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National municipal review, February, 1920

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Title:
National municipal review, February, 1920
Series Title:
National municipal review
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National Municipal League
Woodruff, Clinton Rogers
Graser, Ferdinand H.
Dodds, H. W.
Bruere, Henry
Goler, George W.
Anderson, William
Hatton, Augustus R.
Buck, George S.
Buck, A. E.
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Philadelphia, PA
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National Municipal League
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English

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serial ( sobekcm )

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Volume 1, Issue 1

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Auraria Library
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Copyright National Civic League. Permission granted to University of Colorado Denver to digitize and display this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.

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Full Text
NATIONAL
MUNICIPAL REVIEW
Vol. IX, No. 2_FEBRUARY, 1920____Total No. 44
VIEWS AND REVIEWS
i
Our committee on nominations was more adventurous this year than usual and has brought to our colors the important leadership of Charles E. Hughes as our President.
Of all the men conspicuous in American public life, Mr. Hughes is the one best prepared to co-operate in our enterprizes by an accumulation of matured convictions based on experience as governor of our most populous state. When we deal with problems of state re-organization, state finance, election laws, short ballot, legislative rules, utility control and many other questions relating-to forms of government, we deal with questions wherein he was a pioneer among all governors. As governor his incessant rejection of expediency and compromise in favor of principle was an inspiration; his tactics of “defeat me on this issue if you dare” were new to politics. His has been a name to conjure with in New York ever since and even the Democrats were competing for the honor of installing his defeated reforms years after he left Albany. When accepting our nomination, he told Mr. Purdy that he plans to devote more of his time hereafter to public matters. Ours is the logical outlet for his energy and the problem will be to make our programs worthy of his valuable time.
In inviting Mr. Vanderlip to accept
our treasurership, we were again taking advantage of an announced determination to retire from active business to spend more time on civics. We told him of the far-reaching development of small-city chambers of commerce with modern local civic programs and of our need for evidence that our work is not for specialists only but deserves the attention of public-minded business men.
Our secretaryship remains vacant, but through no lack of diligence in the nominating committee. Mr. Woodruff, now and forever our honorary secretary, happily has consented to fill the gap.
In the new council the feature is a larger number of business men and of women.
ii
Our annual meeting at Cleveland was in its attendance typical of these meetings in late years and as baffling as usual to the management. The attendance was mainly professional civic directors, coming because this is the annual outing of their fraternity and the only opportunity to meet their fellows. When they had speeches to emit they entered the convention room; otherwise their preference was for the personal informalities of the always-interesting lobby and for the cozy heart-to-heart talks at the professional problem meetings organized by the civic secretaries’ association
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and the governmental research conference. It was not always easy to muster a decent quorum to listen to a formal discussion of great current public problems. It sometimes seemed as if Mr. McClintock of Pittsburgh, who has never an axe to grind or a word to say on the floor, were the only one who had come to be instructed rather than to instruct! The others in the audience inattentively awaited their turn at the platform; Mr. McClintock and the stenotypist got it all!
Mr. Woodruff observed that in the early days of the League, non-professional good citizens made up our whole attendance. Of course in those days the civic professional hardly existed anyway, but why should the layman have retired as the professional appeared? Did they proceed to save themselves the journey as soon as they had professionals to send? Is the layman in the local organizations now doing his work there more by proxy too? Is civics getting too technical for the layman? Are we to look forward to a membership made up exclusively of paid civic secretaries, bureau directors, college professors and reference libraries? With the cramped finances that such a limited backing suggests? Or can we translate civics into terms that will catch and hold the attention of the rank-and-file membership of the city clubs and civic leagues and chambers of commerce and thus exert a large direct influence upon a big lay membership?
hi
The moot constitutional convention at Cleveland was by general agreement a success—that is, it was found to be interesting, it held the attendance for inhumanly long hours and brought out some excellent and authoritative debating. Unfortunately two of the sharp-
[February
est conflicts of opinion, those on civil service and budget, were not carried to the floor but were settled in committee, the minority refraining from an appeal to the convention. There were numerous novelties that secured prompt and unanimous support—the single-house legislature, for example— and in other cases there were equally unexpected splits. The committee that is now to draft a complete model state constitution for submission next year starts with many illuminating test votes.
IV
The ascent of the hill of progress has such a moderate grade that it is not until we look back that we realize how much we have risen. Such sensations are particularly striking in the “Valedictory” which Mr. Woodruff has written for this issue. Nothing could have seemed much more forlorn than the prospects of that little organization which Mr. Woodruff held together by his youthful devotion and personal willingness to do the drudgery without salary for an indefinite period, twenty-five years ago. The whole story of municipal progress in America is compassed in that quarter-century from its beginning in 1894 before the first victory over Tammany in New York city had lighted the torch of hope for reform in municipal affairs in America to the present when the League turns its attention to state and county government because its work in the municipal field is so nearly done.
Mr. Woodruff’s main contribution to the movement was the League but it is not necessary to demonstrate that Mr. Woodruff did this or that in the long upward effort; no man could have occupied so central and busy a position in the work for twenty-five years without contributing vastly to the result!
Richabd S. Childs


A VALEDICTORY
BY CLINTON ROGERS WOODRUFF Philadelphia
Twenty-five years have witnessed many changes in the field of government, the great majority of them, I am persuaded, for the better. For one thing government as such, in its various phases, is no longer ignored. Constructive minds are engaged in its study and improvement. This is a great gain. When the National Municipal League was organized in 1894, government was about the last thing to claim the attention even of the most conscientious citizen. To-day it is receiving the definite, unremitting consideration of a lengthening list of civic bodies; of business men, in their individual and organized capacity; of institutions of learning; of students and investigators. It is quite within the mark to declare that government— federal, state and municipal—is coming into its own.
Twenty-five years ago systematic instruction in government was incidental and infrequent. Instruction in municipal government was unknown. Eighteen years ago when the present professor of municipal government at Harvard began his work there were only two courses given—one at Columbia, the other at the University of Michigan. There was not a single text-book suitable for use. There were no sources of information such as are now provided by the bureau of the census; the municipal reference libraries; the bureaus of municipal research and similar bodies or by the National Municipal Review or the American City.
Contrast that situation with the one that exists to-day. The amount of instruction has steadily increased
and its character has steadily improved so that it is now possible to say that “from the point of view of getting text-books and materials municipal government is the easiest subject in the whole range of political science.” Sources of information have multiplied so rapidly that it is a difficult problem even for the specialist to keep abreast of their output. The list of publications, books, pamphlets, periodicals, is a continually lengthening one. To-day no other one subject is receiving more thoughtful attention at the hands of teachers and publicists. This is especially true of the municipal phases.
These developments clearly indicate that the work of the National Municipal League has not been in vain. In season and out it has stressed the necessity alike for interest in and attention to municipal affairs and latterly it has extended this emphasis to include state and county affairs, which may now be said to be coming into their own, to their manifest advantage and improvement.
“Municipal affairs ” is a phrase which to-day includes a multitude of things that a generation ago were not discussed even academically. One has only to study the budget of the present-day city to appreciate how manifold those affairs have become. Not only numerically but intrinsically they have grown in importance and this constitutes an important feature of the present public interest in them. If one wishes to gain a still different and fuller conception let him take up the annual volumes of the Proceedings of the National Municipal League and study
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their contents. They are something more than a storehouse of current municipal events; something more than a record of significant happenings. They represent the growth of a great movement in modern life; the development and flowering of an effort that has gone far to remove the odium that once rested on American cities and to establish them on a basis where, it can be said, there has been “a growth of public opinion toward rightness.” More, too, can be said. There has been a steady growth toward responsible, efficient, democratic government.
Let no man be misled by these statements. The millennium is not here, nor is it likely to be ushered in during the lifetime of even the youngest among us. Progress, not finality, is all that can be reported. It is all that can be reasonably expected of any human endeavor. Within the generation in which the National Municipal League has been at work municipal government in the United States has been changed from a source of shame to one of pride. Graft has become the exception, instead of the constant characteristic. Indifference and inefficiency are yielding to interest and efficiency.
Many have been the experiments tried within this period. Some have failed, others have succeeded. The significant thing is that they have been tried and are being tried. Scientific opinion is still divided as to the direct primary; the initiative; the referendum; the recall; preferential voting; proportional representation; commission government, the commission or city manager form. They are, however, being tried out conscientiously and those most deeply believing in them are seeking to improve the machinery of their application and to meet and overcome their defects as they are disclosed.
While public opinion may likewise be divided as to their wisdom; there is no gainsaying that they are put forward in a conscientious endeavor to improve the machinery of government; to make it more responsible and responsive to the people and their will and to wed efficiency to democracy.
Home rule for cities, once a far cry in the wilderness, is to-day the guaranteed constitutional right of the cities of one quarter of our states and bids fair to become the policy of many more in the near future. It is difficult to appreciate what this means to the future of municipal government in this country and to our states as well. It is truly a mighty factor, at one and the same time for municipal government and for an efficient administration of state affairs. Along with the direct election of the United States senators it has helped to realize the demand that for really efficient democratic city government the latter must be divorced from state and national politics. It has also helped to make people think of city affairs in municipal terms to a degree little dreamed of when the Philadelphia conference for good city government met in 1894. Then the chief interest in city affairs was almost wholly critical. There was little or no substantive or constructive study or suggestion. The chief actors in volunteer municipal work were keen critics and ofttimes the most successful reformers were those who most vigorously cried “turn the rascals out.” Such attention* stimulated interest for a time; but the reaction was great. Usually one group of rascals succeeded another and there was nothing but a change of personnel to be noted.
Unfortunately the improvement in the personnel of our city officials has not kept pace with improvements in other directions, although substantial changes for the better are everywhere


1920]
A VALEDICTORY
65
to be noted. There will be no lasting improvement in this connection until the short ballot becomes an established fact. This change will come less quickly than others because of the “vested interests” of the great political organizations, which will yield with the greatest reluctance and only in the last trench. For the short ballot means the substitution of citizen management for party organization. Whether the latter will ever cease to be necessary is a question upon which there is a sharp difference of opinion. There is no doubt, however, that party ties, particularly in local contests, rest far more lightly than they did a generation ago.
The city-manager movement may be justly regarded as the ripest fruit of the movement for better municipal government. It embodies the short ballot; responsiveness to public opinion; concentration of executive power and responsibility; expert administration of city affairs; the elimination of legislative control over administration; all essential principles of sound governmental practice. The success of the plan has been abundantly proved, although here and there expectations, because unreasonable, have not been met. It can be deliberately said that the city-manager plan has arrived. Like other governmental agencies it is open to change and improvement; but to-day it stands as the big contribution to political science of the past quarter of a century. Moreover, its expanding application to a lengthening list of cities is developing municipal policies as perhaps no other single factor. It is helping to convert theories and dreams into facts. City planning, zoning, budget making, the prepara-
tion of adequate and carefully devised plans for transportation, intelligent housing, all have felt an impetus due to the increase in the number of experts in municipal affairs. Each in itself a highly specialized subject, it naturally expands when encouraged by those who make municipal administration their specialty.
At Philadelphia it was said, “As go our cities, so will our states and the nation go.” If the latter are to be saved, we must first save the former. As a natural corollary, it follows that as the interest in municipal affairs develops and expands it must include the county and the state and eventually the nation. The National Municipal League has already begun to travel along that road. Committees on state and county government are at work and we may soon expect to see a model county charter and a model state constitution take their place along side of the League’s model city charter, already widely recognized as one of its most substantial contributions to the cause to which it has devoted its energy.
To have been associated with this movement from its conception; to have been present at its birth; to have shared in its growth, is a heritage of which one may well be proud. As I stand here to-day to utter my valedictory, after twenty-five years of service in this organization, conscious that I have been a part of a nation-wide effort to place American cities on a firmer and more honorable basis, I am overcome with sadness at the parting, but the memory of the joy of the work with you and your predecessors is a worthy recompense.


OUR MOOT STATE CONSTITUTIONAL CONVENTION
BY FERDINAND H. GRASER Philadelphia
I
With an attendance representing every section of the country and many varied vocations, the twenty-fifth annual meeting of the National Municipal League, held at Cleveland, Ohio, December 29, 30, and 31, 1919, tried an interesting novelty in convention methods. At the same time it signalized the entrance of the League into the field of state problems, for hitherto the questions considered at annual gatherings have had to do almost exclusively with city affairs; or, if they touched on county and state governments, it was usually with reference to their reaction upon the cities. Hereafter the entire commonwealth, with all its departments, divisions, and activities, will be the food brought to the table for dissection or digestion.
The meeting on two of the three days assumed the form of a moot state constitutional convention, to which the members of the governmental research conference and of the national association of civic secretaries, as well as of the League, were invited. Cleveland was also at this same time, the scene of the annual meetings of the American political science association and the American historical association, a fact which happily brought to several of the sessions men who in other years could not attend, though much interested, because their chief allegiance was elsewhere.
Carefully prepared planks for a model state constitution were brought to the opening sessions of the convention by men who have for years given
special study to certain divisions of state government. These planks were read, discussed, amended, and referred back to the writers, for revision and presentation on the last day, when they were given further attention by the convention as a whole, and then sent in toto to the committee on state government of the National Municipal League, to be used as basis for a model constitution that can later be issued with the recommendation and backing of the League.
Just as the model city charter has been of untold help to a hundred cities which have within the past few years recast their fundamental law, so this new state charter or constitution, it is safe to say, will aid mightily in guiding the statesmen of perhaps a score of commonwealths, which have under consideration, or will soon have, suggestions for revising or amending their constitutions. And again the League will justify its existence and prove itself, ever young with its increasing years of experience, forward looking, up to the minute in listening to suggestions for improvement in government, fair in testing them out, sagacious in its advice for their adoption where they will do the most good.
A change in executive officers of the League comes simultaneously, though not intentionally. The Hon. Charles Evans Hughes of New York, a former justice of the supreme court of the United States, succeeds Mr. Lawson Purdy as president, who, after five years’ service, found himself unable to give the League the attention it required. Mr. Frank A. Yanderlip of New York city, former secretary of the


OUR MOOT STATE CONSTITUTIONAL CONVENTION 67
treasury, becomes treasurer of the League. The office of secretary has not yet been filled. Mr. Clinton Rogers Woodruff delivered his valedictory at the twenty-fifth annual meeting, which marked the rounding out of a quarter of century of service with the organization. The council of the League will select his successor.
xr
The moot convention had its moments of spectacular and dramatic interest, its lights of intellect, its shadows of doubt, and its periods of gloom and of laughter, for with all shades of opinion represented by the men and women on on the floor, the discussions at times waxed spirited and warm. It must suffice here, however, to deal with the high spots, and to refer the patient reader for details to the final draft, which the committee is to present next year.
Every state constitution should, of course, begin with a bill of rights; on the other hand, it should not; for our rights are sufficiently safeguarded by the fourteenth amendment to the federal constitution. There at the outset you have conflicting views! The committee of one, Prof. Albert Bushnell Hart of Harvard brought with him eighty-one sections from various bills of rights found in existing state constitutions, which he said could be boiled down to thirty, and he proved it. The Convention decided to submit the thirty to any body of constitution makers who desire the best thought of the day in such a digest, but with a prefatory note saying that they are not really essential, after all.
The convention was not ready to give unqualified approval to the so-called state-manager plan,1 as recommended by the national short bal-
1 National Municipal Review, vol. viii, pp. 707-709.
lot organization, represented by Mr. Richard S. Childs. The plan, however, received a cordial greeting, both because of the careful manner in which it had been formulated, and because, as its author pointed out, it was the logical development of the League’s advocacy of the city-manager plan for municipalities. In brief, it reduced the governor to the position of presiding officer of the legislative council of nine, by which he was to be elected, with no veto or appointive power. The legislature would consist of one house of seventy-four members, the only committee of which would be the legislative council. The principal functions now exercised by the governor would be taken over by the administrative manager, elected by the legislative council, who would appoint and remove all heads of departments.
To this plan, which was ably supported by Prof. A. R. Hatton and others, strong objection was made by Dr. Charles A. Beard, minority member of Mr. Child’s committee. Dr. Beard opposed the majority report with such effect that the convention, which on Monday leaned toward the adoption of the majority report, was swung back to the historical conception of governor and legislature with separated powers, but with the rights of the people safeguarded by proper methods. Dr. Beard believes that a legislature elected on the principle of proportional representation need not be larger than forty members, but the convention agreed to seventy-four. He was skeptical of the advantage to be derived by a state manager, pointing out that no city of the first magnitude has yet tried the city manager, on account of the necessity for political leadership in the executive.
Under Dr. Beard’s plan the governor would be elected by the people, with absolute power to appoint and remove


NATIONAL MUNICIPAL REVIEW
[February
€8
heads of departments, would prepare the budget, which the legislature might reduce but not increase; and would have the power to dissolve the legislature when it defeats any of his measures. The legislature, organized with one committee on appropriations and revenues and one standing committee for each of the major branches of state administration, might, on the other hand, call a general election to support it in any break with the governor. There would also be introduced the recall principle.
hi
In other directions, the League substantially followed the precedent set in former years. It renewed its allegiance to proportional representation and showed how it might be written into a state constitution. It adopted a brief budget provision, and recommended the initiative, referendum and recall as parts of fundamental state law. Unification of all courts in the state through a single administrative system was provided in a series of sections drafted by the American judicature society. The convention favored the appointment of judges, generally speaking, by the governor; and voted against the appointment of any judges by the chief justice. It stood by the principle of local self-government in the matter of supervision by a state civil service
commission of all local public servants; but would permit a state auditor of public accounts to prescribe methods of accounting for counties and municipalities. The League’s Model Charter proposals for municipal corporation provisions, were adopted without change. The declaration on taxation is limited to a single sentence declaring that “the power of taxation shall never be surrendered, suspended, or contracted away.” An educational requirement for the suffrage was favored, and it was desired that a woman’s status with reference to voting should not be affected by marriage. A friendly attitude toward the demands of labor for legislation as to number of hours of work and as to social insurance, was manifested. Three methods of constitutional amendment were approved: proposal by the legislature; by the electorate, through the initiative; and by a body especially selected for the purpose; all of these would require for their consummation the approval of the electorate in referendum.
The present constitution of the state of Nebraska formed the groundwork of all the suggestions made, and of the discussion, and one of the delegates to the Nebraska convention now in session, Mr. Addison E. Sheldon, who participated actively in all the proceedings of the League’s meeting, declared that the amendments proposed would have immediate consideration in his state.


A CITY THAT RAN A FARM
BY H. W. DODDS Western Reserve University
1
Rising prices of foodstuffs and consequent unrest have stimulated new speculation and some novel experiments concerning the food supply. It remained for the city of Allentown, Pennsylvania, a town of 75,000 population, to undertake a municipal farm, the products of which were marketed in competition with the commission merchant and retailer.
In 1916 the city council bought a farm of 480 acres on the outskirts of Allentown as the site of a sewage disposal plant. Its construction was interrupted by the war, and rather than lease the tillable soil to private individuals, the superintendent of parks began in the spring of 1918 to operate the farm as a public enterprise. The original plans for sewage disposal were later abandoned in favor of the electrical oxidation system, and the land was held frankly as a municipal farm.
The 275 acres of tillable soil have been cultivated with paid help as any farm of the size in Pennsylvania. No attempt has been made to employ prison labor in this connection. In addition to the usual grain crops, an extensive variety of truck has been raised and a drove of 125 pigs was supported from city garbage. The products have been sold from city trucks at the curb markets and at cost in one or two private stores.
The superintendent of parks, to whose initiative the whole program was due, distributed the supply among the markets with the definite purpose of controlling the general price. “My main object in running the farm,”
he states, “was to obtain enough produce to enable me to go into the market and, by selling city products at a fair price, make it impossible for dealers to profiteer in vegetables.” Products offered for sale were advertised in the local papers and the prices quoted in advance. Housewives came to call these prices “city prices,” and they exerted a real influence at least on the market at which city products were being sold. The “ city prices ” were generally lower than the prevailing retail prices, and on a number of occasions brought distinct cuts in retail markets, which, its promoter believed, went to increase the value of the farm as a social agency. The farm did not provide sufficient quantities to control prices universally throughout the city, but its sponsors claimed that within two years the city could control a margin of the supply sufficient to fix prices throughout the city.
The management constantly strove to make the project pay and by providing easy selling facilities through the curb markets to encourage food production in the community. Toward farmers the attitude was one of co-operation in securing a fair price, but toward the produce merchants the attitude was active competition. In fact the produce dealer was assumed to be a profiteer •per se. The plan was to sell at cost plus a fair profit and not to undersell the farmers who market directly at reasonable prices.
The utilization of the garbage on the municipal farm was still under trial, but those in charge hoped that eventually the city would be able to raise
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3,000 hogs, the number which could be supported from the garbage supply of Allentown. The farm was able to dispose of less than 5 per cent of the total garbage and the city is paying a good sum for garbage incineration. The hope was to turn this outlay into income. Another prospective source of revenue was the utilization of the pasture land and grain crops for fattening cattle and sheep for market. All the crops would thus be marketed eventually in a form ready for direct consumption by the people.
The financial experience was encouraging. In response to the charge that the farm was wasting the people’s money, a committee was appointed by the city council at the end of the first year to appraise the assets and audit the books. The findings of the audit committee placed the value of the equipment, crops and cash on hand at $3,000 more than expenditures in equipping and operating the farm for the first year. The year 1918, however, was one of rapidly rising prices for farm products, and this favorable balance was wiped out later by the ravages of hog cholera and a drop in the price of the corn being held for market. As a consequence the management was glad to be able to break even on the first year’s venture. At this writing it is too early to know the financial experience of the second year. Adequate steps, however, were taken to prevent a recurrence of the cholera. Those behind the undertaking frankly viewed it as an experiment, and believed that it would take five years to determine whether or not it was practicable.
ii
In considering the merits of the plan and its possible extension to other cities, it can be seriously doubted
whether this is a propitious field for collective enterprise. It is designed to get at the profiteer by an indirect method of fixing the market price. But this will not solve the difficulty of the food supply. A broader plan will seek to make each community self supporting through the encouragement of home production. Wide awake municipalities will establish easier and more direct collection, distribution and market facilities. Some are going further by providing the farmer with commercial credit on terms commensurate with those which his city brother enjoys, thus enabling him to respond with confidence to the better market near at hand.
An enterprise which may discourage production cannot be adopted generally. Although the Allentown management took pains to maintain the good will of the farmers who come to their markets, a department of the city government frequently offering special bargains in municipal produce will not reassure the timid farmer’s heart, and the first step towards sounding the possibilities in the food supply is to convince the farmers of the community that the home market is a good market.
Finally, food production is a highly speculative venture (the risks of which, in the last analysis, the commission merchant has escaped). Successful farming, moreover, requires strict attention to detail and prompt action in every exigency. The considerations which have discouraged successful consolidation of several farms under single capital control would indicate that farming presents difficulties in management which make it a business unpromising to municipal endeavor.
The administration of the Allentown farm was in the hands of an unusual type of city official. Mr. R. J. Wheeler, Superintendent of Parks and Public Property, believed heart and


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soul in the venture. Being convinced that the field of social enterprise must be widely extended he spared no effort, and running a farm is a man’s job, as any one will admit who has tried it.
Unfortunately, this interesting experiment will probably not be continued. The recent municipal election, the first under the new law restoring the partisan ballot to third class
cities, turned out the “socialistic” majority in the council which, among other things, had been especially energetic in continuing the sale of surplus army food in Allentown. It is now understood that the city is to have no more government food, and the “socialistic” plans of the old council have, for the time being at least, fallen by the wayside.
TO POPULARIZE MUNICIPAL BONDS
BY HENRY BRUfiRE
I
The government war loan campaigns made investors of millions who had never before known even the meaning of investments because investing was made easy and habits of regular saving were instilled. And on these two points must be based means for the democratization of investment— convenient securities within the means of all and available to all and the effective encouraging of constant thrift— these being inter motivated.
Before the war campaigns these two requirements were never combined. Securities were of such denominations and their sales methods were so repellent as to make them impossible. The encouraging of thrift was left to savings banks, which, by their very nature, could only be passive, and to building and loan associations, life insurance companies and similar specialized institutions. But the need had for some years been recognized and what were apparently experiments in the necessary direction were undertaken.
The idea of “baby bonds” was developed and New York city sold securities in $10 denominations and the United States issued $20 bonds. But these did not solve the problem
because distribution methods were no better than for the high-priced securities and because they were subject to similar fluctuations of market price. Then, too, there was no mechanism for encouraging and organizing thrift.
n
Early in 1913 the problem was the subject of conferences, in New York, of a number of prominent business men, including bankers, merchants and financial lawyers. It was urged that the matter was one of distribution, it being declared that investments could be sold in stores just like clothing or groceries. This was taken up by a director of the Northwestern Trust company in St. Paul, who had participated in the conference. The trust company had at that time $200,000 in St. Paul bonds on its hands which it could not dispose of through the usual channels. As a half jesting experiment these bonds were put on sale in a department store, sold like merchandise and in one day the whole $200,000 worth went “over the counter.” “The St. Paul plan ” achieved fame and other department stores tried it. The Baltimore Sun in ten days sold $1,000,000 worth of bonds, and “over the counter”


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sales of municipal securities have been resorted to in a number of cities, although they are still objects of interest. The sinking fund commissions of St. Paul began to issue small unit certificates based on St. Paul bonds. These were placed on continuous sale and were made redeemable at par.
This plan developed into the so-called “municipal savings bank” of St. Paul, which, after six years of operation, on July 1, 1919, had “deposits” totalling $3,635,000. In this way the bank takes up the city’s obligations at a very favorable rate and saves large sums in interest charges.
Meanwhile, in the summer of 1913, the New York conferees continued consideration of the plan and enlisted the aid of many well-known advisers and especially consulted the banking department of New York state. The thrift bond plan was finally evolved and Herbert R. Sands, then assistant director of the Bureau of Municipal Research of New York city, studied various types of savings methods and examined the practicability of the thrift bond plan. He found that existing methods were inadequate for the task of developing to the fullest possible extent the savings investment ability of the country and that the thrift bond plan seemed to meet all the demands for a universal, safe and convenient system of savings through securities distribution. As a result of the investigation, the National Thrift Bond Corporation was organized under the New York state banking laws and in April, 1917, the first thrift bonds were issued.
The thrift bond is essentially a certificate of participation in the ownership of the soundest possible securities, bought by the corporation and held in trust, these securities being confined to bonds of federal, state, county and municipal governments, representing
at least 10,000 population, in existence fifteen years without defaulting their obligations. Thrift bonds come in $10 and $100 denominations, both being negotiable. Coupons are attached to these bonds by which 3 per cent interest is paid. The cost of sale and distribution and the profits of the corporation are met out of the difference in interest rate at which the securities are bought and the thrift bonds sold. In order to make it quite easy to purchase these bonds, thrift receipts are sold in denominations of 50 cents, $1, $2 and $5, these when accumulated to a total of $10 are exchanged for a $10 thrift bond. Thrift receipts bear no interest. The receipts and bonds are cashed by the issuing company on short notice at par value. This system, therefore, combines the advantages of the savings bank and of security ownership. It makes the overwhelming advantages of government and local government securities available to the small investor.
in
The vital phase of the plan is that of distribution. The logical merchandising medium was the store—accessible and convenient. But the war loan campaigns would have been in conflict with such methods and the corporation sought other means. It was reasoned that the greatest service could be done to the nation by concentrating effort on its workers. By extending security-ownership to them many steps towards industrial harmony might be attained. At the same time the government loans might be aided by making it easier for industrial workers to subscribe to war bonds, through the easy savings plan of the thrift bond system. Under the plan as it operates in a hundred plants, the employe designates on a subscription


TO POPULARIZE MUNICIPAL BONDS
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1920]
form the amount he wishes to save each week. In each pay envelope he finds thrift receipts for that amount, which he exchanges for thrift bonds in due time. In this way the savings bank is brought practically to his bench—and there are many other phases of the plan attractive both to the employe and the employer. Over
110,000 workers are saving regularly under it.
Within the past few months the National Thrift Store League has been organized. It is proposed to join together in this league at least one hundred prominent merchants representing department stores in almost every part of the country. They will engage in a nation-wide thrift campaign through the medium of thrift bonds. The members of this league, it is estimated, employ a total of 100,-000 men and women and there will, therefore, be this number of potential security salesmen in constant touch with the large mass of the people. The co-operation of manufacturers, schools, churches, fraternal and other organizations will be enlisted and it is planned to use every appropriate advertising and pub icity method.
IV
There are two aspects which should be of interest to local government officials. How can this system affect their financial operations? How can it influence democracy in action?
The simple, nationwide, centralized organization of the thrift bond savings system means increased volume and reduced costs in the distribution of local government securities. It will, therefore, be possible for the National Thrift Bond Corporation, as its work grows, to offer better prices for these securities than the ordinary bond houses. As the underlying bonds
which are purchased by the corporation are simply deposited in trust company vaults, the present high cost of printing elaborate, engraved documents can be considerably reduced, thus affecting a further saving. As the ultimate market for these bonds will be eventually multiplied many times, it will be capable of absorption of these issues at a much steadier rate. Ultimately, perhaps, a large proportion of local government bonds issued in this country may be distributed through these channels, as the borrowings of all French cities (with one or two exceptions) are now carried on through the Credit Foncier.
The extension of ownership of local government securities to a greater mass of the population should also serve to stimulate citizen interest in the workings of local governments. The increasing proportion of “renters” in cities, who pay city taxes indirectly and, therefore, without concern, will be counteracted by an increasing proportion who participate in the ownership of the city’s securities. The-National Thrift Bond Corporation has endeavored, as far as possible, to buy the issues of those cities and states where most of its industrial subscribers have been located. Among the governments represented in this list of securities are: New York City; Newark, New Jersey; Cleveland and Columbus, Ohio; Akron, Ohio; Boston, Massachusetts; Hartford, Connecticut; state of Massachusetts and state of New York. These possible effects on citizenship are in addition to the broader social and economic consequences of the democratization of wealth.
The thrift bond savings system illustrates how American business methods and organization may be applied to the constructive solution of problems which lie at the very basis of American democracy.


THE MUNICIPALITY’S SHARE IN PREVENTING VENEREAL DISEASE
BY GEORGE W. GOLER, M.D.
Health Officer, Rochester, N. Y.
I
In your city and my city syphilis affects more than 5 per cent of its men, women and children. For gonorrhoea you must double these figures for men and women only. In certain occupations the number of persons affected with venereal disease is three times 5 per cent. Of all the waiters or waitresses who bring food to you, the barbers who care for your tonsorial needs, the policemen, the nursemaids who care for your children, double or treble 5 per cent are affected with venereal disease. This is an estimate. You want proof of its accuracy? Take these figures from various parts of the country and apply the lesson to be gained from them, and then ask if your city is responsible for the share of venereal disease which affects its people. Of 25,633* cases of various infectious diseases reported in New York city 28 per cent were syphilis. For several years before the war France lost more than 25,000 persons per annum by death from syphilis. In Prussia, according to official reports, at least 22 per cent of males are syphilitic. The Royal English Commission believes 10 per cent of the population is syphilitic. In the United States careful estimate by conservative authorities place the number of syphilitics at 10 per cent of the population.
Syphilis is one of the chief causes of insanity. From 4 to 15 per cent of all the insane in state hospitals or institu-
1 Statistical material chiefly from Yedder’s "Syphilis and Public Health,” and Stokes’ “The Third Great Plague.”
tions for the insane are there because of syphilis. In the Government Hospital for the Insane at Washington 20 per cent are there because of syphilis. In a Michigan Hospital for the Insane one third of all the patients who died there, and upon whose bodies careful autopsies were performed, had the organism of syphilis found within their bodies.
In large general hospitals in various parts of the country more than 60 per cent of all the pus operations upon the genito-urinary apparatus of women were done because of the gonorrhoeas usually contracted from their husbands.
In the hospitals throughout the country which conduct the affairs of their patients upon a really scientific basis, all of the patients are carefully examined for syphilis when they enter the hospital as a routine measure. Of many hundreds of patients examined in these large and representative hospitals, the following are the figures:
Micheal Rhees Hospital, Chicago, 28 per cent syphilitic.
Peter Bent Brigham Hospital, Boston, 15 per cent syphilitic.
Johns Hopkins Hospital, Baltimore, 20 per cent syphilitic.
But syphilis is not only found in hospitals, among the insane and abroad. Of that part of the population from which the Army is recruited in time of peace 20 per cent are syphilitic. Of college men and candidates for commissions in the Army and Navy, 5 per cent; of candidates for police (and the same thing would doubtless be true of the fire force), 15 per cent are syphilitic.
From a close study of the subject it is
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PREVENTING VENEREAL DISEASE
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believed by investigators of repute that 10 per cent of married men and women have syphilis; that 10 per cent of marriages involve a syphilitic individual; that 75 per cent of the offspring in these syphilitic families die; that 30 per cent of syphilitic pregnancies terminate in death at or before term; that 30 per cent of living births in syphilitic families die in infancy as compared with a level rate of 15 per cent in non-syphilitic families.
Williams, chief of the Obstetrical Department of Johns Hopkins Hospital, says: “Syphilis is the greatest cause of death in the unborn.” Of
60,000 blind in the United States, more than a quarter of them have been blinded by gonorrhoea. We know that gonorrhoea causes much of the so-called rheumatism in men and diseases of tubes and ovaries in women. We know that syphilis is the cause of various forms of heart, kidney, liver and blood vessel disease; that practically all the apoplexies under 50 are due to it. And yet, syphilis rarely appears in that “bookkeeping of humanity,” known as vital statistics, as a cause of death. The cause of death appears as heart, kidney, liver diseases, but the underlying syphilis, the real cause of death, rarely appears. The real causes of death will never appear in our vital statistics until controlled by universal and compulsory autopsies.
ii
Here, then, are two diseases, syphilis and gonorrhoea, known as venereal diseases, affecting men, women, fathers, mothers, sons, daughters—whole families—with disease; in the case of syphilis, handed down from one generation to another, sometimes it affects even the third generation, attacking over 5 per cent of our people. Until the outbreak of the World War 2
these diseases, and particularly the disease known as syphilis, only began to attract attention to its ravages.
Take syphilis alone! Doubtless first found as a mild disease on this continent and carried to Europe and the then civilized world, by the sailors of Columbus, it spread through Europe like a pest in the late fifteenth and early sixteenth centuries. But as time passed and the people became more resistent to the infection of syphilis, or the organism became less infectious, the disease pursued a milder course. Save for the saddle-nose deformity in infants and children, it leaves few marks readily discernible by the layman on the outside of the body. But it kills the infant before, at and just after birth; and it is responsible for much of the disease of the various organs and systems of the body, chiefly the digestive and circulatory apparatus and the nervous system, for which it has a special affinity. It attacks the body in such protean forms that it led Osier to say: “Know syphilis in all its manifestations and relations and all other things clinical will be revealed unto you.” It was a disease early recognized in its more serious forms by the old masters of medicine. Oliver Wendell Holmes said of Ricord (1799-1889), the authority of his day on syphilis: “The Voltaire of pelvic literature—a skeptic as to the morality of the race in general, who would have submitted Diana to treatment with his mineral specifics and ordered a course of blue pills for the Vestal Virgins.”
The cause of syphilis was then unknown; the cause of gonorrhoea had been discovered; but in 1905 Schaudin found the pale, delicate corkscrew-like, though boring organism of syphilis, Treponema pallida. In 1906 Wasser-mann, using the work of two Belgians, Bourdet and Gongeau, devised the


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Wassermann test. In 1911 Nogouchi, at the Rockefeller Institute, devised the Leutin or Nogouchi test, and in 1910 Ehrlich succeeded in introducing arsenic within the benzol ring and gave to us a compound, “Salvarsan” or “606” for the treatment of syphilis. And Ehrlich, as Behring had done with diphtheria antitoxin, patented the process instead of giving it to the world as Pasteur and Metchnikoff or our own Flexner and Nogouchi gave their discoveries to the people.
Armed with these laboratory tests and with this remedy, physicians felt they had a sure and speedy cure for syphilis. In this they were disappointed; for, notwithstanding the new means of diagnosis, new methods of treatment, syphilis is a disease which, for a time, often pursues such a mild course as to baffle the diagnostic ability of the doctor and to delude the patient into the feeling that there is nothing the matter with him. This disease is so amenable to treatment, so far as symptoms go, as to make both doctor and patient feel that a cure has been effected when only the evident symptoms have been held in abeyance while the disease is still present waiting to manifest itself, within heart, blood vessel, liver, kidney or nervous system. Syphilis is frequently a disease “en masquerade,” affecting the skin, the mouth, throat and nose. In its later manifestations it often leaves the skin, especially the face, untouched. But, could we look beneath the skin we would often find nests of corkscrew spirals of syphilis lurking in old syphilitic scars in multiple minute abscesses, waiting for the time to strike at a more vulnerable part of the body of its victim.
m
This, in brief, is the story of venereal disease as it affects our people. Is
there not in this story some reasons why the municipal government should have a responsibility for the prevention of venereal disease, and also for its treatment? What will the municipality do? It will suppress prostitution, public and clandestine, and care for the prostitute as an erring female, either to be restored to society or to be segregated in an institution until she dies. The municipality will provide for the free examination of all candidates before marriage, and it will prevent the marriage of syphilitics and gonorrhaics just as it one day will prevent the marriage of the insane, and as it now prevents the marriage of lepers. The municipality will provide for an extension of those free municipal laboratories already established, to which all physicians will have access, for the examination of blood and serum, both for diagnosis and treatment. It will, too, establish, both night and day, pay and free clinics, with separate hours for the sexes, where poor persons and those in moderate circumstances may come for treatment, either free or within their means. And it will provide under the police power for compulsory attendance of all persons in whatsoever circumstances, either at the clinics or at the offices of their physicians. It will compel the systematic stated checking up and re-examining of all those affected by venereal disease who have shown themselves to be free from symptoms and with negative laboratory findings, to be sure that there is no return of the disease. And it will ultimately provide for the determination of the diagnosis of all those who have died, by autopsy and laboratory study of the organs of the dead, so as to be sure that all persons dying within the municipality may have a real record of death set opposite their names. Autopsies will be conducted for the benefit of the living. Universal


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autopsies would revolutionize the practice of medicine. Not only would a vast deal of information be furnished to the doctor, but the doctor would be more careful in his diagnosis if he knew that after death the body of his patient was to be subject to an examination which would in effect be placing his diagnosis and treatment on trial. Autopsies were universal in the Army during the war and the increased sum of knowledge which has come to medicine as a result of these autopsies will result in a very great improvement, both in methods of diagnosis and treatment.
Ultimately the municipality will do all this and more for those venereal diseases which cause such frightful mortality; for many of the people whose deaths are put down as heart, kidney and liver diseases, apoplexies, rheumatism, nervous disease, insanity, really die of syphilis. Much of the rheumatism of men and the tubo-ovarian disease of women is due to
gonorrhoea. For all this the city must assume responsibility. It will do so at first not because it desires to improve morals or health, but because it will be forced to do so by economic pressure. Children are no longer imported from Europe. The labor market there is giving out. We are going to have to depend for our vast industries on our own people and their offspring; so we must take care of our people. Our people must be born well to live well. So we will suppress prostitution, insure the chastity of women by an improved economic system, treat venereal disease and keep the patient under control, by the police power if necessary, until all signs and symptoms have disappeared, so that the disease, even in latent form, may not be handed down to the generations as yet unborn; so that the potential fathers and mothers of this generation shall provide in the generation to come a state and a city free from venereal disease.


THE FATE OF THE FIVE-CENT FARE
X. MINNEAPOLIS KEEPS HOME RULE AND THE FIVE-CENT RATE
BY WILLIAM ANDERSON University of Minnesota
The necessary basis for fair dealing between the street railroads and the people is scientific valuation, but as no one knows what that is and the United States Bureau of Standards still refrains from the task of setting up standards in this field, Minneapolis, for instance, gets figures that are $10,000,000 apartl :: :: :: :: ::
The present fifty-year exclusive franchise of the Minneapolis Street Railway Company will terminate on July 1, 1923. Under this franchise, as modified in 1890 and subsequently, the car-rider is given the right to ride from any point in the city to any other point on payment of a five-cent fare. The city council may regulate service, provided it does not go to the point of confiscating the property, but it has no power to compel the construction of extensions and none to reduce the unit fare per ride below five cents. The latter point was finally decided in 1910 in litigation over the six-for-a-quarter ordinance of 1907.1
MOVEMENT BEGUN FOR A NEW FRANCHISE
Confronted by steadily rising costs of operation, and the prospect of the early termination of its Minneapolis franchise, the Twin City rapid transit company, a New Jersey corporation which holds the stock of the Minneapolis, St. Paul, and other operating companies, proceeded as early as 1914 to pave the way for a modification and extension of its Minneapolis franchise. The Minneapolis civic and commerce association lent its aid in
1 City of Minneapolis v. Minneapolis Street Railway Company, 215 U. S. 417.
1915 to secure the passage of the so-called “Enabling Act” empowering the city to open negotiations with the company for a new grant. Powerful opposition developed during the passage of this bill and it was necessary to amend it to make it more favorable to the public.
The city was cautious and deliberate about proceeding to negotiate with the company. On August 27, 1915, the council directed the city engineer, Mr. Cappelen, to proceed to an appraisal of the property. Not until September, 1916, was the work completed. He found the fair value of the property as of January 1, 1916, to be $25,914,308. Certain groups in the city thought this valuation excessive, and that fall Mr. Thomas Van Lear, a member of the Socialist party, was elected mayor after a bitter campaign in which he called upon the voters to “stop the $15,000,000 street car franchise grab.”
For the next two years, due to a combination of causes, little progress was made toward a solution. Mayor Van Lear called in a Mr. Hogarth, an engineer from the Socialist administration in Milwaukee, who arrived at an extremely low valuation of the property. In January, 1918, the central franchise committee, representing various civic organizations, presented
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THE FATE OF THE FIYE-CENT FARE
a majority and a minority report on the valuation, the former being $21,-279,932 and the latter $15,470,360. In the meantime the city'council had grown somewhat doubtful of the Cap-pelen valuation. It engaged Mr. C. L. Pillsbury, a consulting engineer, who rechecked and analyzed the Cappelen figures with the result that he reduced the total to $24,346,113.
The various valuations as of January 1, 1916, were as follows:
Street railway company’s figures. . . $35,823,376 City Engineer Cappelen’s figures. .. 25,914,308
Engineer C. L. Pillsbury’s figures .. 24,346,113
Central franchise committee majority figures.......................... 21,279,932
Central franchise committee minority figures.......................... 15,470,360
Engineer Hogarth’s figures........... 18,608,730
As the war progressed, the company fell into even greater difficulties. Labor troubles multiplied. Equipment was hard to get. It was impossible to borrow money for extensions. Gross earnings failed to keep up with the rise in costs of operation. To cap the climax, the mayoralty election of 1918 became a contest between two men both of whom were publicly committed to a low street railway valuation. The incumbent, Mayor Van Lear, favored the Hogarth valuation. His opponent, J. E. Meyers, had signed the minority report of the central franchise committee. Whichever won, the company was likely to find the mayor a strong opponent of any settlement embodying a high valuation.1 There was but one way out for the company, namely an appeal to the legislature to put the street railways under state control.
MOVEMENT FOR STATE CONTROL
In due course the people saw introduced by a rural member of the legis-
1 Mr. Meyers was elected.
79
lature, in the session of 1919, a bill to end local control of street railways. In explaining his advocacy of the measure the introducer naively stated that, although he was not from the Twin Cities, he was interested “because 10,000 persons from outside Minneapolis and St. Paul ride on the Twin City lines every day.” It was quickly discovered that the bill, while purporting to increase the powers of cities to control their transportation systems, actually authorized street railway companies to surrender up, and thus escape the obligations of, their franchises, and to receive in lieu thereof indeterminate permits. By this means their rates of fare, formerly fixed, were to be made subject to change at any time, while the power of regulation was in the last analysis transferred to the state railroad and warehouse commission. Once the character of the bill became known, the state municipal league, together with leading officers and citizens of the larger cities, carried on such a vigorous opposition campaign as to defeat the bill in the house, where it originated, by a vote of more than two to one.
DRAFTING A FRANCHISE
Again the companies had to take up negotiations with the cities concerned. By this time in Minneapolis the franchise movement was well under way. The city attorney, with the aid of Mr. Stiles P. Jones, secretary of the central franchise committee, was rapidly perfecting a draft service-at-cost franchise. Numerous blanks were left to be filled subsequently by the company and the council—one for the agreed valuation, another for the rate of return, and so on. This draft went to the'street railway committee of the city council early in 1919. Its first decision was a tentative agreement


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upon a $24,000,000 valuation and a 7 per cent return. During the summer the committee held a series of public hearings in the course of which it perfected and finally adopted a complete franchise. Mr. Bion J. Arnold of Chicago gave some assistance to the council in perfecting the details. The company kept in close touch with the matter throughout this stage of the proceedings, leaving the committee at no time in doubt as to its attitude on the major points at issue.
The proceedings of the council on the day set for the final vote were enlivened by the appearance of Mayor Meyers, who made solemn protest in word and writing against the passage of a franchise which he criticized as allowing an excessive valuation and too high a rate of return, and as violating the enabling act in several particulars. It was his first official appearance throughout the entire proceedings. At the end of his address his sincerity was challenged by one of the majority aldermen who asked him why he had not given the council the benefit of his counsel earlier in the proceedings. His answer was that he had desired to do so, but had been expressly informed by the chairman of the street railway committee that the fundamentals, namely the valuation and the rate of return, had already been agreed upon in advance and could not be considered. “When I was informed that there was no possibility of opening these points I saw no reason, in view of my other duties, for going into the matter.”
The franchise was adopted by the council on September 3 by a vote of 16 to 10, the opposition comprising the seven Socialist members of the council and three other members from labor wards. With what seemed to some people undue haste, the company accepted the proposed franchise. The
company, which had forty days in which to do so, filed its acceptance within about as many hours.
THE PROPOSED FRANCHISE
The substance of the proposed franchise can be briefly stated. It authorized the company to continue to operate a street railway system in the city’s streets for an initial period of twenty-five years, and thereafter “pending purchase by the city or other disposition of the property” for an indeterminate period. But such continued operation beyond the term of the grant was not to be “construed as a renewal or extension of the present grant.” The city expressly reserved the right of purchase at the agreed valuation plus additions, at the end of each five-year period, and also the right to acquire the property by condemnation.
The valuation agreed upon was $24,000,000 as of January 1, 1919. This figure approximated Mr. C. L. Pillsbury’s result, but since it was an agreed lump sum it was difficult to attack in detail. Extensions and additions to the plant during and after 1919 were to be added to this value at cost. Upon the valuation of January 1, 1919, the company was to be allowed a return of 7 per cent cumulative, payable quarterly. Upon all additions it was to be allowed the interest necessary to secure the required capital, plus 1 per cent cumulative. This return, while not guaranteed by the city treasury, constituted a charge against gross earnings prior in right to all payments to the amortization and surplus earnings funds, and preceded only by the charges for operating expenses, depreciation, personal injuries, and taxes.
The company was given the power to regulate the rate of fare without


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upper or lower limit. A fare stabilizing fund of $250,000 was to be created to be increased from time to time by the addition of surplus earnings. The initial fare of five cents could be reduced or increased as the fund waxed fat or grew slender. Out of any surpluses over $250,000 in this fund, the council could direct that certain sums be transferred to the amortization fund, established for the purpose of eliminating all intangible values from the capitalization. The city treasury was to profit in no respect from the company’s earnings.
The council was apparently given the full power to regulate the service. It was to appoint a street railway supervisor and his necessary assistants, whose salaries and expenses were to be paid by the city in the first instance and charged by the city to the company. The council was empowered to regulate in detail the operation of cars upon existing lines, and also to order extensions to be made. A list of six extensions to be built in 1920 and thirteen others to be constructed at an early date was given in the franchise itself. The company agreed to carry out all orders for better service and for extensions, subject to the important proviso, “that such observance of and compliance with the orders of the city council by the company will not impair the payments or funds specified in section 9 hereof.” This proviso simply meant that all operating expenses, depreciation charges, personal injuries, and taxes, and payment of 7 per cent cumulative on the agreed valuation, together with 1 per cent to the company on all new capital, over and above the necessary interest, together with a few minor payments, had first to be provided for. Only when it was clear that these would be taken care of could the company be obligated to obey the council’s
mandates. As the opponents of the franchise phrased it, 7 per cent came first, and service second. Even in case the company should refuse to obey the council’s orders for extensions or permanent improvements, this return could not be reduced below 6 per cent.
The next step in the proceedings, under the terms of the enabling act, was to get the consent of the people. As a matter of fact there intervened a court action in which the mayor, supported by nine of the ten dissident aldermen, tried to enjoin the holding of the special election. He alleged that sundry violations of the charter and the enabling act had taken place, chief of which was this: That, although the charter gave the mayor the veto on all ordinances, and although the enabling act required the franchise to be adopted “by ordinance,” nevertheless the council did not submit the franchise to the mayor for his approval. Upon studying the language of the enabling act, both the Hennepin county district court and the state supreme court rejected this view, and all of the other contentions. They held that the mayor had no veto upon the franchise, and that the draft conformed in all respects to the requirements of the enabling act. The question then went to the people.
THE CAMPAIGN FOB ADOPTION
The campaign which preceded the election was an unusual demonstration of the possibilities and limitations of direct legislation by the electorate. The franchise upon which the voters had to pass made a pamphlet of sixty-six pages and approximately eighteen thousand words. In the official newspaper it filled more than twelve columns of solid fine print. Its thirty-seven articles contained numerous highly detailed and intricate provisions,


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upon the meaning of which the leading authorities for and against the franchise differed to the very hour of the election. Naturally enough, many of the voters were bewildered.
The franchise had no sooner been passed than it became clear that two groups in the city were definitely committed in advance. One faction, dubbed “the Socialists” by their opponents, although they certainly do not form one political party to-day, were mainly opposed to the grant. On the other hand, a large group of downtown business men were for it. There was in the third place a considerable group of intelligent men,— workmen, professional men, businessmen,—who were at the outset neither informed nor committed on the franchise. They were the largest class of voters of all, and the least organized. It was they, however, who decided the election.
It is safe to say that no special election since 1900 aroused the intense interest and widespread discussion evoked by the proposed franchise. With the exception of the so-called Socialist group, the opposition were not at first well organized, but as the campaign entered its last month they picked up splendidly. Mayor Meyers and ex-Mayor Van Lear, opponents in 1918, found themselves fighting side by side against the franchise. While not so well equipped with funds for advertising, the opposition to the franchise carried on an excellent speaking campaign. Those favoring the franchise, better organized and financed from the beginning, made a poorer showing on the platform but were far stronger on the side of newspaper advertising and the issuance of pamphlet material. The weekly Rapid Transit News could be had free at all times in the street cars. Copies of the franchise were liberally distrib-
uted, and there were full-page advertisements in the leading newspapers every day. Much of this material was carefully read by the voters.
Despite the extreme complexity of the entire question, public attention was early concentrated upon not over four or five salient points. In the first place, the opposition hammered away at the valuation, alleging that it was too high. The Meyers group said $16,000,000 would be more nearly correct; the Van Lear group put the figure even lower. Too much, they said, had been added for going concern value,—and too little deducted for depreciation. Second, the rate of return was too high, they averred, and when coupled with the high valuation amounted to flagrant extortion. High fares would undoubtedly result. Third, good service was no more assured under this franchise than under the old. By the terms of the franchise the 7 per cent return had first to be assured before better service could be required. In the fourth place, near the end of the canvass, the opposition claimed to find a “joker” in the franchise in the form of a clause in the section on purchase which would permit a bare majority of the council at any time, without a vote of the people, to force the city into public ownership. This argument did not have the best possible foundation in law, and there were learned opinions to the contrary. Notwithstanding, the argument was used with telling effect. Even the Socialistic group laid stress upon this point, for they opposed having the city buy the plant in any case at what they considered an excessive valuation.
There were other arguments, too, but the result was, in part at least, determined by non-rational causes. In the first place the people remembered only too well how, in the days of its prosperity, the company had fought


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the six-for-a-quarter ordinance and had insisted upon the flat five-cent fare. Then, too, an early winter had brought much snow and cold to the city during the three or four weeks before the election. Due in large part, no doubt, to this cause, the street-car service was unquestionably very poor during the franchise campaign. Many voters, however, attributed the poor service to an intent on the part of the company to give a “horrible example” of poor service in order to convince the voters of the need of a new franchise. Those who put this construction upon the unfortunate condition probably voted against the franchise in considerable numbers. Finally the leaders of the campaign for the franchise committed the crowning indiscretion of charging that the bulk of the opponents of the franchise were Socialists, Communists, I. W. W.’s and Bolshevists. They challenged the independent voter to line up on that side if he dared, and he accepted the challenge.
DEFEAT OF THE FRANCHISE
The day of the election was cold, and there was snow in the air. Nothing deterred; over 53,000 voters of the 70,000 registered went to the polls to vote on this single question. In the second ward, an industrial district, but also the location of the state university, more votes were cast than in the 1918 general election. The result was the defeat of the franchise by over 7,000 votes.
WHAT OF THE FUTURE
The situation to-day is this: Minneapolis, having defeated successive attempts to deprive her of local control of her street railways, has now defeated a franchise under which she was promised carline extensions and better service, but at the cost of higher fares.
She retains home rule and the five-cent fare, but she has done nothing constructive to solve her transportation problems. Affairs are simply in statu quo ante. The service is poor. There is no money, says the company, either to build extensions or to improve the service. To be sure, the council has already ordered the city attorney to proceed against the company to compel the construction of two new lines, but unless the company finds it good policy to cast its bread upon the waters, to do something handsome for the city just to restore good feeling, little is to be expected but litigation.
There is no question that the next move should come from that group opposed to the late franchise, represented by Mayor Meyers and the minority of the central franchise committee. They have defeated one proposal; what constructive measures they will propose do not yet appear. If their solution is not ready for submission before the next legislature meets, it is almost certain to be confronted with a new demand from the company, and a demand more compelling than ever, to transfer them to the jurisdiction of the state railroad and warehouse commission. There will be influential representatives from Minneapolis to present this view. They will be equipped with the very plausible argument that “home rule has failed.” The legislature, which has already threshed this old straw many times, and which has long been restive under the burden of passing on so many of Minneapolis’ problems,1 will be strongly inclined to settle this question once for all by establishing state regulation.
lThe largest city in this home-rule state, Minneapolis is still without a home-rule charter. Every attempt to adopt one has been defeated. The result is that Minneapolis still relies on legislative action for changes in its charter.


THE SECOND PROPORTIONAL REPRESENTATION ELECTION IN KALAMAZOO
BY AUGUSTUS R. HATTON
Kalamazoo (population 50,000) has a close copy of the Naiional Municipal League's model charter and as it is the largest American city electing its council by proportional representation, the story of its second election is important evidence. :: :: :: ::
A year and a half ago, the story of the first proportional representation election in Kalamazoo was told in these pages.1 The second election, held on November 4, 1919, was even more interesting and instructive. At the first election, the contest swirled about the name and personality of Truxton Talbot, Socialist, labor leader and editor of a small weekly newspaper. At the second election that struggle was all but forgotten. Talbot, as a member of the city commission, had not fulfilled the dire prophesies of his opponents of 1918 and, in the meantime, important issues had arisen which turned public attention to policies rather than to personalities. These issues were the proposal to issue. $1,260,000 of bonds for the extension of the municipal lighting plant, the policy of the commission in establishing a municipal coal yard, and the continuance of the proportional representation system of choosing the commission. As the entire commission is renewed at each election there was an excellent opportunity to pass on the policies and personalities of the first commission chosen under the present charter. All the commissioners except one stood for re-election and, altogether, there were twenty-four candidates for the seven places to be filled.
1 National Municipal Review, vol. 7, pp. SS9-348.
THE LOCAL ISSUES
The extent to which the ground of municipal politics had shifted since April, 1918, may be briefly indicated. At that election Talbot and some of the candidates endorsed by him were opposed as representing all that was undesirable in socialism. For the election last November the Socialists nominated a ticket of seven and neither the name of Talbot nor of any of his associates of 1918 appeared in that list. There were many people who opposed Talbot in 1918 who, a year and a half later, were ready to declare that it was a good thing to have him on the city commission. Some of his former opponents even voted to continue him in office. A weekly paper published in the interest of the Catholic church declared, “Perhaps no commissioners have given more time or have been more active for the people than Dr. Butler and Mr. Talbot who deserve, on account of their earnest work, re-election.” (Next to the election of Talbot in 1918 that of Dr. Butler had caused most consternation.) In the same issue of this paper, and in the same column with the above statement, there appeared an answer to the question, “Why are Catholics opposed to socialism?” This was as scathing a denunciation of socialism as the most confirmed supporter of the capitalist system could wish!
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1920] PROPORTIONAL REPRESENTATION ELECTION
And yet the great underlying issue of the campaign was the municipalization, or socialization, of additional activities. During the year the commission had established a municipal coal yard for selling fuel in small quantities at cost. This startled the coal dealers. An investigation of the feasibility of supplanting the private distribution of milk by a municipal system aroused another group. Finally the commission, by unanimous vote, proposed to issue bonds to the amount of $1,260,000 for the purpose of extending the electric light plant. The city has operated a plant for a number of years for public lighting and it was now proposed to extend this plant so as to sell current to private users.
Upon these issues the opposition united and formed an organization called the citizens’ voters league. While the attack was centered on the bonds for extending the lighting plant, an effort was made to draw together all elements of opposition in the city. A bid was made for the votes of the original opponents of the new charter and particularly of those opposed to proportional representation. On the latter subject a special bulletin was issued which attacked proportional representation as un-American, confusing, a scheme on behalf of the few against the many, making it impossible for the voter to express his full will, involving a big element of chance, placing arbitrary power in the hands of election officials, not providing for majority rule and as making a recount of votes impossible. Absurd as most of these charges were, they undoubtedly had some influence. No attempt to answer them was made by those who believed in the system. The leaders were too busy fighting for the passage of the lighting plant bonds. As a result the constantly reiterated and uncombated
statements that the Hare ballot is difficult to understand and mark undoubtedly made an impression on the voters and possibly kept some from the polls.
The citizens’ voters league sponsored a ticket of five candidates standing, in some cases none too definitely, against the lighting bonds, further “socialistic” experiments and proportional representation. The league at the outset endorsed seven candidates but two repudiated its platform and stood as independents. The socialists, as already stated, nominated a full ticket of seven. The six commissioners who were willing to be candidates for re-election stood on their records, including the proposal to issue the lighting bonds. In addition to the eighteen candidates representing the three groups mentioned, there were six independents, one of whom, at least, stood on a definite platform.
THE NEW COMMISSION
The result of the election is an interesting study in discriminating voting. The lighting bonds lacked 53 of a majority, and 519 of the two-thirds majority required. At the same time only one of the candidates endorsed by the citizens’ voters league was elected, and there was no apparent connection between his success and the support of the league or his endorsement of its platform. He is a man of wide acquaintance and popularity in the city, a former alderman and a representative of the larger Dutch element in the population. Four of the six commissioners standing for re-election were successful. These were Dr. W. E. Upjohn, then mayor, A. J. Todd, Truxton Talbot and Dr. Paul Butler. The remaining two places went to independents, one to Captain C. R. Myers, a young and popular soldier


NATIONAL MUNICIPAL REVIEW
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86
who distinguished himself in France, and the other to Alexander Velleman, a leading merchant and the only independent candidate having a definite platform. The seven Socialist candidates received first choice votes varying from 12 to 59.
An analysis of the election results indicates that, on the whole, the voters approved the work of the outgoing commissioners, although defeating the proposed lighting bond issue. As to that question the voters do not seem to have been influenced by the “antisocialist” arguments of the citizens’ voters league. That organization was careful to say that its opposition to the bonds was not to be regarded as opposition to municipal ownership but to the proposition to embark on extensive expenditures during the period of high prices. This was declared time and again in the advertisements and other published statements of the league. At the same time the league did try to take advantage of whatever sentiment there might be against the expansion of municipal effort into fields hitherto regarded as private. In a separate folder objection was expressed to “using the taxpayers ’ money to enter into private business” and to the continuance of the municipal coal yard. A warning was also uttered against the possible extension of what was alleged to be a dangerous tendency. It is very doubtful whether this “viewing with alarm” influenced many voters. One gets the impression in Kalamazoo that the municipal coal yard is rather popular. On the other hand the voters were persuaded that the present is not a favorable time to make large expenditures for the extension of a public utility. There were good arguments on the other side but the fact remains that the opponents of the lighting bonds made their point with the voters while the proponents
of the bonds failed to do so. It was in this state of mind that the voters re-elected four of the six commissioners who were candidates and defeated their bond issue for electric light extension.
THE DEFEATED COMMISSIONERS
One of the defeated commissioners, George Martin, was regarded as the most conservative man of the commission while the other, William Shakespeare, Jr., was classed with the more radical element. As to Martin, his defeat was probably due to the widely held opinion that, because of his employment in an establishment in which Dr. Upjohn is largely interested, he was not in a position to act independently and thus adequately represent those who had elected him in 1918. Personal confidence in Dr. Upjohn was indicated by the fact that he received more first-choice votes than any other candidate. However, it was a common remark that he ought not be placed in a position to control two votes in the commission. Moreover, Martin clearly owed his election in 1918 to the more conservative portion of the electorate. His course in supporting the municipal coal yard and the lighting bonds lost him much of that support in 1919 and gave color to the suggestion that he was too prone to follow Dr. Upjohn who was a leader in both of those movements. In the opinion of the writer this attitude was not entirely fair to either Dr. Upjohn or Mr. Martin. On the other hand it must be admitted that Martin’s record on the commission did not entitle him to re-election at the hands of those who were opposed to the expansion of municipal activities.
The defeat of Shakespeare calls for a different explanation. In many respects he is the most interesting figure


1920] PROPORTIONAL REPRESENTATION ELECTION 87
in a city which, for its size, can probably boast more interesting figures than any in the United States. No man in Kalamazoo has so consistently fought for advanced ideas in the government of the city or given as much time to its interests. Manufacturer, employer, radical in his economic thinking, honestly trying to apply his theories in the conduct of his own business, a dreamer striving to translate dreams into facts, unselfish to a fault, fearless in fighting for what he believes to be the public good, gentlest and most lovable of men— such is William Shakespeare, Jr. And yet it was a logical result of the situation last November that, of the commissioners seeking re-election, Shakespeare should have received the smallest number of first-choice votes and should ultimately have been defeated. In spite of his advanced views, his position as a manufacturer and employer did not precisely qualify him as a representative of labor. Talbot and Dr. Butler were regarded as more nearly fulfilling the requirements in that respect. His record on the commission and his well-known views made it impossible to class him as a moderate and lost him the support of the employing class and of conservatives in general.
The election of Alexander Velleman is worthy of special comment. He is a merchant of liberal tendencies and was one of the candidates endorsed by Truxton Talbot in 1918. At the last election he stood as an independent. Had he been a member of the commission in 1918-19, he would, undoubtedly, have voted to establish the coal yard and for the issuance of the lighting bonds. But in the campaign last autumn he steered clear of these issues, announced a program of his own and kept himself and it before the public by newspaper advertising. No other
candidate, with the possible exception of Talbot, made a strong individual campaign. The commissioners standing for re-election took the position that their record was their platform and was, therefore, sufficiently known to the voters. They even placed the city manager in the indefensible position of conducting the campaign for the lighting bonds which they proposed to issue. Under these circumstances the individuality of Velleman stood out sharply and at least one part of his platform made a strong popular appeal. As a result he shared with Dr. Upjohn the honor of being elected by first-choice votes.
REASONS FOR THE LIGHT VOTE
The election brought out a disappointingly light vote, only 5,997 ballots being cast. The total possible registration, including women, would probably reach 20,000. The opponents of proportional representation charged that the light vote was the result of the system of voting. Even the Gazette, which has been mildly friendly to proportional representation, said in commenting on the small vote:
The chief reason, undoubtedly, is the determination on the part of a very large part of the electorate not to try and understand the proportional representation system of elections and to refrain from voting as long as that system is provided by the city charter. That is foolish, of course, but nevertheless a very patent fact and one that the community must face. . . . There is no question in our minds of the superiority of proportional representation over the old system of partisan ward elections. Its superiority, however, amounts to naught if the electors will not make use of it to express themselves; if the mass of the electors stay at home rather than take the trouble of discovering for themselves how it may be used. Our candid opinion after yesterday’s election ... is that so far as Kalamazoo is concerned, proportional representation is a failure. We base this


Pages 88 and 89 missing


90
NATIONAL MUNICIPAL REVIEW
[February
ELECTION OF COMMISSION
Result Sheet Number to
Name of Candidate Total First Choice Ballots Transfer of Surplus Upjohn Transfer of Surplus Velleman Result Transfer of Scott Ballots •*» •3 1 Transfer of Van Worden Ballots Result Transfer of Smith Ballots Result i : Transfer of 1 Van Broeke Ballots Result Transfer of Aukerman Ballots Result Transfer of Hallett Ballots Result
H. T. Aukerman 29 1 0 30 1 31 2 33 1 34 3 37 -37 D
Paul T. Butler 607 43 17 667 667 5 672 1 673 2 675 4 479 5 684
Fred Currier 125 5 2 132 132 132 1 133 1 134 3 137 3 140
E. M. Curry 59 1 1 61 3 64 1 65 4 69 3 72 13 85 85
Frances E. Deal 75 5 1 81 81 81 81 81 81 1 82
C. Allen Fox 259 8 2 259 269 269 269 269 269 2 271
F. A. Gallagher 102 2 2 106 106 106 106 4 110 5 115 1 116
Wm. B, Hallett 35 3 2 39 39 39 1 40 40 1 41 -41 D
Florence E. Inch 211 16 4 231 231 231 231 231 231 2 233
Carl L. Larsen 89 1 2 42 42 42 42 2 44 6 50 50
Geo. E. Martin 228 28 2 258 258 258 258 258 258 5 263
C. Rhuel Myers 291 17 2 310 310 310 310 310 310 2 312
Leslie G. Scott 11 0 0 11 -11 D
E. M. Sergeant 275 4 7 286 2 288 288 288 288 288 1 289
Wm. Shakespeare 181 22 6 209 2 211 2 213 2 215 3 218 218 3 221
Alfred R. Smith 20 0 0 20 3 23 23 -23 D
Truxton Talbot 504 12 10 526 526 2 528 5 533 6 539 5 544 8 552
A. Ten Busschen 483 10 9 502 502 502 2 504 2 506 506 506
Albert J. Todd 194 54 3 251 251 251 1 252 252 252 3 255
Wm. E. Upjohn 963 -247 716 716 716 716 716 716 716
Guy Van Broeke 30 1 0 31 31 31 2 33 -33 D
H. L. Vander Horst.,.. 190 13 13 216 216 216 1 217 2 219 219 2 221
Jerry Van Worden 12 1 1 14 14 -14 D
Alex Velleman 801 -85 716 716 716 716 716 716 716
Non-transferable
Ballots 2 2 2 4 5 9 9 3 12
Total Valid Ballots.. 5724 247 85 5724 11 5724 14 5724 23 5724 33 5724 37 5724 41 5724
franchise.” That there is anything in this language precluding that use of proportional representation in a municipal election it would be difficult to see. In 1890 the supreme court declared unconstitutional an act of the legislature which provided a system of cumulative voting for the election, from certain counties, of members of the lower house of the state legislature.1 That case is clearly distinguishable, both as to the question involved and as to its reasoning, from the present case involving the election provisions of the Kalamazoo charter.
The judge in the circuit court of Kalamazoo county, before whom the case was argued, handed down an opinion on January 3 holding the Hare system as provided in the Kalamazoo charter unconstitutional. In the mind
1 Maynard v. The Board of Canvassers, 84 Michigan, 238.
of the judge the conclusive argument seemed to be that, under the Hare system, the ballot of any voter would only be counted for one candidate though several choices might be expressed and seven commissioners were to be chosen from the city at large. To quote his language, “Does the provision of our constitution give to the elector the right to vote for every officer elected within the district he is chosen from? I believe it does. . . . This is, in my judgment, the holding of our supreme court in the Maynard case though it may be considered dictum. . . . An elector cannot
under this system vote for more than one officer, even though he votes for as many choices as there are candidates, because by the method of counting votes his ballot counts for but one candidate. It may be that this system does give both a majority


1920] PROPORTIONAL REPRESENTATION ELECTION 91
Kalamazoo, Mich. Nor. 4,1919 No. of Valid Ballots 5724
be Elected 7 Quota 716
Transfer of Larsen Ballots Result Transfer of ' Deal Ballets Result Transfer of Curry Ballots Result Transfer of Gallagher Ballots Result Transfer of Currier Ballots Result Transfer of Vander Horst Ballots Result Transfer of Shakespeare Ballots Result Transfer of Inch Ballots Result Transfer of | Fox Ballots Result Transfer of Martin Ballots •3 $ rt
7 691 7 698 12 710 6 716 716 716 716 716 716 716 Eleoted
2 142 1 143 5 148 8 156 -156 D
13 98 98 -98 1>
82 -82 D
271 20 291 2 293 2 295 5 300 24 324 2 326 26 352 -352 D
116 1 117 10 127 -127 D
3 236 27 263 1 264 7 271 12 283 11 294 21 315 -315 D
-50 i)
4 267 2 269 1 270 9 279 12 291 10 301 26 327 52 379 53 432 -432 D
2 314 6 320 320 13 333 12 345 11 356 27 383 60 443 40 483 112 595 Eleoted
1 290 5 295 1 296 2 298 6 304 45 349 8 537 38 395 130 525 54 579 D
3 224 1 225 4 229 10 239 8 247 3 250 -250 D
6 558 558 22 580 46 626 40 666 7 673 43 716 716 716 716 Eleoted
1 507 5 512 512 9 521 14 535 86 621 15 636 13 649 67 716 716 Elected
4 259 3 262 1 263 5 268 9 277 20 297 69 366 74 440 37 477 174 651 Elected
716 716 716 716 716 716 716 716 716 716 Eleoted
221 4 225 1 226 1 227 12 239 -239 D
716 716 716 716 716 716 716 716 716 716 Elected
4 16 16 38 54 9 63 26 89 22 111 39 150 52 202 25 227 92 319
50 5724 82 5724 98 5724 127 5724 158 5724 239 5724 250 5724 315 5724 352 5724 432 5724
and minority representation on the city commission, and perhaps is a much improved system of voting, but I do not think that under our present constitution it can be upheld.”
Apparently it availed nothing, so far as the learned judge was concerned, that in rendering this decision he was obliged to read the word “district” into the constitution of the state along with several other ideas surely not there expressed. He admitted that it would be valid to divide the city into seven wards, each electing one commissioner, though that system might even defeat the will of a majority of the electors. He could comprehend a constituency marked out by geographical lines and electing one commissioner but he could not grasp the idea of a constituency based on a community of opinion electing a commissioner. In other words his decision was to the 3
effect that a geographical constituency is the only kind permissible under the Michigan constitution.
This case will, doubtless, be appealed to the state supreme court. But in the meantime the city is considerably handicapped by the possibility that it is operating under only a de facto government. Already it has begun to curtail its financial operations in order to avoid legal complications. This inconvenience, together with the possibility that a decision cannot be had from the supreme court for at least six months, will doubtless be used as an argument for abandoning proportional representation by an immediate amendment of the charter. It is to be hoped that the people of Kalamazoo will not yield to any such suggestion. . They owe it to other cities of the state as well as to themselves to secure a decision from their


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highest state court as to whether proportional representation is permissible under the present state constitution. Whatever the final outcome, Kalamazoo will have given a valuable and satisfactory demonstration of the soundness and practicability of the Hare system of proportional representation.
ONE LESSON
There is one lesson from the experience with proportional representation in Kalamazoo, and particularly from the attacks against it there, which believers in the system should take to heart. Unfortunately their attitude so far has been that typical of reformers. Having written their reform into law they have straightway forgotten that the electorate needs education in the use of the new instrument and that the change to be secure must be buttressed by informed public opinion. This is desirable in the case of all reforms; it is particularly important in the case of proportional representation. For here is no ordinary change in political method, but a fundamental alteration in the conception and practice of representation hitherto prevailing in this country. It necessitates adjustments in political thinking and habits. It upsets the system of control laboriously built up by political managers and manipulators.
[February
It throws down the gauntlet to political intolerance which rises to fight it as a deadly enemy. The method of marking and counting ballots which it introduces is new and strange and, therefore, particularly subject to misunderstanding and misrepresentation. Thus proportional representation not only has to overcome that political inertia which is always an obstacle to change but inevitably raises against itself an unusual weight of prejudice, stupidity and selfishness.
The lesson to be learned is that education in the meaning and use of proportional representation should not only precede its adoption but should continue for some time thereafter. The opponents of the system do not retire from the field with their initial defeat at the polls. They were vociferously active during the last campaign in Kalamazoo. Their charges were in nearly every instance unsound, absurd and even unfair. Nevertheless, they made an impression because no one answered them. There was not even a systematic effort to call the attention of the voters to the manner in which the ballot should be marked. On the Sunday before the election the Gazette carried an editorial explaining how to mark the ballot for commissioners. That represented the whole of the instruction that the voters received before the election.


HOW COMMISSION GOVERNMENT WORKS
IN BUFFALO
BY GEORGE S. BUCK Mayor of Buffalo
Buffalo is the largest city that has tried the commission plan and Mayor Buck’s experiences, painstakingly detailed at our request, illustrate both the strength and the weakness of the charter. :: ::
In November, 1914, the people of Buffalo adopted the commission form of government by a very large majority. By the terms of our charter the mayor is made the commissioner of public safety and the departments of police, fire and health are given to him, while the remaining city departments are assigned to four other commissioners by vote of the city council. The nominations are made in a non-partisan primary three weeks before election, There may be any number of candidates in the primary, but after the primary there are only twice as many candidates as there are vacancies to be filled, and these candidates are chosen from those having the largest number of votes in the primary.
RESPONSIBLE AND SENSITIVE
Under our charter there is no difficulty in placing praise or blame. Each commissioner is responsible for the work of his department. The council can act with great speed if necessary; at the same time there is no danger of anything undesirable going through without opportunity for public discussion. The charter will not permit any action affecting a material right of the public unless the resolution by which it is to be accomplished shall lie on the table for thirty days. During that period a petition may be filed
requiring the council to rescind its action or, if it does not do so, to submit the matter in question to a referendum. During the four years that our charter has been in operation the right to appeal to a referendum has been put into effect on one occasion only, when an appeal was taken to the people from the decision of the city council to give the street railway company a six-cent fare during the period of the war and six months thereafter. While this public veto over any proposed action of the council is no doubt both wise and necessary, the members of the council are very sensitive to public opinion and, whenever any proposition is brought forward to which opposition develops, the council has always shown a disposition to give ample opportunity for the opposition to be heard. There never has been the slightest disposition to try to jam any action through without deliberation and consideration of the contrary points of view. It is an easy matter for opposition to make itself heard, because the entire council attends every hearing. It sits as a legislative body every Wednesday afternoon and as a committee on every Friday afternoon. Public hearings are given at the committee meetings and only on exceptional occasions are any hearings given at the council meetings. A citizen need attend but one hearing in order to make his views known to the council.
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QUICK WORK
Let me give an example of what the council can do in an emergency. The health commissioner asked for a conference with its members at the time of the influenza epidemic. He met with the commissioners at ten o’clock on Friday morning, pointed out the seriousness of the situation and explained the need of an additional hospital. He asked for the use of an old high school to be converted into a temporary one. He was told to go ahead and that the commissioners would back him in every way, including the necessary appropriation. By eleven o’clock of that same morning employes from the department of public works and the department of parks and public buildings were at work converting the high school into a temporary hospital. At four o’clock on Saturday afternoon, or within thirty hours from the time that the head of the department of health went into conference with the council, the first influenza patient was taken into the temporary hospital.
A distinct advantage of the commission form of government is that it combines in the council both the legislative and executive powers. If any one of the commissioners requires an amendment to the ordinances—which is but the name for the municipal laws —for the proper conduct of his department, he submits the ordinance which he desires to the council. He explains the necessity for its enactment, defends it against criticism and votes in favor of its passage. If an appropriation is needed the same course is followed. The head of the department has the right to explain and defend before his fellow legislators the necessity of any legislative action affecting his department. This is an immense aid in the executive work of any department.
[February
From my experience with our city government there is no doubt in my mind that for efficient, prompt, and responsible government there is nothing better than a combination of legislative and executive authority. All British democracies in their parliaments have this combination of legislative and executive authority vested in the same men, and the success of commission government will do much to demonstrate to the American public that there is no danger, and many advantages, in the union of executive and legislative power.
NO RECALL
There is no provision for a recall in our charter and I am glad that there is not. It is impossible for an executive to do his duty, according to his best judgment, with courage and energy without offending many people, and in almost any crisis a large element will not agree with the course which he takes. The result is that the recall would simply tend to keep an executive in constant dread of a campaign. It paralyzes vigorous action and promotes continual political turmoil.
DEVELOPING THE SOURCE OF REVENUE
Our commissioners are quite willing to spendmoney to bring about improvements in the conduct of any department. For example, soon after the new government took office it appropriated nearly $60,000 to install a better and more scientific method of assessment. As a result of this work, in four years’ time, $177,000,000 has been added to the total assessed value of real estate. This has increased the borrowing capacity of the city. It has inflicted hardship on no one because the assessments are now based on actual and careful measurements and


HOW COMMISSION GOVERNMENT WORKS
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surveys and thus are impartial. It has made it possible for the city to have the best of credit during the period of the war. This was a time when many cities suffered distinct financial distress, but Buffalo has been in an easy and comfortable position. It is safe to say that if the war had not upset economic conditions our city government would have been able to show a •very remarkable reduction in the tax rate.
Buffalo’s assessors are nominated by the mayor and confirmed by the council and serve during good behavior. It is a great improvement over the elective method. No taxpayer seeking concessions can threaten reprisal at the end of an assessor’s term for failure to be a good fellow. The assessors know that as long as they do their duty they are safe, because no commissioner would dare move for the dismissal of any one of them without good cause.
THE PRESSURE ON THE MAYOR
The pressure of public business upon the mayor of a commission-governed city of 500,000 inhabitants is very heavy. The council must hold sessions which occupy at least two afternoons of every week. It also meets as a board of trustees for the school, police and fire department pension funds. These meetings often involve hearings. Then there are special hearings from time to time upon matters of importance. There are about 1,800 men in the police and fire departments and all trials for violations of the rules of these departments must be heard by the mayor or members of the council whom he may designate, but through a subdivision of the business of our council through its own members, as a matter of fact, the mayor sits in all of the trials and reports his finding to the other members of the council. There
are nearly 2,300 employes directly under the mayor and where there are so many there axe constantly a number of new appointments to be made. There are changes from one position to another. There are many people who wish to see the mayor'in behalf of friends who are affected by these changes. There are questions of city policy about which citizens wish to talk to the mayor. There are contracts to be looked into for the purchase of supplies. There are policies to be determined and settled in the police, health and fire departments, and also large questions affecting the city as a whole which require careful consideration. There are distinguished guests visiting the city who are to be received and there are many conventions to be welcomed to the city. There are banquets and social occasions of various kinds which the mayor is expected to attend. In addition to these matters there are a host of citizens who feel that the mayor is their last resource and that he should be accessible to them at all times. When in doubt what to do they wish to consult the mayor. It has been necessary for me to take the number of my residential telephone out of the book in order to have any peace and quiet at home.
Buffalo’s old charter provided a federal form of government. The board of aldermen was composed of men elected from small wards. It happened from time to time that representatives were chosen to that board who had so strong a personal following in their districts that they were immune to the pressure of public opinion in the rest of the city. They were elected again and again and became very influential in the city government. They Were men of a type who would have been rejected by the city at large if the opportunity


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NATIONAL MUNICIPAL REVIEW
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were offered. These men were a medium for the expression of certain malign forces in the life of every community which are bound to make themselves felt, whatever may be the form of local government. But these forces find it much more difficult to make themselves a factor under the commission charter, because the commissioners are men of a different type from the aldermen and are extremely sensitive to the public opinion of the city. They are loath to antagonize the press, so that under normal conditions the influence exercised by it is out of proportion to its stake in the community. It happens at times, however, that the press does not represent popular opinion and this is particularly true before an election when the candidates are able to go before the people who form their judgments independently of the press. A striking illustration of this was given this fall, when the candidate who was opposed by all the daily papers received the highest number of votes, and again when an increased rate of fare for the streetcar company was supported by the press, but was defeated in the referendum by a five-to-one vote.
During the twenty-two months preceding the last election there were three members of the city council who generally stood in opposition to the mayor, and one other councilman, on important questions of city policy. These three men were responsible for the course which the city government took. Two of them were candidates for re-election. Only one of them was successful, and of the other candidates, the two who promised most explicitly to support the policies advocated by the mayor were elected. While there were other factors in the campaign this appears to me to be an endorsement of what the mayor, and the councilman who stood with him, tried to do.
A CONFUSION OF AUTHORITY
The fact that there were three coun-cilmen generally opposed to the mayor had a far-reaching effect in the management of the police and fire departments, which are under the direction of the mayor. Under the old charter the discipline of these departments rested with the fire commissioners and the police commissioners, who were appointed by and responsible to the mayor. In an effort to reduce the number of boards and simplify the city government the present charter vests the duties of the former police and fire commissioners in the city council. The well-known fact that there were three commissioners hostile to the mayor created a feeling in the police and fire departments that the thing to do was to appeal to the council from the decisions of the mayor, and as the council overruled the decisions of the mayor in several important cases, the effect was bad upon the discipline of those departments. As the majority of the new council will now probably be friendly to the mayor in these matters, this situation will right itself. Nevertheless, the police and fire departments are semi-military organizations for which the mayor is responsible under the charter, so that it should give the mayor the right to discipline them, and the men should have the right of appeal to the courts from his decisions, to be protected from a mayor who might attempt to make political removals.
THE NET RESULT
I am convinced that the commission form of government is a very great step in advance in solving the problem of how to attain successful municipal government. The men elected from the city at large are more representa-


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tive of the citizens and their ideals and aspirations than are a body of men chosen from small wards. Under our commission charter, unless a man is well known and a reputable citizen, he cannot possibly be chosen to have a part in the city government. Under the system of ward representation a man may become very influential and yet be of such a character that the city as a whole would reject him at once if the opportunity were presented. The small city council can act quickly; nevertheless, it is so sensitive to public opinion that it will not abuse its power to do so. The combination of legislative and executive authority makes for efficiency and ease in administration. The individual citizen can quickly and
at a single hearing bring his views before the council. Responsibility is clear and the citizen has no difficulty in deciding who is to blame for any feature of the administration of the city which does not meet with his approval. Taking all these considerations together there is no doubt, from Buffalo’s experience, that commission government is a long step in advance in the solution of the difficult problem of successful administration of the affairs of American cities. Probably the details of the form in which it now exists will be improved upon as experience shows where changes can be made to advantage, but I believe the general principles involved have come to stay.


BUSINESS SESSION OF THE NATIONAL MUNICIPAL LEAGUE At Cleveland, Ohio, December 29, 1919
The business session of the twenty-fifth annual meeting of the National Municipal League was held in connection with a dinner and smoker, at the Hotel Statler, Cleveland, Ohio, December 29, 1919, at 7 p.m.
Between the dinner and the convening of the business session, Mr. Lawson Purdy, president of the League, referred feelingly to the retirement of Mr. Clinton Rogers Woodruff after twenty-five years’ service as secretary of the League. Mr. Purdy took this occasion to present to Mr. Woodruff, on behalf of members of the National Municipal League, a silver humidor bearing the following inscription:
As every institution is but the lengthened shadow of a man so the National Municipal League hereby gratefully acknowledges that it is but another name for
Clinton Rogers Woodruff
who has been for twenty-five years its devoted secretary, its organizing genius, its motive force, its guiding spirit.
He found the National Municipal League a mere project; he leaves it the central force of American civics. He found municipal reform a feeble aspiration; he leaves it the foremost achievement of modern democracy.
In grateful testimony whereof, this token is presented by the National Municipal League at its annual meeting in Cleveland, Ohio, December 29, 1919.
The business session of the League having been called to order by the president, the treasurer, Mr. Raymond V. Ingersoll, presented the treasurer’s report, which was referred to the auditors for the usual action.
Mr. Ingersoll, presenting the report of the nominating committee, announced that the Hon. Charles E.
Hughes, formerly justice of the United States supreme court, had consented to have his name placed in nomination for the presidency of the League, and Mr. Frank A. Vanderlip, formerly assistant secretary of the treasury of the United States, for the treasurership of the League.
The committee recommended the election of Mr. Clinton Rogers Woodruff as honorary secretary. Nominations were also made for vice-presidents and members of the council.
In recommending Judge Hughes and Mr. Vanderlip for officers of the League, Mr. Ingersoll expressed the opinion that the securing of two men with such great ability and reputation ought greatly to increase the possibilities of the League for valuable work.
Judge Hughes, Mr. Ingersoll pointed out, has an unusual grasp of local, state and national public affairs. His familiarity with state government will be particularly valuable at a time when the League is properly turning its attention to that subject. He is devoting more and more of his time to public questions and will unquestionably take a very active interest in developing the League along sound and effective lines.
Mr. Vanderlip, Mr. Ingersoll stated, has not only had very broad experience as a banker, but has held public office in two national administrations and has always kept closely in touch with important public questions. In his recent book, “What Happened to Europe,” Mr. Vanderlip expressed a profound sense of the necessity for securing better standards of government in this country.
In recommending that Mr. Woodruff be made honorary secretary, Mr. Ingersoll said the committee had in mind that this would be an appropriate way of showing appreciation for the exceptional work which he has done for the past twenty-five years in building up the League, and would also keep for the benefit of the organization the prestige in municipal matters which goes with Mr. Woodruff’s name.
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Upon motion, the secretary cast a ballot for the nominees for officers and members of the council as presented by the committee, and they were thereupon declared elected. (A list of the officers and members of the new council will be found on the fourth cover page of this issue of the National Municipal Review.)
The election of a secretary was referred to the council with power to act.
The amendments to the constitution of the League, reported by Mr. L. D. Upson, were considered seriatim. The constitution as amended and adopted will be published in the March issue of the National Municipal Review.
On motion of Mr. Mayo Fesler it was resolved “that the members here
present desire that the name of the League shall be changed to conform with the first object as set forth in the first paragraph of Article II, and that the matter be referred to the council, with the request that it report at the next meeting its recommendations, with the form to be adopted, as an amendment to the constitution.”
Following discussion of a more suitable name for the National Municipal Review the council was authorized to make such change as it may see fit at any time previous to the next annual meeting of the League.
After being favored by Mr. Judson King and Prof. A. R. Hatton with a description of the operation of the nonpartisan league of North Dakota, the meeting adjourned.


DEPARTMENT OF PUBLICATIONS
L BOOK
Organized Efeobts foe the Improvement of Methods of Administration in the United States. By G. A. Weber. New York: D. Appleton and Company. For the Institute for Government Research. Pp. S91.
This book is a recognition of the increasing technical character of government, and is a description of the public and private efforts to make governmental processes effective. In particular the writer deals with governmental research and legislative reference which is concerned with the technique of administration rather than with the larger problems of politics.
For the national government, Mr. Weber traces the examination and improvement of administrative machinery from the earliest congressional inquiries through the current efforts of the United States bureau of efficiency (official) and the institute for government research (citizen).
In the field of state government there is a discussion of the several temporary state commissions on economy, efficiency, and reorganization, official boards of administrative control, and a few permanent citizen organizations working to the same end. Supplementing this is a description of the services rendered by official legislative reference and bill drafting agencies.
In the local field—municipal and county—the author enumerates the organizations and some of the results obtained by both official and privately supported bureaus of research.
The volume is intended as a reference book, and does not purpose a discussion of the theory of improving administrative methods, nor to any great extent the results accomplished. As a reference book the minor short-comings,—almost entirely in the field of local government—are relatively unimportant. Many reference books suffer from obsolescence as they come from the publisher, and undoubtedly the war and industrial disturbances delayed the presentation of this material. A number of recent county and city agencies are omitted, and data relating to certain agencies indicate the status of 1916. One agency in the national field, organized in 1915,—the Institute for Public Service—:s omitted. On the whole, painstaking care ha?
REVIEWS
been expended, and the book will be valuable to both the official and citizen concerned in getting more effective government.
In addition to its primary purpose of reference, the volume is also a measure of the distance that one important movement for better government has come. For this latter service it is unfortunate that the material could not have been revised in 1919 that it might have more truly reflected the importance of the efficiency movement, particularly in cities and counties where development has been rapid.
*
New Towns After the War. An Argument
for Garden Cities. London: J. M. Dent &
Sons, Ltd. Pg. 84.
An attractive pamphlet summarizing the objections to haphazard city construction, indicating the advantage to be expected from intelligent town planning, and painting in glowing colors the splendid possibilities of after-war urban developments in Great Britain, has been published under the above title. It seems to take for granted what so many authorities on housing conditions in England now proclaim, that the state, working through local authorities, is to be the sole house-landlord of the future and that while present private owners of housing property in England will continue as landlords until their houses are worn out, their lot will be quite unenviable and that they will undertake no new construction. This would constitute a very long step in the direction of state Socialism. A large proportion of the buildings erected by the government will be rented at figures which mean a net loss to the state, and as the state is, after all, only the associated people, somebody must pay in increased taxes for uneconomic rents. New towns are to be created. The program starts out with the cry, “Build a hundred garden cities!” It even proposes that town authorities build model factories to be let on rental. The suggestion vaguely appears that the increased value of sites shall be utilized for the public good, but the question which has so far stared all such projects in the face, namely, where to put these model cities and how to find sites for them which


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will not cost so much that the future of the new community is mortgaged indefinitely, is not even discussed. The price of land in England has advanced enormously since the war. The owners of available sites are aware that hundreds of public authorities are coming into the market bidding for their land. They are informed by pamphlets like this that a million houses must be built within the next five years. In estimating the price to be paid for land the present owner is permitted to demand a price based on its possible future use. It requires little imagination to anticipate what the effect on land prices will be. As there is no relation in England, such as exists, however imperfectly, in America, between assessment of land for purposes of taxation and the selling price of land, one may predict that the result of such a scheme as is here proposed, would be to greatly enhance the fortunes [of present owners of the land. Up to the present, the failure of the project is indicated in the most authoritative Journals.
J. J. M.
♦
The Decline of Abistocbact in the Politics of New York. By Dixon Ryan Fox. New York: Columbia University; Longmans, Green and Company, agents. 1919. Pp. 460. Dr. Fox has given us a detailed history of political parties from 1801 to 1840. It strikes one with surprise that he starts his study at so late a date. To the student he would have given the satisfaction of a perfect sequence if he had
n. REVIEWS
Thirty-Fourth Annual Report of the Board of Gas and Electric Light Commissioners of Massachusetts, for the Year 1918.—This report, for the calendar year 1918, covering statistics for the year ending June 30, 1918, is a fat volume of 800 pages, which well maintains the reputation of this, the oldest public utility commission in the United States, and, in fact, in the world. Its chief value consists not so much in the decisions, the year’s legislation, and the few pages of general introduction, as in the extensive reports of the various gas and electric companies of the state. No other commission, with the exception of the New York commissions of the first and second districts, presents statistical and financial data in as clear and systematic a manner as does this Massachusetts commission.
begun where Dr. Becker left off in his history of the Political Parties in the Province of New York, 1760-66. It is true, of course, that the “revolution of 1801” overturned a government of “the rich, the well-born, and the able,” and thus affords a starting point for the description of a waning aristocracy. This description is portrayed to us graphically and not without a touch of humor.
The student of municipal history will be interested particularly in a series of twelve diagrams on pp. 433-35. Under a caption “Who Were the Whigs,” the author show3 the results of elections by wards in the city of New York from 1810 to 1840 wherein we rediscover that the leopard does not readily change his spots.
Dr. Fox has a way of bringing us very near to the personality he is portraying, as when he writes of the delegates to the convention of 1821, and again of the “Albany Regency” of 1823. His footnotes everywhere give evidence of the extensive reading upon which conclusions have been based.
It is possible that the work could have been improved at many points by the use of shorter sentences. Such minor defects should not be overemphasized, however, in a treatise that is so thoroughly satisfying and interesting. The monograph is appropriately illustrated with portraits gathered from unusual as well as authentic engravings or paintings, and it has an admirable index.
A. Everett Peterson.
OF REPORTS
There are also some valuable statistics of the four municipal gas plants and the thirty-nine municipal electric light and power plants in the state. But with the exception of the gas plants of Holyoke and Westfield and the electric light plants of Holyoke, Taunton and Chicopee, these plants are too small to be of general interest.
From the data given in this volume it can be computed that the fifty-nine private gas companies increased their sales to private consumers from 18,046,000,000 feet in the year ending June 30, 1917, to 19,530,000,000 during the following year, or over 8 per cent. The revenue from private consumers, and from cities for street lamps and public buildings, increased from 86 cents to 92.4 cents while the .profits available for interest, dividends and surplus de-


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dined from 26.4 cents to 23.1 cents per thousand feet of sales; but this slight decline still apparently left the companies a profit of 6 per cent or about $4 per thousand feet of annual sales,— a sufficient margin.
The commission wisdy urges legislation permitting it to check the companies from impairing their resources by declaring excessive dividends. It does well, also, to recommend that its approval shall be required before contracts are entered into for the purchase or sale of gas and electric light between companies having a common ownership, such as prevails not only in Massachusetts but in New York city and many other places. The commission also recommends that the bonds of the gas, electric and water companies under its charge be disposed of only by tender to the highest bidder.
It is unfortunate that the Pennsylvania public utilities commission has been in existence several years before beginning, as it has just done, to require statistics from its public utilities along the lines of a uniform dassification of accounts, and it also is greatly to be regretted that many other state commissions that have been collecting such statistics for a few years do not more dosely copy the Massachusetts and New York methods of tabulation. Most commissions are so busy with the immediate adjudication of rate and capitalization cases, or questions of service, and are so poorly sustained finandally, that they do not present well-ordered summaries and analyses of the rich data at their command. In many cases they are unaware of the importance of comparative statistics.
Few commissions, also, can boast of such a record as Massachusetts, whose chairman-, Mr. Barker, was in continuous service with the board for over thirty years before he passed away two or three years ago, and whose oldest member, General Schaff, has completed over twenty years of valuable service on the board. Among our regulating bodies only the interstate commerce commission can approach such a record.
Since the above review was written, the Massachusetts gas commission has been consolidated with the Massachusetts public service commission, and General Morris Schaff is no longer able to give of his wisdom and long experience to gas affairs in Massachusetts. To those who have admired for many years the work of the Massachusetts gas and electric light commission, the move of Governor Coolidge
seems a great mistake for that commission has done a pioneer and wonderful work and has been more consistently and intelligently devoted to the public interest, especially in matters of gas, than most commissions having to do with public utility lighting in other states.
E. W. Bemis.
*
Report of the United Railways Committee on Capitalization and Valuation.—The Civic League of St. Louis, December, 1918. There have been five different valuations made of the St. Louis United Railway properties, two in 1911, one in 1916, and two in 1918. The low estimate of 1911, corrected to 1918, is about $40,000,000; the high estimate, 1918, is over $72,5(30,000. The Civic League committee in discussing different methods and elements of valuation, confines nearly all of its attention to overhead allowances. This is easily understood from the fact that the lowest base east, the “public service commissions’ 1911 estimate,” with additions to 1918, amounts to about $34,046,242, while the highest estimate amounts to $41,757,-292, a difference of $7,771,050. Over $6,500,-000 of this difference is “estimated increase in cost of construction since 1911.”
In contrast to the difference in base cost between high and low, the overhead allowances for the same corresponding valuations are: for low valuation, 16.4 per cent of base cost, or $5,583,-583; and for high valuation, 73.8 per cent of base cost, or $30,831,849. The difference between high and low “overheads” thus amounts to over $25,000,000. The overhead per cents in the three intermediate valuations are 38.4, 39.6 and 48.6 per cent. The committee recommends 17 per cent as a reasonable allowance for overheads. Honest citizens may well question claims made by the utility interests, their valuation experts and sympathizers, for “overhead” allowances, as well as for some other “values,” that are not quite so elastic in their conception or application.
The committee, on the whole, is very liberal in its minimum and maximum values. “ The fair value,” it holds, “should be limited to a sum not less than $40,950,000, nor greater than $48,850,000.”
If the valuation figures are to be used as a basis for purchase by the city, the committee might very well have gone further into the matter of depreciation. Whether for rate making or purchase, valuations have generally not received


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as heavy depreciation as the circumstances would seem to justify. From 85 to 45 per cent depreciation may be more nearly correct than 15 to 25 per cent for old second-hand utility property.
It may not be amiss to suggest that the most convenient unit for comparison of traction valuations is the aggregate average cost for the entire system, including equipment, reduced to the cost per mile of single track. The fair honest cost for city systems should rarely, if ever, exceed $100,000 per mile of single track. If for a city street railway system, an undepreciated valuation of $70,000 to $80,000 per single track mile is shown, it may well invite close inquiry.
In view of the concerted drive all over the country by the utility interests to establish and legalize inflated valuations, and the fact that public officials are often ignorant of, or indifferent to, the injury which may thus be inflicted on the municipalities, it may of necessity devolve upon the disinterested, selfsacrificing citizens to make the fight for protecting the public interest.
The study shows a laudable spirit on the part of the Civic League and its committee and may well serve as a stimulus in other cities to combat efforts at exploitation.
Charles K. Mohler.
♦
Community Welfare Law of Indiana.—The
community welfare law, recently enacted by the Indiana legislature, creates a “department of public welfare in cities of the first class,” giving them “power to receive and manage and control all gifts and bequests not made for any specific purpose and any gifts made for community welfare purposes.” Thi3 is excellent, in that it creates a responsible board to administer such gifts and bequests as public-spirited citizens wish to make for welfare purposes, and centralizes the control of all such funds.
The mere fact that a city has such a welfare board will invite gifts, as has been proved by the Cleveland foundation, and will probably divert to public funds gifts that might otherwise go to private philanthropic institutions. The length of time of service—four years—will enable the men who serve on the board to “learn their job” and to administer the funds wisely.
The provision that the first members shall be appointed by the mayor will work well or ill, as the mayor does not or does use this office as one of his political “plums.” If the first mea
appointed be of high caliber it is to be expected that the incumbents elected by them will be of the same intelligence and ability, and prestige will be established for the board. However, if a city is politics-ridden, and the mayor appoints his own henchmen, the whole scheme will be of negative value.
The terms of power for the board are broad enough to enable them to go into many varied enterprises for city welfare—the conducting of surveys in fields of health, recreation, housing, etc.; the demonstration of model playgrounds, model dance halls, community centers, and community theaters; the employment of field workers to organize local community councils for discussion and action on community welfare problems; and the assembling of the experience of other cities in all these fields. In fact, with such broad powers, and a membership free from political influence or domination, such a board would become the dominant factor in movements for community welfare.
It is suggested that the board choose its secretary by examination—not necessarily civil service or written examination; that they choose a young man who ha3 made a study of the community movement, that they use him not only as an executive, but leave much to his initiative, and that the board act in an advisory capacity only. Such a method will result not only in immediate benefit to the population of the city, but also in creating new methods, procedure, and technique in community work. This method of administration has been admirably developed in the work of the board of park commissioners of the South Park system in Chicago. This board consists of seven men, appointed by the county judge for a period of six years. It elects its executive officer for an indefinite period, using the advice of the city’s experienced social workers in the selection, and gives him a rather free hand in the development of the work of the department. The board has been free from political domination since its inception, and, in contrast to the other park boards of the city, where appointments have been a matter of political preferment, it has accomplished one of the most outstanding pieces of recreation work in the country in the invention and maintenance of magnificent community centers in the small parks. The other park boards of the city have all too tardily imitated their work. The work of the latter boards has been important when the appointees were men of


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vision and ability even though they were of necessity part of the political machine. It has fallen below the best standards when the appointees have been politicians with no understanding of community problems. The work of the South Park commission, on the contrary, has been one of steady growth from the beginning, of even development, constant innovation and experimentation.
The community welfare law should be amended to include cities of the second class. Too much of the legislation of the Indiana legislature is directed to Indianapolis and the very few other large cities. Few of the most progressive laws are made to apply to cities of the second class so that the state has within its confines such a festering sore, from the standpoint of social conditions, as East Chicago, where every condition of community life is indescribably bad—infected water, no provision for play and no direction or control of community welfare whatsoever. The housing laws, for instance, passed with so much effort and publicity in Indiana several years ago do not apply at all to East Chicago, with the result that housing conditions exist there to-day, and existed during the war, which are not tolerated in the worst slums in our big cities.
The Indiana community welfare law is a step forward in making public policy and in centering control and responsibility for the administration of public funds for community betterment in one group of citizens; but its value will depend entirely on the personnel selected for membership on the Board and on the type of executive officer selected, and the amount of power and responsibility which is delegated to him.
Not only should the provisions of the Indiana law be extended to include the smaller cities, but a clause should be framed to eliminate political control. This could be accomplished by placing appointments in the hands of some other official than the mayor, and by giving the board taxing power, if possible, as has been done for the many park commissions that are doing excellent work throughout the country.
Mama 'Ward Lambin.1
*
Financial Statistics of States.—In this report of the federal bureau of statistics there is shown
> Acting Director of Recreation, Community Councils of New York.
[February
in detail the financial transactions of the 48 states for the year 1918, the assessed valuation of taxable property, and the taxes levied thereon, and their indebtedness and assets at the close of the year. The financial transactions of the states are so analyzed as to show the revenues of the states, and of the more important departments, and the cost of and indebtedness incurred in conducting state business.
Such figures from the report as there might be room to quote here would be so fragmentary as to have only superficial value. A more serious treatment of the report is, perhaps, to emphasize the attention called in the introduction to the antiquated and diverse accounting methods with which the census bureau had to contend in some of the states in the effort to obtain conparative data. There still exist, as the report explains, some states where no modern system of accounting has been installed, where the accounts kept are what are commonly known as cash accounts, or accounts merely of cash receipts and payments. No attempt is made in such states to classify receipts with reference to revenue, nor payments with reference to governmental costs. Furthermore, in most states which have introduced modern accounting systems, no common method of classification has been adopted. In some instances it was necessary for the bureau’s agents to classify or reclassify, from original vouchers, the revenues and governmental costs, or receipts and payments, in order to arrive at even approximately comparable results.
Obviously state financing can never be intelligently undertaken on so loose a basis, and a remedy of this fault must precede or go hand in hand with other fiscal reforms. What is greatly needed is a common and scientific classification of revenues and government costs, or of receipts and expenditures, available for adoption in states where improved accounting methods are desired.
*
Building East St. Louis for To-morrow is the
title of the first annual report of the war civics committee of that city, covering the year ending September 30, 1919. This committee of fifty was organized at the instance of the War Department for the purpose of eliminating adverse living conditions in East St. Louis and creating an environment more favorable to the successful production of war materials. The report details the committee’s accomplishments in matters


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of housing, health, municipal survey, community welfare organizations, cost of living, recreation, racial problems, charities, safety, etc., and also lists in a “debit column” that part of the committee’s work which is as yet uncompleted. This work has not ceased with the signing of the armistice as the committee is pledged to three years’ work, and will continue its efforts for the improvement of the city.
*
New York State Probation Commission.—
The twelfth annual report of this commission,
a volume of 570 pages, is a valuable contribution to the subject of penology, and especially to that branch dealing with the probationary system. The report contains much data of use to those concerned in the subject, including not only a record of the commission’s work for the year, but also a number of valuable tables, the proceedings of the state conference of probation officers and that of magistrates, and synopses of all statutes relating to probation, juvenile courts, and allied subjects, enacted in the United States during 1918.


NOTES AND EVENTS
I. GOVERNMENT AND ADMINISTRATION
Saving a War-Industry City.—Hopewell, the Wonder City of Virginia, developed in the spring of 1915, from a cornfield to a community of some 35,000 people and thousands of shacks and wooden buildings of various kinds, only to be destroyed by a big fire in December of that year. But as is usually the case the fire proved to be a blessing in disguise, for in place of the destroyed shacks appeared modern brick buildings, and the city entered upon a period of wonderful prosperity that was to last for nearly three years.
During this time the great plant of the du Pont Company adjacent to the city was furnishing employment for about 16,000 men at high wages. The city was on a boom; miles of paved streets and sidewalks, hundreds of modern brick buildings and comfortable wooden dwellings, water works, an electric company, four banks, additional wharves and docking facilities, street car service, an interurban electric car line connecting the city with Petersburg, good train service over the Norfolk and Western Railway, and a regular freight and passenger service by the Old Dominion Line and other smaller lines on the James River and the Appomattox River, were among Hopewell’s advantages.
All went well until the signing of the Armistice on November 11, 1918, when the coming of peace started the closing down of the local du Pont plant that had for three and a half years made this a prosperous community. Many of the plant’s employes moved away, and with the coming of spring the city found itself going through a period of depression, until by the middle of June it seemed to some that the city that had grown up with the large du Pont plant was to die with the death of the big war industry.
But the business men of Hopewell and of Petersburg, closely linked with Hopewell in business relations, were not ready to admit that Hopewell had lived its day. Realizing all the natural advantages and the additional inducements that could be offered by the community, these business men of Hopewell and Petersburg conceived the plan of combining their energies in advertising and developing the two cities and
adjacent territory under the name of the Peters-burg-Hopewell District, with the idea of making it into a great industrial center. The du Pont Company, with several thousand acres of land adjoining Hopewell, and tremendous power plants and miles of railroad, found that it had more land, power, and railroad facilities than it could use, and became interested in the development of the community in order to gain some return from the large investment.
Carrying out this plan the business men and the du Pont Company raised $100,000 for the purpose of advertising the advantages of this district and of beginning the development, with an additional sum of $15,000 to be used in an agricultural development of the neighboring farming community in order that the cities might be supplied with fresh vegetables and truck and foods of all kinds. The eity has reduced its tax rate to $1 on the hundred and is conducting the city affairs on a most economical basis. It is making every inducement possible to new enterprises and prepared to make attractive propositions to any one desiring a location.
Hopewell became a city of the first class on July 1, 1916, by virtue of a charter granted by the general assembly of Virginia. This charter is unique among the cities of Virginia in its simplicity. It provides for a mayor, and a bicameral council composed of a board of aldermen of only three members and a council of only five members, all of whom were elected at large from the city.
The commissioner of revenue and the treasurer perform the duties usually incumbent upon such officers. Other affairs of the city are run by four departments: The engineering department (in charge of the streets and water works), the health and sanitary department, the police department, and the fire department. All department heads are named by the council, and are subject to the council and mayor, to whom they make their reports.
*
University of Cincinnati Gives Course on Housing.—With the great increase in interest in housing, not only in the United States, but
106


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all over the world, the University of Cincinnati is one of the first to meet the need of a comprehensive course of study on the many phases of this important subject. To meet the demand for information and instruction on housing the new department of industrial medicine and public hygiene at the medical college, in charge of Major Carey McCord, has worked out in co-operation with the Cincinnati better housing league a university course of twenty lectures covering every important phase of the subject from the growth and history of the housing problem to the Garden City Movement, the construction of low-cost houses for wage-earners and housing from the real estate man’s point of view.
The course includes lectures by experts from various parts of the country to lecture on the phases of the subject in which they are preeminent. Among the subjects are housing legislation, housing of factories, co-operative housing, etc. Advantage is taken of the fact that Cincinnati has a number of business and professional men and city officials particularly qualified by experience and training to lecture on various topics included in the course.
*
Progress tinder the British Housing Act.—
In spite of the Housing Act, progress with the actual building of new houses is reported as being very slow. The ministry of health reports that over 4,000 schemes for about 420,000 houses have been submitted, but for various reasons only a small fraction of these are actually in hand. Complaints have been made of delay and undue interference in details by the ministry, but these are repudiated. Looking at the large financial interest the ministry must safeguard, it is perhaps not remarkable that difficulties and differences should arise.
*
Municipal Loans for Home Building.—An
ordinance of the province of the Cape of Good Hope, South Africa, empowers the council of the city of Good Hope to make advances to persons of limited means to provide homes for themselves. This advantage is offered only to those whose incomes do not exceed £360, at least four fifths of which must be derived from actual personal exertion. Such loans must not exceed four fifths of the value of the house and land, nor shall the total loans to any one person be greater than £600. Loans are to be secured by first mortgages bearing 5 per cent 4
interest. A corporation building loan fund may be established for the purpose, subject to the provisions embodied in the ordinance.
*
Cheap Rents in Lausanne.—The municipal council of Lausanne has received a proposition from the municipality as to a subsidy of 200,000 francs ($38,610), including 85,000 francs ($16,409) already given, to the association “La Maison Ouvriere” (“The Workman House”), which shall construct houses for cheap rent, on the ground which the commune ceded gratuitously to it at Pre d’Ouchy. There will be three houses containing altogether thirty apartments of two and three rooms each and, as a rule, having a garden.
*
Third-Class Cities in Pennsylvania.—A constitutional amendment proposed by the last legislature of Pennsylvania would, if adopted, empower the legislature to reclassify the cities of the state, the number of classes not to exceed seven. Two attempts of the legislature to change the present number of classes, first from three to five, and later from three to seven, having been held unconstitutional, the proposed amendment is deemed necessary in order to deal more effectually with the problem of legislating for cities of homogeneous classes. Before becoming effective, the amendment must pass another legislature and be approved by the voters of the state.
Other important legislation of the last Pennsylvanian legislature, affecting cities of the third class, included several amendments to the Clark act, namely, one providing for a uniform tax levy in newly incorporated cities to pay the outstanding indebtedness of the various municipal divisions comprehended in the consolidation; another making conclusive the action of the council in annexing a borough, township, or part thereof, to a third-class city, notwithstanding the initiative and referendum provisions of the Clark act; another limiting to expenditures of more than $250 the provision that all purchases of materials and performance of work must be by contract; another, of questionable value, designating license taxes as being for purposes of revenue.
Municipal powers of third-class cities were extended to include the establishment of milk depots; enforcement of market regulations; provision for garbage collection and disposal; regulation of the keeping and slaughtering of


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animals and fowls when deemed objectionable by the board of health; smoke regulation; municipal boat and bath houses; provision for musical entertainment; regulation of public dance halls; and provision for municipal pensions.
The duties of the city comptroller—a regrettably impotent official in third-class cities under the Clark act—were materially enhanced by new legislation, while, on the other hand, a questionable step was taken in placing rather obscure limitations on the exercise of the initiative and referendum powers granted under the Clark act.
*
Eldora (Iowa) Plans Community Improvement.—A committee on public improvement appointed by the community club of Eldora, Iowa, has drafted a report containing features of value to other cities and towns striving for civic advancement. Prominent among these is the suggestion for industrial development in keeping with the natural advantages claimed for Eldora. The report calls attention to the substantial sums of money invested by Eldora citizens in outside industrial enterprises, many of them worthless, and recommends that systematic effort be made to direct Eldora investments to home enterprises. To this end it is proposed that local industries needing development be examined by the community club to ascertain their requirements and advantages for the purpose of encouraging home investors in seeking home investments. Similarly it is recommended that efforts be made to organize industrial enterprises which the city’s environment indicates as highly desirable and which are now lacking.
Other topics on which the committee reports •detailed suggestions include a system of paved highways for the county; parks and public grounds; transportation facilities; public buildings; adjustment of difficulties with the public utility company; better housing; a comprehensive city survey; actual federation of the churches, with a community house as an alternative; a central trustee’s fund for public bequests; and a community council for coordinating the work of all existing welfare organizations.
*
Philadelphia’s New Department of Welfare.—
Under its recently amended charter1 Philadel-
i National Municipal Review, vol. viii, pp. 417 and 454.
phia has just put into operation the clause creating a new department of welfare. Its chief functions are (1) to administer and supervise all charitable, correctional, and reformatory institutions and agencies (except hospitals) whose control is entrusted to the city; (2) to organize, manage, and supervise playgrounds, repreation centers, floating-baths, bathing grounds, and recreation piers; and (8) to have jurisdiction over such other matters affecting the public welfare as may be provided for by ordinance. While these functions give the welfare department an important r6le in promoting the well-being of the city, yet it lacks many powers common to welfare departments in other cities, particularly in the middle west, such as supervision of public amusements, enforcement of health ordinances, suppression of nuisances, maintenance of free employment and legal aid bureaus, or research, lectures, and publicity along welfare lines.
*
Municipal Bank Proposed for Bradford, England.—A proposal that the Bradford city corporation apply for a government banking charter is being considered by a committee of the city council. Labor members of the council, from whom the plan (still in its formative stages) emanated, advance the following statement by the chairman of the finance committee in support of the entrance of the city into the banking field:
Banking is the simplest, safest, and most profitable industry in the Kingdom at the present time. The possibilities of saving money to the ratepayers of Bradford by conducting the finances of the corporation through a corporation bank are very great. Some of our difficulties in obtaining capital and loans for public purposes would tend to disappear. I imagine, also, that if a government charter of banking were granted to us ordinary enterprise from outside would be attracted and would come and bank with us. We should become in time a recognized commercial bank. In round figures the Bradford corporation owes £8,000,000 of borrowed money. On this interest is paid up to the rate of 5 per cent. Some of the older loans are at a lower rate. The relationship between banking and borrowing is very close. We should have the best credit of any individual bank you could think of. Banking requires no capital.
The proper course is in my opinion for the government to be the national banker, with the municipalities conducting branches. At the present moment 80 per cent of the banking of this country is conducted by six banks. The banks which conduct the other 20 per cent of


NOTES AND EVENTS
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1920]
business are not numerous, and amalgamations are constantly going on. The number of banks existing to-day is startlingly small, when compared with the number that existed, say, twenty-five years ago. Banking is quickly becoming a great monopoly, and the power of the banks to keep up rates of interest and to hold national credit in pawn is a serious menace.
*
A Municipal Foundry.—A new phase of municipal ownership, apparently, is the decision of the city council of Johannesburg, South Africa, to establish a municipal foundry. The plant, to cost £1,000, with an allowance of £100 for contingencies, is expected to deal with all the castings for all the departments of the council, which represent approximately 168 tons of cast-iron per year and 8 tons of brass and phosphor bronze per year. The gas, electricity, and tramways departments have an appreciable amount of scrap iron, as well as scrap copper, brass, phosphor bronze, etc., which has had to be disposed of by the controller of stores and buyer
at the best prices offered. With the introduction of a departmental foundry the council expects to be able to use up its own scrap metal.
*
State Art Commission Appointed for Pennsylvania.—Under authority of an act of the last legislature Governor Sproul of Pennsylvania has appointed a state art commission of five members whose approval is required for the design and location of all public monuments, memorials, buildings, etc., proposed to be erected anywhere in the state, except in cities of the first and second class.
*
Proportional Representation in Canada.—The new premier of Ontario, the Hon. E. C. Drury, has forecast the introduction of proportional representation in the next parliamentary elections of the province. The premier is committed to electoral reform, which is expected to be taken up when the parliament convenes this month.
II. CITY MANAGER NOTES
City Managers’ Association Growing.—The
city managers’ association, founded in December, 1914, at Springfield, Ohio, with but eight city managers in attendance, has now grown to be an organization of some 200 members. This rapid growth is explained in part by the creation of an associate membership a year ago, at the fifth annual meeting, to which anyone sufficiently interested in municipal progress to pay the annual dues of five dollars, is eligible. Entirely aside from this feature, however, is the very marked increase of the interest of the city managers themselves, in the work of the association. Quite logically, perhaps, the society has become a sort of clearing house for city managers, and through its monthly bulletin announces openings in the field. During the past year nearly a score of city-manager positions have been filled through information furnished by the association.
In other ways the society has endeavored to render definite service â–  to its members by furnishing them with the best available literature on the manager plan, including subscriptions to the City Manager Bulletin, the Short Ballot Bulletin and the association year books. This year, through co-operation with the National
Municipal League, arrangements have been made whereby each member of the city managers’ association has become a subscriber to the National Municipal Review.
*
City Manager Promotions and Appointments.
—Five more transfers of city managers from one city to another have just been announced. In each case the transfer has constituted a real promotion. The total number of such promotions now stands at thirty, and as the city manager movement gains headway, bringing an increased demand for experienced men, these inevitable promotions will still further upset the theory onee advanced that the tenure of the city manager would be for life, or good behavior.
Of the five cases in hand one man advanced to his second city, three to their third and one has received his fourth appointment. J. W. Greer jumps from Byran, Texas, to Tallahassee, Florida, after establishing a notable record.
The three men to tackle their third manager positions are C. A. Bingham, I. R. Ellison and W. M. Cotton. Mr. Bingham served three years at Norwood, Massachusetts, and two years at Waltham, Massachusetts. He has


NATIONAL MUNICIPAL REVIEW
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just been appointed at Watertown, New York. During the five years his salary has increased from $3,000 to $7,500. Mr. Ellison goes to Muskegon, Michigan, after seven years service at Eaton Rapids, and Grand Haven, Michigan. Mr. Cotton is a graduate of the city-manager course at the University of Michigan and served as borough manager at Edgeworth and Sewick-ley, Pennsylvania, before his recent appointment at Ambridge, Pennsylvania.
G. A. Abbott holds the record for transfers. He is now manager at Sanford, Florida, and during the past four years has served as manager of three Michigan towns, Grosse Pointe Shores, Birmingham, and Otsego.
An increase of salary is often quite equivalent to a promotion and certainly constitutes a worthwhile endorsement. A large number of increases were announced for January 1. Perhaps the most conspicuous case is that of Charles E. Ashburner, manager at Norfolk, Virginia, who is now receiving $12,000 per year. Mr. Ash-burner was the first city manager in the country and has served three cities, starting at a salary of $2,400.
Harry H. Freeman of Kalamazoo, Michigan, and C. M. Osborn of East Cleveland, Ohio, have both been advanced to the $6,000 class.
Another interesting feature of recent appointments is the tendency of cities to choose a local man trained within the organization, to succeed a resigning city manager. Henry F. Beal follows Mr. Bingham at Waltham. Mr. Beal was previously Waltham’s director of public works and city engineer.
The case at Wichita, Kansas, differs somewhat in that the new manager, L. W. Clapp, served as mayor for over two years during the managership of L. R. Ash. A second case in which a former mayor has been selected manager is that of W. B. Anthony, recently appointed manager at Walters, Oklahoma, after serving several years as mayor of a neighboring city.
Other city manager appointments announced since the issue of the City Manager Bulletin for December, 1919, are as follows:
Anaheim, California, O. E. Steward; Pittsburg, California, Randall M. Dorton; Petoskey, Michigan, J. F. Quinn; Ypsilanti, Michigan, T. Fred Older; Sherrill, New York, Lewis W. Morrison; Painesville, Ohio, T. B. Wyman; Sallisaw, Oklahoma, Fred E. Johnston; Rock Hill, South
Carolina, E. R. Treverton; Kingsport, Tennessee, F. L. Cloud; Yoakum, Texas, J. E. Lucas; Newburgh, New York, Capt. McKay; Scobey, Montana, Roy N. Stewart; Norman, Oklahoma, W. R. Gates; Santa Barbara, California, Robert R. McGregor.
H. G. Oris.1
*
William J. Lamb has been appointed city manager at Akron, Ohio. Last November Mr. Lamb was elected mayor of the city, an office he has held before. The city commissioners, however, selected him as the city’s chief administrator and transferred him to the city manager’s office.
*
West Palm Beach, Florida.—Joseph Firth has assumed office as city manager of West Palm Beach, Florida, having resigned as commissioner of public works of Winston-Salem, North Carolina, to accept this position. Mr. Firth will be succeeded in Winston-Salem by Captain Harry L. Shaner, former city manager at Lynchburg, Virginia, but who has been engaged in government work since he entered the services of the War Department at the beginning of the war. Captain Shaner will be assisted by W. F. B. Halensworth, of Greenville, South Carolina.
*
City-Manager Plan Suggested for Cleveland.
—Our attention having been called to an error in the November issue of the National Municipal Review, whereby the minority report of the committee recommending the city-manager plan for Cleveland, Ohio, was confused with the majority report,2 we have obtained from Mr. Leyton E. Carter, assistant secretary of the civic league of Cleveland, the subjoined explanation of the two reports:
Followers of the city-manager idea will take keen interest in the recommendations of the committee of fifteen appointed in 1916 to investigate and report on the city-manager plan of government for Cleveland. The committee in its recent report has agreed that the city-manager idea should be applied to Cleveland; but its members have split into two groups over the question of precisely what plan embodying the
‘Secretary, City Managers’ Association.
• National Municipal Review, vol. viii, p, 780.


NOTES AND EVENTS
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1920]
city-manager idea should be recommended to the voters.
The majority report or “plan no. 1,” signed by ten members of the committee, eliminates the popularly elected chief executive and provides for the appointment of a city manager by the council, which is to be chosen by proportional representation and number from fifteen to twenty-five members, such manager to hold office during, the pleasure of the council.
The majority committee “believes that the most fruitful cause of the prevailing distrust in government is the lack of effective administration even more than the unrepresentative character of our legislative bodies.” It sees in the majority plan a means for “excluding partisanship from the administrative service of the city.” It further believes that the adoption of its plan will result in securing better executives and make for continuity of executive policy. Proportional representation is strongly advocated as a means of making the council “truly representative” and drawing into it “the real leaders of the various important groups and interests of the city.”
The minority plan, “plan no. 2,” seeks to combine the “advantages of the city-manager plan and the satisfactory features of the present plan.” The minority committee of five is not
convinced that the straight-out manager plan has been tested by experience in great cosmopolitan cities or that it is wise to apply too closely this “industrial form of government” to city government, which is “an agency of the state to promote opportunity for better life, liberty and happiness of the people, as distinguished from a private industrial corporation existing to extract from its operation large financial returns for its stock-holders.” The minority feels that the rfile which the popularly elected mayor plays “as a leader in evolving those major policies which give character to a community” is among the institutions of democratic government which must not be sacrificed. It further feels that the choice of a city manager can more safely be left to the popularly elected mayor than to the council where, it believes, responsibility can easily be shifted about. It therefore recommends as its main “plank” the choice of a city manager by the mayor to serve during his pleasure, or that of each incoming mayor, and to be charged with the administrative work of the city, with control of the several administrative departments centralized in his office.
Only the majority plan has met with any considerable favor to date. A campaign committee has been appointed to take steps to bring this plan to popular vote in the near future.
in POLITICS
Philadelphia’s Political Clean-Up.—Monday, January 5, 1920, marking the inauguration of the mayor-elect of Philadelphia, J. Hampton Moore,1 ushered in what many citizens hope and believe to be a new era in the government of that city.
It is safe to say that none of Mr. Moore’s predecessors came into office with quite his opportunity for effective service in the administration of the city’s business. For one thing, he has behind him the indorsement and dictum of an overwhelming vote, composed of the independents and the best Republican elements, won in primary and general elections on the clear-cut issue of efficiency versus machine rule, which few former Philadelphia mayors have had; and, for another, Mr. Moore is gifted with a genius for politics and for understanding and dealing with men which no previous "reform” mayor in Philadelphia possessed in the same degree. A further advantage is the greater opportunity offered by the city’s amended charter.2 These exceptional factors, combined with Mr. Moore’s public experience and personal
1 National Municipal Review, vol. viii, p. 731.
•National Municipal Review, vol. viii, pp. 417 and 454.
qualifications, give confidence to many shrewd observers that while Mr. Moore cannot make a Utopia of Philadelphia in four years, he will be able, with hard work and a little luck, to accomplish much that in the past has seemed hopeless.
The circumstances attending Mayor Moore’s induction into office support these hopes. His appointment of heads of departments has been particularly strong. James T. Cortelyou, director of public safety, was formerly chief of postal inspectors and later at the head of the detective force of the county of Philadelphia. John C. Winston, director of public works, is at the head of a large publishing house and accustomed to handling large affairs; as chairman of the committee of seventy since 1903, and of the charter revision committee, he has been a forceful public figure and familiar with the work of his new office. Dr. C. Lincoln Furbush, director of public health, has had a wide and varied experience under Surgeon-General Gorgas in Panama and also during the war; Dr. Fur-bush has a high reputation as a sanitarian and a disciplinarian. George F. Sproule, director of wharves, docks, and ferries, is known as the best informed man concerning the port of Phil-


NATIONAL MUNICIPAL REVIEW
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adelphia; he has been closely identified with shipping interests for many years. Ernest L. Tustin, director of the new department of public welfare, was formerly head of the recreation board, where he made a good record; he has been a successful lawyer and business man. A. Lincoln Acker, city purchasing agent, has recently retired as the head of one of the largest grocery concerns in Philadelphia; he has had wide experience in large purchasing, and possesses splendid qualifications for hi3 new office. Such of these appointments as have political significance are political only in the best sense, and indicate the high plane of thinking and action of the new administration at its inception.
Mr. Moore has also been particularly fortunate in his relations with the new single-chamber council of twenty-one. Not only has he shown a high quality of leadership in dealing with the organization of the new council, but he has been successful in obtaining the council’s election of a civic service commission admirably equipped for the exacting task of bringing to a higher standard the personnel of the various city departments. Of this commission Clinton Rogers Woodruff, now honorary secretary of the National Municipal League after twenty-five years’ service as secretary, is well qualified for his position of chairman by his judicial temperament and an intimate knowledge of the civil service gained through his long activity in municipal affairs. Lewis H. Van Dusen, another member of the commission, served with distinction in the same position during the administration of Mayor Blankenberg and was in charge as lieutenant-colonel of the personnel bureau in the War Department. Charles W. Neeld, the third member of the commission, is a business man selected for his business experience and his civic interest. Such a commission, both in weeding out the misfits in the service at present, and in conducting fair and effective examinations in filling vacancies, will prove a vital asset to the new mayor.
Russell Ramsey.
*
Mayor Hoan’s Administration in Milwaukee. —Commenting on the administration of Mayor Hoan of Milwaukee, Charles F. Carson, of the Living Church, writes:
The real social value of the public marketing plans, for instance, of the socialistic adminis-
tration was shown by the fact that in providing fish food for the poorer classes the city government was able to undersell the regular markets to the extent of from 50 to 75 per cent in retail price. When the masses of the people were securing food only with the greatest difficulty, this item urged by the mayor in his address was a very strong argument for socialistic methods.
The mayor’s suggestion that labor be hired directly, without the intervention of a middle man, seems to me to meet the requirements of common sense, if once we recognize the right of a man to labor without being exploited.
The mayor’s plans outlined for making a better Milwaukee included those for improved housing conditions, doing away with the congestion of population, and securing public ownership of the local street railways. The need for each of these three is apparent to a resident. In Milwaukee there are large slum districts, comparing favorably in size with those of the older eastern cities, while on the outskirts within the easy reach of future railway extensions are large expanses of territory which would lend themselves easily to the housing of workmen, when once economical transportation facilities are afforded through public ownership. That public ownership is necessary was proven by last year’s campaign of the local company for increased fares. They asserted that it would be necessary to raise the local fare from a four-cent ticket to a straight five-cent fare, if they were to pay the interest charges which the courts had declared legitimate. The Railroad Commission granted the increase, and afterwards it developed that for two years the company had been paying on the old fare system an interest of 12 per cent to a large class of its investors, but still had demanded more.
The mayor has labored under the disadvantage of having a legislative branch not in sympathy with him politically, but he has made a good name for himself nevertheless in spite of political misrepresentation.
Non-Partisan Elections for Milwaukee.—The
last Wisconsin legislature passed two laws providing for the non-partisan election of the county board of supervisors and the county administrative officers, the laws for the present being limited to the county of Milwaukee, the largest county in the state. These laws are a move in the direction of majority rule, in that Milwaukee county has three parties of approximately equal strength. The non-partisan law leaves the choice at the election to the two highest nominees at the primary,
Raymond T. Zillmer.1
* Secretary, Good Government League.


1920]
NOTES AND EVENTS IV. JUDICIAL DECISIONS
113
Proportional Representation Held Unconstitutional in Kalamazoo.—Judge Jesse H. Root, of Monroe, Michigan, in a case brought before him in the circuit court for the county of Kalamazoo, has rendered a decision declaring unconstitutional the provision in the charter of the city of Kalamazoo providing for the election of city commissioners by the Hare system of proportional representation. The provision was attacked on the ground that it conflicted with the requirement of the constitution that “in all elections every inhabitant of this state shall be an elector and entitled to vote.” The court held that this constitutional requirement was interpreted by the supreme court of the state in the case of Maynard v. Board of Canvassers1 as giving to each elector the right to vote for every officer to be elected, whereas under the Hare system, as applied to Kalamazoo, each elector is permitted to vote for only one of the seven commissioners to be elected. Judge Root also quotes the supreme court of Ohio2—in which state the constitution then provided that each elector “shall be entitled to vote at all elections,” a provision substantially the same as the Michigan clause—as thus interpreting the case of Maynard V. Board of Canvassers in support of a decision that the Ohio clause guarantees to each elector the right to vote for each officer whose election is submitted to the electors.
Judge Root’s decision takes recognition of the contention that these decisions have no applicability to the Kalamazoo case for the reason that city officers are not constitutional officers; that the opinions quoted from are all in reference to constitutional officers; and that the manner of electing city officers is purely a matter of local
concern.2 Judge Root disposes of this point on the grounds that however true it might otherwise be, it is entirely offset by the constitutional prohibition that “no city or village shall have the right to abridge the right of elective franchise.”
On the other hand, Judge Root holds that the Kalamazoo charter is not void because it provides for the election of the mayor by a vote of the commissioners instead of by the people themselves. He also dismisses as purely typographical or clerical an error in the repealing clause of the charter, ruling that the undoubted intention of the charter framers, rather than its literal interpretation, should govern. Furthermore, he dismisses the contention that the court should refuse to enter a judgment of ouster because it would be futile, the respondents having been succeeded by a new commission (also elected by proportional representation), his position being that the proceeding was brought to test the constitutionality of the charter rather than the right of one man to hold office under it.
Judge Root’s rather sensational decision seems to give general satisfaction among the opponents of proportional representation, and general dissatisfaction among its adherents—as might be expected. Pending an appeal to the supreme court, the city attorney has advised the commission to play safe, and, in matters of taxation, not to exceed the tax limit set by the old charter. The budget for 1920 is accordingly to be reduced so as to keep within the old charter limit of 10 mills. A charter amendment is also proposed, deleting the objectionable proportional representation clause and substituting the old majority system. Such action will require two special elections, one for a referendum on the charter amendment, and another for the election of new commissioners.
V. MISCELLANEOUS
Exit “The Public,” Enter “Taxation.”—The
announcement that The Public would cease to exist after its issue of December 6, 1919, came to many of its readers rather as a shock. Under the editorship of Louis F. Post, The Public achieved a well-deserved reputation for high, straight thinking, and was frequently referred to as the best-edited periodical in the United 184 Mich. 228.
s State v. Constantine, 42 Ohio 537.
States. Upon the retirement of Mr. Post, Stoughton Cooley became its editor, maintaining in an able manner the standards which his predecessor had set. That the circle of The Public’s readers was never relatively large is regrettable, but more or less in the nature of a distinction, since no serious review in America has ever appealed to more than an infinitesimal
1 Bellas v. Burr, 78 Mich. 1. Menton v. Cook, 147 Mich. 540.


NATIONAL MUNICIPAL REVIEW
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part of our citizenship—and possibly never will. But that this circle should dwindle to a point where it could not sustain existence is, indeed, a tragedy in American journalism.
Simultaneously with the extinction of The Public came the announcement of a new magazine, Taxation, to be inaugurated in January, with James R. Brown, president of the Manhattan single tax club, as publisher, and Mr. Cooley as editor. Taxation is projected as an educational weapon for the business man and 1 student of affairs that “will be devoted to the great underlying causes of social unrest and industrial maladjustment.” It promises to be non-partisan, and to analyze the rights of the citizen and the proper sphere of government.
*
Citizens’ Research Institute of Canada.—
This institute, recently organized, is a dominionwide association of citizens to obtain and make available the fact basis of the administration of public affairs in Canada. The institute will harmonize its work with that of local bureaus of municipal research and similar bodies, and give wide circulation to such local material as is of general interest. The institute will endeavor, as one of its specific aims, to promote the movement toward the standardization of municipal, provincial and national accounting, which would, among other things, make possible the trustworthy comparison of statistics. Toward this end a series of pamphlets is being published on the cost of government in Canada.
*
A Civic Classification Scheme.—The municipal reference bureau of the University of Minnesota, of which E. L. Bennett is secretary,
has issued a “Classification Scheme for Material in the Municipal Reference Bureau,” which represents a very careful and painstaking effort, and should prove of interest and practical value to all institutions concerned with the collection of municipal and civic data. Mr. Bennett’s scheme includes some eighteen main subject heads, with appropriate sub-heads and sub-subheads. The main subjects are: municipal government; people’s part in government; municipal corporations; forms of municipal government; municipal legislation; courts; administration; stores and purchasing department; finance; public safety; public health; welfare; city planning; public works; ports and terminals; public utilities; education, and civic organizations.
*
New Year Greetings from the City of Flint (Michigan) are contained in an attractive new year’s card carrying the city’s greetings on the front cover, a plan of the city on the inside, and on the back a quotation from Charles W. Eliot relative to city planning.
*
A Study of the Teaching of Government in
secondary schools will be made by Professor Edgar Dawson of Hunter College, New York City, who has been given a year’s leave of absence for the purpose. Professor Dawson, who is also field representative on civic education for the National Municipal League, will welcome correspondence with those interested in the subject, suggestions as to points which should be covered, or information as to successful experiments now being made in the field. It is expected that the results of this study will be published in the spring of 1921.


THE COMING OF CENTRALIZED PURCHASING STATE GOVERNMENTS
BY A. E. BUCK
I--INTRODUCTION
Growing Need for Centralized Control Over Purchasing
Approximately eighty per cent of the ordinary current expenditures of state governments is made in payment for the services of persons and for the purchase of supplies and materials, from thirty to sixty per cent going for the services of persons and from twenty to fifty per cent for the purchase of supplies and materials. In spite of this comparatively large expenditure for supplies and materials, it is only very recently that many of the states have become interested in the subject of purchasing with a view to economy there and have undertaken to centralize control over purchasing methods and procedure by fixing responsibility for all purchasing in a single unit of the government. The need for such control seems obvious. Numerous savings and certain advantages accrue from the operation of a centralized purchasing system. Briefly, these are
(1) the concentration of purchasing power, permitting goods to be bought in large quantities at the lowest and best prices under competitive bidding and promoting prompt delivery, inspection and payment for goods with the minimum inconvenience to dealers;
(2) the standardization of supplies, eliminating unnecessary range in kinds of goods, also unduly expensive grades; and (3) the development of an expert purchasing staff, acquainted with the details and skilled in the methods of the several phases of purchasing, inspecting, testing and storing goods.
Development of Centralized Purchasing in City Governments and National Government
The movement for centralized purchasing of supplies in governmental organizations is comparatively recent. It was about twenty years ago that cities first began to adopt such systems of purchasing. They copied to a large extent the purchasing methods and procedure of private organizations. Chicago was the first large city to establish a purchasing department (1898), which was placed under the direction of a “business agent” empowered to exercise considerable control over the purchasing of all the city’s agencies. In 1903 Philadelphia established a purchasing department with control over the purchase of all supplies for “the conduct of the business of the city.” It has been since 1910, however, that most of the larger cities have adopted centralized pur chasing systems. Among these may be mentioned Baltimore, Cleveland, Dayton, Los Angeles, Minneapolis, Milwaukee, New York and St. Louis.
The organizations for centralized purchasing in the various cities differ widely. Some have boards or comit-tees composed of appointive or ex officio members. Others have delegated the function of purchasing to an existing officer or department. The majority of cities, however, have created special purchasing departments, in most cases under the control of a single appointive officer. In those cities where the government has been recognized and consolidated into a few departments the function of purchasing
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has been made a division or bureau under one of the main departments, usually the finance department.
The general supply committee, in charge of the purchasing of supplies for the executive departments and other agencies of the federal government in Washington City, was created in 1910. This committee is composed of an officer from each of the executive departments designated by the secretary of the department. The work of this committee is under the direct supervision of the superintendent of supplies, who is appointed by the secretary of the treasury and is ex officio secretary of the committee. Standardization of supplies constitutes the principal work of the committee.
Movement for Centralized Furchasing in State Goverments
Twenty years ago (1899) Texas established the office of state purchasing agent for the several eleemosynary institutions of the state. This office operated continuously until the past year, when it was abolished and the exercise of its functions was given to the newly created state board of control. The next state to create the office of purchasing agent was Vermont in 1912. The Vermont agent was given the power to purchase all supplies and materials used by the several departments and institutions of the state. New Hampshire followed in 1913 by creating the office of purchasing agent, the agent having charge of the purchasing for all the state institutions and departments except the state agricultural college. Although several changes have since been made in the powers of the purchasing agent, they have resulted in an increase rather than a decrease of his authority. California established a state purchasing department in 1915, which has control over the purchase of supplies for all state
agencies, except the state university. In the same year Alabama constituted the secretary to the governor purchasing agent for the state. Recently (1919) the purchasing functions were taken away from the governor’s secretary and given to the newly created board of control and economy. In 1916 New Jersey established the office of state purchasing agent under the control of the state house commission. Ohio, in 1917, established a state purchasing department in the secretary of state’s office, having authority to purchase for the state offices and departments, but not for the institutions, the courts and certain boards. The Illinois civil administrative code of 1917 provided for the establishment of a division of purchases and supplies in the department of public works and buildings, which is authorized to purchase practically all of the state’s supplies. The New York legislature of 1918 enacted a law which created a central supply committee, consisting of seven ex officio members, and provided that it should become operative on July 1, 1919. In 1919, Idaho, Michigan and Wyoming provided for centralized purchasing of state supplies. Idaho placed the puchasing functions under the department of public works in its recently reorganized administration. Michigan created the office of state purchasing agent. Wyoming created a state board of supplies, consisting of three ex officio members.
The purchasing systems of the above named twelve states will be taken up in subsequent sections of this article and discussed in detail under the general heads, (1) organization of the purchasing agencies, (2) purchasing methods and procedure, and (3) operation of the purchasing systems.
Other states besides those named above have attempted to establish control over the purchase of supplies and


1920] PURCHASING STATE GOVERNMENTS
materials for their various using agencies, but have not been able to centralize the purchasing to any considerable extent. Nebraska vested the control over the purchase of stationery, office supplies and printing in the newly created department of finance under the reorganized administration.1 Institutional purchasing is left to the control of the board of commissioners of state institutions, a constitutional body. Massachusetts provided in the administrative consolidation act2 for the creation of a superintendent of buildings, who is charged with the care of the state house, and with the duty of purchasing all office equipment, stationery and supplies for the consolidated departments. The purchasing for the state institutions is conducted separately; only in the case of the institutions for the insane has there been an attempt to consolidate the purchasing. In Wisconsin the superintendent of public property has the power to purchase such supplies as are used by the departments quartered in the capitol.3 The state board of control supervises the buying of supplies for the state institutions except the state university, which makes its purchases separately. A large number of states have placed their charitable, penal and correctional institutions under the supervision of boards of control and these boards in several cases have consolidated the purchasing for their institutions. The best examples of this type of consolidated purchasing are to be found in Arizona,4 Kansas,5 Tennessee,6 and West Virginia.7 North Carolina has a co-operative purchasing committee
1 Civil Administrative Code, Laws of 1919.
3 Ch. 350, General Laws of 1919.
3 Ch. 33, sec. 33.03, Revised Stats. 1917.
4 Ch. 64, L. 1919.
5 Ch. 297, L. 1917.
! Ch. 20, L. 1915.
7 Ch. 58, L. 1909 (Sec. 596, Code of 1913).
119
composed of superintendents of certain state hospitals and schools.8
II—ORGANIZATION OF STATE PURCHASING AGENCIES
This section will consider the administrative control which has been established over the purchasing agencies of the twelve states having fairly well-developed centralized purchasing systems, namely, Alabama, California, Idaho, Illinois, Michigan, New Hampshire, New Jersey, New York, Ohio, Texas, Vermont and Wyoming; also the organization of each purchasing agency and the general scope of its purchasing power.
Alabama
The 1915 legislature of Alabama enacted a law9 which constituted the secretary to the governor purchasing agent for the several state departments other than the convict department and the state courts. For this work he received $600 per year10 and was required to give a bond of $10,000. The governor, auditor and treasurer were constituted a state board of purchase, having control over the work of the purchasing agent. The law establishing this organization was repealed in 1919 and the purchasing functions were vested in the newly created board of economy and control.11 This board is composed of three members, a chairman and two associate members, appointed by the governor and serving at his pleasure for terms not to exceed four years for the chairman and two years each for the associate members. The chairman receives $6,000 and the associate members $4,000 each per year.
8 Ch. 150, L. 1917; amended by Ch. 298, L. 1919.
3 Act No. 414, L. 1915.
10 Act No. 711, L. 1915.
u Acts No. 47 and 758, L. 1919.


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The board of control and economy is required to purchase “all supplies for all departments and activities of the state, including all educational institutions and the convict department.” It may also make purchases for the several counties of the state when requested by the governing body of each county. No legal provisions are made for the appointment by the board of a purchasing agent or staff to assist in purchasing. Under provisions of the code,1 which were not repealed by the law establishing the board of control and economy, the secretary of state is required to contract biennially for fuel used in the capital, stationery, printing and binding for the different state departments, all such contracts being subject to the approval of the governor, auditor and treasurer. This requirement will necessarily hamper the work of the board of control and economy, which began to operate on January 1, 1920.
California
At the head of the state purchasing department of California, created in 1915,2 is 'a state purchasing agent appointed by and serving at the pleasure of the governor. He receives an annual salary of $4,000 and is required to give bond for $10,000. The purchasing agent has power to appoint a deputy state purchasing agent at a salary of $3,000, a state testing engineer at $2,700 and to appoint and fix the salaries of three assistant state purchasing agents subject to the approval of the state board of control. He also has the authority to secure such other help as may be necessary for conducting the work of the department. Recently there were thirty-six persons employed and arranged according to the following
1 Secs. 1647-1677 of Code.
2 Ch. 851, L. 1915; amended by Ch. 187, L. 1919.
six working groups: foods and forage; building material, general hardware, machinery and implements; clothing and fabrics, drugs and chemicals, and leather goods; stationery and office supplies; testing laboratory; general stock and store division at San Francisco.
The purchasing agent has the power, subject to the approval of the state board of control consisting of three members appointed by the governor, to contract for and supervise the purchase of all supplies necessary for “every state department, commission, board, institution, or official,” except the state university and such funds as may be exempt from the jurisdiction of the purchasing department by unanimous vote of the state board of control.
Idaho
In connection with the code reorganizing the state administration, the 1919 legislature of Idaho passed a law3 which imposes upon the department of public works the duty of purchasing all supplies for the state departments and institutions. The purpose of the law, says the preamble, “is to secure the orderly and economical administration of the business affairs of the various departments and institutions, publicity and fairness in awarding contracts for all supplies and the keeping of accurate cost accounts.” The department of public works, the head of which is appointed by the governor, is given the power to contract for and purchase communication services, fuel, light, water, and all office supplies and equipment for the several state departments; also all provisions, supplies and equipment for the various charitable, educational, penal and reformatory institutions of the state, as well as tools and machinery for state road construction. No definite provi-
3 S. B. No. 147, L. 1919.


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sions are made in the law for the organization of a purchasing division or bureau under the department of public works.
Illinois
The Illinois civil administrative code of 1917, providing for the reorganization and consolidation of the state administration, created the office of superintendent of purchases and supplies under the department of public works and buildings. The superintendent is appointed by the governor and is directly responsible to the head of the department. He receives an annual salary of $5,000. His work is organized into the division of purchases and supplies and his office force consists of about fifteen persons. Considerable inspecting, analyzing and testing work is done by experts outside of his office, connected either with other code departments or with private organizations.
The division of purchases and supplies procures all supplies for the several state departments, except those formerly supplied by the secretary of state; also all supplies for the state charitable, penal and reformatory institutions and normal schools.
Michigan
A law1 was passed by the 1919 legislature of Michigan, which creates the office of state purchasing agent and provides that the agent be appointed by the governor with the approval of the senate to serve at the pleasure of the governor. He receives an annual salary not to exceed $4,000 and is not to be connected in any way with the sources of the supplies furnished the state. Upon entering office, he must take the constitutional oath of office and furnish bond to the sum of $10,000.
‘ H. B. No. 61 (H. Enrolled Act No. 199), L. 1919.
There is an advisory board attached to the office of the purchasing agent, consisting of nine members chosen from among the stewards of the various state institutions, together with the governor and the food and drug commissioner ex officio. The members of the advisory board serve for overlapping terms of five years each and receive no compensation for their services. This board is required to adopt by-laws subject to the approval of the governor for the conduct of the purchasing, and to meet with the purchasing agent at least once a month. The purchasing agent may appoint, with the approval of the governor, clerks and other necessary help.
The purchasing agent is given the power to purchase all supplies and materials necessary for the maintenance, extension, or operation of all state penal, reformatory, charitable and correctional institutions, except the University of Michigan and the Michigan Agricultural College. These institutions, however, may join with the others in making their purchases.
New Hampshire
In 1913 New Hampshire provided for the creation of the office of purchasing agent, the agent being appointed by the governor and council for a term of three years at an annual salary of $3,000.2 At the same time a board of control was created, consisting of two persons, appointed by the governor and council for overlapping terms of four years, and the governor ex officio. This board controlled the state institutions and supervised the work of the purchasing agent. A 1915 statute3 repealed the former law and created a board of trustees of state institutions composed of ten men, two for each institution, appointed by the governor for terms of five years. This
2 Ch. 140, L. 1913.
3 Ch. 176, L. 1915.


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board was authorized to employ a purchasing agent at an annual salary not exceeding $3,000. The purchasing power of this board was extended in 1917 to include the buying of the supplies and materials for all institutions and departments of the state except the state agricultural college.1 In 1919 the board was abolished and a separate board of trustees for each institution was substituted.2 The purchasing agent was again made an appointee of the governor and council for a term of three years at a salary fixed by the governor and council. He is allowed such assistance in the performance of his duties as may be approved by the governor and council.
At the present time the purchasing agent is given the power, subject to the supervision of the governor and council, to purchase all supplies and materials for the state institutions, including the normal schools, the state house and the departments quartered in the state house; also for the county institutions upon request of the county commissioners, and for the New Hampshire College of Agriculture and Mechanic Arts and the Soldiers’ Home upon the request of their trustees.
New Jersey
A New Jersey statute, passed in 1916, vests authority for the purchase of all supplies and materials for all using agencies of the state government in the state house commission, composed of the governor, treasurer and comptroller.3 The office of state purchasing agent is created, the agent being appointed by the governor with the approval of the senate for a term of five years at an annual salary of $5,000. He is required to have had practical purchasing experience and to
i Ch. 112, L. 1917.
3 Ch. 14, L. 1919.
3 Ch. 68, P. L. 1916.
[Feb.
give bond for $50,000. His work is under the supervision of the state house commission and he may be removed by the governor at any time for nonperformance of duty. Such assistants may be appointed by the purchasing agent with the approval of the state house commission as are necessary. An advisory board, consisting of one representative from each of the using agencies, is constituted and required to co-operate with the state house commission in determining standards and purchasing methods and to meet with it at least every three months.
New York
A 1918 law provided for the creation of a central supply committee of seven members, consisting of the state comptroller as chairman, commissioner of education, superintendent of public works, secretary of the trustees of public buildings, chairman of the state hospital commission, fiscal supervisor of state charities and superintendent of state prisons.4 This committee is in personnel identical with the commission named in 1917,5 to investigate purchasing methods, and which recommended to the legislature the adoption of a purchasing system similar to that of the federal government in Washington City.
According to the law the central supply committee was given until July 1, 1919 to organize and consolidate the state purchasing. After that date all materials and supplies used by the state agencies and designated by the committee, excepting those required by law to be purchased for the penal institutions, shall be bought by the committee. The committee, under a provision of the law, has appointed a sub-committee of four members, representing the departments and principal
4 Ch. 400, L. 1918.
5 Ch. 142, L. 1917.


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institutional groups, which together with the secretary of the committee conduct the purchasing procedure with the approval of the central supply committee. This committee is not concerned with the public printing.
Ohio
In 1917 the Ohio legislature enacted a law providing for the establishment of a state purchasing department attached to the office of secretary of state, who appoints a purchasing agent for a term not to exceed his own at a salary not to exceed $3,000 [per year.1 The purchasing agent is required to give bond for $15,000, and may not receive rebates or gifts from dealers under penalty of fine and imprisonment.
Such supplies and equipment as may be determined by the secretary of state, the state auditor and the purchasing agent may be purchased by the agent, except supplies and equipment for the state election boards, state courts, institutions under the state board of administration, militia, and agricultural experiment stations. The state educational institutions and the commissioners of public printing are not included.
Texas
Texas established in 1899 the office of state purchasing agent for the various eleemosynary institutions of the state.2 The purchasing agent was appointed by the governor with the approval of the senate for a term of two years at an annual salary of $2,000. In 1915, the annual salary of the purchasing agent was made $3,000, and the educational institutions of the state were added to those already under his purchasing supervision.3 A law,
‘H. B. No. 193 (p. 422), L. 1917.
2 Ch. 86, L. 1899.
3 Ch. 126, L. 1915.
creating a state board of control, was enacted by the 1919 legislature, which abolished the office of state purchasing agent and gave the exercise of his functions to this board.4 The board is composed of three persons appointed by the governor with the senate’s approval for overlapping terms of six years at annual salaries of $5,000 each. One of the seven divisions of this board’s work is designated as the division of purchasing, the chief of which is appointed by the board and must have had at least five years experience in purchasing. The purchasing power of the state board of control is extended to all departments of the state government. The board became operative on January 1, 1920,5 when it assumed the duties of the board of public printing, composed of the attorney general, comptroller and secretary of state.6
Vermont
Vermont created the office of purchasing agent in 1912.7 The agent is appointed by the governor with the senate’s approval for a term of two years at a yearly salary of $2,500. He is required to execute a bond to the sum of $20,000. It is his duty to purchase all supplies, including printing, fuel, water and light, materials and equipment for all state departments, institutions and officials, except the soldiers’ home and the military department. He may purchase for the soldiers’ home upon request.8 A law, enacted in 1919, placed the purchasing agent’s work under the supervision of the state board of control, although the manner of his appointment to office remains unchanged.9
4 Ch. 167, L. 1919.
6 Ch. 4 (first called session), L. 1919.
6 Ch. 84 (second called session), L. 1919.
7 No. 253, L. 1912.
8 No. 202, L. 1919.
3 No. 220, L. 1919.


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Wyoming
The 1919 legislature created a state board of supplies, consisting of the treasurer, auditor and state engineer, with the power to buy all supplies furnished by the state to any department, board or institution, except the state university and the state highway commission.1 This board is authorized to hire and fix the salary of a clerk to have charge of all supplies and the office of the board at the capitol.
Ill-PURCHASING METHODS AND PRO-
CEDURE
This section will deal briefly with the legal provisions and practices relating to the purchasing methods and procedure of those states, the purchasing organizations of which have been considered in the preceding section. Consideration will be given to the following points: Determining supply schedules, advertising for bids, receiving and passing on bids, letting contracts, ordering, delivering and inspecting goods, paying for goods, and storing and testing goods.
Alabama
Under the law the board of control and economy is required to make out an itemized list of proposed purchases and to give notice in at least one daily paper published in Montgomery. It may also give notice in one daily paper in Birmingham and Mobile. The notice must state in a brief general way the nature of the supplies to be bought, also that sealed written proposals to furnish such supplies will be opened at the office of the board on a fixed date, which must be not less than ten or more than twenty days thereafter. Itemized lists of supplies needed must be kept on file at the board’s office and be open to any party for bids.
1 Ch. 96, L. 1919.
[Feb.
Contract must be let to the lowest responsible bidder if his prices are reasonable and not greater than the prevailing market prices. The board cannot purchase any supplies from any firm in which a member of the board has a pecuniary interest. It may reject all bids submitted, but must record the reason for its rejection. All contracts for purchases must be approved by the governor. Successful bidders may be required to give bond with a duly authorized surety company to guarantee performance of contracts. The board may adopt such rules and regulations with the approval of the governor as may be required to supplement the foregoing provisions of the law. Each using agency must file with the board by January 1st of each year an inventory of all supplies and equipment in its possession.
California
The purchasing department makes up supply schedules upon the basis of estimates or requisitions submitted by the various using agencies of the state. All goods purchased by the department are standardized as far as possible and divided into twenty-seven schedules, similar kinds being grouped together for the convenience of dealers. While the newspapers are used as a means of advertising for bids, the department prefers to send schedules directly to prospective bidders. After bids have been received they are tabulated and the awards made to the successful bidders. All contracts and purchases must be approved by the state board of control before being made. Contracts are usually made for three, six and twelve months, the shortest period being more commonly used because of unsettled market conditions.
Purchases are of two kinds, namely, contract and non-contract. The purchasing procedure for contract supplies


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is as follows: The using agency makes out a purchase order addressed to the contractor, which designates the quantity, measure, description, unit, cost as per contract of the goods needed, date of delivery, and the fund out of which the order is payable. This order is signed by the executive head of the using agency and is made in quintuplicate—the original is sent to the purchasing agent, who approves it and places it with the contractor; the duplicate is also sent to the purchasing agent, who returns it to the using agency as a notice that the order is placed; the triplicate is retained in the files of the using agency; the quadruplicate is sent to the purchasing agent as a copy for the purchasing department; and the quintuplicate is a copy for the state board of control, which must approve of each contract order before final payment is made. Upon the receipt of the order the contractor ships the goods according to the date set for delivery and forwards invoices in triplicate to the using agency. When the goods are delivered the using agency’s storekeeper checks them up on a blank called report of goods received. This report is then approved by the executive head of the agency and the original invoice is attached to the original copy of the report and it, along with the duplicate and triplicate copies, are sent to the purchasing agent. The quadruplicate copy is kept in the files of the using agency. The purchasing agent checks up the report and returns the triplicate copy to the files of the using agency. When a copy of this report and the invoice, accompanied by a sworn statement of the purchasing department as to the correctness of the claim, is approved by the state board of control the comptroller then audits the claim, draws his warrant for the amount and the treasurer pays the same.
In the case of non-contract purchases
the procedure is as follows: The using agency sends a requisition to the purchasing agent for the supplies needed, giving quantity, measure, description, amount on hand, estimated cost, and date wanted. This requisition is made out in duplicate, the original copy going to the state purchasing agent and the duplicate copy remaining in the files of the using agency. Upon receipt of the bids, the purchasing agent places an order with the successful bidder for the goods as specified on the request for quotations and as originally specified on the requisition from the using agency. This order is made out in quintuplicate—one copy, signed by the purchasing agent, is sent to the bidder; two copies are sent to the using agency, one to be signed by the executive head and attached to the invoice for the purchasing department, the other to be retained in the files of the using agency; one copy is retained by the purchasing department; and one copy is sent to the state board of control. The shipping, checking up and paying for the goods are the same as under contract purchase. The purchasing office has a card system for keeping records of the quantities purchased for the various using agencies and the prices paid.
The 1919 legislature appropriated $200,000 to the purchasing department to be used as a revolving fund in the purchase of supplies with the approval of the state board of control, the fund to be reimbursed from the appropriation accounts of the using agencies. Prior to this time the department had had a revolving fund of $25,000.
The purchasing agent is given the power, subject to the approval of the state board of control, to maintain warehouses and to insure the goods stored therein, the premium to be paid out of the revolving fund and prorated and added to the price of the goods


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when shipped to the various using agencies. A warehouse has been established in San Francisco in which non-perishable merchandise needed by the institutions is stored. Branch supply depots have been located in Sacramento and Los Angeles, carrying stationery and office supplies and billing to the offices and departments at cost plus 2 per cent to cover breakage, shrinkage and so forth. The purchasing department maintains two testing laboratories in San Francisco and one in Sacramento.
Idaho
Itemized lists of supplies on hand and of supplies needed are required under the law to be made by the commissioners of the departments and the superintendents of the state institutions to the department of public works. This department then makes an examination of the supplies on hand and of the additional amount of supplies necessary on the basis of which itemized and classified supply schedules are prepared. Notice must then be given in one or more newspapers of general circulation for at least ten days that sealed bids will be received by the department of public works up to a fixed date, that supply schedules are on file for the inspection of dealers at the office of the department, and that bids will be opened at a specified time and contracts awarded to the lowest responsible bidder. Each bid must be accompanied by samples of the supplies to be furnished, which are ample in quantity to be divided and part kept in the office of the department and part, in case an award is made, sent to the superintendent of the institution receiving the supplies. All bids must be accompanied by a certified check on some responsible bank, payable to the treasurer of the state, equal in amount to 5 per cent of the bid, which check is
[Feb.
returned in case no award is made. The bids must include the delivery of the supplies to the departments and institutions for which they are purchased. The department of public works is required to record an abstract of all bids made for furnishing supplies and equipment, giving the name of the bidder, terms, and prices, and to keep this on file, open to public inspection, until the end of the contract term to which the bids relate. Each bidder has the right to be present, either in person or by agent, when the bids are opened and to examine all bids. The department has the right to reject any and all bids and to advertise again for bids.
Contracts are not to be entered into for a longer period than one year and are to embody such conditions as the department of public works may determine. Quality and price being equal, preference is to be given to goods produced or manufactured within the state. Contracts when transferred to other dealers are void and penalty attaches to such action. Perishable supplies are not purchased under state contract, but the institutions are allowed to buy them under proper regulations and must render an itemized account for same to the department of public works. Emergency purchases may be made in open market and accounted for in a similar manner.
Departmental and institutional stores are subject to inspection at all times by the department of public works. This department must keep a complete set of books showing all purchasing transactions with the various using agencies. It must also take a complete inventory of all state property.
Illinois
The legal provisions relating to the purchasing procedure of the division of purchases and supplies in the department of public works and buildings are


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as follows: Supplies for the several departments, except perishable goods and emergency needs, must be purchased in quantities and contracts therefor must be let to the lowest responsible bidder. Advertisements for bids must be published for at least three days, the first and last of which publications must be at least ten days apart, in one or more newspapers of general circulation published in each of the seven largest cities of the state, determined by the most recent federal census; and, also, in one “secular English newspaper” selected by the department by competitive bidding, designated as an “official newspaper” and to continue so for one year after its selection. The proposals must be opened publicly on the day and hour and at the place mentioned in the advertisement. Any and all bids may be rejected and re-advertisement made. The department of finance is required to prescribe uniform rules governing specifications, advertisement for bids, opening of bids and making of awards; also, to keep a catalogue of prices current and to analyze and tabulate prices paid and quantities purchased.
The purchasing procedure as developed in practice is briefly as follows: The division of purchases and supplies obtains the quantities of supplies desired from requisitions made by the several using agencies. These requisitions are made out in triplicate and when approved by the director of the department in which the using agency is a division, one copy is filed with the agency, one with the approving director and one is sent to the division of purchases and supplies. The requisitions for supplies are brought together by the superintendent of purchases and supplies, and are classified, standardized and arranged in schedules. Upon advertising for bids, the score or more of classes are grouped under three main
divisions and bids are requested for the items of the several classes of each division independently of the other divisions. Bids may be received for one or all institutions on any or all items. All bids must include transportation charges. Usually bidders are required when submitting quotations to send samples to match standards specified. All samples, except perishable ones or those upon which contracts have been let, are returned to the bidder at his expense after the awards have been made. After the bids have been publicly opened upon the day and hour advertised they are tabulated upon sheets for this purpose. Awards are made upon the basis of items and other things being equal preference is given to goods produced in Illinois. Contracts for supplies usually cover a three months period, and provide that the quantity actually used will be within 10 per cent of the quantity contracted. Following the awarding of contracts the division of purchases and supplies issues a purchase order based upon the requisition for supplies. This order is made out in quadruplicate, one copy going to the contractor, one to the using agency, one to the department immediately in control of the using agency, and one is retained by the division of purchases and supplies. Goods are shipped immediately upon receipt of the order, at a stated future time, or upon notification of the using agency. Invoices in triplicate for all goods must be mailed by the contractor to the using agency. When received, the goods are inspected; if they fail to conform to specifications they are rejected and open market purchases are made to meet the requirements at the expense of the contractor. Bills are promptly paid and advantage is taken of all discounts. In case the using agency is permitted to make purchases or to obtain com-


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petitive bids an authorization is issued in triplicate by the superintendent of purchases and supplies. If the using agency places an order for delivery a blank for this purpose is required to be made out in triplicate.
Michigan
The provisions of the law relating to purchasing procedure are as follows: Estimates of supplies needed must be furnished to the purchasing agent by the stewards or executive officers of the various institutions at such times as may be designated by the advisory board. These estimates are open to public inspection when filed with the purchasing agent, and must state as far as possible the quantity, quality and brand of articles needed. The purchasing agent is then required, with the approval of the advisory board, to standardize all supplies purchased, and in advertising for bids to confine himself to the standards so set up. Samples may be required to accompany bids. In awarding contracts, all things being equal, preference is given to home products. The purchasing agent, with the approval of the governor, may require a bond for not less than one-third the amount of the bid to be filed with the secretary of state as a guarantee for the execution of the contract. All bills of lading and claims for shortage and breakage must be filed with the purchasing agent. Invoices in triplicate must be made out by the contractor, one copy being mailed to the purchasing agent and the other two to the steward of the institution to which the goods are shipped. When the goods are received if the steward finds they do not come up to the sample he may reject them. If goods are satisfactory, the steward transmits to the purchasing agent a certified copy of the invoice, which the purchasing agent examines and in turn transmits to the
state auditor, who draws his warrant for payment upon the state treasurer. Emergency purchases may be made, with the consent of the purchasing agent, in open market. The purchasing agent and the advisory board frame rules for the purchase of perishable goods by the institutions.
New Hampshire
The law requires the purchasing agent to make all purchases by competitive bidding, where in the judgment of the governor and council it is practicable. It also authorizes the governor to set aside in the state treasury a working capital for the prompt payment of bills contracted by the purchasing agent. Two years ago this capital amounted to $45,000.
In practice, the institutions and departments submit to the purchasing agent estimates of their supply needs on requisition blanks furnished by the agent. These are arranged by the purchasing agent in the form which in his judgment will secure the most advantageous bids and are mailed directly to dealers capable of supplying the goods. Since dealers of Boston and New York supply a large part of the goods used, advertisements in local newspapers are not used. Contracts are let for different periods, but not to exceed one year. Delivery orders based upon the requisitions, are sent to the contractors by the purchasing agent. Invoices must be submitted to the using agency in triplicate. When the goods have been received and approved the original and duplicate copies of the invoice are sent to the purchasing agent and the triplicate copy is retained in file. The purchasing agent examines the invoice, retains the duplicate copy and approves the original copy, which goes to the state treasurer for payment. The invoices for a particular institution are classified,


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analyzed and posted in a record book. At the end of each month an analysis of the payments shown by this book is forwarded to the head of the institution.
New Jersey
The law provides that all supplies must be contracted for and purchased by authority of the state house commission. This commission has power to maintain warehouses and to constitute laboratories. It also has power, the advisory board co-operating, to establish standards of quality. Using agencies may be authorized by the commission to make open market purchases whenever deemed desirable. It is the duty of the purchasing agent to prepare from detailed applications submitted to the commission by the various using agencies schedules of all needed supplies and to submit them to the commission for its approval. After the schedules have been approved, the state house commission must requisition the comptroller for the amount of money estimated to be necessary to defray the cost of the schedules, indicating the appropriations against which the proposed purchases will be charged. The comptroller must approve this requisition, unless it appears that the free balance of any appropriation is not sufficient to cover the charge proposed against it, in which case he rejects that part of the requisition and approves the remainder. The purchasing agent must then arrange the schedules in the manner best calculated to attract competition and advantageous prices. All purchases must be made upon such schedules, and contracts must be executed with vendors. The purchasing agent must apportion expenditures among the using agencies in proportion to the purchases they have made and certify the same to the comptroller. All bills
are paid by the state treasurer upon the comptroller’s warrant.
In actual practice the requisition by the state house commission upon the comptroller for the amount of money estimated to be necessary to defray the cost of the schedules has been dispensed with as useless and a requisition is made upon the comptroller after the contracts are let and the amounts to be spent are definitely known. A “hand book showing the operation of chapter 68, P. L. 1916“ (purchasing law) was got out by the state house commission at the time the purchasing system was installed, which outlined an elaborate and detailed plan of purchasing procedure. The plan has since been considerably revised. At the present time the using agencies submit detailed applications for supplies to the purchasing agent, who makes out schedules upon the basis of standardized specifications and, after approval by the state house commission, mails them to dealers asking for bids. All bids must be submitted to the purchasing agent by a specified date, accompanied by a small deposit and in most cases by samples of the goods to be furnished. Awards are made upon the basis of item bids, which bids must include transportation charges. After the awards have been made the samples and deposits of the unsuccessful bidders are returned and the successful bidders are required to execute contracts and bonds in triplicate copies, one copy each for the purchasing agent, state comptroller and contractor. Following the contracting, the using agency sends a requisition for supplies to the purchasing agent, who thereupon places an order with the contractor for the delivery of the goods to the using agency. Upon delivery the goods are inspected by the storekeeper and a certified copy of the invoice sent to the purchasing agent, who checks it with


130 NATIONAL MUNICIPAL REVIEW SUPPLEMENT [Feb.
the order and sends it to the comptroller for payment. The storekeeper may reject all goods not found satisfactory upon examination. Provisions are made for emergency and nearby purchases, the using agency making such purchases upon authority from the purchasing agent.
A central storeroom has been established in the state house, which takes care of all supplies for the various state departments located at the capitol. No state warehouses have yet been established. A revolving fund of $250,000 has been provided and is used by the purchasing agent to make seasonal purchases, which are held in stock until desired by the various agencies.
New York
Under the law the committee is required to make an annual classified schedule with formulas and specifications of all materials and supplies to be purchased on joint contracts. In order to assist the committee in making up this schedule, the using agencies are required to submit to the comptroller between January 1 and March 1 of each year a list of the estimated quantities of materials and supplies, of such character and classes as the committee may designate, that will be required for the next ensuing fiscal year. These lists, after being standardized as far as possible, are to be consolidated by the committee into the annual classified schedule, which is to be used as a basis for soliciting bids. Contracts may be let, not exceeding one year, to the lowest responsible bidder, quality and conformity with the specifications being considered. All bids may be rejected. The committee may use its discretion in requiring a bond for the faithful performance of each contract. Immediately upon the execution of the contract the comptroller must notify each using agency for which any
materials and supplies have been included and must state the contract prices of such articles. All purchases are to be made for cash, or credit not exceeding sixty days’ time. Provisions may be made for emergency purchases.
In practice, the sub-committee meets from time to time, prepares the specifications, advertises for bids, and awards the contracts subject to the final approval of the statutory members of the committee. Contracts were made in July 1919 for six months covering office supplies for one hundred and sixty-six state agencies. Bids were accepted upon the item basis for all using agencies, and were required to be accompanied with a certified check for 5 per cent of the total amount of the bid. In some cases samples were required. Only approximate quantities were named in the contracts, and other things being equal preference was given to bidders resident of the state. A bond equal to 25 per cent of the total amount of the contract was required. Using agencies place their orders directly with the contractor and supplies are shipped to them prepaid.
Ohio
The law requires the purchasing department, upon determining the kinds of supplies it will purchase, to notify the using agencies by sending them a printed list of the same, and the using agencies must thereafter secure these supplies through the purchasing agent except when special permission is given to obtain them otherwise. The purchasing agent must buy supplies by competitive bidding. Notices, stating time and place bids will be opened, conditions and terms of proposed purchase and itemized list of supplies and quantities needed, must be sent by registered mail to dealers at least fifteen days before the day set for opening the


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bids and the postoffice receipts of the mailing of such notices filed in the purchasing agent’s office. At the same time a copy of such notices must be posted upon the office bulletin board of the purchasing agent. Any dealer may have his name and the supplies handled by him listed with the purchasing department and the purchasing agent must send a notice for bids to every dealer so listed. A copy of each bid must be filed with the state auditor. The purchasing agent may require a bond with any contract for supplies. Contracts are awarded to the lowest and best bidder on each item, and the purchasing agent may accept or reject any or all bids. All using agencies must make requisition for supplies upon the purchasing department, using the forms prescribed by the state auditor. The purchasing agent is required to make monthly statements to using agencies of goods furnished them, and they in turn issue vouchers to the state auditor, who draws warrants for same and the money is deposited in the state treasury to the credit of the supply purchasing fund of the purchasing department. The purchasing agent is authorized to establish a state exchange department to take over on inventory supplies not needed by any using agency which may be requisitioned by other agencies or sold in open market.
Supplies have not been standardized and invitations to bid are made up in quintuplicate copies, one copy of which is filed by the purchasing agent, one posted on office bulletin board, and three sent to prospective bidders with instructions when bidding to return one to purchasing agent, send one to the state auditor and retain one copy. The purchasing department has a storeroom in the state house which supplies the departments located at the capitol. A requisition for supplies is made out by the using agency in quintuplicate, one
copy going to the auditor, two to the purchasing agent, one to the storeroom, and one being retained by the agency. If goods are not in the storeroom, or are shipped directly to the department by the vendor, the purchasing department makes out a purchase order in quadruplicate, one copy going to thp vendor, one to the receiving clerk, one to the state auditor and one being retained by the department. Vouchers are made out in duplicate and one copy with invoices attached is presented to the state auditor for payment.
Texas
The legal provisions relating to purchasing procedure authorize the state board of control through the chief of its division of purchase to contract for all supplies, save those strictly perishable, for one year beginning April 1 annually. Advertisements for bids must be run in at least four of the leading papers of the state for a period of four weeks, and shall state the nature of the supplies needed and the conditions of bidding. The board may purchase for a period of three months if found cheaper, or it may reject all bids and buy in open market. Other things being equal, bidders, having an established business in the state, are preferred. All bids must be accompanied by a certified check in the amount fixed by the board, and also samples of the goods to be furnished. The successful bidder upon entering into contract is required to furnish a bond equal to one-third of the amount of his bid. Invoices for all sales are required in triplicate, one copy to be sent to the board of control and two to the storekeeper of the using agency. When the goods are received the storekeeper inspects them and transmits one of the invoices certified to the board, which checks and transmits it to the comptroller, whereupon a warrant is drawn


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on the treasury and the bill is paid. In cases of emergency institutions are permitted to make purchases.
It is not known at time of this writing just what forms and methods are used by the state board of control, which became operative January 1, 1920. Probably it has adopted those used by the office of state purchasing agent, whose duties it assumed.
Vermont
The law requires the purchasing agent to advertise for bids in the manner prescribed by the board of control by giving notice in at least two daily papers published in the state. The board approves all contracts for supplies. It may reject all bids and require the purchasing agent to readvertise, or it may permit the purchasing agent to buy in open market.
In practice, whenever a using agency is in need of supplies the head of the agency makes out a requisition in triplicate on the purchasing agent giving the name and description of the articles, the quantity required, the date needed, the quantity on hand, and the last purchase price. The purchasing agent, upon receipt of the requisition, places an order with the contractor for the supplies needed and has the goods shipped direct to the using agency, while a bill for the same is sent in triplicate to the purchasing office. The order is made in quadruplicate, two copies going to the using agency for checking purposes when the goods are received. Newspaper advertisements for bids are not used unless the amount of goods to be purchased exceeds $500, the result being that nearly everything is purchased by competitive bidding on specifications mailed directly to dealers. In case of emergency, goods are bought and the head of the using agency then notifies the purchasing agent of the
purchase and asks his approval of the same.
Wyoming
The law requires all using agencies to submit to the state board of supplies by November 1 of each year detailed estimates of needed supplies. The supplies are to be classified for convenience of dealers. The board is required to advertise annually during November in at least three newspapers of the state, no two of which are in the same county, for bids on supplies beginning January 1, following. Advertisements must state the time and place proposals will be opened and that specifications will be supplied to prospective bidders by the secretary of state. Specifications must state the nature, kind, quality and estimated amount of supplies needed. Each bidder must accompany his proposal by a certified check equal to ten per cent of the amount of the bid. Awards are made to the lowest responsible bidder for each class of goods. The successful bidder at the time of entering into contract must furnish bond to the amount specified by the board. Failure to do so invalidates the contract. The board has the right to reject all bids.
IV—OPERATION OF STATE PURCHASING SYSTEMS
Of the twelve states having fairly well centralized purchasing systems, the systems of only six, namely, California, Illinois, New Hampshire, New Jersey, Texas and Vermont, have operated long enough to warrant a brief statement in each case of the volume of business, the operating cost of the system, and the saving to the state.
California
Since July 1,1916, the state purchasing department has been buying all sup-


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plies for ninety-six departments and institutions of the state. During the two years ending June 30, 1918, the total purchases of the department amounted to $8,320,385, with a saving to the state of approximately $2,000,000. The total cost of operating the department for the two years, including equipment, was $120,248, making a percentage of cost to purchase of 1.45 per cent.1
Illinois
During the year ending June 30, 1918, the division of purchases and supplies made and supervised the purchase of supplies amounting to $4,908,-875. The expense of running the division for the same period was $28,781 thus making the ratio between the total purchases and the cost of operating the division .58 of one per cent.
Mr. T. G. Vennum, acting director of the department of public works and buildings, says: “The work of the division of purchases and supplies is one which, by reason of the entire lack of spectacularism of all purchasing work, might be overlooked for particular commendation. Yet on the purchasing agent of any large business— even one transacting one-thousandth as much business as the state of Illinois —depends, to a great extent, the success of the enterprise. . . . Sup-
pliers often study carefully to make the state pay a long price where possible, and only conscientious skill can offset the skill of the supplier. Henry H. Kohn rounds out a year as head of the division of purchase and supplies with a record of remarkable work.”2
Mr. Kohn states the advantages of centralized purchasing as follows:
One year’s experience has taught this division (1) that centralized purchasing makes available
1 Second Report of Purchasing Department of California, November 1,1918.
2 Report of the directors under the Civil Administrative Code, 1918, pp. 165 and 174.
to the state the services of experts in buying through co-ordination with the specialists of the various divisions; (2) that purchasing in large quantities instead of small secures uniformity of price and quality for the same article consumed by the different divisions; (3) that it centralizes the point of contact between bidders and the state; (4) that it locates responsibility for determining price; (5) that it establishes an automatic check over deliveries in so far as; supplies and materials bought by this division are received and checked by the divisions which consume them; (6) that it prompts the establishment of standards for various classes of supplies consumed by the divisions; (7) that the taking of discounts invites prompt deliveries, lower quotations and reliable competition.2
New Hampshire
According to the latest available information the annual purchases of the purchasing agent amount to approximately $675,000 while the cost of conducting the work is about $8,000.3 This makes the cost of operating equal to 1.2 per cent of the total volume of business done by the purchasing agent.
New Jersey
For the year ending June 30, 1918, the purchasing department placed orders for supplies amounting to $2,602,570.4 The operating expense of the department for the same period was $22,579, or a ratio of operating expense to volume of business of .98 of one per cent.
Texas
The volume of business done by the state purchasing agent during the past four years has averaged about $2,000,-000 per year. The expense of conducting the purchasing agent’s office during 1918 amounted to $9,980, which is approximately one half of one per cent of the total purchases. The saving to
3 Biennial Report of Purchasing Agent, June 30,1916.
4 Report of State House Commission, June 30,1918.


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the state by centralized purchasing for the past four years is estimated at almost a million dollars.1 However, upon this record and with an experience extending over twenty years, the 1919 legislature saw fit to abolish the office of state purchasing agent and to place the purchasing functions under the newly created state board of control.
Vermont
The total annual purchases made by the purchasing department amount to approximately a quarter of a million dollars. The cost of maintaining the department is about two per cent of this amount.2
V—CONCLUSIONS
A brief summary of the general principles involved in the organization and procedure of the centralized purchasing systems of the twelve states, which have already been discussed at some length, may be of value to those interested in the subject of state purchasing.
There have developed four distinct types in the organization of the state purchasing agencies, which are in the order of their efficiency as follows: (1) Division of a department under reorganized and consolidated administration; (2) independent department headed by single officer; (3) board of control exercising purchasing functions; and (4) board of ex officio members with purchasing powers. The purchasing systems of Illinois and Idaho are examples of the first type. In both cases purchasing is placed under the department of public works. Responsibility for the work is fixed, and full co-operation with other departments under the consolidated administration is estab-
1 Nineteenth Annual Report of the State Purchasing Agent, 1918.
2 Report of the Purchasing Agent, 1916.
[Feb.
lished.3 Examples of the second type of purchasing organization are those of California, New Jersey, Michigan, New Hampshire, Ohio and Vermont. In these states responsibility for purchasing is largely fixed in a single person, called the purchasing agent, who heads a department practically independent of other state departments and agencies. This seems to be the form of organization for efficient purchasing work best adapted to those states which have not reorganized and consolidated their administration. In every case, except Ohio, the purchasing agent is appointed by the governor. In Ohio the purchasing agent is responsible to the secretary of state. In California and Vermont he is under the supervision of the state board of control, and in New Jersey he is under the state house commission. The third type, where the purchasing is left to the state board of control, is found in Alabama and Texas. The board of control is an attempt to consolidate the administration, especially of state institutions, looking toward more efficient management. However, it at once introduces board government, which for purely administrative purposes is regarded as inefficient, unbusinesslike and irresponsible. But even setting aside these objections, a board of control, burdened with fiscal, administrative, managerial and quasi-legislative functions, can hardly be expected to initiate and carry out an efficient system of purchasing. Examples of the fourth type of purchasing organization are those of New York and Wyoming. In these states the authority to purchase is vested in boards composed of state officers serving ex officio. The members of such boards are charged with numerous other duties and, therefore, have very 3 “ Administrative Consolidation 'in State Governments,” supplement to National Municipal Review, November 1919.


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little time to give to the purchasing work. The work, if it is to be done, must he delegated to some person or group of persons. This is the case in New York where the purchasing work is delegated to a sub-committee, and responsibility for the results is thereby practically dissipated.
In the development of efficient purchasing methods and procedure, Illinois and California have probably gone further than the other states. All state purchasing agencies make up schedules of supplies from requisitions or estimates furnished by the using agencies, but not all of them attempt to standardize the supplies used. Bids are secured by employing one or all of three methods of advertising, namely, advertising in newspapers, posting schedules on bulletins, and mailing schedules directly to dealers. In most cases only sealed bids are received and must be accompanied by certified checks to insure good faith. Awards are made to the lowest responsible bidder, and usually preference is given to local dealers or home products. Contracts are usually entered into for periods of three, six, or twelve months and bonds are required to guarantee their performance. Practically all of the purchasing agencies order the goods to be delivered directly to the using agencies. California is beginning to develop a system of warehouses, also a staff of testing experts to receive the goods. The important function of inspecting and testing goods is usually left to storekeepers and stewards of
using agencies, who do not have the training or equipment for the effective performance of their work. Standard specifications avail little unless there are thorough inspections and tests of all goods received. Several state purchasing agencies are very slow about making payment for goods, and hence do not take advantage of discounts. The Illinois system is perhaps the most efficient in this respect. Revolving funds have been provided for several of the state purchasing agencies, thus enabling the agencies not only to make quick payments but to purchase goods out of season and store them for future consumption.
When using agencies buy their own supplies, they frequently spend more than is necessary, sufficient scrutiny cannot be exercised on the part of the state, and favoritism is often shown in the award of contracts. If properly managed, there is no doubt that a centralized purchasing system for state agencies will prove more efficient and economical than the old method of each using agency buying its own supplies. This statement is borne out by the fact that none of the states which have adopted a system of centralized purchasing has discontinued it, only the organization to administer it has been changed in one or two cases. The operation of a centralized purchasing system ought to contribute very effectively to the success of a state budget system by establishing control over all expenditures for supplies.


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NATIONAL MUNICIPAL REVIEW VOL. IX, No. 2 FEBRUARY, 1920 TOTAL No. 44 VIEWS AND REVIEWS I OUR committee on nominations was more adventurous this year than usual and has brought to our colors the important leadership of Charles E. Hughes as our President. Of all the men conspicuous in American public life, Mi. Hughes is the one best prepared to co-operate in our enterprizes by an accumulation of matured convictions based on experience as governor of our most populous state. When we deal with problems of state re-organization, state finance, election laws, short ballot, legislative rules, utility control and many other questions relating-to forms of government, we deal with questions wherein he was a pioneer among all governors. As governor his incessant rejection of expediency and compromise in favor of principle was an inspiration; his tactics of “defeat me on this issue if you dare” were new to politics. His has been a name to conjure with in New York ever since and even the Democrats were competing for the honor of installing his defeated reforms years after he left Albany. When accepting our nomination, he told Mr. Purdy that he plans to devote more of his time hereafter to public matters. Ours is the logical outlet for his energy and the problem will be to make our programs worthy of his valuable time. In inviting Mi. Vanderlip to accept our treasurership, we were again taking advantage of an announced determination to retire from active business to spend more time on civics. We told him of the far-reaching development of small-city chambers of commerce with modern local civic program and of our need for evidence that our work is not for specialists only but deserves the attention of public-minded business men. Our secretaryship remains vacant, but through no lack of diligence in the nominating committee. Mi. Woodruff, now and forever our honorary secretary, happily has consented to fil the gap. In the new council the feature is a larger number of business men and of‘ women. I1 OUR annual meeting at Cleveland was in its attendance typical of these meetings in late years and as baing as usual to the management. The attendance was mainly professional civic directors, coming because this is the annual outing of their fraternity and the only opportunity to meet their fellows. When they had speeches to emit they entered the convention room; otherwise their preference was for the personal informalities of the always-interesting lobby and for the cozy heart-to-heart talks at the professionaI problem meetings organized by the civic secretaries’ association 61

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62 NATIONAL MUNICIPAL REVIEW [February and the governmental research conference. It was not always easy to muster a decent quorum to listen to a formal discussion of great current public problems. It sometimes seemed as if Mr. McClintock of Pittsburgh, who has never an axe to grind or a word to say on the 3001, were the only one who had come to be instructed rather than to instruct! The others in the audience inattentively awaited their turn at the platform; Mr. McClintock and the stenotypist got it all! Mi-. Woodruff observed that in the early days of the League, non-professional good citizens made up our whole attendance. Of course in those days the civic professional hardly existed anyway, but why should the layman have retired as the professional appeared? Did they proceed to save themselves the journey as soon as they had professionals to send? Is the layman in the local organizations now doing his work there more by proxy too? Is civics getting too technical for the layman? Are we to look forward to a membership made up exclusively of paid civic secretaries, bureau directors, college professors and reference libraries? With the cramped finances that such a limited backing suggests? Or can we translate civics into terms that will catch and hold the attention of the rank-and-file membership of the city clubs and civic leagues and chambers of commerce and thus exert a large direct influence upon a big lay membership? I11 THE moot constitutional convention at Cleveland was by general agreement a success-that is, it was found to be interesting, it held the attendance for inhumanly long hours and brought out some excellent and authoritative debating. Unfortunately two of the sharpest conflicts of opinion, those on civil service and budget, were not carried to the floor but were settled in committee, the minority refraining from an appeal to the convention. There were numerous novelties that secured prompt and unanimous support-the single-house legislature, for exampleand in other cases there were equally unexpected splits. The committee that is now to draft a complete model state constitution for submission next year starts with many illuminating test votes. IV THE ascent of the hill of progress has such a moderate grade that it is not until we look back that we realize how much we have risen. Such sensations are particularly striking in the “Valedictory” which Mr, Woodruff has written for this issue. Nothing could have seemed much more forlorn than the prospects of that little organization which Mr. Woodruff held together by his youthful devotion and personal willingness to do the drudgery without salary for an indefinite period, twentyfive years ago. The whole story of municipal progress in America is compassed in that quarter-century from its beginning in 1894 before the first victory over Tammany in New York city had lighted the torch of hope for reform in municipal affairs in America to the present when the League turns its attention to state and county government because its work in the municipal field is so nearly done. Mr. Woodruffs main contribution to the movement was the League but it is not necessary to demonstrate that Mr. Woodruff did this or that in the long upward effort; no man could have occupied so central and busy a position in the work for twenty-five years without contributing vastly to the result! RICHARD S. CHILDS

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A VALEDICTORY BY CLINTON ROGERS WOODRUFF PhWlphia TWENTY-FIVE years have witnessed many changes in the field of government, the great majority of them, I am persuaded, for the better. For one thing government as such, in its various phases, is no longer ignored. Constructive minds are engaged in its study and improvement. This is a great gain. When the National Municipal League was organized in 1894, government was about the last thing to claim the attention even of the most conscientious citizen. To-day it is receiving the definite, unremitting consideration of a lengthening list of civic bodies; of business men, in their individual and organized capacity; of institutions of learning; of students and investigators. It is quite within the mark to declare that governmentfederal, state and municipal-is coming into its own. Twenty-five years ago systematic instruction in government was incidental and infrequent. Instruction in municipal government was unknown. Eighteen years ago when the present professor of municipal government at Harvard began his work there were only two courses given-ne at Columbia, the other at the University of Michigan. There was not a single text-book suitable for use. There were no sources of information such as are now provided by the bureau of the census; the municipal reference libraries; the bureaus of municipal research and similar bodies or by the NATIONAL MUNICIPAL REVIEW or the American City . Contrast that situation with the one that exists to-day. The amount of instruction has steadily increased and its character has steadily improved so that it is now possible to say that “from the point of view of getting text-books and materials municipal government is the easiest subject in the whole range of political science.” Sources of information have multiplied so rapidly that it is a difficult problem even for the specialist to keep abreast of their output. The list of publications, books, pamphlets, periodicals, is a continually lengthening one. To-day no other one subject is receiving more thoughtful attention at the hands of teachers and publicists. This is especially true of the municipal phases. These developments clearly indicate that the work of the National Municipal League has not been in vain. In season and out it has stressed the necessity alike for interest in and attention to municipal affairs and latterly it has extended this emphasis to include state and county affairs, which may now be said to be coming into their own, to their manifest advantage and improvement. “Municipal affairs” is a phrasewhich to-day includes a multitude of things that a generation ago were not discussed even academically. One has only to study the budget of the presentday city to appreciate how manifold those affairs have become. Not only numerically but intrinsically they have grown in importance and this constitutes an important feature of the present public interest in them. If one wishes to gain a still different and fuller conception let him take up the annual volumes of the Proceedings of the National Municipal League and study 63

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64 NATIONAL MUNICIPAL REVIEW [February their contents. They are something more than a storehouse of current municipal events; something more than a record of significant happenings. They represent the growth of a great movement in modern life; the development and flowering of an effort that has gone fax to remove the odium that once rested on American cities and to establish them on a basis where, it can be said, there has been “a growth of public opinion toward rightness.” More, too, can be said. There has been a steady growth toward responsible, efficient, democratic government. Let no man be misled by these statements. The millennium is not here, nor is it likely to be ushered in during the lifetime of even the youngest among us. Progress, not finality, is all that can be reported. It is all that can be reasonably expected of any human endeavor. Within the generation in which the National Municipal League has been at work municipal government in the United States has been changed from a source of shame to one of pride. Graft has become the exception, instead of the constant characteristic. Indifference and inefficiency are yielding to interest and efficiency. Many have been the experiments tried within this period. Some have failed, others have succeeded. The significant thing is that they have been tried and are being tried. Scientific opinion is still divided as to the direct primary; the initiative; the referendum; the recall; preferential voting; proportional representation; commission government, the commission or city manager form. They are, however, being tried out conscientiously and those most deeply believing in them are seeking to improve the machinery of their application and to meet and overcome their defects as they are disclosed. While public opinion may likewise be divided as to their wisdom; there is no gainsaying that they are put forward in a conscientious endeavor to improve the machinery of government; to make it more responsible and responsive to the people and their will and to wed eficiency to democracy. Home rule for cities, once a far cry in the wilderness, is to-day the guaranteed constitutional right of the cities of one quarter of our states and bids fair to become the policy of many more in the near future. It is dBcult to appreciate what this means to the future of municipal government in this country and to our states as well. It is truly a mighty factor, at one and the same time for municipal government and for an efficient administration of state affairs. Along with the direct election of the United States senators it has helped to realize the demand that for really efficient democratic city government the latter must be divorced from state and national politics. It has also helped to make people think of city affairs in municipal terms to a degree little dreamed of when the Philadelphia conference for good city government met in 1894. Then the chief interest in city affairs was almost wholly critical. There was little or no substantive or constructive study or suggestion. The chief actors in volunteer municipal work were keen critics and ofttimes the most successful reformers were those who most vigorously cried “turn the rascals out.” Such attention4 stimulated interest for a time; but the reaction was great. Usually one group of rascals succeeded another and there was nothing but a change of personnel to be noted. Unfortunately the improvement in the personnel of our city officials has not kept pace with improvements in other directions, although substantial changes for the better are everywhere

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19201 A VALEDICTORY 65 to be noted. There will be no lasting improvement in this connection until the short ballot becomes an established fact. This change will come less quickly than others because of the “vested interests” of the great political organizations, which will yield with the greatest reluctance and only in the last trench. For the short ballot means the substitution of citizen management for party organization. Whether the latter will ever cease to be necessary is a question upon which there is a sharp difference of opinion. There is no doubt, however, that party ties, particularly in local contests, rest far more lightly than they did a generation ago. The city-manager movement may be justly regarded as the ripest fruit of the movement for better municipal government. It embodies the short ballot ; responsiveness to public opinion; concentration of executive power and responsibility; expert administration of city affairs; the elimination of legislative control over administration; all essential principles of sound governmental practice. The success of the plan has been abundantly proved, although here and there expectations, because unreasonable, have not been met. It can be deliberately said that the city-manager plan has arrived. Like other governmental agencies it is open to change and improvement; but to-day it stands as the big contribution to political science of the past quarter of a century. Moreover, its expanding application to a lengthening list of cities is developing municipal policies as perhaps no other single factor. It is helping to convert theories and dreams into facts. City planning, zoning, budget making, the preparation of adequate and carefully devised plans for transportation, intelligent housing, all have felt an impetus due to the increase in the number of experts in municipal affairs. Each in itself a highly specialized subject, it naturally expands when encouraged by those who make municipal administration their specialty. At Philadelphia it was said, “As go our cities, so will our states and the nation go.” If the latter are. to be saved, we must first save the former. As a natural corollary, it follows that as the interest in municipal affairs develops and expands it must include the county and the state and eventually the nation. The National Municipal League has already begun to travel along that road. Committees on state and county government are at work and we may soon expect to see a model county charter and a model state constitution take their place along side of the League’s model city charter, already widely recognized as one of its most substantial contributions to the cause to which it has devoted its energy. To have been associated with this movement from its conception; to have been present at its birth; to have shared in its growth, is a heritage of which one may well be proud. As I stand here to-day to utter my valedictory, after twenty-five years of service in this organization, conscious that I have been a part of a nation-wide effort to place American cities on a firmer and more honorable basis, I am overcome with sadness at the parting, but the memory of the joy of the work with you and your predecessors is a worthy recompense.

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OUR MOOT STATE CONSTITUTIONAL CONVENTION BY FERDINAXD H. GRASER Philadelphia I WITH an attendance representing every section of the country and many varied vocations, the twenty-iifth annual meeting of the National Municipal League, held at Cleveland, Ohio, December 29, 30, and 31, 1919, tried an interesting novelty in convention methods. At the same time it signalized the entrance of the League into the field of state problems, for hitherto the questions considered at annual gatherings have had to do almost exclusively with city affairs; or, if they touched on county and state governments, it was usually with reference to their reaction upon the cities. Hereafter the entire commonwealth, with all its departments, divisions, and activities, will be the food brought to the table for dissection or digestion. The meeting on two of the three days assumed the form of a moot state constitutional convention, to which the members of the governmental research conference and of the national association of civic secretaries, as well as of the League, were invited. Cleveland was also at this same time, the scene of the annual meetings of the American political science association and the American historical association, a fact which happily brought to several of the sessions men who in other years could not attend, though much interested, because their chief allegiance was elsewhere. Carefully prepared planks for a model state constitution were brought to the opening sessions of the convention by men who have for years given special study to certain divisions of state government. These planks were read, discussed, amended, and referred back to the writers, for revision and presentation on the last day, when they were given further attention by the convention as a whole, and then sent in toto to the committee on state government of the National Municipal League, to be used as basis for a model constitution that can later be issued with the recommendation and backing of the League. Just as the model city charter has been of untold help to a hundred cities which have within the past few years recast their fundamental Iaw, so this new state charter or constitution, it is safe to say, will aid mightily in guiding the statesmen of perhaps a score of commonwealths, which have under consideration, or will soon have, suggestions for revising or amending their constitutions. And again the League will justify its existence and prove itself, ever young with its increasing years of experience, forward looking, upto the minute in listening to suggestions for improvement in government, fair in testing them out, sagacious in its advice for their adoption where they will do the most good. A change in executive officers of the League comes simultaneously, though not intentionally. The Hon. Charles Evans Hughes of New York, a former justice of the supreme court of the United States, succeeds Mr. Lawson Purdy as president, who, after five years’ service, found himself unable to give the League the attention it required. Mr. Frank A. Vanderlip of New York city, former secretary of the 66

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OUR MOOT STATE CONSTITUTIONAL CONVENTION 67 treasury, becomes treasurer of the League. The office of secretary has not yet been filled. Mr. Clinton Rogers Woodruff delivered his valedictory at the twenty-fifth annual meeting, which marked the roundmg out of a quarter of century of service With the organization. The council of the League will select his successor. I1 The moot convention had its moments of spectacular and dramatic interest, its lights of intellect, its shadows of doubt, and its periods of gloom and of laughter, for with all shades of opinion represented by the men and women on on the floor, the discussions at times waxed spirited and warm. It must suffice here, however, to deal with the high spots, and to refer the patient reader for details to the ma1 draft, which the committee is to present next year. Every state constitution should, of course, begin with a bill of rights; on the other hand, it should not; for our rights are sufficiently safeguarded by the fourteenth amendment to the federal constitution. There at the outset you have conflicting views! The committee of one, Prof. Albert Bushnell Hart of Harvard brought with him eighty-one sections from various bills of rights found in existing state constitutions, which he said could be boiled down to thirty, and he proved it. The Convention decided to submit the thirty to any body of constitution makers who desire the best thought of the day in such a digest, but with a prefatory note saying that they are not really essential, after all. The convention was not ready to give unqualified approval to the socalled state-manager plan,’ as recommended by the national short bal- ‘NATIONAL MUNICIPAL REVIEW, vol. viii, pp. 707-709. lot organization, represented by Mr. Richard S. Childs. The plan, however, received a cordial greeting, both because of the careful manner in which it had been formulated, and because, as its author pointed out, it was the logical development of the League’s advocacy of the city-manager plan for municipalities. In brief, it reduced the governor to the position of presiding officer of the legislative council of nine, by which he wa5 to be elected, with no veto or appointive power. The legislature would consist of one house of seventy-four members, the only committee of which would be the legislative council. The principal functions now exercised by the governor would be taken over by the administrative manager, elected by the legislative council, who would appoint and remove all heads of departments. To this plan, which was ably supported by Prof. A. R. Hatton and others, strong objection was made by Dr. Charles A. Beard, minority member of Mr. Child’s committee. Dr. Beard opposed the majority report with such effect that the convention, which on Monday leaned toward the adoption of the majority report, was swung back to the historical conception of governor and legislature with separated powers, but with the rights of the people safeguarded by proper methods. Dr. Beard believes that a legislature elected on the principle of proportional representation need not be larger than forty members, but the convention agreed to seventy-four. He was skeptical of the advantage to be derived by a state manager, pointing out that no city of the first magnitude has yet tried the city manager, on account of the necessity for political leadership in the executive. Under Dr. Beard’s plan the governor would be elected by the people, with absolute power to appoint and remove

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168 NATIONAL MUNICIPAL REVIEW [February heads of departments, would prepare the budget, which the legislature might reduce but not increase; and would have the power to dissolve the legislature when it defeats any of his measures. The legislature, organized with one committee on appropriations and revenues and one standing committee for each of the major branches of state administration, might, on the other hand, call a general election to support it in any break with the governor. There would also be introduced the recall principle. I11 In other directions, the League substantially followed the precedent set in former years. It renewed its allegiance to proportional representation and showed how it might be written into a state constitution. It adopted a brief budget provision, and recommended the initiative, referendum and recall as parts of fundamental state law. Unification of all courts in the state through a single administrative system was provided in a series of sections drafted by the American judicature society. The convention favored the appointment of judges, generally speaking, by the governor; and voted against the appointment of any judges by the chief justice. It stood by the principle of local self-government in the matter of supervision by a state civil service commission of all local public servants; but would permit a state auditor of public accounts to prescribe methods of accounting for counties and municipalities. The League’s Model Charter proposals for municipal corporation provisions, were adopted without change. The declaration on taxation is limited to a single sentence declaring that “the power of taxation shall never be surrendered, suspended, or contracted away.” An educational requirement for the suffrage was favored, and it was desired that a woman’s status with reference to voting should not be affected by marriage. A friendly attitude toward the demands of labor for legislation as to number of hours of work and as to social insurance, was manifested. Three methods of constitutional amendment were approved: proposal by the legislature; by the electorate, through the initiative; and by a body especially selected for the purpose; all of these would require for their consummation the approval of the electorate in referendum. The present constitution of the state of Nebraska formed the groundwork of all the suggestions made, and of the discussion, and one of the delegates to the Nebraska convention now in session, Mr. Addison E. Sheldon, who participated actively in all the proceedings of the League’s meeting, declared that the amendments proposed would have immediate consideration in his state.

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A CITY THAT RAN A FARM BY H. W. DODDS Western Resera0 unismoity I RISING prices of foodstuffs and consequent unrest have stimulated new speculation and some novel experiments concerning the food supply. It remained for the city of Allentown, Pennsylvania, a town of 75,000 population, to undertake a municipal farm, the products of which were marketed in competition with the commission merchant and retailer. In 1916 the city council bought a farm of 480 acres on the outskirts of Allentown as the site of a sewage disposal plant. Its construction was interrupted by the war, and rather than lease the tillable soil to private individuals, the superintendent of parks began in the spring of 1918 to operate the farm as a public enterprise. The original plans for sewage disposal were later abandoned in favor of the electrical oxidation system, and the land was held frankly as a municipal farm. The 375 acres of tillable soil have been cultivated with paid help as any farm of the size in Pennsylvania. No attempt has been made to employ prison labor in this connection. In addition to the usual grain crops, an extensive variety of truck has been raised and a drove of 135 pigs was supported from city garbage. The products have been sold from city trucks at the curb markets and at cost in one or two private stores. The superintendent of parks, to whose initiative the whole program was due, distributed the supply among the markets with the definite purpose of controlling the general price. “My main object in running the farm,” he states, “was to obtain enough produce to enable me to go into the market and, by selling city products at a fair price, make it impossible for dealers to profiteer in vegetables.” Products offered for sale were advertised in the local papers and the prices quoted in advance. Housewives came to call these prices “city prices,” and they exerted a real influence at least on the market at which city products were being sold. The “city prices” were generally lower than the prevailing retail prices, and on a number of occasions brought distinct cuts in retail markets, which, its promoter believed, went to increase the value of the farm as a social agency. The farm did not provide sufficient quantities to control prices universally throughout the city, but its sponsors claimed that within two years the city could control a margin of the supply sufficient to fix prices throughout the city. The management constantly strove to make the project pay and by providing easy selling facilities through the curb markets to encourage food production in the community. Toward farmers the attitude was one of co-operation in securing a fair price, but toward the produce merchants the attitude was active competition. In fact the produce dealer was assumed to be a profiteer per se. The plan was to sell at cost plus a fair profit and not to undersell the farmers who market directly at reasonable prices. The utilization of the garbage on the municipal farm was still under trial, but those in charge hoped that eventually the city would be able to raise 69

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70 NATIONAL MUNICIPAL REVIEW [February 3,000 hogs, the number which could be supported from the garbage supply of Allentown. The farm was able to dispose of less than 5 per cent of the total garbage and the city is paying a good sum for garbage incineration. The hope was to turn this outlay into income. Another prospective source of revenue was the utilization of the pasture land and grain crops for fattening cattle and sheep for market. All the crops would thus be marketed eventually in a form ready for direct consumption by the people. The financial experience was encouraging. In response to the charge that the farm was wasting tlie people’s money, a committee was appointed by the city council at the end of the first year to appraise the assets and audit the books. The findings of the audit committee placed the value of the equipment, crops and cash on hand at $3,000 more than expenditures in equipping and operating the farm for the first year. The year 1918, however, was one of rapidly rising prices for farm products, and this favorable balance was wiped out later by the ravages of hog cholera and a drop in the price of the corn being held for market. As a consequence the management was glad to be able to break even on the first year’s venture. At this writing it is too early to know the financial experience of the second year. Adequate steps, however, were taken to prevent a recurrence of the cholera. Those behind the undertaking frankly viewed it as an experiment, and believed that it would take five years to determine whether or not it was practicable. I1 In considering the merits of the plan and its possible extension to other cities, it can be seriously doubted whether this is a propitious field for collective enterprise. It is designed to get at the profiteer by an indirect method of fixing the market price. But this will not solve the difficulty of the food supply. A broader plan will seek to make each community self supporting through the encouragement of home production. Wide awake municipalities will establish easier and more direct collection, distribution and market facilities. Some are going further by providing the farmer with commercial credit on terms commensurate with those which his city brother enjoys, thus enabling him to respond with confidence to the better market near at hand. An enterprise which may discourage production cannot be adopted generally. Although the Allentown management took pains to maintain the good will of the farmers who come to their markets, a department of the city government frequently offering special bargains in municipal produce will not reassure the timid farmer’s heart, and the first step towards sounding the possibilities in the food supply is to convince the farmers of the community that the home market is a good market. Finally, food production is a highly speculative venture (the risks of which, in the last analysis, the commission merchant has escaped). Successful farming, moreover, requires strict attention to detail and prompt action in every exigency. The considerations which have discouraged successful consolidation of several farms under single capital control would indicate that farming presents difficulties in management which make it a business unpromising to municipal endeavor. The administration of the Allentown farm was in the hands of an unusual type of city official. Mr. R. J. Wheeler, Superintendent of Parks and Public Property, believed heart and

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19201 TO POPULARIZE MUNICIPAL BONDS 71 soul in the venture. Being convinced that the field of social enterprise must be widely extended he spared no effort, and running a farm is a man’s job, as any one will admit who has tried it. Unfortunately, this interesting experiment will probably not be continued. The recent municipal election, the first under the new law restoring the partisan ballot to third class cities, turned out the “socialistic ” majority in the council which, among other things, had been especially energetic in continuing the sale of surplus army food in Allentown. It is now understood that the city is to have no more government food, and the “socialistic” plans of the old council have, for the time being at least, fallen by the wayside. TO POPULARIZE MUNICIPAL BONDS BY HENRY BRUfiFtE I THE government war loan campaigns made investors of millions who had never before known even the meaning of investments because investing was made easy and habits of regular saving were instilled. And on these two points must be based means for the democratization of investmentconvenient securities within the means of all and available to all and the effective encouraging of constant thriftthese being intermotivated. Before the war campaigns these two requirements were never combined. Securities were of such denominations and their sales methods were so repellent as to make them impossible. The encouraging of thrift was left to savings banks, which, by their very nature, could only be passive, and to building and loan associations, life insurance companies and similar specialized institutions. But the need had for some years been recognized and what were apparently experiments in the necessary direction were undertaken. The idea of “baby bonds” was developed and New York city sold securities in $10 denominations and the United States issued $90 bonds. But these did not solve the problem because distribution methods were no better than for the high-priced securities and because they were subject to similar fluctuations of market price. Then, too, there was no mechanism for encouraging and organizing thrift. 11 Early in 1913 the problem was the subject of conferences,in New York, of a number of prominent business men, including bankers, merchants and financial lawyers. It was urged that the matter was one of distribution, it being declared that investments could be sold in stores just like clothing or groceries. This wm taken up by a director of the Northwestern Trust company in St. Paul, who had participated in the conference. The trust company had at that time $200,000 in St. Paul bonds on its hands which it could not dispose of through the usual channels. As a half jesting experiment these bonds were put on sale in a department store, sold like merchandise and in one day the whole $~OO,OOO worth went “over the counter.” “The St. Paul plan” achieved fame and other department stores tried it. The Baltime Sun in ten days sold $1,000,000 worth of bonds, and “over the counter”

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73 NATIONAL MUNICIPAL REVIEW [February sales of municipal securities have been resorted to in a number of cities, although they are still objects of interest. The sinking fund commissions of St. Paul began to issue small unit certificates based on St. Paul bonds. These were placed on continuous sale and were made redeemable at par. This plan developed into the socalled “municipal savings bank ” of St. Paul, which, after six years of operation, on July 1, 1919, had “deposits ” totalling $3,635,000. In this way the bank takes up the city’s obligations at a very favorable rate and saves Iarge sums in interest charges. Meanwhile, in the summer of 1913, the New York conferees continued consideration of the plan and enlisted the aid of many well-known advisers and especially consulted the banking department of New York state. The thrift bond plan was finally evolved and Herbert R. Sands, then assistant director of the Bureau of Municipal Research of New York city, studied various types of savings methods and examined the practicability of the thrift bond pIan. He found that existing methods were inadequate for the task of developing to the fullest possible extent the savings investment ability of the country and that the thrift bond plan seemed to meet all the demands for a universal, safe and convenient system of savings through securities distribution. As a result of the investigation, the National Thrift Bond Corporation was organized under the New York state banking laws and in April, 1917, the first thrift bonds were issued. The thrift bond is essentially a certificate of participation in the ownership of the soundest possible securities, bought by the corporation and held in trust, these securities being conked to bonds of federal, state, county and municipal governments, representing at least 10,000 population, in existence fXteen years without defaulting their obligations. Thrift bonds come in $10 and $100 denominations, both being negotiable. Coupons are attached to these bonds by which 3 per cent interest is paid. The cost of sale and distribution and the profits of the corporation aremet out of the difference in interest rate at which the securities are bought and the thrift bonds sold. In order to make it quite easy to purchase these bonds, thrift receipts are sold in denominations of 50 cents, $1, $2 and $5, these when accumulated to a total of $10 are exchanged for a $10 thrift bond. Thrift receipts bear no interest. The receipts and bonds are cashed by the issuing company on short notice at par value. This system, therefore, combines the advantages of the savings bank and of security ownership. It makes the overwhelming advantages of government and local government securities available to the small investor. 111 The vital phase of the plan is that of distribution. The logical merchandising medium was the store-accessible and convenient. But the war loan campaigns would have been in conflict with such methods and the corporation sought other means. It was reasoned that the greatest service could be done to the nation by concentrating effort on its workers. By extending security-ownership to them many steps towards industrial harmony might be attained. At the same time the government loans might be aided by making it easier for industrial workers to subscribe to war bonds, through the easy savings plan of the thrift bond system. Under the plan as it operates in a hundred plants, the employe designates on a subscription

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19201 TO POPULARIZE MUNICIPAL BONDS 73 form the amount he wishes to save each week. In each pay envelope he hds thrift receipts for that amount, which he exchanges for thrift bonds in due time. In this way the savings bank is brought practically to his bench-and there are many other phases of the plan attractive both to the employe and the employer. Over 110,000 workers are saving regularly under it. Within the past few months the National Thrift Store League has been organized. It is proposed to join together in this league at least one hundred prominent merchants representing department stores in almost every part of the country. They will engage in a nation-wide thrift campaign through the medium of thrift bonds. The members of this league, it is estimated, employ a total of 100,000 men and women and there will, therefore, be this number of potential security salesmen in constant touch with the large mass of the people. The co-operation of manufacturers, schools, churches, fraternal and other organizations will be enlisted and it is planned to use every appropriate advertising and pub icity method. IV There are two aspects which should be of interest to local government officials. How can this system affect their financial operations? How can it influence democracy in action? The simple, nationwide, centralized organization of the thrift bond savings system means increased volume and reduced costs in the distribution of local government securities. It will, therefore, be possible for the National Thrift Bond Corporation, as its work grows, to offer better prices for these securities than the ordinary bond houses. As the underlying bonds which are purchased by the corporation are simply deposited in trust company vaults, the present high cost of printing elaborate, engraved documents can be considerably reduced, thus affecting a further saving. As the ultimate market for these bonds will be eventually multiplied many times, it will be capable of absorption of these issues at a much steadier rate, Ultimately, perhaps, a large proportion of local government bonds issued in this country may be distributed through these channels, as the borrowings of all French cities (with one or two exceptions) are now carried on through the Credit Foncier. The extension of ownership of local government securities to a greater mass of the population should also serve to stimulate citizen interest in the workings of local governments. The increasing proportion of “renters ” in cities, who pay city taxes indirectly and, therefore, without concern, will be counteracted by an increasing proportion who participate in the ownership of the city’s securities. The National Thriit Bond Corporation has endeavored, as far as possible, to buy the issues of those cities and states where most of its industrial subscribers have been located. Among the governments represented in this list of securities are: New York City; Newark, New Jersey; Cleveland and Columbus, Ohio; Akron, Ohio; Boston, Massachusetts; Hartford, Connecticut; state of Massachusetts and state of New York. These possible effects on citizenship are in addition to the broader social and economic consequences of the democratization of wealth. The thrift bond savings system illustrates how American business methods and organization may be applied to the constructive solution of problems which lie at the very basis of American democracy.

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THE MUNICIPALITY’S SHARE IN PREVENTING VENEREAL DISEASE BY GEORGE W. GOLER, M.D. Health Oficer, Rochester, N. Y. I IN your city and my city syphilis affects more than 5 per cent of its men, women and children. For gonorrhoea you must double these figures for men and women only. In certain occupations the number of persons affected with venereal disease is three times 5 per cent. Of all the waiters or waitresses who bring food to you, the barbers who care for your tonsorial needs, the policemen, the nursemaids who care for your children, double or treble 5 per cent are affected with venereal disease, This is an estimate. You want proof of its accuracy? Take these figures from various parts of the country and apply the lesson to be gained from them, and then ask if your city is responsible for the share of venereal disease which affects its people. Of 25,6331 cases of various infectious diseases reported in New York city 28 per cent were syphilis. For several years before the war France lost more than 25,000 persons per annum by death from syphilis. In Prussia, according to official reports, at least 22 per cent of males are syphilitic. The Royal English Commission believes 10 per cent of the population is syphilitic. In the United States careful estimate by conservative authorities place the number of syphilitics at 10 per cent of the population. Syphilis is one of the chief causes of insanity. From 4 to 15 per cent of all the insane in state hospitals or institu- ‘Statistical material chiefly from Vedder’s “Syphilis and Public Health,” and Stokes’ “The Third Great Plague.” tions for the insane are there because of syphilis. In the Government Hospital for the Insane at Washington 20 per cent are there because of syphilis. In a Michigan Hospital for the Insane one third of all the patients who died there, and upon whose bodies careful autopsies were performed, had the organism of syphilis found within their bodies. In large general hospitals in various parts of the country more than 60 per cent of all the pus operations upon the genito-urinary apparatus of women were done because of the gonorrhoeas usually contracted from their husbands. In the hospitals throughout the country which conduct the affairs of their patients upon a really scientific basis, all of the patients are carefully examined for syphilis when they enter the hospital as a routine measure. Of many hundreds of patients examined in these large and representative hospitals, the following are the figures: Micheal Rhees Hospital, Chicago, Peter Bent Brigham Hospital, BosJohns Hopkins Hospital, Baltimore, But syphilis is not only found in hospitals, among the insane and abroad. Of that part. of the population from which the Army is recruited in time of peace 20 per cent are syphilitic. Of college men and candidates for commissions in the Army and Navy, 5 per cent; of candidates for police (and the same thing would doubtless be true of the fire force), 15 per cent are syphilitic. From a close study of the subject it is 28 per cent syphilitic. ton, 15 per cent syphilitic. 20 per cent syphilitic. 74

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19201 PREVENTING VENEREAL DISEASE 75 believed by investigators of repute that 10 per cent of married men and women have syphilis; that 10 per cent of marriages involve a syphilitic individual; that 75 per cent of the offspring in these syphilitic families die; that 30 per cent of syphilitic, pregnancies terminate in death at or before term; that 30 per cent of living births in syphilitic families die in infancy as compared with a level rate of 15 per cent in non-syphilitic families. Williams, chief of the Obstetrical Department of Johns Hopkins Hospital, says: “Syphilis is the greatest cause of death in the unborn.” Of 60,000 blind in the United States, more than a quarter of them have been blinded by gonorrhoea. We know that gonorrhoea causes much of the socalled rheumatism in men and diseases of tubes and ovaries in women. We know that syphilis is the cause of various forms of heart, kidney, liver and blood vessel disease; that practically all the apoplexies under 50 are due to it. And yet, syphilis rarely appears in that “bookkeeping of humanity,” known as vital statistics, as a cause of death. The cause of death appears as heart, kidney, liver diseases, but the underlying syphilis, the real cause of death, rarely appears. The real causes of death will never appear in our vital statistics until controlled by universal and compulsory autopsies. I1 Here, then, are two diseases, syphilis and gonorrhoea, known as venereal diseases, affecting men, women, fathers, mothers, sons, daughters-whole families-with disease; in the case of syphilis, handed down from one generation to another, sometimes it affects even the third generation, attacking over 5 per cent of our people. Until the outbreak of the World War 2 these diseases, and particularly the disease known as syphilis, only began to attract attention to its ravages. Take syphilis done! Doubtless first found as a mild disease on this continent and carried to Europe and the then civilized world, by the sailors of Columbus, it spread through Europe like a pest in the late fifteenth and early sixteenth centuries. But as time passed and the people became more resistent to the infection of syphilis, or the organism became less infectious, the disease pursued a milder course, Save for the saddle-nose deformity in infants and children, it leaves few marks readily discernible by the layman on the outside of the body. But it kills the infant before, at and just after birth; and it is responsible for much of the disease of the various organs and systems of the body, chiefly the digestive and circulatory apparatus and the nervous system, for which it has a special affinity. It attacks the body in such protean forms that it led Osler to say: “Know syphilis in all its manifestations and relations and all other things clinical will be revealed unto you.” It was a disease early recognized in its more serious forms by the old masters of medicine. Oliver Wendell Holmes said of Ricord (1799-1889), the authority of his day on syphilis: “The Voltaire of pelvic literature-a skeptic as to the morality of the race in general, who would have submitted Diana to treatment with his mineral specifics and ordered a course of blue pills for the Vestal Virgins.” The cause of syphilis was then unknown; the cause of gonorrhoea had been discovered; but in 1905 Schaudin found the pale, delicate corkscrew-like, though boring organism of syphilis, Treponema pallida. In 1906 Wassermann, using the work of two Belgians, Bourdet and Gongeau, devised the

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76 NATIONAL MUNICIPAL REVIEW [February Wassermann test. In 1911 Nogouchi, at the Rockefeller Institute, devised the Leutin or Nogouchi test, and in 1910 Ehrlich succeeded in introducing arsenic within the benzol ring and gave to us a compound, “Salvarsan” or ” for the treatment of syphilis. And Ehrlich, as Behring had done with diphtheria antitoxin, patented the process instead of giving it to the world as Pasteur and Metchnikoff or our own Flexner and Nogouchi gave their discoveries to the people. Armed with these laboratory tests and with this remedy, physicians felt they had a sure and speedy cure for syphilis. In this they were disappointed; for, notwithstanding the new means of diagnosis, new methods of treatment, syphilis is a disease which, for a time, often pursues such a mild course as to baffle the diagnostic ability of the doctor and to delude the patient into the feeling that there is nothing the matter with him. This disease is so amenable to treatment, so far as symptoms go, as to make both doctor and patient feel that a cure has been effected when only the evident symptoms have been held in abeyance while the disease is still present waiting to manifest itself, within heart, blood vessel, liver, kidney or nervous system. Syphilis is frequently a disease “en masquerade,” affecting the skin, the mouth, throat and nose. In its later manifestations it often leaves the skin, especially the face, untouched. But, could we look beneath the skin we would often find nests of corkscrew spirals of syphilis lurking in old syphilitic scars in multiple minute abscesses, waiting for the time to strike at a more vulnerable part of the body of its victim. I11 This, in brief, is the story of venereal Is disease as it affects our people. there not in this story some reasons why the municipal government should have a responsibility for the prevention of venereal disease, and also for its treatment? What will the municipality do? It will suppress prostitution, public and clandestine, and care for the prostitute as an erring female, either to be restored to society or to be segregated in an institution until she dies. The municipality will provide for the free examination of all candidates before marriage, and it will prevent the marriage of syphilitics and gonorrhaics just as it one day will prevent the marriage of the insane, and as it now prevents the marriage of lepers. The municipality will provide for an extension of those free municipal laboratories already established, to which all physicians will have access, for the examination of blood and serum, both for diagnosis and treatment. It will, too, establish, both night and day, pay and free clinics, with separate hours for the sexes, where poor persons and those in moderate circumstances may come for treatment, either free or within their means. And it will provide under the police power for compulsory attendance df all persons in whatsoever circumstances, either at the clinics or at the offices of their physicians. It will compel the systematic stated checking up and re-examining of all those affected by venereal disease who have shown themselves to be free from symptoms and with negative laboratory findings, to be sure that there is no return of the disease. And it will ultimately provide for the determination of the diagnosis of all those who have died, by autopsy and laboratory study of the organs of the dead, so as to be sure that all persons dying within the municipality may have a real record of death set opposite their names. Autopsies will be conducted for the benefit of the living. Universal

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19201 PREVENTING VENEREAL DISEASE 77 autopsies would revolutionize the practice of medicine. Not only would a vast deal of information be furnished to the doctor, but the doctor would be more careful in his diagnosis if he knew that after death the body of his patient was to be subject to an examination which would in effect be placing his diagnosis and treatment on trial. Autopsies were universal in the Army during the war and the increased sum of knowledge which has come to medicine as a result of these autopsies will result in a very great improvement, both in methods of diagnosis and treatment. Ultimately the municipality will do all this and more for those venereal diseases which cause such frightful mortality; for many of the people whose deaths are put down as heart, kidney and liver diseases, apoplexies, rheumatism, nervous disease, insanity, really die of syphilis. Much of the rheumatism of men and the tuboovarian disease of women is due to gonorrhoea. For all this the city must assume responsibility. It will do so at first not because it desires to improve morals or health, but because it will be forced to do so by economic pressure. Children are no longer imported from Europe. The labor market there is giving out. We are going to have to depend for our vast industries on our own people and their offspring; so we must take care of our people. Our people must be born well to live well. So we will suppress prostitution, insure the chastity of women by an improved economic system, treat venereal disease and keep the patient under control, by the police power if necessary, until all signs and symptoms have disappeared, so that the disease, even in latent form, may not be handed down to the generations as yet unborn; so that the potential fathers and mothers of this generation shall provide in the generation to come a state and a city free from venereal disease.

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THE FATE OF THE FIVE-CENT FARE X. MINNEAPOLIS KEEPS HOME RULE AND THE FIVE-CENT RATE BY ‘WILLIAM ANDERSON University of Minnesota The necessary basis for fair dealing between the street railroads and the people is scientific valuation, but as no one knows what that is and the United States Bureau of Standards still refrains from the task of setting up standards in this jield, Minneapolis, for instance, gets .. .. .. .. .. *. .. jigures that are $10,000,000 apartf :: .. THE present fifty-year exclusive franchise of the Minneapolis Street Railway Company will terminate on July 1, 1923. Under this franchise, as modified in 1890 and subsequently, the car-rider is given the right to ride from any point in the city to any other point on payment of a five-cent fare. The city council may regulate service, provided it does not go to the point of confiscating the property, but it has no power to compel the construction of extensions and none to reduce the unit fare per ride below five cents. The latter point was finally decided in 1910 in litigation over the six-for-a-quarter ordinance of 1907.‘ MOVEMENT BEGUN FOR A NEW FRANCHISE Confronted by steadily rising costs of operation, and the prospect of the early termination of its Minneapolis franchise, the Twin City rapid transit company, a New Jersey corporation which holds the stock of the Minneapolis, St. Paul, and other operating companies, proceeded as early as 1914 to pave the way for a modxcation and extension of its Minneapolis franchise. The Minneapolis civic and commerce association lent its aid in 1 City of Minneapolis v. Minneapotis Street Radilway Company, 915 U. S. 417. 1915 to secure the passage of the so-called “Enabling Act” empowering the city to open negotiations with the company for a new grant. Powerful opposition developed during the passage of this bill and it was necessary to amend it to make it more favorable to the public. The city was cautious and deliberate about proceeding to negotiate with the company. On August 27, 1915, the council directed the city engineer, Mr. Cappelen, to proceed to an appraisal of the property. Not until September, 1916, was the work completed. He found the fair value of the property as of January 1, 1916, to be $25,914,308. Certain groups in the city thought this valuation excessive, and that fall Mr. Thomas Van Lear, a member of the Socialist party, was elected mayor after a bitter campaign in which he called upon the voters to “stop the $15,000,000 street car franchise grab.” For the next two years, due to a combination of causes, little progress was made toward a solution. Mayor Van Lear called in a Mi. Hogarth, an engineer from the Socialist administration in Milwaukee, who arrived at an extremely low valuation of the property. In January, 1918, the central franchise committee, representing various civic organizations, presented 78

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19201 THE FATE OF THE FIVE-CENT FARE 79 a majority and a minority report on the valuation, the former being $21,279,932 and the latter $15,470,360. In the meantime the city*council had grown somewhat doubtful of the Cappelen valuation. It engaged Mr. C. L. Pillsbury, a consulting engineer, who rechecked and analyzed the Cappelen figures with the result that he reduced the total to $24,346,113. The various valuations as of January 1, 1916, were as follows: Street railway company’s figures. .. $36,393,376 City Engineer Cappelen’s figures. .. 25,914,308 24,346,113 ity figures. ................... 5?1,279,932 Engineer C. L. Pasbury’s figures . . Central franchise committee majorCentral franchise committee minority figures. ................... 15,470,360 Engineer Hogarth’s figures. ...... 13,608,730 As the war progressed, the company fell into even greater difficulties. Labor troubles multiplied. Equipment was hard to get. It was impossible to borrow money for extensions. Gross earnings failed to keep up with the rise in costs of operation. To cap the climax, the mayoralty election of 1918 became a contest between two men both of whom were publicly committed to a low street railway valuation. The incumbent, Mayor Van Lear, favored the Hogarth valuation. His opponent, J. E. Meyers, had signed the minority report of the central franchise committee. Whichever won, the company was likely to find the mayor a strong opponent of any settlement embodying a high valuation.‘ There was but one way out for the company, namely an appeal to the legislature to put the street railways under state control. MOVEMENT FOR STATE CONTROL In due course the people saw introduced by a rural member of the legis1 Mr. Meyers was elected. lature, in the session of 1919, a bill to end local control of street railways. In explaining his advocacy of the measure the introducer naively stated that, although he was not from the Twin Cities, he was interested “because 10,000 persons from outside Minneapolis and St. Paul ride on the Twin City lines every day.” It was quickly discovered that the bill, while purporting to increase the powers of cities to control their transportation systems, actually authorized street railway companies to surrender up, and thus escape the obligations of, their franchises, and to receive in lieu thereof indeterminate permits. By this means their rates of fare, formerly fked, were to be made subject to change at any time, while the power of regulation was in the last analysis transferred to the state railroad and warehouse commission. Once the character of the bill became known, the state municipal league, together with leading officers and citizens of the larger cities, carried on such a vigorous opposition campaign as to defeat the bill in the house, where it originated, by a vote of more than two to one. DRAFTING A FRANCHISE Again the companies had to take up negotiations with the cities concerned. By this time in Minneapolis the franchise movement was well under way. The city attorney, with the aid of Mr. Stiles P. Jones, secretary of the central franchise committee, was rapidly perfecting a draft service-at-cost franchise. Numerous blanks were left to be filled subsequently by the company and the council-one for the agreed valuation, another for the rate of return, and so on. This draft went to the’street railway committee of the city council early in 1919. Its first decision was a tentative agreement

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NATIONAL MUNICIPAL REVIEW [February upon a $24,000,000 valuation and a 7 per cent return. During the summer the committee held a series of public hearings in the course of which it perfected and finally adopted a complete franchise. Mr. Bion J. Arnold of Chicago gave some assistance to the council in perfecting the details. The company kept in close touch with the matter throughout this stage of the proceedings, leaving the committee at no time in doubt as to its attitude on the major points at issue. The proceedings of the council on the day set for the final vote were enlivened by the appearance of Mayor Meyers, who made solemn protest in word and writing against the passage of a franchise which he criticized as allowing an excessive valuation and too high a rate of return, and as violating the enabling act in several particulars. It was his first official appearance throughout the entire proceedings. At the end of his address his sincerity was challenged by one of the majority aldermen who asked him why he had not given the council the benefit of his counsel earlier in the proceedings. His answer was that he had desired to do so, but had been expressly informed by the chairman of the street railway committee that the fundamentals, namely the valuation and the rate of return, had already been agreed upon in advance and could not be considered. “When I was informed that there was no possibility of opening these points I saw no reason, in view of my other duties, for going into the matter.” The franchise was adopted by the council on September 3 by a vote of 16 to 10, the opposition comprising the seven Socialist members of the council and three other members from labor wards. With what seemed to some people undue haste, the company accepted the proposed franchise. The company, which had forty days in which to do so, filed its acceptance within about as many hours. THE PROPOSED FRANCHISE The substance of the proposed franchise can be briefly stated. It authorized the company to continue to operate a street railway system in the city’s streets for an initial period of twenty-five years, and thereafter “pending purchase by the city or other disposition of the property” for an indeterminate period. But such continued operation beyond the term of the grant was not to be “construed as a renewal or extension of the present grant.” The city expressly reserved the right of purchase at the agreed valuation plus additions, at the end of each five-year period, and also the right to acquire the property by condemnation. The valuation agreed upon was $24,000,000 as of January 1, 1919. This figure approximated Mr. C. L. Pillsbury’s result, but since it was an agreed lump sum it was difficult to attack in detail. Extensions and additions to the plant during and after 1919 were to be added to this value at cost. Upon the valuation of January 1, 1919, the company was to be allowed a return of 7 per cent cumulative, payable quarterly. Upon all additions it was to be allowed the interest necessary to secure the required capital, plus 1 per cent cumulative. This return, while not guaranteed by the city treasury, constituted a charge against gross earnings prior in right to all payments to the amortization and surplus earnings funds, and preceded only by the charges for operating expenses, depreciation, personal injuries, and taxes. The company was given the power to regulate the rate of fare without

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19201 THE FATE OF THE upper or lower limit. A fare stabilizing fund of $250,000 was to be created to be increased from time to time by the addition of surplus earnings. The initial fare of five cents could be reduced or increased as the fund waxed fat or grew slender. Out of any surpluses over $250,000 in this fund, the council could direct that certain sums be transferred to the amortization fund, established for the purpose of eliminating all intangible values from the capitalization. The city treasury was to profit in no respect from the company’s earnings. The council was apparently given the full power to regulate the service. It was to appoint a street railway supervisor and his necessary assistants, whose salaries and expenses were to be paid by the city in the first instance and charged by the city to the company. The council was empowered to regulate in detail the operation of cars upon existing lines, and also to order extensions to be made. A list of six extensions to be built in 1920 and thirteen others to be constructed at an early date was given in the franchise itself. The company agreed to carry out all orders for better service and for extensions, subject to the important proviso, “that such observance of and compliance with the orders of the city council by the company will not impair the payments or funds specified in section 9 hereof.” This proviso simply meant that all operating expenses, depreciation charges, personal injuries, and taxes, and payment of 7 per cent cumulative on the agreed valuation, together with 1 per cent to the company on all new capital, over and above the necessary interest, together with a few minor payments, had first to be provided for. Only when it was clear that these would be taken care of could the company be ob!igated to obey the council’s FIVE-CENT FARE 81 mandates. As the opponents of the franchise phrased it, 7 per cent came first, and service second. Even in case the company should refuse to obey the council’s orders for extensions or permanent improvements, this return could not be reduced below 6 per cent. The next step in the proceedings, under the terms of the enabling act, was to get the consent of the people. As a matter of fact there intervened a court action in which the mayor, supported by nine of the ten dissident aldermen, tried to enjoin the holding of the special election. He alleged that sundry violations of the charter and the enabling act had taken place, chief of which was this: That, although the charter gave the mayor the veto on all ordinances, and although the enabling act required the franchise to be adopted “by ordinance,” nevertheless the council did not submit the franchise to the mayor for his approval. Upon studying the language of the enabling act, both the Hennepin county district court and the state supreme court rejected this view, and all of the other contentions. They held that the mayor had no veto upon the franchise, and that the draft conformed in all respects to the requirements of the enabling act. The question then went to the people. THE CAMPAIGN FOR ADOPTION The campaign which preceded the election was an unusual demonstration of the possibilities and limitations of direct legislation by the electorate. The franchise upon which the voters had to pass made a pamphlet of sixtysix pages and approxiniately eighteen thousand words. In the official newspaper it filled more than twelve columns of solid fine print. Its thirtyseven articles contained numerous highly detailed and intricate provisions,

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82 NATIONAL MUNICIPAL REVIEW [February upon the meaning of which the leading authorities for and against the franchise differed to the very hour of the election. Naturally enough, many of the voters were bewildered. The franchise had no sooner been passed than it became clear that two groups in the city were definitely committed in advance. One faction, dubbed “the Socialists” by their opponents, although they certainly do not form one political party to-day, were mainly opposed to the grant. On the other hand, a large group of downtown business men were for it. There was in the third place a considerable group of intelligent men,workmen, professional men, businessmen,-who were at the outset neither informed nor committed on the franchise. They were the largest class of voters of all, and the least organized. It was they, however, who decided the election. It is safe to say that no special election since 1900 aroused the intense interest and widespread discussion evoked by the proposed franchise. With the exception of the so-called Socialist group, the opposition were not at first well organized, but as the campaign entered its last month they picked up splendidly. Mayor Meyers and ex-Mayor Van Lear, opponents in 1918, found themselves fighting side by side against the franchise. While not so well equipped with funds for advertising, the opposition to the franchise carried on an excellent speaking campaign. Those favoring the franchise, better organized and financed from the beginning, made a poorer showing on the platform but were far stronger on the side of newspaper advertising and the issuance of pamphlet material. The weekly Rapid Transit News could be had free at all times in the street cars. Copies of the franchise were liberally distributed, and there were full-page advertisements in the leading newspapers every day, Much of this material was carefully read by the voters. Despite the extreme complexity of the entire question, public attention was early concentrated upon not over four or five salient points. In the jirst place, the opposition hammered away at the valuation, alleging that it was too high. The Meyers group said $16,000,000 would be more nearly correct; the Van Lear group put the figure even lower. Too much, they said, had been added for going concern value,-and too little deducted for depreciation. Second, the rate of return was too high, they averred, and when coupled with the high valuation amounted to flagrant extortion. High fares would undoubtedly result. Third, good service was no more assured under this franchise than under the old. By the terms of the franchise the 7 per cent return had first to be assured before better service could be required. In the fourth place, near the end of the canvass, the opposition claimed to find a “joker” in the franchise in the form of a clause in the section on purchase which would permit a bare majority of the council at any time, without a vote of the people, to force the city into public ownership. This argument did not have the best possible foundation in law, and there were learned opinions to the contrary. Notwithstanding, the argument was used with telling effect. Even the Socialistic group laid stress upon this point, for they opposed having the city buy the plant in any case at what they considered an excessive valuation. There were other arguments, too, but the result was, in part at least, determined by non-rational causes. In the first place the people remembered only too well how, in the days of its prosperity, the company had fought

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19901 THE FATE OF THE FIVE-CENT FARE 83 the six-for-a-quarter ordinance and had insisted upon the flat five-cent fare. Then, too, an early winter had brought much snow and cold to the city during the three or four weeks before the election. Due in large part, no doubt, to this cause, the street-car service was unquestionably very poor during the franchise campaign. Many voters, however, attributed the poor service to an intent on the part of the company to give a “horrible example” of poor service in order to convince the voters of the need of a new franchise. Those who put this construction upon the unfortunate condition probably voted against the franchise in considerable numbers. Finally the leaders of the campaign for the franchise committed the crowning indiscretion of charging that the bulk of the opponents of the franchise were Socialists, Communists, I. W. W.’s and Bolshevists. They challenged the independent voter to line up on that side if he dared, and he accepted the challenge. DEFEAT OF THE FRANCHISE The day of the election was cold, and there was snow in the air. Nothing deterred; over 53,000 voters of the 70,000 registered went to the polls to vote on this single question. In the second ward, an industrial district, but also the location of the state university, more votes were cast than in the 1918 general election. The result was the defeat of the franchise by over 7,000 votes. WHAT OF THE FUTURE The situation to-day is this: Minneapolis, having defeated successive attempts to deprive her of local control of her street railways, has now defeated a franchise under which she was promised carline extensions and better service, but at the cost of higher fares. She retains home rule and the fivecent fare, but she has done nothing constructive to solve her transportation problems. Affairs are simply in statu quo ante. The service is poor. There is no money, says the company, either to build extensions or to improve the service. To be sure, the council has already ordered the city attorney to proceed against the company to compel the construction of two new lines, but unless the company finds it good policy to cast its bread upon the waters, to do something handsome for the city just to restore good feeling, little is to be expected but litigation. There is no question that the next move should come from that group opposed to the late franchise, represented by Mayor Meyers and the minority of the central franchise committee. They have defeated one proposal; what constructive measures they will propose do not yet appear. If their solution is not ready for submission before the next legislature meets, it is almost certain to be confronted with a new demand from the company, and a demand more compelling than ever, to transfer them to the jurisdiction of the state railroad and warehouse commission. There will be influential representatives from Minneapolis to present this view. They will be equipped with the very plausible argument that “home rule has failed.” The legislatuie, which has already threshed this old straw many times, and which has long been restive under the burden of passing on so many of Minneapolis’ problems,l will be strongly inclined to settle this question once for all by establishing state regulation. ‘The largest city in this home-rule state, Minneapolis is still without a homcrule charter. Every attempt to adopt one has been defeated. The result is that Minneapolis still relies on legislative action for changes in its charter.

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THE SECOND PROPORTIONAL REPRESENTATION ELECTION IN KALAMAZOO BY AUGUSTGS R. HATTON Kalamazoo (population 50,000) has a close copy of the National Municipal League’s model charter and as it is the largest American city electing its council by proportional representation, the story of its second election is impntant evidence. :: .. .. .. .. .. A YEAR and a half ago, the story of the first proportional representation election in Kalamazoo was told in these pages.‘ The second election, held on November 4, 1919, was even more interesting and instructive. At the first election, the contest swirled about the name and personality of Truxton Talbot, Socialist, labor leader and editor of a small weekly newspaper. At the second election that struggle was all but forgotten. Talbot, as a member of the city commission, had not fulfilled the dire prophesies of his opponents of 1918 and, in the meantime, important issues had arisen which turned public attention to policies rather than to personalities. These issues were the proposal to issue. $1,260,000 of bonds for the extension of the municipal lighting plant, the policy of the commission in establishing a municipal coal yard, and the continuance of the proportional representation system of choosing the commission. As the entire commission is renewed at each election there was an excellent opportunity to pass on the policies and personalities of the first commission chosen under the present charter. All the commissioners except one stood for re-election and, altogether, there were twenty-four candidates for the seven places to be filled. NATXONAL MUNICIPAL REVIEW, vol. 7, pp. 9S9-348. THE LOCAL ISSUES The extent to which the ground of municipal politics had shifted since April, 1918, may be briefly indicated. At that election Talbot and some of the candidates endorsed by him were opposed as representing all that was undesirable in socialism. For the election last November the Socialists nominated a ticket of seven and neither the name of Talbot nor of any of his associates of 1918 appeared in that list. There were many people who opposed Talbot in 1918 who, a year and a half later, were ready to declare that it was a good thing to have him on the city commission. Some of his former opponents even voted to continue him in office. A weekly paper published in the interest of the Catholic church declared, “Perhaps no commissioners have given more time or have been more active for the people than Dr. Butler and Mr. Talbot who deserve, on account of their earnest work, re-election.” (Next to the election of Talbot in 1918 that of Dr. Butler had caused most consternation.) In the same issue of this paper, and in the same column with the above statement, there appeared an answer to the question, “Why are Catholics opposed to socialism?” This was as scathing a denunciation of socialism as the most confirmed supporter of the capitalist system could wish! 84

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19201 PROPORTIONAL REPRESENTATION ELECTION 85 And yet the great underlying issue of the campaign was the municipalization, or socialization, of additional activities. During the year the commission had established a municipal coal yard for selling fuel in small quantities at cost. This startled the coal dealers. An investigation of the feasibility of supplanting the private distribution of milk by a municipal system aroused another group. Finally the commission, by unanimous vote, proposed to issue bonds to the amount of $1,260,000 for the purpose of extending the electric light plant. The city has operated a plant for a number of years for public lighting and it was now proposed to extend this plant so as to sell current to private users. Upon these issues the opposition united and formed an organization called the citizens’ voters league. While the attack was centered on the bonds for extending the lighting plant, an ett’ort was made to draw together all elements of opposition in the city. A bid was made for the votes of the original opponents of the new charter and particularly of those opposed to proportional representation. On the latter subject a special bulletin was issued which attacked proportional representation as un-American, confusing, a scheme on behalf of the few against the many, making it impossible for the voter to express his full will, involving a big element of chance, placing arbitrary power in the hands of election officials, not providing for majority rule and as making a recount of votes impossible. Absurd as most of these charges were, they undoubtedly had some influence. No attempt to answer them was made by those who believed in the system. The leaders were too busy fighting for the passage of the lighting plant bonds. As a result the constantly reiterated and uncornbated statements that the Hare ballot is difficult to understand and mark undoubtedly made an impression on the voters and possibly kept some from the polls. The citizens’ voters league sponsored a ticket of five candidates standing, in some cases none too definitely, against the lighting bonds, further “socialistic” experiments and proportional representation. The league at the outset endorsed seven candidates but two repudiated its platform and stood as independents. The socialists, as already stated, nominated a full ticket of seven. The six commissioners who were willing to be candidates for re-election stood on their records, including the proposal to issue the lighting bonds. In addition to the eighteen candidates representing the three groups mentioned, there were six independents, one of whom, at least, stood on a definite platform. THE NEW COMMISSION The result of the election is an interesting study in discriminating voting. The lighting bonds lacked 53 of a majority, and 519 of the two-thirds majority required. At the same time only one of the candidates endorsed by the citizens’ voters league was elected, and there was no apparent connection between his success and the support of the league or his endorsement of its platform. He is a man of wide acquaintance and popularity in the city, a former alderman and a representative of the larger Dutch element in the population. Four of the six commissioners standing for reelection were successful. These were Dr. W. E. Upjohn, then mayor, A. J. Todd, Truxton Talbot and Dr. Paul Butler. The remaining two places went to independents, one to Captain C. R. Myers, a young and popular soldier

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86 NATIONAL MUNICIPAL REVIEW [February who distinguished himself in France, and the other to Alexander Velleman, a leading merchant and the only independent candidate having a definite platform. The seven Socialist candidates received first choice votes varying from 1t to 59. An analysis of the election results indicates that, on the whole, the voters approved the work of the outgoing commissioners, although defeating the proposed lighting bond issue. As to that question the voters do not seem to have been influenced by the “antisocialist” arguments of the citizens’ voters league. That organization was careful to say that its opposition to the bonds was not to be regarded as opposition to municipal ownership but to the proposition to embark on extensive expenditures during the period of high prices. This was declared time and again in the advertisements and other published statements of the league. At the same time the league did try to take advantage of whatever sentiment there might be against the expansion of municipal effort into fields hitherto regarded as private. In a separate folder objection was expressed to “using the taxpayers’ money to enter into private business” and to the continuance of the municipal coal yard. A warning was also uttered against the possible extension of what was alleged to be a dangerous tendency. It is very doubtful whether this “viewing with alarm” influenced many voters. One gets the impression in Kalamazoo that the municipal coal yard is rather popular. On the other hand the voters were persuaded that the present is not a favorable time to make large expenditures for the extension of a public utility. There were good arguments on the other side but the fact remains that the opponents of the lighting bonds made their point with the voters while the proponents of the bonds failed to do so. It was in this state of mind that the voters re-elected four of the six commissioners who were candidates and defeated their bond issue for electric light extension. THE DEFEATED COMMISSIONERS One of the defeated commissioners, George Martin, was regarded as the most conservative man of the commission while the other, William Shakespeare, Jr., was classed with the more radical element. As to Martin, his defeat was probably due to the widely held opinion that, because of his employment in an establishment in which Dr. Upjohn is largely interested, he was not in a position to act independently and thus adequately represent those who had elected him in 1918. Personal confidence in Dr. Upjohn was indicated by the fact that he received more first-choice votes than any other candidate. However, it was a common remark that he ought not be placed in a position to control two votes in the commission. Moreover, Martin clearly owed his election in 1918 to the more conservative portion of the electorate. His course in supporting the municipal coal yard and the lighting bonds lost him much of that support in 1919 and gave color to the suggestion that he was too prone to follow Dr. Upjohn who was a leader in both of those movements. In the opinion of the writer this attitude was not entirely fair to either Dr. Upjohn or Mr. Martin. On the other hand it must be admitted that Martin’s record on the.commission did not entitle him to re-election at the hands of those who were opposed to the expansion of municipal activities. The defeat of Shakespeare calls for a different explanation. In many respects he is the most interesting figure

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19201 PROPORTIONAL REPRESENTATION ELECTION 87 in a city which, for its size, can probably boast more interesting figures than any in the United States. No man in Kalamazoo has so consistently fought for advanced ideas in the government of the city or given as much time to its interests. Manufacturer, employer, radical in his economic thinking, honestly trying to apply his theories in the conduct of his own business, a dreamer striving to translate dreams into facts, unselfish to a fault, fearless in fighting for what he believes to be the public good, gentlest and most lovable of mensuch is William Shakespeare, Jr. And yet it was a logical result of the situation last November that, of the commissioners seeking re-election, Shakespeare should have received the smallest number of first-choice votes and should ultimately have been defeated. In spite of his advanced views, his position as a manufacturer and employer did not precisely qualify him as a representative of labor. Talbot and Dr. Butler were regarded as more nearly fulfilling the requirements in that respect. His record on the commission and his well-known views made it impossible to class him as a moderate and lost him the support of the employing class and of conservatives in general. The election of Alexander Velleman is worthy of special comment. He is a merchant of liberal tendencies and was one of the candidates endorsed by Truxton Talbot in 1918. At the last election he stood as an independent. Had he been a member of the commission in 1918-19, he would, undoubtedly, have voted to establish the coal yard and for the issuance of the lighting bonds. But in the campaign last autumn he steered clear of these issues, announced a program of his own and kept himself and it before the public by newspaper advertising. No other candidate, with the possible exception of Talbot, made a strong individual campaign. The commissioners standing for re-election took the position that their record was their platform and wa5, therefore, sufficiently known to the voters. They even placed the city manager in the indefensible position of conducting the campaign for the lighting bonds which they proposed to issue. Under these circumstances the individuality of Velleman stood out sharply and at least one part of his platform made a strong popular appeal. As a result he shared with Dr. Upjohn the honor of being elected by first-choice votes. REASONS FOR THE LIGHT VOTE The election brought out a disappointingly light vote, only 5,997 ballots being cast. The total possible registration, including women, would probably reach 20,000. The opponents of proportional representation charged that the light vote was the result of the system of voting. Even the Gazette, which has been mildly friendly to proportional representation, said in commenting on the small vote: The chief reason, undoubtedly, is the determination on the part of a very large part of the electorate not to try and understand the proportional representation system of elections and to refrain from voting as long as that system is provided by the city charter. That is foolish, of course, but nevertheless a very patent fact and one that the community must face. . . . There is no question in our minds of the superiority of proportional representation over the old system of partisan ward elections. Its superiority, however, amounts to naught if the electors will not make use of it to express themselves; if the mass of the electors stay at home rather than take the trouble of discovering for themselves how it may be used. Our candid opinion after yesterday’s election . . . is that so far as Kdamazoo is concerned, proportional representation is a failure. We base this

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19201 PROPORTIONAL REPRESENTATION ELECTION 87 in a city which, for its size, can probably boast more interesting figures than any in the United States. No man in Kalamazoo has so consistently fought for advanced ideas in the government of the city or given as much time to its interests. Manufacturer, employer, radical in his economic thinking, honestly trying to apply his theories in the conduct of his own business, a dreamer striving to translate dreams into facts, unselfish to a fault, fearless in fighting for what he believes to be the public good, gentlest and most lovable of mensuch is William Shakespeare, Jr. And yet it was a logical result of the situation last November that, of the commissioners seeking re-election, Shakespeare should have received the smallest number of first-choice votes and should ultimately have been defeated. In spite of his advanced views, his position as a manufacturer and employer did not precisely qualify him as a representative of labor. Talbot and Dr. Butler were regarded as more nearly fulfilling the requirements in that respect. His record on the commission and his well-known views made it impossible to class him as a moderate and lost him the support of the employing class and of conservatives in general. The election of Alexander Velleman is worthy of special comment. He is a merchant of liberal tendencies and was one of the candidates endorsed by Truxton Talbot in 1918. At the last election he stood as an independent. Had he been a member of the commission in 1918-19, he would, undoubtedly, have voted to establish the coal yard and for the issuance of the lighting bonds. But in the campaign last autumn he steered clear of these issues, announced a program of his own and kept himself and it before the public by newspaper advertising. No other candidate, with the possible exception of Talbot, made a strong individual campaign. The commissioners standing for re-election took the position that their record was their platform and wa5, therefore, sufficiently known to the voters. They even placed the city manager in the indefensible position of conducting the campaign for the lighting bonds which they proposed to issue. Under these circumstances the individuality of Velleman stood out sharply and at least one part of his platform made a strong popular appeal. As a result he shared with Dr. Upjohn the honor of being elected by first-choice votes. REASONS FOR THE LIGHT VOTE The election brought out a disappointingly light vote, only 5,997 ballots being cast. The total possible registration, including women, would probably reach 20,000. The opponents of proportional representation charged that the light vote was the result of the system of voting. Even the Gazette, which has been mildly friendly to proportional representation, said in commenting on the small vote: The chief reason, undoubtedly, is the determination on the part of a very large part of the electorate not to try and understand the proportional representation system of elections and to refrain from voting as long as that system is provided by the city charter. That is foolish, of course, but nevertheless a very patent fact and one that the community must face. . . . There is no question in our minds of the superiority of proportional representation over the old system of partisan ward elections. Its superiority, however, amounts to naught if the electors will not make use of it to express themselves; if the mass of the electors stay at home rather than take the trouble of discovering for themselves how it may be used. Our candid opinion after yesterday’s election . . . is that so far as Kdamazoo is concerned, proportional representation is a failure. We base this

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90 ,y D 479 137 85 81 269 115 41 231 50 268 310 288 218 544 M)6 252 716 219 716 9 i724 Name of Candidate 2 0s *PI $3 * $1 8 5 5 684 3 140 86 1 82 2 271 1 116 2 233 50 5 263 2 312 1 289 3 221 8 552 506 3 255 11) 2 221 716 3 12 41 5724 -41 D H. T. Aukerman.. .... Paul T. Butler. ....... Fred Currier.. ........ E. M. Curry.. ........ Frances E. Deal.. ..... C. Allen Fox. ........ F. A. Gallagher. ...... Wm. B. Hallett.. ..... Florence E. Inch. ..... Carl L. Larsen. ....... Geo. E. Martin.. ..... C. Rhuel Myers.. ..... Lealie G. Scott.. ...... E. M. Sergeant. ...... Wm. Shakespeare.. .... Alfred R. Smith.. ..... Truxton Talbot. ...... A. Ten Busachen. ..... Albert J. Todd.. ...... Wm E. U john.. ..... GuyVan groeke.. .... H. L. Vander Horst.. .. Jerry Van Worden. .... Alex Velleman. ....... Non-transferable Ballots, .......... Total Valid Ballots.. .3’ 2 31 667 132 64 81 269 106 39 231 42 258 310 D 288 211 23 526 502 251 716 31 216 14 716 5724 NATIONAL MUNICIPAL REVIEW ELECTION OF COMMISSION 2 3 PI CI ~..m 0hi; $B $2 2 6 1 2 2 -14 2 14 RBBIJLT SHEET 29 607 125 59 75 259 102 35 211 39 228 291 11 275 181 20 504 483 194 863 30 190 12 801 i724 1 0 30 I 43 17 667 5 2 132 1 1 61 2 5 1 81 8 2 259 2 2 106 3 1 39 16 4 231 1 2 42 28 2 258 17 2 310 0 0 11 -11 4 7 286 I 22 6 209 I 0 0 20 4 12 10 526 10 9 502 54 3 251 -247 716 1 0 31 13 13 216 1 1 14 -85 716 247 85 5724 11 1 1 1 4 1 2 -23 5 1 2 1 23 franchise.” That there is anything in this language precluding that use of proportional representation in a municipal election it would be difficult to see. In 1890 the supreme court declared unconstitutional an act of the legislature which provided a system of cumulative voting for the election, from certain counties, of members of the lower house of the state legislature.‘ That case is clearly distinguishable, both as to the question involved and as to its reasoning, from the present case involving the election provisions of the Kalamazoo charter. The judge in the circuit court of Kalamazoo county, before whom the case was argued, handed down an opinion on January 3 holding the Hare system as provided in the Kalamazoo charter unconstitutional. In the mind llllaynard v. The Board of Canvassers, 84 Michigan, 5238. ,.,, 34 3 37 -37 673 2 675 4 133 1 134 3 69 3 72 13 81 81 269 289 106 4 110 E 40 40 I 231 231 258 258 310 310 288 288 215 3 218 D 533 6 539 5 2504 2606 252 252 716 716 33 -33 D 217 2 219 716 716 2459 42 2 44 e 5724 33 5724 37 * d 33 672 132 65 81 269 106 39 231 42 258 288 213 23 528 502 251 31 216 D 310 via vie 2 i724 of the judge the conclusive argument seemed to be that, under the Hare system, the ballot of any voter would only be counted for one candidate though several choices might be expressed and seven commissioners were to be chosen from the city at large. To quote his language, “Does the provision of our constitution give to the elector the right to vote for every officer elected within the district he is chosenfrom? I believeit does. ... This is, in my judgment, the holding of our supreme court in the Maynard case though it may be considered dictum. ... An elector cannot under this system vote for more than one oEcer, even though he votes for as many choices as there are candidates, because by the method of counting votes his ballot counts for but one candidate. It may be that this system does give both a majority

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192Q] PROPORTIONAL REPRESENTATION ELECTION 91 and minority representation on the city commission, and perhaps is a much improved system of voting, but I do not think that under our present constitution it can be upheld.” Apparently it availed nothing, so far as the learned judge was concerned, that in rendering this decision he was obliged to read the word “district” into the constitution of the state along with several other ideas surely not there expressed. He admitted that it would be valid to divide the city into seven wards, each electing one commissioner, though that system might even defeat the will of a majority of the electors. He could comprehend a constituency marked out by geographical lines and electing one commissioner but he could not grasp the idea of a constituency based on a community of opinion electing a commissioner. In other words his decision was to the 3 effect that a geographical constituency is the only kind permissible under the Michigan constitution. This case will, doubtless, be appealed to the state supreme court. But in the meantime the city is considerably handicapped by the possibility that it is operating under only a de fact0 government. Already it has begun to curtail its financial operations in order to avoid legal complications. This inconvenience, together with the possibility that a decision cannot be had from the supreme court for at least six months, will doubtless be used as an argument for abandoning proportional representation by an immediate amendment of the charter. It is to be hoped that the people of Kalamazoo will not yield to any such suggestion. ,They owe it to other cities of the state as well as to themselves to secure a decision from their

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92 NATIONAL MUNICIPAL REVIEW [February highest state court as to whether proportional representation is permissible under the present state constitution. Whatever the final outcome, Kalamazoo will have given a valuable and satisfactory demonstration of the soundness and practicability of the Hare system of proportional representation. ONE LESSON There is one lesson from the experience with proportional representation in Kalamazoo, and particularly from the attacks against it there, which believers in the system should take to heart. Unfortunately their attitude so far has been that typical of reformers. Having written their reform into law they have straightway forgotten that the electorate needs education in the use of the new instrument and that the change to be secure must be buttressed by informed public opinion. This is desirable in the case of all reforms; it is particularly important in the case of proportional representation. For here is no ordinary change in political method, but a fundamental alteration in the conception and practice of representation hitherto prevailing in this country. It necessitates adjustments in political thinking and habits. It upsets the system of control laboriously built up by political managers and manipulators. It throws down the gauntlet to politicaI intolerance which rises to fight it as a deadly enemy. The method of marking and counting ballots which it introduces is new and strange and, therefore, particularly subject to misunderstanding and misrepresentation. Thus proportional representation not only has to overcome that political inertia which is always an obstacle to change but inevitably raises against itself an unusual weight of prejudice, stupidity and selfishness. The lesson to be learned is that education in the meaning and use of proportional representation should not only precede its adoption but should continue for some time thereafter. The opponents of the system do not retire from the field with their initial defeat at the polls. They were vociferously active during the last campaign in Kalamazoo. Their charges were in nearly every instance unsound, absurd and even unfair. Nevertheless, they made an impression because no one answered them. There was not even a systematic effort to call the attention of the voters to the manner in which the ballot should be marked. On the Sunday before the election the Gazette carried an editorial explaining how to mark the ballot for commissioners. That represented the whole of the instruction that the voters received before the election.

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HOW COMMISSION GOVERNMENT WORKS IN BUFFALO BY GEORGE S. BUCK Map of Buffalo Bufalo is the largest city that has tried the commis&on plan and Mayor Buck’s experiences, painstakingly detailed at our request, .. .. illustrate both the strength and the weakness of the charter. : : IN November, 1914, the people of Buffala adopted the commission form of government by a very large majority. By the terms of our charter the mayor is made the commissioner of public safety and the departments of police, fire and health are given to him, while the remaining city departments are assigned to four other commissioners by vote of the city council. The nominations are made in a non-partisan primary three weeks before election. There may be any number of candidates in the primary, but after the primary there are only twice as many candidates as there are vacancies to be filled, and these candidates are chosen from those having the largest number of votes in the primary. RESPONSIBLE AND SENSITIVE Under our charter there is no diffirequiring the council to rescind its action or, if it does not do so, to submit the matter in question to a referendum. During the four years that our charter has been in operation the right to appeal to a referendum has been put into effect on one occasion only, when an appeal was taken to the people from the decision of the city council to give the street railway company a six-cent fare during the period of the war and six months thereafter. While this public veto over any proposed action of the council is no doubt both wise and necessary, the members of the council are very sensitive to public opinion and, whenever any proposition is brought forward to which opposition develops, the council has always shown a disposition to give ample opportunity for the opposition to be heard. There never has been the slightest disposition to try to jam any action through without deliberation and consideration culty in placing praise or blame. Each of the contrary points of view. It is commissioner is responsible for the an easy matter for opposition to make work of his department. The council itself heard, because the entire council can act with great speed if necessary; attends every hearing. It sits as a at the same time there is no danger of legislative body every Wednesday anything undesirable going through afternoon and as a committee on without opportunity for public disevery Friday afternoon. Public hearcussion. The charter will not permit ings are given at the committee meetany action affecting a material right of ings and only on exceptional occasions the public unless the resolution by are any hearings given at the council which it is to be accomplished shall lie meetings. A citizen need attend but on the table for thirty days. During one hearing in order to make his views that period a petition may be filed known to the council. 93

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94 NATIONAL MUNICIPAL REVIEW [February QUICK WORK Let me give an example of what the council can do in an emergency. The health commissioner asked for a conference with its members at the time of the influenza epidemic. He met with the commissioners at ten o’clock on Friday morning, pointed out the seriousness of the situation and explained the need of an additional hospital. He asked for the use of an old high school to be converted into a temporary one. He was told to go ahead and that the commissioners would back him in every way, including the necessary appropriation. By eleven o’clock of that same morning employes from the department of public works and the department of parks and public buildings were at work converting the high school into a temporary hospital. At four o’clock on Saturday afternoon, or within thirty hours from the time that the head of the department of health went into conference with the council, the first influenza patient was taken into the temporary hospital. A distinct advantage of the commission form of government is that it combines in the council both the legislative and executive powers. If any one of the commissioners requires an amendment to the ordinances-which is but the name for the municipal laws -for the proper conduct of his department, he submits the ordinance which he desires to the council. He explains the necessity for its enactment, defends it against criticism and votes in favor of its passage. If an appropriation is needed the same course is followed. The head of the department has the right to explain and defend before his fellow legislators the necessity of any legislative action affecting his department. This is an immense aid in the executive work of any department. From my experience with our city government there is no doubt in my mind that for efficient, prompt, and responsible government there is nothing better than a combination of legislative and executive authority. All British democracies in their parliaments have this combination of legislative and executive authority vested in the same men, and the success of commission government will do much to demonstrate to the American public that there is no danger, and many advantages, in the union of executive and legislative power. NO RECALL There is no provision for a recall in our charter and I am glad that there is not. It is impossible for an executive to do his duty, according to his best judgment, with courage and energy without offending many people, and in almost any crisis a large element will not agree with the course which he takes. The result is that the recall would simply tend to keep an executive in constant dread of a campaign. It paralyzes vigorous action and promotes continual political turmoil. DEVELOPING THE SOURCE OF REVENUE Our commissioners are quite willing to spendmoney to bring about improvements in the conduct of any department. For example, soon after the new government took office it appropriated nearly $60,000 to install a better and more scientific method of assessment. As a result of this work, in four years’ time, $1,000,000 has been added to the total assessed value of real estate. This has increased the borrowing capacity of the city. It has inflicted hardship on no one because the assessments are now based on actual and careful measurements and

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19901 HOW COMMISSION GOVERNMENT WORKS 95 surveys and thus are impartial. It has made it possible for the city to have the best of credit during the period of the war. This was a time when many cities suffered distinct financial distress, but Buffalo has been in an easy and comfortable position. It is safe to say that if the war had not upset economic conditions our city government would have been able to show a very remarkable reduction in the tax rate. Buffalo’s assessors are nominated by the mayor and confkned by the council and serve during good behavior. It is a great improvement over the elective method. No taxpayer seeking concessions can threaten reprisal at the end of an assessor’s term for failure to be a good fellow. The assessors know that as long as they do their duty they axe safe, because no commissioner would dare move for the dismissal of any one of them without good cause. THE PRESSURE ON THE MAYOR The pressure of public business upon the mayor of a commission-governed city of 500,000 inhabitants is very heavy. The council must hold sessions which occupy at least two afternoons of every week. It also meets as a board of trustees for the school, police and fire department pension funds. These meetings often involve hearings. Then there are special hearings from time to time upon matters of importance, There are about 1,800 men in the police and fire departments and all trials for violations of the rules of these departments must be heard by the mayor or members of the council whom he may designate, but through a subdivision of the business of our council through its own members, as a matter of fact, the mayor sits in all of the trials and reports his finding to the other members of the council. There are nearly 2,300 employes directly under the mayor and where there are so many there are constantly a number of new appointments to be made. There are changes from one position to another. There are many people who wish to see the mayorlin behalf of friends who are affected by these changes. There are questions of city policy about which citizens wish to talk to the mayor. There are contracts to be looked into for the purchase of supplies. There are policies to be determined and settled in the police, health and he departments, and also large questions affecting the city as a whole which require careful consideration. There are distinguished guests visiting the city who are to be received and there are many conventions to be welcomed to the city. There are banquets and social occasions of various kinds which the mayor is expected to attend. In addition to these matters there are a host of citizens who fee1 that the mayor is their last resource and that he should be accessible to them at all times. When in doubt what to do they wish to consult the mayor. It has been necessary for me to take the number of my residential telephone out of the book in order to have any peace and quiet at home. Buffalo’s old charter provided a federaI form of government. The board of aldermen was composed of men elected from small wards. It happened from time to time that representatives were chosen to that board who had so strong a personal following in their districts that they were immune to the pressure of public opinion in the rest of the city. They were elected again and again and became very influential in the city government. They were men of a type who would have been rejected by the city at large if the opportunity

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96 NATIONAL MUNICIPAL REVIEW [February were offered. These men were a medium for the expression of certain malign forces in the life of every community which are bound to make themselves felt, whatever may be the form of local government. But these forces find it much more difficult to make themselves a factor under the commission charter, because the commissioners are men of a different type from the aldermen and are extremely sensitive to the public opinion of the city. They are loath to antagonize the press, so that under normal conditions the influence exercised by it is out of proportion to its stake in the community. It happens at times, however, that the press does not represent popular opinion and this is particularly true before an election when the candidates are able to go before the people who form their judgments independently of the press. A striking illustration of this was given this fall, when the candidate who was opposed by all the daily papers received the highest number of votes, and again when an increased rate of fare for the streetcar company was supported by the press, but was defeated in the referendum by a five-to-one vote. During the twenty-two months preceding the last election there were three members of the city council who generally stood in opposition to the mayor, and one other councilman, on important questions of city policy. These three men were responsible for the course which the city government took. Two of them were candidates for re-election. Only one of them was successful, and of the other candidates, the two who promised most explicitly to support the policies advocated by the mayor were elected. While there were other factors in the campaign this appears to me to be an endorsement of what the mayor, and the councilman who stood with him, tried to do. A CONFUSION OF AUTHORITY The fact that there were three councilmen generally opposed to the mayor had a far-reaching effect in the management of the police and fire departments, which are under the direction of the mayor. Under the old charter the discipline of these departments rested with the fire commissioners and the police commissioners, who were appointed by and responsible to the mayor. In an effort to reduce the number of boards and simplify the city government the present charter vests the duties of the former police and fire commissioners in the city council. The well-known fact that there were three commissioners hostile to the mayor created a feeling in the police and fire departments that the thing to do was to appeal to the council from the decisions of the mayor, and as the council overruled the decisions of the mayor in several important cases, the effect was bad upon the discipline of those departments. As the majority of the new council will now probably be friendly to the mayor in these matters, this situation will right itself. Nevertheless, the police and fire departments are semi-military organizations for which the mayor is responsible under the charter, so that it should give the mayor the right to discipline them, and the men should have the right of appeal to the courts from his decisions, to be protected from a mayor who might attempt to make political removals. THE NET RESULT I am convinced that the commission form of government is a very great step in advance in solving the problem of how to attain successful municipal government. The men elected from the city at large are more representa

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19201 HOW COMMISSION GOVERNMENT WORKS 97 tive of the citizens and their ideals and aspirations than are a body of men chosen from small wards. Under our commission charter, unless a man is well known and a reputable citizen, he cannot possibly be chosen to have a part in the city government. Under the system of ward representation a man may become very influential and yet be of such a character that the city as a whole would reject him at once if the opportunity were presented. The small city council can act quickly; nevertheless, it is so sensitive to public opinion that it will not abuse its power to do so. The combination of legislative and executive authority makes for efficiency and ease in administration. The individual citizen can quickly and at a single hearing bring his views before the council. Responsibility is clear and the citizen has no difficulty in deciding who is to blame for any feature of the administration of the city which does not meet with his approval. Taking all these considerations together there is no doubt, from Buffalo’s experience, that commission government is a long step in advance in the solution of the difficult problem of successful administration of the affairs of American cities. Probably the details of the form in which it now exists will be improved upon as experience shows where changes can be made to advantage, but I believe the general principles involved have come to stay.

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BUSINESS SESSION OF THE NATIONAL MUNICIPAL LEAGUE AT CLEVELAND, OHIO, DECEMBER 29, 1819 THX business session of the twentyfifth annual meeting of the National Municipal League was held in connection with a dinner and smoker, at the Hotel Statler, Cleveland, Ohio, December 29,1919, at 7 p.m. Between the dinner and the convening of the business session, Mr. Lawson Purdy, president of the League, referred feelingly to the retirement of Mr. Clinton Rogers Woodruff after twenty-five years’ service as secretary of the League. Mr. Pudy took this occasion to present to Mr. Woodruff, on behalf of members of the National Municipal League, a silver humidor bearing the following inscription : As every institution is but the lengthened shadow of a man so the National Municipal League hereby gratefully acknowledges that it is but another name for CLINTON ROGERS WOODRUFF who has been for twenty-five years its devoted secretary, its organizing genius, its motive force, its guiding spirit. He found the National Municipal League a mere project; he leaves it the central force of American civics. He found municipal reform a feeble aspiration; he leaves it the foremost achievement of modern democracy. In grateful testimony whereof, this token is presented by the National Municipal League at its annual meeting in Cleveland, Ohio, December 29. 1919. The business session of the League having been called to order by the president, the treasurer, Mi. Raymond V. Ingersoll, presented the treasurer’s report, which was referred to the auditors for the usual action. Mi. Ingersoll, presenting the report of the nominating committee, announced that the Hon. Charles E. Hughes, formerly justice of the United States supreme court, had consented to have his name placed in nomination for the presidency of the League, and Mr. Frank A. Vanderlip, formerly assistant secretary of the treasury of the United States, for the treasurership of the League. The committee recommended the election of Mr. Clinton Rogers Woodruff as honorary secretary. Nominations were also made for vice-presidents and members of the council. In recommending Judge Hughes and Mr. Vanderlip for officers of the League, Mr. IngerSOU expressed the opinion that the securing of two men with such great ability and reputation ought greatly to increase the possibilities of the League for valuable work. Judge Hughes, Mr. Ingersoll pointed out, has an unusual grasp of local, state and national public affairs. His familiarity with state government will be particularly valuable at a time when the League is properly turning its attention to that subject. He is devoting more and more of his time to public questions and will unquestionably take a very active interest in developing the League along sound and effective lines. Mr. Vanderlip, Mr. Ingersoll stated, has not only had very broad experience as a banker, but has held public office in two national administrations and has always kept closely in touch with important public questions. In his recent book, “What Happened to Europe,” Mr. Vanderlip expressed a profound sense of the necessity for securing better standards of government in this country. In recommending that Mr. Woodruff be made honorary secretary, Mr. Ingersoll said the committee had in mind that this would be an appropriate way of showing appreciation for the exceptional work which he has done for the past twenty-five years in building up the League. and would also keep for the benefit of the organization the prestige in municipal matters which goes with Mr. Woodruff’s name. 98

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BUSINESS SESSION OF NATIONAL MUNICIPAL LEAGUE 99 Upon motion, the secretary cast a ballot for the nominees for officers and members of the council as presented by the committee, and they were thereupon declared elected. (A list of the officers and members of the new council will be found on the fourth cover page of this issue of the NATIONAL MUNICIPAL REVIEW.) The election of a secretary was referred to the council with power to act. The amendments to the constitution of the League, reported by Mr. L. D. Upson, were considered seriatim. The constitution as amended and adopted will be published in the March issue of the NATIONAL MUNICIPAL REVIEW. On motion of Mr. Mayo Fesler it was resolved “that the members here present desire that the name of the League shall be changed to conform with the first object as set forth in the first paragraph of Article 11, and that the matter be referred to the council, with the request that it report at the next meeting its recommendations, with the form to be adopted, as an amendment to the constitution. ” Following discussion of a more suitable name for the NATIONAL MUNICIPAL REVIEW the council was authorized to make such change as it may see fit at any time previous to the next annual meeting of the League. After being favored by Mr. Judson King and Prof. A. R. Hatton with a description of the operation of the nonpartisan league of North Dakota, the meeting adjourned.

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DEPARTMENT OF PUBLICATIONS 100 I. BOOK ORGANIZED EFFORTS FOR THE IMPROVEMENT OF METEODS OF ADMINISTRATION IN TEE UNITED STATES. By G. A. Weber. New York: D. Appleton and Company. For the Institute for Government Research. Pp. 991. This book is a recognition of the increasing technical character of government, and is a description of the public and private efforts to make governmental processes effective. In particular the writer deals with governmental research and legislative reference which is concerned with the technique of admiitration rather than with the larger problems of politics. For the national government, Mr. Weber traces the examination and improvement of administrative machinery from the earliest congressional inquiries through the current e5orts of the United States bureau of efficiency (official) and the institute for government research (citizen). In the field of state government there is a discussion of the several temporary state commissions on economy, efficiency, and reorganization, o5cial boards of administrative control, and a few permanent citizen organizations working to the same end. Supplementing this is a description of the services rendered by official legislative reference and bill drafting agencies. In the local field-municipal and county-the author enumerates the organizations and some of the results obtained by both official and privately supported bureaus of research. The volume is intended as a reference book, and does not purpose a discussion of the theory of improving administretive methods, nor to any great extent the results accomplished. As a reference book the minor short-comings,-almost entirely in the field of local government--are relatively unimportant. Many reference books suffer from obsolescence as they come from the publisher, and undoubtedly the war and industrial disturbances delayed the presentation of this material. A number of recent county and city agencies are omitted, and data relating to certain agencies indicate the status of 1916. One agency in the national field, organized in 1915,-th:: Institlite for Public Servic-:s omitted. Qn tLe FIIIUI~, paifisciking cmc hve REVIEWS been expended, and the book will be valuable to both the official and citizen concerned in getting more effective government. .. In addition to its primary purpose of reference, the volume is also a measure of the distance that one important movement for better government has come. For this latter service it is unfortunate that the material could not have been revised in 1919 that it might have more truly reflected the importance of the efficiency movement, particdarly in cities and counties where development has been rapid. * NEW TOWNS AFTER THE WAR. An Argument for Garden Cities. London: J. M. Dent & Sons, Ltd. Pg. 84. An attractive pamphlet summarizing the objections to haphazard city construction, indicating the advantage to be expected from intelligent town planning, and painting in glowing colors the splendid possibilities of after-war urban developments in Great Britain, has been published under the above title. It seems to take for granted what so many authorities on housing conditions in England now proelaim. that the state, working through local authorities, is to be the sole house-landlord of the future and that while present private owners of housing property in England will continue as landlords until their houses are worn out. their lot will be quite unenviable and that they will undertake no new construction. This would constitute a very long step in the direction of state Socialism. A large proportion of the buildings erected by the government will be rented at figures which mean a net loss to the state, and as the state is, after all, only the associated people, somebody must pay in increased taxes for uneconomic rents. New towns are to be created. The program starts out with the cry, “Build a hundred garden cities!“ It even proposes that town authorities build model factories to be let on rental. The suggestion vaguely appears that the increased value of sites shall be utilized for the public good, but the question which has so far stared all such projecis bt tile face, namely, where to put these m-del cities and how to find sites for them which

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19201 BOOK REVIEWS 101 will not cost so much that the future of the new community is mortgaged indefinitely, is not even discussed. The price of land in England has advanced enormously since the war. The owners of available sites are aware that hundreds of public authorities are coming into the market bidding for their land. They are informed by pamphlets lie this that a million houses must be built within the next five years. In estimating the price to be paid for land the present owner is permitted to demand a price based on its possible future use. It requires little imagination to anticipate what the effect on land prices will be. As there is no relation in England, such as exists, however imperfectly, in America, between assessment of land for purposes of taxation and the sellimg price of land, one may predict that the result of such a scheme as is here proposed, would be to greatly enhance the fortunes [of present owners of the land. Up to the present, the failure of the project is indicated in the most authoritative Journals. J. J. M. * THE DECLWE OF ARISTOCRACY IN THE Po=TICS OF NEW YORK. By Dixon Ryan Fox. New York: Columbia University; Longmans, Green and Company, agents. 1919. Pp. 460. Dr. Fox has given us a detailed history of political parties from 1801 to 1840. It strikes one with surprise that he starts his study at so late a date. To the student he would have given the satisfaction of a perfect sequence if he had begun where Dr. Becker left off in his history of the Political Parties in the Province of New Ywk. 1760-66. It is true, of course, that the “revolution of 1801” overturned a government of “the rich, the well-born, and the able,” and thus affords a starting point for the description of a waning aristocracy. This description is portrayed to us graphically and not without a touch of humor. The student of municipal history will be interested particularly in a series of twelve diagrams on pp. 433-35. Under a caption “Who Were the Whigs,” the author shows the results of elections by wards in the city of New York from 1810 to 1840 wherein we rediscover that the ieopard does not readily change his spots. Dr. Fox has a way of bringing us very near to the personality he is portraying, as when he writes of the delegates to the convention of 18!& and again of the “Albany Regency” of 1823. His footnotes everywhere give evidence of the extensive reading upon which conclusions have been based. It is possible that the work could have been improved at many points by the use of shorter sentences. Such minor defects should not be overemphasized, however, in a treatise that is so thoroughly satisfying and interesting. The monograph is appropriately illustrated with portraits gathered from unusual as well as authentic engravings or paintings, and it has an admirable index. A. EVERETT PETERSON. II. REVIEWS OF REPORTS Thirty-Fourth Annual Report of the Board of Gas and Electric Light Commissioners of Massachusetts, for the Year 1918.-This report, for the calendar year 1918, covering statistics for the year ending June 30, 1918, is a fat volume of 800 pages, which well maintains the reputation of this, the oldest public utility commission in the United States, and, in fact, in the world. Its chief value consists not so much in the decisions, the year’s legislation, and the few pages of general introduction, as in the extensive reports of the various gas and electric companies of the state. No other commission, with the exception of the New York commissions of the first and second districts, presents statistical and financial data in as clear and systematic a manner as does this Massachusetts commission. There are also some valuable statistics of the four municipal gas plants and the thirty-nine municipal electric light and power plants in the state. But with the exception of the gas plants of Holyoke and Westfield and the electric light plants of Holyoke, Taunton and Chicopee, these plants are too small to be of general interest. From the data given in this volume it can be computed that the fifty-nine private gas companies increased their sales to private consumers from 18,046,000.000 feet in the year ending June 30, 1917, to 19,530,000,000 during the following year, or over 8 per cent. The revenue from private consumers, and from cities for street lamps and public buildings, increased from 86 cents to 93.4. cents while the .profits available for interest, dividends and surplus de

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NATIONAL MUNICIPAL REVIEW [February clined from 26.4 cents to 23.1 cents per thousand feet of sales; but this slight decline still apparently left the companies a profit of 6 per cent or about $4 per thousand feet of annual sales,a sufficient margin. The commission wisely urges legislation permitting it to check the companies from impairing their resources by declaring excessive dividends. It does well, also, to recommend that its approval shall be required before contracts are entered into for the purchase or sale of gas and electric light between companies having a common ownership, such as prevails not only in Massachusetts but in New York city and many other places. The commission aIso recommends that the bonds of the gas, electric and water companies under its charge be disposed of only by tender to the highest bidder. It is unfortunate that the Pennsylvania public utilities commission has been in existence several years before beginning, as it has just done, to require statistics from its public utilities along the lines of a uniform classification of accounts, and it also is greatly to be regretted that many other state commissions that have been collecting such statistics for a few years do not more closely copy the Massachusetts and New York methods of tabulation. Most commissions are so busy with the immediate adjudication of rate and capitalization cases, or questions of service, and are so poorly sustained financially, that they do not present well-ordered summaries and analyses of the rich data at their command. In many cases they are unaware of the importance of comparative statistics. Few commissions, also, can boast of such a record as Massachusetts, whose chairman; Mr. Barker, was in continuous service with the board for over thirty years before he passed away two or three years ago, and whose oldest member, General Schaff, has completed over twenty years of valuable service on the board. Among our regulating bodies only the interstate commerce commission can approach such a record. Since the above review was written, the Massachusetts gas commission has been consolidated with the Massachusetts public service commission, and General Morris Schaff is no longer able to give of his wisdom and long experience to gas affairs in Massachusetts. To those who have admired for many years the work of the Massachusetts gas and electric light commission, the move of-Governor Coolidge seems a great mistake for that commission has done a pioneer and wonderful work and has been more consistently and intelligently devoted to the public interest, especially in matters of gas, than most commissions having to do with public utility lighting in other states. E. W. Bmm. Ib Report of the United Railways Committee on Capitalization and Valuation.-The Civic League of St. Louis, December, 1918. There have been five different valuations made of the St. Louis United Railway properties, two in 1911, one in 1916, and two in 1918. The low estimate of 1911, corrected to 1918, is about $40,000,000; the high estimate, 1918, is over $72,500,000. The Civic League committee in discussing different methods and elements of valuation, confines nearly all of its attention to overhead allowances. This is easily understood from the fact that the lowest base cost, the “public service commissions’ 1911 estimate,” with additions to 1918, amounts to about $34,046,243, while the highest estimate amounts to $41,757,299, a difference of $7,771,050. Over $6,500,000 of this difference is “estimated increase in cost of construction since 1911.” In contrast to the difference in base cost between high and low, the overhead allowances for the same corresponding valuations are: for low valuation, 16.4 per cent of base cost, or $5.589,589; and for high valuation, 73.8 per cent of base cost, or $30,831,849. The difference between high and low “overheads” thus amounts to over $25,000,000. The overhead per cents in the three intermediate valuations are 38.4, 39.6 and 48.6 per cent. The committee recommends 17 per cent as a reasonable allowance for overheads. Honest citizens may well question claims made by the utility interests, their valuation experts and sympathizers, for “overhead” allowances, as well as for some other “values,” that are not quite so elastic in their conception or application. The committee, on the whole, is very liberal in its minimum and maximum values. “The fair value,” it holds, “should be limited to a sum not less than $40,950,000, nor greater than $48,850,000.” If the valuation figures are to be used as a basis for purchase by the city, the committee might very well have gone further into the matter of depreciation. Whether for rate making or purchase, valuations have generally not received

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19201 REVIEWS OF REPORTS 103 as heavy depreciation as the circumstances would seem to justify. From 55 to 45 per cent depreciation may be more nearly correct than 15 to a5 per cent for old second-hand utility property. It may not be amiss to suggest that the most convenient unit for comparison of traction valuations is the aggregate average cost for the entire system, including equipment, reduced to the cost per mile of single track. The fair honest cost for city systems should rarely, if ever, exceed $100,000 per mile of single track. If for a city street railway system, an undepreciated valuation of $70,000 to $80,000 per single track mile is shown, it may well invite close inquiry. In view of the concerted drive all over the country by the utility interests to establish and legalize inflated valuations, and the fact that public officials are often ignorant of, or indifferent to, the injury which may thus be inflicted on the municipalities, it may of necessity devolve upon the disinterested, selfsacrificing citizens to make the fight for protecting the public interest. The study shows a laudable spirit on the part of the Civic League and its committee and may well serve as a stimulus in other cities to combat efforts at exploitation. CHARLE~ K. MOELER. * Community Welfare Law of Indiana.-The community welfare law, recently enacted by the Indiana legislature, creates a “department of public welfare in cities of the 6rst class,” giving them “power to receive and manage and control all gifts and bequests not made for any specific purpose and any gifts made for community welfare purposes.” This is excellent, in that it creates a responsible board to administer such gifts and bequests as public-spirited citizens wish to make for welfare purposes, and centralizes the control of all such funds. The mere fact that a city has such a welfare board will invite gifts, as has been proved by the Cleveland foundation, and will probably divert to public funds gifts that might otherwise go to private philanthropic institutions. The length of time of service-four years-will enable the men who serve on the board to “learn their job” and to administer the funds wisely. The provision that the first members shall be appointed by the mayor will work well or ill, as the mayor does not or does use this office as one of his political “plums.” If the first mea appointed be of high caliber it is to be expected that the incumbents elected by them will be of the same intelligence and ability, and prestige will be established for the board. However, if a city is politics-ridden, and the mayor appoints his own henchmen, the whole scheme will be of negative value. The terms of power for the board are broad enough to enable them to go into many varied enterprises for city welfarethe conducting of surveys in fields of health, recreation, housing, etc.; the demonstration of model playgrounds, model dance halls, community centers, and community theaters; the employment of field workers to organize local community councils for discussion and action on community welfare problems; and the assembling of the experience of other cities in all these fields. In fact, with such broad powers, and a membership free from political influence or domination, such a board would become the dominant factor in movements for community welfare. It is suggested that the board choose its secretary by examination-not necessarily civil service or written examination; that they choose a young man who has made a study of the community movement, that they use him not only as an executive, but leave much to his initiative, and that the board act in an advisory capacity only. Such a method will result not only in immediate benefit to the population of the city, but also in creating new methods, procedure, and technique in community work. This method of administration has been sdmirably developed in the work of the board of park commissioners of the South Park system in Chicago. This board consists of seven men, appointed by the county judge for a period of six years. It elects its executive oEcer for an indefinite period, using the advice of the city’s experienced social workers in the selection, and gives him a rather free hand in the development of the work of the department. The board has been free from political domination since its inception, and, in contrast to the other park boards of the city, where appointments have been a matter of political preferment, it has accomplished one of the most outstanding pieces of recreation work in the country in the invention and maintenance of magnificent community centers in the small parks. The other park boards of the city have all too tardily imitated their work. The work of the latter boards has been important when the appointees were men of

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104 NATIONAL MUNICIPAL REVIEW [February vision and ability even though they were of necessity part of the political machine. It has fallen below the best standards when the appointees have been politicians with no understanding of community problems. The work of the South Park commission, on the contrary, has been one of steady growth from the beginning, of even development, constant innovation and experimentation. "he community welfare law should be amended to include cities of the second class. Too much of the legislation of the Indiana legislature is directed to Indianapolis and the very few other large cities. Few of the most progressive laws are made to apply to cities of the second class so that the state has within its confines such a festering sore, from the standpoint of social conditions, as East Chicago, where every condition of community life is indescribably bad-infected water, no provision for play and no direction or control of community xelfare whatsoever. The housing laws, for instance, passed with so much effort and publicity in Indiana several years ago do not apply at all to East Chicago, with the result that housing conditions exist there to-day, and existed during the war, which are not tolerated in the worst slums in our big cities. The Indiana community welfare law is a step forward in making public policy and in centering control and responsibility for the administration of public funds for community betterment in one group of citizens; but its value will depend entirely on the personnel selected for membership on the Board and on the type of executive officer selected, and the amount of power and responsibility which is delegated to him. Not only should the provisions of the Indiana law be extended to include the smaller cities, but a clause should be framed to eliminate political control. This could be accomplished by placing appointments in the hands of some other 05cial than the mayor, and by giving the board taxing power, if possible, as has been done for the many park commissions that are doing excellent work throughout the country. MARIA WARD LAMBIN.' * Financial Statistics of States.-In this report of the federal bureau of statistics there is shown 1 Acting Director of Recreation, Community Councils of New York. in detail the financial transactions of the 48 states for the year 1918, the assessed valuation of taxable property, and the taxes levied thereon, and their indebtedness and assets at the dose of the year. The financial transactions of the states are so analyzed as to show the revenues of the states, and of the more important departments. and the cost of and indebtedness incurred in conducting state business. Such figures from the report as there might be room to quote here would be so fragmentary as to have only superficial value. A more serious treatment of the report is, perhaps, to emphasize the attention called in the introduction to the antiquated and diverse accounting methods with which the census bureau had to contend in some of the states in the effort to obtain conparative data. There still exist, as the report explains, some states where no modern system of accounting has been installed, where the accounts kept are what are commonly known as cash accounts, or accounts merely of cash receipts and payments. KO attempt is made insuch states to classify receipts with reference to revenue, nor payments with reference to governmental costs. Furthermore, in most states which have introduced modern accounting systems, no common method of classification has been adopted. In some instances it was necessary for the bureau's agents to classify or reclassify, from original vouchers, the revenues and governmental costs, or receipts and payments, in order to arrive at even approximately comparable results. Obviously state financing can never be intelligently undertaken on so loose a basis, and a remedy of this fault must precede or go hand in hand with other fiscal reforms. What is greatly needed is a common and scientific classification of revenues and government costs, or of receipts and expenditures, available for adoption in states where improved accounting methods are desired. * Building East St. Louis for To-morrow is the title of the first annual report of the war civics committee of that city, covering the year ending September 30, 1919. This committee of fifty was organized at the instance of the War Department for the purpose of eliminating adverse living conditions in East St. Louis and creating an environment more favorable to the successful production of war materials. The report details the committee's accomplishments in matters

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19201 REVIEWS OF REPORTS 105 of housing, health, municipal survey, community welfare organizations, cost of living, recreation, racial problems, charities, safety, etc., and also lists in a “debit column” that part of the committee’s work which is as yet uncompleted. This work has not ceased with the signing of the armistice as the committee is pledged to three years’ work, and will continue its efforts for the improvement of the city. * New York State Probation Commission.The twelfth annual report of this commission, a volume of 576 pages, is a valuable contribution to the subject of penology, and especially to that branch dealing with the probationary system. The report contains much data of use to those concerned in the subject, including not only a record of the commission’s work for the year, but also a number of valuable tables, the proceedings of the state conference of probation officers and that of magistrates, and synopses of all statutes relating to probation, juvenile courts, and allied subjects, enacted in the United States during 1918.

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NOTES AND EVENTS I. GOVERNMENT AND ADMINISTRATION Saving a War-Industry City.-Hopewell, the Wonder City of Virginia, developed in the spring of 1915, from a cordeld to a community of some 35,000 people and thousands of shacks and wooden buildings of various kinds. only to be destroyed by a big lire in December of that year. But as is usually the case the lire proved to be a blessing in disguise, for in place of the destroyed shacks appeared modern brick buildings, and the city entered upon a period of wonderful prosperity that was to last for nearly three years. During this time the great plant of the du Pont Company adjacent to the city was furnishing employment for about 16,000 men at high wages. The city was on a boom; miles of paved streets and sidewalks, hundreds of modern brick buildings and comfortable wooden dwellings, water works, an electric company, four banks, additional wharves and docking facilities, street car service, an interurban electric car line connecting the city with Petersburg, good train service over the Norfolk and Western Railway, and a regular freight and passenger service by the Old Dominion Line and other smaller lines on the James River and the Appomattox River, were among Hopewell’s ’advantages. All went well until the signing of the Armistice on November 11, 1918, when the coming of peace started the closing down of the local du Pont plant that had for three and a half years made this a prosperous community. Many of the plant’s employes moved away, and with the coming of spring the city found itself going through a period of depression, until by the middle of June it seemed to some that the city that had growrt up with the large du Pont plant was to die with the death of the big war industry. But the business men of Hopewell and of Petersburg, closely linked with Hopewell in business relations, were not ready to admit that Hopewell had lived its day. Realizing all the natural advantages and the additional inducements that could be offered by the community. these business men of Hopewell and Petersburg conceived the plan of combining their energies in ad;ertising and developing the two cities and adjacent territory under the name of the Petersburg-Hopewell District, with the idea of making it into a great industrial center. The du Pont Company, with several thousand acres of land adjoining Hopewell, and tremendous power plants and miles of railroad, found that it had more land, power, and railroad facilities than it could use, and became interested in the development of the community in order to gain some return from the large investment. Carrying out this plan the business men and the du Pont Company raised $100,000 for the purpose of advertising the advantages of this district and of beginning the development, with an additional sum of $15,000 to be used in an agricultural development of the neighboring farming community in order that the cities might be supplied with fresh vegetables and truck and foods of all kinds. The city has reduced its tax rate to $1 on the hundred and is conducting the city affairs on a most economical basis. It is making every inducement possible to new enterprises and prepared to make attractive propositions to any one desiring a location. Hopewell became a city of the first class on July 1, 1916, by virtue of a charter granted by the general assembly of Virginia. This charter is unique among the cities Qf Virginia in its simplicity. It provides for a mayor, and a bicameral council composed of a board of aldermen of only three members and a council of only five members, all of whom were elected at large from the city. The commissioner of revenue and the treasurer perfordo the duties usually incumbent upon such officers. Other affairs of the city are run by four departments: The engineering department (in charge of the streets and water works), the health and sanitary department, the police department, and the fire department. All department heads are named by the council, and are subject to the council and mayor, to whom they make their reports. f University of Cincinnati Gives Course on Housing.-With the great increase in interest in housing, not only in the United States, but 106

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19201 NOTES AND EVENTS 107 all over the world, the University of Cincinnati is one of the first to meet the need of a comprehensive course of study on the many phases of this important subject. To meet the demand for information and instruction on housing the new department of industrial medicine and public hygiene at the medical college, in charge of Major Carey McCord, haa worked out in co-operation with the Cincinnati better housing league a university course of twenty lectures covering every important phase of the subject from the growth and history of the housing problem to the Garden City Movement, the construction of low-cost houses for wage-earers and housing from the real estate man’s point of view. The course includes lectures by experts from various parts of the country to lecture on the phases of the subject in which they are preeminent. Among the subjects are housing legislation, housing of factories, co-operative housing, etc. Advantage is taken of the fact that Cincinnati has a number of business and professional men and city officials particularly qualified by experience and training to lecture on various topics included in the course. 9 Progress under the British Housing Act.In spite of the Housing Act, progress with the actual building of new houses is reported as being very slow. The ministry of health reports that over 4,OOO~schemes for about 430,000 houses have been submitted, but for various reasons only a small fraction of these are actually in hand. Complaints have been made of delay and undue interference in details by the ministry, but these are repudiated. Looking at the large financial interest the ministry must safeguard, it is perhaps not remarkable that difficulties and differences should arise. 9 Municipal Loans for Home Building.-An ordinance of the province of the Cape of Good Hope, South Africa, empowers the council of the city of Good Hope to make advances to persons of limited means to provide homes for themselves. This advantage is offered only to those whose incomes do not exceed , at least four fifths of which must be derived from actual personal exertion. Such loans must not exceed four fifths of the value of the house and land, nor shall the total loans to any one person be greater than . Loans are to be secured by first mortgages bearing 5 per cent 4 interest, A corporation building loan fund may be established for the purpose, subject to the provisions embodied in the ordinance. * Cheap Rents in LaUs;anae.-’I’he municipal council of Lausanne has received a proposition from the municipality as to a subsidy of %OO,OOO francs ($SS,SlO), including 85,000 francs ($16,409) already given, to the association ‘‘La Maison Ouvriere” (“The Workman Rouse”), which shall construct houses for cheap rent. on the ground which the commune ceded gratuitously to it at Pre d’ouchy. There will be three houses containing altogether thiy apartments of two and three room each and, as a rule, having a garden. 9 Third-Class Cities in Pennsylvania.-A constitutional amendment proposed by the last legislature of Pennsylvania would, if adopted, empower the legislature to reclassify the cities of the state, the number of classes not to exceed seven. Two attempts of the legislature to change the present number of classes, first from three to five, and later from three to seven, having been held unconstitutional, the proposed amendment is deemed necessary in order to deal more effectually with the problem of legislating for cities of homogeneous classes. Before becoming effective, the amendment must pass another legislature and be approved by the voters of the state. Other important legislation of the last Pemsylvanian legislature, affecting cities of the third class, included several amendments to the Clark act, namely, one providing for a uniform tax levy in newly incorporated cities to pay the outstanding indebtedness of the various municipal divisions comprehended in the consolidation; another making conclusive the action of the council in annexing a borough, township, or part thereof, to a third-class city, notwithstanding the initiative and referendum provisions of the Clark act; another limiting to expenditures of more than $250 the provision that all purchases of materials and performance of work must be by contract; another, of questionable value, designating license taxes as being for purposes of revenue. Municipal powers of third-class cities were extended to include the establishment of milk depots; enforcement of market regulations; provision for garbage collection and disposal; regulation of the keeping and slaughtering of

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108 NATIONAL MUNICIPAL REVIEW [February animals and fowls when deemed objectionable by the board of health; smoke regulation; municipal boat and bath houses; provision for musical entertainment; regulation of public dance halls; and provision for municipal pensions. The duties of the city comptroller-a regrettably impotent official in third-class cities under the Clark act-were materially enhanced by new legislation, while, on the other hand, a questionable step was taken in placing rather obscure limitations on the exercise of the initiative and referendum powers granted under the Clark act. * Eldora (Iowa) Plans Community Ymprovemerit.-A committee on public improvement appointed by the community club of Eldora, Iowa, has drafted a report containing features of value to other cities and towns striving for civic advancement. Prominent among these is the suggestion for industrial development in keeping with the natural advantages claimed for Eldora. The report calls attention to the substantial sums of money invested by Eldora citizens in outside industrial enterprises. many of them worthless, and recommends that systematic effort be made to direct Eldora investments to home enterprises. To this end it is proposed that local industries needing development be examined by the community club to ascertain their requirements and advantages for the purpose of encouraging home investors in seeking home investments. Similarly it is recommended that efforts be made to organize industrial enterprises which the city’s environment indicates as highly desirable and which are now lacking. Other topics on which the committee reports -detailed suggestions include a system of paved aighways for the county; parks and public grounds; transportation facilities; public buildings; adjustment of di5culties with the public utility company; better housing; a comprehensive city survey; actual federation of the churches, with a community house as an alternative; a central trustee’s fund for public bequests; and a community council for COordinating the work of all existing welfare organizations. * Philadelphia’s New Department of Welfare.Under its recently amended charter1 PhiladelI NATIONAL MUNICIPAL REVIEW, vol. viii, pp. 417 and 454. phia has just put into operation the clam creating a new department of welfare. Its chief functions are (1) to administer and super. vise all charitable, correctional, and reformatory institutions and agencies (except hospitals) whose control is entrusted to the city; (2) to organize, manage, and supervise playgrounds, repeation centers, floating-baths, bathing grounds, and recreation piers; and (8) to have jurisdiction over such other matters affecting the public welfare as may be provided for by ordinance. While these functions give the welfare department an important r81e in promoting the well-being of the city, yet it lacks many powers common to welfare departmeats in other cities, particularly in the middle west, such as supervision of public amusements, enforcement of health ordinances, suppression of nuisances, maintenance of free employment and legal aid bureaus, or research, lectures, and publicity along welfare lines. * Municipal Bank Proposed for Bradford, England.-A proposal that the Bradford city corporation apply for a government banking charter is being considered by a committee of the city council. Labor members of the council, from whom the plan (still in its formative stages) emanated, advance the following statement by the chairman of the finance committee in sup port of the entrance of the city into the banking field: Banking is the simplest, safest, and most profitable industry in the Kingdom at the present time. The possibilities of saving money to the ratepayers of Bradford by conducting the finances of the corporation through a corporation bank are very great. Some of our difficulties in obtaining capital and loans for public purposes would tend to disappear. I imagine, also, that if a government charter of banking were granted to us ordinary enterprise from outside would be attracted and would come and bank with us. We should become in time a recognized commercial bank. In round figures the Bradford corporation owes E8,000,000 of borrowed money. On this interest is paid up to the rate of 5 per cent. Some of the older loans are at a lower rate. The relationship between banking and borrowing is very close. We should have the beat credit of any individual bank you could think of. Banking requires no capital. The proper course is in my opinion for the government to be the national banker, with the municipalities conducting branches. At the present moment 80 per cent of the banking of this country is conducted by six banks. The banks which conduct the other 20 per cent of

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19201 NOTES Alr;D EVENTS 109 business are not numerous, and amalgamations are constantly going on. The number of banks existing today is startlingly small, when compared with the number that existed, .say, twentyfive years ago. Banking is quickly becoming a t monopoly, and the power of the banks to rp up rates of interest and to hold national credit in pawn is a serious menace. * AMunicipal Foundry.-A new phase of municipal ownership, apparently. is the decision of the city council of Johannesburg, South Africa, to establish a municipal foundry. The plant, to cost ,000. with an allowance of for contingencies, is expected to deal with all the castings for all the departments of the council, which represent approximately 168 tons of cast-iron per year and 8 tons of brass and phosphor bronze per year. The gas, electricity, and tramways departments have an appreciable amount of scrap iron, as well as scrap copper, brass, phosphor bronze, etc.. which has had to be disposed of by the controller of stores and buyer at the best prices offered. With the introduction of a departmental foundry the council expects to be able to use up its own scrap metal. * State Art Commission Appointed for Pennsylvania.-Under authority of an act of the last legislature Governor Sproul of Pennsylvania has appointed a state art commission of five members whose approval is required for the design and location of all public monuments, memorials, buildings, etc., proposed to be erected anywhere in the state, except in cities of the first and second class. * Proportional Representation in Canada.-The new premier of Ontario, the Hon. E. C. Drury, haa forecast the introduction of proportional rep resentation in the next parliamentary elections of the province. The premier is committed to electoral reform, which is expected to be taken up when the parliament convenes this month. U. CITY MANAGER NOTES City Managers’ Association Growing,-The city managers’ association, founded in December, 1914, at Springfield, Ohio, with but eight city managers in attendance, has now grown to be an organization of some 200 members. This rapid growth is explained in part by the creation of an associate membership a year ago, at the 6fth annual meeting, to which anyone sdciently interested in municipal progress to pay the annual dues of five dollars, is eligible. Entirely aside from this feature, however, is the very marked increase of the interest of the city managers themselves, in the work of the association. Quite logically, perhaps, the society has become a sort of clearing house for city managers, and through its monthly bulletin announces openings in the field. During the past year nearly a score of city-manager positions have been filled through information furnished by the association. In other ways the society has endeavored to render definite service.to its members by furnishing them with the best available literature on the manager plan, including subscriptions to the City Manager Bulletin, the Short Ballot Bulletin and the association year books. This year, through cooperation with the National Municipal League, arrangements have been made whereby each member of the city managers’ association has become a subscriber to the NATIONAL MUNICIPAL REVIEW. c City Manager Promotions and Appointments. -Five more transfers of city managers from one city to another have just been announced. In each case the transfer has constituted a real promotion. The total number of such promotions now stands at thirty, and as the city manager movement gains headway, bringing an increased demand for experienced men, these inevitable promotions mill still further upset the theory once advanced that the tenurc of the city manager would be for life, or good behavior. Of the five cases in hand one man advanced to his second city, three to their third and one has received his fourth appointment. J. W. Greer jumps from Byran, Tesas, to Tallahassee, Florida, after establishing a notable record. The three men to tackle their third manager positions are C. A. Bingham, I. R. Ellison and W. M. Cotton. Mr. Bingham served three years at Norwood, Massachusetts, and two years at Waltham, Massachusetts. He has

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110 NATIONAL MUNICIPAL REVIEW [February just been appointed at Watertown, New York. During the five years his salary has increased from $3,000 to $7.500. Mr. Ellison goes to Muskegon, Michigan. after seven years service at Enton Rapids, and Grand Haven, Michigan. Mr. Cotton is a graduate of the city-manager course at the University of Michigan and served as borough manager at Edgeworth and Sewickley, Pennsylvania, before hiy recent appointment at Ambridge, Pennsylvania. G. A. Abbott holds the record for transfers. He is now manager at Sanford. Florida, and during the past four years has served as manager of three Michigan towns, Grow Pointe Shores, Birmingham, and Otaego. An increase of salary is often quite equivalent to a promotion and certainly constitutes a worthwhile endorsement. A large number of increases were announced for January 1. Perhaps the most conspicuous case is that of Charles E. Ashburner. manager at Norfolk, Virginia, who is now receiving $12,000 per year. Mr. Ashburner was the first city manager in the country and has served three cities, starting at a salary of $e,roo. Harry H. Freeman of Kalamazoo, Michigan. and C. M. Osborn of East Cleveland, Ohio, have both been advanced to the $8.000 class. Another interesting feature of recent appointments is the tendency of cities to choose a local man trained within the organization, to succeed a resigning city manager. Henry F. Beal follows Mr. Bingham at Waltham. Mr. Beal wm previously Waltham’s director of public works and city engineer. The case at Wichita, Kansas, mers somewhat in that the new manager, L. W. Clapp. served as mayor for over two years during the managership of L. R. Ash. A second case in which a former mayor has been selected manager is that of W. B. Anthony, recently ap pointed manager at Walters. Oklahoma, after serving several years as mayor of a neighboring city. Other city manager appointments announced since the issue of the City Manager BuIletin for December, 1919, are as follows: Anaheim, California, 0. E. Steward; Pittsburg, California, Randall M. Dorton; Petoskey, Michigan, J. F. Quinn; Ypsilanti, Michigan, T. Fred Older; Sherrill, New York, Lewis W. Morrison; Painesville. Ohio, T. B. Wyman; Salliiaw. Oklahoma, Fred E. Johnston: Rock HiU, South Carolina, E. R. Treverton; Kingsport. Tennessee, F. L. Cloud; Yoakum, Texas, J. E. Lucas; Newburgh, New York, Capt. McKay; Scobey, Montana. Roy N. Stewart; Norman. Oklahoma, W. E. Gates; Santa Barbara, California. Robert R. McGregor. H. G. Orxe.1 * William J. Lamb has been appointed city manager at Ahon. Ohio. Last November Mr. Lamb was elected mayor of the city, an office he has held before. The city commissioners, however, selected him as the city’s chief administrator and transferred him to the city manager’s ofice. * West Palm Bet~ch, Florida.-Joseph Firth has assumed office as city manager of West Palm Beach, Florida, having resigned as commissioner of public works of Winston-Salem, North Carolina, to accept this position. Mr. Firth will be succeeded in WinstonSalem by Captain Harry L. Shaner. former city manager at Lynchburg, Virginia, but who has been engaged in government work since he entered the services of the War Department at the beginning of the war. Captain Shaner will be assisted by W. F. B. Halensworth. of Greenville, South Carolina. * City-Manager Plan Suggested for Cleveland. -Our attention having been called to an error in the November issue of the NATIONAL MVNICIPAL REVIEW, whereby the minority report of the committee recommending the citymanager plan for Cleveland, Ohio, was confused with the majority report? we have obtained from Mr. Leyton E. Carter, mistant secretary of the civic league of Cleveland, the subjoined explanation of the two reports: Followers of the city-manager idea will take keen interest in the recommendations of the committee of fifteen appointed in 1916 to investigate and report on the city-manager plan of government for Cleveland. The committee in its recent report has agreed that the city-manager idea should be applied to Cleveland; but its members have split into two groups over the question of precisely what plan embodying the 1 Secretary, City Managers’ Aasooiation. 1 NATIONAL MUNICIPAL REVIEW, vol. viii, p. 780.

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19901 NOTES AND EVENTS 111 city-manager idea should be recommended to the voters. The majority report or “plan no. 1,” signed by ten members of the committee, eliminates the popularly elected chief executive and provides for the appointment of a city manager by the council, which is to be chosen by proportional representation and number from fifteen to twenty-five members, such manager to hold office during.the pleasure of council. believes that the most fruitful cause of the prevailing distrust in government is the lack of effective administration even more than the unrepresentative character of our legislative bodies.” It sees in the majority plan a means for “excluding partizanship from the administrative service of the city.” It further believes that the adoption of its plan will result in securing better executives and make for continuity of executive policy. Proportional representation is strongly advocated as a means of making the council “truly representative” and drawing into it “the real leaders of the various important groups and interests of the city.” The minority plan, “plan no. 9,” seeks to combine the “advantages of the city-manager plan and the satisfactory features of the present plan.” The minority committee of five is not The majority committee convinced that the straight-out manager plan Bas been tested by experience in great cosmopolitan cities or that it is wise to apply too closely this “industrial form of government” to city government, which is “an agency of the state to promote opportunity for better lie, liberty and happiness of the people, as distinguished from a private industrial hrporation existing to extract from its operation large financial returns for its stock-holders.’’ The minority feels that the r8le which the popularly elected mayor plays “as a leader in evolving those major polities which give character to a community” IE among the institutions of democratic government which must not be sacrificed. It further feels that the choice of a city manager can more safely be left to the popularly elected mayor than to the council where, it believes, responsibility can easily be shifted about. It therefore recommends as its main “plank” the choice of a city manager by the mayor to serve during hig pleasure, or that of each incoming mayor, and to be charged with the administrative work of the city, with control of the several administrative departments centralized in his office. Only the majority plan has met with any considerable favor to date. A campaign committee has been appointed to take steps to bring this plan to popular vote in the near future. III POLITICS PhiIadeIphia’s Political Clem-Up.-Monday, January 5, 19eO. marking the inauguration of the mayor-elect of Philadelphia, J. Hampton Moore,‘ ushered in what many citizens hope and believe to be a new era in the government of that city. It is safe to say that none of Mr. Moore’s predecessors came into office with quite his opportunity for effective service in the administration of the city’s business. For one thing, he has behind him the indorsement and dictum of an overwhelming vote, composed of the independents and the best Republican elements, won in primary and general elections on the clear-cut issue of efficiency versus machine rule, which few former Philadelphia mayors have had; and, for another, Mr. Moore is gifted with a genius for politics and for understanding and dealing with men which no previous “reform” mayor in Philadelphia possessed in the same degree. A further advantage is the greater opportunity offered by the city’s amended charter? These exceptional factors, combined with Mr. Moore’s public experience and personal 1 NATIONAL MUNICIPAL Rnvrnw, vol. viii. p. 731. ‘NATIONAL MUNICIPAL RWIEW, vol. viii, pp. 417 and 454. qualications, give coddence to many shrewd observers that while Mr. Moore cannot make a Utopia of Philadelphia in four years, he will be able, with hard work and a little luck, to accomplish much that in the past has seemed hopeless. The circumstances attending Mayor Moore’s induction into office support these hopes. His appointment of heads of departments has been particularly strong. James T. Cortelyou, director of public safety, was formerly chief of postal inspectors and later at the head of the detective force of the county of Philadelphia. John C. Winston, director of public works, is at the head of a large publishing house and accustomed to handling large affairs; as chairman of the committee of seventy since 1905, and of the charter revision committee, he has been D forceful public figure and familiar with the work of his new office. Dr. C. Lincoln Furbush. director of public health, has had a wide and varied experience under Surgeon-General Gorgas in Panama and also during the war; Dr. Furbush has a high reputation as a sanitarian and a disciplinarian. George F. Sproule, director of wharves, docks, and ferries, is known as the best informed man concerning the port of Phil

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11% NATIONAL MUNICIPAL REVIEW addphia; he has been closely identified with shipping interests for many years. Ernest L. Tustin, director of the new department of public welfare, was formerly head of the recreation board, where he made a good record; he has been a successful lawyer and business man. A. Lincoln Acker, city purchasing agent, has recently retired as the head of one of the largest grocery concerns in Philadelphia; he has had wide experience in large purchasing, and possesses splendid qualifications for his new office. Such of these appointments as have political significance are political only in the best sense, and indicate the high plane of thinking and action of the new administration at its inception. Mr. Moore has also been particularly fortunate in his relations with the new single-chamber council of twenty-one. Not only has he shown a high quality of leadership in dealing with the organization of the new council, but he has been successful in obtaining the council’s election of a civic service commission admirably equipped for the exacting task of bringing to a higher standard the personnel of the various city departments. Of this commission Clinton Rogers WoodruE. now honorary secretary of the National Municipal League after twenty-five years’ service as secretary, is well qualified for his position of chairman by his judicial temperament and an intimate knowledge of the civil service gained through his long activity in municipal affairs. Lewis H. Van Dusen, another member of the commission, served with distinctien in the same position during the administration of Mayor Blankenberg and was in charge as lieutenant-colonel of the personnel bureau in the War Department. Charles W. Neeld, the third member of the commission, is a business man selected for his business experience and his civic interest. Such a commission, both in weeding out the misfits in the service at present, and in conducting fair and effective examinations in filling vacancies, will prove a vital asset to the new mayor, RUSSELL RAMBEY. * Mayor Hoan’s Administration in Milwaukee. -Commenting on the administration of Mayor Hoan of Milwaukee, Charles F. Carson, of the Living Chuwh, writes: The real social value of the public marketing plans, for instance, of the socialistic adminis[February tration was shown by the fact that in providing fish food for the poorer classes the city government was able to undersell the regular markets to the extent of from 50 to 76 per cent in retail price. When the masses of the people were securing food only with the greatest difficulty, this item urged by the mayor in his address was a very strong argument for socialistic methods. The mayor’s suggestion that labor be hired directly, without the intervention of a middle man, seems to me to meet the requirements of common sense, if once we recognize the right of a man to labor without being exploited. The mayor’s plans outlined for making a better Milwaukee included those far improved housing conditions, doing away with the congestion of population, and securing public ownership of the local street railways. The need for each of these three is apparent to a resident. In Milwaukee there are large slum districts, comparing favorably in size with those of the older eastern cities, while on the outskirts within the easy reach of future railway extensions are large expanses of territory which would lend themselves easily to the housing of workmen, when once economical transportation facilities are afforded through public ownership. That public ownership is necessary was proven by last year’s campaign of the locaI company for increased fares. They asserted that it would be necessary to raise the local fare from a four-cent ticket to a straight fivecent fare, if they were to pay the interest charges which the courts had declared legitimate. The Railroad Commission granted the increase, and afterwards it developed that for two years the company had been paying on the old fare system an interest of 12 per cent to a large class of its investors, hut still had demanded more. The mayor has labored under the disadvantage of having a legislative branch not in sympathy with him politically, but he has made a good name for himself nevertheless in spite of political misrepresentation. Q Non-Partisan Elections for Milwaukee.-The last Wisconsin legislature passed two laws providing for the non-partisan election of the county board of supervisors and the county administrative officers, the laws for the present being limited to the county of Milwaukee, the Iargest county in the state. These laws are a move in the direction of majority ruie, in that Milwaukee county has three parties of approximately equal strength. The non-partisan law leaves the choice at the election to the two highest nominees at the primary. RAYMOND T. ZILLMER.~ 1 Secretary, Good Government Lesgue.

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19201 NOTES AND EVENTS IV. JUDICIAL DECISIONS 113 Proportional Representation Held Unconstitutional in Xalammm.-Judge Jesse H. Root, of Monroe, Michigan, in a case brought before him in the circuit court for the county of Kalamazoo. has rendered a decision declaring unconstitutional the provision in the charter of the city of Kalamazoo providing for the election of city commissioners by the Hare system of proportional representation, The provision was attacked on the ground that it conflicted with the requirement of the constitution that “in all electioas every inhabitant of this state shall be an elector and entitled to vote.” The court held that this constitutional requirement was interpreted by the supreme court of the state in the case of Naynard v. Board of Canvassers1 as giving to each elector the right to vote for every officer to be elected, whereas under the Hare system, as applied to Kalamazoo, each elector is permitted to vote for only one of the seven commissioners to be elected. Judge Root also quotes the supreme court of Ohioein which state the constitution then provided that each elector “shall be entitled to vote at all elections,” a provision SubstantiaIIy the same as the Michigan clauseas thus interpreting the case of Maynard V. Board of Canuassers in support of a decision that the Ohio clause guarantees to each elector the right to vote for each officer whose election is submitted to the electors. Judge Root’s decision takes recognition of the contention that these decisions have no applicability to the Kalamazoo case for the reason that city officers are not constitutional officers; that the opinions quoted from are all in reference to constitutional officers; and that the manner of electing city officers is purely a matter of local concern.’ Judge Root disposes of thiw point on the grounds that however true it might otherwise be, it is entirely offset by the constitutional prohibition that “no city or village shall have the right to abridge the right of elective franchise..” On the other hand, Judge Root holds that the Kalamazoo charter is not void because it provides for the election of the mayor by a vote of the commissioners instead of by the people themselves. He also dismisses as purely typographical or clerical an error in the repealing clause of the charter, ruling that the undoubted intention of the charter framers, rather than its literal interpretation, should govern. Furthermore, he dismisses the contention that the court rrhould refuse to enter a judgment of ouster because it would be futile, the respondents having been succeeded by a new commission (also elected by proportional representation), his position being that the proceeding was brought to test the constitutionality of the charter rather than the right of one man to hold office under it. Judge Root’s rather sensational decision seem to give general satisfaction among the opponents of proportional representation, and general dissatisfaction among its adherentsmight be expected. Pending an appeal to the supreme court, the city attorney has advised the commission to play safe, and, in matters of taxation, not to exceed the tax limit set by the old charter. The budget for 1920 is accordingly to be reduced so as to keep withiin the old charter limit of 10 mills. A charter amendment is also proposed, deleting the objectionable proportional representation clause and substituting the old majority system. Such action will require two special elections, one for a referendum on the charter amendment, and another for the election of pew commissioners. V. MISCELLANEOUS Exit “The Public,” Enter “Taxation.”-The announcement that The Public would cease to exist after its issue of December 6, 1919, came to many of its readers rather as a shock. Under the editorship of Louis F. Post, The Public achieved a well-deserved reputation for high, straight thinking, and was frequently referred to as the best-edited periodical in the United 184 Mich. 225. 2 State v. Constantine, 42 Ohio 537. States. Upon the retirement of Mr. Post, Stoughton Cooley became its editor, maintaining in an able manner the standards which his predecessor had set. That the circle of The Public’s readers was never relatively large is regrettable, but more or less in the nature of a distinction, since no serious review in America has ever appealed to more than an infinitesimal Mich. 510. :Bellas v. Bun, 78 Mich. 1. Menton v. Cook, 147

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114 NATIONAL MUNICIPAL REVIEW [February part of our citizenship-and possibly never will. But that this circle should dwindle to a point where it could not sustain existence is, indeed, a tragedy in American journalism. Simultaneously with the extinction of The Public came the announcement of a new magazine, Taxation, to be inaugurated in January, with James R. Brown, president of the Manhattan single tax club, as publisher, and Mr. Cooley as editor. Taxation is projected as an educational weapon for the business man and student of affairs that “will be devoted to the great underlying causes of social unrest and industrial maladjustment.” It promises to be non-partisan. and to analyze the rights of the citizen and the proper sphere of government. * Citizens’ Research Institute of Canada.This institute, recently organized, is a dominionwide association of citizens to obtain and make available the fact basis of the administration of public affairs in Canada. The institute will harmonize its work with that of local bureaus of municipal research and similar bodies, and give wide circulation to such local material as is of general interest. The institute will endeavor, as one of its specific aims, to promote the movement toward the standardization of municipal, provincial and national accounting, which would, among other things, make possible the trustworthy comparison of statistics. Toward this end a series of pamphlets is being published on the cost of government in Canada. * A Civic Classification Scheme.-The municipal reference bureau of the University of Minnesota, of which E. L. Bennett is secretary, has issued a “ClassScation Scheme for Material in the Municipal Reference Bureau,” which rep resents a very careful and painstaking effort, and should prove of interest and practical value to all institutions concerned with the collection of municipal and civic data. Mr. Bennett’s scheme includes some eighteen main subject heads, with appropriate sub-heads and sub-subheads. The main subjects are: municipal government; people’s part in government; municipal corporations; forms of municipal government; municipal legislation; courts; administration; stores and purchasing department; finance; public safety; public health; welfare; city planning; public works; ports and terminals; public utilities; education, and civic organiations. * New Year Greetings from the City of Flint (Michigan) are contained in an attractive new year’s card carrying the city’s greetings on the front cover, a plan of the city on the inside, and on the back a quotation from Charles W. Eliot relative to city planning. * A Study of the Teaching of Government in secondary schools will be made by Professor Edgar Dawson of Hunter College, New York City, who has been given a year’s leave of absence for the purpose. Professor Dawson, who is also field representative on civic education for the National Municipal League, will welcome correspondence with those interested in the subject, suggestions as to points which should be covered, or information as to successful experiments now being made in the field. It is expected that the results of this study will be published in the spring of 19%

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THE COMING OF CENTRALIZED PURCHASING STATE GOVERNMENTS BY A. E. BUCK I-INTRODUCTION Growing Need fm Centralized Control Approximately eighty per cent of the ordinary current expenditures of state governments is made in payment for the services of persons and for the purchase of supplies and materials, from thirty to sixty per cent going for the services of persons and from twenty to sfty per cent for the purchase of supplies and materials. In spite of this comparatively large expenditure for supplies and materials, it is only very recently that many of the states have become interested in the subject of purchasing with a view to economy there and have undertaken to centralize control over purchasing methods and procedure by fixing responsibility for all purchasing in a single unit of the government. The need for such control seems obvious. Numerous savings and certain advantages accrue from the operation of a centralized purchasing system. Briefly, these are (1) the concentration of purchasing power, permitting goods to be bought in large quantities at the lowest and best prices under competitive bidding and promoting prompt delivery, inspection and payment for goods with the minimum inconvenience to dealers; (2) the standardization of supplies, eliminating unnecessary range in kinds of goods, also unduly expensive grades; and (3) the development of an expert purchasing staff , acquainted with the details and skilled in the methods of the several phases of purchasing, inspecting, testing and storing goods. Over Purchasing Development of Centralized Purchasing in City Governments and National Government The movement for centralized purchasing of supplies in governmental organizations is comparatively recent. It was about twenty years ago that cities first began to adopt such systems of purchasing. They copied to a large extent the purchasing methods and procedure of private organizations. Chicago was the first large city to establisha purchasingdepartment (1898), which was placed’under the direction of a (( business agent” empowered to exercise considerable control over the purchasing of all the city’s agencies. In 1903 Philadelphia established a purchasing department with control over the purchase of all supplies for “the conduct of the business of the city.” It has been since 1910, however, that most of the larger cities have adopted centralizedpurchasingsystems. Among these may be mentioned Baltimore, Cleveland, Dayton, Los Angeles, Minneapolis, Milwaukee, New York and St. Louis. The organizations for centralized purchasing in the various cities differ widely. Some have boards or comittees composed of appointive or ex oficio members. Others have delegated the function of purchasing to an existing officer or department. The majority of cities, however, have created special purchasing depaxtments, in most cmes under the control of a single appointive officer. In those cities where the government has been recognized and consolidated into a few departments the function of purchasing 117

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118 NATIONAL MUNICIPAL has been made a division or bureau under one of the main departments, usually the finance department. The general supply committee, in charge of the purchasing of supplies for the executive departments and other agencies of the federal government in Washington City, was created in 1910. This committee is composed of an officer from each of the executive departments designated by the secretary of the department. The work of this committee is under the direct supervision of the superintendent of supplies, who is appointed by the secretary of the treasury and is ex oficio secretary of the committee. Standardization of supplies constitutes the principal work of the committee. Movement for Centralized Purchasing in Twenty years ago (1899) Texas established the office of state purchasing agent for the several eleemosynary institutions of the state. This oEce operated continuously until the past year, when it was abolished and the exercise of its functions was given to the newly created state board of control. The next state to create the office of purchasing agent was Vermont in 191% The Vermont agent was given the power to purchase all supplies and materials used by the several departments and institutions of the state. New Hampshire followed in 1913 by creating the office of purchasing agent, the agent having charge of the purchasing for all the state institutions and departments except the state agricultural college. Although several changes have since been made in the powers of the purchasing agent, they have resulted in an increase rather than a decrease of his authority. California established a state purchasing department in 1915, which has control over the purchase of supplies for all state State Govemnents REVIEW SUPPLEMENT [Feb. agencies, except the state university. In the same year Alabama constituted the secretary to the governor purchasing agent for the state. Recently (1919) the purchasing functions were taken away from the governor’s secretary and given to the newly created board of control and economy. In 1916 New Jersey established the office of state purchasing agent under the control of the state house commission. Ohio, in 1917, established a state purchasing department in the secretary of state’s office, having ,authority to purchase for the state offices and departments, but not for the institutions, the courts and certain boards. The Illinois civil administrative code of 1917 provided for the establishment of a division of purchases and supplies in the department of public works and buildings, which is authorized to purchase practically all of the state’s supplies. The New York legislature of 1918 enacted a law which created a central supply committee, consisting of seven ex oficio members, and provided that it should become operative on July 1, 1919. In 1919, Idaho, Michigan and Wyoming provided for centralized purchasing of state supplies. Idaho placed the puchasing functions under the department of public works in its recently reorganized administration. Michigan created the office of state purchasing agent. Wyoming created a state board of supplies, consisting of three ex oficio members. The purchasing systems of the above named twelve states will be taken up in subsequent sections of this article and discussed in detail under the general heads, (1) organization of the purchasing agencies, (2) purchasing methods and procedure, and (3) operation of the purchasing systems. Other states besides those named above have attempted to establish control over the purchase of supplies and

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19201 PURCHASING STATE GOVERNMENTS 119 materials for their various using agencies, but have not been able to centralize the purchasing to any considerable extent. Nebraska vested the control over the purchase of stationery, office supplies and printing in the newly created department of finance under the reorganized administration.' Institutional purchasing is left to the control of the board of commissioners of state institutions, a constitutional body. Massachusetts provided in the administrative consolidation act2 for the creation of a superintendent of buildings, who is charged with the care of the state house, and with the duty of purchasing all office equipment, stationery and supplies for the consolidated departments. The purchasing for the state institutions is conducted separately; only in the case of the institutions for the insane has there been an attempt to consolidate the purchasing. In Wisconsin the superintendent of public property has the power to purchase such supplies as are used by the departments quartered in the capitol? The state board of control supervises the buying of supplies for the state institutions except the state university, which makes its purchases separately. A large number of states have placed their charitable, penal and correctional institutions under the supervision of boards of control and these boards in several cases have consolidated the purchasing for their institutions. The best examples of this type of consolidated purchasing are to be found in Arizona,4 Kansas,5 Tennessee,0 and West Virginia.' North Carolina has a co-operative purchasing committee 1 Civil Administrative Code, Laws of 1919. * Ch. 350, General Laws of 1919. Ch. 33, sec. 33.03, Revised Stats. 1917. Ch. 64, L. 1919. 6 Ch. 297, L. 1917. Ch. 20, L. 1915. Ch. 58, L. 1909 (Sec. 596, Code of 1913). composed of superintendents of certain state hospitals and schools.s 11-ORGANIZATION OF STATE PURCHASING AGENCIES This section will consider the administrative control which has been established over the purchasing agencies of the twelve states having fairly welldeveloped centralized purchasing systems, namely, Alabama, California, Idaho, Illinois, Michigan, New Hampshire, New Jersey, New York, Ohio, Texas, Vermont and Wyoming; also the organization of each purchasing agency and the general scope of its purchasing power. Alabama The 1915 legislature of Alabama enacted a law9 which constituted the secretary to the governor purchasing agent for the several state departments other than the convict department and the state courts. For this work he received $600 per yearlo and was required to give a bond of $10,000. The governor, auditor and treasurer were constituted a state board of purchase, having control over the work of the purchasing agent. The law establishing this organization was repealed in 1919 and the purchasing functions were vested in the newly created board of economy and control.ll This board is composed of three members, a chairman and two associate members, appointed by the governor and serving at his pleasure for terms not to exceed four years for the chairman and two years each for the associate members. The chairman receives $6,000 and the associate members $4,000 each per year. 8 Ch. 150, L. 1917; amended by Ch. 298. L. 1919. Act No. 414, L. 1915. ID Act No. 711, L. 1915. 11 Acts No. 47 and 758, L. 1919.

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120 NATIONAL MUNICIPAL REVIEW SUPPLEMENT [Feb. The board of control and economy is required to purchase “all supplies for all departments and activities of the state, including all educational institutions and the convict department.” It may also make purchases for the several counties of the state when requested by the governing body of each county. No legal provisions are made for the appointment by the board of a purchasing agent or staff to assist in purchasing. Under provisions of the code,l which were not repealed by the Jaw establishing the board of control and economy, the secretary of state is required to contract biennially for fuel used in the capital, stationery, printing and binding for the different state departments, all such contracts being subject to the approval of the governor, auditor and treasurer. This requirement will necessarily hamper the work of the board of control and economy, which began to operate on January 1, 1920. California At the head of the state purchasing department of California, created in 1915,2 is !a state purchasing agent appointed by and serving at the pleasure of the governor. He receives an annual salary of $4,000 and is required to give bond for $10,000. The purchasing agent has power to appoint a deputy state purchasing agent at a salary of $3,000, a state testing engineer at $2,700 and to appoint and 6x the salaries of three assistant state purchasing agents subject to the approval of the state board of control. He also has the authority to secure such other help as may be necessary for conducting the work of the department. Recently there were thirty-six persons employed and arranged according to the following 1 Secs. 1047-1077 of Code. * Ch. 851, L. 1915; amended by Ch. 187, L. 1919. six working groups: foods and forage; building material, general hardware, machinery and implements; clothing and fabrics, drugs and chemicals, and leather goods; stationery and office supplies; testing laboratory; general stock and store division at San Francisco. The purchasing agent has the power, subject to the approval of the state board of control consisting of three members appointed by the governor, to contract for and supervise the purchase of aH supplies necessary for every state department, commission, board, institution, or official,” except the state university and such funds as may be exempt from the jurisdiction of the purchasing department by unanimous vote of the state board of control. Idaho In connection with the code reorganizing the state administration, the 1919 legislature of Idaho passed a law3 which imposes upon the department of public works the duty of purchasing all supplies for the state departments and institutions. The purpose of the law, says the preamble, “is to secure the orderly and economical administration of the business affairs of the various departments and institutions, publicity and fairness in awarding contracts for all supplies and the keeping of accurate cost accounts.” The department of public works, the head of which is appointed by the governor, is given the power to contract for and purchase communication services, fuel, light, water, and all office supplies and equipment for the several state departments; also all provisions, supplies and equipment for the various charitable, educational, penal and reformatory institutions of the state, as well as tools and machinery for state road construction. No definite provi66 3 S. B. No. 147, L. 1919.

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19201 PURCHASING STATE GOVERNMENTS 121 sions are made in the law for the organization of a purchasing division or bureau under the department of public works. Illinois The Illinois civil administrative code of 1917, providing for the reorganization and consolidation of the state administration, created the office of superintendent of purchases and supplies under the department of public works and buildings. The superintendent is appointed by the governor and is directly responsible to the head of the department. He receives an annual salary of $5,000. His work is organized into the division of purchases and supplies and his office force consists of about fifteen persons. Considerable inspecting, analyzing and testing work is done by experts outside of his office, connected either with other code departments or with private organizations. The division of purchases and supplies procures all supplies for the several state departments, except those formerly supplied by the secretary of state; also all supplies for the state charitable, penal and reformatory institutions and normal schools. Michigan A law1 was passed by the 1919 legislature of Michigan, which creates the office of state purchasing agent and provides that the agent be appointed by the governor with the approval of the senate to serve at the pleasure of the governor. He receives an annual salary not to exceed $4,000 and is not to be connected in any way with the sources of the supplies furnished the state. Upon entering office, he must take the constitutional oath of office and furnish bond to the sum of $10,000. 1H. B. No. 61 (H. Enrolled Act No. 199), L. 1919. There is an advisory board attached to the office of the purchasing agent, consisting of nine members chosen from among the stewards of the various state institutions, together with the governor and the food and drug commissioner ex oficio. The members of the advisory board serve for overlapping terms of five years each and receive no compensation for their services. This board is required to adopt by-laws subject to the approval of the governor for the conduct of the purchasing, and to meet with the purchasing agent at least once a month. The purchasing agent may appoint, with the approval of the governor, clerks and other necessary help. The purchasing agent is given the power to purchase all supplies and materials necessary for the maintenance, extension, or operation of all state penal, reformatory, charitable and correctional institutions, except the University of Michigan and the Michigan Agricultural College. These institutions, however, may join with the others in making their purchases. New Hampshire In 1913 New Hampshire provided for the creation of the office of purchasing agent, the agent being appointed by the governor and council for a term of three years at an annual salary of $3,000.2 At the same time a board of control was created, consisting of two persons, appointed by the governor and council for overlapping terms of four years, and the governor ex oficio. This board controlled the state institutions and supervised the work of the purchasing agent. A 1915 statute3 repealed the former law and created a board of trustees of state institutions composed of ten men, two for each institution, appointed by the governor for terms of five years. This * Ch. 140, L. 1913. Ch. 176, L. 1915.

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19% NATIONAL MUNICIPAL REVIEW SUPPLEMENT [Feb. board was authorized to employ a purchasing agent at an annual salary not exceeding $3,000. The purchasing power of this board was extended in 1917 to include the buying of the supplies and materials for all institutions and departments of the state except the state agricultural co1lege.l In 1919 the board was abolished and a separate board of trustees for each institution was substituted.2 The purchasing agent was again made an appointee of the governor and council for a term of three years at a salaryfixed by the governor and council. He is allowed such assistance in the performance of his duties as may be approved by the governor and council. At the present time the purchasing agent is given the power, subject to the supervision of the governor and council, to purchase all supplies and materials for the state institutions, including the normal schools, the state house and the departments quartered in the state house; also for the county institutions upon request of the county commissioners, and for the New Hampshire College of Agriculture and Mechanic Arts and the Soldiers’ Home upon the request of their trustees. New Jersey A New Jersey statute, passed in 1916, vests authority for the purchase of all supplies and materials for all using agencies of the state government in the state house commission, composed of the governor, treasurer and c~mptroller.~ The office of state purchasing agent is created, the agent being appointed by the governor with the approval of the senate for a term of five years at an annual salary of $5,000. He is required to have had practical purchasing experience and to 1 Ch. 119, L. 1917. 2 Ch. 14, L. 1919. 3 Ch. 68, P. L. 1916. give bond for $50,000. His work is under the supervision of the state house commission and he may be removed by the governor at any time for nonperformance of duty. Such assistants may be appointed by the purchasing agent with the approval of the state house commission as are necessary. An advisory board, consisting of one representative from each of the using agencies, is constituted and required to co-operate with the state house commission in determining standards and purchasing methods and to meet with it at least every three months. New York A 1918 law provided for the creation of a central supply committee of seven members, consisting of the state comptroller as chairman, commissioner of education, superintendent of public works, secretary of the trustees of public buildings, chairman of the state hospital commission, fiscal supervisor of state charities and superintendent of state pri~ons.~ This committee is in personnel identical with the commission named in 1917,j to investigate purchasing methods, and which recommended to the legislature the adoption of a purchasing system similar to that of the federal government in Washington City. According to the law the central supply committee was given until July 1, 1919 to organize and consolidate the state purchasing. After that date all materials and supplies used by the state agencies and designated by the committee, excepting those required by law to be purchased for the penal institutions, shall be bought by the committee. The committee, under a provision of the law, has appointed a sub-committee of four members, representing the departments and principaI Ch. 400, L. 1918. Ch. 148, L. 1917.

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19201 PURCHASING STATE GOVERNMENTS 123 institutional groups, which together with the secretary of the committee conduct the purchasing procedure with the approval of the central supply committee. This committee is not concerned with the public printing. Ohio In 1917 the Ohio legislature enacted a law providing for the establishment of a state purchasing department attached to the office of secretary of state, who appoints a purchasing agent for a term not to exceed his own at a salary not to exceed $3,000 /per year.‘ The purchasing agent is required to give bond for $15,000, and may not receive rebates or gifts from dealers under penalty of fine and imprisonment. Such supplies and equipment as may be determined by the secretary of state, the state auditor and the purchasing agent may be purchased by the agent, except supplies and equipment for the state election boards, state courts, institutions under the state board of administration, militia, and agricultural experiment stations. The state educational institutions and the commissioners of public printing are not included. Texas Texas established in 1899 the office of state purchasing agent for the various eleemosynary institutions of the state.2 The purchasing agent was appointed by the governor with the approval of the senate for a term of two years at an annual salary of $2,000. In 1915, the annual salary of the purchasing agent was made $3,000, and the educational institutions of the state were added to those already under his purchasing supervision.3 A law, 1H. B. No. 193 (p. 432), L. 1917. * Ch. 86, L. 1899. 3 Ch. 126, L. 1915. creating a state board of control, was enacted by the 1919 legislature, which abolished the office of state purchasing agent and gave the exercise of his functions to this board.4 The ;board is composed of three persons appointed by the governor with the senate’s approval for overlapping terms of six years at annual salaries of $5,000 each. One of the seven divisions of this board’s work is designated as the division of purchasing, the chief of which is appointed by the board and must have had at least five years experience in purchasing. The purchasing power of the state board of control is extended to all departments of the state government. The board became operative on January 1,19%0,5 when it assumed the duties of the board of public printing, composed of the attorney general, comptroller and secretary of state.6 Vermont Vermont created the office of purchasing agent in 1912.’ The agent is appointed by the governor with the senate’s approval for a term of two years at a yearly salary of $2,500. He is required to execute a bond to the sum of $20,000. It is his duty to purchase all supplies, including printing, fuel, water and light, materials and equipment for all state departments, institutions and officials, except the soldiers’ home and the military department. He may purchase for the soldiers’ home upon request.s A law, enacted in 1919, placed the purchasing agent’s work under the supervision of the state board of control, although the manner of his appointment to office remains ~nchanged.~ Ch. 167, L. 1919. 5 Ch. 4 (first called session), L. 1919. 6 Ch. 84 (second called session), L. 1919. No. 253, L. 1912. 8 No. 202, L. 1919. 9 No. 320, L. 1919.

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134 NATIONAL MUNICIPAL Wgoming The 1919 legislature created a state board of supplies, consisting of the treasurer, auditor and state engineer, with the power to buy all supplies furnished by the state to any department, board or institution, except the state university and the state highway commissi0n.l This board is authorized to hire and flx the salary of a clerk to have charge of all supplies and the office of the board at the capitol. 111-PURCHASING METHODS AND PROCEDURE This section will deal briefly with the legal provisions and practices relating to the purchasing methods and procedure of those states, the purchasing organizations of which have been considered in the preceding section. Consideration will be given to the following points : Determining supply schedules, advertising for bids, receiving and passing on bids, letting contracts, ordering, delivering and inspecting goods, paying for goods, and storing and testing goods. Alabama Under the law the board of control and economy is required to make out an itemized list of proposed purchases and to give notice in at least one daily paper published in Montgomery. It may also give notice in one daily paper in Birmingham and Mobile. The notice must state in a brief general way the nature of the supplies to be bought, also that sealed written proposals to furnish such supplies will be opened at the o6ce of the board on a fixed date, which must be not less than ten or more than twenty days thereafter. Itemized lists of supplies needed must be kept on file at the board's office and be open to any party for bids. 1 Ch. 96, L. 1919. REVIEW SUPPLEMENT [Feb. Contract must be let to the lowest responsible bidder if his prices are reasonable and not greater than the prevailing market prices. The board cannot purchase any supplies from any firm in which a member of the board has a pecuniary interest. It may reject all bids submitted, but must record the reason for its rejection. All contracts for purchases must be approved by the governor. Successful bidders may be required to give bond with a duly authorized surety company to guarantee performance of contracts. The board may adopt such rules and regulations with the approval of the governor as may be required to supplement the foregoing provisions of the law. Each using agency must file with the board by January 1st of each year an inventory of all supplies and equipment in its possession. California The purchasing department makes up supply schedules upon the basis of estimates or requisitions submitted by the various using agencies of the state. All goods purchased by the department are standardized as far as possible and divided into twenty-seven schedules, similar kinds being grouped together for the convenience of dealers. While the newspapers are used as a means of advertising for bids, the department prefers to send schedules directly to prospective bidders. After bids have been received they are tabulated and the awards made to the successful bidders. All contracts and purchases must be approved by the state board of control before being made. Contracts are usually made for three, six and twelve months, the shortest period being more commonly used because of unsettled market conditions. Purchases are of two kinds, namely, contract and non-contract. The purchasing procedure for contract supplies

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19201 PURCHASING STATE GOVERNMENTS 125 is as follows: The using agency makes out a purchase order addressed to the contractor, which designates the quantity, measure, description, unit, cost as per contract of the goods needed, date of delivery, and the fund out of which the order is payable. This order is signed by the executive head of the using agency and is made in quintuplicate-the original is sent to the purchasing agent, who approves it and places it with the contractor; the duplicate is also sent to the purchasing agent, who returns it to the usingagency 51s a notice that the order is placed; the triplicate is retained in the files of the using agency; the quadruplicate is sent to the purchasing agent as a copy for the purchasing department; and the quintuplicate is a copy for the state board of control, which must approve of each contract order before final payment is made. Upon the receipt of the order the contractor ships the goods according to the date set for delivery and forwards invoices in triplicate to the using agency. When the goods are delivered the using agency’s storekeeper checks them up on a blank called report of goods received. This report is then approved by the executive head of the agency and the original invoice is attached to the original copy of the report and it, along with the duplicate and triplicate copies, are sent to the purchasing agent. The quadruplicate copy is kept in the files of the using agency. The purchasing agent checks up the report and returns the triplicate copy to the files of the using agency. When a copy of this report and the invoice, accompanied by a sworn statement of the purchasing department as to the correctness of the claim, is approved by the state board of control the comptroller then audits the claim, draws his warrant for the amount and the treasurer pays the same. In the case of non-contract purchases the procedure is as follows: The using agency sends a requisition to the purchasing agent for the supplies needed, giving quantity, measure, description, amount on hand, estimated cost, and date wanted. This requisition is made out in duplicate, the original copy going to the state purchasing agent and the duplicate copy remaining in the files of the using agency. Upon receipt of the bids, the purchasing agent places an order with the successful bidder for the goods as specified on the request for quotations and as originally speczed on the requisition from the using agency. This order is made out in quintuplicate-one copy, signed by the purchasing agent, is sent to the bidder; two copies are sent to the using agency, one to be signed by the executive head and attached to the invoice for the purchasing department, the other to be retained in the files of the using agency; one copy is retained by the purchasing department; and one copy is sent to the state board of control. The shipping, checking up and paying for the goods are the same as under contract purchase. The purchasing office has a card system for keeping records of the quantities purchased for the various using agencies and the prices paid. The 1919 legislature appropriated $200,000 to the purchasing department to be used as a revolving fund in the purchase of supplies with the approval of the state board of control, the fund to be reimbursed from the appropriation accounts of the using agencies. Prior to this time the department had had a revolving fund of $25,000. The purchasing agent is given the power, subject to the approval of the state board of control, to maintain warehouses and to insure the goods stored therein, the premium to be paid out of the revolving fund and prorated and added to the price of the goods

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126 NATIONAL MUNICIPAL REVIEW SUPPLEMENT [Feb. when shipped to the various using agencies. A warehouse has been established in San Francisco in which non-perishable merchandise needed by the institutions is stored. Branch supply depots have been located in Sacramento and Los Angeles, carrying stationery and office supplies and billing to the offices and departments at cost plus 2 per cent to cover breakage, shrinkage and so forth. The purchasing department maintains two testing laboratories in San Francisco and one in Sacramento. Idaho Itemized lists of supplies on hand and of supplies needed are required under the law to be made by the commissioners of the departments and the superintendents of the state institutions to the department of public works. This department then makes an examination of the supplies on hand and of the additional amount of supplies necessary on the basis of which itemized and classified supply schedules are prepared. Notice must then be given in one or more newspapers of general circulation for at least ten days that sealed bids will be received by the department of public works up to a hed date, that supply schedules are on file for the inspection of dealers at the office of the department, and that bids will be opened at a specified time and contracts awarded to the lowest responsible bidder. Each bid must be accompanied by samples of the supplies to be furnished, which are ample inquantity to be divided and part kept in the ofice of the department and part, in case an award is made, sent to the superintendent of the institution receiving the supplies. All bids must be accompanied by a certified check on some responsible bank, payable to the treasurer of the state, equal in amount to 5 per cent of the bid, which check is returned in case no award is made. The bids must include the delivery of the supplies to the departments and institutions for which they are purchased. The department of public works is required to record an abstract of all bids made for furnishing supplies and equipment, giving the name of the bidder, terms, and prices, and to keep this on file, open to public inspection, until the end of the contract term to which the bids relate. Each bidder has the right to be present, either in person or by agent, when the bids are opened and to examine all bids. The department has the right to reject any and all bids and to advertise again for bids. Contracts are not to be entered into for a longer period than one year and are to embody such conditions as the department of public works may determine. Quality and price being equal, preference is to be given to goods produced or manufactured within the state. Contracts when transferred to other dealers are void and penalty attaches to such action. Perishable supplies are not purchased under state contract, but the institutions are allowed to buy them under proper regulations and must render an itemized account for same to the department of public works. Emergency purchases may be made in open market and accounted for in a similar manner. Departmental and institutional stores are subject to inspection at all times by the department of public works. This department must keep a complete set of books showing all purchasing transactions with the various using agencies. It must also take a complete inventory of all state property. Illinois The legal provisions relating to the purchasing procedure of the division of purchases and supplies in the department of public works and buildings are

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19201 PURCHASING STATE GOVERNMENTS 127 as follows: Supplies for the several departments, except perishable goods and emergency needs, must be purchased in quantities and contracts therefor must be let to the lowest responsible bidder. Advertisements for bids must be published for at least three days, the fist and last of which publications must be at least ten days apart, in one or more newspapers of general circulation published in each of the seven largest cities of the state, determined by the most recent federal census; and, also, in one “secular English newspaper” selected by the department by competitive bidding, designated as an “official newspaper” and to continue so for one year after its selection. The proposals must be opened publicly on the day and hour and at the place mentioned in the advertisement. Any and all bids may be rejected and re-advertisement made. The department of finance is required to prescribe uniform rules governing specifications, advertisement for bids, opening of bids and making of awards; also, to keep a catalogue of prices current and to analyze and tabulate prices paid and quantities purchased. The purchasing procedure as developed in practice is briefly as follows: The division of purchases and supplies obtains the quantities of supplies desired from requisitions made by the several using agencies. These requisitions are made out in triplicate and when approved by the director of the department in which the using agency is a division, one copy is filed with the agency, one with the approving director and one is sent to the division of purchases and supplies. The requisitions for supplies are brought together by the superintendent of purchases and supplies, and are classified, standardized and arranged in schedules. Upon advertising for bids, the score or more of classes are grouped under three main divisions and bids are requested for the items of the several classes of each division independently of the other divisions. Bids may be received for one or all institutions on any or all items. All bids must include transportation charges. Usually bidders are required when submitting quotations to send samples to match standards specified. All samples, except perishable ones or those upon which contracts have been let, are returned to the bidder at his expense after the awards have been made. After the bids have been publicly opened upon the day and hour advertised they are tabulated upon sheets for this purpose. Awards are made upon the basis of items and other things being equal preference is given to goods produced in Illinois. Contracts for supplies usually cover a three months period, and provide that the quantity actually used will be within 10 per cent of the quantity contracted. Following the awarding of contracts the division of purchases and supplies issues a purchase order based upon the requisition for supplies. This order is made out in quadruplicate, one copy going to the contractor, one to the using agency, one to the department immediately in control of the using agency, and one is retained by the division of purchases and supplies. Goods are shipped immediately upon receipt of the order, at a stated future time, or upon notifkation of the using agency. Invoices in triplicate for all goods must be mailed by the contractor to the using agency. When received, the goods are inspected; if they fail to conform to specifications they are rejected and open market purchases are made to meet the requirements at the expense of the contractor. Bills are promptly paid and advantage is taken of all discounts. In case the using agency is permitted to make purchases or to obtain com-

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128 NATIONAL MUNICIPAL REVIEW SUPPLEMENT [Feb. petitive bids an authorization is issued in triplicate by the superintendent of purchases and supplies. If the using agency places an order for delivery a blank for this purpose is required to be made out in triplicate. Michigan The provisions of the law relating to purchasing procedure are as follows: Estimates of supplies needed must be furnished to the purchasing agent by the stewards or executive officers of the various institutions at such times as may be designated by the advisory board. These estimates are open to public inspection when filed with the purchasing agent, and must state as far as possible the quantity, quality and brand of articles needed. The purchasing agent is then required, with the approval of the advisory board, to standardize all supplies purchased, and in advertising for bids to codne himself to the standards so set up. Samples may be required to accompany bids. In awarding contracts, all things being equal, preference is given to home products. The purchasing agent, with the approval of the governor, may require a bond for not less than one-third the amount of the bid to be filed with the secretary of state as a guarantee for the execution of the contract. All bills of lading and claims for shortage and breakage must be filed with the purchasing agent. Invoices in triplicate must be made out by the contractor, one copy being mailed to the purchasing agent and the other two to the steward of the institution to which the goods are shipped. When the goods are received if the steward finds they do not come up to the sample he may reject them. If goods are satisfactory, the steward transmits to the purchasing agent a certified copy of the invoice, which the purchasing agent examines and in turn transmits to the state auditor, who draws his warrant for payment upon the state treasurer. Emergency purchases may be made, with the consent of the purchasing agent, in open market. The purchasing agent and the advisory board frame rules for the purchase of perishable goods by the institutions. New Hampshire The law requires the purchasing agent to make all purchases by competitive bidding, where in the judgment of the governor and council it is practicable. It also authorizes the governor to set aside in the state treasury a working capital for the prompt payment of bills contracted by the purchasing agent. Two years ago this capital amounted to $45,000. In practice, the institutions and departments submit to the purchasing agent estimates of their supply needs on requisition blanks furnished by the agent. These are arranged by the purchasing agent in the form which in his judgment will secure the most advantageous bids and are mailed directly to dealers capable of supplying the goods. Since dealers of Boston and New York supply a large part of the goods used, advertisements in local newspapers are not used. Contracts are let for different periods, but not to exceed one year. Delivery orders based upon the requisitions, are sent to the contractors by the purchasing agent. Invoices must be submitted to the using agency in triplicate. When the goods have been received and approved the original and duplicate copies of the invoice are sent to the purchasing agent and the triplicate copy is retained in file. The purchasing agent examines the invoice, retains the duplicate copy and approves the original copy, which goes to the state treasurer for payment. The invoices for a particular institution are classified,

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19201 PURCHASING STATE GOVERNMENTS 129 analyzed and posted in a record book. At the end of each month an analysis of the payments shown by this book is forwarded to the head of the institution. New Jersey The law provides that all supplies must be contracted for and purchased by authority of the state house commission. This commission has power to maintain warehouses and to constitute laboratories. It also has power, the advisory board co-operating, to establish standards of quality. Using agencies may be authorized by the commission to make open market purchases whenever deemed desirable. It is the duty of the purchasing agent to prepare from detailed applications submitted to the commission by the various using agencies schedules of all needed supplies and to submit them to the commission for its approval. After the schedules have been approved, the state house commission must requisition the comptroller for the amount of money estimated to be necessary to defray the cost of the schedules, indicating the appropriations against which the proposed purchases will be charged. The comptroller must approve this requisition, unless it appears that the free balance of any appropriation is not sufficient to cover the charge proposed against it, in which case he rejects that part of the requisition and approves the remainder. The purchasing agent must then arrange the schedules in the manner best calculated to attract competition and advantageous prices. All purchases must be made upon such schedules, and contracts must be executed with vendors. The purchasing agent must apportion expenditures among the using agencies in proportion to the purchases they have made and certify the same to the comptroller. All bills are paid by the state treasurer upon the comptroller’s warrant. In actual practice the requisition by the state house commission upon the comptroller for the amount of money estimated to be necessary to defray the cost of the schedules has been dispensed with as useless and a requisition is made upon the comptroller after the contracts are let and the amounts to be spent are definitely known. A “hand book showing the operation of chapter 68, P. L. 1916” (purchasing law) was got out by the state house commission at the time the purchasing system was installed, which outlined an elaborate and detailed plan of purchasing procedure. The plan has since been considerably revised. At the present time the using agencies submit detailed applications for supplies to the purchasing agent, who makes out schedules upon the basis of standardized specifications and, after approval by the state house commission, mails them to dealers asking for bids. All bids must be submitted to the purchasing agent by a specified date, accompanied by a small deposit and in most cases by samples of the goods to be furnished. Awards are made upon the basis of item bids, which bids must include transportation charges. After the awards have been made the samples and deposits of the unsuccessful bidders are returned and the successful bidders are required to execute contracts and bonds in triplicate copies, one copy each for the purchasing agent, statecomptroller and contractor. Following the contracting, the using agency sends a requisition for supplies to the purchasing agent, who thereupon places an order with the contractor for the delivery of the goods to the using agency. Upon delivery the goods are inspected by the storekeeper and a certified copy of the invoice sent to the purchasing agent, who checks it with

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130 NATIONAL MUNICIPAL the order and sends it to the comptroller for payment. The storekeeper may reject all goods not found satisfactory upon examination. Provisions are made for emergency and nearby purchases, the using agency making such purchases upon authority from the purchasing agent. A central storeroom has been established in the state house, which takes care of all supplies for the various state departments located at the capitol. No state warehouses have yet been established. A revolving fund of $250,000 has been provided and is used by the purchasing agent to make seasonal purchases, which are held in stock until desired by the various agencies. New York Under the law the committee is required to make an annual classified schedule with formulas and speciiications of all materials and supplies to be purchased on joint contracts. In order to assist the committee in making up this schedule, the using agencies are required to submit to the comptroller between January 1 and March 1 of each year a list of the estimated quantities of materiafs and supplies, of such character and classes as the committee may designate, that will be required for the next ensuing fiscal year. These lists, after being standardized as far as possible, are to be consolidated by the committee into the annual classiiied schedule, which is to be used as a basis for soliciting bids. Contracts may be let, not exceeding one year, to the lowest responsible bidder, quality and conformity with the specifications being considered. All bids may be rejected. The committee may use its discretion in requiring a bond for the faithful performance of each contract. Immediately upon the execution of the contract the comptroller must notify each using agency for which any REVIEW SUPPLEMENT [Feb. materials and supplies have been included and must state the contract prices of such articles. All purchases are to be made for cash, or credit not exceeding sixty days’ time. Provisions may be made for emergency purchases. In practice, the sub-committee meets from time to time, prepares the specifications, advertises for bids, and awards the contracts subject to the final approval of the statutory members of the committee. Contracts were made in July 1919 for six months covering office supplies for one hundred and sixty-six state agencies. Bids were accepted upon the item basis for all using agencies, and were required to be accompanied with a certified check for 5 per cent of the total amount of the bid. In some cases samples were required. Only approximate quantities were named in the contracts, and other things being equal preference was given to bidders resident of the state. A bond equal to 25 per cent of the totaI amount of the contract was required. Using agencies place their orders directly with the contractor and supplies are shipped to them prepaid. Ohio The law requires the purchasing department, upon determining the kinds of supplies it will purchase, to notify the using agencies by sending them a printed list of the same, and the using agencies must thereafter secure these supplies through the purchasing agent except when special permission is given to obtain them otherwise. The purchasing agent must buy supplies by competitive bidding. Notices, stating time and place bids will be opened, conditions and terms of proposed purchase and itemized list of supplies and quantities needed, must be sent by registered mail to dealers at least fifteen days before the day set for opening the

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19201 PURCHASING STATE GOVERNMENTS 131 bids and the postoffice receipts of the mailing of such notices filed in the purchasing agent’s oEce. At the same time a copy of such notices must be posted upon the office bulletin board of the purchasing agent. Any dealer may have his name and the supplies handled by him listed with the purchasing department and the purchasing agent must send a notice for bids to every dealer so listed. A copy of each bid must be filed with the state auditor. The purchasing agent may require a bond with any contract for supplies. Contracts are awarded to the lowest and best bidder on each item, and the purchasing agent may accept or reject any or all bids. All using agencies must make requisition for supplies upon the purchasing department, using the forms prescribed by the state auditor. The purchasing agent is required to make monthly statements to using agencies of goods furnished them, and they in turn issue vouchers to the state auditor, who draws warrants for same and the money is deposited in the state treasury to the credit of the supply purchasing fund of the purchasing department. The purchasing agent is authorized to establish a state exchange department to take over on inventory supplies not needed by any using agency which may be requisitioned by other agencies or sold in open market. Supplies have not been standardized and invitations to bid are made up in quintuplicate copies, one copy of which is filed by the purchasing agent, one posted on office bulletin board, and three sent to prospective bidders with instructions when bidding to return one to purchasing agent, send one to the state auditor and retain one copy. The purchasing department has a storeroom in the state house which supplies the departments located at the capitol. A requisition for supplies is made out by the using agency in quintuplicate, one copy going to the auditor, two to the purchasing agent, one to the storeroom, and one being retained by the agency. If goods are not in the storeroom, or are shipped directly to the department by the vendor, the purchasing department makes out a purchase order in quadruplicate, one copy going to the vendor, one to the receiving clerk, one to the state auditor and one being retained by the department. Vouchers are made out in duplicate and one copy with invoices attached is presented to the state auditor for payment. Texas The legal provisions relating to purchasing procedure authorize the state board of control through the chief of its division of purchase to contract for all supplies, save those strictly perishable, for one year beginning April 1 annually. Advertisements for bids must be run in at least four of the leading papers of the state for a period of four weeks, and shall state the nature of the supplies needed and the conditions of bidding. The board may purchase for a period of three months if found cheaper, or it may reject all bids and buy in open market. Other things being equal, bidders, having an established business in the state, are preferred. All bids must be accompanied by a certsed check in the amount fixed by the board, and also samples of the goods to be furnished. The successful bidder upon entering into contract is required to furnish a bond equal to one-third of the amount of his bid. Invoices for all sales are required in triplicate, one copy to be sent to the board of control and two to the storekeeper of the using agency. When the goods are received the storekeeper inspects them and transmits one of the invoices certified to the board, which checks and transmits it to the comptroller, whereupon a warrant is drawn

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13% NATIONAL MUNICIPAL REVIEW SUPPLEMENT web. on the treasury and the bill is paid. In cases of emergency institutions axe permitted to make purchases. It is not known at time of this writing just what forms and methods are used by the state board of control, which became operative January 1, 1920. Probably it has adopted those used by the office of state purchasing agent, whose duties it assumed. Vermont The law requires the purchasing agent to advertise for bids in the manner prescribed by the board of control by giving notice in at least two daily papers published in the state. The board approves all contracts for supplies. It may reject all bids and require the purchasing agent to readvertise, or it may permit the purchasing agent to buy in open market. In practice, whenever a using agency is in need of supplies the head of the agency makes out a requisition in triplicate on the purchasing agent giving the name and description of the articles, the quantity required, the date needed, the quantity on hand, and the last purchase price. The purchasing agent, upon receipt of the requisition, places an order with the contractor for the supplies needed and has the goods shipped direct to the using agency, while a bill for the same is sent in triplicate to the purchasing office. The order is made in quadruplicate, two copies going to the using agency for checking purposes when the goods are received. Newspaper advertisements for bids are not used unless the amount of goods to be purchased exceeds $500, the result being that nearly everything is purchased by competitive bidding on specifications mailed directly to dealers. In case of emergency, goods are bought and the head of the using agency then notifies the purchasing agent of the purchase and asks his approval of the same. Wgoming The law requires all using agencies to submit to the state board of supplies by November 1 of each year detailed estimates of needed supplies. The supplies are to be classified for convenience of dealers. The board is required to advertise annually during November in at least three newspapers of the state, no two of which are in the same county, for bids on supplies beginning January 1, following. Advertisements must state the time and place proposals will be opened and that specifications will be supplied to prospective bidders by the secretary of state. Specifications must state the nature, kind, quality and estimated amount of supplies needed. Each bidder must accompany his proposal by a certified check equal to ten per cent of the amount of the bid. Awards are made to the lowest responsible bidder for each class of goods. The successful bidder at the time of entering into contract must furnish bond to the amount specified by the board. Failure to do so invalidates the contract. The board has the right to reject all bids. IV-OPERATION OF STATE PURCHASING SYSTEMS Of the twelve states having fairly well centralized purchasing systems, the systems of only six, namely, California, Illinois, New Hampshire, New Jersey, Texas and Vermont, have operated long enough to warrant a brief statement in each case of the volume of business, the operating cost of the system, and the saving to the state. California Since July 1,1916, the state purchasing department has been buying all sup-

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19.201 PURCHASING STATE GOVERNMENTS 133 plies for ninety-six departments and institutions of the state. During the two years ending June 30, 1918, the total purchases of the department amounted to $8,320,385, with a saving to the state of approximately $2,000,000. The total cost of operating the department for the two years, including equipment, was $130,248, making a percentage of cost to purchase of 1.45 per cent.’ Illinois During the year ending June 30, 1918, the division of purchases and supplies made and supervised the purchase of supplies amounting to $4,908,875. The expense of running the division for the same period was $28,781 thus making the ratio between the total purchases, and the cost of operating the division .58 of one per cent. Mr. T. G. Vennum, acting director of the department of public works and buildings, says: “The work of the division of purchases and supplies is one which, by reason of the entire lack of spectacularism of all purchasing work, might be overlooked for particular commendation. Yet on the purchasing agent of any large businesseven one transacting one-thousandth as much business as the state of Illinois -depends, to a great extent, the success of the enterprise. . . . Suppliers often study carefully to make the state pay a long price where possible, and only conscientious skill can offset the skill of the supplier. Henry H. Kohn rounds out a year as head of the division of purchase and supplies with a record of remarkable work. Mk. Kohn states the advantages of centralized purchasing as follows: One year’s experience has taught this division (1) that centralized purchasing makes available 1 Second Report of Purchasing Department of Caliiorriia, November 1,1918. aReport of the directors under the CiviI Administrative Code, 1918, pp. 165 and 174. to the state the services of experts in buying through co-ordmation with the specialists of the various divisions; (9) that purchasing in large quantities instead of small secures uniformity of price and quality for the same article consumed by the different divisions; (3) that it centralizes the point of contact between bidders and the state; (4) that it locates responsibility for determining price; (5) that it establishes an automatic check over deliveries in so far as supplies and materials bought by this division are received and checked by the divisions which consume them; (6) that it prompts the establishment of standards for various classes of supplies consumed by the divisions; (7) that the taking of discounts invites prompt deliveries, lower quotations and reliable competition.* New Hampshire According to the latest available information the annual purchases of the purchasing agent amount to approximately $675,000 while the cost of conducting the work is about ’$8,000.3 This makes the cost of operating equal to 1.2 per cent of the total volume of business done by the purchasing agent. New Jersey For the year ending June SO, 19118, the purchasing department placed orders for supplies amounting to $2,602,570.4 The operating expense of the department for the same period was $22,579, or a ratio of operating expense to volume of business of .98 of one per cent. Texas The volume of business done by the state purchasing agent during the past four years has averaged about $2,000,000 per year. The expense of conducting the purchasing agent’s office during 1918 amounted to $9,980, which is approximately one half of one per cent of the total purchases. The saving to a Biennial Report of Purchasing Agent, June 4 Report of State House Commission, June 30,1916. 30,1918.

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134 NATIONAL MUNICIPAL REVIEW SUPPLEMENT [Feb. the state by centralized purchasing for the past four years is estimated at almost a million dollars.‘ However, upon this record and with an experience extending over twenty years, the 1919 legislature saw fit to abolish the office of state purchasing agent and to place the purchasing functions under the newly created state board of control. Vermont The total annual purchases made by the purchasing department amount to approximately a quarter of a million dollars. The cost of maintaining the department is about two per cent of this amount.2 V--CONCLUSIONS A brief summary of the general principles involved in the organization and procedure of the centralized purchasing systems of the twelve states, which have already been discussed at some length, may be of value to those interested in the subject of state purchasing. There have developed four distinct types in the organization of the state purchasing agencies, which are in the order of their efficiency as follows: (1) Division of a department under reorganized and consolidated administration; (2) independent department headed by single officer; (3) board of control exercising purchasing functions; and (4) board of ez oficio members with purchasing powers. The purchasing systems of Illinois and Idaho are examples of the first type. In both cases purchasing is placed under the department of public works. Responsibility for the work is fixed, and full co-operation with other departments under the consolidated administration is estab- ‘Nineteenth Annual Report of the State Purchasing Agent, 1918. 2 Report of the Purchasing Agent, 1916. li~hed.~ Examples of the second type of purchasing organization are those of California, New Jersey, Michigan, New Hampshire, Ohio and Vermont. In these states responsibility for purchasing is largely fixed in a single person, called the purchasing agent, who heads a department practically independent of other state departments and agencies. This seems to be the form of organization for efficient purchasing work best adapted to those states which have not reorganized and consolidated their administration. In every case, except Ohio, the purchasing agent is appointed by the governor. In Ohio the purchasing agent is responsible to the secretary of state. In California and Vermont he is under the supervision of the state board of control, and in New Jersey he is under the state house commission. The third type, where the purchasing is left to the state board of control, is found in Alabama and Texas. The board of control is an attempt to consolidate the administration, especially of state institutions, looking toward more efficient management. However, it at once introduces board government, which for purely administrative purposes is regarded as inefficient, unbusinesslike and irresponsible. But even setting aside these objections, a board of control, burdened with fiscal, administrative, managerial and quasi-legislative functions, can hardly be expected to initiate and carry out an efficient systemof purchasing. Examples of the fourth type of purchasing organization are those of New York and Wyoming. In these states the authority to purchase is vested in boards composed of state officers serving ex o$icio. The members of such boards are charged with numerous other duties and, therefore, have very 3 “Administrative Consolidation ‘in State Governments,” supplement to NATIONAL MUNICIPAL REVIEW, November 1919.

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19%0] PURCHASING STATE GOVERNMENTS 135 little time to give to the purchasing work. The work, if it is to be done, must be delegated to some person or koup of persons. This is the case in New York where the purchasing work is delegated to a sub-committee, and responsibility for the results is thereby practically dissipated. In the development of efficient purchasing methods and procedure, Illinois and California have probably gone further than the other states. All state purchasing agencies make up schedules of supplies from requisitions or estimates furnished by the using agencies, but not all of them attempt to standardize the supplies used. Bids are secured by employing one or all of three methods of advertising, namely, advertising in newspapers, posting schedules on bulletins, and mailing schedules directly to dealers. In most cases only sealed bids are received and must be accompanied by certified checks to insure good faith. Awards are made to the lowest responsible bidder, and usually preference is given to local dealers or home products. Contracts are usually entered into for periods of three, six, or twelve months and bonds are required to guarantee their performance. Practically all of the purchasing agencies order the goods to be delivered directly to the using agencies. California is beginning to develop a system of warehouses, also a staff of testing experts to receive the goods. The important function of inspecting and testing goods is usually left to storekeepers and stewards of using agencies, who do not have the training or equipment for the effective performance of their work. Standard specifkations avail little unless there are thorough inspections and tests of all goods received. Several state purchasing agencies are very slow about making payment for goods, and hence do not take advantage of discounts. The Illinois system is perhaps the most efficient in this respect. Revolving funds have been provided for several of the state purchasing agencies, thus enabling the agencies not only to make quick payments but to purchase goods out of season and store them for future consumption. When using agencies buy their own supplies, they frequently spend more than is necessary, sufficient scrutiny cannot be exercised on the part of the state, and favoritism is often shown in the award of contracts. If properly managed, there is no doubt that a centralized purchasing system for state agencies will prove more efficient and economical than the old method of each using agency buying its own supplies. This statement is borne out by the fact that none of the states which have adopted a system of centralized purchasing has discontinued it, only the organization to administer it has been changed in one or two cases. The operation of a centralized purchasing system ought to contribute very effectively to the success of a state budget system by establishing control over all expenditures for supplies.