Pas-
senger data, 466, 476-7; Transfers, 467;
Engineering tests. 468; Extensions. 468,
469, 431-2; by company and city. 704-5;
opposition of company to, 720; effect of,
on housing problem, 732-3; Street
work. 470, 471; improvement of street
service prior to paving, 470; Pur-
chase of supplies, 471, 472; Condi-
t'^n and care of equipment, 472, 473, 474;
Badees and uniforms, 473. 574: General
engineering matters. 473. 474; Traffic re-
ceipts. 478. 728; Accounts: system of, 481,
482; charging of particular items, 482,
483: all proper charges made, 488; ser-
vices not credited, 488; storeroom ac-
count, 489; Depreciation: payments to
funds, 483-5; during 1904-5, 530: charg-
ing of, 637. 639: Payments in aid of
rates. 487: Interest rate compared with
public service companies, 490; Liabili-
ties: cancelled, 490: and assets. 499; and
funds analvzed. 506-7; Coal and water
used. 490. 491; Canital: loan. 49'': raising
of. 493. 494; working. 494-5, 497: cash.
497-Rr Assets: 499: and outlay analyzed,
409-500. 505: Revenue account. 509. 728:
Exnenrtlturps analyzed , 510: Profit and
lo«*s account. 514: Taxes: income. 529-30.
532. 533; valuation for taxation. 1907.
5*16-7: local, 548; Oreanlzatlon. 569 IT.:
holdlnsr of oth*>r offices by councillors.
569: chief executive officer, 569: head of
engineering service, 569, 570; Political

conditions, 571-2, 716, 728; Labor mat-
ters: 672 ff. ; surety bonds required, 574;
technical instruction, 574; welfare work,
575; no strikes or labor disputes, 577;
laws relating to, enforced, 577; treat-
ment of employees, 577; technical jour-
nals and attendance at meetings, 578;
Number killed or injured, 578, 579; Set-
tlement of claims or damages, 579;
Workmen, 613-16; Traffic under com-
pany and city, 709-10, 725; Workmen's
cars and fares, 712, 724-5; Lease of, to
company: 719; success of, 719-20; labor
conditions under, 720-1; wages and
hours under, 720-1; poor service under,
722; Establishment of municipal opera-
tion, 722; Improvements under city,
722 ff. ; Change to electric traction,
722-3; Payments to Common Good,
profits and savings, 725, 727; Benefits
from municipal operation: to public,
726; to labor, 727; Financial results,
728; Statement of managers as to pur-
pose of, 737 and note.

Goodnow, Frank J. : chairman at London
hearings, 648, 678; remarks at London
hearings, 659 et seq,: statement on op-
position of citizens' associations to mu-
nicipal activities of Glasgow, 730 note.

Goodwill, payments for: 636.

Hawes, G. W. Spencer: remarks at Lon-
don hearing, 648 et seq.

Healy, Timothy: remarks at London hear-
ing, 652 ct seq.

Hearings in London: 648 ff.

History and Legislation, reports on: gas
works. 113 ff. ; electric works, 248 ff. ;
tramways, 383 ff . ; Tramway history,
699 ff.

Holidays of workmen: gas works, 557;
electric works, 563-4; tramways, 573;
Manchester gas works, 585; Birmingham
gas works, 592-3; Leicester gas and elec-
tric works, 594; Newcastle gas co., 597,
606; Glasgow electric works, 605; Central
Electric Supply Co., 607; St. James elec-
tric co., 608-9; City of London electric
co., 610-12.

Hours of labor of workmen: resolution
of Trades Union Congress on, 58; gas
workers, 102-3. 149; tramways, 445, 460,
711-12: Manchester gas works, 582-5;
Newcastle gas co... 597, 606; Manchester
electric works, 603: Liverpool electric
works. 60* : Glasgow electric works, 605;
Central Electric Supply Co., 607; St.
James electric co., 608-9; City of London
electric co., 610-12; Glasgow tramways,
613-16, 722-3: Manchester Carriage and
Tramways Co., compared with other
companies, 621; Liverpool tramways,
622-3: London C. C. tramways, 623-5,
744; Dublin United Tramways Ca., 625-7;
Norwich Electric Tramways Co., 627.

Housing problem: 160; effect of municipal
operation of tramways on, 732-3, 740.

Howe. F. C.: statement on wages and
hours of company and city tramways,
712.

Income, use of: gas works, 143-4; electric
works, 279-80; tramways, 438.

Income tax of public service undertak-
ings: 524-33.

Incorporation: of gas companies, 132;
electric companies, 265; tramway com-
panies, 417-18.

Industrial Freedom Leaerue: favoring of
nrivate ownership by. 665.

Injured, number of: by gas works, 560;
electric works, 569; tramways, 579.

Infection of work done: hy pas works,
198, 207: electric works, 326, 337-8; tram-
ways, 470.

INDEX.

755

Interest rates of municipal and privat

works: gas, 222; electric, 357; tramways

490.

Investigation, Committee on: hearings of

in London, 648 IT.
James, R. C. : reports of, on financia
matters: gas works, 208 ff. ; electric
works, 339 ff. ; tramways, 475 ff. ; al
undertakings, 628 ff.

Kennedy, A. B. W. : advice of, agains

municipalization of Newcastle-Supply

electric co., 255.

Killed, number of: by gas works, 560

electric works, 569; tramways, 578.
Klumpp, John B. : reports of, on engineer
ing matters: gas works, 162 ff.; electrii
works, 292 ff.

Labor and Politics, reports on: Iff., 550 ff
Labor, National Amalgamated Union of

44-7; benefit features, 47, 88.
Labor conditions: Statutory provisions
on: gas works, 149-54; electric works
283-6; tramways, 445; In gas works, 556-
60; electric works, 563-9; tramways
572-9, 710-12; generally, 693; under lease
of Glasgow tramways, 720-1.
Labor disputes, settlement of: electric

works, 568; tramways, 577.
Labor party: statistical progress of, 58

propositions endorsed by, 57-8.
Labor Representation Committees: statis-
tical progress, 58; political activity, 59
methods and policies, 59-60; program
in Sheffield, 60-1.
Lackie, W. W. : appointment as Manager

of Glasgow electrical dep't, 24.
Lamps: of gas works, 225; electric works,

315.

Leakage: gas works, 186.
Leeds municipal tramways: see also
Tramways; extensions by company and
city, 704-5; reductions in fares by com-
pany and city, 706-9; traffic, company
and city, 709-10; adoption of electric
traction, 723.

Leicester Gas Light and Coke Co.: his-
tory and municipalization of, 123-4.
Leicester municipal electric works: see
also Electric works, and for general ref-
erences preceding page 66 see Leicester
Municipal Gas Works; electric commit-
tee, 12; trade agreement with union, 53;
holidays, 594; workmen and wages, 593-4.
Leicester municipal gas works: see also
Gas Works; Councillors, 8; labor coun-
cillors, 61; Gas committee: 12; years of
service on, 13; Politics and council
committees, 13-14; political influence in
city departments, 33, 34; Employment:
selection and discharging employees,
33-4, 554; not affected by councillors,
33-4; Union of employees, 43; Wage
policy of, as to contractors, 63; Wages
of laborers in building trades, 65; Gas-
workers' contract, 74; Wages: 99, 100
101. 593-4; of fitters, 112; payment for
overtime, 556; vacations with pay, 557;
sick leave, 557; holidays, 594; Hours,
102: Date of origin and municipaliza-
tion. 115; Changes in ownership, 123-4;
Sentiment toward, 128, 129; Population
of city and area supplied. 129-30; Com-
petition with electric works, 130; Pow-
ers: to issue securities, 130; of city, to
tax for works, 130, 131; procedure to
construct or acquire works. 131-2; no
rieht of eminent domain. 133; to pur-
chase works, 133; to build on property
owned, 133; to lay mains in streets,
133-4: to operate 134-5; Purchase of
plants, 135; Area to be served, 136; Sta-
tutory provisions: extension of mains
137; service, 139-40; Prices: 138; and

rents, 209-12; for connections, 212; for
extensions, 212; changes in, 1900-6, 213,
214; before and after municipalization,
214; for street lighting, 225; No tests of
gas other than by city, 140; Issuance
of bonds, 143; Use of income, 144; Sink-
ing funds: 146; charges to, 220; invest-
ment of, 635; Audit, 147-8, 215-16, 630;
Pensions, 153, 558; Control other than by
city, 159; Process used and capacity,
162; Purification, 162; Description of
plant, 170-2: Distribution system, 182;
Holders and mains, 183; Meters, 183-4;
tests of, 187-8; Services: 183-4; improve-
ment of, prior to paving, 199; maps of,
199; pipes laid only when required, 206;
no record of, by date, 207; Apparatus
rented, 184; Appraisal, 185; Output, 186;
Consumption, 186, 187; Means to extend
use, 188-9; Air mixed with gas, 189;
Candle power, 189-91; Quality of gas,
192; Engineering tests, 193; Pressure,
193-4, 194-5; Interruptions of service, 195;
Extensions, 195, 196-7; Street work: by
direct employment, 197; street service
restored after opening, 198; use of
water in puddling ditches, 198; care of
trenches, 198; Underground structures:
location of, 199; protection of, 205; Per-
mits for street openings, 199; Purchase
of materials, 200, 201; Condition of plant
and equipment, 201-2; contemplated ex-
tensions, 202; Ventilation, and guarding
of machinery, 202; Offices, 202; Handling
of complaints, 203, 204; Badges and uni-
forms, 204; Employees: morale and dis-
cipline of, 204; length of service, 554,
555; voters, 555; number of, 556, 593-4;
Harmony between departments, 205; At-
tendance at fires, 205; Reports of opera-
tion to manager, 205; Tools, 206; Atten-
tion to orders to turn on gas, 206; Work
of employees in consumers' houses, 207;
Accounts: system of, 215-16; kept sepa-
rate from city's, 206; charged with
amount spent for taxes, etc., 216-17; ex-
penses not charged, 217, 220; storeroom
account, 222; Depreciation: charges for,
217, 637, 639; Reserve funds, 218, 644;
Payments in aid of rates, 219; Interest
rate compared with public service com-
panies, 222; Liabilities: cancelled, 222;
balance sheet, 234; and funds analyzed,
239, 240, 241; Records of expenditures
on construction work, 222-3; Coal and
water used, 223; No enrichers used, 223;
By-products, 224; Public lighting, 225;
Lamps. 225; Ownership of lampposts,
225; Budgets, 225-6; Capital: loan, 227,
229; working, 230, 231; cash, 232-3; As-
sets: 234; and outlay analyzed, 234, 236;
determination of value, 238; Revenue
accounts, 242, 243, 244; Profit and loss
account, 245; disposal of net profit, 246;
Taxes: income. 531, 532. 533; local, 547;
Organization, 552 ff.; chief executive of-
ficer, 552. 553; head of engineering ser-
vice. 553; salaried o^ces, 553, 554;
Political conditions, 555 ff. ; votes at
elections, 555; higher wages promised by
candidates, 556; Labor matters, 556 ft*.;
surety bonds renuired. B57. 558: benefit
associations, 558: welfare work. 559;
payment of employees. 559; bicycles
used. 559; technical Journals and at-
tendance at meetings. 559: Number In-
lured, 560; Bank overdrafts. fi34.
-egislation: see History and Legislation;
difficulties nut in way of private owner-
ship by, 678 et seq.
liabilities: Cancelled: gas works, 222;
electric works, 357; tramways, 490; Pro-
vision for payment of: gas works, 232;

756

NATIONAL CIVIC FEDERATION.

electric works, 368; tramways, 497; As
sets and: gas works, 233-41; electric
works, 370, 376-7; Manchester tramways
396; all tramways, 499, 506-8.
Licenses, local: 548-9.
Lighting, public: see Public lighting.
Light Railways Act of 1896: 422.
Liverpool municipal electric works: see
also Electric Works; Councillors: resi-
dence and occupation of, 7-8; labor, 61
holding of other offices by, 560; Elec-
tric Committee, 11; Politics and coun-
cil committees, 13; National Amal-
gamated Union of Labor, 46; Wages
policy as to contractors, 63; minimum
wage, 68-9; of firemen, 110, 111; of
fitters, 112; vacations and sick leave
536, 564; payment of, 567; payment ol
tramway fares, 568; paid, 604; Date of
beginning supply and of municipaliza-
tion, 250; Municipalization, 251-4; Senti-
ment toward, 258, 259; Competition:
none with electric companies, 260; with
gas company, 264; Population of city
and area supplied, 263, 271; Powers:
to issue securities, 264; taxing, of city,
264; to acquire works, 265, 266; to lay
mains in streets and of operation, 266;
area to be served, 271; Statutory provi-
sions: plant and equipment, 271-3; ex-
tensions, 274-5; service, 277-8; interrup-
tions of service infrequent, 323; Prices:
275-7, 340, 342; for connections, 342; for
extensions, 343; changes in, 1900-6, 343,
345; before and after municipalization,
345; Issuance of bonds, 278, 279; Use of
income, 279-80; Sinking funds: provi-
sions regarding, 280; payments to, 356;
unapplied, 357; investment of, 635-6;
Audit, 282-3, 346, 630; Publicity of rec-
ords, 283; Pensions, 284-5; Supervision
by central authorities, 286-90; Year cov-
ered by investigation, 292, 339; Generat-
ing stations, 293-5; Distribution system,
307, 308; Methods of supplying current,
311; Steam plant, 312; Dynamos, 313;
Appraisal 314; Meters, services and con-
sumers, 315; tests of meters, 338; Lamps,
315; Output, 316; Consumption, 317;
Owns all conduits used, 317; Means to
extend business, 319; appliances for rent
or sale, 320; Current regulation, 320,
321; Outages, 321; Voltage, 322; Tests
and experiments, 322; Extensions: policy
as to, 323, 324, 325; petitions for, 324;
promptly made, 325; power as to, 325.
326; Street work: 326, 327; trenches and
puddling ditches, 327; prior to paving,
327; permits for openings, 328; Under-
ground structures: locating of, 328; pro-
tection of. 334: Purchase of materials,
328, 329; Condition of plant and equip-
ment. 329, 330. 331; Handling of com-
plaints. 332, 333; Badges and uniforms,
333, 565; Employees: 333, 334, 604; At-
tendance at fires, 334; Reports of opera-
tion to manager, 335; Drafting rooms,
335; Tools, 335, 336; Prompt attention
to orders to turn on current, 336; Ser-
vices: not run except where needed,
336; records of, 337; Work in consum-
ers' houses, 337, 338; Collection of bills,
345, 346; Accounts: system of, 346;
proper charging of items, 347; all ex-
penses charged, 356; storeroom account,
357; Renewals fund, 348; Reserve fund,
350, 646; Payments in aid of rates, 355;
Interest rate compared with public ser-
vice companies, 357; Liabilities: re-
deemed, 357: and assets, 370; and funds
analyzed, 376, 377; Records of expendi-
tures on construction work, 357; Fuel
and water used, 358; Public lighting, 359;

Budgets, 360; Capital: loan, 362; work-
ing, 364, 368; cash, 368-9; Assets: 370;
and outlay analyzed, 371, 375; Revenue
account, 378; Expenditures analyzed
379, 380; Profit and loss account, 381;
disposal of net profits, 382; Taxes, 548;
Organization, 560 ff. ; chief executive of-
ficer and head of engineering service,
560; salaried offices, 561; Political con-
ditions, 562; votes at city elections, 562;
Labor matters, 563 ff. ; employing and
discharging men, 561, 562; welfare work,
566; benefit associations, 566; technical
journals and attendance at meetings,
569; None injured in year, 569; Bank
overdrafts, 634; Charging of deprecia-
tion, 637, 640.

Liverpool municipal tramways: see also
Tramways, and for general references
preceding page 70 see Liverpool Munici-
pal Electric Works; Membership of
Committee, 11; Organizations of em-
ployees: 51; not opposed to, 577; friendly
societies, 51; Workmen's contract, 77,
81; Tramways Benefit Society, 89; bene-
fit associations, 575; Pensions, 91 445
575; Wages: 107, 108, 109, 622-3; of
fitters, 112; overtime, vacations and sick
leave, 573, 574; prizes, 574; free service
to employees, 575; payment and fixing
of, 575, 576; payment of fares of em-
ployees, 578; holidays, 622-3; paid by
company and city, 711-12; Hours: 107
108, 109, 622-3, 711-12; Date of beginning
operation and municipal operation, 388;
Character of original and present organ-
ization, 388; Early history and changes
in ownership, 399-402; Municipal owner-
ship and private operation, 413,
703, 737-8; Sentiment toward, 413, 414;
Competing tramways, 415; Population
of city, 416; Powers: financial, of
city, 416, 417; procedure to construct
or acquire works, 417; to build on
property owned, 418; city, no right of
eminent domain, 418; to lay tracks in
streets, 419; of operation, 419; Purchase
of plants, 418, 419, 420; Population of
area served, 424; Mileage: 424, 464; track
and paving, 462-3; Statutory provisions:
size and location of plant, 424; nature
of plant and equipment, 424-5, 426-9;
extensions and improvements, 429; ser-
vice and inspection, 435-6; enforcement
of, 446-7; Fares: 429, 430, 432-3, 435, 475
476; changes in, 1900-6, 480; before and
after municipalization, 481, 706-9, 739;
workmen's cars and fares, 712; Issuance
of bonds, 437; Use of income, 438; Sink-
Ing funds: 439, 440, 487-8; investment of,
635-6; Compensation for franchises, 440,
441; Audit, 444, 481, 482. 630; Publicity
of records, 444; Supervision: by central
authorities, 447-9, 449-50; local, 450-1,
452; Year covered by investigation, 453,
475; Generating stations, 454; Overhead
equipment, 459; Horses, 460; Cars: 460,
461; car service, 466, 467; condition of,
467; advertising on, 468; Car sheds, 461;
Repair shops, 462; Appraisal, 464-5; Cur-
rent data, 466; Passenger data, 466,
476-7; Transfers, 467; Engineering tests,
468; Extensions: 468, 469, by company
and city, 704-5; Street work, 470,
471; Improvement of street services
prior to paving, 471; Purchase of mate-
rials, 471, 472; Condition and care of
equipment, 472, 473, 474; Badges and
uniforms, 473, 574; General engineering
matters, 473, 474; Traffic receipts, 478;
Accounts: system of, 481, 482; charg-
ing of particular items, 482, 483; charg-
ing of service to city officials, 488; ser-

INDEX.

757

vices not credited, 489; storeroom ac-
count, 489; Depreciation: payment to
funds, 485-6; charging of, 637, 639-40;
Reserve funds, 485-6, 645; Payments in
aid of rates, 487, 740; Interest rate com-
pared with public service companies,
490; Liabilities: cancelled, 490; balance
sheet, 499; and funds analyzed, 506, 507;
Coal used, 490; Water used, 491; Capi-
tal: loan, 492; raising of, 493, 494; work-
ing. 495-6, 497; cash, 498; Assets: 499; and
outlay analyzed, 499, 501-2, 505; Rev-
enue accounts, 509; Expenditures an-
alyzed, 510; Profit and loss account,
514; Taxes: income, 533; local, 548; Or-
ganization, 569 ff . ; holding of other of-
fices by councillors, 569; chief executive
officer, 569; head of engineering service,
570; salaried officers, 570; Employment:
and discharging of employees, 570, 571;
promotion, 571; citizenship and age re-
strictions, 571; distribution of positions
among needy, 571; Political conditions,
571 ff . ; employee voters, 571 ; no em-
ployees hold city office, 571; employees
not active in party work, 572; political
assessments not expected, 572; no evi-
dence of political influence of companies
on franchise-controlling authorities, 572;
Free service, 572; Labor matters, 572 ff.;
number of employees, 572; technical in-
struction, 574; technical journals and at-
tendance at meetings, 578; surety bonds
required, 574; welfare work, 575; no
strikes or labor disputes, 577; laws re-
lating to labor enforced, 577; employees
well treated, 577; share of employees in
management, 578; Number killed or in-
jured, 578, 579; Settlement of claims for
damages, 579; Payment for goodwill, 636;
Reasons for municipalization, 703, 737-8;
Traffic under company and city, 709-10,
740; Establishment of municipal opera-
tion, 738; Improvements under city,
739-40; Effect of municipal operation on
housing problem, 740; Gain from mu-
nicipal operation, 740; Offer of company
to lease rejected, 740-1.

Loans, temporary: 633-4.

Local Government Board: Approval: of
bond issues by cities, 142-3; sinking
funds for gas loans, 144-6; Control: of
cities, 156; electric undertakings, 286-7,
288-90; tramways, 448, 449-50; borrowing
by undertakings, 633, 634; Returns to, by
cities as to loan debts, 635.

London, City of, Electric Lighting Co.:
see also Electric Works; Wages: of
firemen, 110, 111; fitters, 112; salaries,
561; overtime, vacations and sick leave,
563, 564; gratuities, 566, 567; fixing and
payment of, 567; union rates not ob-
served, 567; attempt of employees to in-
crease, 568; payment of fares, 568, 569;
of all workmen, 610-12; Date of begin-
ning supply, 250; Early history of com-
panies, 256-8; Relations with City Cor-
poration, 257-8; Municipalization of, dis-
cussed, 257; Sentiment toward, 258, 259;
Competition: with electric companies,
260-2; gas companies, 264; with buses,
661; Population of city and area sup-
plied, 263, 270, 271; Incorporation, 265;
Charter perpetual, but subject to Par-
liament, 265; Powers: to acquire works,
265, 266; to lay mains in streets and of
operation, 266; of city, to purchase, 267,
268-9; area to be supplied, 270, 271; Stat-
utory provisions: plant and equipment,
271-3, 274; extensions, 274-5; service,
277-8; Prices: 275-7, 341, 342; for con-
nections, 342; extensions, 343; changes
in, 1900-6, 344, 345; Issue of securities,

278, 279; Audit, 283, 346, 630; Publicity of
records, 283; Supervision: by central au-
thorities, 286-90; city, 290-1; Year cov-
ered by investigation, 292, 339; Generat-
ing stations, 301-3; Distribution system,
307, 310; Methods of supplying current,
312; Steam plant, 312; Dynamos, 313;
Appraisal, 314; Meters, services and con-
sumers, 315; testing of meters, 318, 319;
inspection of services, 337; Lamps, 315;
Output. 315, 316; Consumption, 316, 317;
Owns all conduits used, 317; Means to
extend business, 319; Appliances for sale
or rent, 320; Current regulation, 321;
Outages, 321, 322; Voltage, 322; Tests
and experiments, 322; Interruptions of
service infrequent, 323; Extensions:
making of, 323, 324, 325; power as to,
326; Street work: 326, 327; prior to pav-
ing, 327; Trenches and puddling ditches,
327; Underground structures: location
of, 328; protection of, 335; Permits for
street openings, 328; Purchase of mate-
rials, 328, 329; Adequacy of plant, 329;
Condition of plant and equipment, 330,
331; Handling of complaints, 332, 333;
Badges and uniforms, 333, 565; Em-
ployees: 333, 334, 563, 610-12; employing
and discharging, 562; Attendance at
fires, 334; Reports of operation to man-
ager, 335; Drafting room, 335; Tools,
336; Orders to turn on current promptly
attended to, 336; Work in consumers'
houses, 337, 338; Collection of bills, 345,
346; Accounts: system of, 346; proper
charging of items, 347; storeroom ac-
count, 357; Depreciation funds: 349,
351-3; statutory obligation to write off
depreciation against revenue, 637; pro-
visions with regard to, 641; Reserve
funds, 351-3, 646-7; Interest rate com-
pared with city's, 357; Records of ex-
penditures on construction work, 357;
Coal and water used, 358; Public light-
ing, 358, 359; Budget, 360; Capital: share,
360, 361; loan, 363, 369; working, 367,
368; cash, 368-9; Assets: 370; and out-
lay analyzed, 370, 373-4, 375; Liabilities:
370; and funds analyzed, 376, 377; Rev-
enue account, 378; Expenditures an-
alyzed, 379, 380; Profit and loss account,
381; disposal of net profit, 382: Taxes:
income, 531, 532, 533; local, 548; Or-
ganization, 560 ff. ; chief executive offi-
cer, 560; head of engineering service,
560, 561; Labor matters, 563 ff.; surety
bonds required, 565; technical instruc-
tion, 565; technical journals and attend-
ance at meetings, 569; pensions, 566;
benefit associations and welfare work,
566, 567; settlement of labor disputes,
568; opposition to organized labor, 568;
Number injured in year, 569; Hours and
holidays, 610-12.

London County Council tramways: see
also Tramways; Municipal and Parlia-
mentary voters, 1; Disfranchisement of
workmen, 5; Councillors, 8; Politics and
council committees, 13; Tramway com-
mittees, 18-19; Powers of manager, 19;
Powers of L. C. C. over tramways, 18,
19; Organizations of employees, 51-2;
Wages: lower than union rates, 53;
policy of, 62-3, 69; recommendations of
Works Committee as to, 64; paid, 107,
108, 109, 623-5; of firemen, 110, 111; of
fitters, 12; influenced by social consider-
ations, 744; Labor representatives, 61;
One day's notice required to quit work
or discharge employees, 77; Workmen's
contract, 81-2; Sick and deat benefits,
88; Pensions, 90-1, 445; Hours, 106, 107,
623-5; company and city, 712, 744;

758

NATIONAL CIVIC FEDERATION.

Supervision by L. C. C. of gas com-
panies, 160; Date of beginning opera-
tion and municipal operation, 388;
Early history and changes in owner-
ship, 401-11, 741-2; Policy of Metropolitan
Board of Works as to, 404; Attitude of
L. C. C. toward municipal operation
of tramways, 405; Sentiment toward,
409-11, 413, 414; opposition of private in-
terests, 653-4; moderate party not op-
posed to, 744-5; criticisms of, answered,
745; Municipal ownership and pri-
vate operation, 413; Competing tram-
ways, 415; Population of city and
area served, 416, 424; Powers: financial,
of city, 416-17; to lay tracks in streets
and operate, 419; to borrow, 632-3; Pro-
cedure to construct or acquire plants,
417; Construction on property owned,
418; No right of eminent domain, 418;
Purchase of plants, 418, 419; Statutory
provisions: size and location of plants,
424; nature of plant and equipment,
424-5, 426-9; extensions and improve-
ments, 429; service and inspection,
435-6; enforcement of, 446; Fares: 429
430, 431, 435, 475, 476, 744; before and after
municipalization, 481; low, 649; Issuance
of bonds, 437-8; Use of income, 438;
Sinking funds, 439, 440, 487-8, 649; Com-
pensation for franchises, 440, 441-2;
Audit, 444, 481, 482, 630; Publicity of
records, 444; Supervision: by central
authorities, 447-9. 449-50; local, 450-1,
452; Year covered by investigation, 453,
475; Generating stations, 454-5, 456; En-
gines, boilers, dynamos, 456; Substa-
tions, 457, 458; Underground lines,
458-9, 718; Horses, 460; Cars: 460, 461;
car service, 466, 467; condition of, 467;
advertising on, 468; Car sheds, 461; Re-
pair shops, 462; Track, 462-3, 464; Pav-
ing: 462-3; compared with London
United Tramways, 661; Appraisal, 464-5;
Passengers: carried, 466, 476-7; of horse
cars and electric trams, 650; per car
mile, compared with London United
tramways, 651-2; Transfers, 467; En-
gineering tests, 468; Extensions, 468, 469;
Street work, 470, 471; Purchase of sup-
plies, 471, 472; Condition and care of
equipment. 472, 473, 474; Badges and uni-
forms, 473; General engineering mat-
ters, 473, 474; Receipts: 478; by horse
and electric cars, 650; up to estimates,
649; Accounts: system of, 481, 482;
charging of particular items, 482, 483;
all expenses charged, 488; all credits
made, 489; storeroom acount, 490; De-
preciation: funds, 486, 666; charging of
637, 640; Reserve funds, 486, 645-6, 666;
Payments in aid of rates, 487, 649; In-
terest rate compared with public service
companies, 490; Liabilities: cancelled,
490; balance sheet, 499; and funds an-
alyzed, 506, 507; Coal used, 490; water
used, 491; Capital: loan, 492; raising
of, 493, 494; working, 497; cash, 497-8:
amount of, 649; dead capital, represented
by horse cars, 650; interest on unused
capital, 660; Assets: 499; and outlay an-
alyzed, 499, 502-4, 505; Revenue acount:
509; repairs charged to, 660; Expendi-
tures: analyzed, 510, 511-12; on system,
649; for widening streets, 650, 689, 745-6:
for power, 651; percentage of, to earn-
ings, 659; for reconstruction, 660; main-
tenance and repairs, 660; Profit and loss
account, 514, 515; profits on capital, 649.
746; Taxes: income, 532, 533; local, 548;
Licensed and regulated by Metropolitan
Police Commissioners, 548; Labor mat-
ters, 572 ff. ; Employees : 572 ; selection

of, 656-7; Payment for goodwill, 636;
Working men's cars and and fares, 651,
713; Advantage to passengers, 652; Age
and mileage of electric trams, 660; Esti-
mated cost of production of electricity,
671-2; Advantage over private trams,
683; Solution of electric supply problem,
686-7; political conditions, 716; Reasons
for and benefits of municipal operation,
743.

London, Deptford & Greenwich Co. (tram-
way) : municipalization of, 407.

London Electric Supply Corporation:
competitor of City of London Electric
Lighting Co., 260; competitor of West-
minster and St. James electric compa-
nies, 262.

London Gas Light and Coke Co.: area
supplied, 126.

London Municipal Society: 16.

London Street Tramways Co.: municipal-
ization of, 407.

London Tramway Co.: municipalization
of, 407.

London United company (tramway) : ac-
quirement of, by London United Tram-
ways Co., 412.

London United Tramways Co.: see also
Tramways; Wages and hours, 107, 108,
109, 712; Date of beginning operation,
388; Early history and changes in owner-
ship, 411-12; Sentiment toward, 414;
Competing tramways, 415; Population:
city, 416; area served, 424; Incorpora-
tion: date and place of, 417; method of,
418; duration of, 418; Powers: to build
on property owned, 418; to lay tracks
in streets, 419; of operation, 418; of
Parliament, to amend charter, 418; city,
no right of eminent domain, 418; Pur-
chase of plants, 418, 420-3; Statutory pro-
visions: size and location of plants, 424;
nature of plant and equipment, 424-5,
425-6, 426-9; extensions and improve-
ments, 429; service and inspection, 435;
enforcement of, 446-7; Fares: provisions
as to, 429, 430, 431, 433, 435; charged,
475, 476; changes in, 480, 706-9; Issuance
of stock, 436; Issuance of bonds, 438;
Compensation for franchises, 440, 442-3;
Audit, 444, 481, 482, 630; Publicity of
records, 444; Supervision: central au-
thorities, 447-9, 449-50; local, 450-1, 452;
resistance to, 452; Year covered by in-
vestigation, 453, 475; Generating sta-
tions, 455, 456; Engines, boilers, dyna-
mos, 456; Substations, 457, 458; Under-
ground lines, 459; Overhead equipment,
459; Horses, 460; Cars: 460, 461; car ser-
vice, 466, 467; condition of, 467; adver-
tising on, 468; Car sheds, 461, 462; Re-
pair shops, 462; Track: and paving,
462-3; mileage, 464; laying of double, in
a too-narrow street, 659; Appraisal,
464-5; Current data, 466; Passengers car-
ried: 466, 476-7, 709-10; per car mile com-
pared with London C. C. trams, 651-2;
Transfers, 467; Engineering tests, 468;
Extensions, 468, 469, 470; Street work, 470,
471; Improvement of street services prior
to paving, 471; Purchase of supplies,
471, 472; Badges and uniforms, 473;
General engineering matters, 473, 474;
Traffic receipts, 478; Accounts: system
of, 481. 482; charging of particular items,
482, 483; services not credited, 489; store-
room account, 490; Depreciation and re-
serve funds, 486, 666; charging of de-
preciation, 640: Interest rate compared
with city's, 490; Coal used, 490; Capi-
tal; share, 491; loan, 492; raising of,
493; working, 497: cash, 497-8; excess
of, over structural values, 650, 718: rep-

INDEX.

759

resenting provisional order, 651; Assets:
499; and outlay analyzed, 499, 504, 505;
Liabilities: 499; and funds analyzed, 506,
507; Revenue accounts, 509; Expendi-
tures: analyzed, 510; compared with
London C. C. trams, 651; Profit and loss
account, 514, 515; Profits: on capital,
649-50; compared with London C. C.
trams, 651; Taxes: income, 533; local,
548; Goodwill paid for, 636; Wayleaves
and consents paid for, 650; Working
men's cars and fares, 651, 713; Paving of,
compared with London C. C. trams, 661.

Lubbock, Sir John: remarks at London
hearing, 678 et scq.

MeNulty, F. J. : remarks at London hear-
ing, 691 et seg.

Madgen, William L. : remarks at London
hearing, 678 et scq.

Mail contracts of tramways: 479-80.

Mains: Gas: power of works to lay in
streets, 133-4; extension of, 137-8; pay-
ment of cost, 212; Electric: power to
lay in streets, 266; extension of, 274-5;
payment of cost of, 343; More expensive
to run in Gt. Britain than in America,
681.

Maltbie, Milo R. : Reports of, on History
and Legislation: gas works. 113 ff . ;
electric works, 248 ff. ; tramways, 383 ff. ;
Report on Taxation of public service
works, 516 ff. ; Remarks at London hear-
ings, 652 et seq.

Manchester Carriage and Tramways Co.:
lessees of Manchester tramways, 393;
wages paid, compared with other com-
panies, 618-21.

Manchester municipal electric works: see
also Electric Works; Councillors, 8;
labor, 61; Electricity committee, 12;
Years of service on council committees,
13; Wages: policy as to contractors, 63;
minimum scale, 68; of firemen, 110, 111;
fitters, 112; salaries, 561; overtime, vaca-
tions and sick leave, 563, 564; fixing and
paying, 567; union rates observed, 567;
attempt of employees to increase, 568;
payment of tramway fares, 568; paid,
603; Benefit associations, 89, 566; Date
of beginning supply and of municipal-
ization, 250; Establishment of, 251; Sen-
timent toward. 258, 259; Competition:
no electric, 260; city gas works, 264;
Population of city and area served, 263,
271; Powers of city as to works: to
issue securities, 264; of taxation, 264;
to acquire, 265, 266; to lay mains in
streets, and of operation, 266; Purchase
of plants, 267; Plant and equipment:
provisions as to, 271-3: adequate, 329;
condition of, 329. 330, 331; Extensions:
274-5, 323, 324. 325. 326; free of charge,
343; reasons for non-extension outside,
669; Prices: provisions as to, 275-7;
charged, 340, 342; changes in, 1900-6, 343,
345; Service: provisions as to, 277-8; cur-
rent regulation, 320, 321; outages, 321;
fluctuations in voltage, 322- interruptions
of, 322, 323; Issuance of bonds, 278-9; Use
of income, 279-80; Sinking funds: provi-
sions as to. 280; payments to, 356;
Audit. 282, 346, 630; Publicity of records,
283: Pensions, 283, 565; Supervision by
central authorities, 286-9, 289-90; Year
covered by investigation. 292, 339; Gen-
erating stations, 292-3; Distribution sys-
tem, 307-8, 311; Steam plant. 312; Dyna-
mos, 313; Apnraisal, 314: Meters: 315;
tests of, 318; Services: 315; running of.
prior to naving, 336; records of, 337;
Lampa. 315: Output, 315, 316; Consump-
tion, 316. 317; Owns all conduits used,
317; Means to extend business, 319; Ap-
pliances rented, 320: Experiments and

tests, 322; Street work: 326. 327; per-
mits for, 328; Underground structures:
locating. 328; protecting, 334; Purchase
of supplies, 328, 329; handling of com-
plaints, 332, 333; Badges and uniforms,
333; 565; Employees, 333, 334, 563, 603;
Attendance at fires, 334; Reports of op-
eration to manager, 335; Drafting rooms,
335: Tools, 335, 336; Prompt attention to
orders to turn on current, 336; Work in
houses, 337, 338; Collection of bills. 346;
Accounts: system of, 346; proper charg-
ing of items, 347; services not charged,
356; storeroom account kept, 357; De-
preciation: funds, 348; charging of,
640-1; Reserve funds, 349; Payments in
aid of rates, 355; Interest rate compared
with companies, 357; Liabilities: re-
deemed, 357; present, 370; and funds
analyzed, 376, 377; Records of expendi-
tures on construction work, 357; Coal
and water used. 358; Public lighting.
359; Budgets, 360; Capital: loan, 362;
working, 364, 368; cash, 368-9; Assets:
370; and outlay analyzed, 370, 371, 375;
Revenue account, 378; Expenditures an-
alyzed, 379, 380; Profit and loss account,
381; Disposal of profit, 382; Taxes: re-
turn for 1906 income, 528; assessment for
income, 531, 532; income tax payments,
533; assessment for, similar to gas
works, 543; local, 548; Organization,
560 ff.: Councillors holding other office,
560; Chief executive officer and head
of engineering service, 560, 561; Salaried
offices, 561; Employment, 561, 562; Politi-
cal conditions, 562 ff. ; Votes at elec-
tions, 562: Workmen voters, 562; Higher
wages promised by candidates, 563: La-
bor matters, 563 ff. : Surety bonds of
employees, 565; Welfare work, 566;
Strikes, and settlement of disnutes, 568;
Bicycles, 568; Technical journals and at-
tendance at meetings, 569; Eight injured
in year. 569: Hours. 603.
Manchester municipal gas works: see
also Gas Works; Councillors: 8; labor,
61; Gas committee: 12; years of service
on, 13: Strike of employees, 42; Unions,
48; No written contract with each work-
man, 77; Sick and death benefits, 88;
Wages: policy as to contractors, 63;
minimum scale, 68; paid, 99, 100, 101,
582-5; of fitters, 112; overtime and vaca-
tions, 556. 557. 585; Hours, 102. 582-5;
Labor in retort houses: amount of work
done, 103; large number of men for,
104-5; cost of, 104-6; Date of origin, 115-
16; Purchase of plants, 116, 123, 135;
Early history, 122-3; Sentiment toward,
128, 129; Population of city and area
served, 129-30; Competition with electric
works, 130; Powers of city as to works:
to issue securities, 130; of taxation, 130,
131; no. of eminent domain. 133; to pur-
chase, 133; to build on property owned,
133; to lay mains in streets, 133-4; to
operate, 134-5; Procedure to construct
or acquire works, 131-2; Area to be
served, 135-6; Extensions, 137, 195, 196,
197; Service: provisions on, 139-40; in-
terruptions of, 195; No tests other than
by city, 140; Issuance of bonds. 143; Use
of income, 144; Sinking funds: 145-6;
charges to, 219. 220: Audit. 147-8, 215-16.
630: Pensions. 152-3: Process used and.
daily capacity, 162; Description of plant,
168-70: Distribution system. 181-2; Hold-
ers and mains, 183; Meters: 183-4; tests
of, 187-8; Services: 183-4; improvement
of, prior to naving. 199; maps of. 199;
pipes run only where reouired, 206: no
records of. by date, 207: Annaratus
rented, 1S4; Appraisal. 185; Output, 186;

760

NATIONAL CIVIC FEDERATION.

Consumption, 186,187; Means to extend
business, 188-9; No air mixed with gas,
189; Candlepower, 189-91; calorific value,
192; Purity, 192; Chemists and labora-
tories, 192; Engineering tests, 193; Pres-
sure, 193-5; Street work: 197. 198; per-
mits for, 199; Underground structures:
locating, 199; protecting, 205; Purchase
of supplies. 200, 201; Condition of plant
and equipment, 201, 202; Ventilation and
guarding of machinery, 202; Offices, 202;
Handling of complaints, 203, 204; Badges
and uniforms, 204; Employees: character
of, 204; number of, 556, 582-5; payment
of, 559; Attendance at fires, 205; Reports
of operation to manager. 205; Tools,
206; Attention to orders to turn on gas,
206; Work in houses, 207; Prices and
rents, 209-12; for connections and exten-
sions, 212; changes in, 1900-1906, 213,
214; for street lighting, 225; Collection
of bills, 215; Accounts: system of, 215-17;
expenses not charged, 217, 220; all ser-
vice credited, 221; storeroom account,
222; Depreciation: charges for, 217;
charging of, 637, 639; Reserve fund, 218,
644; Payments in aid of rates, 219; In-
terest rate less than of companies, 222;
Liabilities: cancelled, 222; present, 234;
and funds analyzed, 239, 241; Records
of expenditures on construction, 222-3;
Coal, enrichers and water used, 223;
By-products, 224; Public lighting, 225;
Lamps: 225; ownership of posts, 225;
Budgets, 225-6; Capital: loan, 227, 229;
outlay from revenue, 229; working, 230;
cash, 232-3; Assets: 234; and outlay an-
alyzed, 234, 236; determination of value
of, 238; Revenue accounts, 242, 243, 244;
Profit and loss account, 245; Disposal
of profit, 246; Taxes: income, 531, 532,
533; assessment for, 543; local. 547; Or-
ganization, 552 ff. ; Chief executive officer
and head of engineering service, 552,
553; Labor matters, 556 ff. ; Technical
journals and attendance at meetings,
559; Number injured, 560.
Manchester municipal tramways: see also
Tramways; Councillors: 8; labor, 61;
Wages: policy as to contractors, 63;
minimum scale, 68; paid, 107, 108, 109,
618; comparison of, company and city,
620-1, 711-12; Resolution of Committee
against recommendation of applicants
by councillors, 34; Relations with Amal-
gamated Ass'n of Tramway and Vehicle
Workers, 49-50; Political conditions
good, 50, 716, 736-7; Municipal Em-
ployees' Ass'n, 50; No written contract
with workmen, 77; Sick and death
benefits, 88; Hours: company and city,
106. 711-12; present. 107. 108. 109; Date
of beginning operation. 387: Present and
original character. 387; Early history
and changes in ownership. 392-8: es-
tablishment and lease of, 733-4: Assets:
1906, 396: and outlay analyzed. 499, 500-1,
505; Liabilities: 1906, 396: cancelled. 490;
present, 499; and funds analyzed, 506-7;
Revenue account: 1876-96. 395; present,
509: Capital account, 1876-96, 396; Mu-
nicipal ownership and private operation,
413: Sentiment toward. 413. 414; Com-
peting tramways, 415: Population: city,
416; area. 424; Procedure for acquisition
or construction of plants, 417; Powers of
city as to works: financial. 416, 417:
to build on property owned. 418; no
rieht of eminent domain. 418; to lay
tracks In streets, and to operate. 419;
Purchase of plants. 418, 419-20: Statu-
tory provisions: plants and equipment,
424-5, 426-9; extensions and improve-
ments. 429; service and Inspection,

435-6; enforcement of, 446; Track: mile-
age, 424, 464; and paving, 462-3; Fares:
provisions as to, 429, 430, 431-2, 435;
charged, 475, 476; for freight and ex-
press service, 479; changes in. 1900-6,
480; company and city, 481- 706-9; work-
men's cars and, 712; Issuance of bonds,
437; Use of income, 438; Sinking Funds.
439, 440, 487-8; Compensation for fran-
chises, 440. 441; Audit, 444. 481, 482. 630;
Publicity of records, 444; Pensions,
445; Supervision: central. 447-9. 449-50;
local, 450-1, 452; Year covered by in-
vestigation, 453, 475; Generating sta-
tions, 454; Overhead equipment, 459;
Horses, 460; Cars: 460. 461; service of,
466, 467; no advertising on, 468; Car
sheds, 461, 462; Repair shops, 462; Ap-
praisal, 464-5; Current data, 466; Pas-
senger data: 466, 476-7; company and
city, 709-10; Transfers, 467; Engineer-
ing tests, 468; Interruptions of service,
468; Extensions: making of, 468, 469;
company and city, 704-5; in other cities,
734; Street work, 470, 471; Improvement
of street services prior to paving, 470;
Purchase of supplies, 471, 472; Condition
of equipment, 472, 473, 474; Badges and
uniforms, 473; General engineering mat-
ters, 473, 474; Traffic receipts, 478; Ac-
counts: system of, 481, 482, 483; services
not charged, 488; credits not made,
488-9; storeroom account, 489; Depre-
ciation: and reserve fund, 485; charg-
ing of, 637, 640; and renewals fund, 646;
Payments in aid of rates, 487; Interest
rate compared with companies, 490;
Coal used, 490; Water used, 491; Capital:
loan, 492; raising of, 493, 494; working,
495, 497; cash, 497-8; Expenditures an-
alyzed, 510; Profit and loss account, 514;
receipts and profits, 736; disposal of
profit, 736; Taxes: income, 532, 533; lo-
cal, 548; Purpose of: to distribute popu-
lation, 734; statement of manager as to,
737: Express service, 734-6; Benefits of
municipal ownership to labor, 736, 739.

Maps of street work: gas, 199; electric,
286, 327; tramway, 471.

Mechanics, skilled: organizations of, 55-6;
wages of, 111-12.

Meters of works: Gas: 183-4; tests of,
187-8; rents of, 209-12; Electric, 315.

Mileage of tramways: 424, 464; car, 466;
before and after municipalization, 704-5.

Minimum wage and trade union wages:
62-69.

Moffett, Edward A. : remarks at London
hearing, 654 et seq.

Monopoly rights: 683; demanded for pub-
lic undertakings, 697-8; see also Com-
petition.

Morse, Sydney: remarks at London hear-
ing, 678 et seg.

Motormen, tramway: employment of, in
Glasgow, 28-30.

Municipal Employees' Ass'n: growth of,
36, 37-8; principles of, 36-7; use of politi-
cal influence, 36-7; demand for higher
wages than private employees, 38; con-
flicts with trade unions, 39-40; present
status, 40-1; demand for right of appeal
before dismissal. 41; organization at
Manchester, 48. 50; at Glasgow. 50-1;
sick and death benefits, 88.

Municipal employment: 17 ff.. 34-5; in
Leicester gas dep't, 33-4; see also Em-
ployment.

Municipalization of works: Gas: 115-24;
changes of prices by, 214-15: Electric:
250-8; changes in prices by, 345; Tram-
ways: Glasgow, 391; Manchester, 393-8;
Liverpool. 399-402; London. 407, 410;
changes in fares by, 706-10.

INDEX.

761

Municipal labor bureau of Glasgow: 21-2.

Municipal operation: Resolutions of
Trades Union Congress on, 58; Promoted
by trade unions, 59; Gain to tramway
employees by, 106, 649, 736, 739; Hear-
ing of adherents of, at London, 648 ff. ;
Broad view of, taken by cities, 648-9;
Sinking funds: provision for, 649; in-
vestment of, in city's own securities,
695; London C. C. tramways: expendi-
tures, 649; capital, sinking fund and
payments in aid of rates, 649; low fares
of, profitable, 649; profits on capital of,
and London United tramways, 649-50;
Payments of London tramways for way-
leaves and widening streets, 650. 658-9;
Dead capital of London tramway sys-
tems, 650; Non-use of powers of cities
and companies, 650, 653, 692-3; Securing
of powers by cities to keep out com-
panies, 652-3, 680; influences opposing
securing of powers by companies, 664-5;
Workmen's cars and fares of London
trams, 651; Earnings and expenses of
London trams compared, 651-2; Manage-
ment under: by public-spirited men, 652,
663; compared with private operation,
685, 692, 694; Influence on gov't of Lon-
don of company opposition to, 653-4;
Political influence of companies, 654-5;
Diversion of councils from other im-
portant matters, 655; Wages under:
high, 655, 690; influence of labor men
on. 655-6. 691; compared with companies,
666-7; Interference with labor unions,
656; Output of laborers under, and pri-
vate operation, 656; Selection of work-
men by London C. C.. 656-7; Effect
on taxes, 657-8; Reliability of munici-
pal accounts and audits, 658, 665-6, 689;
charging of expenses to other dep'ts,
675-6; high charges to tramways to in-
crease profit of electric works. 676; ex-
cessive credits, 689; expenditures of
widening streets not charged to tram-
ways. 689, 690; audit, 690; Duration of
franchises. 659; Laying of double tracks
by company in narrow street, 659: Cost
ot operation and earnings of London
C. C. trams, 659: Comparison with pri-
vate operation, 661, 696-7, 746-7: Effect
of veto power of local authorities on
development of suburban trams. 661-2;
Effect of. on development of tramways
in Ot. Britain and America. 662: Time
of officials demanded by. 663-4; Opposi-
tion to. by Industrial Freedom League,
665; Disfranchisement of public em-
ployees. 666, 691: Competition: municipal
and private trams, 666-7; refusal of
municipal tramways to permit, by motor
omnibuses. 682: attitude of public and
private works toward, 682-3; as a solu-
tion of public service problem, 684; re-
fusal of cities to permit, with their
plants, 695-6. 697: Effect of, in develop-
ing a privileged class. 667: Low cost of
operation of companies and large sales
not due to private ownership, 667-8:
Granting powers to go outside: to cities,
668-70; to companies, 670: Cost of out-
put, public and private. 671; Effect of,
on electrical backwardness. 672; Elec-
tric works: attitude of cities owning
gas works on introduction of, 672: ad-
vancement of municipal gas works at
expense of. 673: cost of operation and
prices of output of municipal, 674-5:
Extensions by public works to unprofit-
able districts, 675: Financial results of
electric works. 676-7; Hearing of oppo-
nents of, at London. 678 ff.: Rfsrhts of
cities to purchase tramways. 679; Leg-
islation: private ownership hindered by,

678 ff. ; municipalities favored as to dam-
age suits and investments, 694-5; Con-
sent of local authorities to extensions
by companies: requiring of, 679; secur-
ing of, 688; Denying of area of supply
of public works to companies, 680; Extra
cost to companies of reaching consum-
ers with mains, 681; Difficulty of secur-
ing lighting contracts by companies,
681-2; Tramway rights practically mo-
nopoly rights, 683; Difficulty of secur-
ing capital by companies, 683; Securing
of powers from Parliament by compa-
nies, 684; Costs of securing powers by
cities and companies, 685: Confusion of
trading and government prejudicial
to both, 683; Handicap to private enter-
prise, 683. 690; Responsibility of public
and private officials, 685; Contest be-
tween public and private interests for
powers, 685-6; Plans for dealing with
electric supply in London, 686; Neces-
sity for greater regulation of public
service works. 687-8; Control of local
authorities as to prices and service, 688;
Interest of local authorities in facilities,
not profits, 688-9; Control of councils
by city employees, 690-1; Organizations
of public and private employees, 691-2;
Suffrage of non-resident ratepayers, 692;
Records of public and private works.
692: Control of trade by Trade Guilds,
and legislative outcome, 695-6: Evils
of. 697-8: Movement toward, of tram-
wavs. 699 ff. ; Extent of, of tramways,
702; Gain through, of tramways: Glas-
gow, 725-6; Manchester, 736; London.
743; Moderate party in London not
opposed to. 744-5.

Newbigging. John: statement on labor
cost in Manchester retort houses, 103-4,
105-6.

Newbigging, William: report on Gas En-
gineering Matters, 162 ff.

Newcastle and District Electric Lighting
Co.: see also Electric Works; Wages:
of firemen, 110, 111; overtime, vacations
and sick leave, 563, 564; fixing and pay-
ment of, 567; union rates not observed,
567; payment of tramway fares, 568,
569; Date of beginning supply, 250; Es-
tablishment and ownership, 255-6; Senti-
ment toward, 258, 259; Competition: elec-
tric, 260; gas, 264; Population of city
and area supplied, 263, 271; Incorpora-
tion, 265; Charter perpetual, but sub-
ject to Parliament, 265; Powers: to ac-
quire works, 265, 266; to lay mains in
streets and to operate, 266: Provisions
regarding purchase of. by city, 267, 268;.
Area to be served, 270, 271: Agreement
for public supply, 270; Statutory provi-
sions: plant and equipment, 271-3;
profits and dividends. 282; Extensions:
274-5; making of, 323. 324, 325, 326: free
of charge, 343; Prices: provisions as to,
275-7; and discounts, 341, 342: for con-
nections, 342; changes in, 1900-6, 344,
345; Issue of securities, 278. 279; Com-
pensation for franchises. 282; Audit,
283, 346, 630; Publicity of records, 283;
Supervision: central. 286-90; local,
290-1; Year covered by investiga-
tion, 292 339; Generating stations, 300-1;
Distribution system, 307, 309, 312; Steam
plant. 312; Dynamos. 313: Appraisal, 314;
Meters: 315: tests of, 318, 319: Services:
315; not run unless needed, 336; records
of. 337; Lamps. 315: Output, 315. 316;
Consumption. 316. 317; Owns all con-
duits used, 317: Means to extend busi-
ness, 319; Renting and sale of ap-
pliances, 320, Current regulation, 320,
321; Outages, 321, 322; Fluctuations in

762

NATIONAL CIVIC FEDERATION.

voltage, 322; Tests and experiments, 322;
Interruptions of service, 323; Street
work: 326, 327; permits for, 328; Under-
ground structures: locating, 328; pro-
tecting, 335; Purchase of supplies, 328,
329; Plant adequate, 329; Condition of
plant and equipment, 330, 331; Handling
of complaints, 332, 333; No badges or
uniforms, 333; Employees: 333, 334; num-
ber of, 563; Attendance at fires, 334; Re-
ports of operation to manager, 335;
Drafting room, 335; Tools, 336; Prompt
attention to orders to turn on current,
336; Work in houses, 337, 338; Collec-
tion of bills, 345, 346; Accounts: sys-
tem of, 346; proper charging of items,
347; credits not made, 357; storeroom
account, 357; Depreciation: funds, 348-9;
charging of, 638, 641; Reserve fund,
351; Interest rate compared with city,
357; Records of expenditures on con-
struction work, 357; Coal and water
used, 358; Budget, 360; Capital: share,
360, 361; loan, 362, 363; working, 366,
368; cash, 368-9; Assets: 370; and out-
lay analyzed, 370, 373, 375; Liabilities:
370; and funds analyzed, 376, 377; Reve-
nue account. 378; Expenditures an-
alyzed, 379, 380; Profit and loss account,
381; Disposal of profit, 382; Taxes: in-
come, 533; local, 548; Organization.
560 ff . ; Chief executive officer and head
of engineering service, 560, 561; Sal-
aried officers, 561; Employment. 561,
562; Labor matters, 563 ff.; Welfare
work. 566; Technical instruction, 565;
Benefit associations, 566; Technical jour-
nals and attendance at meetings, 569;
Two injured in year, 569.

Newcastle Subscription Gas Co.: history
of. 126.

Newcastle-upon-Tyne and Gateshead Gas
Co. : see also Gas Works; Organizations
of employees, 46; No written contract
with workmen, 77; Accident and death
benefits, 88; local benefit associations,
558, Wages: 99, 100, 101, 595-6, 606; of
fitters, 112; overtime, 556, 597; vaca-
tions, 557, 597, 606; sick leave, 557; free
service, 559; payment of, 559; Hours,
102, 597, 606; Date of origan, 116; Early
history, 126-7; Agitation for municipal
ownership, 127; Sentiment toward, 128,
129; Population of city and area sup-
plied, 129-30; Competition with electric
works, 130; incorporation, 132; Power
of Parliament to amend charter, 132;
Powers: no, of eminent domain. 133;
to purchase and construct works, 133;
to lay mains in streets, 133-4; to oper-
ate, 134-5; Purchase of plants, 135; area
to be served, 136; Extensions: 137; mak-
ing of, 195, 196, 197; Prices: provisions
on, 138; and rents, 209-12; for connec-
tions and extensions, 212; changes in,
1900-6, 214; for public lighting, 225; Stat-
utory provisions: service, 139-40; profits
and dividends, 147; compensation for
franchises, 147; Tests of gas, other than
by company, 140; Issuance of stock,
141-2; Issuance of bonds. 143; Audit.
148, 157, 216, 630; Supervision by city,
160; Process used and capacity. 162;
Description of plant. 177-9; Distribu-
tion system, 182: Holders and mains,
183: Meters: 183-4; tests of, 187-8; Ser-
vices: 183-4; work on street, prior to
paving, 199, 206: maps of, 199; records
of. by date, 207: Apparatus rented,
184; Appraisal, 185; Output. 186; Con-
sumption, 186, 187; Means to extend
business. 189; No air mixed with gas,
189: Candle power. 190-1; Calorific value,
192; purity, 192; Chemists and labora-

tories, 192; Engineering tests, 193; Press-
ure, 193-5; Interruptions of service, 195;
Street work: 197, 198; permits for,
199; Underground structures: locating,
199; protecting, 205; Purchase of sup-
plies, 200, 201; Condition of plant and
equipment, 201, 202; Ventilation, and
guarding of machinery, 202; offices, 202;
Handling of complaints, 203, 204; Badges
and uniforms, 204; Employees: charac-
ter of, 204; selecting and discharging,
554; length of service, 555; number of,
556, 595-6, 606; Harmony between dep'ts,
205; Attendance at fires, 205; Reports of
operation to manager, 206; Tools, 206;
Attention to orders to turn on gas,
206; Work in houses, 207; Collection
of bills, 215: Accounts: system of, 216,
217; gas used not charged, 217; all
expenses charged, 220; credits not made
221; storeroom account, 222; Charges for
depreciation, 218; Reserve funds, 219,
644; No sinking fund obligations, 220;
Interest rates higher than city's, 222;
Liabilities: none cancelled. 222: present,
234; and funds analyzed, 239, 241; Rec-
ords of expenditures on construction
work, 222-3; Coal, enrichers and water
used, 223; By-products, 224; Public
lighting, 225; Lamps: 225: ownership
of posts, 225; Budgets, 226; Capital:
share, 226; loan, 227, 229; funds other
than, 229: working. 230, 231-2; cash,
23?-3: Asspts: ?34: and outlay analyzed,
294, 237-8; determination of value of, 238;
Revenue accounts, 242. 243. 244: Profit
and loss account, 245; Disposal of profit,
246: Taxation: income, 531, 532, 533;
valuation for. 539-43; assessment, com-
pared with Glasgow electric works, 544-
5; local. 547; Tenant's capital charges,
540; Distribution of assessment in New-
castle Union. 541; Organization, 552 ft.;
Chief executive officer and head of en-
gineering service, 552, 553: Salaried offi-
cers, 554; Position filled for definite
terms. 554; Labor matters, 556 ff . ; Surety
bonds required, 557. 558; Technical in-
struction. 558; Pensions, 558: Welfare
work. 559; Bicycles used, 559; Technical
•Journals and attendance at meetings,
559; Number injured. 560; Investments
in other companies. 636.

Newcastle - upon - Tyne and Gateshead
Union Gas Light Co.: history of, 126-7.

Newcastle-upon-Tyne Electric Supply Co.:
see also Electric Works; Wages: of
firemen, 110, 111; overtime, vacations
and sick leave, 563. 564; free service,
567; fixing and payment of, 567; union
rates not observed, 567; bicycles and
tramway fares, 568, 569; Date of be-
ginning supply, 250; Ownership of, 255;
Sentiment toward, 259; Competition:
electric, 260; gas, 264; Population of
city and area served, 263. 271; Incor-
poration, 265; Charter perpetual, but
subject to Parliament, 265; Powers: to
acquire works, 265, 266; to lay mains
in streets and of operation, 266: Area
to be served, 269-70, 271; Statutory pro-
visions: purchase of, by city, 267-8, 277-
8; plant and equipment, 271-3, 274; prof-
its and dividends, 281-2; Extensions:
274-5; making of. 323, 324, 325; power
as to, 326; made free, 343; Prices: pro-
visions as to, 275-7; and discounts, 341,
342; for connections, 342; changes in,
1900-6, 344, 345; Issue of securities, 278,
279; Compensation for franchises. 282;
Audit, 283, 346, 630; Publicity of rec-
ords, 283; Supervision: central, 286-90;
city, 290-1; Year covered by investi-
gation. 292. 339; Generating stations.

INDEX.

763

298-300; Distribution system, 307, 309,
311; Steam plant, 312; Dynamos, 313;
Appraisal, 314; Meters: 315; tests of,
318, 319; Services: 315; not run unless
needed, 336; records of, 337; Lamps,
315; Output, 315, 316; Consumption, 316,
317; Extension of business. 319, 670-1;
Appliances for rent or sale, 320; Cur-
rent regulation, 320, 321; Outages, 321,
322; Fluctuations in voltage, 322; Tests
and experiments, 322; Interruptions of
service infrequent. 323; Street work:
326, 327; permits for, 328; Underground
structures: locating, 328; protecting, 335;
Purchase of supplies, 328, 329; Plant
adequate, 329; Condition of plant and
equipment, 330, 331; Handling of com-
plaints, 332, 333; Badges and uniforms,
333, 565; Employees, 333, 334; Attend-
ance at fires, 334; Reports of operation
to manager, 335; Drafting rooms, 335;
Tools, 336; Prompt attention to orders
to turn on gas, 336; Work in houses,
337, 338; Collection of bills. 345. 346;
Accounts: system of, 346; proper charg-
ing of items, 347; free service not
credited, 357; storeroom account, 357;
Depreciation: funds, 348, 350; charging
of, 638, 641; need for provision for, 668;
Reserve fund, 350; Suspense account,
351; Interest rate compared with city,
357; Records of expenditures on con-
struction work, 357; Fuel and water
used, 358; Public lighting, 358, 359; Bud-
get, 360; Capital: share, 360, 361; loan,
362; working, 365-6, 368; cash, 368-9;
Assets. 370; and outlay analyzed, 370,
372-3, 375; Liabilities: 370: and funds
analyzed, 376, 377; Revenue account, 378;
Expenditures analyzed, 379, 380; Profit
and loss account, 381; Disposal of profit,
382; Taxation: statement for 1905 in-
come, 529; income, 531, 532, 533; local,
548; Organization, 560 ff . ; Head of en-
gineering service, 560; Labor matters,
563 ft.; Pensions, 565; Surety bonds re-
quired, 565; Benefit associations, 566:
Technical journals and attendance at
meetings, 569; Number injured, 569; In-
vestments in other companies, 636; Low
operating cost and large sales, 667-8,
671, 672.

North Dublin Street Tramways Co.: sale
of, to Dublin United Tramways Co.,
412.

North Metropolitan Tramways Co.: muni-
cipalization of. 407.

Norwich Electric Tramways Co. : see also
Tramways: Attempt of employees to
organize, 51; employees not organized,
577; Surety deposits required of motor-
men and conductors, 77; surety bonds
required, 574; Contract with employees,
78-80; Wages: 107, 108, 109, 627; of fitters,
112; overtime, vacations and sick leave,
573, 574: payment of medical expenses,
574; free service, 575; payment and fix-
ing of, 575, 576; union rates not ob-
served, 576; attempt of employees to
increase, 576; payment of fares of em-
ployees, 578; Hours, 107, 109. 627; no
legal maximum of, 573; Date of be-
ginning operation, 388; Early history,
413; Sentiment toward. 414; No com-
peting tramways, 415; Population: city,
416; area served, 424; Incorporation:
date and place of, 417; method and dura-
tion of. 418; by Parliament, 629; Power
of Parliament to amend charter, 418;
Powers: to construct works, 418; to lay
tracks in streets, 419; Purchase of plants,
418, 420-2. 423-4; City, no right of emi-
nent domain, 418; Mileage, 424, 464;
Statutory provisions: plant and equip-

ment, 424-5, 426-9; extensions and im-
provements, 429; service and inspec-
tion, 435-6; enforcement of 446-7; Fares;
provisions on, 429, 430, 431, 435; charged,
475, 476; reductions in, 706-9; Issuance
of stock, 436; Issuance of bonds, 438;
Compensation for franchises, 440, 443-4;
Audit, 444. 481, 482, 630; Publicity of
records, 445; Supervision: central, 447-
9, 449-50; local, 450-1, 452; resistance to,
452; Year covered by investigation, 453,
475; Generating stations, engines, boilers
and dynamos. 456; Lines, 459; Horses,
460; Cars: 460, 461; service of, 466, 467;
advertising on, 468; Car sheds. 461,
462; Repair shops, 462; Track and pav-
ing, 462-3; Appraisal, 464-5; Current
data, 466; Passenger data, 466, 476-7, 709-
10; Transfers, 467, 479; Engineering
tests, 468; Extensions, 468, 469, 470, 704-5;
Street work. 470, 471; Work on street
services prior to paving, 471; Purchase
of supplies, 471, 472; Condition and care
of equipment. 472. 473, 474; Badges and
uniforms, 473; Traffic receipts, 478;
Freight and express service, 479, 434-5;
Accounts: system of, 481. 482; charging
of certain items, 482, 483; services not
credited, 489; storeroom account, 490;
Depreciation: payment to funds, 486,
487; charging of, 640; Interest rate com-
pared with city's, 490; Coal and water
used, 490, 491; Capital: share, 491, 492;
loan. 492; raising of, 494; working, 496-
7; cash, 497-8; Assets, 499: and outlay
analyzed. 499, 505; Liabilities: 499; and
funds, analyzed, 506, 508; Revenue ac-
counts, 509; Expenditures analyzed, 510,
513; Profit and loss account, 514; Taxes:
income, 532, 533: local, 548; organi-
zation, 570 ff. : Employment, 570, 571;
Political conditions, 571 ff.; No em-
ployees holding city office, 571; Labor
matters, 572 ff . ; Free service, 572; Tech-
nical instruction, 574; Benefit associa-
tions and welfare work, 575; Laws re-
lating to labor enforced, 577; Techni-
cal journals and attendance at meet-
ings, 578; Number killed or injured,
578; Settlement of damage claims. 579;
Employees, 627; Reasons for investigat-
ing, 718-19.

Offices of works, locations of: gas, 202;
electric, 332; tramway, 473.

Oldburg, Eng. : purchase of gas plant by,
135.

Open shop: in municipal works, 36;
tramways, 577.

Operating cost of tramways: 714.

Operation, powers of cities of works: gas,
134; electric, 266; tramway, 419.

Organization of works: gas, 552-5; elec-
tric, 560-2; tramway, 569-71.

Organizations of employees, 36 ff.

Outages of electric works: 321.

Output of works: gas, 186; electric, 316.

Overdrafts, bank, of works: 633-4.

Overtime, payment for, by works: Gas:
556; Manchester, 585; Newcastle, 597;
Electric: 563; City of London, 610-12;
Tramway, 573.

Ownership, changes in, of works: gas,
116-28: electric, 251-8; tramway. 388-413.

Ownership, municipal: see Municipal
operation.

Parliamentary charges on private bills:
518-23.

Parlimentary companies: constitution of,
628-9; share capital of, 631.

Parsons, Frank: remarks at London hear-
ings 651 ct seq.; Tramway History by,
699 ff.

Party agents, work of: 5.

764

NATIONAL CIVIC FEDERATION.

Passengers carried by tramways: 466, 476-
7; company and city, 709-10; Glasgow,
725.

Paving of tramways: 462-3.

Pensions of employees: 89-91; South Met-
ropolitan gas co., 97; gas, 151-3, 558;
electric, 283-5, 565-6; tramway, 445, 575.

Permanent way, tramway: 462-4.

Permits for street openings by works:
gas, 199; electric, 328; tramway, 471.

Photometers used in gas tests: 191.

Pingreff , W. : tests of candle power of
Leicester gas by, 190.

Political conditions in works: gas, 555-
6; electric, 562-3; tramway, 571-2, 716-17.

Politics and Labor, reports on: Iff., 550 ff.

Population: Of area served by works:
gas, 129-30, 136; electric, 263, 271; tram-
way, 416; Cities served by works: gas,
129-30; electric, 263; tramway, 416. 702;
Density of, British and American cities,
719 note.

Postmaster General, control of works by:
electric, 287-8, 289; tramways, 447, 449-50.

Pressure of gas works: 139, 193-5.

Prices charged by works: gas, 138-9, 209-
12, 213-15; electric, 275-7, 340-5; tram-
way, for freight and express service,
479.

Private ownership: see Municipal Opera-
tion; difficulties put in way of, 678-86.

Profit and loss accounts of works: gas,
245-7; electric, 381-2; tramway, 514-15.

Profit sharing: 182-8.

Profits of works: Statutory provisions on:
gas. 146-7; electric, 281-2; tramway, 440;
Basis of assessment for income tax,
525-6, 527, 537; Glasgow tramways, 529,
727; Set aside by cities for renewals
fund, 637; Tramways: company and city,
714-15.

Provincial Portable Gas Co.: purchase of,
by Manchester, 116.

Provisional orders: costs of, 523; obtain-
ing of, by cities to keep out companies,
652-3.

Public Authorities Act of 1893: cities fav-
ored by, as to damage suits, 694.

Public lighting by works: gas, 186, 224-
5; electric, 358-9.

Publicity of records of works: gas, 148;
electric, 283; tramway, 444-5.

Puddling ditches, use of water in, by
works: gas, 198; no, electric, 327; tram-
way, 470.

Purchase of supplies: see Supplies.

Purchase of works: Gas: by cities, 133,
135; by companies. 133; Electric, 265-6,
267-9; Tramways, 418, 419-24.

Purification of gas: 162, 192.

Ratepayers' associations: 15-17: opposition
to Glasgow municipal activities by, 730-1.

Rates: see Taxes.

Records of expenditures on construction
work: gas, 222-3; electric, 357; tramway,
490.

Rental, net, basis of valuation for as-
sessment, 536, 537.

Reserve funds of works: gas, 218-19:
electric, 349-55; tramway, 483-7; all
works. 643-7; London C. C. and London
United tramways, 666.

Retorts, gas, inclined vs. horizontal: 103-
4.

Revenue of works: Tramway: 478, 509-
13; company and city, 714; Liverpool,
740; Basis of valuation for taxation
of gas works, 538.

Revenue accounts of works: Gas, 242-4;
Electric, 378; Tramway: 509-13: Man-
chester, 1876-96. 395; Charged with re-
payments of loan debts, 634; Differ-
ence in practice as to( 642; Credits to.
642.

Robinson, Sir Clifton; statement as to
poor service by tramway companies,
703-4.

St. James and Pall Mall Electric Light
Company: Wages: firemen, 110, 1U;
fitters, 112; all workmen, 608-9; Date
of beginning supply, 250; Incorporation,
258, 265; Sentiment toward, 258, 259;
Competition: electric, 262; gas, 264;
Population: city, 263; area supplied,
263, 271; Charter perpetual, but sub-
ject to Parliament, 265; Powers: to
acquire works, 265-6; to lay mains in
streets and to operate, 266; Right of
city to purchase, 267-8, 269; Area to
be served, 270, 271; Statutory provi-
sions: plant and equipment, 271-3, 274;
service, 277-8; Extensions: 274-5; mak-
ing of, 323, 324, 325; power as to, 326.;
made free, 343; Prices: provisions as to,
275-7; charged, 341, 342; for connections,
342; changes in, 1900-6, 345; Issue of
securities, 278, 279; Audit, 283, 346, 630;
Publicity of records, 283; Supervision:
central, 286-90; city, 290-1; Year cov-
ered by investigation, 292, 339; Generat-
ing stations, 305-6; Distribution system,
307, 310, 312; Steam plant. 312; Dynamos,
313; Appraisal, 314; Meters: 315; tests
of, 318, 319; services: 315; records of,
337; Lamps, 315; Output and capacity.
315, 316; Consumption, 316, 317; Owns
all conduits used, 317; Means to ex-
tend business, 320; Appliances for sale
or rent, 320; Current regulation, 321;
Outages, 321, 322; Voltage fluctuations,
322; Tests and experiments, 322; Inter-
ruptions of service, 323; Street work:
326, 327; permits for, 328; Underground
structures: locating. 328; protecting. 335:
Purchase of supplies, 328, 329; Plant
adequate, 329; Condition of plant and
equipment, 331; Handling of complaints,
332, 333; Badges and uniforms, 333;
Employees: character of, 333, 334; num-
ber of, 608-9; Attendance at fires, 334;
Reports of operation to manager. 335;
Drafting room, 335; Tools, 336; Prompt
attention to orders to turn on current,
336; work in houses, 337, 338; Collec-
tion of bills, 345, 346; Accounts: sys-
tem of, 346; proper charging of items,
317; storeroom account, 357; Deprecia-
tion: funds, 349; charging of, 638, 642;
Reserve fund, 354-5; Interest rate com-
pared with city's, 357; Records of ex-
penditures on construction work, 357;
Fuel and water used, 358; Public light-
ing, 359; Budget. 360; Capital: share,
360. 361-2; loan. 362, 363; working. 367-8;
cash, 368-9; founders' shares, 631; As-
sets: 370; and outlay analyzed, 370, 374-
5; Liabilities: 370; and funds analyzed,
376, 377: Revenue account, 378; Ex-
penditures analyzed, 379. 380; Profit and
loss account. 381; Disposal of profit.
382; Taxes: Income. 531, 532, 533; local,
548: Ownership of Central Electric Sup-
ply Co., 636.

St. Pancras municipal electric works
(London) : Social and political com-
position, 9-10; Councillors: occupations
of. 9-10; holding other office, 560; wages:
of firemen, 110. Ill; salaries, 561; over-
time, vacations and sick leave, 564;
fixing and payment of, 567; union rates
observed. 567; payment of tramway
fares, 568, 569; Date of beginning sup-
nlv and of municipalization, 250; Es-
tablishment of municipal plant. 255:
Sentiment toward. 258, 259: Competi-
tion: no electric, 260; gas, 264; Popula-
tion of city and area supplied, 263, 271;
Powers of city as to works: to Issue

INDEX.

765

securities, 264; of taxation. 264; to ac-
quire, 265. 266; to lay mains in streets
and to operate, 266; Area to be served,
269, 271; Statutory provisions: plant and
equipment. 271-3, 273-4; service, 277-8;
Extensions: 274-5; making of, 323, 324,
325; power as to, 325, 326; made free,
343; Prices: provisions as to. 275-7;
charge, 340, 342; for connections, 342;
changes in, 1900-6, 344, 345; Issue of
bonds, 278. 279; Use of income. 279-80;
Sinking funds: provisions as to, 280,
281; payments to. 356; not required,
634; Audit, 283, 346, 630; Publicity of
records, 283; Pensions, 285; Supervision
by central authorities, 286-90; Year cov-
ered by investigation, 292, 339; Generat-
ing stations, 296-8; Distribution systems,
30V, 309, 311; Steam plant, 312; Dynamos,
813; Appraisal, 314; Meters, 315; tests of,
318, 319; Services: 315; not run unless
needed, 336; records of, 337; Lamps,
315; Output. 315; Capacity, 316; Con-
sumption, 316, 317; Owns all conduits
used, 317; Means to extend business,
319; Renting and sale of appliances,
320; Current regulation, 320, 321; Out-
ages, 321, 322; Voltage fluctuations, 322;
Tests and experiments, 322; Interrup-
tions of service, 323; Street work: 326.
327; permits for, 328; Underground
structures: locating, 328; protecting, 335;
Purchase of supplies, 328-9; Plant ade-
quate, 329; Condition of plant and equip-
ment. 330, 331; Handling of complaints,
332, 333; Badges and uniforms, 333. 565;
Employees: character of, 333, 334; em-
ploying and discharging, 561, 562; num-
ber of, 563; Attendance at fires, 334;
Reports of operation to manager, 335;
Drafting rooms, 335; Tools. 335; Prompt
attention to orders to turn on current,
336; Work in houses, 337, 338; Collec-
tion of bills, 345, 346; Accounts: system
of, 346: proper charging of items. 347:
services not charged, 356; storeroom ac-
count, 357; Depreciation: payments to
funds, 348; charging of, 637, 641; Re-
serve fund, 350; Payments in aid of
rates, 355 ; Interest rate compared with
companies. 357: Liabilities: redeemed,
357; present. 370; and funds analyzed,
376, 377: Records of expenditures on
construction work, 357: Coal and water
used. 358: Public lighting, 359; Budget,
860; Canital: loan, 362; working. 365,
368; cash. 368-9: Assets: 370; and out-
lay analyzed. 370. 372, 375; Revenue
account, 378; Expenditures analyzed, 379,
380; Profit and loss account, 381; Dis-
posal of profit. 382; Taxes: income,
532. 533; local. 548; Organization, 560 ff. :
Chief executive officer and head of
eneineerins: service, 560, 561; Salaried
officers, 561: Votes at elections, 562:
Labor matters, 563 ff. ; Surety bonds
of employees, 565; Welfare work. 566:
Benefit associations, 566: Settlement of
labor disputes. 568; Technical journals
and attendance at meetings, 569; None
injured in year, 569: Bank overdrafts,
634; Repayment of loan debt, 634.

Salaries of officers of works: gas, 553,
554; electric. 561; tramway, 570; of en-
gineers under private and public owner-
shin. 6fi3.

Salford, Eng. : establishment of first mu-
nicipal gas works in England by, 122.

Scholars' tickets on tramways: 476.

Secretary for Scotland: control over elec-
tric works, 286. 288. 289.

Sentiment toward present form of owner-
ship of works: gas, 128; electric, 258-9;
tramway, 413-14.

Service of works: Gas: statutory provi-
sions on. 139-40; rendered. 189-95; Elec-
tric: statutory provisions on, 277-8; ren-
dered, 318-23; Tramway: statutory pro-
visions on, 435-6; rendered, 466-8; poor,
of companies, 703-4; poor, of Glasgow
tramways under lease, 722.

Service, free, to employees: gas. 559;
electric, 566-7; tramway, 575.

Services of works: Gas: 183-4; work on.
prior to paving, 199, 206; records of.
by date, 207; Electric: 315; work on,
prior to paving, 336; records of, 336-7.

Sheard, J. S. : tests of Sheffield gas by,

Sheffield Gas Consumers' Co.: early his-
tory of, 128.

Sheffield municipal tramways: see also
Tramways; Favoritism to applicants
recommended by councillors, 34; Pro-
gram of local Labor Representation
Committee, 60-1; Company and city:
extensions, 704-5; reductions in fares,
706-9; traffic, 709-10; Political condi-
tions, 716.

Sheffield United Gas Light Co. : see also
Gas Works; Unions: National Amalga-
mated Union of Labor, 44; dealings with,
46; Capital: effect of Parliamentary lim-
its on, and dividends, 45; share, 226;
loan, 227, 229; from earnings, 229;
working, 230, 232; cash, 232-3; Directors:
councilmen, 45; disadvantages under
which trade-union member of, labors,
45-6; organization of board of, 154;
Wages: 45, 99, 100, 101, 598-600; of
fitters, 112; overtime, 556; vacations and
sick leave, 557; pensions, 558; payment
of, 559; Rules to be observed by re-
tort house men, 75-7; Hours, 102; Date
of origin, 116; Early history and changes
in ownership. 127-8; Sentiment toward,
128, 129; Population of city and area
supplied, 129-30: Competition with elec-
tric works, 130; Incorporation, 132;
Power of Parliament over charter, 132;
Powers: no, of eminent domain, 133;
to purchase and construct works, 133;
to lay mains in streets, 133-4; to oper-
ate, 334-5; Purchase of plants, 135;
Area to be served, 136; Extensions:
137; making of, 195, 196, 197; contem-
plated. 202; Prices: provisions on, 138-9:
and rents, 209-12; for connections and
extensions, 212; changes in, 1900-6, 214;
for street lighting. 225; Statutory pro-
visions: service, 139-40; profits and divi-
dends, 146-7; compensation for fran-
chises, 147; salaries, 149; Other than
company tests of gas, 140; Issuance
of stock, 141-2; Issuance of bonds, 143;
Audit. 148, 157. 216. 630; Candle power:
penalty for violation of statutes on,
155; furnished, 190-1; Supervision by
city, 160; Process used and capacity,
162; Description of plant, 179-81; Dis-
tribution system, 182-3: Holders and
mains, 183: Meters: 183-4; tests of,
187-8; Services: 183-4; work on, prior
to paving. 199. 206: maps of, 199: records
of. by date, 207; Apparatus rented. 184;
Appraisal, 185; Output, 186: Consump-
tion, 186, 187; Means to extend busi-
ness. 189; Air mixed with eras 189;
Calorific value and purity, 192: Chem-
ists and laboratories, 192; Engineering
tests, 193; Pressure, 193-4. 194-5: In-
terruptions of service, 195; Street work:
197. 198; permits for. 199; Underground
structures: locating. 199: nrotectinsr. 205;
Purchase of supplies. 200. 201: Condi-
tion of equipment and plant. 201. 202;
Ventilation, and eruardine of machin-
ery, 202; offices, 202; Handling of com-

766

NATIONAL CIVIC FEDERATION.

plaints, 203-4; Badges and uniforms, 204;
Employees: character of, 204; select-
ing and discharging, 554; length of
service, 554, 555; age restrictions, 555;
number of, 556, 598-600; Harmony be-
tween dep'ts, 205; Attendance at fires,
205; Reports of operation to manager,
206; Tools, 206; Attention to orders to
turn on gas, 206; Work in houses. 207;
Collection of bills, 215; Accounts: sys-
tem of, 216; charges for amount spent
for taxes, insurance, etc., 216-17; gas
used not charged, 217; income tax
charged to dividends, 220; all credits
made, 221; storeroom account, 222;
Charges for depreciation, 218; Reserve
funds. 219. 644-5; No sinking fund ob-
ligations, 220; Liabilities: none can-
celled, 222; present, 234; and funds
analyzed, 239, 241; Records of expendi-
tures on construction work, 222-3; Coal,
enrichers and water used, 223; By-prod-
ucts, 224; Public lighting, 225; Lamps
and ownership of posts, 225; Budgets,
226; Assets: 234; and outlay analyzed,
234, 235; determination of value of,
238; Revenue accounts, 242, 243; Profit
and loss account, 245; Disposal of profit,
246; Taxes: income, included in amount
stated for dividends, 247; assessment
for income, 526; payments for income,
533; local, 547; Organization, 552 ft.;
Chief executive officer and head of en-
gineering service, 552, 553; Salaried offi-
cers, 554; Labor matters, 556 ft.; Surety
bonds of employees, 557, 558; Benefit
associations, 558; Welfare work, 559;
Bicycles used, 559; Technical journals
and attendance at meetings, 559, 560;
I i-']iteen injured, 560.

Sick leave of employees: gas, 557; elec-
tric, 564; tramway, 573-4.

Sinking funds of works: Gas: statutory
provisions on, 144-6; payments to, 219-
20; unapplied, 222; Electric: provisions
on, 280-1; payments to, 356; Tramway:
provisions on, 439-40; charges to. 487;
All work: 634; investment of, 635-6;
provided under municipal operation, 649;
investment of, in city's own securities,
695.

Sliding scale of prices: South Metropoli-
tan Gas Co.. 83; gas works, 146-7.

Smith (Howard), Slocombe & Co.: audi-
tors of Birmingham gas accounts, 215.

South Eastern Metropolitan Co. (Tram-
way) : municipalization of, 407.

South London Tramways Co. : municipali-
zation of. 407.

South Metropolitan Gas Co. (London):
see also Gas Works; Strikes of em-
ployees, 43, 83; Contracts with workmen:
first to require, 71; excluding members
of Gasworkers' Union, 71-2; present
form of, 72; Profit-sharing: adoption of,
82; details of, 83; effect on work of
employees, 84; statement of chairman
of company on, 84; a semi-compulsory
paternal partnership, 86; Bonuses: not
a good plan to pay cash. 84-5; stock,
85: half of, withdrawable in cash,
85-6; committee of management of slid-
ing bonus system, 86-7; Stock of com-
pany held by employees, 86; Directors
elected by employees: 87, 154; interest
of in welfare of company, 87-8; Bene-
fits: sick and death, 88-9. 97: accident.
94-8; local benefit associations. 558; Pen-
sions. 89-90; Wages: 99, 100, 101, 601-2;
of fitters, 112; salaries to be paid,
149; overtime, 556; vacations and sick
leave. 557: free service. 559: payment
of. 559: Hours. 102-3; Date of origin,
116; Early history and changes in

ownership, 125-6; Sentiment toward, 128.
129; Population of area supplied, 129-
30; Competition with electric works, 130;
Incorporation, 132; Power of Parliament
over charter, 132; Powers: none of
eminent domain over works, 133; to
purchase and construct works, 133; to
lay mains in streets, 133-4; to operate,
-.Jt-5; Purchase of plants, 135; Area to
ba served, 136; Extensions: 137; mak-
ing of, 195, 196, 197; Prices: provisions
on, 138; and rents, 209-12; for connec-
tions and extensions. 212; changes in
1900-6, 214; for street lighting, 225 note;'
Statutory provisions: service, 139-40;
profits and dividends, 146-7; no. on com-
pensation for franchises, 147; Tests ot
gas other than by company, 140; Issu-
ance of stock, 141-2; Issuance of bonds,
143; Audit, 148, 157, 215-16, 630; Gas in
bulk to be sold to adjoining areas. 154;
supervision: other than city, 159-60; by
London County Council, 160; Process
used and capacity, 162; Description of
plant, 172-7; Distribution system, 182^
Holders and mains, 183; Meters: 183-4 >
tests of, 187-8; Services: 183-4; work on.
prior to paving. 199; maps of. 199:
no dead, 206; records of, by date, 207;
Apparatus rented, 184; Appraisal, 185;
Output, 186; Consumption, 186, 187;
Means to extend business, 188-9; No
air mixed with gas, 189; Candle power,
190-1; Calorific value and purity, 192;
Chemists and laboratories, 192; Engi-
neering tests, 192; Pressure. 193-4, 194-5;
Interruptions of service, 195; Street
work: 197, 198; permits for, 199; Un-
derground structures: locating. 199; pro-
tecting, 205; Purchase of supplies. 200,
201; Condition of plant and equipment,
201-2; Ventilation, and guarding of ma-
chinery, 202; Offices, 202; Handling of
complaints, 203, 204; Badges and uni-
forms, 204; Employees: character of,
204; discharging, 554; number of, 556.
601-2; Harmony between dep'ts, 205:
Attendance at fires, 205; Reports of
operation to manager, 205; Tools, 206;
Attention to orders to turn on gas, 206;
Work In houses, 207; Collection of bills.
215; Accounts: system of, 215-16; charges
for taxes, insurance, gas used, etc., 217:
all expenses charged. 220: credits not
made, 221; storeroom account. 222: No
charge for depreciation, 218; Reservt
funds, 218, 645; No sinking fund obli-
gations, 220; Interest rates compared
with city's, 222; Liabilities: none can-
celled, 222; present, 234; and funds an-
alyzed. 239, 241; Records of expendi-
tures on construction work. 222-3: Coal
and water used, 223: No enrichers used^
223; By-products. 224; Public lighting.
225; Lamps: 225; ownershio of posts,
225; Budgets. 226; CaDital : share, 226;
loan. 227. 229: working, 230. 231: cash,
232-3; Assets: 234; and outlay analyzed,
234. 236-7; determination of value of. 238.;
Revenue accounts. 242. 243, 244: Profit
and loss account, 245; Disposal of profit,
246; Dividend payments, 247; Taxes: In-
come. 526. 531. 532. 533: local, 547; Or-
ganization, 552 ff. ; Chief executive
officer. 552: Head of engineering service,
553: Labor matters, 556 ff.; Welfare
work. 559: Technical journals and at-
tendance at meptines. 559: Number In-
lured. 560; Investments in America. 636.

Southend Corporation Tramways: refusal
to permit competition by motor omni-
buses. 682.

Southwick, Eng. : purchase of gas plant
by, 136.

INDEX.

767

Speed of tramway cars: 466-7.

Stamp duties relating to public service
works: 517-18.

Stations, generating, of works: electric,
292-307; tramway, 453-8.

Stock, capital: Statutory provisions on
issuance of, by works: gas, 141-2; elec-
tric, 278; tramways, 436; Of companies,
631-2.

Storeroom accounts of works: gas, 222;
electric, 357; tramway, 489-90.

Stoves, gas: 184, 189; rents charged for,
209-12.

Street work: gas, 197-9; electric, 326-8;
tramway, 470-1.

Streets: Powers of works to lay mains in:
gas, 133-4; electric, 266; Supervision by
cities of use of, by electric works, 537-8;
Cost of widening, for tramways, 658-9,
689-90.

Strikes of employees: 36; Manchester and
South Metropolitan gas, 42-3; statutory
provisions On, 153-4; electric, 568; tram-
way, 577.

Suffrage: 1-7; denial of, to non-resident
taxpayers, 692.

Sum van, J. W. : reports by, on Labor
and Politics, Iff., 550 ff. ; remarks at
London hearing, 683 ct seq.

Superannuation benefits: 89-91.

Supervision of public works: gas, 133 ff. ;
electric, 265 ft'. ; tramways, 418 ff.

Supplies, purchase of, by works: gas, 200-
1; electric, 328-9; tramway, 471-2.

Tar made by gas works: 224.

Taxes, payments in aid of, by works: Gas,
219-20; Electric, 355; Tramways: 487-8;
Glasgow, 727; Manchester, 736; Liver-
pool, 740; London C. C., 745-6.

Taxation of works: Desire to reduce, mo-
tive for municipalization of Leicester
gas works, 124; Powers of cities as to
works: gas, 130, 131; electric. 264; tram-
way, 416-17; Report on, of British gas,
electricity supply and tramway under-
takings, by Milo R. Maltbie, 516 ff . ;
Bibliography on, 516; Complexity of sys-
tem, 516; Purpose of report, 516-17;
Stamp duties, 517-18; Parliamentary
charges on private bills, 518-23; Costs
of provisional orders, 523; Light rail-
way orders, 523-4; Income tax: water-
works, 524, 525; machinery for collect-
ing, 524; of electric works. 525; tram-
ways, 525; fixing of rate, 525; municipal
and private works on same basis as to,
525-6; profits, the basis for, 525-6, 527;
payments of different companies, 533;
Valuation of public and private works
for income tax, 526-7, 531-2: Assessment
of works for income tax: South Metro-
politan gas, 526; Sheffield gas, 526;
electric, 527; tramway, 527; Glasgow
tramways, 529-30; variation in. 532: Re-
turn of electric works for income tax
assessment: Manchester, 528; Newcastle
Supply. 529: Local: 533 ff. ; development
of system of, 533-4; of different works,
547-8; fees and licenses, 548-9; Valua-
tion for local taxation: 534: duration
of lists for, 534-5; Scottish system of.
535; principles of, 536 ft.; annual net
rental basis of. 536; existing value meas-
ure of ratable value. 536; profits not
sole standard of, 537; municipal and
private works on same basis for, 537;
Independence of local officials, 535; Fix-
ing tax rates, 535; Collection of taxes,
535-6; Value of franchise assessed, 536;
Exemption of public property, 537; Rat-
ing for use of streets. 537-8; Valua-
tion of gas works: 538 ff.; gross re-
ceipts basis for, 538: deductions for
tenant's profits. 538; determination of

ratable value, 538; deduction of in.r
directly productive part. 539; Division
between rating districts, 539; Valuation
of Newcastle gas co. for poor rate as-
sessment. 539-43; Valuation of electric
works, 543-5; Assessment of Manchester
gas and electric works, 543; Assess-
ment of Glasgow electric works: 543-4;
compared with Newcastle gas co., 544-5;
Valuation of tramways: 545 ft.; method
of, 545; determination of net ratable
value, 545; deduction of indirectly pro-
ductive property, 545; apportionment of
assessment, 545; Scottish system of ap-
portionment of assessment, 546; Valua-
tion of Glasgow tramways, 1907, 546-7;
Comparison of rating of public and
private tramways, 547; Variation of
ratable values greater than of amounts
paid, 547; Special assessments, 549; Ef-
fect of municipal operation on, 657-8.

Telephones of works: gas, 205; electric,
334 ; tramway, 474.

Tipton, Eng. : purchase of gas plant by,
135.

Tools of works: gas, 206; electric, 335-6;
tramway, 474.

Track, tramway: 419, 462-4.

Trades Union Congress: political action
of, 56-7; resolutions regarding muni-
cipal ownership, 58; statistical progress
of, 58.

Train, George Francis: first introduction
of tramways into London by, 402.

Tramway and vehicle workers' union:
where organized, 41; organization and
membership, 49; dues and benefit feat-
ures, 49, 88; relations with Manchester
tramways, 49-50; organization at Dublin,
51; attempt to organize at Norwich, 51;
organization of London County Council
tramway employees, 51-2.

Tramways: Reports on: Labor and Poli-
tics, Iff.. 569-79. 613-27; History and
Legislation, 383 ff. ; Engineering Mat-
ters, 453 ff. ; Financial matters, 475 ff.,
628-47: Taxation, 516 ff . ; History, 699
ff . : Organizations of employees, 48;
Workmen's contracts, 77-82; Wages, 106-
9; Financial powers of cities as to,
416-17; Incorporation of companies, 417-
18; Assessment for income tax, 527;
Valuation for taxation, 545-8; Munici-
pal movement in, 699 ff. ; Obtaining of
powers of operation by cities, 701: Mu-
nicipal. 702; Reasons for municipaliza-
tion, 703; Company and city: improve-
. ments, 704 ff. ; mileage, 704-5; fares. 704,
706-9, 714; workmen's cars and fares,
712-13; traffic, 709-10; labor conditions,
710-12; operating costs, 714: revenue, 714;
returns for the United Kinsrdom, 714;
profits, 714-15; political conditions, 716-
17: Special account of municipal works,
717 ff. ; Adoption of electric traction,
723-4: Contrasts and results, public and
private. 746-7.

Tramways Acts of 1870: 420-3, 424-8. 438,
445-6, 700-1: as to licenses, 548-9; effect,
as to private ownership, 678-9.

Transfers, tramway: 429. 467, 479.

Trenches and obstructions, care of, by
works: gas, 198; electric, 327; tramway,
470.

Trustee Investment Act: municipal trad-
ing favored by. 694-5.

Turner. E. Hartley: Reports of, on Finan-
cial Matters of works: gas, 208 ff.; elec-
tric. 339 ff. ; tramway, 475 ff. ; all works,
628 ff. ; experience of, in connection
with municipal sinking funds, 635.

Turton and Busby, Messrs. : lessees of
Manchester tramways, 393.

768

NATIONAL CIVIC FEDERATION.

Underground structures of works: Locat-
ing: gas, 199; electric. 328; tramway.
471; Protecting: gas. 205; electric, 334-5;
tramway. 474.

Uniforms of employees: see Badges and
Uniforms.

Union rates of wages: 52-3, 62-9; in elec-
tric works, 667; in tramways, 576.

Unions, trade: attitude of municipal
managers toward, 36; conflicts with
Municipal Employees' Ass'n, 39; re-
pudiation of Municipal Employees'
Ass'n, 40; tramway, 48-52, 577; engineers
and firemen, 54; effect of municipal
ownership on, 56, 656; causes for en-
trance into politics, 56; present status
of General Federation of, 57; statistical
progress of, 58; causes for disagree-
ments with cities, 64; contract wage
clauses a source of support to, 64, 69;
what constitutes criminal action by, 70;
benefits provided by, 92-3; influence on
wages, 655-6. 691; influence on councils.
691.

Valuation of works for taxation: princi-
ples of, 536-8; gas, 538; electric, 543-5;
tramway, 545-8.

Ventilation of works: gas, 202; electric,
331; tramway. 473.

Veto power of local authorities: effect
on development of suburban tramway
systems, 661-2.

Voltage fluctuations of electric works,
322.

Voters, employee, of works: 555, 562, 571.

Wages of employees: Municipal, based on
private, 39; Sheffield gas, influenced by
labor leader on board of directors, 45;
Trade union: 52-3; and minimum, 62-9;
Paid: 98-112; machinists, 111-12; city
and company, 666-7; Gas: 99-106; Glas-
gow, 580-1; Manchester, 582-5; Birming-
ham, 585-93; Leicester, 593-4: Newcas-
tle, 595-6; Sheffield, 598-600: South Met-
ropolitan, 601-2; Electric: 110-11; Leices-
ter, 593-4; Manchester, 603; Liverpool,
604; Glasgow, 605; Newcastle— Supply,
606; Central (London), 607; St. James
(London), 608-9; City of London co.,
610-12; Tramway: 106-9. 711-12: Glasgow,
613-17, 722-3; Manchester. 618: Manches-
ter Carriage and Tramways Co.. 618-21;
Liverpool, 622-3; London C. C., 623-5;
Dublin. 625-7; Norwich. 627: Changes in,
1900-6, 98; Local standards of, for com-
mon labor, 99; Higher, promised by
candidates, 555-6, 563, 572; Fixing of:
electric, 567; tramway, 576; Observing
of union rates: electric, 567; tramway,
576; Attempts of employees to increase:
electric, 567-8: tramway. 576; Trade
union influence on, 655-6. 691.

Walsall, Eng. : purchase of gas plant by,
335.

Water used by works: gas, 223; electric,
358; tramway, 491.

Water supply: strike in violation of con-
tract depriving a city of, a criminal of-
fence, 70.

Waterworks income tax: 524. 525.

West Bromwich, Eng.: purchase of gas
plant by. 135.

West Metropolitan Tramways Co.: ac-
quirement of, by London United co.,
411-12.

Westminster Electric Supply Corporation:
see also Electric Works: Date of be-
ginning supply. 250: Incorporation. 258.
265: Sentiment toward, 258. 259: Com-
petition: electric, 262; gas, 264; Popula-
tion: city, 263; area served, 263. 271;

Charter perpetual, but subject to Par-
liament, 265; Powers: to acquire works,
265, 266; to lay mains in streets and to
operate, 266; Right of city to purchase,
267-8, 269; Area to be served, 270. 271;
Statutory provisions: plant and equip-
ment, 271-3, 274; service. 277-8; Exten-
sions: 274-5; making of. 323. 324, 325;
power as to, 326; made free, 343; Prices:
provisions as to, 275-7; charged, 341, 342;
for connections. 342; changes in. 1900-6.
344. 345; Issue of securities. 278-9: Audit,
283. 346. 630; Publicity of records. 283;
Supervision: central, 286-90; city. 290-1;
Year covered by investigation. 292, 33$;
Generating stations. 303-5; Distribution
system, 307, 310. 312; Steam plant, 312;
Dynamos, 313; Appraisal, 314; Meters:
315; tests of, 318. 319; Services: 315; run
prior to paving. 336; Lamps. 315; Cur-
rent bought, 315; Output, 316; Consump-
tion. 316, 317; Owns all conduits used,
317; Means to extend business, 319; No
appliances for sale or rent, 320: Current
regulation, 321; Outages. 321. 322; Volt-
age fluctuations, 322; Tests and experi-
ments, 322; Interruptions of service in-
frequent, 323; Street work: 326, 327; per-
mits for, 328; Underground structures:
locating, 328; protecting, 335; Purchase
of supplies, 328, 329; Plant adequate,
329; Condition of plant and equipment,
330, 331; Handling of complaints, 332,
333; Badges and uniforms. 333; Em-
ployees, 333. 334; Attendance at fires,
334; Reports of operation to manager,
335; Drafting rooms, 335; Tools, 336;
Prompt attention to orders to turn on
current, 336; Work in houses, 337, 338;
Collection of bills, 345, 346; Accounts:
system of, 346; proper charging of items,
347; storeroom account, 357; Deprecia-
tion: funds, 349; charging of, 638, 642;
Reserve fund, 353-4; Interest rate com-
pared with city, 357; Records of expendi-
tures on construction work, 357; Coal
used, 358; Public lighting. 359; Budget,
360; Capital: share, 360, 361; loan, 362,
363; working. 367, 368; cash, 368-9:
founders' shares, 631-2; Assets: 370; and
outlay analyzed, 370, 374, 375; Liabili-
ties: 370; and funds analyzed, 376, 377;
Revenue account, 378: Expenditures an-
alyzed, 379, 380; Profit and loss account,
381; Disposal of profit, 382: Taxes: in-
come, 531, 532. 533; local, 548; Ownership
of Central Electric Supply Co., 636.

Wilson, Alexander: appointment as man-
ager cf Glasgow gas department, 24.

Winchester. A. E. : report on Engineering
Matters of electric works. 292 ff.

Wood, T. McKinnon: remarks at London
hearing, 648 ct seq.

Woodward, J. H. : report on Engineering
Matters of tramways. 453 ff.

Woolwich and South Eastern Metropoli-
tan Co. (Tramway) : municipalization of.
407.

Workmen: see Employees.

Workmen's cars and fares on tramways:
475-6. 712-13.

Workmen's Compensation Act: 91-2; ob-
ject and enforcement of, 92: of 1897
and 1900, as to employers' liability in
gas works. 150-1.

Wykes and Co.: auditors of Leicester gas
accounts. 215.

Young. John: appointment as manager of
Glasgow tramways. 25: statement on
abolishing of advertising on tramway
cars. 728.

UNIVERSITY OF TORONTO
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