Skip to main content

Full text of "Municipal and private operation of public utilities: report to the National Civic Federation Commission on public ownership and operation"

See other formats

Jftomctpl anti $rtbate 
Operation of public Utilities 


* tTtaftl DvVe. 

Municipal and priuate 
Operation of Public Utilities 


Commission on Public Ownership 
and Operation 



NATIONAL Civic FEDERATION, 281 Fourth Avenue 


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





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), 

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

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


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


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), 

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

York City. 



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), 

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), 

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

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

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. 



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

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




Mr. E. A. MOFFETT, Secretary. 


Professor EDWARD W. BEMIS. 

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 


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 

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- 

"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- 


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 


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 

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). 


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. 



Membership of Committees VII 

Editorial Note XI 


Labor and Politics (Schedule II) : 

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


General History and Legislation (Schedule I) : 


Engineering Matters (Schedule III) : 


Finance and Accounting (Schedule IV) : 

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


General History and Legislation (Schedule I) : 


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 


General History and Legislation (Schedule I) : 


Engineering Matters (Schedule III) : 

Finance and Accounting (Schedule IV) : 

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




Taxation of Gas, Electric Supply and Tramway Undertakings : 


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 : 



Gas, Electric Supply and Tramways 

(Schedule II) 



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; 

(c) Servants occupying separate establishments: ("The 
Service Franchise"). 

(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. 


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 

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). 


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. 


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- 


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 


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 

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 


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


Liverpool. Liverpool is divided into 34 wards 1 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. 


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 

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. 


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 

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. 


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 

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 



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 

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. 


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: 




Birming- Lei- 

, Glasgow. > Manchester, ham. cester. 

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


























































































21 24 










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 


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- 

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



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. 


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 


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

in crowded areas. 

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


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


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- 

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. 


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. 



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. 


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 


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, 

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 


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- 

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 


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 " 

" 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 


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, 


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 agenc3 r . 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 


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. 



* t-<M 00 t- 

Q iH CO 


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 


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 5d. 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 


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 


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." 


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. 

To be filled up In Applicant's own handwriting. 

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


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- 


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 been v in business for yourself? 

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


12. Are you security for any person? 

13. How previously employed? 

From 18 to 18 

18 to 18 

18 to 19 

14. References ( 1 ) 



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. 



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 


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 


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 


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 

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. 


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- 

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. 



Glasgow Corporation Gas Department. 
Reference No Remarks. 

RAfArAnrAS wHttAn fnr 19ft 









. O . . . . . rt . . K 

. as . . . . r5 . 

. T-l . . . . . 05 

: : : : : :::: g 
::,: M :||ji 1 

' &a 

Ise information 


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






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

mi:: : : * : 

51 : : : i : S : 

(B5! * " ^ 

CL> Oj 

a ' rt 

s N MM; I 

. . . .... a 


: js 

05 ' ' ' ' . f-l 

0) . Oj 

O ' ' ' * . O> ' 

t! : : : : : : Q 



^ a> 

^ Ml 




ge Height, ft ins. Weight, i 

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 . . . 

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- 



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 


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 

(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 


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 

(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. 


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 


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 2d. 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. 


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. 


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. 


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 


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 

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 

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 



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

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 


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 


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 


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 


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 


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. 


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' 


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 

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 day r 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. 


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 


emplo} r ees, 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. 


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. 


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." 


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- 

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. 


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. 

J Eltradion, August, 1906. 


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- 





















































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 


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. 


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 

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 ; 



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 













1893 , 








1897 , 


1898 , 












1904 , 




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





bers. 1 







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. 


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 

"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. 


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 

"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 

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.) 


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

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 



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. 


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." 



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


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 


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


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 

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. 


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 

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. 


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- 

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 


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 6d. 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. 


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- 

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 


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. 


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 


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 6d., 
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 


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. 


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- 


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, 


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 


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. 


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. 



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 

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. 


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- 

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. 


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. 



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- 

Gas Workers' Contract, Leicester. 


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- 

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 : 


Gas Workers' Contract, Birmingham. 


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. 


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- 

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 


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. 


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 


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 

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. 


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 


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 


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. 


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 



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 

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. 


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 



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 

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. 


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. 


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- 


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. !. 


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 

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} r ees. 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 
saving 1 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. 


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 company 1 . 
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 follows 2 : 

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. 


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. 


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. 


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 " 


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. 


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. 

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 


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. 


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. 


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 


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. 


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 unions 1 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. 


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 

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. 


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- 

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. 


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. 


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 

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. 



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 










Total under Compensation Act 9,536 4 

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. 


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 of Public 
All Trades. Authorities (Local 

Authorities, 1903-5). 

1905 ' 


Number of 

Net In- 

Number of 



crease (-)-) 


Net In- 


or De- 




crease ( ). 







4- 681 




4- 559 


4- 26,152 


-L 882 


4- 30,494 


4- 1,514 


4- 80,572 


4- 857 


4- 89,816 


4- 1448 


4- 206,772 


4- 2,592 




-f 1,833 




4- 602 




4- 282 




4- 609 




4- 404 

Preliminary figures subject to revision. 


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 


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- 



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. 

to to 

to g > 

8 to to 

S s 

-2 s 

to O 


to IM to to 

I +1 

CO t- t- rH 

00 00 ^ 

* - <*,& t2 

. to to O * 

5 oo ,3: rH jS 3 

111 U *- 

65 hj s r to 

CQ CO rfg 

o CQ 

t- *? oo *: *: 06 06 ^ 

06 t- 




rHt-COt-(N OOOS 

to t- 

co i> 




OS t- 


CO CO CO to N 



(N (N 



OS t-^ 



2 & H 

13 fL| S3 


CD Cd I 

J r^ J 

S M S 

S 5 'S 






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 v the 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 


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 : 



Gaythorn Station Inclined Retort Installation. 
Labor in Carbonisation. 


Rate of Pay 
Per Shift. 

No. of 

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 













. . 






, . 



. , 



. . 







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 










Rate of Pay Amount of 

Per Shift. 



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 






























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. 


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 said 2 

" 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 said 2 
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. 


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. 


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' 


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 

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- 

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. 


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. 






a a 

.S 2>co 




<? rt j 

oa a-X 

& * g 

JT B rrt 

O " *** 



|S| S 

'fivd wniut 

f- >H 

CO C9 



r . 

t. -e^ 

* . 





* ns 50 . 



O O 

to us 



io' co* 

co co 


QJ -H 

** 'S 





O > tn 





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. 


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. 








38 30.41 

for holidays with pay. 




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. 


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. 


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 



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 

Wages of Fitters (Machinists). 



Per Week. 

Trade Union Scale. 

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- 
itanGas Private... 33/9 to 48/8 48 to 54 39/. . 

This table is not in the order of wage levels. 


British Gas Works 

(Schedule I) 


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- 

Corporation of Glasgow: "Handbook on the Municipal Enter- 

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 

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

1902 Edition. 
Vol. III. 9. 


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. 

Glasgow Corporation Order Confirmation Act, 1905, c. CXXVII. 

Glasgow Corporation Loans Act, 1883, c. CVI. 


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. 

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. 

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. 

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 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 



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 

A 5. Date and character of all changes in ownership since 


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 


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~y 2 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 4 1 /*> per cent per annum .... 5,100 

Capital Outlay 

Works 180,076 

Mains 107,129 

Meters, Lamps, Services, etc 56,908 

Stabling 2,502 



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 

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. 


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 

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 


yearly, and of 6% per cent upon 115,000 of 7 l / 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 7y 2 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 

Balance Sheet for the Glasgow Gas Light Company, 
May 31, 1869. 


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 


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 


City and Suburban Gas Company. 
June 30, 1869. 


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 


Cash 21 

Property 4,000 

Stocks and materials 6,965 

Pipe account 116,460 



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~y 2 d. 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. 


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- 


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 


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 

6,930 B. " 69,300 @ 21 87 148,504 2 6 

10,000 C. " 100,000 @ 20 00 200,000 

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 

The stock issued in payment was 4 per cent, 2 per cent semi- 
annually, a first charge upon the revenue of the undertaking after 


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 


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 

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. 


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. 


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 

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. 


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. 


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 


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 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 

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. 


B 4. What is the limitation upon the general taxing power of the 


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. 


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 

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 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. 



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? 


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? 


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 

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 


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. 


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 

Leicester 2 -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 16.3 3 105.9 

Gateshead j 128.5 16.3 3 112.2 520,000 370,000 150,000 

Sheffield 4 135 37 98 470,000445,000 25,000 


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 


D 12. Give statutory provisions regarding nature of plant and 


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. 


than '60 yards apart on the average. Extensions must be approved 
by the city, but the company may appeal to general quarter 

D 14. Gfive statutory provisions regarding improvements and 
new processes. None, in any instance. 


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 

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 


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. 


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 


(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- 

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 


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 

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. 

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 


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- 

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. 


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 


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- 


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 
iy 2 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. 


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. 


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 3y 2 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 

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 

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 

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- 


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 

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 

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. 


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 

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. 


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 

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 


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- 

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. 


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 

(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- 


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- 

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 l 1 /^ 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 

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 


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 

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. 


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, 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- 


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 


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 

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 

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 


in a given case. One must have recourse to the courts for this 

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- 


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 


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 

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 ? 


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. 


British Gas Works 

(Schedule III) 


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) 


nS Dail y Ca/ P a - Gent - f 


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 18,900 2 74.4 77.8 

Leicester 14,000 11,000 78.6 98.5 s 

London-So. M 66,000 66,000 100 100 

Newcastle 16,500 15,OOQi 90.9 94.3 

Sheffield 18,000 18,000 2 100 100 

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. 



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 

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 


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 


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 

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- 

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 

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 


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 


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 


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 


hoppers at retort houses or being stored in sheds under the 

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 


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 

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 


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. 


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- 


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- 


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 


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 


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 


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. 


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- 

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 


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. 


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 


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. 


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. 


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 

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- 



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 

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 


tumour Capacity Mileage of 
PTa7d?r* in M - Mains. 

"*' Cubic Ft. 


, , ,20 39,777 740 


18 44,370 900 (Est.) 


20 24,500 858J 


8 10,200 251| 

London-So. M , 

21 48,483 1,162 


9 14,931 648 


11 21,617 538 2/3 

H 6. Meters and services at end 

of year. 



(3) (4) (5) (6) 

No. of N f Averaff 

f J^ftttyn 9 

No. of 

prepay- Percent. '^ length 

JL t/Cf/t'o. 


ment (3) of (2). *~ 8 approx. 

meters. approx. ff 



36,376 33.1 120,000 33 



10,236 4.3 Note 1 15 


152,165 2 

47,865 31.4 " 18 



29,145 54.0 " 12 

London-So. M 


190,640 64.9 " 20-25 



35,790 43.9 " 18 



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 


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 .................. 23,862 2 ---- 

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. 



^j o 


^^ (~*5 

9 os 

o o 
o o 


fc- O O O SO 


00 rH -^ TH 00 

CO rH 

rH O 



2 * 

o co 




o co 

o o 

OS O^ 

Z> O US 


*> rH O 



o so 









C o 

o oo 

t^5 > 

t- TH 

co oo 

o 10 oo o o co o 

CO 00 rH O O SO 00 

CO O OS O 2>^ TH O5 





rH O 

co o 








. O OS 

*. O CO 

s - TO - 

* O TH 

rs SO Z> 

CO 2> 
Z> CO 






oo o 

so O 

o o 
o o 

00 TH 


o o o o o 

U3 O O O O 

00 IO 00 00 O 
iO CO ^O Oi ^^ 


CO O O TH - 


rH IO CO rH 






o o 
o o 
o 10 

so o 

00 Z> 













<o ^o 


r-l O 

\ *\ 

oo co 

OS 00 

O 1 TH *O OS rH 
IO O SO t Z>- 
\ * \ \ *\ 


rH O 






co co 

1-- O SO CO O 

x *\ \ *\ *\ 

O CO rH U3 00 
C<j no SO SO 

o o 


so o 






cr 1 

O HjO 



O < 
S bB 



rH F^ 


P O 


C7 1 M <u o 

a co o $ 

o3 ^ 

i-H > 


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. . 


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 


H 14. Average consumption per annum, exclusive of public 

Population Cubic ft. per Q ,. ff M. cu.ft. 

Towns. of areas consumer Mv ^tn * P 61 " 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. 


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- 

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. 


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. 


H 20. If atmospheric air was mixed with gas, state to what ex- 

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- 

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 


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- 


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- 

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 
H 26. What was the average calorific value? 

Birmingham. This return was not published. 


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- 

Manchester. Clean, purified with oxide. 

Leicester. Clean as regards HS 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- 

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. 


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 

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. 


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 

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- 

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 

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. 


H 33. Summarize records for past year. 

Birmingham. Engineer stated that pressure was generally 

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 

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. 


Towns. Hiffhett. Lowest, between day 

and night. 

Birmingham 42 6 8-20 10-50 1 15-20 

Glasgow 74 2 18 Note 3 (?) 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 15-30 5 about 22 about 20 

1 Rather difficult to answer. a Trunk mains. 

8 Night sometimes double the day. 

4 At works. B At governors. 


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. , 


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. 


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 

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 

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- 

Birmingham, Manchester, Leicester. Yes, according to offi- 

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 

Glasgow, Manchester, Leicester. Yes, according to officials. 

Companies. Yes, according to engineers. 


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 

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. 


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. 


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- 

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- 

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- 

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. 


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 

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. 



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, 

Glasgow. No. 

London-So. M. No. 

Newcastle. All things being equal, consumers were favored. 

Sheffield. Yes, all things being equal, or only small differ- 


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 
The official of each plant reported that he got what he 


H 71. Were bills for materials purchased paid promptly? 

Birmingham,, Glasgow, Manchester. Yes, monthly. 

Leicester. Bills were paid thirty days after the month re- 

London-So. M., Newcastle. Yes, monthly. 

Sheffield. Yes, upon the 12th of the following month after 
the bill was incurred. 


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 

Glasgow. Yes; the newest sections were very modern and 

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. 


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- 

Sheffield. One main office in centre of city. 


H 80. Were consumers 3 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 


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? 


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 


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 

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 

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 

London-So. M., Newcastle. Yes; a general inspection of 

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. 


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- 

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 

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 

Sheffield. No services are laid until required by tenants. 


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- 

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- 

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- 

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 

Newcastle, Sheffield. Yes; every job was inspected. 

British Gas Works 
(Schedule IV) 


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, 

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 

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. 






bo be 

? iT 

C0 Cj 

*S *8 

o o 

K K 

SR i CQ S 

v C iD 


o -*-" H w 
#* -9 

t> *q CO 

r-H J5 -""^ 

2 >> O 
d o> os *-" 

S g 



<D O> 

d M 
o ^ 
S a 



o> cu 
d bo 
o % 






[t. Furnished free Non 












di- m e n t meters, mi 
>rs others charged 9 













payment me- prep 
ters, othersme 
charged" othei 



5! o 

cti p3 




c-. to 



N -N M r-l 

** d d 

?-q 2 

cq P 
Vol. III. 15. 


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 2y 2 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 18 066 

2275B i 




4 10 076 

520 086 

600 10 

4 Parkinson and Cowan, Limited 3 18 066 

4 10 076 

520 086 

600 10 

30 Wright and Butler Man'f'g Co., L't'd. 3 18 066 

40 " 4 10 076 

50 " " 520 086 

60 " ""600 10 
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.) 


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 

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. 









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. 


M A 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- 
" 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 

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. 


I 11. Were rates reduced or increased between Jan. 1, 1900 and 

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 

25,00050,000 2/7 2/6 2/6 

50,000250,000 2/5 2/3 2/3 

250,0031,000,000 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 2/63/2 2/22/10 2/111-23/6 

1901 2/63/2 2/22/10 2/111-23/6 

1902 2/43/0 2/02/8 2/9 1-33/6 

1903 2/43/0 2/02/8 2/9 1-33/6 

1904 2/43/0 2/02/8 2/9 1-33/6 

1905 . 2/43/0 1/62/2 2/9 1-33/6 


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 2/34/0 2/3-^/0 2/3-^/0 

1901 2/24/0 2/24/0 2/2 1/0 

1902 2/14/0 2/14/0 2/14/0 

1903 2/13/6 2/13/6 2/13/6 

1904 2/03/5 2/03/5 2/05/5 

1905 2/03/5 2/03/5 2/03/5 

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 

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. 


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 

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- 

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, 

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. 


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 

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 


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 

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, %y 2l 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- 

Leicester. No depreciation was charged except upon gas 
Btoves and meters. 


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 

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. 


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 : 


Annual Under 

Towns. Amount. Years. Average. Review. 
Birmingham ... 923,684 29 31,851 50,526 

302,152 29 10,419 14,963 







How Applied. 

In aid of General 
Imp. Rate. 

Do. Public Light- 

Contribution to 
General Ex- 
penses of City. 


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 


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. 



Birmingham . 

Sinking Fund 
set aside but 
not applied in Cash 
redemption, in Bank. 
.... 67,060 16,062 


155,321 Municipality 





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." 


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. 


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 

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 S 1 /^ 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 


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- 

* 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. 


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. 


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 

Breeze 2 264,147 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 


Towns. Made. Used. Sold. Price. 

Birmingham gals. 6,471,472 none 5,844,260 1.45d. 

Glasgow 3 .... 

Manchester tons . . . 24,301 none 24,301 17/0.8 

Leicester tons 4 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 


Towns. Made. Sold. Price. 

Birmingham 17,345,989 17,325,075 .69d. 

Glasgow See note ( 3 ) above. 

Manchester 5 10,243457 10,243,457 .84d. 

Leicester 6,052 369 See note ( 6 ) above. 

London butts .... 378,025 378,926 4 73.94d. 

Newcastle tons ... 2,436.2 2,436.2 12 6--5 

Sheffield tons 3,251 3,251 1076 

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. 


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 2/23/0 No. 

London So. M. ... City Note (*) Partly 2 

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- 

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- 

a The price includes cleaning, repairs and maintenance, but the 
local authorities must light and extinguish. 

Vol. III. 16. 


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 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 


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 


Cash received being par value of stock is- 
sued, including above 238,776 461,224 

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. 


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 


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 

Manchester 1 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. 


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 3y 2 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 



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. 


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 

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 



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 

Deduct capital outlay 4,865,143 

And add surplus and other funds 309,139 

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 


Less sundry creditors , 396,891 

Temporary loan ; 170,000 566,891 

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 

This is provided as follows : 

Share capital 1,886,059 

Loan debt 406,025 

Bank overdraft 63,686 

Temporary loans 43,291 

Deduct capital outlay 1,941,504 



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 

Deduct capital outlay 961,882 

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 

Less sundry creditors 155,800 


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. 



Loan Capital Raised. Capital Total Total 

Still Out- Repaid by Stock Capital Capital 

standing. Sinking Raised. Raised. Expended 

Fund. on Works. 

Birmingham 1 2,242,388 

Glasgow "1,948,856 

Manchester "1,245,816 

Leicester 1,095,801 

666,561 2,908,949 '2,566,904 

4 440,454 2,389,310 3,592,728 

1,201,814 2,447,630 2,506,136 

89,158 1,184,959 1,001,633 


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. 


(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.) 



.eo eo 

5i co co 

- ; CO OS^ 
> rHCo" 

to - 

. co o o cs> 

53 oo o o co 
* -ti Oco LO 

M "00 

1-1 eo to oo 
* o eo rt< 
eo co i-i oo 

IH eo 

t- eo 



CO t- 

to co 



00 CO 

eo os 



00 CO 



iH CO 







O CO 00 t- 

^ co os t- 

ffl to 
-tJ CO 


ooo eo o o 
to os co o co 
co^co !< G^tf^, 
co"eo oo to" 
to t- to 



v.' co oo 






.to CO CO 



rH OS tO 



to eo"o" 
sj o to 
o to co 




LO -^Tco" 

"*l CO t- 




S 5 






W . oo eo eo 

eo to oo 


CO t- O> 



' 5 t ^,^!. 



OO^O^ 1 ^ 


fe,eo co i i 





M 05 os 1-1 10 
*** g to co eo 


>*< t> CO 


S M " 



s" rt " 


* OS OS^ 




00 OS ,H 

co oo eo^ 



. to t- 





eo"us id" 

* co co 


5 to o> 


co_ < *' oo 


w "^ 









f % 


e M 

53 ja 



^j T3 

*- BO fl 

Is ^ 


p 3 





to-3 rt s 






ital Rfnp 

05 S T3 

*3 S 

S 03 

rf *-" 'S 
H CD 01 



T(J ftjg 01 
rt -> t< 



- - a E? 

! 073 3 


"CO O OS iH 

os co co fC: to 

iH OSW^O^ 

too o' /v rc-^ 
to oo LO 2 to 

CO T-l CO J_5 

s ! 

O g> 


S ?5 

O ~ 









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 


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 


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. 


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 


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 


"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 



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 


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 


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 3y 2 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. 


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- 

"Accounts Due" is composed of: 

Gas rentals 86,183 

Residuals , 24,179 

Meters, etc 24,171 

Street lighting 3,866 

Fittings, etc 3,858 


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 


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. 



cq o 


e c-j 





o t- 


oo o 


o eo 











O 10 
VO 0> 
<M 00 

10 CO 

e<i t- 



Oi t*" CO 

o os *< 








us" * 
* us . 

! t- ! -J 

oo ; 

. eo" 
. * 










O THOO 00 
O TH <M 0> 


N t- O> 

t- US OO 

I I 






^>'*l. l ^. c i, 









C^l C-J ^ CO 



* w 





o coco 














O O> 


O -OO 




rH US 






l l 


o -o^o 





O> CO 



5 : N 

: j 










' *-l 

; o 

1 : 




n ; 09 

S .2 




n . 



cd 12 


jOan Debt Secured. 
Hher Liabilities: 

Loans unsecured 
Bank overdraft . 
Consumers' deposi 
Sundry creditors , 
'urplus and Funds: 


5 , 
ft >> 

l l 


g"o ^ -a S 
g rt-o .55. 

Bad t> "H 

Z5 g T3 8 


<S *43 d " o> "O 2 

life III i 



Profit and loss bal 

Estimated Liabi: 


_d * rt 
-t-> * J 
fl o 




m 3 


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 

"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 


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 





. O CO O UJ CO iH * 
< O CO r-N CO rH_ 

S t- 


rH CO <N CO 

C4 O) CO C4 
C<1 O i-l 





CO t- OS rH 

* OO 00 CO 
CO 1ft O CO 


*> co 







co" co" r-T eo" 

rH CO rH CO 

lo"ob" r-T 




L4. Revenue account. Debits. 


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 


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. 



eo co 
p o" 

O t- O O CJ 00 

Ot rH 

O T-} 


o ITS t- to oo 10 cc o 

ex) rH rH r-i t- OO rH rH 

t- t- us t- 

O OO C<l H 
IO U5 t- t^ 

"*< O rH CQ C^ rH 

o> c^ 00^ c^ oo e> us 

^"rHCxTcxT " 

CO rH * 


CXI t- rH 

co CQ eo oo 

IO "J 1 t- t- 



. . . . o 

' . . .00 
1 rH 


00 00 


I" 5 

cxf O5 c<T c<f * ; 

r-t CX| f ' 


CXI ' 

'i : : : w 


. co" 



5 S 



oo oo_ oo^io^ 
to* oo~ o"in" 

CXI rH -^ rH 

<N rH 00 CO in 

oo t- o * a> 

to co TH oo^o^ 

^ in" cxf to" to" 

oo eo * 

exi to to 

in in to 
t- us *< 


t- t- OO "!f 

OO CXI O "*< 

^ OO CO W 

t- o ^f in to 
r< eo oo exi en 

OO rH t- 

us to 

CM o> 

< CXI 



uel, oi 


3 ' m W 

S w 


= S 



i to cd 

O> o, 

^H 0> 

3 & H 
I p, . 

! 3 O 

i w fl 

' bD 
! 2 

SL *> 
1 fa x3 

w i i 

Q. O ** 



-0 S 


73 es^ 


S I 

, 1 


"0 rt 

a o >-< 

S w ^3 

2 1 M o 




S j ^o-s 



o I 




) O 




< o 



> o 




) CM 



' ctf 




Q3 r-H 










"03 ^ 












O t" 




TH t-TH 
e eq T< 
r-us us < 











CO 4.) 

S fl 
^ 3 

5 O 




d42 rt 

0> OS O 


+- TJ CH 
SRW W 0) 



eo o 


eo eo 

.a -> o 

. s-, 09 


3 . g S a 

t< t) O J5 ^ O +-> 

10 "m -FH S fc fl 

.:Mtf2f VA i 



c! -S 03 O c! -H i 



The followi 
1 This is tre 
turing costs 
2 Cost in ex 













ej 04 

iSJ L- 

to . 

3 co 


to 60 

03 d 


+j eo 

P I rt 

M * 

T-I co o 
co eq o 
1-4 eo o^ 
eo"i-T o" 

























, , 





: : 































m O 







* "S 


o t- 

5 fe 


* h 









* CJ 

*^ u/ 

_ (0 

<M (0 



S a 


o> a 


rt TJ p. 
CO fl 

^ d< o 
+ J + J 


_ (-1 o 1* 
O f*i O ^*> 


Depreciation f 

Reserve fund 

Premium on 

Extension and 








i'g * 






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 00 

2s. 8d. 4_13_4 

2s. 4d. 5 40 

2s. 3d. 5 68 

2s. Id. 5120 

2s. Od. 5148 

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 : 


Date. Price of Gas. Payable. Paid. 

1901 June 2s. 8d. 5 00 5 00 

December 2s. 8d. 5 00 5 00 

1902 June 2s. 3d. 5 68 5 68 

December 2s. 3d. 5 68 5 68 

1903 June 2s. 3d. 5 68 5 68 

December 2s. 3d. 5 68 5 68 

1904 June 2s. Id. 5120 510 

December 2s. Od. 5148 5100 

1905 June 2s. Od. 5148 5100 

December 2s. Od. 5148 5100 

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 


British Electricity Supply Works 

(Schedule I) 


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- 

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


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 

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, 

Walker & Wallsend Union Gas Company's (Electricity Capital) 

Act, 1900. 
Newcastle-upon-Tyne Electric Supply Company's Acts, 1900, 1902, 



Newcastle-wpon-Tyne [District] Electric Lighting Order, 1891, c. 


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. 


Southwark Electric Lighting Order, 1891, c. LXV. 
City of London Electric Lighting Acts, 1893, c. LXXXV; 1900, c. 


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 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 1888 1 July 1, 1896. 

Glasgow 1890 2 Inarch 1, 1892. 

St. Pancras November, 1891 From origin. 


Newcastle Supply 3 . . . ; January, 1890 .. 

Newcastle District 3 . . .January, 1890 

London City 3 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. 


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 


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. 


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 



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. 


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 


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 

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 


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 

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 

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 


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. 


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. 


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- 

"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. 


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 


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 

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 


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. 


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 

( 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- 

(*) 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. 


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 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 


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- 


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 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- 
No change has been made in any case. 

C 6. Was the power of amendment or alteration reserved to the 


No power to amend or annul was expressly reserved, but Parlia- 
ment has the power to do either at any time. 


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. 


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- 

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 

D 6. Does the municipality or company have full powers of 

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 
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. 


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- 


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 

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 


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 

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 


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. 



Central.' There is no area of supply fixed for this company. 
It has power to supply only the Westminster and St. James com- 






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 
. 2 575 13.2 
19 13.2 
2.9 3.9 
.25 3.9 
distribute; only 


3 7.5 






Pop. of 

5 24,900 











gives bulk supply. 





St. Pancras 
St. James 

Central does 

Per Cent. 


Per Cent. 



,s 42 . 
ly ... 575 2 
let ... 19 
ty .... 1. 
jr .... 2. 





7.5 3 
i 4 .33 


not distribute. 

24,900 5 







D 12. Give statutory provisions regarding nature of plant and 


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. 


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 

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, 


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. 


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 

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 

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. 


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. 


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. 


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 

Manchester 2 13s. 4d. 20 8d. 

Liverpool 3 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 

(') These maxima may be increased with the approval of tlie 
Board of Trade. 


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 2d. per unit when not more than 200 hours of supply are 
used per quarter at the maximum and Id. when over 200 hours are 

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 inquiries D 23 and 26. 


D 16. Give statutory provisions regarding character and quality 

of service. 

No special provisions, except so far as those given under 
inquiry D 12, affect and determine character of service. 

D 17. Is there any authority not connected with the municipality 
or the company which tests the current and the character 
of the service? 


Electric inspectors may be appointed as described below to 
inspect and test lines, works and service, to examine and certify 
meters, and to perform such other duties of a similar character, 
and in such a manner and with such fees as may be fixed by the 
appointing body. Apparatus for making tests shall be provided 
and maintained by the undertakers, and every facility afforded for 
proper inspection and testing. Appeal from any report of ?m 
electrical inspector may be taken to the Board of Trade. 

Municipalities. Where the municipality operates the plant 
the Board of Trade, upon the application of a consumer or of the 
city, may appoint the inspectors and fix their salaries, but they are 
paid by the local authority. Testing stations shall be established, 
equipped and maintained when so ordered by a court of summary 
jurisdiction upon application of ten consumers. In St. Pancras 
the court, instead of the Board of Trade, may appoint inspectors 
and fix their salaries. In Glasgow the sheriff has the powers of 
the court regarding testing stations. In no town have inspectors 
been appointed under these provisions. 

Companies. Where there is a private company the local au- 
thority may appoint the inspectors, or in case of default the Board 
of Trade upon application of a consumer or the municipality. It 
may also pay such salary as it deems wise or substitute fees therefor. 
The company shall establish, equip and maintain such testing 
stations as required by the local authority. The Central company 
is the only one to which these provisions do not apply at all, and 
they are not found in the power acts of the Newcastle Supply 
company. In all cases the local authorities have appointed in- 
D 18. Are the results of such examinations published ? 

Municipalities. None to publish. 

Companies. Yes, ordinarily. 
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 
capital, as it is called in England. 

Companies. No statutory provisions, except in the general 
acts relating to companies. The amount of share capital may be 
increased or decreased as each company wills through its articles 
of association. There are no auction clauses or sliding scale pro- 
visions as in the case of gas companies. 

D 22. Give statutory provisions regarding issuance of bonds (loan 
capital). See also D 25. 

Municipalities. The Act of 1882 provides that a local author- 
ity empowered to supply electricity may borrow money upon the 


security of the local rates with the approval of the County Council 
in London, the Local Government Board in the rest of England and 
the Secretary for Scotland in Scotland. It also enacts that money 
may not be borrowed except for permanent works, that the period 
of repayment shall be approved by these same authorities and may 
not exceed sixty years, and that the loan shall be repaid within the 
period set. 

Manchester. All the loans, amounting to 2,359,546, upon 
March 31, 1905, have been sanctioned under the above provisions, 
except 75,000 authorized by a special act in 1902. The city may 
not mortgage its plant in outside areas as security for its loans, 
but otherwise they are secured by the property, revenues and taxing 
power of the city. 

Liverpool. A loan of 500,000 was authorized by a special 
act in 1896, but over 1,000,000 have been borrowed under the Act 
of 1882. All the corporate stock is a charge upon all the revenues 
of the city. 

Glasgow. Prior to 1899 the money needed was secured under 
powers conferred upon the gas committee for lighting purposes. 
In that year authority to loan 500,000 was secured from Parlia- 
ment for the electricity undertaking specially. In 1902 all limits 
were removed and approval by the Secretary for Scotland substi- 
tuted therefor. All loans must be repaid within thirty years. 

St. Pancras. All loans have been made under the Act of 

Companies. No statutory provisions except those in the gen- 
eral 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. 

Financial Matters. 

D 23. Give statutory provisions regarding use of income or any 

portion thereof. 

Municipalities. The clause generally found in all statutes is 
substantially: All moneys except capital moneys shall be applied 
as follows: (1) in payment of working expenses, maintenance, 
damages, etc.; (2) in payment of interest on mortgages, stock and 
borrowed moneys; (3) payments to sinking fund; (4) in payment 
of all other expenses not chargeable to capital; (5) to reserve fund, 
if thought fit, such sums as seem reasonable, to be invested with 
income thereon in government securities until such accumulated 
fund shall amount to one-tenth of the aggregate capital expend- 
iture, this fund to be used to make good any deficiency in revenue 
or to meet any extraordinary claim or demand; (6) in aid of rates, 
improvement of the district or reduction of the capital moneys 
borrowed for electrical purposes, provided that if the surplus shall 
in any one }^ear exceed 5 per cent, upon the aggregate capital ex- 
penditure, such a reduction shall be made in the prices charged as 


will reduce the surplus to the maximum rate of profit. Capital 
moneys shall be used for capital purposes or applied to the re- 
duction of debt. These provisions apply to all of the public plants, 
except that in St. Pancras the rate is 7 per cent, instead of 5, under 
subhead (6). 

Companies. See data under inquiry D 26. 
D 24. Give statutory provisions regarding depreciation. 

None in any case, but see answers to D 23 and 25. 
D 25. Give statutory provisions regarding sinking funds. 

Municipalities. Under the Act of 1882 the Local Govern- 
ment Board, the Secretary for Scotland and the London County 
Council may fix the periods within which loans must be repaid. 
The act further provides that repayment may be made by equal 
annual installments of principal or of principal and interest, or 
by setting aside such a sum as will equal with accumulations the 
amount of the loan when due, the fund being invested in govern- 
ment securities; that the sinking fund may be used to pay off 
obligations at any time, provided that a sum equivalent to the 
interest on the sum so used be paid into the fund annually; and 
that loans paid off before the end of the period may be reissued 
for the unexpired portion of the term. 

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 appro- 
priation 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 Gov- 
ernment 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 investments, etc. If it appears that the local au- 
thority 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. 

Manchester. The equated period for all loans is 25.75 years. 

Liverpool. The Act of 1896 authorizing the purchase of the 
undertaking requires the city to pay off the loans authorized 
500,000 within forty-two years from date of issue. The Local 
Government Board, under another act, may increase or dimmish 
payments to sinking fund if it sees fit. 

Glasgow. The Secretary for Scotland has approved every 
loan made for the electrical undertaking. 


St. Pancras. This borough borrows money from the County 
Council and is subject to its regulations as to sinking funds. 

Companies. No requirements in any instance. 
D 26. Give statutory provisions regarding profits and dividends. 

Municipalities. There are no limits, except as stated under 
inquiry D 23. 

Newcastle Supply. I. The Order of 1893, which conferred 
powers for the city of Newcastle, provided that when profits amount 
to more than 8 per cent, on the capital of the company and also 
more than enough to make up dividends in past years to 8 per 
cent., one-half of the excess shall go to reduce prices in the follow- 
ing year. If any dispute arises as to the interpretation and appli- 
cation of this clause, it shall be settled by arbitration, upon request 
of the local authority. It should be noted in this connection that 
there are no statutory limits upon the amount of capital nor any 
public supervision of its issuance. As the dividends have never 
exceeded 8 per cent, the clause has not become operative. There 
is some question whether it has not been repealed. 

II. The Acts of 1899 and 1902, applying to certain areas 
outside of Newcastle and to supplies in bulk, provide that if the 
average price per unit is less than 2^d. the rate of profit may be 
increased by one-fifth of 1 per cent, for every 1 per cent, reduc- 
tion from 2^d. If the average price is more than 2^d. a 
proportionate reduction in rate of profit must be made, but back 
dividends may be made up to 8 per cent. If profits exceed the 
authorized rate the excess may be used to the extent of 1 per cent, 
per annum to form an insurance fund, to be invested and accu- 
mulated until it is equal to 5 per cent, of the capital. This fund 
may be used to pay cost of renewals or extraordinary claims from 
accidents, strikes or other sources which, in the opinion of two 
justices, due care and management could not have prevented. All 
excess over authorized dividends and insurance fund is to be carried 
as a balance to the next year. When the dividend shall exceed 8 
per cent, and the average price be below 2^d. per unit the company 
may set apart such sums as it sees fit out of the divisible profits, 
to be invested and to constitute a reserve fund to be applied to the 
payment of dividends when the profits of the year shall be insuffi- 
cient to allow the company to pay a dividend as authorized above. 
The Board of Trade at any time after the expiration of 10 years, 
upon the application of the company or any three authorized dis- 
tributors, or any twenty consumers, may revise the maximum 
prices, the standard rates and the relation between price and divi- 
dend, and similarly revise them any time after ten years from 
the last revision. 

The Act of 1903, granting powers in still other areas, limited 
the rate of dividend to 5 per cent., left the standard price as before, 
2|d., and provided that the dividend may be increased by one- 
fourth of 1 per cent, for every one-fourth of a penny by which the 
average is below the standard price. If price is more, dividends 


must be reduced proportionately, but back dividends may be made 

There is room for difference of opinion as to the applicability 
of these various statutes. When one considers the difficulties of 
differentiating the capital, the receipts and the expenditures for 
the various areas, it would seem that the natural interpretation 
would be that the Acts of 1899 and 1902, as amended in 1903, 
would apply equally to the whole area of supply, but the statutes 
are not clear. As there has been no adjudication of the question 
it must be left open. 

Newcastle District. Similar clauses to those given in para- 
graph I. above were enacted in 1891. There are no statutory 
limits upon the capital that may be issued, and although 8 per 
cent, dividends have been paid for a number of years, the excess 
of of 1 per cent, has apparently not yet made up to 8 per cent, 
the dividends in the first few years. 

London City, Westminster, St. James, Central. None. 
D 27. Give statutory provisions regarding compensation for 

Municipalities. Inquiry is not applicable. 

Companies. 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 has reference rather to 
the direct payments or equivalents in service rendered to the local 

Newcastle Slupply. None, unless the clause in the Walker 
Act be so considered, which requires the company to run the refuse 
destructor and to pay the interest and sinking fund on the money 
borrowed to build it and the electrical S3 7 stem. It is much more 
likely that these are merely the payments for the plant which was 
taken over, and which combined a refuse destructor with a gen- 
erating station. 

Newcastle District. None, except possibly in the district of 
Ben well and Fenham (see inquiry D 11 above), and in that case 
also an electrical system was leased as well as the right to operate. 

London City, Westminster, St. James, Central. None. 
D 28. Give statutory provisions regarding audit of accounts. 

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 
council, 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 auditor?, 
although not required to do so by law. The form of accounts is 
prescribed by the Board of Trade. 

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 

St. Pancras. The auditor is appointed and removed by the 
Local Government Board, which fixes his salary, prescribes his 
duties and directs his activities. He has the 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 Govern- 
ment Board. 

Companies. The accounts are audited by persons appointed 
by the Board of Trade. Their compensation is also fixed by the 
board, but paid together with their expenses by the companies. 
Access must be given to all books, papers and documents and every 
facility afforded. The Board of Trade may make regulations 
prescribing the time and method of audit. The only instance where 
these provisions are lacking is that of the area of the City of Lon- 
don company in Southwark, but as they apply to most of the area 
of this company they are in force for all practical purposes. There 
are also auditors appointed by the shareholders, except in the 
Westminster company. 

D 29. Give statutory provisions regarding publicity of reports 

and records. 

The general law requires that every municipal and company 
undertaking shall make up its accounts annually in such form as 
the Board of Trade may prescribe. A copy of the annual state- 
ment shall be furnished to every applicant at a price not to exceed 
Is. per copy. The provisional orders usually prescribe that the 
accounts of the undertaking shall be kept separate from all other?. 
In the City of London the local authority has the right to inspect 
the records and books of the company. 

D 30. Give statutory provisions regarding settlement of claims 
for injuries or death. None. 

Labor Conditions. 
D 31. Give statutory provisions regarding salaries paid. None. 

D 32. Give statutory provisions regarding wages to day laborers. 

D 33. 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. 
Manchester. See inquiry D 35 under Gas. 


Liverpool. By the Liverpool Improvement Act, 1882, the city 

empowered (a) to make allowances or gratuities to employees 
or their widows or families from the ordinary funds; and (b) to 
establish a superannuation fund for employees appointed after 
that date. Certain amendments were made by the Liverpool Cor- 
poration Act, 1893, but at present the fund consists of deductions 
from wages (or salaries) and the accumulated interest from in- 
vestments of such sums. The benefits are open to all employees 
except those doing temporary or casual work. 

The contributions to the fund amount ordinarily to 3 per 
cent, of the wages paid and are deducted from wages and paid into 
the fund. The account of each contributor is, until he comes upon 
the fund, kept separately and the interest on his payments carried 
half-yearly to his credit. 

The investments must not be made in any securities of Liver- 
pool, but in the mortgages, bonds or debentures of any other 
municipality, or in any securities authorized by law for trustees' 
investments. When the rate of interest received falls below the 
rate fixed for the time being by the municipality the difference may 
be made up out of city funds. 

Eecipients of superannuation must either (a) be sixty years 
of age; or (b) have been incapacitated for service through illness 
or accident not brought about by their own misconduct; or (c) 
have been compulsorily retired by the council in the interests of 
the service, but for reasons not justifying dismissal. 

Servants appointed before the Act of 1882, on retiring with 
consent after twenty-five years' service, are entitled for each year's 
service to at least one-sixtieth of their average annual salary and 
emoluments, calculated upon the previous fifteen years. But if 
they have contributed to the superannuation fund for at least ten 
year^, they are entitled to the scale given in the following paragraph. 
All payments in this class come out of the ordinary funds of the 
city, subject to contributions from the fund. 

Servants appointed since 1882, and entitled by contribution 
and by age or incapacity, fall into the following classes: (a) On 
twenty-five years or more of service they receive twenty-five fiftieths 
of their wages at time of retirement, with an extra two-fiftieths for 
each year of service beyond twenty-five; but a higher allowance 
may be granted in special circumstances, provided that in no case 
does the total amount exceed two-thirds of their wages, (b) On 
fifteen years or more of service (but less than twenty-five) they 
receive fifteen-fiftieths of retiring wages, with an extra one-fiftieth 
for each year of service beyond fifteen ; but a higher allowance may 
also be made in special circumstances, (c) On less than fifteen 
years' service some allowance may be made if it is thought fit. 

In place of receiving superannuation allowances contributors 
retiring with consent may claim the amounts standing to their 
credit; so also may contributors of at least ten years' service" who 
are leaving voluntarily and not to escape dismissal. 


Servants appointed since 1882 and not having hitherto con- 
tributed may do so and become entitled, but the first ten years' 
contributions must be at the rate of 5 (not 3) per cent, of wages. 

A servant required to retire by the council in the interest of 
the service, but for reasons not justifying dismissal, may claim an 
allowance (a), if appointed before 1882, of at least one-sixtieth 
of his wages for each years service, or (b), if appointed since 1882 
or having since 1882 made ten years' contributions to the fund, 
of one-fiftieth for each year's service up to two-thirds of his wages ; 
or he may instead claim the amount standing to his credit. 

Employees who leave before ten years of service, or are dis- 
missed for misconduct, or are guilty of fraud, forfeit all claims on 
the fund. The amounts standing to their credit are then carried 
into the general account of the fund. Once an allowance has 
commenced the subscriber's separate account is closed and the 
amount carried into the general account. 

On the death of a contributor his widow or other legal personal 
representative may claim the amount standing to the credit of the 
deceased. If an superannuated servant dies before receiving 75 
per cent, of the amount which was standing to his credit on re- 
tiring the city may, if it thinks fit, pay over the balance to his 
representatives or apply it in any other way to their benefit. 

The practice of the city is itself to decide in every instance 
whether an officer shall be appointed subject to the provisions of 
the act or not. As a rule officers appointed in an established 
capacity are compelled to contribute to the fund. 

Glasgow. See inquiry D 35 under Gas. 

St. Pancras. None, except that under the Metropolitan Su- 
perannuation Act of 1866, the borough may grant allowances or 
pensions on the grounds of permanent infirmity or old age, pro- 
vided the pension does not exceed two-thirds of the former salary 
and that the recipient be sixty years of age to qualify for " old age." 
In any ease, he must have served not less than ten years, when he 
may receive ten-sixtieths of his salary, with an addition of one- 
sixtieth for each year up to forty-sixtieths. Ten years may be 
added to the actual length of service for exceptional services, etc. 
A grant may be made to any employee of three months' pay for 
each two years of service. 

Companies. No statutory provisions in any .instance. 
D 36. Give statutory 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 


Every municipality and company is required to make, keep 
up to date and hold open for examination a map of ail mains, 
service lines and underground works, except services, upon a scale 
prescribed by the Board of Trade. In Manchester all repairs to 
streets and street paving in connection with the electricity under- 
taking must be paid for by the undertaking. 


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, ad- 
ministrative and "extra-legal." The first class includes the well- 
known remedies applied through the courts, and its scope, advan- 
tages and defects have been stated in answer to inquiries D 40, 41 
and 42-1. under Gas, q. v. 

II. The second class of remedies administrative is much 
more comprehensive than in the case of gas undertakings, as will 
become manifest upon comparing the data under inquiry D 44 
for Gas and for Electricity. The departments of the central gov- 
ernment having most to do are the Local Government Board in 
England and the Secretary for Scotland in Scotland, and the 
Board of Trade. The former have jurisdiction over loans and sink- 
ing funds (see inquiries D 22, 25 and 44-11.), and their control 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 42-11. in the Gas Works Schedules, for a discussion of the 
advantages and disadvantages of this control as a remedy. 

The Board of Trade has greater powers over electric supply 
works than any central department has over gas undertakings. This 
is largely due to the fact that when the Gas Acts were drafted 
central control was in an embryonic stage and its utility not gen- 
erally admitted. By the time electrical development had reached 
a stage which made legislation necessary, the desirability of central 
supervision had been fully demonstrated, and it was made very 
prominent, as shown under D 44-IIL, below. These powers are 
far-reaching, and 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 enforcement is largely handed over to 
the private individual and the 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. 
Further, the Board of Trade has no adequate system of inspec- 
tion of its own to discover illegal acts or delinquencies, except 


through the audit of accounts. But if the case is sufficiently 
urgent to call for a drastic remedy, and it is brought to the at- 
tention of the board, it has a few effective weapons at hand. In 
certain instances it may revoke the powers of the company or 
municipality in whole, or in part with the consent of the under- 
takers. It may order them to cease operations until the matter 
complained of has been remedied. 

Upon the subject of audit it is important to note that neither 
the professional accountants who audit the books of the municipal 
undertakings nor the auditors appointed by the Board of Trade 
to examine the accounts of private companies have the power 
possessed by the Local Government Board auditor at St. Pancras 
or the Board of Trade auditor of the South Metropolitan Gas 
Company. In the case of St. Pancras the auditor may surcharge 
an item and order it paid by the responsible official. The auditor 
of the South Metropolitan company may refuse to allow dividends 
to be paid until his wishes are met. But the auditors of electric 
accounts may only report what they find, and must depend upon 
other means to enforce their opinions. As a remedy the system 
of audit for electric lighting accounts is therefore weak in this 

There is practically no system of local administrative control. 
In the case of municipal plants the town council is the ultimate 
source of authority, and although of course an appeal 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 per- 
suasion or the election of other members. The powers of the local 
authorities over private companies are set out under D 46, from 
which it will be seen that practically the only control exercised is 
over street work. 

III. Upon the subjects of legislative and extra-legal rem- 
edies and the efficiency of all remedies when taken as a unit, 
the reader is referred to inquiries D 40, 41 and 42-IIL, IV. and V. 
in the Gas Works Schedules, as the principles there stated apply to 
electric lighting as well, barring the illustrations that are not ap- 

D 43. If judicial or administrative orders have been issued by 
central authorities relative to electric supply undertakings, 
state them, and give source and date of issue. 
None could be found, except those referred to under D 12-1. 

22, 25, 44 and 48. 

D 44. If any central board, commission or other authority has 
control or supervision as regards electric lighting under- 
takings, give statutory provisions relating to its powers and 
I. There are four departments of the central government 

whioh exercise some sort of control : The Postmaster General, the 


Local Government Board, the Secretary for Scotland and the 
Board of Trade. The Postmaster General's powers are limited 
to the approval of plans for street work and earth connections. One 
month before any new work is begun, the municipality or company 
must serve notice upon him, describing the proposed works and 
giving plans and data which will indicate fully the character of 
the proposals. The Postmaster General may disapprove or ap- 
prove with conditions and recommendations, and his suggestions 
must be adopted by the undertakers, unless upon appeal to the 
Board of Trade he is overruled. These clauses appear in prac- 
tically every act and provisional order approved by Parliament. 

II. The Secretary for Scotland and the Local Government 
Board may be treated as one, for their powers are practically the 
same, relating principally to loans and sinking funds (see in- 
quiries D 22 and 25). There is one additional provision which 
appears in nearly every act, especially in recent years. It is that 
ten (or twenty) or more houses occupied by laborers may not be 
acquired without the consent of the Home Secretary, the Local 
Government Board or the Secretary for Scotland, depending upon 
the locality. Occasionally cities are required to get the approval 
of the Local Government Board before taking more than five acres 
of land at one time for electric lighting works. 

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 the statutes is necessary to show how far- 
reaching are its powers. Only the more important ones need be 
mentioned here, and those of general application will be given first 

The following matters must be approved by the Board of 
Trade before execution, the references in parenthesis being to the 
inquiries where they are given more fully: Transfer of powers 
to another company or municipality (D 2) ; regulations of the 
local authorities relative to public safety (D 12-11. ); system and 
mode of supply, overhead wires (D 12-111.) ; a new method of 
charging for current (D 15-11.) ; earth connections (D 12-111.) ; 
breaking up of private streets, etc. 

The Board of Trade issues, rescinds and amends regulations 
to secure public safety (D 12-1.) ; prescribes the form of the annual 
statement of accounts (D 29) ; appoints the auditors of company 
accounts, fixes their salaries and prescribes the time and method 
of audit (D 28) ; may extend the time within which mains must be 
laid in certain streets (D 13-1.) ; may increase the maximum per- 
centage for which an undertaker may require a prospective con- 
sumer to give a contract (D 13-111.) ; may revoke a grant of powers 
in whole or in part with the consent of the undertakers, for going 
outside its area, failure to obey the statutes and other causes (D 4 
and 40) ; fixes the maximum prices which may be charged con- 
sumers upon appeal from the local authority or the company (D 
15-IV.) ; appoints electrical inspectors upon the application of one 
consumer or the municipality and fixes their salaries, duties and fees 
(D 17-1.); appoints arbitrators to settle disagreements ; fixes the 


details of transfers of plants from companies to municipalities; 
decides whether a company is able to execute its powers and settles 
appeals from decisions of the Postmaster General as to street work 
and from the scale of charges for meter rents, 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. The additional powers in special instances are: 

Liverpool. See under inquiry D 15 above. 

St. Pancras. See inquiry D 12. The Board of Trade may 
direct an inquiry into the working of the system, may suspend or 
modify obligations to furnish supply, and may substitute new 
regulations for those in the act if a high tension system of arc 
lighting is adopted. 

Newcastle Supply. See under inquiry D 12 above. 
D 45. What have been the effects of this supervision? 

I. The control possessed by the Postmaster General and the 
central departments as to workmen's dwellings is generally ap- 
proved as wise and beneficial. There seems to be no opposition to 
its existence or the manner in which it is exercised. This is also 
largely true of the supervision of the Local Government Board or 
the Secretary for Scotland over loans and sinking funds. Munici- 
palities sometimes 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 supervision is 
not objected to by the municipalities and is considered a wise and 
effective safeguard by the public. It may be unnecessary in many 
cases, but when needed it is a ready and effective weapon against 
unwise action whenever and wherever it may appear. 

II. The Local Government Board has supervision of the audit 
of accounts in only one plant under examination, that of St. 
Pancras. This central audit is apparently very thorough and not 
opposed by the borough officials. The accounts of all the companies 
are audited by agents of the Board of Trade. They examine the 
vouchers, or such of them as they think necessary, compare them 
with the books and report any irregularities they may find. They 
do not have the power of surcharge which the auditors for the 
Local Government Board possess, but as the companies are super- 
vised in other directions by the Board of Trade and are constantly 
before it for authority or approval, they do not care to antagonize 
it by refusing to do as the auditors suggest. The auditor usually 
comes around some time after the close of the year, and it is, of 
course, impossible to make any change in that year's accounts; the 
correction must go over to the next year. He is an accountant 
and, usually, a barrister, but seldom has any engineering training. 
He cannot go deeply, therefore, into the proper charging of all 
items, but he attempts to keep out of capital all items that ought 
to go to revenue. This and the honesty and legality of the accounts 

Vol. III. 20. 


are the points to which he devotes most of his attention. The 
companies do not object to the audit; they are satisfied with its 
working, and the public seems to feel that it is an added guarantee 
of the honesty and efficiency of the management one which could 
not wisely be done without. The result is that the published ac- 
counts of the electrical companies in Great Britain are considered 
above suspicion and an accurate transcript of the books of the un- 

III. The control of the Board of Trade over technical mat- 
ters 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 
control; 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 development of the industry by refusing to allow 
experimentation, for it is only when an invention is put into actual 
practice that its utility or worthlessness can be quickly and fully 
demonstrated. The general opinion is also that something has been 
gained, as this attitude has been a check upon hasty and unwise 
action, and that at present the attitude of the board is much more 
favorable to progress and steady development than in the past. 
Criticism, consequently, is on the wane, and the general sentiment 
is favorable to the system of control and its present execution. 
D 46. What powers of supervision over private companies does 
the city possess ? 

Companies. The instance in which the municipality comes 
most directly in touch with private companies is in the breaking 
up of streets. Before any new work is begun in the streets a notice 
must be served upon the local authority describing the project and 
accompanied with such data and plans as may be needed. If the 
local authority disapproves, the plans must be altered or an appeal 
taken to the Board of Trade (see D 12-IIL). Before streets may 
be opened for any purpose a notice must be served upon the local 
authority, unless the case is urgent, and a permit secured. Wires 
may not be placed overhead without the consent of the local au- 
thority. It also has the power to enact by-laws relating to many 
matters, including electric lighting ordinances (cf. D 12), to ap- 
point electrical inspectors (I) 17), to petition the Board of Trade 
for a revision of prices (D 15), and to enforce the laying of new 
mains upon certain conditions (D 13). Indirectly considerable 
influence may be brought to bear when the plant may be taken 
over by the municipality (D 8), but of course this is not often, 
and is usually far in the future. 


D 47. What provisions has the city made for the exercise of its- 
powers of supervision? 

Generally speaking the cities have taken full advantage of 
their powers when necessary. Inspectors have been appointed, and 
the breaking up and replacing of the streets is very closely watched. 
Indeed, there is some complaint, particularly in the City of Lon- 
don, that the local authority is too harsh in its restrictions. No 
revisions of limits upon prices have been secured, but there seems 
to be no feeling that the authorities have been delinquent in this 

D 48. Has the company resisted the enforcement of the legal 
provisions providing for public supervision? 

No record could be found of any important resistance in recent 
years, unless the instances in London be so considered. The liti- 
gation relative to the contracts for public lighting of the City of 
London Company has been described under A 5 to 8. The company 
also has been called into court for violating the smoke ordinance 
and the by-laws relative to opening streets. Until it purchased the 
surrounding property it had trouble about vibration also. 


British Electricity Supply Works 

(Schedule III) 


H 1. Data for year ending : Manchester, March 31, 1905 ; Liver- 
pool, December 31, 1905; Glasgow, May 31, 1905; St. 
Pancras, March 31, 1906 ; Companies, December 31, 1905. 


H 2. Give brief description of generating stations. (See also 
H 4 and H 64.) 

Manchester. There are three main electric generating sta- 
tions in Manchester, two directly in the heart of the city and one on 
the outskirts about three miles from the commercial centre. The 
two in the centre are known as the Bloom Street station and Dick- 
inson Street station. The Bloom Street station is practically an 
annex to the Dickinson Street station, as they are built side by side 
with only an arm of the canal between them. The last mentioned 
belongs to a type in vogue about twelve years ago with some mod- 
ern apparatus crowded in, but the Bloom Street station is quite 
modern in both design and equipment. These two stations to- 
gether contain thirty-three Babcock & Wilcox and Lancashire 
boilers of various sizes. The Dickinson Street station has both 
direct-connected and belted-engine units, and four direct current 
turbo-generators. The units in the Bloom Street station are uni- 
form in size, consisting of vertical engines connected direct to di- 
rect current generators. 

The general arrangement of the Dickinson Street station, 
though originally well planned, is now very bad, especially with 
regard to the boilers and the great amount of complicated steam 
piping which necessitates long runs before reaching the engines, 
which appears to have been due to several enlargements. The 
station is built to operate partly non-condensing, as the quantity 
of water in the canal is limited and, being still, becomes so hot as 
to injure boats and therefore cannot be used for condensing dur- 
ing heavy loads. All coal is received by barge as there are no 
nearby railroad connections. The coal storage is small and the 
method of handling rather congested and unhandy. These sta- 


tions, originally intended for low tension service, were not badly 
located and are well located for sub-stations, but in contrast with 
modern practice, their efficiency as generating stations, especially 
the Dickinson Street station, is not favorable, because of restricted 
location, limited condensing facilities, old apparatus and compli- 
cated piping. 

The Stuart Street station is the newest and largest of the 
three. It is situated in the city's outskirts, and it will appear 
that its position was rather unwisely selected, being located on a 
canal that can supply coal only at a cost higher than by rail and 
that is too small for condensing purposes, thus offering no advan- 
tage whatever. To obtain coal it was necessary to build a viaduct 
about two miles long to the nearest railroad, which was rather an 
expensive operation, as it consists of elaborate steel, masonry and 
earth construction. The station, of massive and ornamental de- 
sign, was built on quite extravagant lines and in two instalments. 
The first was well planned, having the rows of boilers at right an- 
gles to the generating house, but subsequent engineering errors have 
changed the original design, so that further extensions cannot be 
made with the same facility as if the original design had been fol- 
lowed. The first installation consisted of six large vertical steam 
driven units, and in 1902 two large vertical engines direct connected 
to alternators were installed. These large units necessitated a 
generating house of immense dimensions and costly construction. 
Space was left for two more such units, but it will probably be util- 
ized for the installation of three or four large turbo-alternators. 

For condensing purposes, forced draught cooling towers have 
been erected so that all units run condensing. The railroad trestle 
for supplying coal is equipped with hoppers and conveyors to dis- 
tribute the coal to the bunkers in the two boiler rooms. The 
boilers are all of the Babcock & Wilcox land type, supplied with 
automatic stoking chain grates. In the new boiler house each boiler 
has its own Green's economizer, all of which are included in the 
building, which is very large for the capacity installed. All in all 
the Stuart Street station is probably the most expensively built 
plant for the capacity installed that has been visited. 

There are nineteen sub-stations equipped with motor-driven 
generators and balancers. The principal output from these sub- 
stations is for the tramway service. They are scattered all over 
the city and outlying districts, some of which are underground in 
the thoroughfares. There are no storage batteries at present. 

Liverpool. There are two main electric generating plants 
and ten smaller generating stations, containing in all about eighty 
direct-connected units. Of the two main stations one was built 
six or eight years ago, and the second in 1902 with an additional 
section in 1904. Of the smaller stations there are five separate 
steam plants with their own boilers and steam generating equip- 
ment. These are scattered throughout the city and are operated 
independently, feeding directly in on the low pressure three-wire 
distribution system. In addition, there are five other stations with 


engines and generators owned by the electric undertaking, but 
which are located in buildings and receive their steam from boilers 
owned and operated by the " Destructor " department of the city. 
The steam supplied at these destructor stations is generated by the 
burning of garbage, which is a continuous process and necessitates 
the constant running of the engines at these plants and practically 
a constant amount of electrical energy being generated. Thus 
variations in loads must be taken up by the five small stations and 
the two large stations, owned by the electrical undertaking. 

The Pumpfield station, which is directly in the heart of the 
city, is located on the side of a slip of the Leeds and Liverpool 
canal, receiving all of its coal by barge. This coal is shoveled into 
conveyers which conduct it to hoppers directly in front of the 
boilers. The station equipment contains 28 Lancashire boilers of 
350 H. P. each, two stacks 200 feet high, and 14 Willans & Kob- 
inson vertical steam engines direct connected to direct current gen- 
erators. Twelve of these units are of 700 K. W. each, and two of 
150 K. W. each, making the total capacity of the station 8,700 
K. W. The Pumpfield station is designed to run condensing, but 
the canal slip being a dead end will not allow all of the units to be 
run condensing at the same time, without undue heating of the 
canal water. 

The three large stations in Liverpool, handsome, substantial 
structures, are all built on the same general design, a long central 
generating room with two parallel boiler houses, one on either side. 
The boiler-rooms are arranged so that the stack is in the centre of 
each house, with seven boilers on each side, a single economizer 
being provided for each group of boilers. Provision is also made 
for induced draught. An extension is built on the front end of 
the generating house which contains the switchboard equipment 
built on the engine floor level. 

The Lister Drive station is situated about three miles from the 
centre of the city on a plot of ground containing about fifty acres. 
The station has railway connections, receiving its coal up long 
grades and somewhat elevated sidings. This plant is divided into 
two units or sections, the first section being exactly similar to the 
Pumpfield station. It contains two boiler houses with 28 Lanca- 
shire boilers, four economizers and two stacks, each 250 feet high 
and 13 feet diameter. The engine room contains 14 vertical 
Willans & Eobinson engines, nine of which have a capacity of 700 
K. W. each, and two 150 K. W. each. These are direct-current 
type and work directly on the low pressure three-wire system. At 
the same station there are three of the same size units, 700 K. W. 
each, generating alternating current at 6,000 volts. The total ca- 
pacity of this section is 8,700 K. W. The switchboard is at the 
end of the building as at the Pumpfield Station on the engine room 
floor level. 

In the new section at Lister Drive the buildings are complete, 
being identical to those of the first section, but the boilers and gen- 
erating units are only about half installed. There are eight Bab- 


cock & Wilcox boilers installed of 1,000 H. P. each, and two stacks 
250 ft. high by 15 ft. in diameter. The generating equipment con- 
sists of two 1,600 K. W. turbo-alternators and two 2,000 K. W. 
turbo-alternators of the Parsons type. These alternators supply 
current, with the alternators of the first section, at 6,000 volts, 
which current is transmitted to the sub-stations where' it is trans- 
formed to the direct-current tramway and commercial service. 

The location of the Lister Drive station, which was selected 
because the property belonged to the city and adjoined the rail- 
road, necessitates an immense amount of copper to get the output 
equivalent to 6,000 K. W. of direct current at 480 and 240 volts to 
the centre of the city. The Lister Drive station is not adjacent to 
any stream 'or canal so it has been necessary to install water tanks 
and cooling towers for the operation of these generators. There 
are three cooling towers installed, two natural draught of wooden 
construction, and one forced draught built of steel. Coal is brought 
into this station by railroad cars running directly over hoppers in 
front of the boilers. There are four sidings, one to each boiler 
house, and as these sidings are not over 12 feet high the total coal 
storage capacity is somewhat limited. 

There are eleven sub-stations for transforming the alternating 
current. Some of these are located in the small steam stations, 
while some are of recent construction and built solely for convert- 
ing purposes. The equipment of these sub-stations consists of 39 
individual motor generators with a total capacity of 10,800 K. W. 
There are several small storage batteries installed in connection 
with the sub-stations, but they are not of sufficient capacity to 
carry the load except momentarily. 

Glasgow. There are three generating stations, namely, Port 
Dundas, St. Andrews Cross and Kelvinside. 

Port Dundas station, a massive building of pleasing and con- 
venient design for present equipment, is the largest and is well sit- 
uated about one mile north of the Clyde on the south bank of the 
Eorth and Clyde canal. This station receives coal by canal or cart- 
age only. There is a railroad on the opposite bank, but as a bridge 
at this point will not be permitted, there is some talk of running a 
tunnel under the canal through which a conveyor may deliver coal 
to the station. This is a condensing station using the canal water, 
for which the claim is made that it affords an adequate supply for 
condensing purposes' during maximum load. As the canal level is 
several feet higher than the condensers, pumps are only required 
to circulate the water. This station is designed so that it can be 
extended without difficulty. One of the extensions has been built 
within the last three years, the ultimate capacity being approxi- 
mately 24,000 K. W., about 15,000 of which is now installed in- 
cluding two 3,000 K. W. turbo-alternators recently erected, one of 
which is undergoing repairs. No account of these turbos is taken 
in valuation as they were not included in the last annual report of 
this department. All the direct current units have vertical steam 
engines running from 120 K. W. to 1,400 K. W. each. This sta- 


tion is located about a mile from the centre of the city, and its sit- 
uation, equipment and arrangement are of such a character as to 
enable it to generate and distribute current with comparatively 
high efficiency. 

St. Andrews Cross station, a substantial structure, is the sec- 
ond and next largest station; it is situated south of the Clyde, at 
approximately the centre of a settled district, on a railroad with 
low level siding connections, and has elevators to raise the railway 
cars above the coal hoppers. This station not being on any canal 
or stream, was originally designed to run non-condensing, but in 
consequence of steam turbines being adopted, large water tanks 
and cooling towers have been installed.^ The water used is from 
the city mains. This plant was designed to contain about 12,000 
K. "W. of engine-driven units, of which about seven, varying in 
size from 300 to 750 K. W., have been installed, and one turbo- 
alternator of 1,400 K. W. in addition, but as the turbine was 
installed since the last annual report no account of it has been 
taken in the valuations. This station is not well located for con- 
densing purposes, and cannot generate to the same advantage as 
the Port Dundas station. 

A third station is located at Kelvinside at the far northwest 
part of the city, and was obtained by absorption of a small com- 
pany. The equipment consists of three 250 K. W. steam-driven 
units, and the current generated is supplied in the adjacent neigh- 

Since the introduction of the turbo-alternators the department 
has purchased two property sites for the erection of sub-stations. 
One on French street near the Dalmarnock gas works, upon which 
a small inexpensive building of corrugated iron has been erected 
for motor-generators. The other site being on Cathedral street, 
near the heart of the city, where a like sub-station is being in- 
stalled in a permanent brick building. On Waterloo street, the 
site of the original generating station and where the offices of the 
electricity department are now located, a sub-station has also been 
established with an equipment of motor-generators. This station 
is now being enlarged to provide for further sub-station capacity, 
but these extensions are not included in the valuations as they are 
all after the date of the annual report. These three are the only 
sub-stations and contain motor-generators to the extent of about 
6,500 K. W., about half of them were installed after the date of 
the report and are not included in the valuation. To facilitate the 
operation, two small storage batteries are installed in each of the 
main generating stations, that is, at Port Dundas and St. An- 
drews Cross. These are continually floating on the line and are 
simply used for balancing purposes, not being of sufficient capacity 
to carry the load except momentarily. 

St. Pancras. St. Pancras has two generating stations, one 
near Kegents Park off Stanhope street in the southwestern part of 
the borough, a rather poor residential section, and the other at 
Kings road in the central part of the borough near the Eegent' 


canal. There are in addition a southern sub-station at Tavistock, 
a northern sub-station at Highgate, and three balancing stations, 
one at Fitzroy street, one at Cobden square and one in St. An- 
drews Garden. 

The Eegents Park station was built on a piece of property 
having an area of about half an acre, which is practically entirely 
covered with low and irregular brick buildings. It has an office 
extension and passageway through to Stanhope street. The equip- 
ment of this station consists of five B. & W. boilers of 100 H. P. 
each, and seven three-flue dry-back marine boilers. The generator 
equipment consists of ten Willans & Eobinson's two-cylinder en- 
gines direct connected to 80 K. W. generators, of the direct-cur- 
rent type; and four Willans & Eobinson's engines, three-cylinder, 
direct connected to 500 K. W. direct-current generators. There 
are in addition two motor-generators of 50 K. W. each, which con- 
sist of bipolar machines one driving the other. These are to re- 
duce the potential of 220 volts to 110 volts, to supply some few 
consumers still maintained on the 110-volt system. There is at 
this plant an overhead copper tube evaporative condenser of a ca- 
pacity equal to about one-fourth of the generating capacity of the 
station. There are also two stacks, two water heaters and neces- 
sary circulating and boiler feed pumps. All coal and ashes are 
carted, and as the station is practically non-condensing, its ef- 
ficiency therefore, though favorable at the time of its construc- 
tion as regards location, is now under that of modern practice. 

The Kings Eoad station is located on Kings road at the corner 
of Pratt street, and is built adjacent to the municipal destructor or 
garbage crematory. This destructor supplies some steam for the 
operation of the electric station, which the electric undertaking 
must accept, and at times to the apparent detriment of its own op- 
eration. The buildings are substantially built of brick, with steel- 
truss roofs, the engine room being in two parts with boiler house 
adjacent. Coal is received from a nearby canal and carted to the 
plant, where it is elevated on one side of the house to overhead 
bunkers by means of a conveyor, and distributed through chutes to 
one side of the boiler house, the other side receiving coal from the 
carts direct. This station has practically no coal storage capacity. 
The boiler installation consists of four B. & W. marine type boilers, 
of about 400 H. P. each, equipped with chain grates, and five Lan- 
caster hand fired boilers of 175 H. P. each. The boiler houses are 
so arranged that it is impossible to go from one boiler room to the 
other without going outside of the buildings, about two hundred 
feet a very bad arrangement in case of accident. The generating 
equipment consists of three vertical triple expansion engines, built 
by Brqwell, Lindley & Company, each direct connected to a 450 
K. W. generator. Two of which generate alternating three-phase 
current, of 50 cycles, and 5,200 volts ; and one, a double generator, 
supplies direct current at 440 volts, for the 3-wire system. These 
vertical engines have one large surface condenser with electric- 
driven air and water pumps capable of condensing for 1,000 K. W. 


capacity. There are two Parsons turbines of 1,000 kilowatts each, 
1,800 revolutions per minute. Each of these is direct connected 
to a pair of Siemens twin generators of the direct-current type, 
having corrugated armatures. The turbines are equipped with 
surface condensers, augomentors and Edwards motor-driven air 
pumps. Two Willans & Kobinson's engines, direct connected to 
80 K. W. bipolar direct current generators of the three- wire sys- 
tem complete the generating equipment. Condensing water is ob- 
tained from a nearby canal, a distance of about 300 feet. The 
water is pumped by electric-driven centrifugal pumps. The 
switchboard in the Kings Koad station is elevated and built on an 
iron gallery. It consists of complete panels for the high-tension 
plant and also a full equipment for the low-tension three-wire 
direct-current system. The front of the building has been closed 
up to prevent the noise of the direct-current turbines from dis- 
turbing, nearby residents, which interferes somewhat with the ven- 
tilation of the generating room. 

The northern and southern sub-stations are substantial brick 
buildings in keeping with the residential surroundings, and the 
equipments which are identical each consist of one 200 K. W. in- 
duction motor of the A. E. Gr. manufacture, and two motor-gen- 
erators of 150 K. W. each of the twin generator type. The three 
balancing stations previously mentioned are of the vault type, built 
under ground, two of them under the street and one in the park. 
There are eight small motor-generators and balancers at the various 
sub-stations, averaging about 25 K. W. each. 

Newcastle Supply. The properties operated by this company 
supplied single-phase alternating current with individual house 
transformers in the city of Newcastle up to within say five years 
ago, when its generating station was located near the heart of the 
city, at Pandon Dene. In 1902 a generating station was built 
by the Walker & Wallsend Union Gas Company at Neptune Bank, 
which is on the extreme eastern side of the city; but about the 
time of its completion a deal was entered into between the gas 
company and electric supply company, whereby the electric in- 
terests of the former were absorbed by the latter. 

The Neptune Bank station is built on practically modern lines 
with parallel engine and boiler houses. It contains eight 500 H. P. 
land type Babcock & Wilcox boilers and economizers. The coal is 
received by railroad siding, dumped directly in front of the boilers 
and trimmed by hand to automatic stokers. The generating equip- 
ment consists of four 750 K. W. engine-driven, and one 1,500 K. W. 
turbine-driven units. These units are all three-phase, 6,000 volt 
alternators and supply current to various motor-driven sub-stations 
and static transformers. The plant is not well situated for con- 
densing purposes and a cooling tower has been installed in addition 
to a large brick pond with many individual sprays to assist in 
cooling the circulating water, consequently, though originally well 
designed, its efficiency is not equal to that of the Carville 


The main generating station, and the last one built, is at 
Carville, further to the eastward and outside the city limits. This 
is probably the most economically constructed, best designed and 
most flexible as regards extensions of any station that we have 
investigated. The site is a plot of about fifteen acres, with ample 
frontage on the Eiver Tyne, and adjacent to high level railway 
service. The engine and boiler houses are of heavy steel construc- 
tion covered with corrugated iron. The coal supply comes from the 
high level railway over a steel trestle, and is then switched directly 
over the coal hoppers in the boiler house where it is dumped. The 
design of the plant provides for steam turbines, but the head room 
of the engine house is high enough for large vertical engine units ; 
afad as it will be necessary to have, proportionally greater boiler 
house area than for generating requirements, the boiler house is 
built at right angles to the generating house. The boiler equip- 
ment consists of ten 1,000 H. P. Babcock & Wilcox marine-type 
boilers, and two Green's economizers, each of sufficient capacity to 
take care of one side of the boiler house. The draught is augmented 
and regulated by induced draught fans. To meet the enlargement 
under way the present boiler house is being duplicated. The 
generator equipment consists of two 2,000 and two 3,500 K. W. 
Parsons turbo-alternators with electric-driven condenser pumps 
and auxiliary apparatus. The condensers are of the surface type 
provided with augomentors to maintain high vacuum. There is 
space for a 5,000 K. W. turbine, which with two others of the same 
size were being installed at the time of inspection. A second boiler 
house of equal capacity to the first described was also being erected. 
This station generates three-phase alternating current of 6,000 
volts, which is supplied to the various sub-stations of the company. 
It receives its condenser water direct from the river front, where a 
pump house with electric-driven pumps is installed. 

The Newcastle Supply Company also controls the Priestman 
Power Company, whose station is situated south of the city in a 
place called Blaydon. At this point the Priestman Power Company 
owns and operates a colliery and two benches of forty coke ovens 
of the Otto-Hillsdorp type, from which the surplus gas, instead 
of being allowed to go to waste, is used under four land-type Bab- 
cock & Wilcox boilers of 500 H. P. each. These boilers supply 
steam for two 750 K. W. Parsons three-phase turbo-alternators, 
which supply current at 6,000 volts to this district and the Durham 
County distributing mains. The boiler and engine houses of this 
station are of steel construction covered with corrugated iron. The 
generating equipment is of the latest and best design, and the 
installation is such that should the coke ovens be abandoned, the 
equipment could be moved and erected elsewhere at minimum cost. 
Near at hand is a small brook from which feed water for the 
boilers is obtained, but not being sufficient for condensing purposes, 
it is necessary to use the condensing water over and over, hence a 
cooling tower and reservoir form part of the equipment. 

The Priestman Power Company and the Durham County Com- 
pany, though controlled by the Electric Supply Company, are 


operated as separate holdings; therefore, though their sub-stations 
are listed, their properties are not considered in the valuation which 
covers only such properties as are in the name of the supply com- 
pany. There originally was a power station at Durham, but it is 
now being superseded by high-tension underground distribution 
from the Carville plant, where step-up transformers are being 
installed to raise the transmission current to 22,000 volts. There 
are eleven sub-stations owned outright by the Electric Supply com- 
pany, containing motor-generators and balancers. The Durham 
company controls four sub-stations of the same type, and the Elec- 
tric Supply company owns jointly with the North Eastern Railway 
Company three sub-stations with motor-generators and rotaries. 
The North Eastern Railway Company also owns nine sub-stations, 
two of which contain motor-generators and the other seven static 
transformers. There are thirteen other sub-stations, the buildings 
of which are built on private property and belong to consumers. 
These contain static transformers only, which are owned by the 
.company and are accounted for. In addition to these sub-stations 
there are three storage batteries containing 908 cells, with a total 
of 4,500 ampere hours discharge, one at the Carville generating 
station and two at sub-stations. 

Newcastle District. The Newcastle and District Company 
was started fifteen years ago and installed its apparatus in some 
buildings on the Forth Bank, which were originally used for factory 
purposes. As the output grew, this installation was increased until 
in 1902 a large power house was built on the adjacent property 
now known as the Close station. In 1904 another station was 
built at Newburn, a suburb to the west, to supply the territory in 
this vicinity. 

The Forth Bank station was built at the time when Parsons 
was introducing his first turbines, and it was originally equipped 
with about five small turbo-alternators, some of which have since 
. been discarded and others added, so that it now contains three 500 
and six 150 K. W. A. C. turbo-generators of 1,000 volts and 80 
cycles. The boiler room contains eight 200 H. P. Lancashire boilers 
and three Green economizers. This station receives its coal by a 
high level railway from which the coal is dumped and shoveled 
into hoppers that feed the conveyor which supplies the small hop- 
pers in the boiler room. This station is operated condensing, 
receiving its water from the nearby river. The buildings being old 
are rather dilapidated and would have to be rebuilt should the 
station be continued much longer, but it is understood that the com- 
pany intends to abandon it as soon as contemplated extensions at 
the Close station are completed. The Close station is well situated 
on the bank of the Tyne across the street from and nearly opposite 
the Forth Bank station. Both of these stations are practically in 
the heart of the city. 

The Close station, having been built about two years agq, is 
of modern design, brick and steel construction. The boiler room 
and engine houses are parallel with each other and can be readily 


extended. This station has no railroad siding, the coal being hauled 
direct from the colliery by carts, but there is a convenient boat 
landing on the" river, where the coal may also be received by barge 
and mechanically lifted by clam shell buckets. The boiler equip- 
ment consists of five Stirling boilers of about 600 H. P. capacity 
each, with automatic stokers, overhead hoppers and conveyors for 
coal and ashes ; and two additional boilers are being installed. The 
generating equipment consists of two twin D. C. Parsons turbo- 
generators of 1,500 K. W. each, with Parsons vacuo-augomentor 
condensers, and two 1,000 K. W. generators direct connected. The 
condensing water is pumped direct from the river. Generally speak- 
ing, this station is a well designed D. C. station and should generate 

The Newburn station, located at Lemington, near Newburn, 
about four miles to the west of the city, is of good construction, 
with modern parallel boiler and engine houses of steel and brick, 
and is situated on the river front, where ample condensing water 
is obtainable. The coal is hauled from the boat landing about 200 
yards distant, and dumped direct into overhead hoppers in the boiler 
room. The boiler equipment consists of three 200 H. P. Lancashire 
boilers with individual economizers, and the engine house contains 
two 410 and one 150 K. W. D. C. Parsons turbo-generators, which 
were originally located in the Forth Bank station. The territory 
covered by this plant is rather small and at present not very profita- 
ble, but supplies the need and maintains the company's rights and 
powers in the district. The District company is in a peculiar 
position in Newcastle. From the general appearance of the situa- 
tion, it seems that it will be absorbed either by the city or the 
Electric Supply company in a short time. In fact, from its method 
of operation and classification of accounts, it appears evident that 
its managers have had this subject before them for some time. 
For instance, it will be noted that depreciation charges have been 
small, probably owing to this fact or because its two recent gener- 
ating stations, being practically new, may have been considered by 
the company to show no depreciation. 

This company has a fine storage battery sub-station centrally 
located in a hired building back of the "Chronicle" office. It is 
new and of the Tudor type, equipped with a booster and a motor- 
generator for building up individual cells. 

London City. The sole main generating plant of the City 
of London Electric Lighting Company is located at Bankside and 
Love Lane, on the south side of the Thames, in Southwark. The 
site is an irregular piece of land a trifle over three acres in area, 
extending to the river front, and is occupied almost entirely with 
buildings. The station buildings are massive brick and steel struct- 
ures, of ample size for the units now installed. There are two 
main boiler rooms not connected with each other. The larger room 
contains 46 Babcock & Wilcox boilers, running from 700 to 900 
H. P. each, connected to three large brick chimneys two 13 feet 
diameter and one 16 feet diameter and all over 200 feet in height 


and equipped with induced draught apparatus. The second boiler 
house contains twelve dry-back marine boilers of about 500 H. P-. 
each, which are connected with induced draught equipment to the 
south stack. The boilers have a total capacity of 41,000 rated H. P. 
Coal is delivered by barge at the river front and elevated by 
Gantry cranes, from which it is distributed by conveyors to hoppers 
above the boilers. The coal is then fed to the boilers direct by 
chutes to the automatic chain grate stokers. The original engine 
room is built adjacent to and parallel with the large boiler house. 
It contains eight 500 K. W., 2,300 volt Brush alternating current 
units, and eight 700 K. W. Willans & Eobinson direct current units. 
In addition, there are four Willans & Eobinson engines of 350 
H. P. each, direct connected to two Ferranti A. C. generators of 
350 K. W. each and in the north end of the same house are two 
Ferranti engines of 3,000 H. P. each, direct connected to A. C. 
generators of 1,500 K. W. each. The units just stated constituted 
the original generating equipment of this plant, but it has been 
added to by extending the engine room to the south and building an 
additional engine room to the west end on the other side of the 
second boiler house. The equipment of these additional generating 
rooms consists of three Allis engines of 2,500 H. P. each, direct 
connected to three 1,000 K. W. direct-current generators; also 
four Musgrove engines direct connected to four 2,000 K. W. direct- 
current generators. The total equipment equals 42,900 H. P. in 
engines operating direct-current generators to the capacity of 11,000 
K. W. and alternating-current generators to the capacity of 10,900 
K. W. The switchboard of the first generator house is mounted 
on an elevated gallery built along the east wall. The new units 
have a separate switchboard, equipment supported on an overhead 
gallery at the side of the generators. This plant is equipped to 
operate condensing and it has been necessary to install an auto- 
matic water screening device designed by the engineer to prevent 
the condensers from becoming choked with foreign matter in the 
river water, which is taken from a sump built out into the Thames 
and operated by steam-driven centrifugal pumps. 

On this same property the company has erected two large well 
equipped workshops capable of handling practically all repairs 
of the plant, in addition to which some outside work is taken to 
keep it busy at all times. The offices of the general manager and 
engineering staff are located here, as well as the experimental 
department, and a fairly well equipped electrical and physical lab- 
oratory. There are many smaller buildings erected adjacent to 
the main generating house containing a carpenter shop and various 
store rooms. On the south front, on Sumner street, the company 
was compelled to erect seven three-story brick cottages for em- 

The company has numerous small sub-stations in the City of 
London, some of which are under the thoroughfares and others 
on private property. At the present time many of these have been 
changed over to supply direct-current with balancers to equalize 


the current on the three-wire system. There are also, in some of 
these sub-stations, motor generators to convert the alternating 
current to direct-current, which is fed in on the low-pressure 
three-wire system. The main station also has several of these motor 
generators that at present can be used to convert alternating 
current to direct current and direct current to alternating current 
as it is necessary to care for the prevailing load. 

The load conditions of this plant are rather peculiar, as a very 
dark day or a dark storm in the afternoon causes an enormous 
demand for lighting in the City of London, at times increasing 
the load by a jump of 10,000 kilowatts. This unusual condition 
during certain seasons of the year makes it necessary for the com- 
pany to carry from 5,000 to 10,000 II. P. in boilers continually 
under fire without being actually in use. 

Westminster. There are at present three electric generating 
stations of the Westminster Company, one called the Millbank 
station, which is on the Grosvenor road and the Thames river, 
south of the Houses of Parliament ; the second is on Eccleston place, 
west of the Victoria Railway station, and the third is on Davies 
street, near the intersection of Oxford and New Bond streets. In 
addition to these three generating stations, the company buys cur- 
rent from the Grove Eoad station of the Central Electric Supply 
Company, Ltd., which is a large, modern, high-tension, alternating- 
current station, situated near St. John's Wood road. The three 
generating stations are in a sense also sub-stations, as they contain 
motor-generators, transforming a 6,000 volt alternating current 
from the Grove Road station to 400 and 200 volt direct current. 
On Duke street the company has a large sub-station that is used 
for transforming A. C. to D. C. current only. 

The Millbank station contains seventeen units, with a total 
capacity of 2,546 K. W. These units are all of the direct-current 
400-volt type, operating on the three-wire system, and are com- 
posed of eight III Willans & Robinson engines direct connected to 
bi-polar 225 K. W. generators; five II 112 K. W. units of the same 
type, and four G. G. 44 K. W. units of the same type. These en- 
gines receive steam from eleven hand-fired B. & W. boilers, with 
economizers for about one-half their capacity, and a motor-driven 
induced-draught fan equipment. The station receives its coal by 
barge from the Thames, and has an overhead storage bin over the 
boilers. Over the forward part of the engine room and boiler 
room is a sub-station that contains the motor-generators and over 
the back part of the boiler and engine rooms is a storage battery. 
The buildings are of substantial brick construction, with heavy steel 
girders supporting the second floors, which support motor-genera- 
tors and battery. The equipment is composed of small units, but 
being run condensing, is fairly economical. The property on which 
this station is built has been purchased from the company by the 
London County Council, and the station will probably be abandoned 
in the course of the next two or three years, another site having 
been given to the company in exchange for this property. The 


station supplies direct current at 200 volts on each side of the 
three-wire system, with the exception of two units that supply the 
lighting for the Houses of Parliament at 110 volts. 

The Eccleston plant has a total capacity of 2,673 K. W. in 16 
units. There are nine III 220 K. W. each, five II 120 K. W. each, 
and two G. G. 44 K. W. each; all of the direct-connected Willans- 
Robinson type. There are two boiler houses; one contains twelve 
dry-back 200 H. P. boilers with return smoke tubes, and the other 
house contains eight 300 H. P. boilers of the same type, all hand 
fired. Four economizers are connected to the first twelve boilers. 
The stack is 10 x 175 feet, supplying natural draught for the twelve 
boilers, but an auxiliary induced-draught fan and iron chimney 
is provided for the eight large boilers. All coal is carted to the 
station, which has a storage capacity of about 180 tons. This 
station is run partial condensing to the extent of about 1,300 
K. W., for which purpose water is received and delivered through 
two 16-inch pipes running to and from the Thames over a distance 
of about one-third of a mile, hence its efficiency is naturally cur- 
tailed to some extent. The buildings are of very substantial 
brick construction, Avith heavy plate steel girders spanning the 
engine and 4 boiler rooms. Those girders support a sub-station con- 
taining four 225 K. W. motor-generators that receive high-tension 
alternating current from the Grove Road station and transform 
it to 400 volt direct current for the general distribution system. 
There is also on the second floor a storage battery of 210 cells of 
600 ampere hour capacity. A motor room has also been erected 
over the engine room, and a new transforming room is being built 
adjacent to the new boiler house. The piece of property adjacent 
to the station contains some brick sheds, one of which is rented 
as a school and the others are used for storage for the mains and 
distribution department. 

Davies Street station. This station has a total capacity of 
2,786 K. W. and 16 units, as follows : ten III 225 K. W. each, four 
II 112 K. W. each and two G. G. 44 K. W. each. The boiler rooms 
are in two sections, one on each side and parallel to the generating 
room. There are ten boilers, dry-back, smoke-flue type, of 5,000 
pounds water evaporation capacity each in the first room; in the 
second room are six dry-back, smoke-flue boilers of 6,000 pounds 
capacity each, and two B. & W.'s of 5,000 pounds capacity each. 
This station is not equipped with economizers and is run entirely 
without condensers. There are four exhaust steam water heaters 
and one stack, 11 feet diameter by about 150 feet high, for natural 
draught. All coal is carted, and the station has a storage capacity 
of about 300 tons. The building has five stories above the base- 
ment on Davies street and four stories on the side street. It is 
quite ornamental and very substantial. The two upper stories are 
used as flats for dwelling purposes. Over the first boiler room 
is a sub-station containing four 500 K. W. motor-generators. There 
is also in addition one 1,000 K. W. motor-generator in the engine 
room. For low tension generation and distribution, these three 


stations are well located, but in the last two instances, being de- 
void of facilities for the delivery of coal other than by carts and, 
in one case obliged to operate non-condensing, their efficiency, 
therefore, though favorable to their type at the period of their 
advent, is under that of modern practice. All of these stations will 
serve well as sub-stations, for which purpose they may be solely 
used in time. 

The Duke street sub-station is located about 200 yards from 
the Davies street station, on Duke street, just south of Oxford 
street. This station occupies a piece of property about 200 feet 
long and 75 feet wide. It is built on a most elaborate plan and 
in accordance with conditional stipulations placed upon the com- 
pany by the Duke of Westminster. Provision has been made on 
the roof of the structure for a public garden and recreation ground. 
The general construction is of elaborate stone work, with massive 
ornamental entrances at both ends; the top with roof garden rises 
to a height of twelve feet above the surrounding streets. The sub- 
station is formed by an excavation to a depth of some twenty feet, 
which makes the building about 200 feet long, 60 feet wide and 
25 feet high. The interior is beautifully finished with brick tiling 
and is large enough to contain a capacity approximating 25,000 
K. W. in motor-generators. At present half the building has been 
finished and provides space for from twelve to fifteen thousand 
K. W. capacity. 

St. James. The St. James company has two generating sta- 
tions, the main station at Carnaby street, Golden square, and the 
old station at Masons yard, near St. James square, which was 
the original station, but at present is only manufacturing period- 
ically and operated in emergency, and is now used as a regular 

The Carnaby street station is located in the northern-central 
part of the district of supply on Carnaby street, about two blocks 
south of Oxford street. It is a very substantially constructed 
building and has three stories containing, in addition to the 
boilers and generating units, a sub-station, a small battery room, 
meter repair and testing shops, as well as the general executive 
and commercial offices of the company. The boiler house equip- 
ment consists of fourteen dry-back marine boilers of 250 H. P. 
each, six dry-back marine boilers of 500 H. P. each, one B. & W. 
water-tube boiler of 620 H. P., and four locomotive boilers of 400 
H. P. each. In addition there are three elevated thermal storage 
boilers containing hot water of steam temperature for increasing 
the capacity of the boilers at time of maximum load. The engines 
and generators are as follows : Two Willans & Eobinson 1,200 H. P. 
each, direct connected to generators of 780 K. W. capacity; two 
Willans & Robinson 810 H. P. each, direct connected to generators 
of 520 K. W. each; four Willans & Robinson 360 H. P. each, direct 
connected to generators of 260 K. W. each; four Willans & Robin- 
son 300 H. P. each, direct connected to generators of 180 K. W. 
each ; one Willans & Robinson 200 H. P. each, direct connected to 
Vol. III. 21. 


generators of 120 K. W. each. The above generators are all of the 
direct-current type and feed directly into the low-pressure, three- 
wire distribution system. There is also a small storage battery 
of 180 ampere hours capacity. The miscellaneous equipment con- 
sists of a water softening plant with storage tank, a deep well and 
pump and four Berryman feed water heaters. The sub-station 
equipment in this station consists of: One direct-coupled, 6,600 
volt to 240 volt motor-generator, of 520 K. W. capacity; three 
direct-coupled motor-generators of the same voltage as above, f 
260 K. W. capacity; two rotary converters of 40 K. W. capacity, 
and one rotary converter of 15 K. W. capacity. The sub-station 
converts the high-tension current received from the Grove road 
station, of the Central London Company, and distributes to the 
general direct current low-pressure distribution system. There are 
two stacks, each 8 feet in diameter by 200 feet high. This station, 
being isolated from railway and water supply, is non-condensing, 
and necessarily receives all coal by carts, which is dumped in front 
of the boilers, which are hand fired. The area of supply of this 
company is the Parish of St. James, which contains no railway or 
canal for transportation purposes and no body of water for con- 
densing purposes. Consequently in view of these deficiencies, 
though it is well located for low tension generation and distribu- 
tion, it cannot operate with such high efficiency as it might if site 
conditions were more favorable to economic production. 

The Mason yard station is in a substantial brick building IP 
the lower part of which is the power station, which extends out 
under the sidewalks, covering a considerably greater area under- 
ground than the building proper. The equipment consists of: 
Two Willans & Eobinson engines of 450 H. P., direct connected 
to 310 K. W. generators; one Willans & Eobinson engine of 360 
H. P., direct connected to 260 K. W. generators, and one Willans 
& Eobinson engine of 300 H. P., direct connected to 180 K. W. 
generators. These generators are of direct-current type and feed 
into the general low-pressure, three-wire system. Steam is supplied 
from five locomotive boilers of 400 H. P. each, and one Babcock 
& Wilcox water-tube boiler of 300 H. P. The station is equipped 
with one stack, induced draught and Berryman feed water heaters. 
All coal and ashes are necessarily carted. As this plant is only run 
in cases of emergency and to carry over the peak load during the 
heavy load season, it is the intention of the company to shut it 
down as a generating station as soon as enough power is received 
from the Grove road station to displace it. It is admirably sit- 
uated for a sub-station, which will eventually be its sole purpose. 

The converting equipment now consists of two direct-coupled 
motor-generators of 520 K. W. capacity each, transforming A. C. 
current of 6,600 volts to 240 D. C. There is also one balancer of 
26 K. W. 

Central. The Central company's generating station, called 
the Grove road station, is on Grove road, near St. John's Wood. 
The property is about 880 feet long and an average depth of 306 


feet, and covers an area of six acres, and has a railroad siding 
connecting with the Great Central Bailway. The general plan for 
the development of this plant is for the erection of the station in 
the form of six sections or units, one of which has now been erected 
The engine and boiler house equipment of this unit, though in 
operation, is not entirely complete. The foundation, however, foir 
the stack of the second unit is in place. 

The purpose of this station is to generate electricity of the alter- 
nating, three-phase, 6,600 volts system, and transmit to the St. 
James and the Westminster companies. The equipment at the 
time of the examination consisted of ten Climax vertical boilers 
of 1,200 H. P. each, capable of evaporating 40,000 pounds of 
water per hour each. These are arranged in three lines in the 
boiler house, which is about 110 feet square (there is room in this 
boiler house for four more Climax boilers of the same type). The 
coal for these boilers is received from the railway direct, being 
dumped in a hopper and elevated by means of three sets of con- 
veyors into two overhead bunkers, having a capacity of 700 tons, from 
which the coal is fed to the boilers by means of chutes. The 
generator house is about 120 feet by 105 feet, of rather expensive 
construction and rising to a height of about 75 feet. The generating 
equipment in this building consists of three Willans & Eobinson's 
3-V engines of about 1,200 H. P. each, direct connected to genera- 
tors of 780 K. W. capacity each. There are three 3-X engines of 
2,400 H. P. each, direct connected to three Oerlikon generators, 
and one Bellis & Morgan engine of 2,500 H. P., direct connected 
to one 1,560 K. W. generator of the A. E. G-. manufacture. In 
addition, there are three small units of the Willans & Robinson 
2-1 type, 150 K. W. each, two of them being direct-current, 200 
volts, and one three-phase alternating current. The high-tension 
switchboard is erected on an elevated gallery overlooking the entire 

There is installed in this plant four Berryman feed water 
heaters, six Duplex Weir pumps for boiler feed purposes and a 
water-purifying plant. In the centre of the boiler house is a very 
elaborate stack, 260 feet high by 18 feet. An extension is erected 
adjacent to the boiler house about 130 feet long and 25 feet wide, 
which is used as a general repair shop and stores. On the south- 
side of the property is the Kegent's Canal, which enables the present 
installation to run condensing, but which will have to be reinforced 
later by the addition of cooling towers. The design of this building 
is quite elaborate and presents an ornamental front on the North 
Bank side, which is occasioned by its situation in a section of the 
city that contains residential and well constructed properties. 

H 3. Give brief description of distribution systems. 

The electric distribution system of each undertaking examine^ 
is laid underground, which is in compliance with orders of the 
Board of Trade. 


Manchester. This plant has probably the most expensive and 
complicated direct-current low-tension distribution system of any 
examined. The centre of the city, being almost entirely served by 
the five-wire and three-wire systems, with the exception of a small 
section of the two-wire and four-wire systems, but all recent instal- 
lations are being made by extending the three-wire system to the 
abolishment of the two, four and five-wire systems. The mains 
are all laid on the Callender solid system, being fed by feeders laid 
partly solid and partly drawn in fibre conduit. 

The mains leading from the Stuart street station are first 
carried through a tunnel about three-fourths of a mile long, from 
which they branch out to the general system. The high-tension 
feeders from this station are all armored cables laid solid in the 
earth, and run to the various sub-stations where the high-tension 
alternating current is converted to the low-tension direct current. 

The distribution system still contains some copper strip, but 
it is being rapidly displaced, as it has been the cause of considerable 
trouble through short circuiting. 

There are now in service 9,029 consumers' meters, all of the 
ampere-hour type, which are tested and repaired at the Polygon 
sub-station meter repair shop. 

Liverpool. The distributing mains are almost entirely of the 
Callender solid system, being laid in iron troughs filled with pitch. 
Some of the high-tension cables, however, were armored and laid 

Lister Drive station, being about two miles from the centre of 
the city, necessitates a sectional area of about eighteen square inches 
of copper conductors being run to convey the low-pressure direct- 
current to the heart of the city. All of the high tension, alter- 
nating current produced by the undertaking is generated at the 
Lister Drive station. 

The several small steam driven stations generate low-tension 
direct current, which is delivered entirely by means of the three- 
wire feeders connected into the general distribution system of the 

There are about 7,000 consumer's ampere-hour meters in- 
stalled, principally of the Chamberlain & Hookam and the Ferranti 
types, all of which are tested and maintained at the Fairclough 
sub-station shops. 

Glasgow. The general distribution system consists of low- 
tension cables of the " triple concentric " type, most of them being 
lead sheathed and laid solid in the earth. The service taps from 
these conductors have special connections and fittings that were 
designed by the local management, being quite complicated and 
expensive, and we believe if the system was to be relaid that the 
individual solid conductor would be favored. The high-tension 
cables are feeders leading from the generating station to the sub- 
stations and are laid principally in earthenware ducts, although 
there are a few cables, both high tension and low tension, that are 
laid in wooden troughs filled with pitch. 


Pressure wires from the distant supply point .of each feeder 
lead back to recording instruments in the station, thus automati- 
cally indicating in the station a record of the pressure at the ex- 
tremity of each feeder. 

The consumers meters, of which there are about 16,000 in 
service, all record ampere hours instead of watt hours, and con- 
sist alomst entirely of the Chamberlain & Hookam, and Ferranti 
types, with some Wright maximum demand meters still in service. 

St. Pancras. The system is the three-wire 440 and 220 volts 
low-tension, direct-current type, and consists almost entirely of 
lead-covered armored cable laid direct in the ground and covered 
with boards. There are still some three- wire mains of 220 and 110 
volts in use, which consist of the old style copper strip, laid in the 
early '90's, but they are being rapidly displaced. The high-tension 
cables connecting the main generating station with the sub-sta- 
tions are laid solid in wooden troughs filled with pitch, and con- 
sist principally of three-core cables. 

There are now 2,763 consumers meters in use, mostly of the 
Chamberlain & Hookam ampere-hour type, which are repaired, 
tested and handled generally from a meter repair shop at the rear 
of the Pratt Street office. 

Newcastle Supply. This company's high tension distribu- 
tion system consists of cables from Neptune Bank to Newcastle, laid 
in clay ducts on the drawn-in system. This system has 133 man- 
holes, which are about seven feet long, four feet wide and six to ten 
feet deep. All the high tension lines from the Carville station and 
from the Priestman Power station are armored and laid solid in 
iron, wood and earthen troughs, filled with pitch. The low-ten- 
sion, direct-current, three-wire system consists of both the solid 
three-cored cables and solid single cables laid in troughs filled with 

There are 3,800 meters of both the ampere-hour type and the 
kilo-watt hour type. These meters are tested, repaired and handled 
in the meter testing shop at the Pandon Dene sub-station. 

Newcastle District. The distribution work is composed of 
two systems of mains. Those conveying alternating curreni are 
of the Silvertown make laid on the drawn in system; while those 
conve}dng low-tension direct current are principally of the Silver- 
town type with some Callender make, laid on the solid system in 
cast-iron troughs filled with pitch. The former carry alternating 
current at 1,000 volts, while the latter are for the 480-240 volt 
direct-current three-wire system. All extensions are being made 
on the direct current system, and the alternating current system 
will be eventually abandoned for commercial service. This com- 
pany has about 1,240 small manholes, where the service connections 
are made. These are laid generally under the footpaths (side- 

There are 1,540 consumer's meters of the ampere-hour type, 
which are tested and repaired at the Close power station shops. 


London City. The distribution system consists of both 
alternating high-tensiofc and three-wire low-tension systems. The 
major portion of the work for the alternating system is composed 
of cables drawn in wrought iron pipe and bitumen casing, most 
of the cables being concentric and lead-covered with paper insula- 
tion, requiring connections of a special and rather complicated 
form for making branch joints. The more recent direct-current 
system consists principally of a special Callender type of cable, laid 
in iron troughs and filled with bitumen. There are about 6,013 
small man-holes or hand holes, about two feet six inches square and 
deep, from which the service connections are made. There are 
also junction boxes at the corner of each street, enabling the sec- 
tions to be registered for the equalization of the pressure. 

The distribution system has been particularly sub-divided so 
that the smallest possible section may be isolated as occasion re- 
quires without inconveniencing a great part of the main system. 
Pilot pressure wires indicate at the station the terminal pressures 
of all the feeders. 

There are about 14,400 consumer's meters in use of various 
types, consisting principally of the Thomson watt hour type, with 
some Hookam, Ferranti and other makes of both ampere hour and 
watt hour types; all handled, repaired and tested in the shops at 
the main generating station, Bankside, Southwark. 

Westminster. The distribution system consists principally of 
armored insulated cables drawn in wrought iron and cast iron pipe, 
all laid in casings filled with bitumen. There is still, however, in 
use some bare copper strips on insulators, but the recent work con- 
sists of three-cored cables drawn in bitumen fibre ducts. The high- 
tension cables from the Central Electric Supply Company's power 
station connecting with the sub-stations are of the three-cored 
lead sheathed, steel armored type and drawn into iron pipe. 

This company has about 9,524 consumer's meters installed, 
principally of the ampere hour type, and of various makes, which 
are handled and repaired in the company's shops at Eccleston 

St. James. Most of the low tension system is lead-sheathed, 
steel-armored cable, laid direct in the ground ; but some of the old 
system is still in use, consisting of copper strip supported on in- 
sulators in cast iron troughs. There are also small quantities of 
cable insulated with vulcanized covering drawn in bitumen casing, 
and of lead-covered cable drawn in earthen ware ducts. The ser- 
vices are all lead sheathed, steel armored cables laid in the ground. 
All of the low tension mains are single cored cables. The high 
tension cables from the Central Electric Supply Company's power 
station connecting with the sub-stations are of the three-cored lead- 
sheathed type, steel-armored type drawn into iron pipe. 

There are 3,652 consumer's meters, principally of the Ferranti 
and the Hookam ampere-hour types, which are handled, repaired 
and tested in the meter repair shop at the Carnaby Street station. 


Central. This company delivers only high tension alternating 
current in bulk from its generating station at Grove Eoad to the 
sub-stations of the (3t. James and Westminster companies. All of 
which current is conveyed by three-cored, lead-sheathed, steel- 
armored cables drawn in iron pipe. 

H 4. Summarize methods of supplying current. (See also H 
2 and H 64.) 

Manchester. This undertaking furnishes direct current ex- 
clusively for commercial lighting, power service and about 94 street 
arc lamps which is distributed by the three and five-wire systems, 
with some small sections of two and four-wire systems. The five- 
wire system supplies current at 440, 2.20 and 110 volts. Alternat- 
ing current is also generated at 6,600 volts for transmission to sub- 
stations where it is converted into both direct current for the three- 
wire commercial s} r stem and into direct current at 500 volts for the 
operation of the city's entire tramway department. 

Liverpool. Electricity is supplied by the city for commercial 
lighting, power purposes and about 193 street arc. lamps, in addi- 
tion to all of the current used by the city's tramway undertaking. 
Direct current of 480 and 240 volts by the three-wire system is 
supplied exclusively to consumers. Alternating current at high 
tension 6,600 volts is generated for purposes of transmission to 
the sub-stations, where it is converted into direct current of the 
above voltage for commercial purposes, and also to 500 volts direct 
current for street railway purposes. 

Glasgow. The city supplies electricity for commercial light- 
ing, power purposes and about 827 street arc lamps. Consumers 
are supplied entirely with direct current by the three-wire system, 
at 480 and 240 volts. High tension alternating current of 6,500 
volts is generated at the main stations and delivered to sub-stations, 
where it is transformed into direct current for commercial service. 

St. Pancras. This borough supplies electric service by the 
three-wire, direct-current system for commercial lighting, power 
and 792 street arc lamps at 440 and 220 volts. Alternating current is 
generated at 5,200 volts, transmitted to sub-stations and converted 
to above system. 

Newcastle Supply. This company generates three-phase 
alternating current at 6,000 volts and 40 cycle, exclusively, but dis- 
tributes for commercial and power purposes both alternating and 
direct current. The alternating current being converted at sub- 
stations or on the consumers' property, and the direct current is 
generated by motor-generators driven by alternating current at sub- 
stations, whence it is distributed by three-wire direct current system 
at 500 and 250 volts. This company also supplies current for rail- 
way purposes to the Northeastern Eailway, which is converted into 
direct current at 600 volts for this service. It supplies no street 
lighting, with the exception of eight arc lamps in Walker. 


Newcastle District. This company has two systems of sup- 
ply at present. The original, of which there is considerable in use, 
distributes alternating current at 1,000 volts to sub-stations and to 
consumers' premises, where it is reduced by static transformers to 
100 volts. The second is a three-wire system supplying direct cur- 
rent at 480 and 240 volts. Commercial lighting and power only 
is supplied by this company, there being no street lamps nor tram- 
ways operated by it. 

London City. Electricity is supplied by this company for 
commercial lighting, power and under municipal contract for 502 
street arc lamps. The old system supplies high tension alternating 
current to the consumer, which is transformed locally to various 
voltages. Direct current by the three-wire system is furnished for 
general consumption at 450 and 225 volts, and is generated at sub- 
stations which receive high tension alternating current at 2,300 
volts direct from the main generating station. 

Westminster. This company supplies electricity by the three- 
wire system at 400 and 200 volts direct current for commercial 
lighting, power and under municipal contract for 956 street arc 
lamps. In addition it has a few units which generate direct cur- 
rent at 110 volts supplying the Houses of Parliament. Like the St. 
James company, aside from the current generated at its main sta- 
tions, it purchases a large portion of high tension alternating cur- 
rent from the Central Electric Company (of which it is a part 
owner), which is transformed at its sub-stations into direct cur- 
rent for commercial distribution. 

St. James. This company exclusively supplies direct current 
by the three-wire system at 240 and 120 volts for commercial light- 
ing, power and under municipal contract for 66 street lamps. Like 
the Westminster Company, aside from the current generated at 
its main stations, it purchases a large portion of high tension 
alternating current from the Central Electric Company (of which 
it is a part owner), which is transformed at its sub-stations into 
direct current for commercial distribution. 

Central. High tension three-phase alternating current at 
6,000 volts is exclusively supplied by this company in bulk to the 
St. James and Westminster companies (to which it jointly be- 
longs), and is reduced at the sub-station of these companies to low 
tension direct current for general distribution. 

H 5. Steam plant. 

Steam Engines. Boilers. 

Towns. 2V o. Total H.P. No. Total H.P. 

Manchester 22 57,000 69 55,100 

Liverpool 83 42,224 88 36,000 

Glasgow 18 16,250 25 17,200 

St. Pancras 21 8,367 21 5,167 

Newcastle Supply 12 23,055 18 14,000 

Newcastle District .; 16 11,190 18 6,400 

London City 29 42,900 58 41,000 

Westminster 49 13,240 53 13,500 

St. James 17 8,420 31 11,030 

Central 10 13,600 10 12,000 



H 6. Dynamos. 

Towns. No. 

Manchester 14 

Liverpool 76 


Glasgow 19 

St. Pancras 19 


Newcastle Supply 3 

Newcastle District 7 


London City 7 


Westminster 49 

St. James 37 

Central 2 


All were direct connected. The A.C. dynamos were 3-phase. 




Total K.W. 




















120 & 240 












































v. O 3) ' 

1 ; 

>2: TH TH 

?S w. ^i, ^"^ 

^^ *M 1C) ^H 

o b-o 

O J^l IO 
LO * TH 

~ S ~* "$ O" " 

o i o as b- TH 

^ | T-HTHrH r-t 


* T 

"3 a 1J_ 
e cT 
o 8 rt< 

t- TH 

IT N; io & 



S TH Tj^CO" 

s * ro !N 


^ M b- O 00 

-H b- O O 

o ia co cc co 

S |2 TP o o o 

^"^JOOCOTPb- O5 

S 5 3s o" *" co" 06" 
\s o 5a b- o TH -<ti 









1=1 . 


1 a a 

: cs 





S Q} CV 





H 8. Meters, services and consumers. 

Manchester . . 

of Streets 

No. of 


No. of 


No. of 

Liverpool .... 

. (?) 



St. Pancras . . . 

. m 

Newcastle Supply (V) 
Newcastle Dist . (?) 
London City 77 
Westminster . 77 

St. James. . . . 


Central . 

. Note 1 

No. of 





Note 2 




179 45,848 


H 9. Were all services metered? 

Yes, except at Glasgow, where about 
not metered. 

of the services were 

H 10. Lamps connected. 




St. Pancras 

Newcastle Supply . 
Newcastle District 

London City 


St. James 

Central .... 

No. of 

Arc Lamps, 

Public Lighting. 






1 502 



No. Of Arc 
Lamps in Com- 
mercial Use. 


H 11. Current generated and bought, in units (k. w. h.). 

Delivered at 

Manchester 47,170,721 

Liverpool (?) 

Glasgow 20,340,556 

St. Pancras 8,025,553 

Newcastle Supply 40,972,807 

Newcastle District 6,513,904 

London City 23,121,642 

Westminster .' (?) 

St. James 6,654,217 

Central 7,102,960 










1 Only trunk mains and the stations of the two distributing com- 
panies supplied. 

- All of the current is sold to the Westminster and St. James com- 



H 12. Consumption of current in units. 

Used at 

Works and 

Manchester 3,292,842 

Liverpool (?) 

Glasgow 1,025,516 

St. Pancras 378,337 

Newcastle Supply 3,865,308 

Newcastle District 336,089 

London City 700,451 

Westminster 178,692 

St. James 162,037 

Central . Nominal. 

Sold. Unaccounted. 

for. 1 

33,686,710 10,191,169 
31,452,323 (?) 
18.248.468 2,310,104 

6,655,774 991,442 
30,378,852 6,728,647 

5,183,834 1,193,981 
20,957,648 1,463,543 



No current \vas supplied free in any instance. 








H 13. Analysis of current sold. 

Lighting. 2 

Manchester 81,032 

Liverpool 283,479 

Glasgow 1,525,505 

St. Pancras 1,607,800 

Newcastle Supply 155,703 

Newcastle District 

London City 1,355,384 

Westminster 1,979,962 

St. James 148,549 

Central . . . Note 3 

Private Commercial Street 
Lighting. Power. Railways. 
9,939,381 4,739,992 18,926,305 
2,337,036 20,139,621 


2,551,713 20,570,750 s 

1,878,936 3,304,898 

Note 5 


Note 5 



Note 8 



H 14. Maximum and minimum output, in units. 

Daily Capacity 

of Plant. Maximum Minimum 

(Rated Capacity Day's Output. Day's Output. 

of Generators.) 

Manchester 32,800 

Liverpool 35,670 

Glasgow 10,460 

St. Pancras 6,250 

Newcastle Supply 17,450 

Newcastle District 8,370 

London City 21,900 

Westminster 7,995 

St. James 5,540 

Central 9.030 














1 Due to loss in transformation, drop n lines, meters, etc. 

2 Current used for lighting public buildings and offices is included 
in private lighting. 

3 Of this amount 11,411,884 units were sold to the North Eastern 
Railway Company. 

* This was the amount of current sold in bulk to other companies. 
Possibly some of it may have been resold for public lighting and street 
railway traction, but it was impossible to ascertain how it was divided. 

6 Included with private lighting. 

' The output of the Central company was taken by the Westminster 
and St. James companies, and appears in the items given for these com- 
panies, but, of course, its use is not separately reported by either. 





H 17. Are consumers' meters removed and tested at regular inter- 
vals? How often? 

Manchester. Generally tested every 12 months to see if meter 
will start with one lamp burning. 

Liverpool. Not regularly ; only when doubtful. 

Glasgow. Regularly every four years ; oftener if there be any 
doubt as to accuracy. 

St. Pancras. A man regularly conducts a rough test on ton- 
Burner's premises; if the meter is suspected, it is brought in and 
tested. Circuit is made in about five months. 

Newcastle Supply. Lighting meters once a year ; large power 
meters twice a year. 

Newcastle District. Yes, on the average every three yeais. 

London City. Annually; generally in situ. Meter depart- 
ment reports on all meters once a year. 

Westminster. Yes, at intervals of three years. 

St. James. Yes. Time of inspection depends upon clast of 
meter. Clock meters are very frequently tested. 

Central. The Central Company does not distribute to on- 
sumers. Under all inquiries relative to distribution, it is omitted 
in the following pages therefore. 

H 18. If a consumer believes that the meter is fast, how maj h 
have it tested? 

Manchester. By payment of a fee of 10s. 6d., which is re- 
turned if meter is found to be faulty. 

Liverpool. Ditto; fee is 10s. 

Glasgow. By application to the electricity department. 

St. Pancras. By the London County Council. The electrical 
department tests and stamps all meters. 

Newcastle Supply, District. By application to company. If 
consumer is not satisfied, he may call upon city testing department. 
If meter is wrong, company pays ; if right, consumer pays. 

London City, Westminster, St. James. By applying to com- 
pany or to officials of London County Council, who decide. Con- 
sumer pays testing charge if meter is correct; company pays and re- 
bates overcharge if meter is fast. 

H 19. Are there records of proofs of meters as removed? 

Manchester. Where meters are removed for testing, a record 
is kept of the results of such tests. 

Liverpool. All test records are kept in books for such pur- 

Glasgow. Either a check meter or a recording ampere meter 
is placed in circuit with the permanent meter, and the record so 
obtained gives the result. 


St. Pancras. Records of all tests are kept in books, and in a 
very complete card system. 

Newcastle Supply. On cards and in books; very complete 
information. Records show course and listing of each individual 

Newcastle District. Records of tests are kept in books. 

London City. Certificate of London County Council is filed. 
Tests of every meter as removed are recorded. 

Westminster. Yes, in books. 

St. James. Book of tests and files of London County Council 
certificates are kept. Reports are made fortnightly to directors. 

H 20. What means are being taken to extend use of electricity? 
(See also inquiry H 21.) 

Manchester. Energetic canvassing and following up of pro- 
spective consumers, hiring out of motors, radiators, etc. A show 
room of appliances is provided, and consumers are instructed in the 
use of appliances if necessary. 

Liverpool. None other than low rate. Information is given 
to consumers desiring instructions. 

Glasgow. A canvasser is employed. Electrical contractors 
(60) naturally solicit business for their own interest, that is, to get 
house installation contracts. Instructions are given to consumers 
if desired. 

St. Pancras. A show room, canvassers, circulars and advertise- 
ments in two local papers. Canvassers instruct consumers in the 
use of appliances. 

Newcastle Supply. There are two special canvassing depart- 
ments, one dealing in power and one in lighting. These depart- 
ments have trained canvassers who are competent to deal with all 
problems, both commercial and engineering. The company also 
advertises by means of circular letters, monthly pamphlets and 
other devices issued by special advertising department. In many 
cases practical demonstrations are given. Motors, heating and 
cooking appliances are rented to consumers on easy terms either on 
hire system or hire-purchase system. Exhibitions are periodically 
held and any special appliance is shown under working conditions 
in the company's show room. 

Newcastle District. Canvassers, advertising in periodicals, 
stands at electrical exhibitions and circulars. There are no show 
rooms. Instructions are given to consumers if necessary. 

London City. Circulars and canvassers. No show rooms. 
Area includes factories and business places only. Hence men are 
seen at business places, and canvassers interview and make proposi- 
tions in person ; show rooms would not be visited, the engineer says. 
Instructions are given to consumers if necessary. 

Westminster. Canvassing and exhibitions. Instructions are 
given to consumers if necessary. 


St. James. Rather extensive staff of canvassers. One man 
visits non-burners; another technical man seeks motor business. 
At general office the use of appliances is explained. Inspectors also 
give instructions if desired. No show rooms. Pamphlets and bul- 
letins are issued. 

H 21. Are appliances carried in stock for sale or rent ? 

Manchester. Yes; motors, radiators, etc., for rent only. 

Liverpool. The department gives estimates and installs com- 
plete equipment for lighting or power service to be connected with 
its supply mains. A complete line of electrical supplies is carried 
in stock for this purpose. 

Glasgow. The department has power to raise money for the 
purchase of motors to rent to consumers, but this power has not 
been exercised. Private dealers in electrical appliances have taken 
this up. 

St. Pancras. No; fittings and appliances are kept at show 
rooms, but the department has no power to sell or supply. Attend- 
ants instruct persons how to operate, and urge purchase of local 
contractors. Department considers this a drawback. 

Newcastle Supply. Yes, for both purposes. 

Newcastle District. No ; but at the request of consumers ap- 
pliances are purchased and installed. 

London City. Yes; radiators, motors, lamps, etc. 

Westminster. No. 

St. James. Arc lamps generally; will order appliances. In- 
terior work referred to contractors. 

H 22. State fully the methods of testing current regulation and 
character of service. 

Manchester. Pressure wires or potential lines from 12 city 
feeding points are brought back to indicating volt meters in the 
central station which produce a constant record of the variations in 
potential, which are recorded in daily log during peak loads. 

Liverpool. By volt meters in the generating and sub-stations, 
which constantly indicate the pressure at feeding points. 

Glasgow. By recording instruments in main stations and sub- 
stations, which constantly show the volts and amperes at the point 
where each feeder taps the distribution system. 

St. Pancras. By recording instruments at generating stations 
and at Chief Engineer's office ; potential wires from all feeders, and 
in some cases from points in distribution system. 

Newcastle Supply. All feeders have special volt meters in 
station denoting the voltage at extreme end of feeders. Eecording 
volt meters are fixed periodically in certain consumers' premises. 

Newcastle District. On the direct current system volt meters 
are installed in the power stations, indicating the voltage at the ex- 
treme end of each feeder. 


London City. By recording voltage charts on bus bars at 
station and distribution points of feeders and some customers' ser- 
vices. Services are tested for grounds. 

Westminster. By recording volt meters on feeders. 

St. James. By recording volt meters on all feeders; also on 
potential wires from feeder terminals. 

H 23. Summarize results of such examinations. 

Manchester. The results are entered in a daily log. If the 
potential is low in any district, the voltage in that section is 
strengthened, and on entire system if necessary. 

Liverpool. They are read hourly and entered by an attendant 
in the log book. 

Glasgow. Eecord shows at a glance what the conditions are 
at all feeding points, and if not normal, the superintendent of 
mains is notified and such readjustments are made as may be neces- 
sary for proper operation. 

St. Pancras. Voltage is maintained generally in good shape. 
On two evenings voltage dropped nearly 30 volts owing to turbine 

Newcastle Supply. Said to be very good and that voltage is 
kept up to standard. The records seen confirm this. Balancing 
load was recorded daily at sub-stations, and load was equalized gen- 

Newcastle District. Voltage maintained; if low, strength- 

London City. Voltage said to be uniform. Charts seen were 

Westminster. The engineer says that no complaint has been 
made of irregular voltage for at least ten years. 

St. James. Voltage said to be constant by the manager. 
H 24. Were outages frequent ? 

Municipalities. No. 

Newcastle Supply, District. No. 

London City. Very few ; current never off mains ; failures of 
49 out of 2,264,000 lamp hours. 

Westminster, St. James. No. 

H 25. What system of inspection was used to see whether all 
lamps were burning ? 

Manchester. The few street lighting electric arc lamps in use 
were inspected by employees of the gas department, while attending 
to the gas street lighting. 

Liverpool. Patrol and police. 

Glasgow. Inspectors and trimmers who switch on lamps. 

St. Pancras. Trimmers visit all lamps once after circuit is on ; 
police report afterwards. Street lighting systems are arranged so 

Vol. III. 22. 


that every alternate street lamp is on the same circuit, thus making 
two circuits in every street. These alternate circuits are supplied 
from different generating stations, so that in case of failure of 
either station the streets would not be wholly dark. 

Newcastle Supply, District. Practically no street lamps. 

London City. Nightly inspection, as company is fined 5 shil- 
lings per lamp hour for outages. 

Westminster. Not stated. 

St. James. Two men on duty at night were detailed especially 
from outside staff. 

H 26. Was service supplied 24 hours of the day ? 
Yes, in every case. 

H 27. Did voltage fluctuate ? 

Manchester. No excessive fluctuations. 

Liverpool. Under 5 per cent; no charts. 

Glasgow. Four per cent, allowed. 

St. Pancras. Variation within permissible limits of Board of 
Trade regulations 5 per cent. 

Newcastle Supply. No excessive fluctuations. 

Newcastle District. Voltage within 5 per cent. 

London City. Very little; within 2 per cent., according to 

Westminster. No charts ; about 2 volts, according to engineer. 

St. James. No, according to engineer. 

H 28. Were any engineering tests or experiments being carried 

Manchester. Frequently. Engines were indicated ; steam con- 
sumption and efficiency tests made. 

Liverpool. Engine and efficiency tests frequently. 

Glasgow. Yes, on meters and instruments in laboratory and 
generating appliances in stations. 

St. Pancras. Nothing novel ; usual coal tests. 

Newcastle Supply. Always with a view to give the best pos- 
sible supply most efficiently. 

Newcastle District. Engines and turbines are tested fre- 

London City. Yes. 

Westminster. No. 

St. James. Frequent tests. 

H 29. Were there frequent complaints about interruption of ser- 

Manchester. Not within the last five years; previously there 
were because of bare conductors in ducts (see H 30). 


Liverpool, Glasgow, St. Pancras. No. 
Companies. No. 

H 30. Has the electric lighting supply ever been cut off from the 
city? Describe instances. 

Manchester. Prior to five years ago, the bare strip conductors 
in the ducts sagged together, causing short circuits, which cut out 
sections of the distribution system, but this has been remedied by 
eliminating these bare conductors and by replacing them with in- 
sulated conductors. 

Liverpool., Glasgow. No. 

St. Pancras. About eight years ago, the supply was inter- 
rupted for several days. The wires were all laid in one pipe and a 
general fusion took place. 

Newcastle Supply. No. 

Newcastle District. The continuous current was off once for 
a few hours in a certain district in November, 1904, at 5 A. M., 
owing to a gas explosion caused by a breakdown in a junction box. 

London City, Westminster, St. James. No, according to the 
engineers in charge. 


H 31. What factors have determined the extent and location of 
extensions ? 

Manchester. Probable demand chiefly. 

Liverpool, Glasgow. Applications from intending consumers. 

St. Pancras. Commercial returns; amount of revenue must 
be at least 20 per cent, of cost of carrying out work. Wherever 
mains are laid street arcs are installed. 

Newcastle Supply. Building of new estates outside of city 
limits ; the additional power being asked for from time to time. 

Newcastle District. Applications and commercial reasons. 

London City. Commercial demand, and statutory obliga- 

Westminster. Not stated. 

St. James. Commercial demands ; but all territory is covered. 

H 32. Is the built-up area well served, so that all citizens may 
use the service? 

Manchester. All main parts of city are served. 

Liverpool, St. Pancras. Yes. 

Glasgow. Apparently very thoroughly served. 

Newcastle Supply. Yes. City is divided with the "Dis- 
trict" Co. 

Newcastle District, London City, St. James. Yes. 
Westminster. Not stated. 


H 33. Has the policy in respect to extensions been liberal ? 

Manchester, Liverpool, St. Pancras. Apparently, yes. 

Glasgow. Yes, with reasonable prudence. 

Newcastle Supply, District, London City, St. James. Yes. 

Westminster. Not stated. 

H 34. Total length of extensions during past year. 

Manchester l 38,454 feet 

Liverpool (?) 

Glasgow 110,000 feet 

St. Pancras (?) 


Newcastle Supply 31,680 feet 

District (?) 

London City 21,504 feet 

Westminster 10,560 feet 

St. James (?) 

H 35. Have the citizens of any section petitioned for extension 
to their district within the last five years ? 

Manchester. Yes, and the city has taken over several provi- 
sional orders for outlying districts. Frequent petitions within 
city limits were generally granted. 

Liverpool. In the event of extension of mains to give an ap- 
plicant supply of electrical energy, the district is canvassed to see 
if the demand is likely to justify the cost of the extension; other- 
wise the applicant is required to sign a guarantee to take or pay for 
electrical energy equal to 20 per cent of the cost of such extension 
for two years. 

Glasgow. No. 

St. Pancras. Only in case of street arc lighting. Two dep- 
utations were received in the last two years. Had determined to 
do the work, but people were impatient. 

Newcastle Supply. No ; individual cases only. 

Newcastle District, London City, Westminster, St. James, 

H 36. As between several sections petitioning at one time, how 
were extensions determined, and in what order? 

Manchester. In order of demand and importance. 

Liverpool. According to probable requirements and import- 

Glasgow, St. Pancras. Have never had such a case to decide. 

Newcastle Supply, London City. No such case. 

Newcastle District, Westminster. Not stated. 

St. James. No such occasion. Would be supplied in order of 

1 Total laid was 78,687 feet, less 40,233 feet taken up. 


H 37. Were extensions made promptly when there was a demand ? 
Manchester, Liverpool, Glasgow. Yes. 

St. Pancras. As promptly as possible say 4 to 8 weeks. 
Hindrances due to delay on part of other official departments. 

Companies. Yes, according to officials, but it was necessary 
to get a permit to open streets. 

H 38. Was every applicant for service able to get it promptly? 

Manchester. So stated. 

Liverpool. See inquiry H 35. 

Glasgow. Yes. 

St. Pancras. Seasonably so; new services had to wait for ap- 
proval of committee. 

Companies. Yes, according to the engineer in charge. 

H 39. Has the necessity for passage of an ordinance ever caused 
delay in extending the service ? 

Manchester, Liverpool, Glasgow. No. 

St. Pancras. Had to wait approval of Council ; delay not over 
four to eight weeks. 

Companies. No, but have to get permit to open street. 

H 40. Has service been extended in advance of the demand in 
order to stimulate the growth of a district, or has it 
awaited demand? 

Manchester. Yes, sometimes two years ahead of demand. 

Liverpool. Generally awaited demand. 

Glasgow. Service never laid unless a certain revenue can be 
guaranteed for the first three years. 

St. Pancras. Demand for street lighting has necessitated that 
mains be installed ahead of commercial business. 

Newcastle Supply. Extended in advance of demand. 

Newcastle District. Sometimes extended ahead of demand, 
but generally practice is to await demand. 

London City. Inquiry does not apply to City of London. 

Westminster, St. James. Yes, according to engineers. 

H 41. Was the department free to use its judgment about exten- 
sions, or was an ordinance required authorizing the ex- 
tensions ? 

Manchester. When Parliamentary powers have been given, it 
is necessary to cover the area of supply as demand requires. 

Liverpool. No ordinance necessary; department free to use its 
own judgment. 

Glasgow. The committee and engineer decide the policy to 

St. Pancras. Ordinances authorizing work passed by Council. 


Newcastle Supply. Free to use its judgment in area of 

Newcastle District. Always makes extensions free and 
anxious to get business. No authority necessary where powers are 

London City, Westminster, St. James. Yes, free to use own 

H 42. May service be extended to suburban sections not within 
the city limits? State fully the conditions upon which 
this may be done. 

Manchester. Parliamentary powers must be obtained to ex- 
tend lines without city limits into adjacent areas demanding it, and 
several sections are now so supplied. 

Liverpool, Glasgow. Parliamentary authority must be ob- 

St. Pancras. Cannot go outside of borough limits. 

Newcastle Supply, District. Yes, by virtue of Acts of Par- 
liament certain outside territories may be supplied. 

London City, Westminster, St. James. No, only within pre- 
scribed limits. 

H 43. Was street work done by direct employment or contract? 

Manchester. Principally by the department's own staff. 

Liverpool. All by contract. 

Glasgow. Laying of mains by employees of department. 

St. Pancras. Both; nearly all by direct employment in late 

Newcastle Supply, Westminster. Both. 

Newcastle District. Direct employment except in one case. 

London City. Both; by far the greater part by direct em- 

St. James. Both; excavation by contract sometimes; other 
work direct. 

H 44. Was the work done by contract properly inspected ? 

Manchester, Liverpool. Yes, according to officials. 

Glasgow. None done by contract. 

St. Pancras. The engineer says no, judging from the work. 

Companies. Yes, according to the officials. 
H 45. Was the work performed in an efficient manner ? 

Manchester, Liverpool. Yes, apparently. 

Glasgow. Apparently so ; well done but expensive. 

St. Pancras. Some of the old contract work was poorly done. 

Companies. Yes, according to the officials. 


H 46. Was the street surface properly restored after openings 
were made ? 

Manchester, Liverpool. Yes, in accordance with street regu- 

Glasgow. Yes, by a separate department of the city, and the 
cost charged to electricity department. 

St. Pancras. Department restores temporarily ; survey depart- 
ment makes permanent repairs and charges electric department. 

Companies. Yes, temporarily by the company or its contract- 
ors and permanently by the local authorities. 
H 47. Was water used in puddling ditches ? 

No, not in any case. 
H 48. Were open trenches and obstructions properly guarded? 

Yes, in every instance. 
H 49. How were sunken trenches taken care of? 

The law requires that they shall be properly guarded until re- 
paired. In municipal plants the repairing was done by another 
department and the cost charged to the electric department. In the 
case of companies, the city did the repairing and charged the cost 
to the company. 

H 50. What has been the policy in regard to improving the con- 
dition of street service prior to street paving or repaving ? 

Manchester. Most underground work has been done ahead of 
street improvements if possible. 

Liverpool. Subject to agreement between departments; no 
regular work done ahead of improvements. 

Glasgow. The city engineer makes sure before a street is paved 
^whether the various departments of the city wish to lay pipes, 
"mains, etc. 

St. Pancras. Mains and services have been overhauled before 
paving if department had knowledge of any defects. 

Newcastle Supply. Paving is generally done before services 
are laid, but inspections and repairs are always made before a street 
is resurfaced or improved. 

Newcastle District. Mains are overhauled ahead of improve- 
ments if necessary. 

London City. If new mains or renewals are required, they 
are carried out when streets are being paved. 

Westminster. Policy has been to take advantage of street 
openings when possible, but not to delay work waiting for street im- 

St. James. Notice is given by local authorities, and advantage 
of this is taken to overhaul distribution system. 
H 51. Is there an up-to-date map showing the location and nature 
of all street mains and fixtures ? 

Yes, in each instance. 


H 52. Who decides where underground structures shall be located 
in the street? 

Manchester. The electrical engineer and highways depart- 

Liverpool. The electrical engineer. 
Glasgow. Electrical engineer and city engineer. 
St. Pancras. Engineer of electrical department acts accord- 
ing to certain rules laid down. 

Companies. Each company, subject to the approval of the 
local authority. 

H 53. Is a permit from a public authority required before street 

may be opened and for each opening ? 
Manchester, St. Pancras. No. 
Liverpool, Glasgow. Yes. 
Companies. Yes. 


H 54. Who placed the orders for materials, and who governed the 
placing of orders? 

Manchester. Chiefly let by yearly contract (engineer has lati- 
tude under 100) confirmed by electricity committee. 

Liverpool. The electrical engineer through his committee. 

Glasgow. Council. 

St. Pancras. Council committee with advice of engineer. 

Newcastle Supply. Purchasing and construction depart- 

Newcastle District. The engineer. 

London City. The chief engineer or manager and secretary. 

Westminster. St. James. General manager. 
H 55. Were contracts advertised ? 

Municipalities. Yes, required by statute. 

Companies. No, except possibly in exceptional cases. 
H 56. What system was used to check the quality of materials, 
and weights or measurements of shipments ? 

Manchester. Checked by various storekeepers; all materials 
inspected, weighed, measured and examined by laboratory tests. 

Liverpool. The storekeeper checks against standard samples, 
arid books quantities and full particulars of all materials that he re- 
ceives; also checked by auditor against invoice. 

Glasgow. Heads of departments check the quality, and store- 
keepers check weights and measurements. 

St. Pancras. Checked by storekeepers and chiefs of each de- 
partment ; separate storekeepers for each department. 

Newcastle Supply. By storekeeping staff and engineering 


Newcastle District. Coal was tested and recorded; all ma- 
terials were weighed. 

London City. Various systems, according to nature of 
goods, but all goods were subject to test and strict examination. 

Westminster, St. James. Storekeepers check quality and quan- 
H 57. What redress is there in case of shortages or poor quality? 

Shortages have to be made up or credit given. Material may be 
rejected and credit claimed. 

H 58. Were the dealers supplying materials connected with the 
local or central governments ? 

Municipalities. No. 

Newcastle Supply. No. 

Other companies. Not stated. 
H 59. Were local dealers favored over those outside of the city? 

Manchester. No, except under equal conditions. 

Liverpool. Yes, as a rule. 

Glasgow, St. Pancras. No. 

Newcastle Supply. As far as possible. 

Newcastle District. No. 

London City, Westminster. Not stated. 

St. James. Yes, all things being equal. 

H 60. 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 61. In practice did the manager get the types and makes of 
things he asked for, or was he forced to take something 

The official of each plant reported that he got what he wan tod. 
H 62. Were bills for materials purchased paid promptly? 

Manchester. At end of month after receipt of bills. 

Liverpool, Glasgow, St. Pancras. Yes, monthly. 

Newcastle Supply, St. James. Yes, monthly. 

Newcastle District, London City, Westminster. Yes. 


H 63. Is the plant adequately equipped to handle the business ? 

Manchester, Liverpool. Yes. 

Glasgow. Yes; additions and extensions are kept in advance 
of demand. 

St. Pancras. Yes the present business. 

Newcastle Supply. Yes, and well designed to make exten- 
sions quickly and cheaply. 

Other Companies. Yes. 


H 64. Is the equipment of modern and efficient type? (See also 

Manchester. Not entirely; there is considerable old typo ap- 
paratus, complicated piping and divided boiler installations. The 
central part of the city is supplied by the 5-wire system, which is 
complicated and out of date. All recent equipment is modern and 
embraces the larger part of the plant. 

Liverpool. Bather too many small units and stations, due to 
original design. There are 83 units generating, about 50 of which 
are small and are widely scattered about the city. Pumpfield and 
Lister Drive (1st section) units are of modern design, but only 
700 k. w. each. The second section of Lister Drive, however, con- 
tains turbo-generators of the latest high-tension type. The boilers 
are all of the Lancashire type, except the second section of Lister 
Drive which has Babcock & Wilcox boilers. The new sub-station 
equipment is modern and efficient. There are 5 refuse destructor 
plants scattered about the city that supply steam to electric generat- 
ing stations. These stations contain 17 units, aggregating 2,580 k.w. 
The method of operation necessitates that these units be run con- 
tinually and must always have their load independent of other sta- 
tion operation. 

Glasgow. Yes, largely. There are several small units at each 
station that will require replacing shortly. In new equipment, some 
combination direct-current alternating-current dynamos were in- 
stalled; these were to generate either class of current, and large 
static transformers to step up the alternating current were in- 
stalled; but up to the present time, they have not been run as 

St. Pancras. Some machines are modern and efficient ; some 10 
or 12 years old ; small units are not efficient. 

Newcastle Supply. Yes, turbines of largest size. 

Newcastle District. The new stations are very modern; all 
Parsons turbines and direct current, located in center of city. The 
old Forth Banks station was selected temporarily, but added to 
gradually. Contains Parsons turbo-alternators, small units, single- 
phase, alternating current, 1,000 volts. Will be shut down shortly. 
Several turbo-alternators transferred to Close station to look after 
the A. C. load. New Close and Newburn stations were recently 
constructed, 1902-1905. Located so as to use direct current. All 
Parsons turbines of most improved type. Aided by a storage bat- 
tery in center of commercial district. 

London City. Yes, new installations since 1898. Some old 
Brush machines to be scrapped. Plant condensing from river. 
Coal from barge. 

Westminster. Generating units rather too small and too 
numerous for best efficiency. Sub-stations are up to date and well 


St. James. Can hardly be called modern according to present 
standards; for a non-condensing plant, it is efficient. 

Central. New and modern. 
H 65. Is it in good condition ? 

Manchester. All in apparently good serviceable condition. 

Liverpool. Yes, so far as seen. 

Glasgow. First class order. 

St. Pancras. Only fair. The old units should be discarded. 
The new turbines are noisy and run very hot. 

Newcastle Supply. Yes. 

Newcastle District. The old Forth Banks station is in 
rather dilapidated shape; supplies single phase A. C.; will shortly 
be shut down. 

London City, Westminster, St. James, Central. Yes. 
H 66. Will it be necessary to make extensive repairs or alterations 
in the near future? 

Manchester. Apparently not under ordinary conditions. 

Liverpool. Probably not in the nature of repairs, but for bet- 
ter efficiency some of the small generating stations will have to be 
abandoned as such and converted into sub-stations, which will mean 
discarding old generating apparatus. 

Glasgow. No, but improvements are constantly being made, 
replacing small units. 

St. Pancras. Depends upon the progress of business. 

Newcastle Supply, District. No. 

London City. Plant can carry easily heaviest load so far; 
extensions subject to demand. 

Westminster, St. James, Central. No, the Central Company 
will be able to furnish what amount the Westminster and St. 
James companies need. 

H 67. Was the plant in neat and clean condition? 

Manchester, Liverpool. Yes. 

Glasgow. Very neat and clean. 

St. Pancras. Moderately so. 

Newcastle Supply. Yes, considering the construction work 
under way. 

Other Companies. Yes. 
H 68. Were the works adequately ventilated? 

Manchester, Liverpool, Glasgow. Yes. 

St. Pancras. Eegents Park station, yes; Kings Eoad station, 
no. Kings Eoad station was well designed for ventilation, but 
owing to the noise of the direct current turbines, many windows 
have been cemented up, and now the building is quite close even 
with forced ventilation. 

Companies. Yes. 


H 69. Were the pits, shafts and machinery properly guarded? 
Yes, in every case. 


H 70. Were the offices for payments, complaints and other busi- 
ness conveniently located? 

Municipalities. Yes, near centre of city. 

Newcastle Supply, District. Yes, in centre of city. 

London City. Yes, near centre of district (works office 
south of Thames). 

Westminster. Quite convenient. 

St. James. Main office in centre of district supplied. 

H 71. Were consumers' complaints promptly and efficiently at- 
tended to? , 

Yes, in each instance, so far as could be ascertained. 
H 72. Describe office system of handling complaints. 

Manchester. They are received by telephone, letter or in per- 
son at the Town Hall, entered in a complaint book, and a slip given 
to electrical engineer or representative who has them attended to by 
an inspector. The slips (with nature of complaint and details 
stated thereon) are then entered in record and filed. 

Liverpool. Eeceived by letter, telephone or in person and 
turned over to proper persons to investigate, adjust and report. 

Glasgow. Complaints are registered in general office and 
handed to superintendent of mains who -gives them immediate at- 
tention. In his absence the complaint is taken care of at once by 
men on duty, and a report of same is submitted to him afterwards. 

St. Pancras. Eeceived at main office. Engineer enters in 
book and attends to some personally; others are handed to various 
departments, and some are dealt with by canvassers. When fin- 
ished all are reported to engineer who directs correspondence per- 
sonally. All complaints come up before the committee quarterly. 

Newcastle Supply. Special sub-department of consumers 
department promptly deals with all complaints. 

Newcastle District. No charge for complaint work. Com- 
plaints are received at general office or plant office, sent to dis- 
tribution superintendent, recorded and when attended to duplicate 
record returned to engineer's office. 

London City. Complaints made at manager's and secre- 
tary's office are dealt with by men on duty there and, excepting 
pressure complaints or interruptions in service which are handled 
by engineering staff, are recorded and service done noted. 

Westminster. Details not submitted. 

St. James. Complaints are entered in complaint book; in- 
spectors are sent out and report at once; nature of complaint and 
work done entered in book ; tabulated fortnightly for directors. 


H 73. How are leak complaints attended to at night? 

Manchester. A special man is kept on duty to deal with con- 
sumers' troubles until 11 P. M., and for troubles on lines, all night. 

Liverpool, Glasgow. By men on duty night and day. 

St. Pancras. Men are on duty until midnight and can be 
reached all night if necessary. 

Newcastle Supply. By special men set apart for that duty. 
Newcastle District. Foreman is available all night. 

London City. Complaints are handled at any hour day or 
night; emergency men on at night. 

Westminster, St. James. Not stated. 


H 74. Is there a system of badging or uniforming the em- 
ployees so that they may be known to the public? 

Manchester. Means of identification are provided when re- 
quired by special order or card. Certain grades wear uniforms. 

Liverpool. Three meter readers only are uniformed. 

Glasgow. No, but all meter readers and others who come in 
contact with the consumers have a book or card which identifies 

St. Pancras. No ; each man carries a card of authority. 

Newcastle Supply. Complaint men are uniformed and all 
others tending to consumers' needs. 

Newcastle District. No; they use passes. 

London City. Men entering consumers' houses have metal 
identification badges. 

Westminster. Meter readers, yes. 

St. James. Meter readers, yes. All employees outside have 
an identification card. 

H 75. Are the general morale and discipline of the employees 
good, bad or indifferent? , 

Manchester. Apparently very good. 

Liverpool, St. Pancras. Good, according to engineers. 

Glasgow. Apparently excellent. 

Newcastle Supply. Excellent. 

Newcastle District. Said to be very good. 

London City, Westminster, St. James. Good, according to 

H 76. Are the employees who meet the public polite and attentive ? 
Manchester. Very courteous. 

Liverpool, Glasgow, St. Pancras. Yes, according to officials. 
Newcastle Supply, District. Yes. 


London City. Engineer says, have had no complaints to the 

Westminster. Those seen, yes. 

St. James. Yes, according to engineer. 
H 77. Are they neatly dressed ? 

Municipalities. Yes. 

Newcastle Supply, District, St. James. Yes. 

London City, Westminster. Yes, suitable for their work. 

H 78. Do the various departments work in harmony? Is there 
friction or jealousy, and does one department shirk work, 
leaving it to be done by another ? 

Manchester, Liverpool, St. Pancras. The officials in charge 
say all work in harmony. 

Glasgow. Harmony prevails apparently and there appears to 
be no friction except in the nature of a friendly rivalry between the 
electricity department and the gas department. 

Companies. All departments are said to work in harmony. 
H 79. Is there an adequate system of telephones ? 

Yes, both public and private in each case. 
H 80. Are the works and offices properly watched at night? 

Yes, in each instance. 

H 81. Are employees generally permitted to run to fires, or is 
some one appointed to go ? 

Manchester. Generally an installation inspector and mains 
foreman respond. 

Liverpool. No, not necessarily. Consumers are responsible 
for all wiring and meters, etc. An electrician of the fire depart- 
ment always attends and takes care of electrical details. 

Glasgow. The salvage corps, which is maintained as a branch 
or auxiliary of the fire department, has an electrician on its staff 
who attends all fires, and calls for assistance from electricity de- 
partments if required. 

St. Pancras. No ; receive notice and send man if necessary. 

Newcastle Supply. Special men are told off for fire 

Newcastle District. In case of fire, employees have various 
duties allotted to them. 

London City. Men appointed to go. 

Westminster, St. James. Certain outside men attend fires. 

H 82. Is there any system of inspection to prevent workmen of 
other companies or city departments from injuring the 
underground structures ? 
Manchester, Liverpool, Glasgow. Yes, all street openings are 

watched by inspectors. 


St. Pancras. Yes, two men are detailed to watch all openings. 
Electricity undertaking receives notice of permits issued. 

Newcastle Supply. No special men, but all openings are 
watched and underground works inspected. 

Netvcastle District. The mains department keeps track of 
all openings. 

London City. Yes, street inspectors always in touch with 
work done by other companies, builders and pavers. 

Westminster, St. James. Inspectors watch all openings. 

H 83. Has the manager maintained an adequate system of reports 
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 structures* in- 
stalled, etc. ? 

It is the general practice of municipal as well as company 
undertakings to keep records of the operation of the plant in very 
good shape, to use installing appliances that enable them to read 
carefully the weights and measurements of materials used, and 
also to adopt recording and indicating instruments which indicate 
the kilowatts and amperes at the stations as well as the voltage at 
the bus-bars and at the terminals of distribution feeders. Their 
methods of reporting to the committees in charge and board of di- 
rectors are generally good and complete in detail. 

Manchester. Yes, a daily log book of operation and a com- 
plete system of weekly and monthly reports are kept. 

Liverpool. Book records. 

Glasgow. Yes, a very complete system. 

St. Pancras. Weekly returns. 

Newcastle Supply. Yes, a most complete report of opera- 
tion and costs daily and weekly. 

Newcastle District. Yes, records kept in books; monthly 
balance sheet. 

London City., Westminster. Yes. 

St. James. Yes, daily and weekly; load curves in detail. 
II 84. Was there a drafting room maintained? 

Manchester. Yes, at works' office, and surveyor's office, Town 

Liverpool, Glasgow. Yes. 

St. Pancras. Yes, rather unsystematic. 

Netvcastle Supply. Yes, at office and constructing depart- 

Other Companies. Yes. 

H 85. What system was in vogue to take care of the tools distrib- 
uted to employees? 

Municipalities. Tools are booked in and out by storekeepers 
to each employee, who is held responsible for the return of same. 


Newcastle Supply. Each department is responsible for the 
tools used by it, which are booked in and out. 

Newcastle District. The various foremen make a note of all 
tools distributed to employees. 

London City. Men appointed to check and supervise. 

Westminster, St. James. Booked in and out, in storekeeper's 

H 86. Were the different classes of workmen equipped with proper 

tools ? Were the tools kept in order ? 
Yes, apparently so, in each instance. 

H 87. With what promptness were orders to turn on current at- 
tended to ? 

Manchester. Promptly in order of receipt, if ready for con- 
nection, according to engineer. 

Liverpool. Promptly, according to engineer. 

Glasgow. Immediately, provided the rules and regulations of 
the department have been complied with. 

St. Pancras. Have to receive approval of central office; if 
approved, promptly. 

Newcastle Supply. Immediately. 

Newcastle District. As soon as possible. 

London City. In many cases the same day, in order of re- 
ceipt; all cases within a few days or when consumer is ready, ac- 
cording to engineer. 

Westminster. Four days if street has to be opened; immedi- 
ately, if not. 

St. James. If service is in, in a few hours, according to man- 

H 88. 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? 

Manchester, Liverpool, St. Pancras. No, only as needed. 

Glasgow. No, except that modern tenements of the better 
class, if near mains, are usually connected during building opera- 

Newcastle Supply. No; none. 

Newcastle District. Services are generally not run until the 
building is nearly completed. 

London City. Inquiry does not apply to City of London. 

Westminster. Occasionally. 

St. James. No such conditions. 

H 89. Are records kept of services by date installed, so that as the 
service grows old an inspection may be made at intervals 
of years to determine when renewals should take place 


and insure such renewal before most of the services have 
begun to give trouble ? 

Manchester. Yes, and by frequent inspection and tests. 
Liverpool. Yes, stated but not exhibited. 

Glasgow. Records of services are kept. If mains from which 
services branch should give oiit owing to age, in all probability the 
services would require renewing but there is no record so far of such 

St. Pancras. Yes, of recent years ; very good record kept, card 

Newcastle Supply, Westminster, Yes. 

Newcastle District. Service boxes are numbered, recorded 
and inspected once a year. 

London City. An inspection is made once a year. 
St. James. Yes, a card system of service records. 

H 90. Are there any regulations in force regarding the entrance 
of employees into houses? 

Manchester. By permit signed by chief engineer or secretary. 
Liverpool. No regulations. 

Glasgow. Yes, but they always have orders with them to prove 
their identity if questioned. 
St. Pancras. No. 

Newcastle Supply. No printed regulations; employees carry 

Newcastle District. Each employee is provided with pass. 
London City. None submitted. 
Westminster. Employees show badge or card. 
St. James. No printed regulations. 

H 91. Does any one inspect the work done by employees in con- 
sumers' houses? 

Manchester. Yes. Foreman inspects and tests. 

Liverpool. Yes, an official of the department. 

Glasgow. Yes, setting of meters always inspected. 

St. Pancras. Work in consumers' houses done by outside con- 
tractors is always inspected. Engineer says that department has 
power to make regulations as to character of work that should be 
done in consumers' houses, but it has no power to enforce these 

Newcastle Supply. All work is inspected by a competent 
installation inspector. 

Newcastle District. Yes, the mains superintendent or his 

London City, Westminster., St. James. Yes, by inspectors. 
Vol. III. 23. 


II 92. If so, did it include every job? 

Manchester. General. 

Liverpool. Every job, whether carried out by a servant of the 
department or by other contractor. 

Glasgow. Particular inspection as a general rule. 

St. Pancras. Yes, every job. 

London City. Practically every job. 

Other Companies. Every job. 


British Electricity Supply Works 

(Schedule IV) 


I 1. Data for year ending: Manchester, March 31, 1905; Liver- 
pool, December 31, 1905; Glasgow, May 31, 1905; St. 
Pancras, March 31, 1906 ; Companies, December 31, 1905. 

I 2. Give prices for current per Board of Trade unit (k. w. h.) 
for various purposes. 

I 3. State what discounts were allowed and free service rendered. 
I 4. Give meter rents, if any. 

There are special rates or varying conditions in nearly every 
town, but the charges given on the following pages are the prin- 
cipal ones: 

1 All 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 information 
was required obtained such details from the staff of the undertaking. 

We have not in any case verified by personal examination the accu- 
racy 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 complete- 
ness, even had we entr6e to the books and original records. 








** *> 




o-o. SJ - 




p. g 

a is 

<a g 

08 52 


3 a 

2J a, 



5- 1 



p a -t- 1 
S *2 


^3 5. 




g a> 












.2 x3 -a 

-*J +- 3 

o d 





a? a 


o o 







s 10 - 

<M *j < 



' Ss 


$ RrH g 


^2l |^ 


OD 5* 



" & S 

rt H 


3 S 


'S M 






^ II 

d a 


'3 '3 


_ j3,_reo^r 

9 2 ** ti ^ 
2? Q g rs QJ 

- t^I ^* 

c ^ 




I 5. Were appliances supplied free to consumers? 

No, except as above stated. In this connection, it should be 
noted that where fittings are furnished free or wiring done with- 
out charge, a higher price is often made for current, the additional 
amount being a return in part at least for this gratuitous work. 

I 6. Did consumer pay for damages or repairs to meters and 

other appliances furnished by undertaking? 
Each undertaking, whether company or municipal, made all 
ordinary repairs, except those due to wilful damage or fire. 

I 7. Did consumer pay for connections with mains? 

Manchester. Only where the service main (connecting house, 
etc., with distributor main) exceeded one yard in length, i. e., in 
cases of long gardens and long passages on private grounds. 

Liverpool. Consumer paid cost of lines on private property 
and of service lines over 25 yards. 

Glasgow. Consumer paid cost of lines upon private property, 
but the department always lays the service line up to the property 
line free of charge. 

8t. Pancras. Only long runs over private ground. 
Newcastle Supply, District. Only those over 60 feet. 

London City. Only where long mains had to be run with 
no intervening consumers and on private property over 12 feet. 

Westminster, St. James. Only long runs over private ground. 
Central. No service lines laid. 

Notes relating to table on pp. 340, 341. 

1 See answers to inquiries I 39-43, where the details of the charges 
are given. In most instances, these prices include care, maintenance 
and renewals. 

* Hoists are charged separately from Id. to l%d. per unit. 

* Street lighting by electricity is a negligible quantity. The 
amount received in 1905 was only 675. 

* The charges by slot meters are Id. for seven hours' use of one 
8 c. p. (33 watt) lamp, except where wiring has been done free, then 
the rate is Id. for five and one-half hours' use. There are no meter 
rents or discounts. Arc lamps are rented at 5s. per quarter. 

e Lighting installations in private residences are provided on 
three-year hire purchase system, at a rental of 1/6 per lamp or per plug 
per quarter, or on the hire system, at 6d. per lamp per quarter. 

* Consumers' houses are wired free and installation maintained, 
except lamp renewals, willful damage and damage by fire or water. 
Charges in such cases are 5^d. in Newcastle and 6d. in Benwell and 

T Basement lighting, if metered separately, is 3d. per unit, with a 
minimum charge of 5s. per quarter for all up to 4,000 units per annum ; 
all over 4,000 units is 2d. per unit. 

* Current is supplied to the Westminster and St. James companies In 
bulk. The price is fixed as nearly as possible at the actual cost of 
production, after paying interest on the debentures. 



I 8. Was any part of the cost of mains paid by consumers or 

property owners? 

No instance was found in any case. 
I 9. Were extensions to new territory made free or charged for? 

Manchester, Liverpool, St. Pancras. Extensions were made 
when demand justified outlay, free of charge to consumer. 

Glasgow. Under the statutes 20 per cent, annually of the 
cost of laying a main may be required by the department in pay- 
ment for current consumed. This was generally made a stipulation 
in laying mains in districts hitherto not supplied. 

Companies. No charges were made. 
I 10. Were these schedules and rules strictly enforced? 

Yes, in every instance. 

I 11. Were rates altered between January 1, 1900, and 1906? 
Manchester. Price per unit: 

1900 Oct., 1901, June, 1903, 

to to to 

Lighting Oct., 1901. June, 1903. Jan., 1906. 

Ordinary service 5d. 5d. 4Jd. 

Maximum demand 7 & If d. 7 & If d. 7 & Ifd. 

Minimum charge 30s. per an. 30s. per an. 30s. per an. 

Power and heating 

Less than 300 h. p 3d. 3d. ld. 

Over 300 h. p Ifd. Ifd. Id. 

Minimum charge 7/6 per qr. 7/6 per qr. 7/6 per qr. 

Liverpool. Price per unit: 

Lighting per quarter 
Up to 3,000 units 
Over 3,000 units 

Power per quarter 
Up to 3,000 units 
Over 3,000 units 

1900 to 
Mar. 1901. 



1901, to 




1902, to 




March to 





Glasgow. Price per unit: 

Maximum demand, 365 hours. ... 6d. 

Ditto, afterwards lid. 


Maximum demand, 1,277 hours. . . \ 

Ditto, afterwards t lid. 

Minimum . . ) 




190 b. 







St. Pancras. Price per unit : 

1901-'%. 1903-'4. 

Lighting 1900-'!. 1902-' 3. 1904-' 5. 1905-' 6. 

Maximum demand 

first two hours. . 6d. 6d. 1st 1 hrs., 6d. Isthr., 6d. 

Thereafter 3d. 3d. 3d. ld. 

Flat rate 5d. 5d. 4d. 4d. 

Indicator rental, per quarter Is. 

Power 2d. 3d. 3d. Id. 

From 4 :30 to 8 :30, per unit 6d. 

In 1905-'6 factories were allowed current for lighting at power 
rates up to 20 per cent, of their power consumption. 

Newcastle Supply. Price per unit: 
Lighting 1900-190 J h 1905. 

Flat rate 4|d. 3-*d. 

Maximum demand after minimum ___ Id. None. 

Power ld. down. ld. down. 

If bills were paid before the 10th of following month, a dis- 
count of 5 per cent, was allowed. The rates to power consumers 
varied with the conditions of supply. 

Newcastle District. Price per unit, with special rates to 
large consumers : 

1903, July, 1905, 

to to 

1900-1902. July, 1905. Dec., 1905. 

Lighting 6d. 4|d. 4d. 

with 5% discount, and Id. discount. 

Power 2d. 2 and less. 1^ and less. 

London City. Price per unit: 

1900-1901. 1902. 1903-1904. 1905. 

Lighting 8d. to 3d. 8d. to Id. 8d. to Id. 8d. to f d. 

Power 2^d. to Id. 2d. to Id. 2d. to Id. 2d. to fd. 

Heating 3|d. 2|d. to ld. 3d. to l$d. l|d. 

The conditions for the different rates varied so greatly that 
only the limits are given here. 

Westminster. Price per unit: 

1900- 1902- 
Lighting, per annum 1901. 1903. 1904. 1905* 

Up to 4,000 units 6d. 6d. 5d. 

Over 4,000 units 4d. 4d. 3fd. 

Power, per annum 

Tip to 4,000 units 3d. 3d. 3$d. 

Over 4,000 units 3d. 3d. Ifd. 

A discount of 8 per cent, was allowed to 200 volt consumers 
during 1900-190'?. Change in pressure was made at company's 

*See inquiries I 2-4. 


St. James. Price per unit: 

1900- 1904- 

Lighting, per annum 1901. 1902. 1908. 1905. 

Up to 4,000 units 6d. 6d. 6d. 6d. 

Over 4,000 units 4d. 4d. 4d. 4d. 

Basement lighting 

Up to 4,000 units 6d. 6d. 3d. 3d. 

Over 4,000 units 4d. 4d. 3d. 2d. 

1900- 1904- 

Power, per annum 1901. 1902. 1903. 1905. 

Up to 4,000 units 3d. 3d. 3d. 3d. 

Over 4,000 units 3d. 3d. 3d. 2d. 

8% 8% 

discount, discount. 

Central. Price per unit : 1903, 3d. ; 1904, If d. ; 1905, If d. 

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, give rates just before and after change. 

Manchester, Glasgow, St. Pancras. Always municipal plants. 

Liverpool. At date of transfer, the company was charging 
7-Jd. per unit for lighting and 5d. for power. After the transfer 
the municipality charged 6d. and 4d. for lighting, and 3d. and 2d. 
for power. 

I 14. Were bills considered as liens against property? 

Only as bills against consumer in every instance. 
I 15. How were bills collected? 

Manchester. The gas department sent its collectors and 
charged the electricity department 886 for their service. 

Liverpool. By collectors and payment at offices. The condi- 
tions of supply provide that all accounts shall be paid to the City 

Glasgow. Accounts are payable at the Treasurer's office in 
the City Chambers or to collectors who call upon consumers. 

St. Pancras. By collectors and payments at office. 

Newcastle Supply. By collectors and payment at office. 

Newcastle District. Consumers paid at the office. The 
company did not employ collectors except for slot meters. 

London City. By collectors. 

Westminster. Greater proportion of bills were paid at office 
by check, but a few collectors were kept to push delinquents. 

St. James. By collectors and payment at office. A large pro- 
portion were paid by checks sent by mail. 


I 16. How often were collections made? 

Manchester, Liverpool, St. Pancras. Quarterly. 

Glasgow. Every two months. 

Newcastle Supply, District, Westminster. Quarterly. 

London City. Quarterly, monthly and weekly. 

St. James. Quarterly and weekly. 
I 17. What system of accounts was used during last fiscal year? 

The standard form prescribed by the Board of Trade in 
every instance except the Newcastle Supply company. There are 
two forms prescribed ; one for the accounts of local authorities, the 
other for the accounts of private companies. These forms are 
practically the same, the only point of difference being on the 
question of depreciation. The variation is that while the form 
for private companies includes depreciation on leasehold works, 
buildings, plant, machinery, e,tc., the form for local authorities 
does not provide for depreciation. 

I 18. By whom were the accounts audited? 

Manchester. Messrs. Butcher, Litton & Pownall, chartered 
accountants, Man., and the elective and mayor's auditors. 

Liverpool. A continuous audit was conducted by the comp- 
troller and auditor of accounts. There was also an audit by the 
elective and mayor's auditors. The city does not employ any 
outside professional auditors except for the tramway department. 

Glasgow. Messrs. Kerr, Andersons MacLeod, G. A., Glasgow. 

St. Pancras. Local Government Board Auditor. 

Companies. By an auditor appointed by the Board of Trade, 
and also by a professional accountant appointed by the shareholders. 
The only exceptions are the Westminster Company, where the only 
auditor was the one appointed by the Board of Trade, and the City 
of London Company, where the Board of Trade auditor has no 
authority to audit the accounts for the city, but only for South- 
wark. , 

I 19. Who paid for this auditing? 

Manchester. The municipality, out of city fund. No part 
of the fee of the professional auditors was charged to any depart- 

Liverpool, Glasgow. The electricity department. 

St. Pancras. The borough, not the department. 

Companies. The expenses of both audits were paid by the 

I 20. Who selected the auditor? 

Municipalities. The city council in each case, except in St. 
Pancras, where he was chosen by the Local Government Board. 

Companies. The Board of Trade selected the official auditor; 
the shareholders, the company's auditor. 


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 was 

properly charged? 

Besides the audit described under inquiry I 18 
Manchester. The certificate of the departmental managers 
and a checking of all charges by the accountant. 

Liverpool. All bills were checked by the audit staff. 
Glasgow. Every item was checked from the moment it was 
ordered until paid by the treasurer and certified by the auditor 
that it had been charged to the proper account. 

St. Pancras. All bills were classified by the borough treasurer. 
Newcastle Supply, District. A proper record of all pur- 
chases was kept, and the classification was subject to the super- 
vision and control of the higher officials. 

London City. There was a proper system of cost accounts. 
Charges were allocated by the engineer, and checked and audited 
by the accountants of the company. 

Westminster, St. James, Central. Charges were allocated by 
the engineer and checked by the accountants. 
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 
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 amounts spent. 
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 amounts 
expended, but some took out the ordinary insurance policy while 
others carried their own insurance. 

I 26. As to current used in plant and offices, was the cost charged 
in the books of the undertaking and included in the 
financial returns? 

Eecords were kept except in Liverpool and St. Pancras, but 
no entry was made either upon the debit or credit side of the 
revenue account for any plant. 
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. The first will be considered 
under I 28, the others will be treated here. 

I. Payments to Depreciation Funds. 

Manchester. It has not been the practice to charge the revenue 
account with any sum for depreciation. The ordinary current re- 
pairs have been charged out of revenue, and during the year under 
review also 13,328, for special renewals, at the generating and 
distributing stations. In addition a renewals fund has been ac- 
cumulated of 50,000, of which 25,000 were taken out of the profits 
for the year under review. This fund is not invested, but used 
as working capital. 

Liverpool. There is no "depreciation fund," but a renewals 
fund has been provided out of revenue of 68,971, not invested. 
This is in addition to the ordinary repairs charged to revenue 
account. The fund has been from time to time debited with the 
actual cost of renewals; the amount in 1905 was 3,917. 

Glasgow. During the year 1904-5 the revenue account was 
charged with 39,242 for depreciation and 2,599 for loss on plant 
sold, in addition to the ordinary repairs. The total amount stand- 
ing to the credit of the fund at the end of the year was 140,700, 
represented by expenditures upon works. In previous years de- 
preciation has been written off at varying rates on capital outlay, 
the practice having been to write off as much as possible subject 
to the profits. The rates were reduced when profits were low, and 
in the year 1901 no depreciation was written off at all. The officials 
of the department state that the total amount set aside out of 
revenue for depreciation is 235,861, the difference 95,161 
being accounted for by capital outlay which has been written off 
and does not appear in the assets. 

St. Pancras. During the year ending March 31, 1906, the 
only amounts charged to revenue account for depreciation were in 
respect of stores and tools, but during previous years surplus profits 
have been applied in writing off depreciation on accumulators, 
meters, machinery, boilers and other works, in addition to the 
ordinary charges for repairs. 

Newcastle Supply. The credit to the depreciation fund is 
156,000, which has been created out of premiums received on 
shares to the extent of 137,500 and out of surplus profits to the 
extent of 18,500, of which 12,500 were set aside last year. The 
company states that this fund is more than sufficient to meet any 
obsolete plant, which is estimated at 117,000, and that deprecia- 
tion will be set aside when the works are complete and in full 
revenue bearing condition. The fund is not invested, but is repre- 
sented by capital outlay on works. The charges for ordinary re- 
pairs have been made annually. 

Newcastle District. Upon December 31, 1905, the com- 
pany had provided out of revenue the sum of 7,500 only. Since 


1899 only 500 have been placed to the credit of this account. The 
fund is not invested, but forms part of the working capital. In 
this connection it is important to notice that in 1904 the company 
sold part of the land purchased by them and realized a profit of 
3,045, which was credited to revenue account. This profit was 
applied in payment of dividend. 

London City. Under the Act of 1893 the company was re- 
quired to set aside for depreciation at least 7 per cent, on the 
capital outlay at the end of each year, from which might be de- 
ducted expenditures for maintenance, renewals and replacements. 
The City Corporation was empowered to examine the accounts to 
guarantee that the provision was complied with. In 1900, owing 
to the feeling that this company ought not to be subject to obliga- 
tions which did not apply to the other private companies within 
the Metropolis, the act was repealed and from that date no statutory 
requirement has been in force, although amounts have been credited 
to a depreciation-reserve fund out of surplus profits, a full state- 
ment of which is given below. 

Westminster. This company has accumulated a fund of 
162,755 by charging against revenue in each year certain fixed 
percentages on capital outlay in addition to the ordinary charges 
for repairs. 

At the end of 1899, this fund amounted to 60,280 

And during the six years 1900-1905 it has been in- 
creased out of revenue by 149,602 


Out of this amount the company has expended for re- 
placements 47,127 

Leaving unexpended, as above 162,755 

As to investment, see under II. below. 

St. James. The company has regularly charged revenue with 
depreciation at fixed rates per cent., which amounts are deducted 
from the capital outlay shown in the balance sheet. The rate upon 
buildings has been 1 per cent, and upon plant, machinery, etc., 6 
per cent. In the year 1905 14,794 were thus deducted in addition 
to the usual charges for repairs. 

Central. The depreciation fund stands at 6,300, charged 
out of surplus profits, besides payments for ordinary repairs. It 
is part of working capital. 

II. Payments to Reserve Funds. 

Manchester. A reserve fund has been accumulated out of 
revenue amounting to 20,387, invested in government securities. 
The resulting interest is added to the fund. This fund has been 
drawn upon from time to time, and during the year under review 
was debited with the sum of 15,312, being the costs and expenses 
in connection with an action against the department on the grounds 
of vibration and explosion. 


Liverpool. A reserve fund of 95,617 has been set aside out 
of surplus revenue, of which 26,471 have been invested in gov- 
ernment securities. 

Glasgow. This municipality has provided a reserve fund of 
12,723 out of surplus profits for the year 1904-5. This fund 
is not specifically invested, but is represented by outlay on works 
and working capital. 

St. Pancras. The reserve fund has been made up of: 

Transfers from net revenue 56,719 

Interest on investments 2,481 


This amount has been applied as follows : 
Alterations on change of pressure to 200 volts 2,917 

Depreciation of accumulators 1,808 

Compensations on purchase of property under 

compulsory powers 8,137 

Replacement of plant 7,931 

Cost in opposing electrical bills in Parliament, 

1906 2,480 

Promotion of new bill for additional powers, 

1906 296 23,569 

Newcastle Supply. The depreciation and reserve funds are : 

Depreciation account 156,000 

Reserve account 12,184 


These funds have been provided as follows: 

Premiums received on shares 155,676 

Transfers from profit and loss to reserve account 6,547 

Transfers from profit and loss to depreciation 18,500 

Total 180,723 

Applied in part as follows: 
In writing off formation expenses as required 

by the Board of Trade auditor 3,004 

Stamp duty on increase of capital 2,282 

Cost of issue of new shares 3,753 

Cost of change of voltage 3,500 12,539 

Leaving the above balance of 168,184 

Although the company holds investments in several companies 
which have cost 115,125, they are more in the nature of an 
extension of the business rather than a specific investment of the 
reserve fund which is practically uninvested, except in capital 
outlay on the works. 

KLKCTK R- 1 T Y FI X A XCK. 351 

The company also has a suspense account credit amounting 
to 29,765. This account originated in an amount of 50,000 
received from the Count)- of Durham Distribution Company under 
the working agreement of March, 1905, to meet the reduction in 
the company's revenue, arising on cancellation of the old contract 
and other contingent expenses. Out of this sum the directors have 
taken 20,235, being the reduction in revenue for the year 1905 
arising out of the cancellation of the old contract, also the 
premium paid on the purchase of the Durham company's shares, 
and the costs and expenses incurred in carrying into effect the 
new working agreement. This leaves a balance to the suspense 
account of 29,765. 

Newcastle District. The company has accumulated a re- 
serve fund of 14,500, made up as follows : 

Premiums received on shares 20,218 

Transfers from revenue account 1,282 

Total 21,500 

This fund has been charged with the following 

Registration expenses of new capital 513 

Costs of rating appeal 353 

Cost of debenture issue 2,758 

Preliminary working charges on the Newbura 

Works 766 

Interest on capital outlay 2,610 7,000 

Leaving the above balance of 14,500 

This fund is not specifically invested, but forms part of the 
working capital. 

London City. On December 31, 1895, the bal- 
ance to the credit of the depreciation and reserve 
funds, which were set aside in accordance with 

the Act of 1893, amounted to 39,248 

Which amount was increased in ten years by 

Transfers from net revenue account 318,526 

Premiums on shares and debentures 71,577 

Sales of old plant 5,954 

Total . 435,305 

This amount has been applied as follows : 

Ordinary repairs and maintenance 1 108,513 

Special expenditures on replacements 16,210 

Loss on sale of investments 2,674 

1 These repairs were for the years 1896 to 1901 and are repairs 
which in subsequent years have been charged to the ordinary revenue 
account. The revenue accounts for the years 1896-1901 do not, therefore, 
contain the ordinary repairs and maintenance as part of the working 


Cost of alterations of meters, fittings and apparatus on 
consumers' premises in connection with change of 
pressure 22,336 

Assets written off on demolition and deducted from 
capital expenditure, less estimated value taken into 
store, analyzed below 89,251 

Total 238,984 

Balance in reserve fund, with which the depreciation 

fund had been consolidated, Dec. 31, 1905 194,321 

Balance in leasehold redemption fund, Dec. 31, 1905. . 2,000 

There is also a bad debt reserve fund amounting to 1,400, 

which has been added to the above amounts to give the total 

reserve of 197,721 under K 5. 

Upon December 31, 1904, the funds were as follows, the 

reserve and depreciation funds provided for under the Act of 

1893 having been merged: 

Reserve and depreciation funds 255,258 

Leasehold redemption fund 1,500 


During the year they were increased by the estimated 
value of old plant, stores, etc., resulting from dis- 
mantled works in 1905, less the cost of dismantling 1,130 
And by transfers from the revenue account for 1905 

for leasehold redemption 500 

And for general reserve purposes 45,000 

Total 303,388 

Out of this fund there were taken in 1905 : 

Cost of alteration of meters, fittings and apparatus on 
consumers' premises in connection with change 
of pressure 904 

Cost of works dismantled to December 31, 1905, de- 
ducted from capital expenditure 89,058 

General stores adjustment account. The general stores 
have been revalued especially as regard old items 
taken out of service and returned to stores and 
there has been written off 10,040' 

Special expenditure on machinery of plant, cables and 
other works replaced during 1905, less value of 
old stores 7,065 

Total 107,067 

Leaving a balance to credit of reserve account of 194,321 

Leasehold redemption 2,000- 

Total 303,38 


The item for plant dismantled and written off is made up of : 

Machinery, plant, etc 28,036 

Mains 25,190 

Wiring motors and fittings on hire 321 

Transformers and accessories 10,701 

Tools and plant 304 

Buildings 6,885 

Cost of Southwark Order 495 

Expenditures on conduits for telephone purposes. ..... 17,126 


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 represents a premium of 100,000. There is no 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. 
On December 31, 1895, the balance of premiums on 
issue of 400,000 debenture stock standing to the 

credit of this account amounted to & . . . 65,280 

Which has been increased during the ten years 
by the following items: 

Premiums on ordinary shares 80,000 

Interest on debenture premium account 575 

Total , 145,855 

Of which there has been applied as follows : 

Expenses of issue of shares 852 

Costs re applications by other companies 3,64(> 

Replacements 7,908 

Expenditure on Wool Quay, before abandoned as a 

generating station 14,510 

Transfer to depreciation and reserve fund 71,577 


On December 31, 1900, this account was closed and the 
balance of premiums unapplied, viz., 47,362, was treated as a 
reserve to provide for the redemption of the first debenture stock 
at 125 per cent. It has since been increased by interest charged 
to the revenue account and added to the fund, amounting to 
5,970, making a total of 53,331. 

Of the total amount in the various funds of 251,052, 59,303 
were invested, the remainder being represented in outlay on works. 

Westminster. The amount standing to the credit 

of the reserve fund at December 31, 1900, was 9,779 

Vol. Ill 24. 


Which has been increased by: 

Interest received on investments 2,218 

Premium on new shares 18,653 

From this there have been taken for the expenses of 

the issue of new shares in 1905 4,046 

Leaving a balance at December 31, 1905 . . 26,604 
The company has cancelled founders' shares of the nominal 

value of 500, which sum has been added to the above amount 

under K 5. 

The balance to the credit of the "sinking fund" on 

December 31, 1900, was 12,172 

Which has been increased by interest received during 
the 6 years ending December 31, 1905, amount- 
ing to 3,787 

And transfers from revenue account 17,000 

Total 32,959 

being the balance on December 31, 1905. 

This "sinking fund" would more correctly be described as a 
leasehold redemption fund, and has been provided for the fol- 
lowing purposes** A large proportion of the property owned by 
the company is nlld upon short leases as is customary in London 
and being situated in the West End the ground landlord has 
always insisted upon buildings of such a character that they would 
not spoil the surrounding property. Consequently they have been 
expensive and this fund has been set aside voluntarily out of profits 
to provide for the buildings reverting to the ground landlord at the 
end of the leases. This fund is invested specifically and has been 
increased by the resulting interest received. 

With regard to the investment of the funds of this company 
222,818 part of the investment (126,928) consists of shares 
and debentures of the Central Electric Company from which the 
Westminster company purchases current. The investment in the 
Central company is not readily realizable and it cannot properly 
be considered as an investment of the funds. Part of the funds 
are invested in working capital. 

St. James. The reserve fund has been built up as follows: 
Premium on shares 

1891, 10,000 preference shares at 30s 15,000 

1899, 8,020 ordinary shares at 7 10s 60,150 

1899, additional premium on 678 ordinary 

shares, less expenses 894 


Founders' shares capital cancelled in 1899 100 

Profit on sale of reserve fund investment 952 

Transfer from revenue account, being part of surplus 

profits in 1902 5,792 

Total 82,888 


Out of this amount there have been taken: 
Premium on redemption of debenture stock 

in 1899, which stock was replaced by the 

3 per cent, stock issued in 1900 2,500 

Discount on issue of 3 per cent, debenture 

stock at 96 in June, 1900 6,000 

Expenses of issue of debenture stock 2,067 

Central Electric Supply Co., Ltd., one-half 

of interest and part of the management 

expenses during period of construction, 

8,352; less interest received from that 

company in 1901, 2,560 5,792 16,359 

Net 66,529 

The amount standing to the credit of the capital reserve fund 
has remained at this figure since December 31, 1902. 

The company has also provided a contingency fund of 2,500, 
the object of which is to provide for the high cost which had to 
be paid to the Central company for current supplied during the 
initial stages of that company. 

Of the above funds 27,134 are invested in outside securities, 
and the company has invested 54,213 in the Central company, 
viz., 50,000 of ordinary stock and 4,213 of debentures. The 
dividends on the above investments have been credited to the net 
revenue account. 

Central. The reserve fund created out of premiums on de- 
bentures amounts to 4,668, which is not invested. 

Under the trust deed provision has to be made for the re- 
demption of the loan debt, and the company has set aside out of 
revenue the sum of 18,156 up to December 31, 1905. Of this 
amount 11,456 are specifically invested. 

III. 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: 







Note 8 






Note * 

Glasgow . 

Note l 

St. Pancras 18,220 14 1,301 5,000 Note 4 

1 This department does not contribute any part of its profits in 
aid of the general rate, nor does it make any contribution to the 
"Common Good." 

* No contributions were made prior to 1901, and the total amount 
was paid over in five years. 

8 In 1894 and 1895 no profits were applied in aid of rate. They 
were so applied in the six following years, ending March 25, 1901. Since 
that date no part of the profits has been applied in aid of rate, and 
hence the total paid over was contributed in six years. 

4 The profit applied in aid of rate, viz.: 18,820, was contributed 
in the years 1896, 1900, 1903, 1905 and 1906. 


I 28. Were payments to sinking funds charged in the books of 

the undertaking and included in the financial returns? 
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 
employ 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 Liverpool 
the only municipality of the ones here treated which has any 
amount in its sinking fund unapplied. 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. 

Municipalities. The statutory provisions outlined under D 
25 have been obeyed in each instance. See I 33 also. 

St. Pancras. As the department is repaying the money it 
has borrowed by equal annual instalments with interest upon the 
balance unpaid and by -equal annual instalments of principal and 
interest, there has been no accumulating sinking fund; it is not 

Companies. No sinking fund obligations exist except as 
above described under I 27. 

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.? 

Manchester. No charges were made for the services of the 
city treasurer, city architect, city surveyor, town clerk or auditors. 
It is estimated that 1,500 would cover the value of their services. 
Liverpool. No; 2,000 per annum are included in manage- 
ment expenses to cover these items. 
Glasgow. No. 

St. Pancras. Cost of auditing and part of salaries of city 
officials and clerks. The amount is estimated at 1,000. 
Companies. No. 

I 30. Were there any items which should be credited to the 
income account, which were not so credited, such as cur- 
rent furnished free to any public department, employee or 
other person ? 
Municipalities. No. 


Newcastle Supply. No, but officials pay Id. per unit net. 
The value of this free service was small. 

Newcastle District. Current was supplied free to two fore- 
men. No account was taken of it, and it was included in leakage. 

Other Companies. None. 

I 31. Was there a storeroom account to which materials were 
charged when purchased? 

Yes, in each instance. Eegular store accounts were kept, 
and entries made under the proper accounts when material was 
received and issued, although the nature of the system varied 
from plant to plant in certain details. 

I 32. How did the rate of interest on loan capital paid by the 

city compare with that paid by private public service 
companies ? 


Rate paid Rate Paid Lower than 

Towns. ~by City. ~by Companies. Company. 

Manchester 3{j p. c. 4 p. c. f p. c. 

Liverpool about 3 p. c. 4 p. c. i to 1 p. c. 

Glasgow about 3 p. c. 4 to 4J p. c. 1 to 1$ p. c. 

St. Pancras 2J to 3f p. c. 4 p. c. i to 1 p. c. 

Newcastle-Supply 3 to 3| p. c. 4 p. c. i to 1 p. c. 

Newcastle-District 3 to 3 p. c. 4 p. c. 1 to 1 p. c. 

London-City about 3 p. c. 4J to 5 p. c. about li p. c. 

Westminster about 3 p. c. 4 p. c. about 1 p. c. 

St. James about 3 p. c. 4 p. c. about 1 p. c. 

Central about 3 p. c. 4 p. c. about 1 p. c. 

I 33. What is the amount of the bonds or other liabilities of the 

plant cancelled since it began operation? 

Liabilities Sinking Fund 

Towns. Redeemed. Unapplied. Total. 

Manchester 234,225 234,225 

Liverpool 113,209 129,090 242,299 

Glasgow . 83,668 83,668 

St. Pancras 54,803 54,803 




Westminster 1 

St. James 

Central 18,156 18,156 

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. 

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. 

1 See inquiry I 27 above, where explanation is given of a so- 
called sinking fund. 


I 36. Give kind, cost and amount of coal used for boiler fuel. 

Towns. Kind. Price. Tons. 

Manchester Bituminous, slack 9/4.11 78,166 

Liverpool Lancashire, slack 6/10.5 85,502 

Glasgow Glasgow, washed peas 6/8.6 47,735 

St Pancras Watnall and slack 12/8.3 20,500 

Newcastle-Supply Steam coal 5/4 58,423 

Newcastle-District . . . Small coal 8/3 16,000 

London-City Various (?) (?) 

Westminster Best Welsh smokeless 20/9 25,647 

St. James South Wales 18/1 16,462 

Central (?) (?) (?) 

I 37. Give kind, cost and amount of other fuel used. 

None, except in the following cases: 

Liverpool. Steam was obtained from refuse destructor plants. 

Newcastle Supply. Steam was made by the use of the sur- 
plus heat and gas from the coke ovens of the Priestman Power 
Co., with which the supply company has a contract. The company 
did not wish to impart information upon this point. 

St. James. Briquettes stored for use in emergency. 
I 38. Give quantity and cost of water used. 

Amount Total Cost pet 

Towns. (gallons). Cost. 1,000. 

Manchester 132,751,700 2,541 4.6d. 

Liverpool 125,840,000 3,213 6.1d. 

Glasgow (?) (?) (?) 

St. Pancras 20,176,000 595 7.1d. 

Newcastle-Supply 23,442,535 586 6.0d. 

Newcastle-District (?) 769 (?) 

London-City (?) 408 (?) 

Westminster (?) (?) (?) 

St. James (?) Owns well. ( ?) 

Central (?) (?) (?) 

I 39. What were the provisions of the contract between the com- 
pany and city for public lighting? (See inquiry 12.) 

Municipalities. Inquiry not applicable. 

Newcastle Supply. The majority of the street lamps were 
lighted by the gas company, particulars of which are given in its 
schedule. Newcastle obtained current for 200 street lamps from 
the municipal tramway plant at a cost per annum to March 31, 
1905, of 3,009. This company supplied no street lighting in 
Newcastle, but did in Walker under an agreement with the local 
authority, made March 27, 1903, to run 42 years from July 14, 
1900. The company supplied the current, repaired and maintained 
the lamps, lighted and extinguished the lamps at certain specified 
times, provided the carbons. It charged the local authority a flat 
rate per lamp per year, but did not wish to disclose the rate charged. 

Newcastle District. No current supplied for street lighting. 

London City. See discussion under inquiries A 5-8. 


Westminster. Contract runs until 1931 for lighting the 
streets of the parish of St. George, Hanover Square. Lamps, posts 
and mains are to be provided and fixed by the municipality. Ex- 
penses of maintenance, trimming, carboning, painting, lighting 
and turning off current are to be borne by the company. The 
rates begin at 22 per lamp, 500 watts, per annum and are to be 
reduced by one-half of 1 per cent, each year (i. e., tenth year 
22, less 5 per cent.). 

St. James. Contract runs for five years from October 12, 1905. 

Central. No public lighting. 

I 40. Public arc lighting. 


Number of Hours 

Towns. of Lamps. Kind. Lighted. 

Manchester So small as to be negligible 

Equiv. to 

Liverpool 1 193 1,50216 c. p. 2,105 

Glasgow (?) (?) 3,900 

St. Pancras 792 (?) 3,805 

Newcastle-Supply (?) (?) (?) 

Newcastle-District ... .... 

London-City 506 500 watt 

Westminster 956 500 watt 

St. James 66 10 ampere 

I 41. Who owned the lamp posts? 

I 42. Give price for street lighting. 

I 43. Did the prices given here and under I 2 include care, 

maintenance and renewals? 
Towns. I 41. / 42. / 43. 

Manchester No street lighting by electricity to speak of. 

Liverpool City. 2d. per unit. No. 

Glasgow City. 12 to 14 per year. Yes. 

St. Pancras City. l^d. per unit. No. 

Newcastle-Supply City. See I 39. Yes. 

Newcastle-District ... 

London-City Company. 26 per year. Yes. 

Westminster City. 22 per year. Yes. 

St. James City. 17 per year. Yes. 


Municipalities. Street lighting was under the jurisdiction in 
each case of a separate committee which owned the lamp posts, 
paid the electrical department for the current furnished and had 
charge of the care and maintenance of the lamps except Liverpool 
and St. Pancras, where the lighting department paid the actual 
cost of care and maintenance to the electricity department, which 
in these two cases performed this work. 

Companies. All those who did street lighting maintained and 
cared for the lamps, without further charge to the city. 

1 Each arc lamp post has two 16 c. p. lamps, which were turned on 
after midnight, when the arc lamps were switched off, and burned 1,700 
hours per annum. 


I 44. Were a budget of the estimated receipts and expenditures 
and an appropriation made up annually? 

Municipalities. The several committees of the council pre- 
pare each year an estimate of the money which they anticipate 
will be received and required during the forthcoming year. Where 
the department contributes towards the general rate of the city, 
the estimated contribution is deducted in arriving at the tax rate 
to be levied. The control of the actual expenditure is entirely in 
the hands of the committee having charge of the undertaking, and 
they are not debarred from exceeding the estimate. 

Companies. The expenditure is solely in the hands of the 
directors to act as they think fit. 

J Share and Loan Capital. 
J 1. Share capital. 

Municipalities have no share capital. 

Newcastle- Newcastle- 
Amounts. Supply. District. London-City. 

Authorized 750,000 300,000 1,200,000 

CaUed up 750,000 230,000 1,105,950 

Uncalled 70,000 94,050 


Calls in arrears 1,250 , 

Calls paid in advance ... 6,101 

Fully paid 750,000 234,851 1,105,950 

No. of shareholders (?) 989 3,378 

Amounts. Westminster. St. James. Central. 

Authorized 2.000,000 300,000 100,000 

Called up 740,755 300,000 100,000 

Uncalled 200,000 

Unissued 1,059,245 

Calls in arrears 

Calls paid in advance . . . 10,245 

Fully paid 751,000 300,000 100,000 

No. of shareholders (?) (?) (?) 

J 2. Explain how share capital was issued. 

Newcastle Supply. The share capital was composed of 
150,000 5 shares, of 'which 75,000 were preference and 75,000 
ordinary shares. The former are entitled to a dividend of 5 per 
cent, in priority to the ordinary shares which are then entitled to 
8 per cent. If any profits remain, they are to be divided equally 
between the preference and the ordinary shares. 

Prior to 1898 the whole of the capital consisted of ordinary 
shares and was issued to stockholders at par. Since then the 
company has received 155,676 in premiums, of which 137,500 
have been transferred to the depreciation fund and 18,176 to 
the reserve fund. 


Preference. Ordinary. 

The shares offered at a premium number. . 67,991 58,071 

The shares allotted at par numbered 9,370 

In 1903 shares were allotted to the Walker 

& Wallsend Gas Company, at par 7,009 7,009 

75,000 74,450 

Leaving 550 shares which have been allotted 

to employees at par 550 

75,000 75,000 

These 550 shares have been allotted as part of the bonus re- 
muneration of the employees in order to give them an interest 
in the company. The employees do not pay anything for the shares, 
but the dividends declared are credited against the amounts due 
therein, and interest is not charged upon any unpaid balances. 

Newcastle District. Of the original capital of 50,000, 
20,000 were offered for public subscription. The company has 
received as premium on stock issued the sum of 21,500, which 
has been placed to the credit of the reserve fund and used in writ- 
ing off the expenses attending the issue of new capital and mort- 
gage debentures, and also in defraying the loss on the preliminary 
working of the Newburn works. 

London City. The authorized capital is made up of 80.000 
ordinary and 40,000 preference 10 shares. The capital called up 
consists of 70,595 ordinary and 40,000 preference shares. The 
latter are entitled to a preferential dividend of 6 per cent., but 
are not entitled to any preference as to capital on the winding up 
of the company. In all cases the stock has been offered to the 
general public and shareholders either at par or at a premium. 

Westminster. The original share capital, both ordinary and 
preference, was issued at par by prospectus. Subsequent issues 
have been to the shareholders pro rata. The first issue of 28,151 
5 preference shares was entitled to a dividend of 5 per cent. ; the 
second issue of 50,000 1 preference shares, to a dividend of 4J 
per cent. Subsequently the 5 per cent, preference shares were 
converted into 4 per cent. The above 50,000 preference shares 
were all taken up by the shareholders at a premium of 7s. 6d per 
share, or 18,653, which has been added to the reserve fund. 

St. James. The authorized capital of 300,000 now consists of 
40,000 ordinary and 20,000 preference shares of 5 each. Prior to 
1899 the authorized capital was 300,100, but in that year the capi- 
tal of the company was reduced, with the approval of the court, and 
the founders' shares amounting to 100 were cancelled. The 
founders' shares carried the right to one-half of the profits after 
paying 7 per cent, to the ordinary shareholders. Differences arose 
as to ascertaining the profits, and to remove these differences 12,000 
ordinary shares were issued in 1898 to the holders of the founders' 
shares in the proportion of 120 new ordinary shares for each 


founders' share of 1. The ordinary shares of the company were 
at that time selling at a premium of about 8 per share, and seeing 
that the ordinary shares were issued to the holders of the founders' 
shares at par, this premium of 8 represents the price paid to the 
founders for relinquishing their rights. This premium does not, 
pf course, appear in the accounts. The original issue of capital 
was by prospectus, upon which the stock was taken up by the public. 
The original shares were issued at par, and subsequent issues were 
made at a premium. 

Central The share capital of 100,000 is held in equal 
amounts by the Westminster and St. James companies. It has 
all been issued and paid up in cash at par. There has been no 
public issue of capital. 

J 3. Loan capital. (Debenture stock or mortgages are analagous 

to bonds in the United States.) 

Towns. Authorised. Issued. Paid Off. Outstanding. 

Manchester 2,359,546 2,216,931 '238,696 1,978,235 

Liverpool (?) 1,519,202 113,209 1,405,993 

Glasgow 1,400,000 1,290,000 83,668 1.206,332 

St. Pancras 478,457 478,457 54,803 423.654 

Newcastle-Supply 250,000 250,000 250,000 

Newcastle-District.... 150,000 150,000 150,000 

London-City 800,000 700,000 700,000 

Westminster 250,000 250,000 250,000 

St. James 150,000 150,000 150,000 

Central 500,000 336,876 336,876 

J 4. Explain how loan capital was issued. 

Manchester. The money was raised under mortgage in sums 
of not less than 100, repayable in 3, 5, 7 and 10 years. The Local 
Government Board has allowed about 26 years upon an average 
within which to repay debts, and the money has been borrowed on 
shorter terms and renewed from time to time. 

Liverpool. Part of the stock was issued at a discount, and 
this and the costs of issuing the stock amounting to 41,981 were 
included in the capital outlay. The stock was issued by public 
advertisement, and in addition a commission was paid to agents 
for procuring loans. 

Glasgow. By public subscription. 

St. Pancras. By loans from the London County Council and 
the Prudential Assurance Company. 

Newcastle Supply. Public subscription for 4 per cent, mort- 
gage debentures at par. These debentures constitute a first floating 
charge on the whole of the company's property, present and future, 
including its uncalled capital, redeemable at the option of the 
company at any time after three years at six months' notice at 105 
per cent. 

1 This amount is greater by 4,471 than the amounts given under 
inquiry I 33, the explanation being that loans amounting to 4,470 hare 
been repaid out of bank overdraft and not by sinking fund. 


Newcastle District. The mortgage debenture stock was of- 
fered for public subscription by a prospectus dated June 5, 1905. 
The stock bears interest at the rate of 4 per cent, and is redeemable 
at 105 per cent, at any time after July 1, 1910, upon the company 
giving six months' previous notice. Under the trust deed, whereby 
the assets of the company are charged with the repayment of the 
principal and interest due to the holders of the mortgage debenture 
stock, the amount which the company may raise is limited to one- 
half of the capital subscribed for the time being. "Subscribed 
capital" includes the total amount which the shareholders agree to 
contribute in respect of shares allotted to them, and the borrowing 
powers are not affected by the fact that only part of the subscribed 
capital has actually been paid in cash. The debenture stock is 
secured by a mortgage of the company's freehold and leasehold 
properties, and is a floating charge upon the remainder of the 
company's property and assets, but not upon the uncalled capital. 

London City. In all cases offered to the general public and 
to shareholders either at par or at a premium. The company has 
issued 400,000 first debenture stock 5 per cent., redeemable at 
125 on six months' notice after 1910. This stock is a general charge 
over the whole of the assets and is secured by a trust deed which lim- 
its the amount to be borrowed to 500,000, including the premium. 
The whole has been raised. The second debenture stock 4^ per 
cent, has been raised under a similar trust deed. It ranks after 
the first debenture stock and is redeemable at par. 

Westminster. The original capital was offered for public 
subscription. In 1900, the old 5 and 4 per cent, debentures were 
redeemed and 3 per cent, debentures issued. The cost of this 
redemption and of the issue of new stock was charged to the revenue 
account. The mortgage debentures are a floating charge upon the 
whole of the assets of the company. There is no trust deed charg- 
ing the property. 

St. James. By public subscription. The present issue was 
made as a discount of 4 per cent., which discount 6,000 was 
charged against the capital reserve fund and does not appear on 
the assets side of the balance sheet. The directors may borrow 
up to one-half of the nominal capital of the company, unless by 
sanction of the company in general meeting. The full authorized 
amount has been raised by the issue of 3 mortgage debenture stock 
and secured by a trust deed as a first charge upon the whole of 
the company's assets. 

Central. The first issue of debenture stock of 250,000 was 
made by prospectus dated July 5, 1901. It is redeemable by the 
company at par on December 31, 1931, or at any time at 110 upon 
six months' notice. It is secured by a trust deed forming a first 
charge upon the undertaking of the company, and by the joint and 
several guarantee of the St. James and Westminster companies both 
as to principal and interest. A further issue was made in Decem- 
ber, 1904, of 50,000 debenture stock to rank pari passu, with the 


foregoing issue redeemable in the same manner. This latter stock 
was issued at a premium of 5 per cent. 

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 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 central government for the purpose of making the outlay. 

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: 


Loan debt outstanding 1,206,332 

Loans repaid by means of sinking fund 83,668 

Add : Surplus and other funds 153,423 

Deduct: Capital outlay 1,384,863 


Made up as follows: 

Debts owing to plant 24,826 

Stocks on hand 41,990 

Cash in bank.. 878 

Deduct : Sundry creditors 9,134 


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 

Add : Surplus and other funds 35,631 

Deduct: Capital outlay 498,027 


Made up as follows : 

Sundry debtors 25,967 

Stores in hand 6,613 

Cash in bank and in hand 30,905 

Less : Sundry creditors 47,424 


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 : 


Share capital 750,000 

Loan debt outstanding 250,000 

Temporary loans 61,089 

Add : Surplus and other funds 199,304 


Deduct: Capital outlay 1,211,286 

Office furniture 5,320 1,216,606 


Made up as follows : 

Sundry debtors 59,924 

Stores on hand. 31,396 

Cash in bank and on hand 4,023 

Investments 115,125 

Deduct sundry creditors 166,681 


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 


Add : Temporary loans 36,200 

Surplus and other funds 22,234 

Deduct from capital outlay 470,518 


Made up as follows : 

Bank overdraft 6,763 

Sundry creditors 34,824 


Less : Debts due to plant 13,500 

Stores on hand 736 

Cash in hand 118 14,354 



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 

Deduct: Capital outlay 1,052,781 


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 

Deduct : Sundry creditors 67,578 


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 

Less : Capital outlay 431,657 

Add : Surplus and other funds 69,665 



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 

Less : Sundry creditors 37,095 


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 


Made up as follows : 

Creditors 7,991 

Bank loans 20,000 

From reserve funds 1,324 


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 

Westminster Surplus funds out of revenue. 

St. James Loans, surplus funds out of revenue and capital 

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 


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 

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 


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 






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 a 498,027 

5,500,119 5,932,355 

Newcastle-Supply . . 
Newcastle-District . 



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 

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. 






to* t-CO 
S T-?' >-"i" 


rH CO 

,2 . GO-* 


=0 . to CO 

-^ to o 

O t-; O 


S) O O JD t 

.t; >~ S cc x 


i to o" co of 

~ O O Tf I 
O rH_ I- rH CM 


t *- * to o x co 
x S 4 oo C5. t^ e* 

x ? 5 cc to t- CM 

"^ ?>-* (M rH 

m q +J 

o "5 ,> o o i- M 



. CM * 

g CO CO i 

C0_ rH ' 

^: cs -t o ' '. w r- 

ts c c: f es r- t- 

i, l> rH_ CO X, CO O_ 

"S t- * *! C-f r-" CC 

r- --W -r 1 CM rH 

53 g 

*> X CO to t- h- ; 

c> oo ?i i^ ^ Q : 

^ . C 

C C 00 

P a 

~ ' if O CC 

o to CM cs x 

O X OS_ SO,tt. 

h to os CD 




r- . 


ci g Vi t 



~ "<X ^ 



g H 


OS r-* Tj-" 5 

| \ 




i i 

' ' 



r^ CO 


o 3 


t c* to 



r-j C 



' to 


z * 


to CO O 







"S ^ 







CM OS l- 







CM * 





I ^ 


i-l TH 

; oo" co" 

. 1- OS 

; os 

















































emiums c 

r r 

abilities t 





























































r _ - 













^3 IT* 


CO 3 




^_ 3 

t** 'tu 



*^ r-^ 








CO -I-l 

^ ^ 















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 pr