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National municipal review, December, 1925

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National municipal review, December, 1925
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National municipal review
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National Municipal League
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National Municipal League
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Volume 1, Issue 1

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NATIONAL
MUNICIPAL REVIEW
Vol. XIV, No. 12 DECEMBER, 1925 Total No. 114
EDITORIAL COMMENT
William Allen White A little while ago the «n the Budget nationally-known ystem editor of TheEmporia
Gazette wrote us a letter in which he made the following comments on the budget system:
I’ do wish you to know, and your readers to know that I think, at this time, one of the vital issues of our politics is the budget system. For thirty years in American politics, we have been going through a great bloodless revolution, changing our attitude toward government in many important areas, turning out comiption-ists in cities and states, breaking machines local, state and national, and now we are in the position of an army that has just won a decisive victory. We must straighten out our lines. We must mop up. We must entrench. And the only way to correlate all government of life is to install the budget system. It will be the victory of the people in their fight for self-government which began in the nineties, a sure and lasting victory.
Mr. White has so dramatized the campaign that we are ready to join forces with him and start to “dig in” for the final battle.
Recent Municipal Elections
The municipal contests decided at the election on November 3 largely overshadowed all others. In New York City, James J. Walker, the Tammany candidate, was elected mayor over Frank D. Waterman, the Republican-Citizens candidate, by a
plurality of more than 400,000 votes. The victory was complete and overwhelming; practically every elective office, from the highest to the lowest, in New York City was filled by a Democrat.
The Boston election was perhaps the most surprising. Ten candidates ran for mayor. Among these were several brands of Democrats and one Republican. The Republican, Malcolm E. Nichols, was elected by a plurality of 21,000 votes. He is the first Republican mayor of Boston to be elected in 18 years. Nine of the 22 councilmen are also Republicans. Mr. Nichols is regarded by those who know him as an educated and competent man. The worst “charge” against him is that he was bom in Maine. The Good Government Association and many Democrats favored him in the election.
In Buffalo Mayor Frank X. Schwab was re-elected. He received the largest vote ever polled by a municipal candidate since the commission form of government began in 1914. He beat by 22,000 the candidate believed to be blest by the favor of the K. K. K. In Detroit Mayor John W. Smith, a Catholic, was re-elected by a large majority over the avowed candidate of the Klan. In Louisville, Kansas City, Pittsburgh and Indianapolis there were hot contests for the office of mayor. Kansas City held its first election under
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NATIONAL MUNICIPAL REVIEW
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the new manager charter. There were also spirited elections in Cincinnati and Cleveland, which are noted below.
*
P. R. Elections in On November 3 the Cleveland and second councilmanic
Cincinnati election under P. R.
was held in Cleveland. Twenty-five Councilmen were selected from four districts in which a total of 47 candidates ran. Nothing unusual seems to have developed as a result of the election; many of the old councilmen were reelected. Of the election, the Cleveland Plain Dealer for November 5 says:
The old bi-partisan coalition retains control of the council as a result of the election, but the public has reasons for oowideane that it win not interfere with the proper functioning of the manager’s office. Without being either a candidate or an advocate in the campaign Manager Hopkins found him—W the leading figure in the fight. He emerges from it stronger than before.
In Cincinnati the first election for councilmen was held under the new city manager charter. Nine councilmen elected at large by P. R. were chosen from a total of 39 candidates. The majority of those elected were candidates of the city charter committee, which sponsored the new charter. The Enquirer, a Cincinnati paper which is unfriendly to the idea of P. R., said of this election:
On the ballot containing the names of the 30 MwrfidaUs for members of council, the voters were asked to vote not with crosses, but by grading numerically their favorite candidates up to nine, in accordance with a highly complicated system of vote-recording which, when all is said and done, is only decipherable by a trained auditor, a certified accountant, or an expert mathematician. What congenial mental exercise the mathematicians and accountants must have had yesterday in casting their votes!
*
Hew York The adoption of the
Amendments four amendments to
Adopted the New York state
constitution is a victory for Governor
[December
Smith. Prior to the election, he made a speaking tour of the state in behalf of these amendments. Although all the amendments had been accepted by a Republican legislature, the up-state Republican organization openly opposed the two amendments which authorize bond issues, and carried on what Governor Smith called a “whispering campaign “against the other two, which provide for the reorganization of the state administration and the judiciary system. Several leading Republicans, however, approved the two reorganization amendments and the bond issue of $300,000,000 for grade crossing elimination. The strongest fight was waged over amendment number one, which provides for the issuance over a period of ten years of $100,000,000 for a state building program. This amendment received an affirmative majority which may prove to be less than 30,000 when all the returns from up-state are in. The affirmative majority for each of the other amendments is estimated to be more than 100,000. New York City piled up a large majority for each of the amendments, but this was cut down by the negative vote of the, upstate section.
♦
Rochester Adopt. ^ Pla“
the Manager Plan was adopted by
Rochester (N. Y.) by a majority of some 13,000 votes. This was the result of a hard fought campaign in which the local Bureau of Municipal Research and the City Manager League did valiant service. The opposition made capital of the fact that only recently the city manager plan had been defeated in both Schenectady and Yonkers. The leading papers of Rochester supported the proposed plan and during the week preceding the election carried front page articles explaining the city manager charter. This charter will become fully effective on


1925]
EDITORIAL COMMENT
713
January 1, 1928. We hope to have an article telling about this campaign in the next issue of the Review.
*
Personality in Heretofore we have
Municipal been too much con-
Admimstration cemed with the form
and methods of municipal administration. We have largely overlooked the human elements. The results attained in the administration of the complex problems of present-day city government depend to no small extent upon the personality and ability of the administrator. This is especially true under the city manager plan, where the manager is directly responsible for the success or the failure of the administration.
With these things in mind, we asked Norman Shaw of the Cleveland Plain Dealer to write an article on “Cleveland’s City Manager.” This article appears in this issue of the Review.
officer of the government could touch it. “The power to ‘dock the pay’ of any government officer rests with Congress alone,” said the Court. In holding that the comptroller general had no power to withhold pay, the Court called attention to a decision of a federal circuit court which reminded a government accounting officer that “there can be no such autocrat.”
To compensate somewhat for the loss of the Cox case, the Court of Appeals rated Mr. McCarl as winner in two minor cases in which the rulings were questioned.
Mr. McCarl has recently become the stormy petrel of the government service. His decisions refusing to sanction payments by federal officers have caused much discussion. It is likely that he will be the subject of much criticism when Congress meets. Several suits have been entered against him.
*
„ The District of Co-
Curtails Comptroller lumbia Court ofAP' General’s Power Peals has recently
decided that J. Raymond McCarl, comptroller general of the United States, is not any longer the judge, jury and executioner in cases where he claimed the right to deduct from the pay of naval officers to reimburse the government for alleged erroneous allowances drawn by these officers.
The case came before the Court of Appeals on Mr. McCarl’s appeal from an injunction order signed by Justice Hoehling of the District of Columbia Supreme Court, in a suit filed by Commander John F. Cox, U. S. N. Commander Cox is the first of about 100 naval officers to take issue with the comptroller general. The Court upheld the declaration of Justice Hoehling that Congress said how much pay a naval officer should receive, and that no
As the English New York City’s
See Father mayoralty campaign,
Knickerbocker which resu]te election of James J. Walker by a plurality of 401,000 votes, is discussed in The Municipal Journal, a London publication. The point of view of our English onlookers in this instance is worth noting; it should help us to see ourselves as others see us. Tammany Hall and the political elements of the city are vividly portrayed. The political conflict between the city and upstate New York is sketched into the picture. Finally the composite picture of the city is presented thus:
The city of New York presents many complications and difficulties. While it is the greatest city in America, it is not an American city. It is the largest negro city in the world; it is the greatest Jewish city; it has more Germans than some German capitals; and it has more Italians than Naples. All races of the world are represented in New York. It is the melting pot


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NATIONAL MUNICIPAL REVIEW
through which Americans in the making must pass. The majority of the population still remain foreign in language and sentiment, and are unaccustomed to popular elections and democratic institutions.
♦
Court Decision End. Thf C°urt °\ Err0™ New Jersey Zoning 411(1 Appeals, the court of final resort in New Jersey, has ruled adversely on zoning regulations. Since this ruling, the communities of that state regard their zoning system as having been practically cast into the scrap heap. The Court’s ruling was made up pretty much along the lines the Associate Justices had laid down. The right of a person to put upon his lot any building that is not a legal nuisance or a menace to the health or safety of the community was reasserted. The Chief Justice ran in one point that had not been so sharply stated before in the discussions. He said that the purchase of a piece of property and the erection of a building upon it did not give the purchaser the right to say what kind of structure some future purchaser must put on a nearby site; that the buyer takes the chances in the buying and is
only unfortunate if he loses in the game.
*
Federal Use of City An investigation con-and County Jails ducted by Hastings
H. Hart of the Russell Sage Foundation shows that the United States government with no jails of its own is using one-third of all the city and county jails in the country without paying rent, and is boarding out more than 7,000 prisoners—including many who are merely awaiting trial—to local jails over which the federal government has no control. Many of these jails are extremely overcrowded and very unsanitary. During the past year conditions were studied in the 893 city and county jails and work-houses in which federal prisoners are kept. Dr. Hart suggests, as a remedy, that the federal government establish a jail system of its own, each jail to serve a territory with a radius of 50 miles, beginning with the points on the Canadian and Mexican borders where there is at present the greatest congestion of federal prisoners, and extending the system until the government has jails of its own iu all thickly settled sections of the country.


CLEVELAND’S CITY MANAGER
BY NORMAN SHAW
In reconstructing city governments we have been concerned chiefly with form and methods; we have largely overlooked the human factors. This article tells how the personality of the manager dominates the city affairs of Cleveland, even to the extent of reversing the theory of the manager form of government. :: :: :: :: :: ::
About five years ago the city of Cleveland discovered itself growing weary with the continued unhealthy state of municipal organization and bad government which had clouded its civic horizon for nearly a decade. The citizens stopped for a moment to look abound, read the ledger and then the horoscope, thought through the city’s future, decided that the only remedy would be to make a radical change, and voted in a great experiment.
“We shall try the latest thing in municipal government,” city leaders said, “city manager, proportional representation, a non-partisan council, and all the trimmings. We shall clean house thoroughly, reorganize on a business basis, get a capable and experienced executive for a manager, pay him as much as the mayor of New York, give him a big car and a chauffeur, and see what happens.”
The trial was on. In November, 1921, the new charter, handiwork of Augustus R. Hatton of Cleveland and backed by the independent Committee of One Hundred, was passed with a fair majority. Two years later the first council was elected, under the Hare system of proportional representation. It elected William R. Hopkins of Cleveland, railroad man and real estate operator, city manager, and he took office on January 1, 1924.
ACCOMPLISHMENTS OF THE CITY MANAGER
What has been the result? In the first year the city saved over half a
million dollars from its income, expanded all services, broke street paving records and did it at a lower cost, brought the mall project for a civic center nearer completion, removed lakefront eyesores, rehabilitated the parks, greatly increased the police force, increased and modernized its equipment, and created a women’s police bureau. The second year produced an air field second to none in the country, great advancement in union station plans, organization of a metropolitan council, further increases in paving, street widening, and building, with financial records of the twelve months yet to be completed.
More than that. Badly run down city property and seriously disorganized personnel have been rehabilitated. A distinctly new energy pervades the entire municipal organization, and a civic spirit unknown since the days of Tom L. Johnson has in many ways made itself felt.
Commenting on this first year, the Cleveland Plain Dealer said: “Wlule saving is important, most citizens will agree that a far higher compliment is to be found in the quantity of constructive work done during the twelve months. ” The year, says a bulletin of the Citizens’ League, of which Mayo Fesler is director, “presents a picture of real economy and efficiency which speaks strongly for the success of the city manager’s administration . . . Mr. Hopkins and his directors have had a better record of actual accomplishment than can be attributed to any
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NATIONAL MUNICIPAL REVIEW [December
716
administration in this city in the past fifteen or twenty years.”
The two years, then, have proved city managing an overwhelming success, and the man who is first of all responsible for it is William Rowland Hopkins. Two years ago he found himself suddenly pulled from private life into the whirl of city politics, given $40,000,000 a year to spend, a government to reorganize, and a million sceptical townsmen to satisfy as to every step he took. His triumph was immediate and complete, not only in the practical way outlined above, but in winning for himself and for the theory of government he represents, the highest confidence and praise.
THE MANAGER AND THE LATEST ELECTION CAMPAIGN This fall when the second council under the new city manager charter came to be elected, not a campaign issue was to be found, so completely had the personality and success of the manager overshadowed every phase of municipal politics. With- scarcely an exception, the candidates for office sought re-election on the basis of the success of the Hopkins administration, and hardly a word was spoken against him. As long as the candidate declared for Hopkins, no further questions were asked by the voting public.
The Democrats and Republicans, who were for all intents and purposes merged in one organization, neither endorsing a full slate of candidates, laid low during the campaign, generally refused to speak, declare their programs, or enter public discussions. They tried to return to office because they had elected Hopkins. “Recommend Hopkins? By all means,” said Maurice Maschke, county Republican chairman, speaking of his endorsements. “Didn’t we choose him?” To which the Democrats replied a week
later with the platform statement: “This party rejoices in the fact that its representatives in the council shared in the selection of W. R. Hopkins as city manager.” The independents, not to be outdone, immediately assured the public that they, too, would stand behind Hopkins, and accused the party organizations of actually opposing him because they had led the opposition to the new charter in 1921, and fostered the movement to weaken it last August by doing away with proportional representation. Beyond that, any effort they made to talk issues met with no response.
The campaign, like the two years of city government which preceded it, saw and heard of almost nothing but Hopkins.
HOPKINS’ PERSONALITY AND CAREER
Who, then, is William Rowland Hopkins? By what power of intellect or personality has he succeeded in reaching this position of prominence? Is he merely a politician, or also an able executive? Is his knowledge of city government and administration superficial, or really thorough . and exhaustive?
“ Will ” Hopkins is now 56 years old, of medium stature, slightly heavy built, with dark hair not yet turned gray or very thin. He has a quick step and a ready smile, with a manner always agreeable and pleasant, but he is not talkative. He possesses an imagination that can conceive a great city of the future, a business head that knows what should be done toward bringing it about, and a reserve which is ready to meet the routine or the disappointments of a day’s work.
Hopkins was born July 26, 1869, at Johnstown, Pennsylvania, of Welsh descent, and third in a family of ten. He came to Cleveland at the age of 15, worked in a steel mill until he had


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CLEVELAND’S CITY MANAGER
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mough money to go through, college, Graduated from Western Reserve University, and then, in 1899, from its aw school. He served one term in the lity council, being elected before law graduation, two terms on the board of Sections, was once deputy United states marshal, and once county Republican chairman.
Most of his life has been spent in Dusiness. With his brother Benjamin le planned, financed, and built the Cleveland Belt Line railroad around the uty, sold the line to the New York Central, and operated the Belt and Terminal Realty Co. which sold factory sites along the route. For years he svas active in the Cleveland Underground Railroad Co., which sought Franchises for the construction of subways throughout the city, but was finally forced by the World War to abandon its project. He was prominent in business circles, but little known as a public figure.
SELECTION OF HOPKINS AS MANAGER
The selection of Hopkins as manager was not an accident. He was from the beginning considered the most likely candidate for the office, and following the election of the first council the appointment was freely predicted. As a matter of fact, he was first named by Maschke, whose party was a majority of the council, but in the vote, 24 of the 25 councilmen approved him.
“ We have investigated Mr. Hopkins’ qualifications for the position,” said the ever critical Citizens’ League, “and we are of the opinion that he is exceptionally well qualified by education, training, experience, character, and breadth of view for the office.” Moreover, they continued, “Mr. Hopkins declares without hesitation that he will not accept the office if there are any personal, political, or other obligations which will interfere
with his freedom of action in serving the city to the best of his ability . . . He also expects to be entirely free to choose his subordinates.”
“I shall try to have pleasant and congenial relations with all who may have business with my office,” was the further promise of the new manager on entering the city hall, “but, pleasant or unpleasant, congenial or uncongenial, I shall not willingly leave undone anything I can do for the city of Cleveland.”
We have already seen the success which crowned the initiation of the new system of government, and the two-years’ record which has been established under Hopkins’ regime. It is to the manager himself that the great bulk of the credit should go for these results. True it is that the people were responsible to a degree, for they watched with interest if with scepticism, and were ready to show enthusiasm when results were forthcoming. The council, too, showed a new independence and initiative in legislating, and a rare good sense in keeping hands off the business of appointments. But from the sound administrative and executive ability of Hopkins, and from the popular appeal he was able to attach to his policies, came the real achievements.
THE ABILITY AND FIGHTING SPIRIT OF THE MANAGER
Professor A. R. Hatton was probably right when he said the greatest problem of the city manager type of government is the city manager himself. In this day and age the administrative side of government has increased in importance until it overshadows all else, including policy determination, and especially in a city long attacked as the most fertile ground for political ignorance, honesty and efficiency are of unlimited importance. It may


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NATIONAL MUNICIPAL REVIEW
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sound very well to get the machinery of politics out of the hands of parties and groups and into business management free from partisan influences, but unless the man chosen fulfills very high qualifications, it would be better to return to the old system of electing the smoothest talker or slickest vote getter.
It is not simply that Cleveland changed her form of government that the above results have been produced. The better reason is that the city’s executive has become an intelligent man, and he is expected to operate affairs on a business and not on a political basis. In almost every case the improvement can be ultimately traced back to the manager’s office in the city hall. Because business there is handled in an expert and scientific manner, and someone there knows how things should be done and will see that they are done that way, the new higher tone of government has come.
This spirit of administering city affairs in a scientific manner soon pervaded every department and branch of city service. At the top the example was set. Every city employee has come to learn that Hopkins is more than a popular man, they know that he understands every phase of administration thoroughly from top to bottom. The city hall is pervaded with the feeling that business is being done on the basis of intelligence, expertness, and hard work. The fighting spirit of Hopkins is present in every act of business, and his personality extends to every end of the municipal organization.
Take the matter of conferences as an example. In any discussion of the scientific or business details of some public util'ty or improvement, the manager takes his position at the head of the group of experts. When the engineers of the new union station want
to talk business with the city, it is Hopkins they meet. He knows what the degree of curve or rate of incline or layout of street should be, and he can speak to them not only as public agent, but as engineer, lawyer, or business man. In any important city problem the manager himself generally studies its details and is ready with the facts when the answer is called for.
The manager will tell what kind of paving ought to go on a certain street, how much it will cost a square yard, and what saving this is over the former cost. Together with his finance director he worked out a new accounting system of very considerable merit.
Supplementing this thorough knowledge of problems of city administration, Hopkins has an inclination to work hard at his task. “The city manager himself has set a good example to all public employees by his own punctuality and long, intensive hours of work, ” said the Citizens’ League at the end of the first year. The city hall knows him as a man with a full day of continual conferences with committees, cabinet members and distinguished visitors, individual labor at his many duties, usually followed by an evening with more meetings of business or social nature.
SELECTION OF SUBORDINATES
The appointments made by Manager Hopkins, a matter in which the charter leaves him absolute independence, have been of the highest order in most cases. In one or two positions it was believed that political expediency was followed, but no real bad results have been evident even there. Generally the administrative staff has been filled on the basis of merit, and by the manager alone.
Cleveland, as is probably the case in other large cities, has not been accustomed to finding the source of knowl-


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CLEVELAND’S CITY MANAGER
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edge and intelligence in the office of the chief executive. The results of this altogether novel situation have been conspicuous from the first, and traceable to the farthest limits of the working staff and throughout the city itself. Not only has there sprung up the new atmosphere of honesty and seriousness and enlightenment at the city hall, but there has been shown a widespread enthusiasm for the new order, and a new and sadly needed faith in city government is coming to the front. Political pull and partisan favoritism have become the exception instead of the rule, and bad business is no longer excused because it has been done by a public official.
SOME CRITICISM MINGLED WITH PRAISE
There is, of course, some criticism of Manager Hopkins. The foremost objection raised is that, as a railroad man, he has given to the railroads many advantages over the city, especially in connection with the work of the new union station. Councilman Peter Witt, who alone has held out against the manager, frequently raises this question. The Plain Dealer, in leading the fight for harbor and waterway improvement and development, often charges him with slighting the harbor situation, and looking at the lakefront as primarily a recreation opportunity. “A hit-and-miss project, admirable for the earnestness behind it but falling far short of what the situation requires,” is their characterization of his lakefront plans.
As a whole, however, the Cleveland situation has shown an almost miraculous change during the last two years, as compared to the previous administrations. The city manager plan has not done what its enthusiasts promised it would, but it has done far more than was expected of it, and a thoroughly
commendable record is presented by Manager Hopkins. Human nature cannot be changed over night, or perhaps the golden age might have arrived.
While the city unites in almost unanimous praise for Manager Hopkins and his two-years record as municipal administrator, there is another and perhaps a less cheerful side to Cleveland’s situation which I have heard discussed many times in the higher circles of city officers and municipal experts. The question they raise is this: With a manager as dominant in civic affairs as Hopkins has proved himself to be, is the city manager plan receiving an actual and a fair test? Or is Cleveland merely, for the time being, fortunate and must at some later time face the real test of her charter?
THEORY OF MANAGER GOVERNMENT REVERSED
It is clear that the theory of the city manager scheme, and the spirit of the Cleveland charter, has not been followed. Both alike call for a dominant council and a manager who is their appointee and servant, charged only with the duty of carrying out the policies they determine. The council membership, according to the theory, shall be elected on the personal merits of each candidate and they shall then choose a man capable of handling as a business enterprise the city’s affairs. He shall be responsible directly to them, and for the administration only of the policies they decide upon. The dominant position in city affairs shall be occupied by the council and its spokesman and chairman, usually called the mayor.
This proper line of demarcation between the policy-determining function of the council and the policy-administering function of the manager ought to be a fairly clear one. Experts are almost unanimous in making such a separation, most charters call for it,


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NATIONAL MUNICIPAL REVIEW
[December
and the managers themselves in then-recent “Code of Ethics” speak of the manager as “a hired employee of the council,” and say, “Loyalty to his employment recognizes that it is the council, the elected representatives of the people, who primarily determine the municipal policies. ”
In Cleveland, however, quite the reverse of this situation prevails. There the whole stage of municipal affairs is occupied by City Manager Hopkins. The council and the mayor have taken back seats, turned over the reins to the manager, and virtually promised to be good. Last month over a hundred councilman ic candidates were clamoring for office, basing their election plea solely on the argument that they were Hopkins men, they had helped elect him, support him, or would stand behind him. Here it is plain that the subordinate-manager and dominant-council theory of city managership has given way to an entirely new situation not anticipated by promoters of the scheme.
The continued success which Hopkins enjoys in leading public opinion and determining policies in advance of the council has won him the name among some of “Chautauqua Bill,” the “Rotarian booster and ballyhoo artist.” He is charged by them with insubordination and opposition to his employer, the council. In an attempt to assure his political position against councilmanic disapproval, they say, he goes out making speeches, speaks with superlatives and in glowing terms of the great things of the future, and thus leaves the council no way out but to approve all that he promises.
In his first annual report he so far forgot himself as to say to the council: “From yourselves we have received the most generous support which has been fully appreciated.”
All this criticism is not fully justi-
fied, but there is much that can be fairly said, at least from the theoretical point of view, against the course he pursues. It is clear that when he took his position, he did not appreciate the limitations on his office, and he had an inadequate conception of the relations he should bear to the council. Many believe that he is now changing his attitude, and confining his activities to their proper sphere. Others think he will lose no opportunity to strengthen his position of ascendency.
The Citizens’ League was among the first to see the dangers in the increasing power of the manager, and it is partially responsible for bringing the mayor forward to his proper place as city spokesman and leader in public discussion of civic improvements. The League’s argument was sound. If the manager should become too dominant and powerful, forces for and against him would soon spring up, and he would become a campaign issue in councilmanic elections. People would vote for or against a candidate because that candidate was for or against Mr. Blank as manager. Real issues of city importance would be forgotten, and the caliber of councilmen would be lowered as they were elected on less important principles.
For instance, they pointed out, a leading candidate has declared himself in favor of municipal ownership of the traction lines. This is an important issue, and one upon which all candidates should make clear their stand, instead of sliding into office on the basis of who shall be manager. Moreover, the League held, if the manager leads in policy determining he would have to take the stump for or against public issues, and thus line himself up with certain parties or groups, instead of confining himself only to business administration.
These dangers are very real, and al-


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THE INTERNATIONAL UNION OF CITIES
721
though they have been largely avoided in Cleveland because of Hopkins’ success in keeping everyone on his side, trouble may yet arise should the disturbed balance between manager and council continue.
Because Hopkins is a capable leader, he has been successful in playing this one-man act in city government. Nevertheless the theory of his actions is bad and the precedent dangerous and the only safe course is to restore the council to its full policy determining power. Not until then can Cleveland secure a real test of her charter, and of the city manager scheme in a large city. Because of the near dicta-
torship that has existed in Cleveland, we cannot say that the plan or the charter have yet been adequately tried.
The public, however, is not inclined to dwell too long on theory when they have results before them. Whatever criticism there may be of his administration, his greatest enemies, if he has such, unite with his friends, in acclaiming his administration a very great success. If this is a real test of city managing, the results are sufficient to furnish a very great recommendation for all other large cities. Optimism reigns supreme as Cleveland enters the third year of her experiment with Hopkins at the helm.
THE INTERNATIONAL UNION OF CITIES
A REPORT OF THE PARIS CONGRESS BY CHARLES FAIRMAN1
The high lights of the Third Congress of the International Union of
Cities by a competent observer.
The Third Congress of the International Union of Cities (Union Internationale des Villes et Communes) was held in Paris during the week of September 28-October 4 with a large body of delegates in attendance. It should perhaps be explained that the International Union was founded at Ghent in 1913, for the purpose of exchanging information concerning the many important questions which are common to municipal administration in all countries. The framework of city government, the relations between local and central authorities, etc., do of course vary from country to country, and sometimes even between various
1 Delegate representing the city of Cambridge, and the Harvard Bureau of Municipal Research.
cities of the same state. Nevertheless there is a community of interest in the solution of such great administrative problems as housing and city planning, traffic regulation, water purification, and garbage disposal. With the growth of a city these problems become more complex, and more deserving of careful study by competent administrators. This is more generally recognized in Europe than in America. The Congress of the International Union provides a forum for the discussion of these problems, while the permanent bureau of the Union serves as a clearing-house for information desired by municipal authorities in all countries.
In form the International Union is a federation of national unions, such as


NATIONAL MUNICIPAL REVIEW
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the Association of Italian Communes, the Union of French Cities and Communes, the Union of Belgian Cities and Communes, the Union of Dutch Cities, etc. No such national organization exists in the United States, but such associations as the National Municipal League and the leagues of municipalities which exist in many of the states are earnestly desired as adherents by the officials of the Union.
PERSONNEL OF THE PARIS CONGRESS
The Paris Congress comprised 750 delegates, from 35 countries, representing more than 300 cities, of which 25 were national capitals. Delegations came from virtually all the countries of Europe, as well as from the United States, Brazil, Canada, China, Colombia, Costa Rica, Cuba, Egypt, Japan, and Mexico. The cities of Germany had misgivings as to the value of a conference held in Paris, and hence declined to participate. This was regrettable, as international rivalries are entirely irrelevant to the work of the Union, and the administrators of German cities would have been welcomed without reference to past animosities. Neither were there any delegates from the cities of Soviet Russia.
Some of the more important European cities represented were London, Paris, Rome, Vienna, Budapest, Constantinople, Tokyo, Madrid, Lisbon, The Hague, Copenhagen, Warsaw, Prague, Bucharest, Brussels, Amsterdam, Rotterdam, Helsingfors, Trondh-jem, Sheffield, Barcelona, Bologna, Milan, Naples, Geneva, Lausanne, Beme, and Belgrade.
The New World cities represented were Quebec, New Orleans, Pittsburgh (by the mayor), Washington, D. C. (by the municipal architect), Greenville’ S. C. (by the mayor), Jacksonville, Fla. (by a city commissioner), Berkeley, Calif., and Cambridge, Mass.
There were also representatives from the City Managers’ Association, the League of California Municipalities, the League of Kansas Municipalities, the American City Magazine, the University of California, and the Harvard University Bureau of Municipal Research.
French and English were the principal languages spoken at the Congress. As the Europeans were on the whole better linguists than the Americans, most of them addressed the Congress in French, after which a brief resume was usually given in English. The delegates from Copenhagen and from Tokyo, however, made their addresses in English.
•
THE SESSIONS
The opening session was held in the Hotel de Ville, or city hall, with the president of the municipal council of Paris in the chair. The morning was consumed in hearing the addresses of salutation appropriate to the occasion —amenities which consume the time of all international conferences, but which are always more elaborate in Europe than elsewhere. Representatives of the Secretariat of the League of Nations and of the International Labor Office at Geneva brought assurances of a desire to co-operate with the Union. During the afternoon the delegates listened to the report of the secretary-general, Senator Emil Vinck of Belgium.
The second day was devoted to an automobile trip of inspection, covering points of interest in the vicinity of Paris. These included a group of low-priced dwellings constructed and maintained as a public enterprise by the French capital in an effort to cope with the acute housing problem. The trip also included some parks, a model school building, a municipal bathhouse, and ended with a visit to the palace at Versailles.


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Wednesday was devoted to the discussion of papers, the sessions being held in the Grand Palace at the Exposition of Decorative Arts. Various national unions of cities gave reports on their activities. It appeared that their efforts included conferences and visits with the municipal officials, the collection and distribution of valuable data, and the protection of local interests against encroachment by the central authorities. An exposition of the workings of the city manager plan in the United States was given by the president of the City Managers’ Association. A paper was also presented by the secretary of the Association of American Municipal Organizations on the services performed by the state leagues of municipalities in the United States. He dwelt upon four contributions which these leagues do or should make to city officials: (1) advice upon request as to the costs of various phases of city administration; e.g., the cost of fire or police protection in various cities, the going-rate on municipal bond issues, etc.; (2) legal protection of the public interest against public utility corporations; (3) assistance in drafting city charters and ordinances, and in securing the passage of sound legislation by the state legislature; (4) development of a system for the computing of unit costs, so that, for instance, a city administration may know just how much it should pay, per unit, for lighting, paving, etc., of given specifications.
Mr. Montagu-Harris of the British Ministry of Health made an interesting preliminary report on the forms of local government in the principal countries of the world, including such topics as the relations between local and central authorities, the extent of municipal home rule in financial matters, and methods employed in various countries for floating municipal loans. The paper was only a comparative
study of existing facts and did not attempt to draw any conclusions as to whether one system was preferable to another. For, as was pointed out, the highly centralized system obtaining in France (and imitated in many other countries) would be quite intolerable in Great Britain or the United States, where each community feels that it should control its own local affairs without interference from London, Albany, or Harrisburg or wherever the central authority may be.
The general dearth of capital in Europe at the present time makes it more difficult, for European than for American cities to float loans for public works. In Holland, Roumania, Italy and Spain the national government has lent its assistance by establishing banks to facilitate the raising of funds needed for the development of the communes.
The fourth day of the Congress was consumed in another excursion to various points of interest. There was a display by a regiment of sapeur-pom-piers, as the French fire departments are called. The trip included the plant for the incineration of household wastes from the city of Paris and the suburbs. Later the electric and gas plants at Grennevilliers were visited.
HOUSING AND CITY PLANNING
The land policy of towns and cities, with special reference to its influence upon the housing problem, formed the subject of a report given by one of the Dutch delegates at the Friday morning session. It seems that on the Continent the communes (the unit-cells, politically) are much larger owners of land than are the cities and towns of the United States. For example, the commune of Zurich, Switzerland, owns one-third of all the land within its limits and has even greater holdings in the suburbs. Utrecht owns about one-fourth, Amsterdam one-tenth, Buda-


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pest one-seventh of the total area within their respective limits. The Dutch delegate recommended that each municipal government should acquire and occupy a dominating position in the local land market. It should encourage the use of land for what the city administration deemed to be desirable purposes by offering public land for sale or long term lease, at prices to be varied according to the use made of the land. Thus a site to be used for low-priced dwellings should be sold more cheaply than if the same plot were to be used for less desirable purposes. Where the owner of a plot of real estate refused to conform to the wishes of the city government as to the use to be made of his land, he would be compelled to do it under threat of expropriation. The city would prevent exorbitant prices being charged for land by offering some of the city’s holdings at less than the market rate. In short, the city government should serve as a balance-wheel to the real estate market. The delegate from Rome added that many Italian cities had made an energetic use of the right of expropriation to acquire land suited to the erection of dwellings where the owner declined to build thereon.
This method of carrying out a city plan is of course quite different from those employed in the United States, where plans for the city’s future are made through zoning ordinances passed under the police power (limiting the use of private property in the interests of public health, safety, morals, or general welfare). Probably no friend of good municipal government in America would advocate the city’s engaging in real estate operations except when necessary for strictly public purposes, even if so drastic a use of the power of expropriation were constitutional in America.
How inapplicable were the Dutch
delegate’s recommendations to the conditions of land ownership in England and America was pointed out by a delegate from the British Ministry of Health. He regretted that the program did not include a paper on city planning as practiced in America, which was, he said, the country which had made the greatest progress in city planning during recent years. He was opposed to the method of carrying out a city plan which the Dutch delegate had advocated. Thus was clearly brought before the Congress the fact that the field of public action is larger on the continent of Europe than in Great Britain and America.
The delegate from Bucharest, the capital of Roumania, remarked that mumcipally-owned dwelling houses in Paris returned a profit of only 1$ per cent, and that public ownership with such poor financial results could not be practised on a large scale. The difficulty experienced by Roumanian cities in constructing the public works made necessary by city growth was the impossibility of borrowing except at unfavorable interest rates.
THE GOVERNMENT OF METROPOLITAN AREAS
The last question discussed by the Congress was of particular interest to cities situated in metropolitan areas. What solutions are adopted or proposed in the various countries to meet the difficulties which result, in great metropolitan communities, from the fact of their division into several separate autonomous corporations? The principal paper was presented by M. Henri Sellier, himself mayor of one of the suburbs of Paris and a member of the general council for the Department of the Seine, hence an expert in French municipal government. He brought out the fact that in France and in a number of other European countries


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the national government allows or compels the various neighboring communes which form metropolitan areas to enter into syndicates or unions for the satisfaction of various common needs such as the providing of a public water supply, a gas plant, or an electric supply, or the disposal of wastes. This, in other words, is an arrangement much similar to that applied by the legislature of Massachusetts to the water supply and sewerage system of the Boston metropolitan district.
But this syndicate of several communes is subject to the disadvantage that the various conflicting interests are difficult to reconcile. One city, by refusing to co-operate or to allow the laying of necessary conduits within its limits, may thwart the will of the others. The remedy for this, he agreed, was the political consolidation of the metropolitan area, with either a unified or a federal form of government. But where local pride runs strong, as in the communes of Italy, annexation is bitterly opposed. The representatives of Milan asserted that Italy was not likely to “contract the urban elephantiasis from which other nations are suffering. ” M. Sellier by the way commended the American method of dividing the towns and cities of a state into classes and of legislating separately for these classes, rather than the French method of legislating for all communes together, whether the commune be an Alpine hamlet or a great industrial metropolis.
On Friday evening the closing session was held. At that time the delegate from New Orleans expressed, in graceful French, the appreciation which the Americans felt for the privilege which had been theirs of participating in the Congress. The last day of the week was devoted to a trip to inspect the methods employed in treating with ozone the drinking water supply for Paris. On one of the evenings the members of the Congress were the guests of the City of Paris at a theatrical performance; on another a banquet was provided; on a third the delegates were invited to attend a reception offered by the city.
The proceedings of any international meeting are necessarily slowed up by the diversity of language and the delays incident to translation. There are also differences of law, customs, and national temperament, which sometimes make a discussion of conditions in one country unintelligible to delegates from another. Finally, it is not to be supposed that only one week of study will lead to any revolutionary solutions of the difficult questions of municipal administration. But in the case of the delegates who were at the same time the responsible officials of their respective local governments, the Congress offered a splendid opportunity to get in touch with municipal progress throughout the world. Some day, let us hope, this International Union will be induced to hold its Congress in America.


PITTSBURGH’S GRADED TAX IN FULL OPERATION
BY PERCY R. WILLIAMS Member Pittsburgh Board of Assessors
A discussion of the working of the Pittsburgh graded tax plan, the purpose of which is to encourage business and improvements and to discourage land speculation by decreasing taxes on buildings and increasing taxes on unimproved land. :: :: :: :: ::
Pittsburgh's unique experiment in taxation has attracted widespread attention and there have been numerous inquiries, some of them from remote comers of the world, concerning the operation of the plan and the effects resulting therefrom. There has been a good deal of misconception. It has been heralded by some as an example of “the single tax,” which, of course, it is not by any means, but this impression has gained considerable currency, resulting in an exaggerated idea of what Pittsburgh is doing and leading many to anticipate something revolutionary in the way of effects.
The Pittsburgh tax plan may be briefly described as having two notable features:
1. The entire tax revenue for municipal purposes is derived from taxes upon real estate. There are no taxes levied by the city government on any other form of property or income.
2. The municipal tax rate on buildings is fixed at one-half of the tax rate levied upon land. This latter feature is known as “the graded tax.”
EVOLUTION OF THE GRADED TAX
The graded tax has been in process of evolution since the year 1913, when the law was passed by the Pennsylvania legislature. It has now reached its goal, the ultimate point contemplated by the law having been attained
on January 1, 1925, when the half-rate on buildings became effective. The law provided for the partial exemption from taxation of improvements upon real estate, with the ratio of exemption increasing at each triennial assessment. This partial exemption has been effected, not, as commonly assumed, by reducing the assessed valuation of buildings, but by fixing from year to year a lesser tax rate on buildings than that levied upon land. The law became effective January 1, 1914, and there have been five successive steps, corresponding to the triennial assessment periods, in each step a certain proportion of the tax burden being shifted from buildings to land; in the first period, 1914-15, the building rate being 90 per cent of the land rate; in the second period, 1916-18,80 per cent; 1919-21, 70 per cent; 1922-24, 60 per cent, and in 1925 and thereafter, 50 per cent. (Note Exhibit “A.”)
EXHIBIT "A”
Comparative Statement or City Tax Rates Under Graded Tax Plan1
Flat Tax Rata Required ts
Land Tax Building Tax Raise Sams
Year Mille Millt Revenue
1914 .......... 9.4 8.46 9.06
1915 .......... 10.2 9.18 9.8
1916 ......... 12.6 10.06 11.63
1917 .......... 11.5 9.2 10.6
1918 .......... 14.5 11.6 13.3
1919 .......... 15.7 10.99 13.6
1920 .......... 19. 13.3 16.6
1921 .......... 20. 14. 17.6
1922 .......... 20. 12. 16.6
1923 .......... 20. 12. 16.58
1924 .......... 20. 12. 16.46
1926........... 19.6 9.76 16.2
1 Compiled by Pittsburgh Assessor's Offioe.


PITTSBURGH’S GRADED TAX IN FULL OPERATION 727
While Scranton is governed by the same act, it being necessary to include in its provisions both of the second-class cities of the state in order to meet the constitutional requirements, the graded tax law is distinctly a Pittsburgh idea. The proposal was originally sponsored by the Pittsburgh Civic Commission, which for a number of years was one of the most influential civic bodies of the community. But it was largely through the political influence exerted upon the legislature by Mayor William A. Magee, then serving his first term, that the measure was quickly adopted into law.
EFFECT OF THE GRADED TAX PLAN
With the graded tax plan now fully effective, it is possible to tell, in general terms, just what the new tax system means to Pittsburgh and its taxpayers.
There is, of course, no loss of revenue through the graded tax. The law of 1913 has no effect whatever on revenues or upon expenditures. It simply brings about a shifting in sources of revenue. Its effect is upon the respective tax rates on land and buildings which are fixed annually by the city council at such figures as will produce the sum estimated as necessary to meet the expenditures set forth in the budget.
Careless writers have frequently stated that Pittsburgh has reduced building taxes 50 per cent. This, of course, is not literally true. What they mean to convey is that, through a gradual process, the building taxes levied by the city have been brought to a point where they bear a ratio of 50 per cent to the city land taxes. The building tax rate would not have been reduced as much as 50 per cent, even had real estate values and government costs remained stationary at the 1913 figures, because we must, of course, take into account the automatic in-
crease in the rate of the land tax which has been taking place as contemplated under the law. The estimate made on the basis of 1913 figures was that, if the law were then to become fully effective, the tax rate on buildings would be reduced 40 per cent. But the proportion of land and building valuations has changed materially since 1913, building values steadily gaining on land values, and, what is more important, the cost of government service has tremendously increased everywhere, as have all costs that enter into the cost of living and the cost of doing business. So the building tax rate in Pittsburgh is actually higher to-day than it was in 1913, but only very slightly higher so far as city taxes are concerned, because the operation of the graded tax law has steadily reduced the ratio of the building tax to the land tax.
The city tax on buildings in 1913 (under the uniform rate plan) was $8.90 per thousand dollars of valuation; to-day it is $9.75 per thousand. This means that our city building tax has gone up in this 12-year period of soaring taxes only to the extent of 85 cents per thousand, while on the other hand, our city land tax has gone up from $8.90 to $19.50 per thousand, an increase of $10.60, showing that the city tax on land has more than doubled in this period, while the city building tax is back practically to the 1913 figures. It may be interesting to note that the building tax rate has fluctuated upward and downward. Beginning on the basis of 8.9 mills in 1913 (which applied alike to buildings and land), the building tax rate was somewhat reduced in 1914, when it was fixed at 8.46 mills, but from that point rose to the peak of 14 mills in 1921, followed by a 12 mill tax for the years 1922-23-24, and finally dropping to 9.75 mills in 1925. But throughout


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the process the ratio of building to land tax was lessened every third year.
SHIFT OF TAX FROM BUILDINGS TO LAND
Exactly what does the graded tax mean to the taxpayer in dollars and cents? It means that buildings pay $5.40 less per thousand dollars of valuation than they would pay if the old flat rate system were in effect. It means that land pays $4.35 more per thousand than would be required under the flat rate system. Land therefore pays approximately ten dollars per thousand more than buildings. The city tax rates for 1925 are $19.50 on land and $9.75 on buildings, and these rates raise a revenue of approximately $15,000,000. To raise the same revenue with a flat tax rate would require a levy of approximately $15.15 per thousand. The effect of the graded tax on the tax figures can therefore be accurately measured by the difference between $15.15 and the present rates, and similar calculations have been made that enable us to compare the rates required under the respective systems for each year that the graded tax has been in operation.
In wholesale terms, this signifies that there has been a shifting for this year 1925 of approximately $2,400,000 in taxes from buildings to land. The total assessed valuations for 1925 are: land, $548,475,280; buildings, $442,-004,840; total valuation, $990,480,120. Under the graded tax law land values in Pittsburgh pay a total city tax for 1925 of approximately $10,700,000, while at the rate of $15.15, which would prevail were the old tax system now effective, the taxes on land would be only about $8,300,000. Buildings, under the graded tax, pay this year in taxes $4,300,000, while at the rate of $15.15, this figure would be raised to approximately $6,700,000. These figures confirm the fact that there has been a shift
from buildings to land of about $2,400,000, a very considerable item out of a total city tax revenue of fifteen millions.
PLAN LIMITED IN ITS APPLICATION
As the graded tax law is the only tax law of its kind in the United States, there has naturally been much discussion as to its effects, not only upon the tax situation itself, but upon real estate conditions. Therefore, before proceeding further into the discussion, it is important to note that the foregoing figures, though very significant, relate only to city taxes, in the strict sense of the term. This fifteen million dollars raised by the city from real estate is by no means the entire tax revenue that is obtained from Pittsburgh real estate, as it is found, upon examination, that the board of public education and the county of Allegheny together raise from Pittsburgh real estate the approximate sum of $17,-500,000. And in the collection of this vast sum there is no exemption of buildings whatever, as neither the school tax or the county tax are levied under the terms of the graded tax.law, this measure relating to cities only.
The board of public education, representing the school district of Pittsburgh, a political unit distinct from the city itself, raises from taxes on Pittsburgh real estate the approximate sum of $11,390,000 this year, by a flat rate of $11.50 per thousand, the school tax being based upon the city’s assessed valuations. Of this total sum, approximately $6,310,000 is obtained from land assessments and $5,080,000 from building assessments. When these figures are added to the city taxes, we find that the combined taxes derived from land amount to $17,010,-000, while the combined taxes on buildings total $9,380,000.
The county of Allegheny raises from


1925] PITTSBURGH’S GRADED TAX IN FULL OPERATION 729
taxes on Pittsburgh real estate the approximate sum of $6,110,000, by a flat rate of $6,375 per thousand. It is not possible to give the definite distribution of this sum into land and buildings, as the county tax is based upon the county’s assessed valuations, which do not separate land and buildings, though the proportion allotted to each would probably not differ greatly from that shown under the city’s assessments for the school tax.
These facts tend to show the limitations of Pittsburgh’s graded tax system as it now stands with present legislation fully effective, and to indicate to just what extent the building exemption plan has been carried. The facts cited show how far Pittsburgh is from the single tax, either “unlimited” or “limited,” and thus serve to give a better understanding of the Pittsburgh tax experiment, which is really a moderate tax reform applied in a very conservative manner. Nevertheless, it marks a very distinct departure from the general practice of American municipalities and the material change which it has made in the distribution of the tax burden makes it reasonable to look for certain moderate effects upon real estate conditions.
PLAN STIMULATES IMPROVEMENT OF LAND
It is my judgment that the graded tax plan has undoubtedly tended to stimulate the improvement of real estate. It has been said that there is entire absence of evidence that the graded tax has influenced the erection of a single building. And perhaps actual proof that it has done so cannot be given, because it is very difficult to determine just what motives are most influential in inducing the builder to build. Yet friends and opponents of the graded tax alike agree that the higher land tax has been influential in
inducing those who had held large tracts of land idle to sell at more reasonable prices, because the holding of vacant land for long periods is becoming unprofitable. We know that Pittsburgh has had a boom in building during the past few years and official statistics of building in Pittsburgh show a very marked increase. Whereas, in 1913, the last year under the old tax system, the total number of building permits was 3,461 and the total estimated value of new buildings was $13,870,955, for the past three years we have this record: 1922, 6,259 building permits, value, $35,257,375; 1923,7,179 permits, value, $33,132,762; and 1924, 8,285 permits, value, $34,256,450. This shows new construction in the past three years of over a hundred million dollars, a record which has never before been equalled in the history of Pittsburgh.
Another index to the improvement of real estate in Pittsburgh is provided by the record of assessed valuations over the period that the graded tax has been in operation, and when we examine this record we find that the total building assessments have gone up from 282 millions in 1914 to 442 millions, approximately, in 1925, while land assessments have only increased in the same period from 480 millions to 548 millions.
The Pittsburgh Civic Commission, in its tax revision bulletin of 1912, contended that high land prices, with accompanying high land rents, were one of the chief obstacles to Pittsburgh’s progress, and a survey made at that time brought out the fact that the average value of land per acre in Pittsburgh, as shown by assessments, was second only to that of New York City. This indicated that Pittsburgh’s land prices were abnormally high and it was an avowed purpose of the graded tax plan to lower land prices or to retard


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the rising process. No careful analysis has been undertaken such as would be necessary to bring out all the facts as to what has taken place with relation to land values since the graded tax law has been on the statutes, but it seems beyond doubt from the evidence at hand that it has had a tendency toward lower land prices; that is to say that while land values constantly rise in all growing communities, the higher tax on land has prevented such inflation as we have witnessed in our own community in times past and such as has taken place in other large cities in recent years. Yet it is fair, in speaking of the higher land tax, to point out that the increased cost of local government has been responsible for this higher land tax to a greater extent than the graded tax law itself. Combining city and school taxes on land, we find an increase from $14.90 per thousand in 1913 to $31.00 per thousand in 1925, or a gain of $16.10, of which $11.75 represents the increase in the cost of public service and only $4.35 represents the increase due to the shifting of taxes from buildings to land.
But while judgments may differ as to the exact effects of the graded tax upon real estate conditions, the facts as to its results in lower taxes are subject to positive proof, being merely a matter of arithmetic. Since the first of the year 1925, when the graded tax law became fully effective, a study has been made from the official records of the department of assessors which reveals some very interesting facts.
OWNERS OF IMPROVED PROPERTY BENEFITED
While we have not undertaken an analysis of the entire city, our study of the tax situation has gone far enough to clearly indicate that the great majority of real estate owners are saving money in taxes through the
graded tax law, in most cases this saving amounting to a very substantial percentage of their city taxes. It follows, of course, that the owners of vacant or under-improved land are paying higher taxes, as contemplated by the sponsors of the law, which, as already intimated, means that such land, where valuable enough to pay a considerable tax, is not likely to remain vacant or under-improved for a long period.
Owners of improved property of all classes are benefiting in lower taxes by reason of the graded tax law. Our survey of a large number of typical cases shows very great annual savings in taxes paid by various office buildings, manufacturing plants, warehouses, apartment buildings and single-family dwellings, the degree of the saving varying with the size and type of building in relation to the value of the land upon which it stands. (Note Exhibit “B.”) Two of the largest downtown office building properties show tax savings by reason of the graded tax for this year of 10 and 15 per cent respectively, in each of these instances the actual savings in taxes for the one year being in excess of seven thousand dollars.
Apartment houses almost uniformly show substantial savings in taxes under the graded tax for the reason that they are usually structures of some size and value erected upon land of moderate price such as is to be'found in residential districts. Two of the newly erected apartments show savings of 27 and 33 per cent respectively, in one case the actual tax saving being over ten thousand dollars for one year. On the other hand, a number of manufacturing plants and department, stores occupying valuable land may be found which will not show any direct benefit in lower taxes from the graded tax, but as an offset to this, it should be re-


1925] PITTSBURGH’S GRADED TAX IN FULL OPERATION 731
membered that very substantial savings have been made by manufacturers through the act of 1911 completely exempting all machinery from taxation, while the big department store is entirely free of taxation upon its stock of goods, whereas in other cities such stores pay heavy taxes on their “personal property.”
EXHIBIT "B"—TYPICAL TAX SAVINGS Apartment Houses
But it is the home owner who stands out as the chief direct beneficiary of the graded tax. Only in rare instances do we find a home owner who has not been benefited to some degree by lower taxes through the operation of the graded tax law. The most striking example of the effect upon taxes on homes is afforded by an analysis of the taxes paid by property owners in the 13th ward, a typical residence ward, which shows that out of a total of
1925 15.8 Old Plan 1985
Nam* Total Taxes Flat Tax Tax Sating
Bellefield Apt 13,654.11 $5,280.33 $1,626.22
Ruakin Apt 6,814.08 9,643.48 2,829.40
King Edward Apt.. 4,358.06 6,247.05 1,888.99
Georgian Apt 2,057.25 2,819.60 762.35
Belvidere Apt 1,173.56 1,636.74 463.18
Schenley Apts 26,866.13 36,901.80 10,035.67
Terrace Court Apt. 2,422.68 3,408.44 k 985.76
Alder Court Apts.. 2,026.16 2,910.50 884.34
Wightman Apt.... 766.35 1,091.36 325.01
Morrowfield Apt. .. 8,158.41 12,059.37 3,900.96
Manutacturino Plants
1985 15J8 Old Plan 1985
Nam* Total Taxes Flat Tax Tax Saving
Weatinghouae Elec. A Mfg. Co 16,961.61 $9,169.85 $2,208.20
Pgh. Meter Co.... National Biscuit Co. 4,966.85 6,175.15 1,208.36
13,211.60 17,568.16 4,356.54
Hershey Bros 5,416.13 6,311.80 895.67
A. J. Logan A Co.. 2,735.46 3,181.05 445.59
Liberty Baking Co. 4,191.72 5,395.38 1.203.66
Rieek-McJunkin Dairy Co 6.463.48 7,490.71 1,027.23
Armstrong Cork Co. 10,087.35 11,989.76 1,902.41
D. L. Clark Co.... 3,840.14 4,505.72 665.58
Ailing A Cory Co.. 2,812.68 3,256.44 443.76
Omci Buildings
1985 16Jt Old Plan 1985
Nam* Total Taxes Flat Tax Tax Saving
Oliver Building.... 161,833.53 169.098.43 $7,264.90
Frick Building 48,516.00 56,057.60 7,541.60
Frick Bldg. Annex. 17.270.18 19,921 88 2,651.70
Union Bank Bldg.. 17.246.19 19,523.18 2,276.99
Commonwealth Bldg. 14,103.18 14,793.24 690.06
Keystone Bk. Bldg. 8,915.21 9,419.29 504.08
Carnegie Building.. 25,769.25 26,928.80 1,157.55
Keenan Building.. . 10.202.40 10,688.64 686.24
Weatinghouae Bldg. 10,320.38 11,844.60 1,524.22
Bessemer Building. 16,592.75 18,443.83 1,851.08
Fulton Building.... 20,286.44 23,033.02 2,746.58
Highland Building. 5,751.33 7,523.08 1,771.75
Residences 1985 15.8 Old Plan 1985
Name Total Taxes Flat Tax Tax Saving
Samuel Rattner $85 80 $112 48 $26.68
Michael J. Feeney. 366.60 452.96 86.36
John Lauterbeck.. . 20 48 27.36 6.88
Marke Pupich 34.13 41.80 7.67
Margaret Arensburg 242.39 306.73 64.34
Rose V. Kraeling. . 346.13 440.80 94.67
Anna B. Miller.... 54.22 76.46 22.24
William B. Rodgers 54.61 73.72 19.11
Mary V. Lee 22.82 32.98 10.16
Charles Masur 66.31 95.00 28.69
4,252 assessments, there are 3,250 cases where the taxes paid under the graded tax are less than would be paid under the old flat rate system, these savings ranging from 5 to 35 per cent. Of the remaining 1,002 assessments where the taxes paid under the graded tax system are higher, it is interesting to note that 980 of these represent vacant lots, leaving only 22 “improved ” properties that are not paying lower taxes, and these 22 are properties that are not very adequately improved.
There has been an impression in the minds of many that the owners of large office buildings profit by the graded tax at the expense of the home owners because of the relatively small building investment of the latter. This assumption, however, is altogether contrary to the facts. The high land values in the downtown business district, known as the “Golden Triangle,” much more than offset and cancel the partial exemption of the skyscrapers and other large structures in that section, while the home owner, though possessing a structure that seems insignificant by comparison with the skyscraper, is apt to find the value of his building from two to five times greater than the value of the land upon which it stands, and, of course, every property owner whose building value exceeds his land value on the assessment books is paying lower taxes


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NATIONAL MUNICIPAL REVIEW
through the operation of the graded tax. Nor is it essential that his building value should exceed his land value. If the land value is equal to the building value, or even as much as 10 per cent greater than the building value, his taxes will be lower under the graded tax as long as the present ratio between the total assessed valuations of land and buildings is maintained, the total of land valuations for 1925 exceeding the total of building valuations by more than a hundred million dollars. The city building tax rate is now 35 per cent lower by reason of the graded tax than it would be under the old system and this has made a substantial difference in the tax bill of the average home owner, who is more concerned with building taxes than he is with the taxes on land.
Our survey develops the fact that it is only the exceptional business structure in the downtown district that has a value sufficient to offset the high land value and thus show a saving through the graded tax. A study of approximately 1,200 property assessments in the “Golden Triangle” (comprised of parts of the 1st and 2d wards), shows that only 8 per cent, or about one out of twelve, pay lower taxes by reason of the graded tax. Since high land values are always to be found in the heart of the business district of a city, it is obvious that, under either the old or the new system, the downtown wards must pay the greater share of real estate taxes, but the higher the land tax, the greater is the proportion paid by the downtown section.
PRESENT STANDING OF THE PLAN
The expediency of the graded tax plan lies in the fact that it means tax relief for the majority of taxpayers and that it encourages the improvement of real estate, thus stimulating the development of the community. The jus-
tice of the graded tax plan rests upon the fact that land values are socially created, growing with the growth of population and the extension of public improvements, and are, therefore, in a peculiar sense, a natural and logical source of public revenue.
Naturally, the graded tax has not been without opposition. It has been fought by those largely interested in unimproved land, as well as by some who are opposed to the plan in principle. Its repeal has been attempted on several occasions, but its friends have rallied on each occasion and frustrated these efforts. It has been defended by the leading civic organizations and the daily press is practically unanimous in declaring for the maintenance of the law upon the statutes.
The present city administration, which is friendly to the graded tax idea, is not proposing at this time any further extension of it beyond the limits of the present act, but takes the attitude that now that the law has become fully effective, the plan should be given a period of five or ten years in which to fully demonstrate its value. When the taxpayers generally awaken to the realization that the repeal of the law would mean a substantial increase in taxes for the great majority of real estate owners, they are sure to present effective resistance against any future efforts to upset the system. As the graded tax grows in public favor, it seems unlikely that there will be any backward step, and there are even now indications that, within a few years, steps may be taken by interested citizens to extend the partial exemption of improvements beyond the present point through new legislation. Whether or not this will actually be brought about is, of course, largely a question of the development of public opinion as to the advantages of the improvement exemption idea.


THE INFLUENCE OF CIVIC ORGANIZATIONS ON GOVERNMENT
BY S. GALE LOWREE University of Cincinnati
Professor Lowrie discusses civic organizations and agencies, their general character, and their relation to governmental work. ::
Our government by its very nature finds a large place for associations of citizens with no direct control over its machinery, but with, nevertheless, a most powerful influence over its operation. With us, it has been found particularly desirable for those with common views on public affairs and like purposes to band themselves together for advancing their projects. Particularly is this noticeable since the adoption of the equal suffrage amendment to the Constitution. It is not easy to weigh the immediate results of the extended franchise. But whatever the first fruits of the amendment may be, there is most enheartening evidence of progress in an awakened interest in civic affairs and a determination to become more familiar with the functions of the state. Citizenship courses are being organized, study classes enrolled, and inquiries directed as to the actual conduct of public affairs, which argue for greater enlightenment and a more intelligent participation in the privileges of citizenship. But the civic associations being formed are not restricted to purposes of self-enlightenment. They propose to be doers, as well as learners. The growth in the number and scope of the organizations seems to make timely an analysis of the place of such bodies and their influence upon our political institutions. Their effectiveness in advancing the causes they espouse is conditioned in large measure upon their ability to establish the type of machin-
7SS
ery calculated to accomplish the work they have at heart.
LACK OF OFFICIAL LEADERSHIP
The first cause for the important role which our unofficial organizations play in the conduct of public affairs is the lack of leadership so often noticeable among our public officials themselves. This is due partly to our political institutions, and partly to the character of our officials. As students of American history well know, the experiences of our colonial fathers under monarchial institutions of Europe and the frequent clashes with the feeling of independence bred on the frontier, led to an antipathy to centralized officialism. This was nourished by a study of the political philosophy of the time—that of Montesquieu, Rousseau, and Locke. They believed in individualism and that the power of government should form through natural and mutually independent divisions—the executive, the legislative, and the judicial. This was perhaps the most important of a series of checks and balances which the federal constitution imposed. As Biyce points out, this division of authority was not intended to encourage an expression of public opinion so much as to thwart it—“to force the current of the popular will into many small channels instead of permitting it to rush down one broad bed.” It resulted in separate organs each “too small to form opinion, too narrow to express it, too weak to


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give effect to it,” and “tended to exalt public opinion above the regular legally-appointed organs of government!”1
This situation has been further embarrassed by the character of our officials, who have, generally speaking, been chosen because of their neutral attitude on public questions rather than because of fitness for their public tasks. We have been swayed in the shaping of our institutions by the influences of the rural districts. The country is the place of the “average man” where the work of every-day life can be done about as well by one person as by another. So special aptitude and training are discounted and by popular elections men are chosen to office. But in selecting candidates for a ticket, other criteria determine than mere fitness for the positions. The most able men in the community and those who articulate most distinctly a popular trend are passed over. In some other countries, one’s very position of leadership establishes his candidacy beyond question. He represents an opinion which he has helped to form and which he understands most thoroughly. But with us the fear of antagonizing those who reflect opposite views makes us pause, and one is rather preferred who, though, if possible, well known and whose name has been often before the public, has identified himself with no extreme faction and whose position on debatable questions is not too definitely taken. If his candidacy does not rally the enthusiastic support of any group, at least little hostility is aroused; and the efforts of a well organized party are usually sufficient to establish him in office. Thus it happens that our more able men and those whose minds have been applied most constantly to public questions often yield to less cap-
1 The American Commonwealth, (New York, 1915.) Vol. II, p. 271.
able, but more “available” candidates, and the more prominent men augment the ranks of the unofficial, rather than the official forces of our society.
But even this obstacle would not prove insurmountable were the official, once introduced to his task, allowed to acquaint himself with its problems and the best methods of solution. However, our short terms leave him scarce time to master the rudiments of his position before he must again appeal for the popular verdict upon his record. Thus it comes about that, while there are countries where leadership is accepted by public officials because there one may not be an official unless he is a real leader, with us it is more frequently assumed by groups of private citizens. By long familiarity with these public matters, these latter have become the mentors of the community. We are, consequently, denied the constructive leadership which should be the fruits of any well officered government and are forced to rely on other guides to conduct us on our civic pilgrimage.
LACK OF PUBLIC INTEREST
But even in localities favored with the most thoughtfully framed charters and whose affairs are administered by thoroughly competent officials, the difficulties of keeping public affairs from being crowded out of the attention of the citizens seems no less serious. In some respects, the more perfect the functioning of government, the less the people seem inclined to concern themselves about it. And so matters run along until an unfortunate hiatus has come between the officials and the public. The former tend to become bureaucratic and impatient of the ignorance and short-sightedness of the public. The latter, sensing the lack of responsiveness are easily led into disaffection and for reasons often little related to the major program of the ad-


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ministration, stampede in a political turnover.
This tendency is perhaps increased as the nonpartisan movement gains ground. Although it has many sins to answer for, the political party has exerted an influence for political stability. Through party press and political henchmen it has defended the administration against the attacks of its enemies. Even the opposition has been useful. When it has been in the right, it has frequently called attention to mistakes before they developed to overwhelming magnitude and when it has been in the wrong it has allowed the administration to justify its course. In either event it has served to keep the activities of .the government in the public eye. The worst enemy of an administration is indifference. And since the law often permits and sometimes requires popular participation in the more important projects, lack of interest and appreciation, even when opposition is slight, is often fatal. As these lines are written, the newspaper headline announces: “Baseball Game Defeats Bond Issue” and the dispatch reports that in a certain city, interest in the championship game in a minor league so engrossed the attention of the people that too few voted to give the project the majority required by law.
TYPES OF CITIZEN ORGANIZATIONS
There are several distinct types of citizen organizations acting as agencies for civic betterment. We have societies for the accomplishment of specific reforms, such as smoke abatement, better housing, supplying pure milk, or the establishment of civic service upon the merit system. There are associations interested generally in all that looks forward, such as city clubs, bureaus of municipal research, and improvement
associations of various kinds. There are groups primarily for commercial purposes, but which see in a well governed community an asset of no mean value. Chambers of commerce, merchants associations, and real estate exchanges are of this character. These latter are taking an interest in public improvements because it is good business to do so. All of these types of organization are usually non-partisan in character and, because of the apparent disinterestedness of their motives, exert a more powerful influence than otherwise might attend their efforts. To this list should be added another agency, which is the advisory board. This is found more commonly in German cities than in our own. It consists of a selected group of townsmen interested in some civic enterprise to whom those in official charge may look for advice and support. This unofficial body has no legal control, but it exercises a real influence over public policies in its sphere and is a form of citizen endeavor which might, with profit, be employed more extensively in our own country.
Civic organizations, whether for the accomplishment of a specific reform, or for a more general program of betterment, are of two types. The one is militantly active in furthering its purpose. It aims a searchlight on specific difficulties and, through the agency of an aroused public opinion, seeks to accomplish definite improvements. The other is educational. It maintains an open forum for free discussion of public affairs and hopes through the diffusion of a wider knowledge to arouse citizens to a more active interest in civic matters. Each type has its place; but the machinery of each differs, and an attempt to employ a society organized on one plan for purposes for which it is not adapted may prove disastrous.


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THE MILITANT GROUPS
The more combative type of organization is usually a smaller group, -whose members can be aggressive in promoting its aims. Care must be taken in selecting its membership that none be included who is not in sympathy with its purposes. An illustration of this need for prudence may be taken from an episode of a few years ago in a typical American city with a thoroughly organized political machine. There existed in this community a healthy group of neighborhood societies known as improvement associations. Their purpose was to rectify conditions in their neighborhoods and to secure needed betterments. Each society had its corps of officers, and selected delegates to a federated body which sought to co-operate with the constituent organizations in advancing their ends, as well as in furthering projects of citywide importance. But the independence and aggresiveness of these associations were not always pleasing to the political interests which dominated the affairs of the city. Criticism of the administration of public affairs was resented. Attention drawn to matters which might otherwise be overlooked was frequently embarrassing. A fight for control of the associations ensued, and, as they were captured one by one, the queries concerning public policies became fewer and less insistent. It is not difficult, to seize the reins of government of such bodies. These associations are not closed corporations. They welcome as members all who evince sufficient interest in community welfare to allow their names to be proposed and to subscribe to nominal dues. When the attention of the members wanes, a prearranged coup d’etat can be staged, and a well organized minority may seize the helm. One after another of these associations was commanded in
[Decembei
this way and delegates elected to tht federated society who were not onlj under the domination of the prevailing political party, but a majority of th< representatives were actually on th< public payroll. It is needless to adc that these societies have, since thii time, remained quiescent.
The importance of this principle if well recognized by so active a fighting organization as the trade union. It ii one reason for its reluctance to join witl welfare associations or to become idem tilled with those whose only basis o affiliation is a professed interest in th< laborers. Its membership is limited t< workers whose economic status is on thi same basis as that of their associates They recognize that when one’s treas sure is on one side of a controversy thi heart is likely to follow. But be the] never so guarded in their acceptance o members, now and again those will b< admitted whose purpose is not to fur ther their ends, but to thwart them Instances are related of those wh< have joined the union and have becom influencial leaders, all the while servin; as the paid agents of an employers group—their real masters—and re porting from time to time the actions plans, and purposes of their industria enemies.1
A fighting organization must be com posed of fearless men who realize tha opposition of political or commercia interests is likely to mean personal at tack. It must refrain from alignmeu with any political party even though i seems to have kindred interests; othei wise it will quickly lose the confidenc of the people in its disinterestedness it itself does not become biased. 1 must be organized for quick action an must possess means of publicity i order that its one weapon, publi
1 Hearings before the Committee on Educatic and Labor, U. S. Senate, July, 1921. Pursuai to S. Res. 80. Washington [G. P. O.], 1921.


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opinion, may be quickly brought into play.
THE OPEN-FORUM ORGANIZATIONS
The open-forum type aims to secure as large a membership as possible in order to make its influence felt in many quarters. It need not scrutinize its membership so carefully, since militant action is not required of them. Its committees may investigate and study problems of government to secure a wider acquaintance with public questions. If its work is done wisely and well, it can hardly fail to result in the formation of separate bodies to go out from this parent group on special missions and assume aggressive attitudes. But the main function must remain primarily educational in character. Such a society is extremely vulnerable if it skirmishes with political or industrial organizations. The latter are certain, sooner or later, to defend themselves by attempting to control the society. Since membership is open to all, it is not difficult to wreck the association by having those subservient to party dictates, or agents of special interests, join the club in sufficient numbers. While an open-forum society may occasionally adopt martial tactics, a continuance of such a course is certain to result in reprisal.
But even though associations of this character are not interfered with by outside influences, difficulties are quite sure to arise within their own memberships. In a society formed to effect a definite reform, differences of opinion may exist as to methods, disputes may arise over incidentals; but there is a strong bond of unity of purpose to control the helm and hold fairly steadily toward a recognized goal. The members of a club for general civic betterment will invariably find a divergence of opinion among
themselves. If any active policy is decided upon, a minority will find themselves in the awkward position of seeming tacitly to support a position to which they may, in fact, be opposed. The result will be that they will either become lukewarm in their interest in the society or, wounded in pride because personal advice is not taken, fall back upon their inalienable right to resign with all the sang frond of a cook “chucking her job.” “Open-forum” clubs which become militant usually have most unstable membership lists. When their lines of activity please certain groups, recruits are secured who drop away when the course steered is less pleasing to them. After a large part of those in the community interested in civic affairs has passed through the mill, those remaining are usually too few in number to have any great influence toward civic reform.
NEED FOR CIVIC ASSOCIATIONS AND AGENCIES
It may be one of the disadvantages of a democratic society that there is no well defined group with a feeling of responsibility for the conduct of public affairs; that responsibility is so diffused as to make its recognition ponderous and difficult to arouse. If inconvenienced or disturbed because of the policies of our government, we know our misfortune is shared by others. We are prone to accept what fate has to decree with grim humor and turn our attention to private affairs. For this work of arousing a sense of responsibility for public acts, civic associations are needed. They must not only help to form an interested and enlightened public opinion, but must see that this opinion, when formed, finds expression in public acts.
It often requires no little self-restraint. for associations organized to learn about public questions to refrain


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from embarking upon crusades when the need for a campaign has suggested them. Study of the questions, or even the emotional appeal of an orator often stirs them. Are they to remain inactive in the face of glaring abuses? Will they be nothing but a debating club or a knitting society? And so many a society formed in all sincerity for self-enlightenment loses sight of its purpose and yields to a demand for a quite distinct type of work. Many a conference for an honest exchange of opinion becomes a partisan organization as its members strive for ad-
vantage in position and try to advance their views. There is need in the communities in which we live for active associations of citizens. These we must rely upon in large measure not only for the enlargement of the scope of our knowledge, and for popularizing what may be well known to specialists, but also for pressing to accomplishment programs of reform. But their success in the development of our political institutions will depend in large measure on their ability to shape their own organizations for the specific ends they have in mind.
THE INDETERMINATE PERMIT FOR UTILITIES SERVING MUNICIPALITIES
BY HARRY BARTH University oj Oklahoma
Several states, starting with Wisconsin in 1907, have adopted the indeterminate permit. The advantages and disadvantages oj such a permit are set forth in this article. :: :: :: :: ::
The indeterminate permit, as a substitute for the usual franchise limiting the operation of a utility to a definite term of years, entered into the field of practical politics when Wisconsin in 1907 established this system as the law of the state. Since that time, it has been adopted by a considerable number of states in some form or other. The state of Indiana accepted it for all utilities in 1913. Ohio passed an act providing for indeterminate permits for street railway companies in 1913. California accepted the idea in what is known there as the resettlement franchise act of 1917. This applied only to street railways. Arkansas accepted the principle for all public utilities by Act 571 of the general assembly of 1919.
This was repealed, however, at the next session of the legislature. The state of Louisiana by Act 94 of the extra session of 1921 adopted an indeterminate permit law for cities having a population in excess of 100,000. Minnesota in 1915 accepted the principle for telephone companies only. In 1921 the system was extended to street railways. The indeterminate permit principle has also been accepted in isolated cases throughout the country. It has often happened that a city has provided for the indeterminate permit in the absence of state legislation on the subject. An example of a city which provides for the indeterminate permit is Kansas City, Mo. In the charter, recently adopted, provision was made for this system.


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The public utility companies have been thoroughly converted to the system, and in many states they are distributing educational matter on the subject quite widely. The American Electrical Association received a report on the subject from a special committee delegated to study the matter at its convention in Atlantic City, N. J., October 1924. The report was distinctly favorable, and the Association formally approved the idea. The Investment Bankers’ Association of America has also approved of the plan in principle. The National Association of Railway Utility Commissioners, at its convention in Detroit in 1922, formally endorsed the indeterminate permit.
Due in large part to the effort of public utility concerns, determined efforts were made at the last session of the state legislatures to secure an extension of the system. Under pressure from the utilities, which frankly sponsored the idea, the state of Oklohoma accepted the indeterminate permit. Much printed matter was distributed, and a definite campaign of education in the press was also undertaken. The law went into effect on June 26, 1925. In Illinois, likewise, pressure has been brought to secure its passage. In Kansas the indeterminate permit is being widely advocated. These examples are merely illustrative of a general movement to adopt the indeterminate permit principle.
FEATURES AND BENEFITS OF INDETERMINATE FRANCHISE
There is nothing obscure about the indeterminate permit idea. It simply adopts the view that a utility should be given the right to operate, as long as it gives adequate service at a reasonable rate. The utility is told to establish services without fear of having its right to use the streets and alleys denied it at
some future interval. It is told, on the other hand, that in case it does not give reasonable services it will have its right to serve the city cut off at any time.
Many benefits are prophesied for the utility from the indeterminate permit. In the first place, it is stated that amortization need not be extended over the length of the franchise, which is necessarily for an arbitrary number of years and bears no relation to the actual life of the property. If, for example, a utility secures a franchise for twenty-five years, prudent policy should dictate that the value of the property must be taken out of the earnings before the expiration of the twenty-five years. Otherwise, the utility may find itself with a distributing system on its hands but without power to sell its services, through the expiration of the franchise. This contingency would of course seldom arise. The usual experience, when a franchise expires, is for considerable bickering to take place, followed by the renewal of the franchise. The danger, however, always exists that the franchise may not be renewed, and it is wisdom therefore to guarantee the investment against loss by securing from current income enough additional income to cover the money invested. Where the property depreciates 100 per cent during the life of the franchise, rates need not be abnormally high to provide for the recoupment of the investor in case the franchise is not renewed. But this will not always be the case; in fact, it will seldom be the case.
In the second place, it is stated that the utility is benefited by the fact that it does not have to enter into politics. Where a franchise is subjected to periodic elections to determine whether it may be renewed, the utility operating under the franchise must necessarily engage in local politics. It must estab-


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lish connections with local bosses. It must engage in petty deals with ward politicians. It must subject itself to constant harassing.
In the third place, it is stated that the indeterminate permit has the additional advantage of making possible lower interest rates for utility loans. Utility companies have not proved that the indeterminate permit, where it exists, actually produces a lower interest rate. They have shown no figures. However, from the viewpoint of theory, it should have that effect. Where no danger is run of failure to secure a franchise renewal, an investor will probably be willing to take a lower price for his money than where such danger is encountered.
These, then, are the chief advantages claimed for the indeterminate permit from the viewpoint of a properly managed utility. Where a utility is dishonestly operated, the advantages are even greater. A utility may under certain conditions by means of the indeterminate permit escape regulation altogether. If the revoking process is difficult, it need no longer fear the wrath of the consumers in case of inadequate service. It runs no great risk of being deprived of its franchise.
DANGERS AND ADVANTAGES TO CONSUMERS
There are, of course, dangers inherent in the system from the viewpoint of the consumer. What will happen if the regulating body does not function properly or if revocation is difficult? The utility will then be in the position of having a permit to run indefinitely. It may fix rates at any point it pleases, and be grossly lax in regard to services.
On the other hand, to the consumers, the indeterminate permit has certain advantages. With amortization adjusted to accord with depreciation, a substantial saving in rates may result.
Lowered interest charges, theoretically at least, should also lower rates. Witl operating expenses cut, through tin savings in expenditures for politica influence, rates may also be lowered All this assumes, of course, that then will be savings, and that the saving; will actually accrue to the consume: rather than the investor. Whethe: such will be the result depends, o course, upon the honesty of the man agement and upon the effectivenes; of the regulation to which the utility is subjected.
Be this as it may, however, the sys tern of indeterminate permits contain possibilities of savings for operator investor and consumer. It probably is an institution, which, sooner o later, will become a fixture in publi utility management. Where a rea system of indeterminate permits i adopted with proper safeguards, ther will be little grounds for objection.
SOME COMPLICATING PROBLEMS
What complicates the situation i that the indeterminate permit is seldom adopted alone. The issue is not clean cut. What usually happens is that . bill is introduced uniting the indeter ruinate permit with the certificate c public necessity and the delegation c regulatory authority to a central con trolling organization. This naturall; confuses the problem. Is the elimina tion of competition unquestionably good thing? The adoption of a schem of public necessity certificates make this assumption. There is reason fo questioning the institution in th electricity field, for example. There i some question as to whether it is wis to prevent competing companies froi stringing electric wires on poles an jointly serving the citizens. This : especially true where there are seven groups of companies, each controllin water rights and each in a position t


THE INTERMEDIATE PERMIT
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give service. There will be duplication of equipment, but after all this is not a very large item in an electric distributing system. A lower rate, resulting from the competition, may more than justify the duplication. This does not mean that the elimination of competition is necessarily bad. The only point, which is being made here, is that a law which combines both the indeterminate permit and the certificate of public necessity may be opposed, not because of the indeterminate principle, but because of the certificate of convenience.
Where the indeterminate permit is combined with state regulation of a utility, what happens is that an old fight appears in a new form. In the case of Wisconsin, Indiana and Arkansas, the indeterminate permit is granted by the corporation commission, and the same organization is given power to revoke it. In the state of Oklahoma, the indeterminate permit is to be revoked, not by the city in which the permit has been granted, but by the state legislature. As a result, not the indeterminate permit principle, but state as opposed to municipal regulation- becomes the storm center. This was especially true in Oklahoma. There was little objection voiced against the indeterminate permit idea. What was objected to was placing in the hands of the legislature the power to determine for four hundred cities when the utilities serving them were acting contrary to the general welfare and should as a result have their permits revoked. It seemed to most city officials that the indeterminate permit idea was being used to camouflage an attempt to eliminate all regulation. It was felt that the question of control and the public utility problems were being thrown into the legislative pool, in which they would forever be submerged. It
seemed that a legislative dog-fight was to be depended upon for utility control.
EXPERIENCE OP WISCONSIN AND INDIANA CITIES
An investigation as to the effects of the indeterminate permit law in Wisconsin and Indiana throws little light upon the indeterminate permit. In both these states, there was the same confusion of the indeterminate permit, of the certificate of public convenience, and of state control. A letter was sent to the city attorneys of the larger cities in both states, requesting opinion in regard to the merits of the indeterminate permit. Invariably the answers dealt, not with the indeterminate permit, but with the effectiveness of state as opposed to municipal regulation. The truth of the matter is probably that the indeterminate permit feature was considered only in so far as it deprived the cities of the last vestige of control over the utilities. Even with state regulation a vestige of municipal control exists if the city grants a shortterm franchise. With the extinction of this control through the indeterminate permit, the city has no weapon to compel adequate service whatsoever. The letters from the city attorneys indicate the degree to which state commissions have regulated utilities to the satisfaction of the municipal officials.
As a general rule, the Wisconsin cities were satisfied with commission regulation. Only one Wisconsin city gave a negative answer. A letter addressed to the city attorney of La Crosse brought the reply that, “it has been of doubtful value. The effect has been drawn-out litigation rather than effective results.” This, however, was the only unfavorable reply out of a dozen. The rest were generally of the tenor that, although state regulation was looked upon with suspicion in the beginning, the caliber of the Wisconsin


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commissioners was such as to cause both rates and services to be adequately regulated, and probably better regulated than when each city tried to do the job individually. Judging by the replies, the indeterminate permit, the certificate of public convenience and state regulation are working acceptably in Wisconsin.
The replies from lndiana are tales of broken illusions, of deluded hopes. Few letters were received containing a good word for the Indiana commission. A reply from the city attorney of New Albany is typical. This follows:
Answering your letter of March 19, I have to gay:
1. It is true our state has the remarkable thing known as an indeterminate permit for utilities. Or rather, an indeterminate permit has our state.
My advice to your League is to ‘‘lay off” from that particular invention of the devil. . . .
As soon as adopted here, all utilities surrendered their franchises, that is to say: they were enabled to get out from under all their contractual obligations under which they occupied the streets, alleys and public places of the city. They did not give up their occupations of the streets, etc., but they very cleverly stepped out of the few things they had agreed to do, in order to get their franchise from New Albany.
For instance, they had agreed to supply free water to church organizations, and free water to the hospital. They stopped doing this very quickly.
It is proper to say that in this state, cities have no charter but are absolutely creatures of the legislature.
Your state, and your cities are young, and my advice is to get a charter for your cities or any other basic authority which will preserve home rule.
2. Our state commission does not protect our citizens in rights and service. The men composing the commission are all right, and honest, but they simply cannot discharge all the duties which they are called upon to perform; besides, in many cases, as soon as a man gets thoroughly acquainted with the duties of the public service commission, he resigns and is employed as an attorney for the affiliated utilities.
A reply from the city attorney of East Chicago also indicates the trend:
My opinion is that the theory is all right, but that its practical operation in any particular state is a serious matter. One thing is evident, the interest of the city and the utilities are not just the same, and the utilities are always in favor of the public service commission. My opinion is, cities should not surrender their power over the streets and that the city should name the conditions under which utilities may occupy the streets, and that the utilities should not be given power to avoid their contracts except as to rates.
The city attorney who wrote this states, however, that he sees within his own experience a change in the attitude of the commission more favorable to the consumers.
The city attorney of Peru states:
Our experience has been that in some instances the commission has served in a beneficial way to the citizens, but in most instances the utilities seem to have the strongest pull with the commission.
The city attorney of Hammond states:
I think all cities in Indiana are tired of the public service commission. We are for home rule, and we have made several attempts in the legislature to get away from the public service commission, but have always failed.
The street car company, electric light companies and gas companies that have franchises with the city have all surrendered their franchises to the public service commission who fixes the rate and always fixes it high enough, and my advice to the Municipal League of Oklahoma would be to stay away from the public service commission as far as they can.
The city attorney of Logansport states:
Replying to your favor of the 19th instant, in relation to the indeterminate permit for utilities, the public utility commission law of our state forced upon us the indeterminate permit for utilities. This law was fostered and promoted by the public utilities. It does not inure to the benefit of the cities, towns or taxpayers.
To make you a short reply, it has been our ex-


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perience that this is a good law for the utility, but a very poor law for all other parties concerned. This utility commission has given in our own town an indeterminate permit to the interurban and street car lines. We have had a great deal of difficulty with this feature of the proposition in the pavement of streets and the control of service in relation to these two particular lines. They have raised our telephone rates and in our privately owned public utilities of light and water, because our city light plant was making money out of which we were hoping to erect some buildings for the city, they cut our rates to such an extent that it will delay our plans, and the ideals we had hoped for cannot be reached. This is only another plan of depriving the people of the right of local self government.
As city attorney, I find that this form of control tends to centralize the government of the state in the capital, offer jobs and appointments for lame ducks, and for lack of interest or finance the citizen and taxpayer usually gets the worst end of the bargain.
Another city attorney states:
It is a question whether the public service commission serves the public with the same fidelity that it serves the large utilities. The large utilities in this state and other states have an organization, and they appropriate out af their net earnings of the various corporations a certain per cent which is used as propaganda, and this propaganda is used to maintain public sentiment in favor of, various bureaus and commissions, and particularly the public service commission. From this it might be argued with some degree of reason that the service corporations see in the public service commission some advantage or benefit to them which would not inure to them if they had to deal with the common council or other governing bodies of towns and cities, and had to depend on their franchise rights and rights prescribed by the various statutes.
There has been much political agitation in this State about doing away with so many bureaus and commissions, and the public service commission has come in for its full share of criticism. . . .
My own observation has been in matters which came before the public service commission in which our city was interested relative to electric light and power, gas and water and as good or better results could have been obtained without
the aid or intervention of the public service commission.
These letters indicate the general opinion of Indiana cities. They indicate that the city officials at least feel that the public service commission is less able to deal with municipal utilities than would be the cities themselves. They indicate a strong feeling for home rule. They indicate a belief that the utilities have managed to ingratiate themselves with the commissioners. They indicate a belief that a commissioner will be unquestionably swayed in his judgment by the fact that at the expiration of his term he may receive a good position with an increased salary with a utility. They indicate that the cities feel an inability to cope with the high powered attorneys who represent the corporations before the public service commission.
These letters*, of course, give no indication as to what the opinion on the indeterminate permit itself would be. Where a city has power to determine whether the permit may be revoked, the situation will be totally different. It is at least doubtful whether the utilities would be so strongly in favor of the system with municipal regulation. The chances are that it is not the indeterminate permit, but state regulation which is desired. It is interesting to note that the laws of Wisconsin, Indiana, Ohio, Oklahoma, Minnesota, and Arkansas either provide or provided for state control, with the indeterminate permit feature as secondary.
ADEQUATE SAFEGUARDS NEEDED
The indeterminate permit should be surrounded by adequate safeguards. Where municipal control is operating satisfactorily, it may well be adopted, but it should specifically provide for revocation by the city. In addition, the conditions under which it may be revoked should be thoroughly set down.


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Otherwise, thanks to the 14th Amendment of the federal Constitution, it will unquestionably be the cause of litigation. Judicial squirmishness, where property rights are involved, is so intense that no danger should be nm of discovering in the end that the utility has received not a revocable permit but a perpetual franchise. It should probably be laid down in the permit that the utility may be ejected from the city within a stipulated period, if the citizens at a general election have so determined. It should be provided that the citizens shall be the sole judge as to whether service has been adequate and rates fair. In order not to be unfair to the utility, an affirmative vote of 60 per cent of the citizens should be necessary for ejection. Probably, also the concern should be given five years to wind up its affairs.
Where local regulation has failed, and state regulation is looked upon as desirable, the indeterminate permit may be adopted also. It should not be assumed, however, that because municipal regulation has proved unsatisfactory, it should be abandoned. The mere failure of municipal control is not in itself a guarantee of state success. It should not be forgotten that there are grave doubts as to the ability of a public service commission, sitting at the state capitol, however honest it may be, to regulate the rates in a number of growing cities. The administrative problem is almost Herculean. The desirability of overloading our central administrative systems is questionable. The ability of men to bear the burden which centralization throws upon them is extremely doubtful.
Should the indeterminate permit be accepted where the state is the regulating body, the authority to revoke the permit should assuredly be vested in the public service commission. The Oklahoma plan of permitting the legis-
lature to be the judge is vicious. The legislature is totally unfit to act in this capacity. It is already overburdened. An individual legislator already has more problems to think about than he can possibly handle. The many intricate questions involved in regulating utilities require expert judgment rather than the opinion of amateurs. In addition, the Oklahoma legislature is limited in its sessions to around seventy days out of every two years. It is difficult to understand how such a body can successfully determine whether utilities in several hundred cities are acting satisfactorily.
Where the public service commission has power to control utilities, it should certainly be given complete power to fix both rates and services. It may seem strange that a public service commission can be created without adequate powers of this character, and yet such is the case. The sine qua non of state regulation is a regulatory body of adequate powers.
In addition, the commission should be granted ample appropriations. The intricate task of controlling fifty or sixty utility companies cannot be clone with insufficient funds. Yet there are few commissions, at least in the Middle West, which are not hampered through lack of money. This is parsimony rather than economy. Our state regulating commissions are in a position to perform possibly the most valuable service which states render, but they cannot be successful if they are handicapped through lack of finances.
The state of Oklahoma has an institution which is proving valuable. This is a special counsel to represent the cities before the corporation commission. A well qualified attorney now represents the cities before this organization. He is paid out of state funds, and performs a valuable function. The only defect of the scheme is that


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MUNICIPAL ADMINISTRATION
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the agency is not sufficiently well provided for financially. In some months the counsel has the impossible task of preparing a brief a day. He has been in court for two weeks at a stretch. No lawyer should be compelled to work under such difficulties. With increased appropriations for this department and with increased powers for the corporation commission, state regulation in Oklahoma would have a real opportunity to prove its merits. As it is the cities cannot provide counsel equal in training and experience to the counsel of the utilities. Usually the counsel provided performs a labor of love as it is underpaid. It is only seldom that it can devote full time to cases before the commission. A better equipped counsel for cities in the corporation commission would tend to eliminate dissatisfaction.
Another prerequisite of a satisfactory indeterminate permit system would be definite specifications in regard to the revocation of permits. In at least one state, Oklahoma, it is provided that the permit may not be revoked unless no
injury is done to the owners of the utility and unless the citizens of the entire state are being harmed by a continuance of the permit. Qualifications such as these may be interpreted by the courts so as to make revocation impossible. At best, vague limitations of this character can lead only to endless litigation and strife with accompanying increase in the work of the courts and decrease in popular regard for the institutions of government. It is difficult to see how the indeterminate permit can be revoked without endless conflict over the clause forbidding impairment of obligations and the due process bug-a-boo.
One excellent feature of almost all the laws is provision for municipal purchase. This is a blanket safeguard against the worst abuses. If conditions become unbearable, the city as a last resort can buy the utility and operate it. This would involve embarca-tion upon municipal ownership, which is at best hazardous. Still it is a last bulwark, and should never be omitted from an indeterminate permit law.
MUNICIPAL ADMINISTRATION AND FEDERAL HEALTH ACTIVITIES
BY JAMES A. TOBEY Institute far Government Research, Washington
The federal government appropriates annually sixty-five million dol-
lars for health and medical relief.
When a city official wishes to secure authoritative information on the various phases of public health he may get it from many different federal bureaus. If, for instance, he wishes data or assistance on school hygiene, the division of school hygiene of the bureau of education in the interior department,
or the public health service in the treasury department can give it to him, while the bureau of home economics in the department of agriculture issues an excellent pamphlet on school lunches. If information on child hygiene is desired, the city official may get statistics from the division of vital statistics of


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the census bureau in the department of commerce, statistics and advice from the children’s bureau in the department of labor, still further material from the public health service, an outline for study on this topic from the federal board for vocational education, and information on foods and child feeding from the department of agriculture. There are also one or two other sources of federal help on this subject.
Similar examples could be given for many other branches of public health. Rural hygiene, sanitary engineering, nutrition, industrial hygiene, and various other topics are investigated, and in a few instances, regulated by different bureaus of the federal government. In fact, there are at least thirty separate bureaus or other branches of the national government which are interested, directly or indirectly, in some phase of the public health, though, of course, with only about one-third of this number is public health the major and primary duty of the bureau. No wonder that the municipal official is sometimes a trifle perplexed as to where to turn for advice, data, standards, or laws. If he goes to Washington to confer, he must wander all over that city in order to locate the diffused offices from which public health is dispensed.
Although so many disconnected bureaus of our government, scattered through the ten executive departments and the several independent establishments, are concerned with public health, duplication of effort is not as great as might be expected. The field is so broad and there is so much to be done, usually with limited funds, that actual overlapping is not prevalent, though there is considerable duplication of functions. Sanitarians, experts in political science, and state and municipal officials are agreed, however, that
[Decembei
the now diversified health activities of the federal service should be effectively co-ordinated and, to a considerable extent, centralized. Such a step need not involve any expansion of existing work, nor necessarily the creation of a new department of health with a secretary, but merely a better re-allocation of the bureaus actually engaged in health duties, with a single executive, at least an assistant secretary, in charge.
RESPONSIBILITY PRIMARILY THE STATES’
Under the American plan of government, the care of the public health is primarily a state responsibility. It forms a part of the police power, which was enjoyed by the states before the federal constitution was adopted, retained by them afterwards, and, in fact, specifically reserved to them by the tenth amendment. The actual administration of the police power has been delegated in a large measure to local governments, as the agents of the state, a principle which is sound and has often been upheld by the courts. The federal government does, however, have certain legitimate public health functions. These include the prevention of the entry of disease from without, that is, foreign quarantine; the prevention of the interstate spread of disease; research into public health problems; and popular health instruction. The treaty making power and the authority to impose taxes may also involve public health matters, and taxation is often used for regulatory as well as revenue raising purposes. The federal government may also be a central source of advice and information on health matters and may assist states or municipalities when invited to do so. It has frequently given such co-operative service on request.


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THE FEDERAL AGENCIES
The chief federal health agency is the public health service. Up to 1912 this bureau bore the title of marine hospital service. It was definitely organized in 1870, though medical relief to seamen and others had been given by the service since 1798, when congress passed a law authorizing collectors of customs to collect twenty cents a month for each seaman of the American merchant marine in order to provide necessary medical aid. This service came under the treasury department and so, for historical reasons only, the public health service is to-day in that department. The scope and duties of the service have been expanded from time to time until to-day it receives about nine million dollars annually, has a personnel of over 4,000, and is organized into eight divisions, including (1) scientific research, (2) domestic quarantine, (3) foreign and insular quarantine and immigration, (4) sanitary reports and statistics, (5) marine hospitals and relief, (6) venereal diseases, (7) personnel and accounts, and (8) general inspection service.
The children’s bureau in the department of labor is another important federal health agency. It was created in 1912 to investigate and report on all matters affecting child welfare, especially infant mortality, the birth rate, orphanage, juvenile courts, desertion, dangerous occupations, accidents and diseases of children, and employment. It administered the first federal child labor act, which was declared unconstitutional in 1918, and in 1921 was charged with the administration of the federal maternity and infancy act, by which federal subsidies are granted to the states. This bureau has a personnel of about 160 and is organized into divisions of: maternity
and infancy, child hygiene, industrial, social service, statistics, and editorial. For 1925 it received $1,334,012, of which $1,007,092 was for maternity and infancy, to be spent by the states.
The department of agriculture has a number of bureaus interested in public health. The bureau of chemistry, with an annual appropriation of well over a million dollars, does the analytical work under the pure food and drugs act of 1906, while the bureau of animal industry receives about four millions for the inspection of meat intended for shipment in interstate commerce. This bureau also attempts to eradicate tuberculosis in animals and does other work affecting human health. The bureau of home economics studies human nutrition, receiving annually over $100,000 for this and other home economics investigations. There is in the department a bureau of dairying, and the bureaus of entomology, public roads, agricultural economics, and the extension service all have some kind of a health interest. The latter service has over 900 home demonstration agents who do much health work in rural counties.
The departments of interior and commerce likewise are concerned with national vitality. The office of Indian affairs in the former department has a medical division, and the bureau of education maintains a division of school hygiene and also looks after the health of the natives of Alaska. The bureau of mines is charged with investigations of improved methods of mining, particularly from the standpoint of health and safety. In commerce we find vital statistics collected by a division of the bureau of the census.
reorganization needed
There are still other bureaus and independent establishments which might


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be mentioned, but enough have been cited to indicate the dispersion of health functions in Washington. These various bureaus have gradually evolved over a long period of time. In fact, all the executive departments represent a hodge-podge of administrative duties. Every president from Roosevelt to Coolidge has recommended that they be reorganized, and attempts have been made from time to time to do so, but congress has not yet seen fit to pass the legislation needed. A new department of health has been advocated on a number of occasions and a serious, but unsuccessful attempt was made to secure such a department in 1910 and 1912, the movement having the indorsement of President Taft.
More than fifteen million dollars is appropriated annually to the various public health agencies of the government, and another fifty million goes for medical relief. A centralization of the health functions would not only conduce to efficient operation, but undoubtedly could demonstrate an actual saving, thus satisfying those who are desirous of economy in government. Municipal and state officials and the public generally would be better off if
they could deal directly with a central federal health authority. Pamphlets, of course, may now all be purchased from the superintendent of documents, but the various bulletins desired can be obtained free only by applying to many bureaus. Printed matter is not, however, the only basis for contact. A certain amount of advice and counsel and even of leadership is essential. Since we have 48 state sovereignties, the federal government, as a unit, must supply such scientific guidance as is desired by the states.
A study of all the federal health agencies is now under way under the auspices of the Institute for Government Research. Following this first step of assembling all the facts, the second will be to suggest a practical plan for co-ordination, and the third to induce congress to adopt it. When the second and third stages are reached, the advice and support of municipal officials will be needed and will be of great value. Correlation of federal health work means the enhancement of national vitality and that means not only health and happiness, but national progress and a contribution to the advancement of American civilization.


CHIEF ELEMENTS OF CONTROVERSY IN PUBLIC UTILITY RATE MAKING
IV. REPRODUCTION COST AND CHANGING PRICE LEVEL
BY JOHN BAUER
Public Utility Consultant, New York City
“ The only rational course is to base rates definitely upon actual cost and place rate making upon an exact and scientific foundation.” ::
In the preceding articles I discussed depreciation as an element of controversy in public utility rate making. The position taken was that depreciation represents costs of property chargeable to service, and that the whole matter is a question of cost apportionment. So far as the investment is concerned, under proper accounting the original cost of all units of plant and equipment used in operation is shown in the property accounts, the part of such original cost which properly belongs to past operation is stated in the depreciation reserve. The difference between such original cost and the depreciation reserve, is the cost that belongs to future operation and is the net monetary investment in the property. If these facts are not shown properly by the accounts, they may be established by appraisal.
If the principle were definitely established in law that reasonable rates should be based consistently throughout upon the cost of service, then the net investment as reflected by the original cost of the properties less depreciation, would be the proper basis for rates. As to operating expenses and taxes, the actual reasonable cost has become accepted for rate making, but the return on the properties has not been placed upon a definite cost basis. We have here the element of present controversy which has caused
the great bulk of rate litigation and the deadlock in regulation.
SMYTH V. AMES “FORMULA”
The difficulty is that the so-called rate base on which the owners of a utility are entitled to a return, was never exactly defined either by the legislative bodies providing for regulation or by the courts which have passed upon questioned validity of rates.
Nearly thirty years ago the Supreme Court of the United States laid down a general rule for determining the necessary return on the properties. In the famous case of Smyth v. Ames, the Court held that a company is entitled to a fair return on the value of its properties, and in determining such value consideration must be given to
. . . the original cost of construction, the amount expended in permanent improvements, the amount and market value of its bonds and stock, the present as compared with the original cost of construction, the probable earning capacity of the company under particular rates prescribed by statute, and the sum required to pay operating expenses . . . and are to be given such weight as may be just and right in each case. We do not say that there may not be other matters to be regarded in estimating the value of the property. What the company is entitled to ask is a fair return on the value of that which it employs for the public convenience. On the other hand, what the public is entitled to demand is that no more be exacted from it for the use of
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a public highway than the services rendered by it are reasonably worth.
At that time this statement was reasonably adequate. The decision was made in 1898, when there was no particular issue between original cost of the properties and reproduction cost. With the exception of land, for the following ten years, or even up to the World War, the reproduction cost of utility properties was probably no greater in most instances than the original cost. Consequently, during that entire period, when the courts spoke of reproduction cost they had in mind no issue perceived as materially affected in contrast to actual cost of the properties. “Fair value” could be assumed to be determined equally well by reproduction cost or actual cost. But the actual-cost figures, prior to the more recent commission control, were seldom available; hence reproduction cost was a common method of valuation, without any thought of conflict with actual cost.
“formula” becomes inadequate
But this situation changed suddenly after 1914, with the sharp increases in prices and the much greater cost of all classes of construction. Then a great difference burst forth between reproduction cost and original cost, and the issue stood clearly drawn before the commissions and courts. The old statement of Smyth v. Ames, which had done service for fifteen years, became inadequate under the new conditions when there were great differences in the elements mentioned. Previously “fair value” might be determined by either original cost or reproduction cost, if the amounts were properly ascertained, without affecting seriously the relative rights of the investors and the public. But afterwards it became important which method was used.
[December
The time had come when the loose statement was no longer workable, and when an exact definition or formula was necessary. But the old phrases had done service so long, and the elements of “fair value” detailed in Smyth v. Ames, had been cited so often, that they could not readily be abandoned. Consequently we still have the same so-called “formula”, and are struggling with the uncertainty as to what it means. Each side in every case is practically free to make its own interpretation. We have an era of litigation instead of regulation.
ATTITUDE IN RECENT DECISIONS
Perhaps the situation is not quite so chaotic as the above description seems to imply. The Supreme Court has after all given some intimation of what it would deem “fair value” under present conditions and has indicated some reasonable limits to the claims made by interested litigants. On the one extreme it has recently declared flatly that a company is not entitled to a return on the reproduction cost. In the Georgia Railway and Power Company case, Judge Brandeis, speaking for the majority, stated that
the refusal of the commission and of the lower court to hold that, for rate making purposes, the physical properties of a utility must be valued at replacement cost, less depreciation, was clearly correct (262 U. S. 625, 682).
In this case the valuation fixed by the Railroad Commission of Georgia was based predominantly upon actual cost, or pre-war costs, except that $125,-000 was allowed as appreciation of land. The total valuation approved was $5,250,000 compared with $9,-500,000 claimed by the company on the basis of reproduction cost less depreciation. In sustaining the commission’s appraisal, Judge Brandeis said:


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Here the commission gave careful consideration to the cost of reproduction, but it refused to adopt reproduction cost as the measure of value.
From this case it can be strongly argued that as an ultimate test of confiscation, the Supreme Court will give preponderant consideration to actual cost, less depreciation; i.e., judging the fairness of the return, on net investment in useful property. Moreover, a survey of all the rate cases passed upon by the Supreme Court does not reveal a single instance of rates declared confiscatory where they brought as much as 6 per cent or 7 per cent return on investment, but failed to bring such a return on reproduction cost less depreciation (or with a substantial allowance for reproduction cost).1
In spite of the decisions thus stated, it cannot be conclusively asserted that actual cost would be sustained if the rates brought a return of 6 per cent or 7 per cent on net investment. Even in the Georgia Railway and Power case, Judge Brandeis called attention to the fact that the commission had given consideration to reproduction cost and had allowed $125,000 as increment in land value. In two other cases, however, one decided on the same date with the Georgia Railway and Power case* and the other three months earlier,1 * 3 4 the Court did emphasize the necessity of giving weight to reproduction cost, although in those cases the rates were inadequate even on the basis of actual cost.1 In a case where
1 See analysis of cases by Judge Brandeis in
minority opinion Southwestern Bell Telephone case (262 U. S. 276).
3 Bluefield Water Works and Improvement Co. t. Public Service Commission of West Virginia, 262 U. S. 679.
3 Southwestern Bell Tel. Co. r. Public Service Commission of Missouri, 262 U. S. 276.
4 See minority opinion by Judge Brandeis in Southwestern Bell case and his statement in Bluefield Water Works case.
the point is clearly the determining issue, the Court may refuse to uphold rates where no weight was given to reproduction cost but where an otherwise adequate return was realized on actual cost less depreciation.
CLARIFICATION NEEDED
The situation is thus fraught with confusion. The issue is clear, but there has been no definite decision because the matter has not appeared before the Court in a sufficiently specific manner to require decision. In the public interest, it is highly essential that two things be done: (1) that cases with the facts and principles properly presented shall be brought to the Court for decision in such a way that the ultimate issue cannot be avoided, and (2) proceeding with constructive legislative action to place rate regulation on a definite and workable basis.
There is no doubt that from a broad public standpoint, which includes not only the interest of municipalities and consumers, but in the long run also the investors in public utility securities, the desirable and necessary basis of rates is actual cost of the properties less depreciation; actual investment made for the public service. The outright acceptance of this fact would put rate making systematically upon a cost basis throughout, and the facts could be kept under definite accounting control. In the case of any one company, only a single appraisal would be necessary to fix the amount of the investment; then subsequently all additions and retirements of property would be shown by the accounts as definite facts beyond dispute. Rates would then be on a scientific basis, and could be raised or lowered without litigation. The rights of the investors and the public would be exactly defined and accurately shown. There would be an


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end to the constant litigation with which rate making has been involved, which has been extremely costly, has produced serious irritation between public authorities and the companies, and has not produced satisfactory regulation for the public or investors. A definite basis of rates is a prerequisite to effective regulation. No body is benefited by indefinite principles and indeterminable facts.
UNDISPUTED RATE BASE ESSENTIAL
The whole matter rests upon the question of actual cost versus reproduction cost as the recognized rate base. If actual cost is accepted we are then in a position to deal with exact facts scientifically determined.
The fundamental objection to reproduction cost is that it does not represent a definite quantity based upon actual facts and capable of constant and exact determination. The result is that there is no positive basis to show at any time whether rates are reasonable or not. With every attempted rate adjustment, a new valuation is required or at least sharp differences of opinion immediately appear as to the rate base.
It is now fairly common knowledge that prices are constantly changing and do not maintain a fixed level for any long period of time. Consider the changes since the Civil War: first a long steadily declining curve down to 1897; then a rising curve till 1914; followed by upward soaring prices during and after the war till 1920; a sharp decline till 1921; an oscillating curve since 1921 ranging near 50 per cent above the 1913 average. But even during the past two years of comparatively stable prices, the range from the lowest to the highest is 47 per cent to 61 per cent above the 1913 average. To-day prices are approximately 230 as compared with the low point of 1897.
[December
What is to be expected for the future? We certainly have little reason to look for any greater stability in prices than we have had in the past. There will be downward and upward swings, with minor oscillations, and these constant changes make reproduction cost an unworkable basis for satisfactory rate control. It would involve repeated valuations with constant guessing and uncertainties. It would promote deadlock in regulation.
SPECULATIVE ELEMENT IN UTILITIES
There is, however, also another serious objection to reproduction cost from a broad public standpoint, including investors as well as consumers; it would preserve and accentuate the speculative element in public utility finance. Consider that on the average about 75 per cent of the actual investments in public utility properties has been made through bond and preferred stock issues and only about 25 per cent through common stock. If this fact is kept in mind, also that bondholders and preferred stockholders are limited to a fixed return on their actual investment, does'it not follow that during rising prices reproduction cost would bring to the common stock increasing returns far out of proportions to the increase in price level, and would stimulate speculation in the stock? Likewise, during long or sharply falling prices, reproduction cost would bring financial pressure upon the company because of fixed interest charges, and ultimately would not only take away all return from the common stock but would bring insolvency to the company. It simply would not prevail against long falling prices, like those following the Civil War, without producing financial chaos in the industry and greatly impairing service for the public.


1925]
COMPARATIVE TAX BATES OF 215 CITIES
753
AN ADJUSTMENT THAT DOES NOT ADJUST
Reproduction cost is urged as a method of adjusting the return to the investors according to the shifting purchasing power of money during rising or falling prices. But, as a matter of fact, does it achieve any such result, which, if it could be satisfactorily attained, would be highly desirable? First, is it not clear that the bond holders and preferred stock holders, the bulk of the investors, would be excluded from any such adjustments? As already indicated, during rising prices they would be held to their fixed monetary return, and during falling prices even their limited payment might be endangered.
But, secondly, even the common stock would get no such direct adjustment as is inferred by the supporters of reproduction cost. During rising prices, the additional money returns would be all out of proportion to the decrease in the purchasing power of money, because the common stock holders would get the total benefit of the higher valuations allowed not only on their own investment but also on that of the bond holders and preferred stock. But during falling prices they would pay the
full penalty for their undue advantage during rising prices; their return would decline in much greater proportion than the fall in prices, and might disappear altogether, with insolvency besides.
This is an extremely critical issue that is not squarely faced by the supporters of reproduction cost. What would happen to common stock if we were to experience a long period of falling prices of 50 per cent during the next thirty years, as occurred after the Civil War?
CONCLUSION
The only rational course is to base rates definitely upon actual cost and place rate making upon an exact and scientific foundation. This will require not only a proper presentation of the cases to the courts for consideration of the broad issues, but also legislative action to establish definite policies and methods for rate making. Otherwise, floundering and confusion will continue indefinitely.
A more comprehensive discussion and presentation of a systematic plan, including an adjustment for the existing investment of the common stockholders, has been set forth by the writer in “Effective Regulation of Public Utilities,” Macmillan, July, 1925.
THE COMPARATIVE TAX RATES OF 215 CITIES, 1925
BY C. E. RIGHTOR
Detroit Bureau of Governmental Research, Inc.
The Review again publishes the comparative tax rates of munici-
palities. Reprints are available.
What is the tax rate of your city, and how does it compare with that of other cities?
These and other questions pertaining to the taxes on property are pertinent today, and are of growing interest to
industries and business, to home-owners and public officials everywhere. On every hand we hear of citizen groups and official committees who are studying the problem of taxation, to learn whether taxes may be reduced and how.


NATIONAL MUNICIPAL REVIEW
[December
754
To make available a current statement of the tax rates and the actual tax burden in cities having over 30,000 population, the Detroit Bureau of Governmental Research has compiled the accompanying tabulation, showing the actual tax rates for 1925, by purposes; the adjusted total tax rates upon a basis of a uniform assessed valuation of 100 per cent; and the tax burden in each city as estimated when consideration is given to the practical application of true value in assessing.
1925 POPULATION LISTED
The cities are listed in the five census groups in order of population according to the estimates of the Census Bureau for July 1, 1925, except in a few instances where no official estimate was made; in these latter cases, the 1920 census was used unless a local estimate was furnished. For cities in Florida, Iowa, Kansas, Massachusetts, New York and Rhode Island, state census figures were used where available and adopted by the Census Bureau. It is obvious that the 1920 census figures result in placing such cities unduly low in the list, but as per capita figures are not used in the tax rate tables, such listing does no great harm.
PROPERTY TAXES ONLY
The tabulation is confined solely to tax rates on property, both real and personal. It serves as a gauge to the contribution to the local units of government from this source, but no indication is given of possible other sources of revenue toward the total operating budgets of the subdivisions. It is known, for example, that some cities receive a portion of a state income tax in lieu of a tax on personal property. The relative proportions of real and personal property are set forth, but that is all it is possible to do in this tabulation.
The tabulation is simplified from that of previous years, the rates being listed only for the four main political sub-divisions—city, school, county and state,—the levy for debt being included this year usually with the unit which issued the obligation. Further, the ranking of the cities according to the amount of readjusted tax rate is omitted, as injustice is done to some cities by such ranking owing to the difficulty of obtaining a satisfactory estimate of the practice of assessing as to full value.
The total tax rate column should indicate, for any city, the aggregate amount of taxes per $1000 of assessed value paid for all purposes by the taxpayer. Owing to the varying legal bases of assessment in several states, however, this total does not afford an accurate basis for comparison of actual tax levy. To make possible such comparison between cities, the total rates have been adjusted to a uniform 100 per cent basis of assessment, as shown in the column “adjusted tax rate.” A range in the total rates is thus disclosed of from $63.85 per $1000 for Fresno to $16.50 for Winston-Salem, omitting Washington with a $14 rate. For Canadian cities, the range is from $46 for Edmonton to $22.80 for Winnipeg. The average for all cities is $31.85.
TAX RATE VERSUS TAX BURDEN
It is not to be assumed, however, that the present day basis of property taxation is at such high figure whpn the real value of the property is considered. It is recognized generally that all taxable property in our cities is not usually assessed at full value, as the assessing officials cannot keep pace with increasing values. The real tax burden in such event is lower than the actual rate, in proportion as the valuation is low.
When attempt is made to determine


1925]
the actual burden, therefore, through further adjustment of the uniform rate according to the practically applied basis of assessment in each city, the average burden is found to be considerably reduced from the average rate. Using the best information available for all cities, the burden in 1925 was found to be $24.15 per $100 of full value,—or less than 2.5 per cent. This burden is shown in the column “readjusted tax rate,” Pueblo having the highest rate, $48.74, and Little Rock the lowest, $10.32. Of the Canadian cities, Edmonton remains high, with a rate of $36.80, and Ottawa is low, with $21.13. It is interesting to note, in passing, that the cities in the lower census groups show a higher average tax burden than those having a population of 100,000 and over. Milwaukee seems to be a good example of a city placing the average tax burden upon its citizens.
It is believed that the average of $24.15, or approximately 2.5 per cent, is of much significance when consideration is given to the possibility of tax reduction. Can we expect our cities to continue their multiplicity of services (Detroit records show over 200 activities in 1925) at a smaller figure? Will it, rather, tend to increase; particularly for education? It seems probable, in the light of so many popular demands for more and better public services, that the downward trend in the cost of our federal government cannot be applied consistently and successfully to our local governments.
THE TREND OF TAXES
The figures for a single year do not permit of comparisons to determine the trend of the property tax in cities. Detailed analysis was made, however, for the years 1923 and 1925 of the rates
755
in 53 cities over 100,000 population reporting each year.
Of the 53 cities, 6 reported no change in rates in the three years. Of the remaining 47 cities, 27 reported an increase totaling $61.94 per.$1000, and 20 reported a decrease totaling $52.67. The net increase, therefore, in seven cities was $9.27. For all the cities included, the net increase in the tax rate in the two-year period was I65 cents per $1000. This appears to be a very low rate of increase, considering the many elements which may affect a tax rate.
A careful analysis of 200 cities for which complete data are available shows that the tax dollar is distributed, as was suggested last year, very nearly 40 cents to the city, 30 cents to schools, 20 cents to the county, and 10 cents to the state.
A concluding observation might be made relative to the availability of financial information for citizens and others. Generally, the tax rates and similar information are available, but in some instances it is astounding to note the difficulty of obtaining same. No wonder the public is uninformed or indifferent about its government! One correspondent wrote: “Our city auditor is the only person who can give you the information you are seeking.” That auditor did not reply,—but worse, that city is in jeopardy.
Requests were sent to 247 cities and 13 Canadian cities, having a population of 30,000 and over in 1920. The Census Bureau recently reported 277 cities in the United States having that population on July 1,1925, but the list was received too late to address enquiries to the 42 new cities (two cities have dropped below 30,000 since 1920). Subsequent compilations will be upon the basis of the 1925 census estimates, and the continued co-operation of all public officials be sought.
COMPARATIVE TAX RATES OF 215 CITIES


COMPARATIVE TAX RATES FOR 215 CITIES OVER 80,000 FOR 1025 Compiled bi tbs Detroit Bureau op Goveejocejitil Rereabcr, Ikc.
From Date Furnished by Members of (he Governmental Research Conference, City Officials, and Chambers of Commerce
Census July 1, 1925 Per cent Fiscal year begins Data of collection of taxes Tax rate per $1,000 of aaseased valuation aj-i ji if * 1
Assessed valuation Realty Personalty City Sehool County State Total ft III fill Ssfl ]!i! Is ll
Group I Population 500,000 and over jJune 1 ( Deo. 1
1. New York, N. Y-1 6,103,384 812,140,856,003 98 2 Jan. 1 919.17 85.38 10.96 11.25 826.76 100 828.76 92.5 824.75
2. Chicago, 111.* 2,095,239 1,788,275,485 77 23 Jan. 1, '24 1 Jan. 2, ’25 41.40 30.30 5.80 6.50 84.00 50 42.00 75 31.60
3. Philadelphia, Pa.1 1,979,364 3,629,466,717 77 23 Jan. 1 Jan. 1 17.50 9.50 27.00 100 27.00 90 24.30
4. Detroit, Mich.4 1,242,044 2,757,664,010 79 21 July 1 ( July 1 14.27 6.11 2.59 2.10 25.07 100 25.07 80 20.06
5. Los Angeles, Calif.6 1,195,344 1,374,750,565 82 18 July 1, '24 Oct. 15, '24 17.00 13.90 6.80 37.70 100 37.70 50 18.86
6. Cleveland, Ohio 936.485 2,149,300,230 68 32 Jan. 1 J Dec. 20, ’24 \ June 20, '25 10.80 5.94 2.25 2.91 21.90 100 21.90 85 18.62
7. St. Louis, Mo 821,543 1,035,197,570 85 16 Apr. 8, '24 Nov. 1, '24 16.10 8.60 1.00 24.70 100 24.70 75 18.53
8. Baltimore, Md.* 796,296 1,543,064,251 60 40 Jan. 1 Jan. 1 21.67 4.13 2.73 28.63 100 26.63 90 25.68
9. Boston, Mass 781,529 1,808,705,398 90 10 Feb. 1, '24 Oct. 15, '24 13.59 7.06 i .64 2.41 24.70 100 24.70 100 24.70
10. Pittsburgh, Pa.T 631,563 988,830,120 100 Jan. 1 Jan. 1 16.15 11 50 6.37 33.02 100 33.02 85 28.07
11. San Francisco, Calif.1 557,630 684,099,920 82 18 July 1, ’24 J Oct. *24 \ Jan. *26 28.62 6.08 34.70 100 34.70 50 17.35
12. Buffalo, N. Y • 538,016 802,203,610 99 1 July 1 ' July 1 30.22 5.43 35.65 100 36.65 66 23.77
13. Milwaukee, Wis 509,192 755,229,851 76 24 Jan. 1 Deo. 15, *24 16.32 8.80 4.56 i.92 31.60 100 31.60 76 24.00
Group II Population 300,000 to 500,000 J Nov. '24 \ May '25
14. Washington, D. C.l# 497,906 1,282,093,104 60 40 July 1, ’24 14.00 14.00 100 14.00 100 14.00
15. Newark, N- J 452.513 660,233,508 82 18 Jan. 1 * Apr. 15 18.61 9.09 5.40 4.70 37.80 100 37.80 100 37.80
16. Minneapolis, Minn.11 425,435 292,983,070 82 18 Jan. 1 Jan. 1 36.64 20 70 7.02 6.73 68.99 38 26.22 85 22.29
17. New Orleans, La. 414,493 476,710,669 68 32 Jan. 1 June 1 20.60 7.00 8.75 36.25 85 30.81 100 30.81
18. Seattle, Wuh.“ 411,578 244,057,734 80 20 Jan. 1 Mar. 1 33.04 14.28 12.60 10.62 70.54 50 35.27 96 33.86
19. Cincinnati, Ohio 409,333 884,789,400 68 32 Jan. 1 | Deo. 20. '24 \ June 20, '26 8.42 6.59 3.65 .26 18.92 100 18.92 90 17.03
20. Kansas City, Mo.u 367,481 471,144,170 66 35 Apr. 18 June 1 12.50 11.50 4.30 1.00 29.30 100 29.30 74 21.68
21. Indianapolis, Ind.14 358.819 636,944,620 69 31 Jan. 1 f May 1 l Nov. 1 11.00 9.35 2.65 2.80 25.80 100 25.80 85 21.93
22. Rochester, N. Y 116,788 471,478,774 100 Jan. 1 May 1 13.38 15.26 3.85 1.69 34.18 100 34.18 80 27.34
23. Jersey City, N. J.16 315,280 510,909,606 90 10 Jan. 1 / dpr> 1 \ Dec. 1 22.23 7.34 4.78 34.35 100 34.35 100 34.35
756 NATIONAL MUNICIPAL REVIEW . [December


Group III
Population 100,000 to 300,000
24. Toledo, Ohio1*................
25. Portland, Oregon17............
26. Denver, Colo..................
27. Columbus, Ohio................
28. Providence, R. I.11..........
29. Louisville, Ky.l».............
30. Oakland, Calif.”..............
31. St. Paul, Minn*1..............
32. Atlanta, Ga»..................
33. Omaha, Nebr...................
34. Akron, Ohio...................
35. Birmingham, Ala...............
36. San Antonio, Texas............
37. Dallas, Texas.................
38. Worcester, Mam................
39. Richmond, Va..................
40. Syracuse, N. Y................
41. Hew Haven, Conn...............
43. Dayton, Ohio..................
44. Houston, Texas................
45. Norfolk, Va.1*................
46. Hartford, Conn.”..............
47. Youngstown, Ohio..............
48. Bridgeport, Conn..............
49. Fort Worth, Texas.............
50. Grand Rapids, Mich............
51. Des Moines, Iowa..............
52. Scranton, Pa.7.................
53. 8pringfield, Mass..............
54. Paterson, N. J.................
55. Nashville, Tenn................
56. Oklahoma City, Okla............
68. Salt Lake City, Utah...........
69. Flint, Mich....................
60. Fall River, Mass...............
61. Camden, N. J...................
63. Kansas City, Kan...............
64. Wilmington, Del................
287,380 541,335,720 70 30 Jan. 1 Dee. 20/24 June 20 9.46 8.00 3.22 .26 21.00 100 21.00 75
282,383 309,470,855 82 18 Dee. 1/24 Apr. 6, *25 Oct. 6. '25 17.20 10.60 7.60 5.60 41.00 100 41.00 60
280,911 400,400,090 07 33 Jan. 1 Jan. 1 10.02 11.98 4.20 3.70 29.90 100 29.90 80
279,836 808,731,900 73 27 Jan. 1 | Jan. 20 6.70 5.64 5.05 2.91 20.30 100 20.30 80
207,918 426,473.250 77 23 Oct. 1, '24 Oct. 1, '24 15.16 0.37 1.47 23.00 100 23.00 87
259,259 360,000,000 72 28 Sept. 1, ’24 July 1 Jan. 20, *25 14.30 6.20 4.66 5.00 29.60 100 29.60 90
253,700 229,843,020 80 40 July 1 24.60 19.20 10.00 63.80 100 63.80 55
246,001 171,160,937 72 28 Jan. ! f May 31 \Oct. 31 30.10 16.73 15.34 5.73 67.90 38 25.80 80
224,300 350,683,780 73 27 Jan. 1 (M»y i \Oct. 15 8.40 6.60 11.00 5.00 31.00 100 31.00 55
211,786 317,171,702 87 13 Jan. 1 May 1 9.80 12.00 3.30 2.35 27.45 100 27.45 60
208.426 318,381.160 88 35 Jan. 1 Deo. 20, '24 8.86 10.74 4.14 .26 24 00 100 24.00 70
205,670 178,202,425 81 19 Oct. 1. '24 Oct. 1, ’24 11.50 6.50 11.50 6.50 36.00 60 21.60 67
198,069 188,202.180 75 28 June 1, *24 Apr. 1, '24 17.20 8.50 8.00 8.00 41.70 50 20.86 76
194,460 224,517.275 65 35 Jan. 1 Sept. 1 15.08 9 62 7.60 7.70 40.00 50 20.00 67
192,242 287.022,680 88 15 Deo. 1, '24 Oct. 10, '24 18.35 8.25 1.25 1.65 29.40 100 29.40 85
188,403 308,809,589 03 37 Feb. 1 J June 1 \Dm. 1 13.50 7.50 2.50 23.50 100 23.50 67
182,003 281,803,658 99 1 Jan. 1 June 1 16.03 9.82 8.24 34.09 100 34.09 70
178,927 290,741,813 88 15 Jan. 1 1 Mar. 1 \ Sept. 1 14.00 10.00 .35 .65 25.00 100 25.00 100
172,042 320,731,830 78 25 Jan. 1 / Dec. 20. '24 \ June '26 9.24 6.34 3.31 2.91 20.80 100 20.80 80
104,984 214,000,000 86 15 Jan. 1 July 1 18.75 10.00 16.40 45.15 50 22.58 50
181,000 194,723,928 76 25 Jan. 1, ’24 Nov. ’24 27.50 2.50 30.00 100 30.00 67
100,197 303,120,279 90 10 Apr. 1 July 1 13.83 5.79 .35 .82 20.79 100 20.79 80
189,970 348,058,310 71 29 Jan. 1 June 1 Nov. 1 7.30 9.95 2.99 .26 20.50 100 20.50 70
155,000 257,173,689 78 22 Apr. 1 Apr. 1 Sept. 1 Oct. 1, '24 19.19 6.98 .38 .87 27.40 100 27.40 100
184,847 162,431,000 78 25 Oct. 1, '24 16.40 10.00 9.00 7.70 42.10 50 21.05 80
153,098 231,273,104 70 30 Apr. 1 / July 1 j Deo. 1 10.93 13.03 3.10 2.47 29.53 100 29.63 80
149,183 142,266 188,023,860 146326.250 76 100 25 Apr. 1 Jan. 1 / Apr. \Sept. Jan. 1 12.97 21.00 15.81 18.00 6.72 6.00 2.50 38.00 45.00 100 100 38.00 46.00 75 75
142,224 201,021,050 87 i3 Dec. 1, ‘23 Oot. 15, '24 18.30 11.70 .93 1.67 32.50 IQQ 32.60 100
141,098 190,304,005 80 20 June 1 /June 1 1 Dec. 1 26.58 2.68 3.80 2.18 35.22 100 35.22 75
136,220 149,664,260 75 25 Jan. 1 Aug. 1 15.90 1.60 9.50 27.00 100 27.00 76
136,000 116.735,146 80 20 July 1, '24 Jan.15, '25 15.03 15.52 9.70 2.50 42.75 100 42.76 45
130,943 186,763,676 79 21 Jan. 1 July 15 11.30 13.60 5.00 2.40 32.30 100 32.30 100
130,316 169,390,520 77 23 Mar. 1 /July 1 1 TV* 1 13.53 13.29 6.52 2.46 34.80 100 34.80 70
129,662 208,542,250 00 40 Jan. 1 Jan. 1 17.07 7.67 .88 1.98 27.60 100 27.80 100
128,642 165,642,342 84 16 Jan. 1 I Apr. 1 10.87 10.94 4.09 2.10 28.00 100 28.00 80
123,743 131.126,187 79 21 Jan. 1, ’25 Nov. 1, ’24 11.00 16.00 4.50 2.30 34.70 100 34.70 60
122,049 120,617,426 100 July 1 July 1 15.60 3.40 7.80 2.50 29.10 100 29.10 100
15.
16.
16.
26.
29.
20.
17. 21. 16.
14.
18. 13.
24.
15. 23.
25.
16.
11.
20.
16.
14.
27. 16. 23.
28. 33. 32. 26. 20. 19 82.
24
27.
22.
17.
29.
8ES FOOTNOTES ON PAGES 762
1925] COMPARATIVE TAX RATES OF 215 CITIES 757


COMPARATIVE TAX RATES FOR 215 CITIES OVER 30.000 FOR 1925-C 65. New Bedford, Matt.
66. Cambridge, Matt.. .
67. Erie, Pa...........
68. Albany, N. Y.......
69. Yonkers. N. Y.....
70. Reading, Pa.......
71. Lowell, Mass......
72. Dulutb, Minn......
73. Spokane, Wash....
74. Elisabeth,
75. Canton, Ohio......
76. San Diego, Calif.. .
77. El Paso, Texas . . .
78. Tacoma, Wash.74..
79. Lynn, Mass........
80. Utica, N. Y.......
Group IV
Population 50,000 to 100,000 61. Somerville, Mass............
82. Fort Wayne, Ind.............
83. Knoxville. Tenn.............
84. Jacksonville, Fla...........
85. Lawrenoe, Maas..............
87. Evansville, Ind.............
88. Savannah, Ga.................
89. Schenectady, N. Y...........
90. Allentown, Pa...............
91. Waterbury, Conn.............
92. Long Beach, Calif............
94. Harrisburg, Pa...............
95. Manchester, N. H.............
96. Ham tramck, Mich.............
97. Peoria, 111..................
98. South Bend, Ind..............
Per cent Tax rata per 11,000 of aaaeaaed valuation a â– 3-S
Census July 1, 1925 Fiscal year begins lii ill 3|ai #! 111] i
Aasetted valuation Realty Personalty Date of collection of taxes City School County Btate Total |«
h
120,494 $217,527,400 60 40 Dee. 1, '24 Oct. 15, '24 817.61 $6.80 to 90 $1.59 $26.40 100 $26.40 100 t2A an
120,053 158.452,100 87 13 Apr. 1, '24 Oct. 16, '24 19.37 8.79 1 40 3.74 33.30 100 33.30 100 'm an
120,000 129,734,241 96 4 Jan. 5 Mar. 1 12.20 14.00 7 00 33.20 100 33.20 80 26 56
117,820 164,421,704 93 7 Jan. 1 Jan. 1 20.75 6.43 4.90 i .42 33.50 100 33.50 79 26 47
113,647 227,065,707 99 1 Jan. 1 Mar. 10 18.01 11.28 3.79 1.42 29.50 100 29.50 87 26 67
112,707 106,000,000 100 Jan. 1 Mar. 1 13 00 13.00 4.00 30.00 100 30.00 50 15 00
110.542 140,446,920 74 20 Jan. 1. 24 Oct. 15, '24 19.19 7.07 1.37 1.77 29.40 100 29.40 100 29 40
110,502 79,996,836 73 27 Jan. 1 Jen. 1 May 31 Nov. 30 23.66 27.20 10.61 6.73 67.20 38 25.54 80 20.48
108,897 86,549,924 75 26 Jan. 1 18.00 14.20 11.74 11.66 56.60 50 27.80 84 23.35
107,000 126,617,696 86 14 Jan. 1 June 1 Dee. 1 16.06 9.25 4.77 3.72 32.80 100 32.80 100 32.80
106,260 159,852,700 63 37 Jan. 1 f Dee. *24 \ June *26 8.64 12.16 3.76 .26 24.80 100 24.80 60 14.88
106,047 121,537,414 86 14 Jan. 1 June 1 21.00 26.30 46.30 100 46.30 50 2ft 16
104,929 101.658.870 80 20 Mu. 1/24 Jan. 1, '25 26.60 9.40 7.50 43.50 60 21.75 100 21 76
104,455 80,070,347 77 23 Jan. 1 Feb. 1 26.73 14.50 20.68 10.36 72.16 60 36.08 100 36 M
103,147 115.891.075 86 15 Jan. 1, '24 Oct. 16, '24 18.11 9.47 1.60 2.62 31.80 100 31.80 inn 31 Ml
101. ow 120,382,758 100 Jan. 1 Aug. 1 17.10 7.87 4.97 1.83 31.77 100 31.77 68 21.60
99,206 99,311,000 91 9 Jan. 1/24 Oct. 15, '24 (May 4 Nov. 2 16.90 7.59 1.00 3.21 28.70 100 28.70 100 28.70
97,840 200,211,100 73 27 Jan. 1 6.14 9.00 3.26 2.80 21.20 100 21.20 76 15.90
95,464 103,340,465 80 20 Oct. 1, ’24 July 1, '25 24.40 10.70 35.10 100 35.10 66 22 82
95,450 76,781,580 82 18 Jan. 1 Dee. 1 21.90 22.60 19.60 10.50 74.40 50 37.20 80 2ft 7A
95,136 129,176,058 73 27 Jan. 1/24 Oet. 1, '24 May 1 Nov. 1 14.42 6.90 2.29 2.39 28.00 100 28.00 100 28.00
93,601 129,000.000 80 20 Jan. I 12.80 9.10 2.70 2.80 27.40 100 27.40 100 27.40
93,134 74,262,246 70 30 Jan. 1 (Apr. 1 \ Oct. 1 19.00 5.00 12.50 6.00 41.60 100 41.60 60 24.90
92,780 177,184,603 100 Jan. I May 1 11.87 9.79 6.58 2.84 30.08 100 30.08 93 27.97
92,151 72,629,654 100 Jan. 1 June 1 May 1 Nov. 1 11.25 16.00 3.00 29.25 100 29.25 80 23.40
91,715 153,730,310 78 22 Jan. 1 32.40 32.40 100 32.40 80 25.92
91,182 164,700,910 87 13 July 1/24 Oct. 12, '24 Mu. 1 July 1 14.00 15.20 7.60 36.70 100 36.70 60 18.35
83,422 81,838,115 100 Jan. 5 13.00 18.50 6.00 37.50 100 37.60 60 22.50
83,097 116,869.769 62 38 Apr. 1 Apr-1 15.43 6.87 2.63 3.67 28.60 100 28.50 100 28.50
81,731 111,444,152 65 35 July 1 July 15 12.25 8.50 2.43 2.02 25.20 100 25.20 73 18.00
81,564 41,761.540 69 31 Jan. 1 Jan. 1 29.10 27.60 8.60 6.60 71.60 50 35.80 100 35.80
80,091 166397350 67 33 Jan. 1 / May 4 1 Not. 2 7.70 10.30 4.20 2.80 25.00 100 25.00 70 17.50
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09. St Joseph, Mo.......
100. Wilkee-Barre, Ps____
101. Guy, lad............
102. Rockford, 111.......
104. Little Rock, Ark....
105. Charleston, S. C....
106. Highland Park, Mich.
107. Sacramento, Calif....
109. Wichita, Kan........
110. Saginaw, Mich.......
111. Binghamton, N. Y...
112. Johnstown, Pa.......
113. East St. Louis, 111,.,.
115. Terre Haute, Ind....
116. Lansing, Mich.......
118. Winston-Salem, N. C.
119. Passaic, N. J.......
120. Springfield, Ohio...
121. Chester, Pa.........
122. Hoboken, N. J.......
123. New Britain, Conn...
124. Racine, Wis.........
126. Berkeley, Calif.....
127. Altoona, Pa.........
129. Brockton, Mass......
130. Springfield, III....
131. Huntington, W. Va..
133. Bethlehem, Pa.......
134. Cicero, 111.........
135. Lincoln, Nebr.......
136. Holyoke, Maas.......
137. Quincy, Mass........
138. East Orange, N. J...
139. Portsmouth, Va......
140. Fresno, Calif.......
142. Macon, Ga.**........
143. Roaooke, Va.........
144. Wichita Falls, Texas.
146. Shreveport, La......
78,342 79,280.000 64 38 Apr. 20 May 5 12.60 12.25 7.85 1.10 33.70 100 33.70 60 20.22
77,642 105.000,000 96 4 Ju. 2 Apr. I / May 1 Nov. 1 13.00 14.00 5.80 32.80 100 32.80 60 19.08
76,870 139,244,070 65 35 Jan. 1 10.46 13.20 5.40 2.80 31.85 100 31.86 60 19.11
76,462 44,017,500 66 34 Ju. 1, '24 Jan. 1, '25 26.50 27.40 11.70 6.50 72.10 50 36.05 50 18.03
74,216 58,714,847 70 30 Jan. 1 Jan. 1 5.17 12.00 8.50 8.70 34.37 50 17.19 60 10.32
73,125 25,165,097 69 31 Jan. 1/24 Oct. 1,'24 45.00 14.75 33.00 6.00 08.75 42 41.48 75 31.10
72,289 197,923,950 46 54 July 1 July 1 Dec. 1 9.40 7.60 3.00 1.54 21.54 100 21.54 80 17.23
72,260 91,844,290 86 14 Jan. 1 Oct. 20, '24 17.40 20.37 13 03 51.40 100 51.40 72 37.01
72,217 116,382,875 79 21 Ju. 1, '24 Not. 1. '24 8.50 14.00 3.49 2.31 28.30 100 28.30 70 19.81
72,100 88,571.102 77 23 July 1 July 1 l Dec. 1 14.86 11.44 4.91 2.21 33.42 100 33.42 80 26.74
71,915 104,501,192 93 7 Jan. 1 (Jan. 1 July 1 17.04 8.14 5.50 30.68 .100 30.68 76 23.01
71,475 80,223.000 93 7 Jan. 1 Mu. 1 July 1 Mu. 1 13.90 14.50 6.00 34.40 100 34.40 80 27.62
71,423 108,625,055 60 20 Jan. 1 43.30 33 00 7.60 6.50 90.30 50 46.15 100 45.16
71,071 91,000,000 76 25 Jan. 1 May 1 Nov. 1 10.20 14.30 7.95 2.80 35.25 too 36.25 75 26.44
70,753 143,711,190 75 25 May 1 | July 1 i rw i 11.34 9.89 3.15 2.07 20.45 100 26.45 80 21.16
69,031 130,000,000 45 55 June 1 Mu. 1 7.00 4.00 6.60 16.60 100 16.50 75 12.38
68,979 94,819,550 78 22 Jan. 1 f June 1 Dec. 1 26.35 3.77 4.78 34.80 100 34.90 100 34.90
68,726 95,477,460 66 34 Jan. 1 ! Dec. 20. '24 June 20, '26 8.70 10.85 3.89 .20 21.70 100 21.70 86 14.32
68,507 63,898,006 100 Jan. 5 Jan. 6 9.00 12.00 4.00 25.00 100 26.00 70 17.50
68,166 95,595,194 91 9 Jan. 1 Apr. 1 23.65 11.44 7.52 4.89 47.50 100 47.50 75 35.63
68,039 98,188,615 73 27 Apr. 1 July 1 12.03 10.68 .26 .70 23.75 100 23.75 84 19.90
07,707 83,609,400 79 21 Jan. 1 Jan. 1 8.50 9.18 4.57 1.48 23.73 100 23.73 74 17.49
60,200 73,196,075 93 7 July 1. ’24 Oct. 20. '24 12.30 3.50 30.80 46.40 100 46.40 60 27.84
00,US 65,004,837 100 Jan. 5 Mu. 1 7.50 12.00 7.50 27.00 100 27.00 60 16.20
65,731 88,218,200 83 i7 Duo. 1,'24 Oct. 15,'24 26.95 9.71 1.71 1.43 39.80 100 39.80 80 31.84
03,023 20,531,685 71 29 Mu. 1, '24 Ju. 1, '25 33.40 31.00 7.60 7.60 79.60 50 39.60 50 19.90
63,485 123,990,865 80 20 June 80, ’24 Nov. 1, '24 5.00 10.00 3.30 1.40 19.70 100 19.70 80 15.76
62,828 63,678,758 95 5 Ju. 1 f Mar. . July l Mar. 1 11.50 13.00 5.00 29.50 100 29.50 75 22.13
62,238 23.003,535 68 32 Jan. 1 53.40 29.30 5.80 6.50 95.00 50 47.50 60 28.50
60,94! 102,151,750 76 24 Sept. 1,'24 Oet. 1, '24 7.75 15.00 1.33 2.36 26.43 100 26.43 80 21.14
00,802 118,077,280 78 22 Dee. 1. '24 Sept. 26, 25 15.48 4.37 1.34 1.81 23.00 100 23.00 100 23.00
00,131 93,553,075 87 13 Jan. 1, ‘24 Oet. 16, '24 16.74 7.02 1.08 2.16 27.00 100 27.00 100 27.00
59,967 95.518,970 88 12 Jan. 1 [June 1 14.87 11.45 5.46 1.12 32.90 100 32.90 65 21.39
59,029 42,790,359 83 17 Jan. 1, *24 Dee. '24 11.00 10.00 2.50 23.50 100 23.50 70 18.46
58,485 48,684,600 78 22 July 1, '24 Oet. 19, *24 [ Apr. 15 ] Aug. 15 (Deo. 16 21.55 8.90 33.40 63.85 100 03.85 50 31.82
58,237 46,891,420 70 21 Jan. 1 15.00 18 00 5.00 38.00 100 38.00 00 22.80
68,203 67,910,580 70 30 Ju. 1. '24 Not. 1. '24 22.50 2.50 25.00 100 25.00 50 12.50
58,026 34,007,170 71 29 Apr. 1, '24 Oet. 1, '24 24.00 10.00 7 50 7.50 49.00 50 24.50 80 19.60
67,857 102,000,000 60 40 Jan. 1, '24 Deo. 1, '24 10.50 6.00 6.50 5.25 28.25 100 28.26 50 14.15
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SSE FOOTOTE8 ON FAQK 782


COMPARATIVE TAX RATES FOR 3UT CITIES OVER SO,000 FOR 102*-Csntfn«sd
147. Niagara Falla, N. Y.
148. Lakewood, Ohio___
140. Pasadena, Calif...
161. Wheeling, W. Va...
162. Topeka, Kan.......
163. Auguta, Ga......
164. Kalamaaoo, Mich.
167. Atlantic City, N. J.
168. Davenport, Iowa..
160. Malden, Maas....
160. Oak Park, IU.....
161. Kenosha, Wia....
162. Beaumont,Texas..
165. Decatur, 111.....
Group V
Population 30,000 to 60,000
168. McKeesport, Pa................
169. Haverhill, Maas...............
170. York, Pa......................
171. Charleston, W. Va.............
172. Bay City, Mich................
173. Galveston, Texas..............
174. Elmira, N. Y..................
176. Medford, Mass.................
176. Chelsea, Maas.................
177. Pontiac, Mich.................
178. Stockton, Calif...........
170. Pittsfield, Mass..............
181. Newport News, Va..............
182. Lexington, Ky.................
183. lima, Ohio....................
187. Cedar Rapids, Iowa.............
188. Columbus, Ga...................
180. New Rochelle, N. Y.............
190. fitdiburg, Maas................
Ceooun July 1. 1925 Per oent Fiscal year begins Date of collection of taxes Tax rate pwr $1,000 of assessed valuation In ill 4, iM .2% c *9 3
Assessed valuation Realty Personalty City IMuwil County Bute Total 111! 1
fill
67,033 $113,661,160 100 Jan. 1 Not. 1, '24 910.23 910.30 66.84 926.37 100 926.37 100 926.37
66.774 139,528,790 88 12 Jan. 1. '24 Deo. 1. '94 6.77 8.67 2.91 $2.26 20.60 100 20.60 100 20.60
66.732 146.666,910 78 22 July 1. '24 Oct. 8. '24 12.80 20.90 7.60 41.20 100 41.20 68 23.80
66,208 114,023,688 73 27 July 1, '24 Nov. 1. *24 June 20, *26 Dec. 20, *24 Apr. 1 7.66 9.60 6.00 1.40 23.46 100 23.46 70 16.42
66,411 79,338,194 89 11 Jen. 1, '24 10.87 >8.66 4.67 2.31 30.90 100 30.30 80 24.24
66,245 60,839,494 64 36 Jan. 1 July 1 Oct. 1 11 00 13.00 8.00 5.00 44.00 100 44.00 60 22.00
63.613 73,663,846 72 28 Jan. 1 July 1 12.00 18.27 6.01 2.40 32.68 100 82.68 80 20.14
63,287 208,887,104 95 6 Jan. 1 ' June 1 16.01 4.51 8.97 2.11 31.60 100 31.60 100 81.60
62.241 65.830,900 83 17 Apr. 1 Sept. 27.00 30.19 13 56 6.76 78.50 60 38.26 65 24.96
61.789 66.009.960 86 15 Jen. 1, '24 Oct. 15. ’24 18.83 10.67 1.23 4.37 36.00 100 35.00 100 36.00
61,423 19.049,160 87 13 May l. ’24 Jan. 1, 26 37.76 06.70 6.80 6.60 116.70 60 58.35 60 29.18
50,891 68.156.540 73 27 Jan. 1 Jan. 1 14.10 11.79 3.72 1.39 ai.OOj 100 31 00 66 20.16
60,616 49,026,080 70 21 July 1, '24 Not, 1.'24 14.80 8.80 0.00 7.80 40.70 100 40.70 75 80.63
60,369 19.104,000 74 26 Mey 1. '24 Jan. 1, *26 42.70 38.60 6.70 6.60 94.40 60 47.70 67 31.80
49,097 42,690,190 100 Jan. 1 Mar. 1 11.50 16.50 7.03 36.63 100 35.63 75 26.72
49,084 65,069,740 84 16 Jan. 1, ’24 Jan. 1 Sept. 16, ’24 18.68 7.83 1.20 1.43 29.20 100 29.20 100 29.20
49,074 47,260,836 96 4 June 1 10.00 14.00 8.00 32.00 100 32.00 60 19.20
49,019 106,676,738 82 18 July 1, '24 Oct. 16.'24 Apr. 16, '25 6.16 10.80 4.30 1.40 22.66 100 22.66 70 16.86
48,907 47,934,246 78 22 July 1 < Aug. 1 Dec. 1 14.57 14.14 6.33 2.03 36.07 100 36.07 100 36.07
48,376 56,271,066 75 25 July 1 Sept. 1 17.30 4.00 21.30 100 21.30 76 16.98
48,359 44,678,696 95 5 July 1 July 1 15.96 12.88 9.94 38.77 100 38.77 80 31.02
47,627 69.441.600 92 8 Jan. 1, '24 Nov. 1. '24 22.10 8.30 .70 2.io 33.20 100 33.20 90 29.88
47,605 51,788,300 86 16 Jen. 1, '24 Oct. 16. ‘24 22.06 9.47 2.87 34.20 100 34.20 100 34.20
47,465 46.714,609 76 24 Jan. 1 July 1 20.29 17.43 5.31 2.70 45.78 100 46.73 75 34.30
47,287 62,141,874 86 16 Jan. 1 Feb. 9 16.00 13.60 21.00 39.60 100 39.60 70 27.85
47.241 48.041,690 84 16 Jan. 1, ‘24 Oct. 15.'24 18.79 7.40 2.04 1.88 30.20 100 30.20 80 24.16
47.083 44,366,710 74 26 Jan. 1, '24 Nov. 30, ’24 13.60 9.60 2.60 26.00 100 25.60 60 15.36
46,896 47,271,990 82 18 Jan. 1 { June 1 Oct. 1 15.43 8.37 8.00 31.80 100 31.80 60 15.90
46,717 82,604,810 78 22 Jan. 1 | Dm.'24 7.60 11.03 6.81 .26 24.60 100 24.60 80 19.68
45,656 68,364,064 84 16 Apr. 1, *24 Jan. 1, ’25 11.50 21.76 6.13 2.87 42.26 100 42.25 60 26.35
44,244 44,909,433 70 30 Jan. 1 Aug. 1 12.00 6.00 8.00 5.00 31.00 100 31.00 64 16.65
44,222 113,310,034 99 r Jan. 1 Apr. 11 16.96 7.67 3.24 1.43 28.20 100 28.20 100 26.20
44,034 66,408,825 73 27 Dm. 1. '24 Sept. 16, ’26 16.66 0.27 1.29 1.88 29.20 100 29.20 90 26.28
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191. Wmco, Texaa 43.912 58.000,000 72 28 Oct. 1, '24 Oct. 11. *24 10.40 6.50 5.00 7.70 36.20 100 36.20 60 21 72
192. Evanston, 1U 43,883 25,727,718 79 21 Jan. 1 Jan. 1 36.60 59.30 5.80 6.50 108.20 50 54.10 50 27.05
193. Pueblo, Colo 43,787 35.246,145 72 28 Jan. 1 / Jan. 1 23.50 14.60 9.50 3.70 61.30 100 51.30 95 48.74
195. Jamestown, N. Y 43,414 31.899,374 100 Mu. 1 June 1 16.80 23.23 8.03 2.33 50.39 100 50.39 60 30 23
190. Muskegon, Mich 168. Salem, Maas 43,088 55,248,305 77 23 Jan.1,'26 Dee. 1, '24 14.30 11.23 7.55 2.06 35.14 100 35.14 90 31 63
42,821 52,391,680 80 20 Apr. 1, '24 Oct. 16, ‘24 20.16 9.85 1.62 1.88 33.50 100 33.50 100 33 M
200. Brookline, Maas 42,033 127,427,100 87 13 Jan. 1. ’24 Oct. 15, '24 10.93 4.78 1.36 2.93 20.00 100 20.00 100 20.00
201. Muncie, Ind 42.491 60,420,840 67 43 Jan. 1 / May 1 20.40 3.40 2.80 26.60 100 26.60 100 26.60
203. Battle Creek, Mich 42,330 54,785,990 74 26 July 1 July 13 10.00 14.20 4.50 2.81 31.51 100 31.51 75 23.63
204. Loraine, Ohio 42,259 59.941.143 70 30 Jan. 1 ! Dee. 20, '24 \ June 20 10.87 9.05 2.97 2.91 25.80 100 25.80 50 12.90
205. Springfield, Mo 42,140 38.958.832 69 31 July 1 Sept. 1 9.50 11.60 6.30 1.00 27.30 100 27.30 70 19 11
207, Cbieopee, Maas 41,888 47,926,760 75 25 Deo. 1/23 Oct. 15. ’24 15.78 0.94 1.00 1.78 28.50 100 28.50 100 93 AO
208. Columbia, 8. C 41,225 18.556,865 60 40 Jan. 1, '24 Oct. 15. '24 26.00 40.60 6.00 72.50 42 30.45 60 18 27
210. Joliet, 111 40,578 12,633.401 76 24 Jan. 1 Feb. 1 33.80 56.00 7.50 6.50 102.80 50 51.40 50 25 70
211. Aurora, 111 40,254 17,147.990 70 30 Jan. 1 Mu. 1 30.90 30.70 10.00 6.50 78.10 50 39.05 40 Ifi 62
212. Rock Island, 111 40,073 11,838.959 70 30 Apr. 1 Feb. 1 25.70 40.00 12.00 6.50 84.20 50 42.10 60 9S 26
213. Dubuque, Iowa 40,000 43,005,848 75 25 Apr. 1 Jan. 1 14.13 24.25 6.25 2.87 37.50 100 37.50 75 23 13
214. Superior, Wis 39,071 44,031.803 80 20 Jan. 1 Dm. 15, '24 7.38 13.01 10.05 1.36 32.40 100 32.40 81 26 24
215. Taunton, Mass 39,284 39.833,210 77 23 Dec. 1, '24 Oct. 15, '24 18.56 7.24 .96 1.84 28.40 100 28.60 100 28.60
217. New Brunswick, N. J 37.984 34,538,426 88 12 Jan. 1 / June 1 \ Dec. 1 18.30 12.90 9.60 4.80 45.60 100 45.40 60 27.36
220. Wilmington, N. C 37,041 43,599,119 90 10 June 1. '24 Oct. 1, '24 10.00 7.21 5.29 22.50 100 22.50 85 10 13
221. Danville, 111 37,021 13,306,065 66 34 May 1. ‘24 Jan. 1, *26 29.10 31.70 7.30 6.50 74.60 60 37.30 65 24 25
222. Ogden, Utah 30,809 38.744,505 67 33 Jan. 1, '24 Oct. *24 11.00 15.90 5.33 3.07 35.30 100 35.30 75 96 48
220. Auburn, N. Y 36,192 27.943,612 100 July 1 July 1 17.48 11.25 11.81 40 54 100 40 54 70 98 38
228. Haileton, Pa 36,143 27,008,427 93 7 Jan. 5 Apr. 1 11.00 20.00 13.01 44 01 100 44.01 60 26 41
229. Petersburg, Va 35,712 41,127,785 61 39 July 1 July 1 15.00 5.00 2.50 22.50 100 22.50 71 15.98
230. Poughkeepsie, N. Y 33,470 43,414,074 100 Jan. 1 (Feb. 15 i Ail*. 15 18.20 9.45 7.31 34.96 100 34.94 80 27.97
231. Orange, N. J 35,379 33,682,416 90 10 Jan. 1 J June 1 19.81 11.82 5.40 4.77 41.80 100 41.80 80 33.44
232. Amsterdam, N. Y 35.260 30,278,250 100 Jan. 1 Aug. 1 10.69 19.78 10.62 41 09 100 41.09 60 24 65
233. Lewiston, Me 34,932 31,897,709 80 20 Mu. 1 Aug. 20 18.00 5.00 2.00 7.00 32.00 100 32.00 67 21.33
230. Green Bay, Wis 34,290 47,725,000 76 24 Jan. 1 / Mar. 1 \ Dee. 15 12.65 9.28 7.07 29.00 100 29.00 100 29.00
237. Moline, 111 33,910 12,030,100 08 32 Apr. 1, '24 Feb. *26 29.10 40.00 12.00 6.50 87.60 50 42 fin 50 9i on
238. Sheboygan, Wis 33,535 39,943,139 07 33 Jan. 1 Jan. 1 15.81 12.76 4.56 1.30 34 42 inn 34 49 inn 34 49
240. Watertown, N. Y 32,836 43,910,990 09 1 July 1 July 1 15.40 10.60 7.51 1.69 35.20 100 35.20 87 30.62
241. Muekogee, Old* 32.175 31,124,616 80 20 July 1 (June l \ Nov. 1 15.61 15.10 8.95 2.50 42.16 100 42.16 60 25.30
242. IaCrogM, Wie 30,421 41,888,883 69 31 Jan. 1, '23 Deo. 1, *24 15.76 8.40 4.81 1.03 30 00 100 3n on tin 9i Aft
243. Newburgh, N. Y 30,419 29,519,390 100 Jan. 1 Jan. 1 23.20 8:70 St 90 inn 3i on
244. Lynchburg, Va 30,395 31,744,413 92 8 Feb. 1 Aug. 20 11.00 10.00 2.60 23.50 100 23.50 50 1175
245. Colorado Springs, Colo 30,105 39,798,800 83 17 Jan. 1 1 Jan.1 \ July 1 14.30 14.55 8.47 3.70 41.22 100 41.22 80 32.98
ct
BEE FOOTNOTES ON PAGE 702
1925] COMPARATIVE TAX RATES OP 215 CITIES


COMPARATIVE TAX RATES FOR 215 CITIES OVER 30,000 FOR 1925—Continued
G»
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Census July 1, 1926 Per cent Fiscal year begins Date of collection of taxes Tax rate per $1,000 of sweeper! valuation a| _ g fill Ilf! if. 1 s
Assessed valuation Realty Personalty City School County BUta Total ||i 111 IIP JWi h h
Canadian Cities 1. Montreal, Que.“ 804,527 $766,598,616 100 Jan. 1 May 1 114.00 <10 00 $24.00 100 <24.00 100 $24.00
2. Toronto, Ont.tt 549,429 809.007,346 100 Jan. 1 f May 4 I July 4 20.15 9.70 29.85 100 29.85 78 22.39
3. Winnipeg, Man.54 195,148 234,493,510 100 Jan. 1 [Sept. 4 June 15 13.49 12.45 $2.56 28.50 80 22.80 100 22.80
4. Vancouver, B. C.54 126,747 212,153,266 100 Jan. 1 Aug. 4 19.8f 8.64 28.50 100 28.50 82 23.37
5. Hamilton, Out.*0 122,495 150,359,880 100 Jan. 1 / July 1 \ Sept. 1 20.19 12 31 32.50 100 32.60 100 32.50
0. Ottawa, Ont.*1 118,088 141,616,642 85 15 Jan. 1 / June 18 20.80 10.90 31.70 100 31.70 87 21.13
7. Quebec, Que.B 118,000 96,936,377 100 Mar 1, '24 Not. 1, '24 19.10 9.60 '28.80 100 28.60 100 28.60
10. £dmonton, Alb.® 65,378 69,834,540 100 Jan. 1 May 1 24.23 21.77 46.00 100 46.00 80 36.80
11. St. John, N. B.“ 60,525 53,300,000 88 12 Jan. 1 July 20 13.70 9.30 <8.00 31.00 100 31.00 100 31.00
12. Halifax, N. B 57,564 57,540.205 100 May 1 May 1 20.30 9.60 .80 30.80 100 30.80 100 30.80
13. Victoria, B. C.*I * * 4 5 * 7 * * * II 38.750 56,497,578 100 Jan. I Aug. 15 29.25 10 05 39.30 76 29.87 too 29.87
I New York City. The assessed valuation given is exclusive of 1803,025,400 of dwellings exempted from local taxation until 1032 but snnrssod for state tax. The official computation gives a single rate; the rate for county purposes is computed as the ratio of county appropriation to total assessed valuation; the rates for city and schools are in proportion to appropriations. In addition to the rate given, levies are made on the several boroughs and city at large for local improvements, ranging from U cents to 34 cents. The ratio of assessed to legal basis of value is upon the state equalisation of 1924.
* Chicago. The city rate includes sanitary district, forest preserve district and South Park district rates; the rste given is for South Park district (central business district and greater part of South Side). Rates in other parte of the city are slightly higher because of variations in the park rate.
* Philadelphia. The city rate includes the cost of eounty government, which is consolidated with the city. The rates given are on city realty, comprising 95 per oent of all realty; suburban realty (4 per eent of all realty) is taxed at two-thirds, and farm realty (1 per cent) at one-half, of the rate on city realty,—except that property in poor districts (having local poor taxes) is further relieved of such poor levies. There is a 4-mill tax on money at interest and vehicles to hire, comprising the personalty valuation. In all, there are eighteen different total tax rates on real estate, fixed by seven tax-levying bodies. There is no state tax on realty in Pennsylvania.
4 Detroit. The population is as at May 31st, by special census under supervision of the Census Bureau.
* Lot Angeles. The population is a local estimate,—no estimate was made by the Census Bureau. The city rate includes flood control rate of 70 cents. There is no state tax on real estate in California.
* Baltimore. The city rate includes the county, which is consolidated with the city; also debt service, including school debt. There are several rates applied to nine baees of assessed valuation,—at full rate (125.80), $751,034,958 (one-third of area of city); at 72 per cent of full rate, $208,350,291; at two-thirds of full rate, $53,843,495; at one-third of full rate, $41,801,695. There are five bases of assesMd valuation on bank and trust company shares, securities and deposits, $488,033,912. Personal property of manufacturers is exempt from taxation.
7 Pittsburgh, Scranton. By act of legislature, the city was required to assess a rate upon buildings for 1914 and 1915 equal to 90 per cent of the rate upon land; in 1910, 1917 and 1918, at 80 per oent; and at 10 per cent less each triennial assessment thereafter until 1925, when the tax levied upon buildings equals one-half that upon land. Machinery is exempt from taxation.
a 3aa Francisco. The city rate includes the county, which is consolidated with the city; also debt service, including school debt.
4 Buffalo. The city rate includes school; the county rste includes state (division not furnished).
14 WajAt'npton. Appropriations for the District of Columbia are made by Congress, 00 per eent of the total being raised by taxation, and 40 per oent paid by the Federal Treasury. The rate given is for realty and tangible personalty: intangible personalty, $379,801,289, is taxed one-half of one per cent. Banks, trust companies, and public service corporations are taxed at various rates on earnings or receipts. Details of the total rate were not furnished.
II Minneapolis. Real estate is assessed at 40 per cent of true value and personalty at 25 per cent to 33) per cent. Money and credits (not included in the valuation) are taxed 3 mills on the dollar. The total rats varies slightly in parts of the city due to varying rates for street maintenance.
li Seattle. The population is a local estimate,—no estimate was made by the Census Bureau. The city rate includes $1.40 port rate.
» Kansas City. Tne valuation given is for city purposes; ths valuation for school, oounty and state purposes Is $587,389,777.
NATIONAL MUNICIPAL REVIEW [December


H Indianapolis. The rates given are for Center Township, the city rate including a 4S-eent rate for township. There are fire tax rates in fire townships which comprise the city, four townships (other than Center) lying partially within the city nut largely outside, i* Jersey City, Norfolk. Toe city rate includes schools.
!« Toledo. The city rate includes 25 cents for university.
»7 Portland. The city rate includes S2.30 dock rate and $2.40 port rate.
11 Providence. There is no county government in Rhode Island. In addition to the rates given, $4 per $1,000 is assessed on an intangible valuation of $133,123,820 not included in the valuation given.
»* Louisville. Of the total valuation. $19,000,000 ia shares of stock of banks and trust oompaniee, taxed $4 per $1,000 for achools and $2 for city.
* Oakland. The county rate includes $1.20 utility district.
71 St. Paul. See Note 11. Moneys and credits, $85,858,540, not included in the valuation reported, are taxed $3 per $1,000. ii Atlanta. The school rate is estimated; schools receive 26 per cent of total eity revenues.
» Hartford. In addition to the tax reported, the city raises, through levy and collection by the state treasurer, a one per cent tax upon a corporation stock valuation of $192,653,059, which ia the taxable valuation of the stock of certain corporations held by residents.
•* Tacoma. %The city rate includes $1.50 port and $1.50 park.
** Macon. The county rate includes school.
« Montreal. The population of the Canadian cities is the local estimates for 1924, usually made by a census department. The school rate given is the Protestant rate, the Catholic rate is $7.00; and the Neutral (com* prising business'corporations) rate is $12.
77 Toronto. Realty valuation includes 8.7 per cent income and 10.3 per cent business. For school levy, the valuation is increased $62,161,905, the value of dwellings up to $4,000 valuation exempt for general pur* poses.
*• Winnipeg. Land, valued at $132,997,590, ia assessed at 100 per cent; improvements are assessed at 66$ per cent; the weighted average being 80 per cent.
’* Vancouver. Land, valued at $126,184,510, is assessed at 100 per cent; improvements are asefaned at 60 per cent; the weighted rate being 82 per cent. The actual rate waa $31.67, but was reported $28.60 because over 90 per cent was paid before expiration of discount period.
•° Hamilton. Realty valuation includes 6.3 per cent income and 9.1 per cent business.
a> Ottawa. The total rate given is for publio (Protectant) school supporters; the rate for Separate schools is $4 higher. u Ouebec. The city rate includes $5 for water, and 60 cents for local improvement rate.
73 Edmonton. Land, valued at $36,660,080, is assessed at 100 per cent; improvements are assemed at 60 per oent, the weighted rate being 80 per cent. In addition to the rate given, there is • Province supplementary revenue tax of $2 on land only.
M St. John. Realty valuation includes 31.5 per cent income.
* Victoria. Population estimate is for 1921. Land, valued at $29,107,858, is assessed at 100 per oent; improvements are asaeesed at 50 per oent, the weighted average bong 76 per cent.
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1925] COMPARATIVE TAX RATES OF 215 CITIES


RECENT BOOKS REVIEWED
A Report Upon the Administration of Delinquent Personal Tax Collection in Ctrr ah oca County, Ohio. Ohio: Municipal Research Bureau of Cleveland, 1925. 77 pp. Mimeographed.
This report was prepared at the request of the auditor of Cuyahoga County and is designed first to describe the present law governing delinquent persona! tax collections in that county, the administrative organization and procedure thereunder, and the results achieved; and second to suggest changes in both law and administration with a view to making better results possible. The writer seems to have kept both objects clearly in mind and to have refrained from discursive flights into the tempting field of the shortcomings of the tax on personal property in general.
In spite, however, of the rigidity with which the report adheres to its narrowly limited scope, it contains material of interest not only to the officials at whose request it was made but also to all officials who are confronted by the difficult problems involved in the collection of personal property taxes. Furthermore, it should prove of interest to students of the survey method because of the manner in which it utilizes the poorly organized material at hand in the official records into a substantial fact basis for its conclusions and recommendations. Finally, students of public finance will find in the report new ammunition for use in their attacks on the personal property tax as a whole. No advocate of an adequate budget system, for instance, can fail to be impressed by the fact that a balanced budget is impossible in connection with a tax system which compels financial officers, every half decade or so, to write off as uncollectible an aggregate of delinquent taxes equivalent to one fourth of the amount levied for one year.
Philip H. Cornice.
*
Municipal Aid to Music in America. By Keimeth S. Clark. Published by the National Bureau for the Advancement of Music. New York. 1925. Pp. 297.
“Municipal Aid to Music in America” has made its appearance at a strategic time. There is an awakening interest in music as a community
activity. There is a growing feeling that music can and should be more widely used aa an educational medium, cultural force and recreational activity. With the rapid adoption of music as a part of the community recreation program municipalities are appropriating money for bands, orchestras, choral societies, community singing and concerts. Mr. Clark’s book will be an invaluable aid to city officials giving thought to music. It is not a theory of what cities should do, but a report of what cities are doing.
In the preliminary chapters, written in a very readable style, Mr. Clark briefly outlines the growth of the present movement for municipal music, gives a picture of several successful city music departments and at the same time gives valuable suggestions about how other cities may go and do likewise.
The chapter on permissive legislation is a storehouse of information for those who are faced with legal difficulties in securing tax funds for music.
The section giving reports on work done by typical music systems is well selected testimony from local leaders in cities where municipal music is carried on successfully.
The whole book is based upon a study carried on by questionnaire sent out to mayors of cities with a population of 5,000 or more. The replies are listed by states and cities and the reader can readily get the facta about municipal music in any given city reporting.
“Municipal Aid to Music” furnishes facts, ideas and methods about a movement to democratize music in America and should be read by all to whom this idea commends itself.
T. E. Rivers, Playground and Recreation Association of America.
*
Social Problems of Today. By Grove Samuel
Dow and Edgar W. Wesley. New York:
Thomas Y. Crowell Co., 1925. Pp. xvi, S37.
A university professor and a high school teacher have co-operated in this book on “human association, its origin, development, forms and functions.” It is intended for the last year of the high school and originated out of a feeling that the “problems” books written for that year and containing discussions of economics and
764


RECENT BOOKS REVIEWED
765
government as well as sociology, are not well suited for the purposes in mind. The authors think that sociology alone should be treated in the text; or rather that at least half a year should be given to sociology alone. One of the difficulties with their position is that many insist on including both government and economics in the last year of the high school. Consequently, there being generally only two terms in a year, three subjects are demanding separate recognition when there is place for only two. From the standpoint of those interested primarily in government, this is unfortunate, for it results too often in economics and sociology being placed in the last year of the high school, and in government being tacked on to American history lower down in the system.
This text is conveniently divided into fifteen chapters of something like equal length; and, with a few exceptions, each treats of a separate social problem. Among these are the influence of geographical environment, heredity, increase in population, immigration (in two chapters), migration to the cities, the Negro, the family and divorce, industrial organization, women and children in industry, and poverty. At the end of each chapter is a list of questions to stimulate study, some topics for special reports, and a well-selected bibliography. The book is well illustrated from pictures made by Lewis W. Hine. The meaningless picture of public buildings and public men seems to be absent, its place being taken by pictures of action or of conditions.
Such a book will stir the interest and stimulate the imagination of any well-meaning lay reader and his first disposition is to say, “This ought certainly to be put into the schools.” The trained educator is likely to be more cold-blooded about it and to say, “This is interesting to you because you have been observing social problems for many years. You approach the book with a wide experience and some philosophy. To teach
it will not, however, be the best means of approach to social progress. It is better to teach the youngsters more definite, constructive things,—such as economics and government. This is pathology and will depress and devitalize the lives of the young citizens.” Of these two views no one knows which is true. Each is a subjective impression.
The leading argument for teaching sociology in the schools is based on the supposition that information about the ills of society will result in an effort on the part of the citizen to find means of solving them. In his search for means of solving them, he will study government and his study of it will result in his learain gthe scientific principles of its organization and reorganization. The answer to this argument is that, as a matter of fact, the results do not follow the causes as the advocates of the teaching of mere problems claim. We have been brought face to face with the problems for generations and those who see them have not made a serious effort to learn the scientific principles of government. The state of New York has confronted its sad lack of administrative organization long enough to provide for scientific reorganization if mere teeing the problem would bring support for improvement. It was necessary to go through the back-breaking process of teaching grown people elementary scientific principles even to provide a hope that reorganization may result. The teacher of government claims that the last year of the high school is the place to teach the principles of politics before the mind is hardened into prejudices and superstitions. The citizen will then later be brought clearly enough to see the problems and abuses. When he sees them, he will remember his simple elementary principles of scientific attack on them and will apply these principles. The argument for either position is wholly a priori and theoretical. One must take his choice between two theories.


ITEMS ON MUNICIPAL ENGINEERING
BY W. A. BASSETT
Planning of Water and Sewerage Districts.— Sound advice in the matter of planning for water supply or sewerage improvements designed to serve a district rather than a single municipality is contained in the plan recommended by Mr. Clemens Herschel to meet the water supply problems of the New Jersey Metropolitan District. The essential features of the plan as outlined in the Engineering Newe-Record of September 10 are:
(1) To create a “Metropolitan Water Supply District of the State of New Jersey,” to consist “of all municipalities wholly or partly within” 20 miles of a named point on the Jersey City water front, and a commission of “three skilled and competent men,” to be appointed by the governor, with the approval of the Senate, the commission to be authorized to supply water at wholesale to municipalities or companies within the district, and to build works, condemn property, buy out companies, etc.; and (2) to have the State of New Jersey, if the people of the state so vote, issue 150,000,000 of state bonds, not over $10,000,000 in any one year, to finance the district water-works, the capital charges and operating expenses to be annually assessed by the state authorities against each community supplied, according to the amount of water it has taken during the year. Existing supply works of communities entering into the new supply scheme would be taken over by the district, with proper compensation. Municipalities within the district would be compelled to take water for domestic purposes from the district unless specifically exempted from doing so by the legislature. No town now supplied by a company owning the distribution system in the town could contract with the district until it had acquired the works of the company.
There is nothing particularly new in this proposal but its soundness cannot be questioned. Moreover, it is equally applicable to either sewerage or water supply projects and does away with the cumbersome conditions which have arisen in connection with the administration of the Passaic Valley Sewer in New Jersey, particularly in the allocation of the cost of that work.
*
Construction of Philadelphia-Camden Bridge Suspended.—Disagreement over the matter of collecting tolls from traffic that will use the Philadelphia-Camden Bridge will probably
result in a suspension of work on that structure upon completion of contracts already awarded. This situation has been brought about as a result of action taken on September 1 by the New Jersey Interstate Bridge and Tunnel Commission refusing to participate further in the authorization of work on that project until the tolls question has been settled and New Jersey’s right to collect tolls fully recognized. The latter state favors the collection of tolls to help defray the cost of its two joint undertakings—the Philadelphia-Camden Bridge and the Holland Vehicular Tunnel at New York. The Pennsylvania legislature, however, at its session this year went on record as in favor of a free bridge. This controversy is likely to result in a regrettable delay in the completion of this important project as the Pennsylvania legislature meets biennially which means that further action in the matter will have to be deferred until 1927 unless a special session is called. It would seem that the stand taken by the State of New Jersey in this matter is by all odds the more rational and defensible one. It simply means that the burden of financing this great improvement would be met largely by those receiving the greatest benefit from its consummation, namely, the users, in place of meeting its cost out of general taxation. Certainly no one can question the equity of collecting tolls on a bridge that is bound to carry an extensive through, as well as local, traffic.
*
State Legislatures as Rate-Makers for Public Utility Enterprises.—Unintelligent state legislation is enacted all too frequently. Fortunately, the public laws of this character are rather more stupid than harmful. However, occasionally a measure is enacted so inimical to the public interest that subsequent legislative action is necessary to correct the mistake made. For that reason it behooves the public always to be on guard in this matter, and the good people of the state of Massachusetts should consider carefully the merits of a bill filed by Representative Martin Hays of Brighton, Massachusetts, for introduction at the next session of the state legislature, entitled: “An act to curtail the powers of the department of public utilities.”
766


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767
This set if passed would make all orders of the state commission in respect of such matters as rates or utility financing, subject to review and approval by both branches of the state legislature. It would be difficult to conceive of a more unwise proposal. As commented on editorially in a recent number of the Engineering Newt-Record:
The plan proposed is futile and unworkable; it breaks down by its own weight and weakness. Before adopting or rejecting the advice of the commission would each of the scores of members of the two houses review all the evidence in each of 125 or ISO cases acted on yearly by the commission? Otherwise how could the members of the legislature vote intelligently at each of the 125 to 150 roll calls? And if the members of a small body of commissioners, appointed solely to administer the utility laws of the state, may be subject to “skillful manipulation of high-priced attorneys,” then how about the members of the legislature? Would the legislature set up and follow standards for capitalization and earnings applicable to the entire state? If not each case would have to be considered by the legislature on its individual merits, which would include traversing all the testimony taken by the commission and possibly the holding of legislative hearings, which would mean confusion worse confounded.
There are still many vexatious problems of public utility regulation remaining to be solved. However, such progress as has been made in these matters during recent years has been due to the intelligent work of the various state public utility commissions. In the event that there is marked public disagreement with the findings of the Massachusetts department of public utilities there is always recourse to adjudication of such matters by the courts. It would seem preferable to trust the judgment of a public service commission on matters relating to the public interest, rather than the collective wisdom of the average state legislature.
*
Recommended Legislation to Ensure Structural Safety in Building.—Requirements of legislation designed to safeguard building operations and ensure structural safety, while simplifying the governmental problem of controlling these activities are outlined in a report of the Joint Committee on Structural Safety, representing architectural and engineering societies of the New York Metropolitan District. The conclusions of the committee, submitted for consideration and discussion, recommend the preparation of legislation governing the granting
of building permits and regulating their use, embodying substantially the following requirements:
I. The owner shall be the applicant for the building or construction permit and shall be required to accompany his application for such a permit with the following:
1. Adequate plans and specifications pre-
pared and signed by a competent registered architect or a licensed professional engineer experienced in structural design, hereinafter called the designer.
2. A definite undertaking executed in legal
form stipulating that, if the permit is issued to the applicant, he will have all working or shop drawings covering parts and details essential to the stability of the building and required to supplement the plans which accompanied his application, fully checked, approved and signed by the designer; that he will place the execution of the work under the direct supervision and continuous control of the designer; and that he will further undertake, with the cooperation of the designer and by employing only competent contractors and workmen to perform faithfully the work proposed in strict accordance with the plans and specifications, in compliance with all requirements of law, and with due regard to public safety.
II. Before a certificate of occupancy is issued by a bureau of buildings, or by state or local authorities having jurisdiction, the owner shall furnish to such authorities a duly executed certificate, signed by the designer, stating that he has faithfully supervised the entire work of construction, that it has been executed in accordance with the plans, specifications and working drawings duly signed by him, and that to the best of his knowledge and belief the finished work complies with all the requirements of law and is structurally safe for the use specified.
HI. Failure on the part of the owner to comply with any of the above specified requirements shall be regarded as presumptive evidence of a violation of law, constituting a penal offense, and shall be punishable as such.
IV. If at any time after the certificate of the designer has been filed, conclusive evidence is furnished to the state licensing authorities that any statement in such certificate was false and intended to deceive, these authorities shall immediately take the necessary legal steps to have the signer put on trial for perjury, shall forthwith have his name stricken from the list of registered architects or licensed professional engineers, and shall give their action effective publicity.


NOTES AND EVENTS
BY A. E. BUCK
The Ksnras City Election.—We are informed by Nat Spencer, secretary of the Citizens' League of Kansas City, that former Mayor Albert I. Beach, Republican, has been re-elected over Ben Joudon; Democrat and present city treasurer. The vote was very dose; Mayor Beach’s majority being only 548. Although party names were not often referred to during the campaign, the keenest kind of partisan spirit was manifest. The opposing parties became known as the “Beach group” and the “Joudon group.” The Beach group had the advantage of a fairly successful administration. It appears that this group elected the mayor and four coundlmen, while the other group elected five councilmen. The Joudon group, it seems, will have control of the council of nine, although this is not yet certain, since the election of one councilman of this group is being contested by the other group.
It is reported that the newly elected offidals are as a whole high-grade citizens, although more or less animated by partisanship. Practically all of them are pledged to give the new charter a full and fair trial. If the campaign pledges are adherred to, it is assumed that the dty will have a good council regardless of whether it is dominated by one or the other group.
♦
Westchester and Nassau County Charters Rejected.—The proposed charters for both Westchester and Nassau counties (N. Y.) were rejected at the recent election. The Westchester charter was defeated by only about 5,000 votes, while the Nassau charter was defeated by a 2 to 1 vote. The rejected county charters were drafted by non-partisan commissions and were submitted to the people under an amendment to the state constitution approved in 1921. Both Westchester and Nassau have special problems in county government because of their large populations, their wealth and their proximity to New York City. Many people believe that unless a more efficient government than any which can be expected under the supervisor system is installed the two counties will some day be incorporated in the larger city. But ap-
parently the majority of the voters had grave doubts about the type of government that would result under the proposed charters and refused to vote for them. In Westchester there was a prolonged and heated campaign over the adoption of the proposed charter.
*
Ohio Amendments Defeated.—On November 3 the voters of Ohio defeated the three proposed amendments to the state constitution. One of these was the debt limitation amendment which sought to write into the constitution the restrictions already imposed under the Griswold law. The amendment embodied two propositions: “No borrowing for current expenses” and "no bonds running longer than the life of the assets acquired.” This amendment was criticised as being non-essential under the existing laws.
Another amendment provided for a four-year term of office for elective state and county officials. The main argument for this amendment was that it would enable the administrative officers to become more familiar with their duties and therefore to render better service during at least part of their term. The opposition claimed that a four-year term for the governor and a two-year term for the legislature would increase the probability that the two branches of government would differ politically, with detrimental effect upon legislative action. Governor Donahey vigorously attacked this amendment as an “office grab,” engineered by politicians for their own benefit. Generally, the amendment seems to have been regarded as “a makeshift proposition which did not go to the bottom of the difficulties it sought to correct.”
The third amendment proposed to remove intangible property from the application of “the uniform rule”; it was generally referred to as the “classification amendment.” Since for many years this property had not been reached under the uniform rule, it was proposed to give the legislature power to try other methods. The Cleveland Plain Dealer, which supported this amendment, says:
Nothing is clearer than that modification of the old uniform rule of the 1851 constitution is necessary before anything like a sound program


NOTES AND EVENTS
769
of Ux revision can be undertaken in this state. This archaic rule, designed when Ohio was almost exclusively an agricultural state, completely blocks any program of tax reform.
It is thought that the classification amendment would have been adopted if it had not been for Governor Donahey’s hostility to it. It ran strongest of the three submitted. The vote defeating all three of the amendments is interpreted as a repudiation of the Republican assembly which submitted them.
*
Manager Charter of Boulder, Colo., Sustained. —A recall election was held on the Boulder city manager charter on November 3, which resulted in sustaining the charter by 425 votes. The opponents of the charter cast about 56 votes less than they did at the previous special election, and the proponents of the charter about 1,000 votes less. This was due to the fact that the people did not get out and vote in the election. The fight was mainly on personalities rather than on the charter. Many people lost interest in the election on this account. The Hare system of voting seems to have been one of the main points of attack.
♦
Report on Municipal Policy of Brookline, Mass.—A special committee, constituted early in 1924, has completed and published a report on the municipal policy of the town of Brookline, Mass. This committee consisted of the moderator, the town clerk, the selectmen, and five citizens appointed by the moderator. Special mention is made of the work of Albert F. Bigelow, executive chairman of the committee, in shaping up the final report.
This report is devoted largely to a statistical study of the finances of Brookline. The expenditures of the town are compared with those of other cities and towns in the United States and in Massachusetts. In the country as a whole, Brookline stands second in per capita cost of operating expenses, Atlantic City being first. The report presents a brief analysis of the revenues and expenditures of the town. This is fully supported by statistical tables and charts. Many suggestions are made for increasing the working efficiency and for decreasing the operating costs of the various departments of the town government. The recommendations are summarized in an orderly and clear-cut manner. An interesting resumfe of the town’s history is given in the early part of the report. From this we
note that Brookline is almost three centuries old, having been founded in 1630.
The report is concise and readable. It consists of 69 pages, supported by 67 pages of statistical matter, a total of 116 pages. Municipal research organizations over the country should have a copy of this report in their files for reference. Executive and financial officers of cities comparable in population and conditions to Brookline would do well to study this report. ♦
Prospect Union Educational Exchange.—The Prospect Union Association of Cambridge, Mass., has undertaken the operation of the first known educational clearing house. An office is maintained through which educational advice and vocational guidance are offered to working men and women in Greater Boston. An annual catalog is published in which are listed the evening and part-time courses of a large group of carefully investigated schools. The catalog, just published, lists 2,300 classes and contains 147 pages. It is distributed among educators, teachers, ministers, social workers and other interested individuals, as well as to working men and women directly and through public libraries, factories, stores and offices. It is reported that many thousands of working people have already availed themselves of this service.
The Exchange is now in its third year. It is financed solely by its endowment, no fees being charged for its services. Its prime purpose is to bring each citizen in touch with the educational opportunity that he most needs. The results already attained indicate that it is a success.
♦
City Managers Hold Twelfth Annual Convention.—The city managers of the United States and Canada held their twelfth annual convention at Grand Rapids, Mich., on November 17-19. C. Wellington Koiner, president of the City Managers’ Association, included in his annual address a report on a recent tour of European cities. Mr. Koiner attended the third International Congress of Cities which was held at Paris the end of September. Round tables were conducted during two days of the convention on a number of interesting subjects, such as budget control and accounting systems, trafficregulation, problems of the city manager in a small city, employment of outside experts by the city manager, training for the city manager profession, and units costs for measuring the efficiency of city administration. Several topics of interest


770
NATIONAL MUNICIPAL REVIEW
were discussed at the general sessions. John N. Edy, city manager of Berkeley, Calif., spoke on the managerial functions of the manager. The civil service in manager cities was discussed by H. W. Marsh, secretary of the National Civil Service Reform League. Emily Kneubuhl, director of the City Manager League of Rochester, N. Y., spoke on selling the city manager plan to the people. Samuel C. May of the University of California outlined the progress of administration in European cities. Professor May has recently returned from Europe.
•
Power Commission of Three States Appointed.
—A joint power commission has been appointed by the governors of New York, New Jersey and Pennsylvania to study the transmission and control of electric power in the three states and to report to the three governors. The New York members are: William A. Prendergast of New York, chairman of the public service commission; George R. Lunn, commissioner, of Schenectady; and Charles R. Vanneman of Albany, chief engineer of the commission. The New Jersey governor appointed Charles Browne of Princeton, member of the public utility commission of New Jersey; Isaac Alpern of Perth Amboy, president of the Perth Amboy Trust Company ; and Robert F. Ingle of Beach Haven, former member of the state board of commerce and navigation. The Pennsylvania members are: Philip P. Wells, deputy attorney general and chairman of the Pennsylvania giant power board; Clyde L. King, secretary of the commonwealth; and Morris L. Cooke, consulting engineer and director of the Pennsylvania giant power survey.
This commission recently held an organization meeting at which Charles Browne was chosen
chairman, William A. Prendergast, vice-chairman, and Philip P. Wells, secretary. It was decided at this meeting to ask the governors of Delaware, Maryland, Virginia, West Virginia, Connecticut and Massachusetts to appoint representatives to sit with the commission as observers and advisors on the attitude their states would be likely to take.
The commission plans to study the power development, transmission and regulation in these three states and to recommend legislation so that the states will be able to decide their course of action under the compact clause of the Constitution which gives the individual states the right to enter into compacts as to transportation among themselves, making it unnecessary that the question should come before the Interstate Commerce Commission. Super-power and its distribution in the three states is one of the main questions that is to receive attention by the commission.
•
The Municipal Official.—“Man that hath to do with the public business is of few days and full of trouble.
“He cometh forth in the morning with high hopes and ere the setting of the sun of that day he hath met with many reverses and continueth not.
“Yet, O Lord, have compassion on the children of Thy creation that have to do with the public business. Be present and administer them comfort in time of trouble, for they are in trouble most of the time.”
It would be wise for every person to clip out this little bit of wisdom and save it. It is a good-natured rebuke for the many critics of municipal officials who know not whereof they speak.—Emporia Oaxtte.


Full Text

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NATIONAL MUNICIPAL REVIEW VOL. XIV, No. 112 DECEMBER, 1945 TOTAL No. 114 William Allen White A little while ago the 011 theBudget nationally-known editor of ThcEmporia System Gazetrc wrote us a letter in which he made the following comments on the budget system: 1, do wish you to know, and your readers to know that I think, at this time, one of the vital hues of our politics is the budget system. For thirty yeam in American politics, we have been going through a great bloodha revolution, changing our attitude toward government in many important are=. turning out corruptioniptS in ath and ststes, breaking machines local, rtste and national, and now we are in the position of an army that has just won a decisive victory. We must straighten out our lines. We must mop up. We must entrench. And the only way to correlate all government of life is to install the budget system. It wiU be the victory of the people in their fight for self-government which began in the nineties, a sue and lasting victory. Mr. White has so dramatized the campaign that we are ready to join forces with him and start to “dig in” for the ha1 battle. The municipal conRecent Municipal Elections tests decided at the election on November 3 largely overshadowed all others. In New York City, James J. Walker, the Tammany candidate, was elected mayor over Frank D. Waterman, the Republican-Citizens candidate, by a EDITORIAL COMMENT 71 1 plurality of more than 400,000 votes. The victory was complete and overwhelming; practically every elective office, from the highest to the lowest, in New York City was filled by a Democrat. The Boston election was perhaps the most surprising. Ten candidates ran for mayor. Among these were several brands of Democrats and one Republican. The Republican, Malcolm E. Nichols, was elected by a plurality of 91,000 votes. He is the first Republican mayor of Boston to be elected in 18 years. Nine of the 9% councilmen are also Republicans. Mr. Nichols is regarded by those who know him 89 an educated and competent man. The worst “charge” against him is that he was born in Maine. The Good Government Association and many Democrats favored him in the election. In Buffalo Mayor Frank X. Schwab was reelected. He received the largest vote ever polled by a municipal candidate since the commission form of government began in 1914. He beat by 212,000 the candidate believed to be blest by the favor of the I(. I(. I(. In Detroit Mayor John W. Smith, a Catholic, was reelected by a large majority over the avowed candidate of the Klan. In Louisville, Kansas City, Pittsburgh and Indianapolis there were hot contests for the office of mayor. Kansas City held its first election under

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7l2 NATIONAL MVNTCIPAL REVIEW [December the new manager charter. There were also spirited elections in Cincinnati and Cleveland, which are noted below. t P. R ~ldona in On November 3 the Cleveland and second councilmanic Cindm\.ti election under P. R. waa held in Cleveland. Twenty-five councilmen were selected from four districts k which a total of 47 candidates ran. Now unusual seems to have developed as a d of the election; many of the old councilmen were redected. Of the election, the Cbwlond Pbin Deabr for November 6 sags: The old bi-puti~~ codition nt.b control d tbed u a dt d the dsctiosl. but the public hr rrvoa for that it win mot intrifcrewithtbs propafunctio~dtbe rmiB yu’r dice. Without being either a andidate aurdroatcin&am&M.o.eaHgp Linrfod hillmdtbc~ flgamhtbe aghL He emegcr from it -th.n More. Ln Cincinnati the Grst election for comdmcn waa held under the new city manager charter. Nine councilmen elected at large by P. R. wen chosen from a total of 59 candidates. The majority of those elected WGR mdidates of the aty charte commjttcc, which sponsored the new charter. Th Enquitw, a Cincinnati paper which is unfriendly to the idea of P. B., said of this election: tbe b.lbt amthingtbe namu of the 39 Wta for nrrmbar d council, the rotm aakd to vote not witb but by meally tbei favorite ~~dihtrs np to in uuxdana with a highly annptiutul rprtem oi votoncording whi& when d U said .nd done., u only deciphbb by a trained roditor, a aertifisd WnUntuIk or UI -P=t matbemrticiul. wh8t Con+d mmtd uer& &G ~themsticiana and .ccount.nb must * nsr Yort The adoption of the Amendments four amendments to Adopted the New York state constitution is a victory for Governor hrp.e had yatud.~ in c~hg their Votes! Smith. Prior to the election, he made a speaking tour of the state in behalf of these amendments. Although all the amendments had been accepted by a Republican legislature, the up-state Republican organization openly opposed the fwo amendments which authorize bond issues, and carried on what Governor Smith called a “whispering campaign ”against the other two, which provide for the reorganization of the state administration and the judiciary system. Several leading Republicans, however, approved the two reorganisetion amendments and the bond iosue of $3oO,ooO,OOO for grade cmasing elimination. The strongest fight was waged over amendment number one, which providea for the buance over a period of ten yeara of SlOO,OOO,OoO for a state building program. This amendment received an atkmtive majority which may prove to be less than 30,oOO wh dl the returns from update are in. The &matbe majority for each of tk other amendments is estimated to be more thm 100,000. New York City piled up a large majority for each d the amendments, but thin .wan cut down by the negative vote of thq up state diini. The manager plan pztz wan adopted by Rochestu (N. Y .) by a majority of some 13,OOO votes. This was the result of a hard fought campaign in which the local Bureau of Municipal Research and the City Manager League did valiant service. Thd opposition made capital of the fact that only recently the city manager plan had been defeated in both Schenectady and Yonkers. The leading papem of Rochester supported the proposed plan and during the week preceding the election carried front page articles explaining the city manager charter. This charter will become fully effective on *

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19251 EDITORIAL COMMENT 713 January 1, 1938. We hope to have an article telling about this campaign in the next issue of the REVIEW. 9 Personalityin Heretofore we have Municipal been too much conAdministration cerned with the form and methods of municipal administration. We have largely overlooked the human elements. The results attained in the administration of the complex problems of present-day city government depend to no small extent upon the personality and ability of the administrator. This is especially true under the city manager plan, where the manager is directly responsible for the success or the failure of the administration. With these things in mind, we asked Norman Shaw of the Cleveland Plain Dealer to write an article on “Cleveland‘s City Manager.” This article appears in this issue of the REVIEW. * The District of Cocourt Decision lumbia Court of ApCurtails Comptroller General’s Power peals has recently decided that J. Raymond McCarl, comptroller general of the United States, i not any longer the judge, jury and executioner in cases where he claimed the right to deduct from the pay of naval officers to reimburse the government for alleged erroneous allowances drawn by these officers. The case came before the Court of Appeals on Mr. McCarl’s appeal from an injunction order signed by Justice Hoehling of the District of Columbia Supreme Court, in a suit filed by Commander John F. Cox, U. S. N. Commander Cox is the first of about 100 naval officers to take issue with the comptroller general. The Court upheld the declaration of Justice Hoehling that Congress said how much pay a naval officer should receive, and that no officer of the government could touch it. “The power to ‘dock the pay’ of any government officer rests with Congress alone,” said the Court. In holding that the comptroller general had no power to withhold pay, the Court called attention to a decision of a federal circuit court which reminded a government accounting officer that “there can be RO such autocrat.” To compensate somewhat for theloss of the Cox case, the Court of Appeals rated Mr. McCarl as winner in two minor cases in which the rulings were questioned. Mr. McCarI has recently become the stormy petrel of the government service. His decisions refusing to sanction payments by federal officers have caused much discussion. It is Iikely that he will be the subject of much criticism when Congress meets. Several suits have been entered against him. * AstheEnglish New York City’s See Father mayoralty campaign, Knickerbocker which resulted in the election of James J. Walker by a plurality of 401,000 votes, is discussed in The Nunicipal Journal, a London publication. The point of view of our English onlookers in this instance is worth noting; it should help us to. see ourselves as others see us. Tammany Hall and the political elements of the city are vividly portrayed. The political conflict between the city and upstate New York is sketched into the picture. Finally the composite picture of the city is presented thus : The city of New York presents many complications and difficulties. While it is the greatest city in America, it is not an American city. It is the largest negro city in the world; it is the greatest Jewish city; it has more Germans than some German capitals; and it has more Italiana than Naples. AII races of the world are repre sented in Nea York. It is the melting pot

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n4 NATIONAL MUNICIPAL REVIEW through which hmuicsna in the making must pars. The majority of the population still remain foreign in and kntiment, and are unaccustomed to popular elections and demoatic institutiona. * The Court of Errors Court Decision En& New Jarw~Zoe and Appeals, the court of final resort in New Jersey, has ruled adversely on zoning regulations. Since this ruling, the communities of that state regard their zoning system as having been practically cast into the scrap heap. The Court's ruling ww made up pretty much along the lines the Associate Justices had laid down. The right of a person to put upon his lot any budding that is not a legal nuisance or a menace to the health or safety of the community was reasserted. The Chief Juetice ran in one point that had not been so sharply stated before in the discussions. He said that the purchase of a pi? of property and the erection of a budding upon it did not give the purchaser the right to say what kind of structure some future purchaser must put on a nearby site; that the buyer taka the chances in the buying and iS only unfortunate if he loses in the game. * An investigation conFcdd Use of City mdcounty J& ducted by Hastings H. Hart of the Russell Sage Foundation shows that the United States government with no jails of its own is using one-third of all the city and county jails in the country without paying rent, and is boarding out more than 7,000 prisoners-including many who are merely awaiting trial-to local jails over which the federal government has no control. Many of these jails are extremely overcrowded and very unsanitary. During the past year conditions wen? studied in the 893 city and county jails and workhouses in which federal prisonem are kept. Dr. Hart suggegts, as a remedy, that the federal government establish 8 jail system of its own, each jail to serve a temtory with a radius of 50 miles, beginning with the points on the Canadian and Mexican bordem where there is at present the greatest congestion of federal prisoners, and extending the system until the government has jails of its own i~ a11 thickly settled sections of the country.

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CLEVELAND’S CITY MANAGER BY NORMAN SHAW In reconstructing city governments we have been concerned chiefEy m‘th form and methods; we have largely overlooked the human factor8. This article telh how the personality of the manager dominab the city afair8 of Cleveland, men to the extent of reveming the theory of the manager form of govenzment. ABOUT five years ago the city of Cleveland discovered itself growing weary with the continued unhealthy state of municipal organization and bad government which had clouded its civic horizon for nearly a decade. The citizens stopped for a moment to look awund, read the ledger and then the horoscope, thought through the city’s future, decided that the only remedy would be to make a radical change, and voted in a great experiment. “We shall try the latest thing in municipal government, ” city leaders said, “city manager, proportional representation, a non-partisan council, and all the trimmings. We shall clean house thoroughly, reorganize on a business basis, get a capable and experienced executive for a manager, pay him as much as the mayor of New York, give him a big car and a chauffeur, and see what happens.” The trial was on. In November, 1921, the new charter, handiwork of Augustus R. Hatton of Cleveland and backed by the independent Committee of One Hundred, was passed with a fair majority. Two years later the Grst council was elected, under the Hare system of proportional representation. It elected William R. Hopkins of Cleveland, railroad man and real estate operator, city manager, and he took offike on January 1, 1944. ACCOMPLISHMENTS OF THE CITY MANAGER What has been the result? In the ht year the city saved over half a .. .. .. .. .. .. .. .. .. .. I. .. million dollars from its income, expanded all services, broke street paving records and did it at a lower cost, brought the mall project for a civic center nearer completion, removed lakefront eyesores, rehabilitated the parks, greatly increased the police force, increased and modernized its equipment, and created a women’s police bureau. The second year produced an air field second to none in the country, great advancement in union station plans, organization of a metropolitan council, further increases in paving, street widening, and building, with financial records of the twelve months yet to be completed. Badly run down city property and seriously disorganized personnel have been rehabilitated. A distinctly new energy pervades the entire municipal organization, and a civic spirit unknown since the days of Tom L. Johnson has in many ways made itself felt. Commenting on this ht year, the Cleveland Plain Dealer said: “While saving is important, most citizens will agree that a far higher compliment is to be found in the quantity of constructive work done during the twelve months.” The year, says a bulletin of the Citizens’ League, of which Mayo Fesler is director, “presents a picture of real economy and efficiency which speaks strongly for the success of the city manager’s administration . . . Mr. Hopkins and his directors have had a better record of actual accomplishment than can be attributed to any More than that. 715

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716 NATIONAL MUNICIPAL REVIEW [December administration in this city in the past fifteen or twenty years.” The two years, then, have proved city managing an overwhelming success, and the man who is first of all responsible for it is William Rowland Hopkins. Two years ago he found himself suddenly pulled from private life into the whirl of city politics, given $4O,OOO,OOO a year to spend, a government to reorganize, and a million sceptical townsmen to satisfy as to every step he took. His triumph was immediate and complete, not only in the practical way outlined above, but in winning for himself and for the theory of government he represents, the highest confidence and praise. THE MANAGER AND THE LATEST ELECTION CAMPAIGN This fall when the second council under the new city manager charter came to be el&, not a campaign issue was to be found, so completely had the personality and success of the manager overshadowed every phase of municipal politics. With. sdy an exception, the candidates for office sought reelection on the basis of the succesa of the Hopkins administration, and hardly a word was spoken against him. As long as the candidate declared for Hopkins, no further questions were asked by the voting public. “he Democrats and Republicans, who were for all intents and purposes merged in one organization, neither endorsing a full slate of candidates, laid low during the campaign, generally refused to speak, declare their programs, or enter public discussiom. They tried to return to office because they had elected Hopkins. “Recommend Hopkins? By all means,” said Maurice Maschke, county Republican chairman, speaking of his endorsements. “Didn’t we choose him?” To which the Democrats replied a week later with the pIatform statement: “This party rejoices in the fact that its representatives in the council shared in the selection of W. R. Hopkins as city manager.” The independents, not to be outdone, immediately assured the public that they, too, would stand behind Hopkins, and accused the party organizations of actually opposing him because they had led the opposition to the new charter in 1921, and fostered the movement to weaken it last August by doing away with proportional representation. Beyond that, any effort they made to talk issues met with no response. The campaign, lie the two years of city government which preceded it, saw and heard of almost nothing but Hopkins. HOPKINB’ PERiWNALITY AND CAaEHB Who, then, is William Rowland Hopkins? By what power of intellect or personality has he succeeded in reaching this position of prominence? Is he merely a politician, or also an able executive? Is his knowledge of city government and adminiitration superfic;al, or really thorough .and exhaustive? “ Will ’* Hopkins is now 56 years old, of medium stature, slightly heavy built, with dark hair not yet turned gray or very thin. He has a quick step and a ready smile, with a manner always agreeable and pleasant, but he is not talkative. He possesses an imagination that can conceive a great city of the future, a business head that hows what should be done toward bringing it about, and a reserve which is ready to meet the routine or the disappointments of a day’s work. Hopkins was born July 26, 1869, at Johnstown, Pennsylvania, of Welsh descent, and third in a family of ten. He came to Cleveland at the age of 15, worked in a steel mill until he had

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9%) CLEVELAND’S CITY MANAGER 717 :nough money to go through college, wduated from Western Reserve Unirersity, and then, in 1899, from its aw school. He served one term in the :ity council, being elected before law paduation, two terms on the board of dections, was once deputy United States marshal, and once county Republican chairman. Most of his lie has been spent in msiness. With his brother Benjamin ie planned, financed, and built the 2leveland Belt Line railroad around the :ity, sold the line to the New York Central, and operated the Belt and I’erminal RRaIty Co. which sold factory iites along the route. For years he was active in the Cleveland Underground Railroad Co., which sought franchises for the construction of subways throughout the city, but was hilly forced by the World War to abandon its project. He was prominent in business circles, but little known as a public figure. SELECTION OF HOPKINS AS MANAGER The selection of Hopkins aa manager was not an accident. He was from the beginning considered the most likely candidate for the ofice, and following the election of the first council the appointment was freely predicted. As a matter of fact, he was first named by Maschke, whose party was a majority of the council, but in the vote, 24 of the !25 councilmen approved him. “We have investigated Mi. Hopkins’ quaiifications for the position,” said the ever critical Citizens’ League, “and we are of the opinion that he is exceptionally well qualified by education, training, experience, character, and breadth of view for the office.” Moreover, they continued, “Mi. Hopkins declares without hesitation that he will not accept the office if there are any personal, political, or other obligations which will interfere with his freedom of action in serving the city to the best of his absty . . . He also expects to be entirely free to choose his subordinates.” “I shall try to have pleasant and congenial relations with all who may have business with my office,” was the further promise of the new manager on entering the city hall, “but, pleasant or unpleasant, congenial or uncongenial, I shall not willingly leave undone anything I can do for the city of Cleveland.” We have already seen the success which crowned the initiation of the new system of .government, and the two-years’ record which has been established under Hopkins’ ree. It is to the manager himself that the great bulk of the credit should go for these results. True it is that the people were responsible to a degree, for they watched with interest if with scepticism, and were ready to show enthusiasm when results were forthcoming. The council, too, showed a new independence and initiative in legislating, and a rare good sense in keeping hands off the business of appointments. But from the sound administrative and executive ability of Hopldns, and from the popular appeal he was able to attach to his policies, came the real achievements. TEE ABILITY AND FIGHTING SPIRIT OF mE MANAGER Professor A. R. Hatton was probably right when he said the greatest problem of the city manager type of government is the city manager himself. In this day and age the administrative side of government has increased in importance until it overshadows all else, including policy determination, and especially in a city long attacked as the most fertile ground for political ignorance, honesty and efficiency are of unlimited importance. It may

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71 8 NATIONAL MUNICIPAL REVIEW [December sound very well to get the machinery of politics out of the hands of parties and groups and into business management free from partisan idluences, but unless the man chosen fulWi very high quaMcations, it would be better to return to the old system of electing the smoothest talker or slickest vote getter. It U not simply that Cleveland changed her form of government that the above results have been produced. The better reason is that the city’s executive has become an intelligent man, and he is expected to operate affairs on a business and not on a political basis. In almost every case the improvement can be ultimately traced back to the manager’s office in the city hall. Because business there is handled in an expert and scientific manner, and someone there knows how things should be done and will see that they are done that way, the new higher tone of government has come. This spirit of administering city affairs in a scientific manner soon pervaded every department and branch of city service. At the top the example was set. Every city employee has come to learn that Hopkins is more than a popular man, they know that he understands every phase of administration thoroughly from top to bottom. The city hall is pervaded with the feeling that business is being done on the basis of intelligence, expertness, and hard work. The fighting spirit of Hopldns is present in every act of business, and his personality extends to every end of the municipal organization. Take the matter of conferences as an example. In any discussion of the scientific or business details of some public utility or improvement, the manager takes his position at the head of the group of experts. When the engineers of the new union station want to talk business with the city, it is Hopkins they meet. He knows what the degree of curve or rate of incline or layout of street should be, and he can speak to them not only as public agent, but as engineer, lawyer, or business man. In any important city problem the manager himself generally studies its details and is ready with the facts when the answer is called for. The manager will tell what kind of paving ought to go on a certain street, how much it will cost a square yard, and what saving this is over the former cost. Together with his finance director he worked out a new accounting system of very considerable merit. Supplementing this thorough knowledge of problems of city administration, Hopkins has an inclination to work hard at his task. “The city manager himself has set a good example to all public employees by his own punctuality and long, intensive hours of work,” said the Citizens’ League at the end of the first year. The city hall knows him as a man with a full day of continual conferences with committees, cabinet members and distinguished visitors, in+vidual labor at his many duties, usually followed by an evening with more meetings of business or social nature. SELECTION OF SUBORDINATES The appointments made by Manager Hopkins, a matter in which the charter leaves him absolute independence, have been of the highest order in most cases. In one or two positions it was believed that political expediency was followed, but no real bad results have been evident even there. Generally the administrative staff has been filled on the basis of merit, and by the manager alone. Cleveland, as is probably the case in other large cities, has not been accustomed to finding the source of knowl

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19251 CLEVELAND’S CITY MANAGER 719 edge and intelligence in the oflice of the chief executive. The results of this altogether novel situation have been conspicuous from the first, and traceable to the farthest limits of the working staff and throughout the city itself. Not only has there sprung up the new atmosphere of honesty and seriousness and enlightenment at the city hall, but there has been shown a widespread enthusiasm for the new order, and a new and sadly needed faith in city government is coming to the front. Political pull and partisan favoritism have become the exception instead of the rule, and bad business is no longer excused because it has been done by a public official. SOME CRITICISM MINGLED WITII PRAISE There is, of course, some criticism of Manager Hopkins. The foremost objection raised is that, as a railroad man, he has given to the railroads many advantages over the city, especially in connection with the work of the new union station. Councilman Peter Witt, who alone has held out against the manager, frequently raises this question. The Plain Deak, in leading the fight for harbor and waterway improvement and development, often charges him with slighting the harbor situation, and looking at the lakefront as primarily a recreation opportunity. “A hit-and-miss project, admirable for the earnestness behind it but falling far short of what the situation requires,” is their characterization of his lakefront plsIlS. As a whole, however, the Cleveland situation has shown an almost miraculous change during the last two years, as compared to the previous administrations. The city manager plan has not done what its enthusiasts promised it would, but it has done far more tban was expected of it, and a thoroughly commendable record is presented by Manager Hopkins. Human nature CaMOt be changed over night, or perhaps the golden age might have arrived. While the city unites in almost unanimous praise for Manager Hopkins and his two-years record as municipal administrator, there is another and perhaps a less cheerful side to Cleveland‘s situation which I have heard discussed many times in the higher circles of city officers and municipal experts. The question they raise is this: With a manager as dominant in civic affairs as Hopkins has proved himself to be, is the city manager plan receiving an actual and a fair test? Or is Cleveland merely, for the time being, fortunate and must at some later time face the real test of her charter? THEORY OF MANAGER GOVERNMENT REVERSED It is clear that the theory of the city manager scheme, and the spirit of the Cleveland charter, has not been followed. Both alike call for a dominant council and a manager who is their ap pointee and servant, charged only with the duty of carryihg out the policies they determine. The council membership, according to the theory, shall be elected on the personal merits of each candidate and they shall then choose a man capable of handling as a business enterprise the city’s affairs. He shall be responsible directly to them, and for the administration only of the policies they decide upon. The dominant position in city affairs shall be occupied by the council and its spokesman and chairman, usually called the mayor. This proper line of demarcation between the policydetermining function of the council and the policy-administering function of the manager ought to be a fairly clear one. Experts are almost. unanimous in making such a separation, most charters call for it,

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720 NATIONAL MUNICIPAL REVIEW [December and the managers themselves in their recent “Code of Ethics” speak of the manager as “a hired employee of the council,” and say, “Loyalty to his employment recognizes that it is the council, the elected representatives of the people, who primarily determine the municipal policies. ” In Cleveland, however, quite the reverse of this situation prevails. There the whole stage of municipal affairs is occupied by City Manager Hopkins. The council and the mayor have taken back seats, turned over the reins to the manager, and virtually promised to be good. Last month over a hundred councilmanic candidates were clamoring for office, basing their election plea solely on the argument that they were Hopkins men, they had helped elect him, support him, or would stand behind him. Here it is plain that the subordinate-manager and dominant-council theory of city managership has given way to an entirely new situation not anticipated by promoters of the scheme. The continued success which Hop kins enjoys in leading public opinion and determining policies in advance of the council has won him the name among some of “Chautauqua Bill,” the “Rotarian booster and ballyhoo artist.” He is charged by them with insubordination and opposition to his employer, the council. In an attempt to assure his political position against councilmanic disapproval, they say, he goes out making speeches, speah with superlatives and in glowing terms of the great things of the future, and thus leaves the council no way out but to approve all that he promises. In his first annual report he so far forgot himself as to say to the council: From yourselves we have received the most generous support which has been fully appreciated.” All this criticism is not fully justi66 fied, but there is much that can be fairly said, at least from the theoretical point of view, against the course he pursues. It is clear that when he took his position, he did not appreciate the limitations on his office, and he had an inadequate conception of the relations he should bear to the council. Many believe that he is now changing his attitude, and confining his activities to their proper sphere. Others think he will lose no opportunity to strengthen his position of ascendency. The Citizens’ League was among the first to see the dangers in the increasing power of the manager, and it is partially responsible for bringing the mayor forward to his proper place as city spokesman and leader in public discussion of civic improvements. The League’s argument was sound. If the manager should become too dominant and powerful, forcea for and against him would soon spring up, and he would become a campaign issue in councilmanic elections. People would vote for or against a candidate because that candidate was for or against Mr. Blank as manager. Real issues of city importance would be forgotten, and the caliber of councilmen would be lowered as they were elected on less important principles. For instance, they pointed out, a leading candidate has declared himself in favor of municipal ownership of the traction lines. This is an important issue, and one upon which all candidates should make clear their stand, instead of sliding into office on the basis of who shall be manager. Moreover, the League held, if the manager leads in policy determining he would have to take the stump for or against public issues, and thus lie himself up with certain parties or groups, instead of confining himself only to business administration. These dangers are very real, and al

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19951 THE INTERNATIONAL UNION OF CITIES 731 though they have been largely avoided in Cleveland because of Hopkins' success in keeping everyone on his side, trouble may yet arise should the disturbed balance between manager and council continue. Because Hopkins is a capable leader, he has been successful in playing this one-man act in city government. Nevertheless the theory of his actions is bad and the precedent dangerous and the only safe come is to restore the council to its full policy determining power. Not until then can Cleveland secure a real test of her charter, and of the city manager scheme in a large city. Because of the near dictatorship that has existed in Cleveland, we cannot say that the plan or the charter have yet been adequately tried. The public, however, is not inclined to dwell too long on theory when they have results before them. Whatever criticism there may be of his admjniPtrstion, his greatest enemies, if he has such, unite with his friends, in acclaiming his administration a very great success. If this is a real test of city managing, the results are sufficient to furnish a very great recommendation for all other large cities. Optimism reigns supreme aa Cleveland enters the third year of her experiment with Hopkins at the helm. THE INTERNATIONAL UNION OF CITIES A REPORT OF THE PARIS CONGRESS BY CHARLES FAIRMA" The high lidfa of &I Third Conqrm of the Intmrhd Union of CitiR, by a &apetat ~bsrrpct. TEE Third Congress of the Intemational Union of Cities (Union Intemationale des Villes et Communes) was held in Paris during the week of September 28-October 4 with a large body of delegates in attendance. It should perhaps be explained that the International Union was founded at Ghent in 1913, for the purpose of exchanging information concerning the many important questions which are common to municipal administration in all countries. The framework of city government, the relations between local and central authorities, etc., do of course vary from country to country, and sometimes even between various Delegate representing the city of Cambride, and the Harvard Bureau of Municipal Research. .. .. .. .. .. .. .. .. .. .. .. .. cities of the same state. Nevertheless there is a community of interest in the solution of such great administrative problems as housing and city planning, tr&c regulation, water purification, and garbage disposal. With the growth of a city these problems become more complex, and more deserving of careful study by competent administrators. This is more generally recognized in Europe than in America. The Congress of the International Union provides a forum for the discussion of these problems, while the permanent bureau of the Union serves as a clearing-house for information desired by municipal authorities in all countries. In form the International Union is a federation of national unions, such as

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799 NATIONAL MUNICIPAL REVIEW [December the Association of Italian Cammunes, the Union of French Cities and Communes, the Union of Belgian Cities and Communes, the Union of Dutch Cities, etc. No such national organization exists in the United States, but such associations as the National Municipal League and the leagues of municipalities which exist in many of the states are earnestly desired as adherents by the officials of the Union. PERSONNEL OF TEE PARIS CONGRESS The Paris Congress comprised 750 delegates, from 35 countries, representing more than 300 cities, of which 45 were national capitals. Delegations came from virtually all the countries of Europe, as well as from the United States, Brazil, Canada, China, Colombia, Costa Rica, Cuba, Egypt, Japan, and Mexico. The cities of Germany had misgivings as to the value of a conference held in Paris, and hence declined to participate. This was regrettable, as international rivalries are entirely irrelevant to the work of the Union, and the administrators of German cities would have been welcomed without reference to past animosities. Neither were there any delegates from the cities of Soviet Russia. Some of the more important European cities represented were London, Paris, Rome, Vienna, Budapest, Constantinopie, Tokyo, Madrid, Lisbon, The Hague, Copenhagen, Warsaw, Prague, Bucharest, Brussels, Amsterdam, Rotterdam, Helsingfors, Trondhjem, Sheffield, Barcelona, Bologna, Milan, Naples, Geneva, Lausanne, Berne, and Belgrade. The New World cities represented were Quebec, New Orleans, Pittsburgh (by the mayor), Washington, D. C. (by the municipal architect), Greenville’ s. C. (by the mayor), Jacksonville, %. (by a city commissioner), Berkeley, Calif., and Cambridge, Mass. There were also representatives from the City Managers’ Association, the League of California Municipalities, the League of Kansas Municipalities, the American City Magazim, the University of California, and the Harvard University Bureau of Municipal Research. French and English were the principal languages spoken at the Congress. As the Europeans were on the whole better linguists than the Americans, most of them addressed the Congress in French, after which a brief &sum6 was usually given in English. The delegates from Copenhagen and from Tokyo, however, made their addresses in English. s THE SESSIONS The opening session was held in the H6tel de Ville, or city hall, with the president of the municipal council of Paris in the chair. The morning was consumed in hearing the addresses of salutation appropriate to the occasion -amenities which consume the time of all international conferences, but which are always more elaborate in Europe than elsewhere. Representatives of the Secretariat of the League of Nations and of the International Labor Office at Geneva brought assurav of a desire to co-operate with the Union. During the afternoon the delegates listened to the report of the secretary-general, Senator Emil Vinck of Belgium. The second day ww devoted to an automobile trip of inspection, covering points of interest in the vicinity of Paris. These included a group of lowpriced dwellings constructed and maintained as a public enterprise by the French capital in an effort to cope with the acute housing problem. The trip also included some parks, a model school building, a municipal bathhouse, and ended with a visit to the palace at Versailles.

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19951 THE INTERNATIONAL UNION OF CITIES 733 Wednesday was devoted to the discussion of papers, the sessions being held in the Grand Palace at the Exposition of Decorative hs. Various national unions of cities gave reports on their activities. It appeared that their efforts included conferences and visits with the municipal officials, the collection and distribution of valuable data, and the protection of local interests against encroachment by the central authorities. An exposition of the workings of the city manager plan in the United States was given by the president of the City Managers’ Association. A paper was also presented by the secretary of the Association of American Municipal Organizations on the services performed by the state leagues of municipalities in the United States. He dwelt upon four contributions which these leagues do or should make to city 05cials: (1) advice upon request as to the costs of various phases of city administration; e.g., the cost of fire or police protection in various cities, thegoing-rate on municipal bond issues, etc.; (2) legal protection of the public interest against public utility corporations; (3) assistance in drafting city charters and ordinances, and in securing the passage of sound legislation by the state legislature; (4) development of a system for the computing of unit costs, so that, for instance, a city administration may know just how much it should pay, per unit, for lighting, paving, etc., of given specifkations. Mr. Montagu-Harris of the British Ministry of Health made an interesting preliminary report on the forms of local government in the principal countries of the world, including such topics as the relations between local and central authorities, the extent of municipal home rule in financial matters, and methods employed in various countries for floating municipal loans. The paper was only a comparative study of existing facts and did not attempt to draw any conclusions as to whether one system was prefemble to another. For, as was pointed out, the highly centralized system obtaining in France (and imitated in many other countries) would be quite intolerable in Great Britain or the United States, where each community feels that it should control its own local affairs without interference from London, Albany, or Harrisburg or wherever the central authority may be. The general dearth of capital in Europe at the present time makes it more dBcult for European than for American cities to tloat loans for public works. In Holland, Roumania, Italy and Spain the national government has lent its assistance by establishing banks to facilitate the raising of funds needed for the development of the communes. The fourth day of the Congress was consumed in another excursion to various points of interest. There was a display by a regiment of sapeur-pompiers, as the French fire departments are called. The trip included the plant for the incineration of household wastes from the city of Paris and the suburbs. Later the electric and gas plants at Grenneaers were visited. HOUSING AND CITY PLANNING The land policy of towns and cities, with special reference to its influence upon the housing problem, formed the subject of a report given by one of the Dutch delegates at the Friday morning session. It seems that on the Continent the communes (the unit-cells, politically) are much larger owners of land than are the cities and towns of the United States. For example, the commune of Zurich, Switzerland, owns one-third of all the land within its limits and has even greater holdings in the suburbs. Utrecht owns about onefourth, Amsterdam one-tenth, Buda

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724 NATIONAL MUNICIPAL REVIEW [December pest one-seventh of the total area within their respective limits. The Dutch delegate recommended that each municipal government should acquire and occupy a dominating position in the local land market. It should encourage the use of land for what the city administration deemed to be desirable purposea by offering public land for sale or long term lease, at prices to be varied according to the use made of the land. Thus a site to be used for lowpriced dwellings should be sold more cheaply than if the same plot were to be used for less desirable purposes. Where the owner of a plot of real estate refused to conform to the wishes of the city government a.s to the use to be made of his land, he would be compelled to do it under threat of expropriation. The city would prevent exorbitant prices being charged for land by offering some of the city’s holdings at less than the market rate. In short, the city government should serve .as a balance-wheel to the real estate market. The delegate from Rome added that many Italian cities had made an energetic use of the right of expropriation to acquire land suited to the erection of dwellings where the owner declined to build thereQn. This method of carrying out a city plan is of course quite merent from those employed in the United States, where plans for the city’s future are made through zoning ordinances passed under the police power (limiting the use of private property in the interests of public health, safety, morals, or general welfare). Probably no friend of good municipal government in America would advocate the city’s engaging in real estate operations except when necessary for strictly public purposes, even if so drastic a use of the power of expropriation were constitutional in America. How inapplicable were the Dutch delegate’s recommendations to the conditions of land ownership in England and America was pointed out by a delegate from the British Ministry of Health. He regretted that the program did not include a paper on city planning as practiced in America, which was, he said, the country which had made the greatest progress in city planning during recent years. He wag opposed to the method of carrying out a city plan which the Dutch delegate had advocated. Thus was clearly brought before the Congress the fact that the field of public action is larger on the continent of Europe than in Great Britain and America. The delegate from Bucharest, the capital of Roumania, remarked that municipally-owned dwelling houses in Paris returned a profit of only 14 per cent, and that public ownership with such poor financial results could not be practised on a large scale. The di5culty experienced by Roumanian cities in constructing the public works made necessary by city growth was the impossibility of borrowing except at unfavorable interest rates. TEE GQVERWMENT OF METROPOLITAN AREA8 The last question discussed by the Congress was of particular interest to cities situated in metropolitan areas. What solutions are adopted or proposed in the various countries to meet the difEculties which result, in great metropolitan communities, from the fact of their division into several separate autonomous corporations? The principal paper was presented by M. Henri Sellier, himself mayor of one of the suburbs of Paris and a member of the general council for the Department of the Seine, hence an expert in French municipal government. He brought out the fact that in France and in a number of other European countries

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19251 THE INTERNATIONAL UNION OF CITIES 735 the national government allows or compels the various neighboring communes which form metropolitan areas to enter into syndicates or unions for the satisfaction of various common needs such as the providing of a public water supply, a gas plant, or an electric supply, or the disposal of wastes. This, in other words, is an arrangement much similar to that ‘applied by the legislature of Massachusetts to the water supply and sewerage system of the Boston metropolitan district. But this syndicate of several communes is subject to the disadvantage that the various conflicting interests are difficult to reconcile. One city, by refusing to co-operate or to allow the laying of necessary conduits within its limits, may thwart the will of the others. The remedy for this, heagreed, was the political consolidation of the metropolitan area, with either a uni6ed or a federal form of government. But where local pride runs strong, as in the communes of Italy, annexation is bitterly opposed. The representatives of Milan asserted that Italy was not likely to “contract the urban elephantiasis from which other nations are suffering.” M. Sellier by the way commended the American method of dividing the towns and cities of a state into classes and of legislating separately for these classes, rather than the French method of legislating for all communes together, whether the commune be an Alpine hamlet or a great industrial metropolis. On Friday evening the closing session was held. At that time the delegate from New Orleans expressed, in graceful French, the appreciation which the Americans felt for the privilege which had been theirs of participating in the Congress. The last day of the week was devoted to a trip to inspect the methods employed in treating with ozone the drinking water supply for Paris. On one of the evenings the members of the Congress were the guests of the City of Paris at a theatrical performance; on another a banquet was provided; on a third the delegates were invited to attend a reception offered by the city. The proceedings of any international meeting are necessarily slowed up by the diversity of language and the delays incident to translation. There are also differences of law, customs, and national temperament, which sometimes make a discussion of conditions in one country unintelligible to delegates from another. Finally, it is not to be supposed that only one week of study will lead to any revolutionary solutions of the dficult questions of municipal administration. But in the case of the delegates who were at the same time the responsible officials of their respective local governments, the Congress offered a splendid opportunity to get in touch with municipal progress throughout the world. Some day, let us hope, this International Union will be induced to hold its Congress in America.

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PITTSBURGH’S GRADED TAX IN FULL OPERATION BY PERCY R. WILLIAMS M& Pittsburgh Board of Asscssoza A discussion of th wking of the Pittsburgh grad.ed tax plan, the purpose of which is lo encourage business and improvements and to dimwage land spenJation by &eaSing lazes on budding8 and .. .. .. .. .. .. .. increamkg iazea on unimprowd land. :: .. PWSSWGH’S unique experiment in taxation has attracted widespread attention and there have been numerous inquiries, some of them from remote comer% of the world, concerning the operation of the plan and the effects resulting therefrom. There has been a good deal of misconception. It has been heralded by some as an example of “the single tax,” which, of course, it is not by any means, but this impression has gained considerable currency, resulting in an exaggerated idea of what Pittsburgh is doing and leading many to anticipate something revolutionary in the way of effects. The Pittsburgh tax plan may be briefly described as having two notable features: 1. The entire tax revenue for municipal purposes is derived from taxes upon real estate. There are no taxes levied by the city government on my other form of property or income. 2. The municipal tax rate on buildings is fixed at one-half of the tax rate levied upon land. This latter feature is known aa “the graded tax.” EFOLUTION OF TEE GRADED TAX The graded tax has been in process of evolution since the year 1913, when the law was passed by the Pennsylvania legislature. It has now reached its goal, the ultimate point contemplated by the law having been attained 7P6 on January 1,1925, when the half-rate on buildings became effective. The law provided for the partial exemption from taxation of improvements upon real estate, with the ratio of exemption increasing at each triennial assessment. This partial exemption has been effected, not, as commonly assumed, by reducing the assessed valuation of buildings, but by fixing from year to year a lesser tax rate on buildings than that levied upon land. The law became effective January 1, 1914, and there have been five successive steps, corresponding to the triennial assessment periods, in each step a certain proportion of the tax burden bing shifted from buildings to land; in the Grst period, 1914-15, the building rate being 90 per cent of the land rate; in the second period, 1916-18,80 per cent; 1919-521, 70 per cent; 191212-34, 60 per cent, and in 1935 and thereafter, 50 per cent. (Note Exhibit “A.”) EXHIBIT “A” Courpmmm STATEMENT or CITY TAX RATES UNDEE Gnuru Tax Pml Flat Taz Rd Rdpuirad t. Land Taz Building Ta Roue &nu Ye Mill8 Milla Rswnus 1914. ......... 9.4 8.46 9.06 1915.. ........ 10.2 9.18 9.8 1918.. ........ 12.8 10.06 11.83 1917.. ........ 11.5 9.2 10.6 1918.. ........ 14.5 11.6 13.3 1920. ......... 19. 13.3 16.6 1921 .......... 20. 14. 17.6 1922. ......... 20. 12. 16.6 1923.... ...... #). 12. 16.68 1824 .......... 20. 12. 16.46 1926. 19.6 9.76 16.2 ........ 1919.. 15.7 10.99 13.8 ......... 1 Compiled by Pithburgh Acwuor’r Offioe.

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PITTSBURGH'S GRADED TAX IN FULL OPERATION 737 While Scranton is governed by the same act, it being necessary to include in its provisions both of the secondclass cities of the state in order to meet the constitutional requirements, the graded tax law is distinctly a Pittsburgh idea. The proposal was originally sponsored by the Pittsburgh Civic Commission, which for a number of years was one of the most iduential civic bodies of the community. But it was largely through the political influence exerted upon the legislature by Mayor William A. Magee, then serving his first term, that the measure was quickly adopted into law. EFFECI' OF THE GRADED TAX PLAN With the graded tax plan now fully effective, it is possible to tell, in general terms, just what the new tax system means to Pittsburgh and its taxpayers. There is, of course, no loss of revenue through the graded tax. The law of 1913 has no eflect whatever on revenues or upon expenditures. It simply brings about a shifting in sources of revenue. Its e5ect is upon the respective tax rates on land and buildings which are fixed annually by the city cound at such figures as will produce the sum estimated as necessary to meet the expenditures set forth in the budget. Careless writers have frequently stated that Pittsburgh has reduced building taxes 50 per cent. This, of course, is not literally true. What they mean to convey is that, through a gradual process, the building taxes levied by the city have been brought to a point where they bear a ratio of 50 per cent to the city land taxes. The building tax rate would not have been reduced as much as 50 per cent, even had real estate values and government costs remained stationary at the 1913 figures, because we must, of course, take into account the automatic increase in the rate of the land tax which has been taking place as contemplated under the law. The estimate made on the basis of 1915 figures was that, if the law were then to become fully effective, the tax rate on buildings would be reduced 40 per cent. But the proportion of land and building valuations has changed materially since 1915, building values steadily gaining on land values, and, what is more important, the cost of government service has tremendously increased everywhere, as have all costs that enter into the cost of living and the cost of doing business. So the building tax rate in Pittsburgh is actually higher to-day than it was in 1913, but only very slightly higher so far as city taxes are concerned, because the operation of the graded tax law has steadily reduced the ratio of the building tax to the land tax. The city tax on buildings in 1913 (under the uniform rate plan) wag $8.90 per thousand dollars of valuation; to-day it is $9.75 per thousand. This means that our city building tax has gone up in this 12-year period of soaring taxes only to the extent of 85 cents per thousand, while on the other hand, our city land tax has gone up from $8.90 to $19.50 per thousand, an increase of $10.60, showing that the city tax on land has more than doubled in this period, while the city building tax is back practically to the 1913 figures. It may be interesting to note that the building tax rate has ffuctuated upward and downward. Beginning on the basis of 8.9 mills in 1915 (which applied alike to buildings and land), the building tax rate was somewhat reduced in 1914, when it was fixed at 8.46 mills, but from that point rose to the peak of 14 mills in 1931, followed by a 12 mill tax for the years 1932-23-24, and finally dropping to 9.75 mills in 1935. But throughout

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738 NATIONAL MUNICIPAL REVIEW [December the pmxs the ratio of building to land tax was lessened every third year. BaLFT OF TAX FROM BUILDING8 TO LAND Exactly what does the graded tax mean to the taxpayer in dollars and cents? It means that buildings pay $5.40 less per thousand dollars of valuation than they would pay if the old flat rate system were in effect. It meam that land pays $4.35 more per thousand than would be required under the flat rate system. Land therefore pays approximately ten dollars per thousand more than buildings. The city tax rates for 19115 are $19.50 on land and $9.75 on buildings, and these rates raise a revenue of approximately $15,000,000. To raise the same revenue with a flat tax rate would require a levy of approximately $15.15 per thousand. The effect of the graded tax on the tax figures can therefore be accurately measured by the difference between $15.15 and the present rates, and similar calculations have been made that enable us to compare the rates required under the respective systems for each year that the graded tax has been in operation. In wholesale terms, this signifies that there has been a shifting for this year 19% of approximately $2,400,000 in taxes from buildings to land. The total assessed valuations for 19% are: 004,840; total valuation, $990,480,130. Under the graded tax law land values in Pittsburgh pay a total city tax for 1925 of approximately $10,700,000, while at the rate of $15.15, which would prevail were the old tax system now effective, the taxes on land would be only about $8,300,000. Buildings, under the graded tax, pay this year in taxes $4,300,000, while at the rate of $15.15, this figure would be raised to approximately $6,700,000. These figures confirm the fact that there has been a shift land, $548,475,280; buildhe, $443,from buildings to land of about $2,4oo,Ooo, a very considerable item out of a total city tax revenue of &?teen millions. PLAN -ED PI l"8 APPLICATION As the graded tax law is the only tax law of its kind in the United States, there has naturally been much discussion as to its effects, not only upon the tax situation itself, but upon real estate conditions. Therefore, before proceeding further into the discussion, it is important to note that the foregoing figures, though very signscant, relate only to city taxes, in the strict sense of the term. This ateen million dollars raised by the city from real estate is by no means the entire tax revenue that is obtained from Pittsburgh real estate, as it is found, upon examination, that the board of public education and the county of Allegheny together raise from Pittsburgh real estate the approximate sum of $17,500,000. And in the collection of this vast sum there is no exemption of buildings whatever, as neither the school tax or the county tax are levied under the terms of the graded tax.law, this measure relating to cities only. The board of public education, representing the school district of Pittsburgh, a political unit distinct from the city itself, raises from taxes on Pittsburgh real estate the approximate sum of $11,390,000 this year, by a flat rate of $11.50 per thousand, the school tax being based upon the city's assessed valuations. Of this total sum, approximately $6,310,000 is obtained from land assessments and $5,080,000 from building assessments. When these figures are added to the city taxes, we hd that the combined taxes derived from land amount to $17,010,000, while the combined taxes on buildings total $9,380,000. The county of Allegheny raises from

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19251 PITTSBURGH’S GRADED TAX IN FULL OPERATION 729 taxes on Pittsburgh real estate the approximate sum of $6,110,000, by a flat rate of $6.375 per thousand. It is not possible to give the definite distribution of this sum into land and buildings, as the county tax is based upon the county’s assessed valuations, which do not separate land and buildings, though the proportion allotted to each would probably not differ greatly from that shown under the city’s assessments for the school tax. These facts tend to show the limitations of Pittsburgh’s graded tax system as it now stands with present legislation fully effective, and to indicate to just what extent the building exemption plan has been carried. The facts cited show how far Pittsburgh is from the single tax, either “unlimited” or “limited,” and thus serve to give a better understanding of the Pittsburgh tax experiment, which is really a moderate tax reform applied in a very conservative manner. Nevertheless, it marks a very distinct departure from the general practice of American municipalities and the material change which it has made in the distribution of the tax burden makes it reasonable to look for certain moderate effects upon real estate conditions. PLAN STIMULATES IMPROVEMENT OF LAND It is my judgment that the graded tax plan has undoubtedly tended to stimulate the improvement of real estate. It has been said that there is entire absence of evidence that the graded tax has in0uenced the erection of a single building. And perhaps actual proof that it has done so cannot be given, because it is very di5cult to determine just what motives are most influential in inducing the builder to build. Yet friends and opponents of the graded tax alike agree that the higher land tax has been influential in inducing those who had held large tracts of land idle to sell at more reasonable prices, because the holding of vacant land for long periods is becoming unprofitable. We know that Pittsburgh has had a boom in building during the past few years and official statistics of building in Pittsburgh show a very marked increase. Whereas, in 1913, the last year under the old tax system, the total number of building permits was 3,461 and the total estimated value of new buildings was $13,870,955, for the past three yean we have this record: 1922, 6,1259 building permits, value, $35,257,375; 1923,7,179 permits, value, $33,133,763; and 1934, 8,285 permits, value, $34,%6,450. This shows new construction in the past three years of over a hundred million dollars, a record which has never before been equalled in the history of Pittsburgh. Another index to the improvement of real estate in Pittsburgh is provided by the record of assessed valuatiom over the period that the graded tax has been in operation, and when we examine this record we find that the total building assessments have gone up from 283 millions in 1914 to 443 millions, approximately, in 1935, while land assessments have only increased in the same period from 480 millions to 548 dons. The Pittsburgh Civic Commission, in its tax revision bulletin of 1913, contended that high land prices, with accompanying high land rents, were one of the chief obstacles to Pittsburgh’s progress, and a survey made at that time brought out the fact that the average value of land per acre in Pittsburgh, as shown by assessments, was second only to that of New York City. This indicated that Pittsburgh’s land prices were abnormally high and it was an avowed purpose of the graded tax plan to lower land prices or to retard

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730 NATIONAL MUNICIPAL REVIEW [December the rising process. No careful analysis has been undertaken such 89 would be necessary to bring out all the fads aa to what has taken place with relation to land values since the graded tax law has been on the statutes, but it seems beyond doubt from the evidence at hand that it has had a tendency toward lower land prices; that is to say that while land values constantly rise in all growing communities, the higher tax on land has prevented such inflation as we have witnessed in our own community in times past and such as has taken place in other large cities in recent years. Yet it is fair, in speaking of the higher land tax, to point out that the increased cost of local government has been responsible for this higher land tax to a greater extent than the graded tax law itself. Combining city and school taxes on land, we find an increase from $14.90 per thousand in 1913 to $31.00 per thousand in 1925, or a gain of $16.10, of which $11.75 represents the increase in the cost of public service and only $4.55 represents the indue to the shifting of taxes from buildings to land. But while judgments may differ as to the exact effects of the graded tax upon real estate conditions, the facts as to its results in lower taxes are subject to positive proof, being merely a matter of arithmetic. Since the first of the year 199.5, when the graded tax law became fully effective, a study has been made from the official records of the department of assessors which reveals some very interesting facts. OWNER8 OF IMPROVED PROPERTY BENEFITED While we have not undertaken an analysis of the entire city, our study of the tax situation has gone far enough to clearly indicate that the great majority of real estate owners are saving money in taxes through the graded tax law, in most cases this saving amounting to a very substantial percentage of their city taxes. It follows, of course, that the owners of vacant or under-improved land are paying higher taxes, as contemplated by the sponsors of the law, which, as already intimated, means that such land, where valuable enough to pay a considerable tax, is not likely to remain vacant or under-improved for a long period. Owners of improved property of all classes are benefiting in lower taxes by reason of the graded tax law. Our survey of a large number of typical cases shows very great annual savings in taxes paid by various offike buildings, manufacturing plants, warehouses, apartment buildings and single-family dwellings, the degree of the saving varying with the size and type of building in relation to the value of the land upon which it stands. (Note Exhibit “B.”) Two of the largest downtown ofice building properties show tax savings by reason of the graded tax for this year of 10 and 15 per cent respectively, in each of these instances the actual savings in taxes for the one year being in excess of seven thousand dollars. Apartment houses almost uniformly show substantial savings in taxes under the graded tax for the reason that they are usually structures of some size and value erected upon land of moderate price such as is to besfound in residential districts. Two of the newly erected apartments show savings of 27 and 33 per cent respectively, in one case the actual tax saving being over ten thousand dollars for one year. On the other hand, a number of manufacturing plants and department. stores occupying valuable land may be found which will not show any direct benefit in lower taxes from the graded tax, but as an offset to this, it should be re

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19251 PITTSBURGH’S GRADED TAX IN FULL OPERATION 731 membered that very substantial savBut it is the home owner who stands ings have been made by manufadurers out as the chief direct beneficiary of through the act of 1911 completely the graded tax. Only in rare instances exempting all machinery from taxation, do we find a home owner who has not while the big department store is enbeen benefited to some degee by tirely free of taxation upon its stock of lower taxes through the operation of goods, whereas in other cities such the graded tax law. The most striking stores pay beavy taxes on their example of the effect upon taxes on “personal property.” homes is afforded by an analysis of the taxes paid by property owners in the 13th ward, a typical residence wad, which shows that out of a total of 16.8 4,252 assessments, there are 3,1250 TofalT-u ~lat~~ ~~~a~i~ cases where the taxes paid under the Bellefield Apt. . . . . $3,654.11 $5,280.33 $1326.22 Rumkin Apt.. . . . . . 6.814.08 9,643.48 2.829.40 ~(illp~dward~~pt.. 4.368.06 6,247.05 1.888.09 under the old flat rate system, these Georgian Apt. . . . . 2,057.25 2,819.60 762.35 Belvidere Apt. . . . . 1,173.56 1,636.74 463.18 savings ranging from 5 to 35 per cent. Sohenley Apb.. . . . 26,866.13 36,901.80 10,035.67 Te-CourtApt. 242268 3408.44 k9s5.76 Of the remaining 1,009 assessments Alder Court Apt.. . 2:026:16 2:910.60 EXHIBIT *&B--TYPICAL TAX SAVINGS APABNENT Honers 1926 Old Plan l8td Nann graded tax are less than would be paid Wightmn Apt. . . . 766.35 1,091.36 $%: where the taxes wid under the graded Morrowfield Apt.. . 8.158.41 12,059.37 3,900.96 tax system are higher, it is interesting hfAnuTAcroRmNo P-S to note that 980 of these represent is3 vacant lots, leaving only 22 “improved ” properties that are not paying Weatinghowe Elec. lower taxes, and these 22 are proper& Mfg. Co.. . . . . $6,961.61 $9,169.85 $2,208.20 p, Me?&.. . .. 4.900.85 6.175.15 1.2SV3.36 ties that are not very adequately imatIOMlBrcmtC0. 13.211.80 17.568.16 4.356.51 Henbey BW.. . . . . 5.416.13 6.311.80 895.67 proved. A. J. Logan & Co.. 2.735.46 3,181.05 445.59 Liberty Baking Co. 4.191.72’ 5,395.38 1,203.66 There has an in the Raeek-McJunkin minds of many that the owners of large Dairy Co. . . . . . 6.463.48 7,490.71 1.027.23 Armstmug CorkCo. 10.087.35 11.989.76 1.902.41 o5ce buildings profit by the graded D. L. Clark&.. .. 3.840.14 4.505.72 665.58 AUins a COW CO.. 2.812.68 3,256.44 443.76 tax at the expense of the home owners because of the relatively small building Orrlcn BVIWINQS investment of the latter. This as101s oldphn 1916 sumption, however, is altogether conNanu Tofal Tazca Pld Taz Taz Samning ~1.833.53 ~6g.og8.43 $7.2&4.90 traW to the facts. The high land 48.516.00 56,057.80 7,541.00 values in the downtown bushess Frick El&. hex. 17.270.18 19,921 88 2.651.70 Union Bank Bldp.. 17.246.19 19.523.18 2,276.99 district, known as the ‘‘Golden TiCommonwealth Bldg. 14.103.18 14.793.24 690.06 Keystone ~k. Bldo. 8,915.21 9,419.29 504.08 angle,” much more than offset and Carneme Budding.. 25,769.25 26,928.80 1.157.55 Keenan Buildin.. . . 10.202.40 10,688.64 6t3e.24 cancel the partial exemption of the Weatinnhouse Bldg. 10.320.38 11.844.80 1,524.22 Beisemer Building. 16.592.75 18,443.83 i.sij1.08 SkySCniperS and other large structures Fulton Building.. . . !20,?S8.44 23,033.02 2,746.58 Highland Building. 5.751.33 7,523.08 1,771.75 in that section, the home owner, though possessing a structure that seems insignificant by comparison with 1916 ou Plan 1816 the skyscraper, is apt to fhd the value Barnuel Rattner.. . . $85 80 $112 48 $26.68 of his building from two to five times 366.60 452.96 866::; greater than the value of the land upon 34.13 41.80 7.67 which it stands, and, of course, every ROS~ V. Kraeling. . 346.13 440.80 84.67 property owner whose building value William~. Rodgera 51.61 73.72 19.11 exceeds his land value on the assess66.31 95.00 ii:;: ment books is paying lower taxes Naa Total TarFkaf Old Tar Taz lBz6 Swing 164 RrsrDrNcre 16.d Name Total Taw Flat Taz Tar Saving 20 48 27.36 242.39 300.73 64.34 Anna B. Miller. . . . 54.22 76.46 22.24 Mary V. Lee.. . . . . Charlu Mnaur.. . . . 22.82 32.98

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733 NATIONAL MUNICIPAL REVIEW through the operation of the graded tax. Nor is it essential that his building value should exceed his land value. If the land value is equal to the building value, or even as much as 10 per cent greater than the building value, his taxes will be lower under the graded tax as long as the present ratio between the total assessed valuations of land and buildings is maintained, the total of laad valuations for 1925 exceeding the total of building valuations by more than a hundred million dollars. The city building tax rate is now 35 per cent lower by reason of the graded tax than it would be under the old system and this has made a substantial merence in the tax bill of the average home owner, who is more concerned with building taxes than he is with the taxes on land. Our survey develops the fact that it is ody the exceptional business structure in the downtown district that has a value su5cient to offset the high land value and thus show a saving through the graded tax. A study of approximately 1,200 property assesments in the “Golden Triangle” (comprised of parts of the 1st and 2d wards), shows that only 8 per cent, or about one out of twelve, pay lower taxes by reason of the graded tax. Since high land values are always to be found in the heart of the business district of a city, it is obvious that, under either the old or the new system, the downtown wards must pay the greater share of real estate taxes, but the higher the land tax, the greater is the proportion paid by the downtown section. PRESENT STANDING OF THE PUN The expediency of the graded tax plan lies in the fact that it means tax relief for the majority of taxpayers and that it encourages the improvement of real estate, thus stimulating the development of the community. The justice of the graded tax plan rests upon the fact that land values are socially created, growing with the growth of population and the extension of public improvements, and are, therefore, in‘a peculiar sense, a natural and logical source of public revenue. Naturally, the graded tax has not been Without opposition. It has been fought by those largely interested in unimproved land, as well as by some who are opposed to the plan in principle. Its repeal has been attempted on several occasions, but its friends have rallied on each occasion and frustrated these efforts. It has been defended by the leading civic organizations and the daily press is practically unanimous in declaring for the maintenance of the law upon the statutes. The present city administration, which is friendly to the graded tax idea, is not proposing at this time any further extension of it beyond the limits of the present act, but takes the attitude that now that the law has become fully effective, the plan should be given a period of five or ten years in which to fully demonstrate its value. When the taxpayers generally awaken to the realization bat the repeal of the law would mean a substantial increase in taxes for the great majority of real estate owners, they are sure to present effective resistance against any future efforts to upset the system. As the graded tax grows in public favor, it seems unlikely that there will be any backward step, and there are even now indications that, within a few years, steps may be taken by interested citizens to extend the partial exemption of improvements beyond the present point through new legislation. Whether or not this will actually be brought about is, of course, largely a question of the development of public opinion as to the advantages of the improvement exemption idea.

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THE INFLUENCE OF CIVIC ORGANIZATIONS ON GOVERNMENT BY S. GALE LOWRIE Unwcrdy of Cincinnati Professor Lour& disnwsRp civic organizations and agencies, their general character, and their relation to gopernmental wk. :: OUR government by its very nature finds a large place for associations of citizens with no direct control over its machinery, but with, nevertheless, a most powerful influence over its operation. With us, it has been found particularly desirable for those with common views on public affairs and like purposes to band themselves together for advancing their projects. Particularly is this noticeable since the adoption of the equal suffrage amendment to the Constitution. It is not easy to weigh the immediate results of the extended franchise. But whatever the first fruits of the amendment may be, there is most enheartening evidence of progress in an awakened interest in civic affairs and a determination to become more familiar with the functions of the state. Citizenship courses are being organized, study classes enrolled, and inquiries directed as to the actual conduct of public affairs, which argue for greater enlightenment and a more intelligent participation in the privileges of citizenship. But the civic associations being formed are not restricted to purposes of self-enlightenment. They propose to be doers, as well as learners. The growth in the number and scope of the organizations seems to make timely an analysis of the place of such bodies and their influence upon our political institutions. Their effectiveness in advancing the causes they espouse is conditioned in large measure upon their ability to establish the type of machinery calculated to accomplish the work they have at heart. LACK OF OFFICIAL LEADERSHIP The first cause for the important r81e which our unofficial organizations play in the conduct of public affairs is the lack of leadership so often noticeable among our public officials themselves. This is due partly to our political institutions, and partly to the character of our officials. ‘As students of American history well know, the experiences of our colonial fathers under monarchial institutions of Europe and the frequent clashes with the feeling of independence bred on the frontier, led to an antip athy to centralized officialism. This was nourished by a study of the political philosophy of the timethat d Montesquieu, Rousseau, and Locke. They believed in individualism and that the power of government should form through natural and mutually independent divisions-the executive, the legislative, and the judicial. This was perhaps the most important of a series of checks and balances which the federal constitution imposed. As Bryce points out, this division of authority was not intended to encourage an expression of public opinion so much as to thwart it-“to force the current of the popular will into many small channels instead of permitting it to rush down one broad bed.” It resulted in separate organs each “too small to form opinion, too narrow to express it, too weak to 753

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734 NATIONAL fi1UNICIPAL REVIEW [December give effect to it,” and “tended to exalt public opinion above the regular legally appointed organs of government! ” This situation has been further embarrassed by the character of our officials, who have, generally speaking, been chosen because of their neutral attitude on public questions rather than because of fitness for their public tasks. We have been swayed in the shaping of our institutions by the iduences of the rural districts. The country is the place of the “average man” where the work of everyday life can be done about as well by one person as by another. So special aptitude and training are discounted and by popular elections men are chosen to office. But in selecting candidates for a ticket, other criteria determine than mere fitness for the positions. The most able men in the community and those who articulate most distinctly a popular trend are passed over. In some other countries, one’s very position of leadership establishes his candidacy beyond question. He represents an opinion which he has helped to form and which he understands most thoroughly. But with us the fear of antagonizing those who re%ect opposite views makes us pause, and one is rather preferred who, though, if possible, well known and whose name has been often before the public, has identsed himself with no extreme faction and whose position on debatable questions is not too dehitely taken. If his candidacy does not rally the enthusiastic support of any group, at least little hostility is aroused; and the darts of a well organized party are usually sdcient to establish him in office. Thus it happens that our more able men and those whose minds have been applied most constantly to public questions often yield to less cap1 The Amcrican Commoncocolih, (New York. 1915.) Vol. 11, p. W1. able, but more ‘‘ available’’ candidates, and the more prominent men augment the ranks of the unofficial, rather than the o5cial forces of our society. But even this obstacle would not prove insurmountable were the o5cia1, once introduced to his task, allowed to acquaint himself with its problems and the best methods of solution. However, our short terms leave him scarce time to master the rudiments of his position before he must again appeal for the popular verdict upon his record. Thus it comes about that, while there are countries where leadership is accepted by public officials because there one may not be an official unless. he is a real leader, with us it is more frequently assumed by groups of private citizens. By long familiarity with these public matters, these latter have become the mentors of the community. We are, consequently, denied the constructive leadership which should be the fruits of any well officered government and are forced to rely on other guides to conduct us on our civic pilgrimage. LACK OF PUBLIC INTEREST But even in localities fsvored ;with the most thoughtfully framed charters and whose adairs are administered by thoroughly competent officials, the difficulties of keeping public &airs from being crowded out of the attention of the citizens seems no less serious. In some respects, the more perfect the functioning of government, the less the. people seem inclined to concern themselves about it. And so matters run along until an unfortunate hiatus has come between the officials and the public. The former tend to become bureaucratic and impatient of the ignorance and short-sightedness of the public. The latter, sensing the lack of responsiveness are easily led into disaffection and for reasons often little related to the major program of the ad

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19353 INFLUENCE OF CIVIC ORGANIZATIONS 735 ministration, stampede in a political turnover. This tendency is perhaps increased as the nonpartisan movement gains ground. Although it has many sins to answerfor, the political party has exerted an influence for political stability. Through party press and political henchmen it has defended the administration against the attacks of its enemies. Even the opposition has been useful. When it has been in the right, it has frequently called attention to mistakes before they developed to overwhelming magnitude and when it has been in the wrong it has allowed the administration to justify its course. In either event it has served to keep the adivities of .the govenunent in the public eye. The worst enemy of an administration is indifference. And since the law often permits and sometimes requires popular participation in the more important projects, lack of interest and appreciation, even when opposition is slight, is often fatal. As these lines are written, the newspaper headline announces: “Baseball Game Defeats Bond Issue” and the dispatch reports that in a certain city, interest in the championship game in a minor league so engrossed the attention of the people that too few voted to give the project the majority required by law. TYPES OF ClTLZEN ORGANIZATIONS There are several distinct types of citizen organizations acting as agencies for civic betterment. We have societies for the accomplishment of specific reforms, such as smoke abatement, better housing, supplying pure milk, or the establishment of civic service upon the merit system. There are associations interested generally in all that looks forward, such as city clubs, bureaus of municipal research, and improvement associations of various kinds. There are groups primarily for commercial purposes, but which see in a well governed community an asset of no mean value. Chambers of commerce, merchants associations, and real estate exchanges are of this character. These latter are taking an interest in public improvements because it is good business to do so. All of these types of organization are usually non-partisan in character and, because of the apparent disinterestedness of their motives, exert a more powerful influence than otherwise might attend their efforts. To this list should be added another agency, which is the advisory board. This is found more commonly in German cities than in our own. It consists of a selected group of townsmen interested in some civic enterprise to whom those in official charge may look for advice and support. This unofficial body has no legal control, but it exercises a real influence over public policies in its sphere and is a form of citizen endeavor which might, with profit, be employed more extensively in our own country. Civic organizations, whether for the accomplishment of a spec& reform, or for a more general program of betterment, are of two types. The one is militantly active in furthering its purpose. It aims a searchlight on specifk difficulties and, through the agency of an amused public opinion, seeks to accomplish definite improvements. The other is educational. It maintains an open forum for free discussion of public affairs and hopes through the difhuion of a wider knowledge to arouse citizens to a more active interest in civic matters. Each type has its place; but the machinery of each differs, and an attempt to employ a society organized on one plan for purposes for which it is not adapted may prove disastrous.

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736 NATIONAL MUNICPAL REVIEW [Decembei THE MILITANT GROUPS The more combative type of organization is usually a smaller group, whose members can be aggressive in promoting its aims. Care must be taken in selecting its membership that none be included who is not in sympathy with its purposes. An illustration of this need for prudence may be taken from an episode of a few years ago in a typical American city with a thoroughly organized political machine. There existed in this community a healthy group of neighborhood societies known as improvement associations. Their purpose was to rectify conditions in their neighborhoods and to secure needed betterments. Each society had its corps of officers, and selected delegates to a federated body which sought to co-operate with the constituent organizations in advancing their ends, as well as in furthering projects of citywide importance. But the independence and aggresiveness of these associations were not always pleasing to the political interests which dominated the affairs of the city. Criticism of the administration of public affairs was resented. Attention drawn to matters which might otherwise be overlooked was frequently embarrassing. A fight for control of the associations ensued, and, as they were captured one by one, the queries concerning public policies became fewer and less insistent. It is not diflicult to seize the reins of government of such bodies. These associations are not closed corporations. They welcome as members all who evince sufficient interest in community welfare to allow their names to be proposed and to subscribe to nominal dues. When the attention of the members wanes, a prearranged coup $&at can be staged, and a well organized minority may seize the helm. One after another of these associations was commanded in this way and delegates elected to thc federated society who were not onlj under the domination of the prevailing political party, but a majority of thf representatives were actually on thc public payroll. It is needless to adc that these societies have, since thi: time, remained quiescent. The importance of this principle i: well recognized by so active a fightin$ organization as the trade union. It i! one reason for its reluctance to join wit1 welfare associations or to become iden tsed with those whose only basis o affiliation is a professed interest in thc laborers. Its membership is limited tc workers whose economic status is on tha same basis as that of their associates They recognize that when one's treas sure is on one side of a controversy thc heart is likely to follow. But be the! never so guarded in their acceptance o members, now and again those will b( admitted whose purpose is not to fur ther their ends, but to thwart them Instances are related of those whc have joined the union and have becoml influencial leaders, all the while servini as the paid agents of an employers group-their real masters-and. re porting from time to time the actions plans, and purposes of their industria enemies.' A fighting organization must be corn posed of fearless men who realize tha opposition of political or commercia interests is liiely to mean personal at tack. It must refrain from alignmen with any political party even though i seems to have kindred interests; othei wise it will quickly lose the confidenc of the people in its disinterestedness it itself does not become biased. 1 must be organized for quick action an must possess means of publicity i order that its one weapon, pub1 1 Hearings before the Committee on Eduartic Pursual and Labor. U. S. Senate, July. 1921. to S. Res. 80. Washington [G. P. 0.1, 1921.

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19251 INFLUENCE OF CIVIC ORGANIZATIONS 737 opinion, may be quickly brought into PlayTHE OPEN-FORUM ORGANIZATIONS The open-forum type aims to secure as large a membership as possible in order to make its influence felt in many quarters. It need not scrutinize its membership so carefully, since militant action is not required of them. Its committees may investigate and study problems of government to secure a wider acquaintance with public questions. If its work is done wisely and well, it can hardly fail to result in the formation of separate bodies to go out from this parent group on special missions and assume aggressive attitudes. But the main function must remain primarily educational in character. Such a society is extremely vulnerable if it skirmishes with political or industrial organizations. The latter are certain, sooner or later, to defend themselves by attempting to control the society. Since membership is open to all, it is not difEcult to wreck the association by having those subservient to party dictates, or agents of special interests, join the club in sufficient numbers. While an openforum society may occasionally adopt martial tactics, a continuance of such a course is certain to result in reprisal. But even though associations of this character are not interfered with by outside influences, dzculties are quite sure to arise within their own memberships. In a society formed to effect a definite reform, differences of opinion may exist as to methods, disputes may arise over incidentals; but there is a strong bond of unity of purpose to control the helm and hold fairly steadily toward a recognized goal. The members of a club for general civic betterment will invariably find a divergence of opinion among themselves. If any active policy is decided upon, a minority will find themselves in the awkward position of seeming tacitly to support a position to which they may, in fact, be opposed. The result will be that they will either become lukewarm in their interest in the society or, wounded in pride because personal advice is not taken, fall back upon their inalienable right to resign with all the aang froid of a cook “chucking her job.” “Open-forum” clubs which become militant usually have most unstable membership lists. When their lines of activity please certain groups, recruits are secured who drop away when the course steered is less pleasing to them. After a large part of those in the community interested in civic affairs has passed through the mill, those remaining are usually too few in number to have any great influence toward civic reform. NEED FOR CIVIC ASSOCIATIONS AND AGENCIES It may be one of the disadvantages of a democratic society that there is no well defined group with a feeling of responsibility for the conduct of public affairs; that responsibility is so diffused as to make its recognition ponderous and dficult to arouse. If inconvenienced or disturbed because of the policies of our government, we know our misfortune is shared by others. We are prone to accept what fate has to decree with grim humor and turn our attention to private affairs. For this work of arousing a sense of responsibility for public acts, civic associations are needed. They must not only help to form an interested and enlightened public opinion, but must see that this opinion, when formed, finds expression in public acts. It often requires no little self-restraint. for associations organized to learn about public questions to refrain

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738 NATIONAL MUNICIPAL REVIEW [December from embarking upon crusades when the need for a campaign has suggested them. Study of the questions, or even the emotional appeal of an orator often stirs them. Are they to remain inactive in the face of glaring abuses? Will they be nothing but a debating club or a knitting.society? And so many a society formed in all sincerity for self-enlightenment loses sight of its purpose and yields to a demand for a quite distinct type of work. Many a conference for an honest exchange of opinion becomes a partisan organization aa its members strive for advantage in position and try to advane their views. There is need in the communities in which we live for active associations of citizens. These we must rely upon in large measure not only for the enlargement of the scope of our knowledge, and for popularizing what may be well known to specialists, but also for pressing to accomplishment programs of reform. But their success in the development of our political institutions will depend in large measure on their ability to shape their own organizations for the specific ends they have in mind. THE INDETERMINATE PERMIT FOR UTILITIES SERVING MUNICIPALITIES BY FURRY BARTH Uniwraity oj Okldomu Several stctles, darting wirh WGconsin in 1907, have adopted the indetmminatt? permit. The adoadages and didvantages of such a permit are set forth in Mia artkle. .. .. .. .. .. .. .. .. .. .. THE indeterminate permit, as a substitute for the usual franchise limiting the operation of a utility to a definite term of years, entered into the field of practical politics when Wisconsin in 1907 established this system as the law of the state. Since that time, it has been adopted by a considerable number of states in some form or other. The state of Indiana accepted it for all utilities in 1913. Ohio passed an act providing for indeterminate permits for street railway companies in 1913. California accepted the idea in what is hown there as the resettlement franchise act of 1917. This applied only to street railways. Arkansas accepted the principle for all public utilities by Act 571 of the general assembly of 1919. This was repealed, however, at the next session of the legislature. The state of Louisiana by Act 94 of the extra session of 1921 adopted an indeterminate permit law for cities having a population in excess of 1O0,OOO. Minnesota in 1915 accepted the principle for telephone companies only. In 1921 the system was extended to street railways. The indeterminate permit principle has also been accepted in isolated caxs throughout the country. It has often happened that a city has provided for the indeterminate permit in the absence of state legislation on the subject. An example of a city which provides for the indeterminate permit is Kansas City, Mo. In the charter, recently adopted, provision was made for this system.

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19951 THE INTERMEDIATE PERMIT 739 The public utility companies have been thoroughly converted to the system, and in many states they are distributing educational matter on the subject quite widely. The American Electrical Association received a report on the subject from a special committee delegated to study the matter at its convention in Atlantic City, N. J., October 1994. The report was distinctly favorable, and the Association formally approved the idea. The Investment Bankers’ Association of America bas also approved of the plan in principle. The National Association of Railway Utility Commissioners, at its convention in Detroit in 1999, formally endorsed the indeterminate permit. Due in large part to the effort of public utility concerns, determined efforts were made at the last session of the state legislatures to secure an extension of the system. Under pressure from the utilities, which frankly sponsored the idea, the state of Oklohoma accepted the indeterminate permit. Much printed matter was distributed, and a dehite campaign of education in the press was also undertaken. The law went into effect on June 96, 1935. In Illinois, likewise, pressure has been brought to secure its passage. In Kansas the indeterminate permit is being widely advocated. These examples are merely illustrative of a general movement to adopt the indeterminate permit principle. FEATURES AND BENEFIT8 OF INDmERMINATE FRANCHISE There is nothing obscure about the indeterminate permit idea. It simply adopts the view that a utility should be given the right to operate, as long as it gives adequate service at a reasonable rate. The utility is told to establish services without fear of having its right to use the streets and alleys denied it at some future interval. It is told, on the other hand, that in case it does not give reasonable services it will have its right to serve the city cut otl at any time. Many benefits are prophesied for the utility from the indeterminate permit. In the &st place, it is stated that amortization need not be extended over the length of the franchise, which is necessarily for an arbitrary number of years and bears no relation to the actual life of the property. If, for example, a utility secures a franchise for twenty-five years, prudent policy should dictate that the value of the prop erty must be taken out of the eamings before the expiration of the twenty-five years. Otherwise, the utility may hd itself with a distributing system on its hands but without power to sell its services, through the expiration of the franchise. This contingency would of course seldom arise. The usual experience, when a franchise expires, is for considerable bickering to take place, followed by the renewal of the franchise. The danger, however, always exists that the franchise may not be renewed, and it is wisdom therefore to guarantee the investment against loss by securing from current income enough additional income to cover the money invested. Where the property depreciates 100 per cent during the life of the franchise, rates need not be abnormally high to provide for the recoupment of the investor in case the franchise is not renewed. But this will not always be the case; in fact, it will seldom be the case. In the second place, it is stated that the utility is benefited by the fact that it does not have to enter into politics. Where a franchise is subjected to periodic elections to determine whether it may be renewed, the utility operating under the franchise must necessarily engage in local politics. It must estab

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740 NATIONAL MUMCIPAL REVIEW [Decembe lish connections with local bosses. It must engage in petty deals with ward politicians. It must subject itself to constant harassing. In the third place, it is stated that the indeterminate permit has the additional advantage of making possible lower interest rates for utility loans. Utility companies have not proved that the indeterminate permit, where it exists, actually produces a lower interest rate. They have shown no figures. However, from the viewpoint of theory, it should have that effect. Where no danger is run of failure to secure a franchise renewal, an investor will probably be willing to take a lower price for his money than where such danger is encountered. These, then, are the chief advantages claimed for the indeterminate permit from the viewpoint of a properly managed utility. Where a utility is dishonestly operated, the advantages are even greater. A utility may under certain conditions by means of the indeterminate permit escape regulation altogether. If the revoking process is difficult, it need no longer fear the wrath of the consumers in case of inadequate service. It runs no great risk of being deprived of its franchise. DANGERS AND ADVANTAGES TO CONSUMERS There are, of course, dangers inherent in the system from the viewpoint of the consumer. What will happen if the regulating body does not function properly or if revocation is difficult? The utility will then be in the position of having a permit to run indefinitely. It may fix rates at any point it pleases, and be grossly lax in regard to services. On the other hand, to the consumers, the indeterminate permit has certain advantages. With amortization adjusted to accord with depreciation, a substantial saving in rates may result. Lowered interest charges, theoreticallj at least, should also lower rates. Wit1 operating expenses cut, through thc savings in expenditures for politica influence, rates may also be lowered All this assumes, of course, that then will be savings, and that the saving: will actually accrue to the consume rather than the investor. Whethe such will be the result depends, o course, upon the honesty of the man agement and upon the effectivenes of the regulation to which the utilitj is subjected. Be this as it may, however, the sys tern of indeterminate permits contain possibilities of savings for operator investor and consumer. It probabl: is an institution, which, sooner o later, will become a fixture in publit utility management. Where a rea system of indeterminate permits i adopted with proper safeguards, then will be little grounds for objection. SOME COMPLICATING PROBLEMS What complicates the situation i that the indeterbinate permit is seldcm adopted alone. The issue is not clean cut. What usually happens is that bill is introduced uniting the indetei minate permit with the certi6cate a public necessity and the delegation a regulatory authority to a centra con trolling organization. This naturall< confuses the problem. Is the elimina tion of competition unquestionably good thing? The adoption of a schem of public necessity certificates make this assumption. There is reason fa questioning the institution in th electricity field, for example. There i some question as to whether it is wis to prevent competing companies fro1 stringing electric wires on poles an jointly serving the citizens. This especially true where there are sever8 groups of companies, each controllin water rights and each in a position t

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19353 THE INTERMEDIATE PERMlT 741 give service. There will be duplication of equipment, but after all this is not a very large item in an electric distributing system. A lower rate, resulting from the competition, may more than justify the duplication. This does not mean that the elimination of competition is necessarily bad. The only point, which is being made here, is that a law which combines both the indeterminate permit and the certificate of public necessity may be opposed, not because of the indeterminate principle, but because of the certificate of convenience. Where the indeterminate permit is combined with state regulation of a utility, what happens is that an old fight appears in a new form. In the case of Wisconsin, Indiana and Arkansas, the indeterminate permit is granted by the corporation commission, and the same organization is given power to revoke it. In the state of Oklahoma, the indeterminate permit is to be revoked, not by the city in which the permit has been granted, but by the state legislature. As a result, not the indeterminate permit principle, but state aa opposed to municipal regulation. becomes the storm center. This was especially true in Oklahoma. There was little objection voiced against the indeterminate permit idea. What was objected to was placing in the hands of the legislature the power to determine for four hundred cities when the utilities serving them were acting contrary to the general welfare and should as a result have their permits revoked. It seemed to most city o5cials that the indeterminate permit idea was being used to camodage an attempt to eliminate all regulation. It was felt that the question of control and the public utility problems were being thrown into the legislative pool, in which they would forever be submerged. It seemed that a legislative dog-fight was to be depended upon for utility control. EXPERIENCE OF WISCONSIN AND INDIANA CITIES An investigation as to the effects of the indeterminate permit law in Wisconsin and Indiana throws little light upon the indeterminate permit. In both these states, there was the same confusion of the indeterminate permit, of the certificate of public convenience, and of state control. A letter was sent to the city attorneys of the larger cities in both states, requesting opinion in regard to the merits of the indeterminate permit. Invariably the answers dealt, not with the indeterminate permit, but with the effectiveness of state as opposed to municipal regulation. The truth of the matter is probably that the indeterminate permit feature was considered only in so far as it deprived the cities of the last vestige of control over the utilities. Even with state regulation a vestige of municipal control exists if the city grants a shortterm franchise. With the extinction of this control through the indeterminate permit, the city has no weapon to compel adequate service whatsoever. The letters from the city attorneys indicate the degree to which state commissions have regulated utilities to the satisfaction of the municipal o5ciah. As a general rule, the Wisconsin cities were satisfied with commission regulation. Only one Wisconsin city gave a negative answer. A letter addressed to the city attorney of La Crosse brought the reply that, “it has been of doubtful value. The effect has been drawn-out litigation rather than effective results.” This, however, was the only unfavorable reply out of a dozen. The rest were generally of the tenor that, although state regulation was looked upon with suspicion in the beginning, the caliber of the Wisconsin

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743 NATIONAL MUNICIPAL REVIEW [December commissioners was such as to cause both rates and services to be adequately regulated, and probably better regulated than when each city tried to do the job individually. Judging by the replies, the indeterminate permit, the certificate of public convenience and state regulation are working acceptably in Wisconsin. The replies from.Indiana are tales of broken illusions, of deluded hopes. Few letters were received containing a good word for the Indiana commission. A reply from the city attorney of New Albany is typical. This follows: Answering your letter of March 19. I have to esy : 1. It is true our state has the remarkable thing known as an indeterminate permit for utilities. Or rather, an indeterminate permit has our state. My advice to your League is to “lay off” from that particular invention of the devil. . . . As won as adopted here, all utihtiessurrendered thkr franchisea. that is to say: they were enabled to get out from under all their contractual obligations under which they occupied the streets, alleys and public places of the city. They did not give up their occupations of the streets, etc.. but they very cleverly stepped out of the few things they had agreed to do, in order to get their franchise from New Albany. For instance, they’ had agreed to supply flee water to church organizations, and free water to the hospital. They stopped doing this very It is proper to say that in this state, cities have no charter but are absolutely creatures of the legislature. Your state, and your cities are young. and my advice is to get a charter for your cities or any other basic authority which will preserve home rule. 9. Our state commission does not protect OUT citizens in rights and service. The men composing the commission are all right, and honest. but they simply cannot discharge all the duties which they are called upon to perform; besides, in many cases, as soon as a man gets thoroughly acquainted with the duties of the public service commission, he resigns and is employed as an attorney for the amiated utilities. quickly. A reply from the city attorney of East Chicago also indicates the trend: My opinion is that the theory is all right, but that its practical operation in any particular state is a serious matter. One thing is evident, the interest of the city and the utilities are not just the same. and the utilities are always in favor of the public service commission. My opinion is, cities should not surrender their power over the streets and that the city should name the conditions under which utilities may occupy the streets. and that the utilities should not he given power to avoid their contracts except as to rates. The city attorney who wrote this states, however, that he sees within his own experience a change in the attitude of the commission more favorable to the consumers. The city attorney of Peru states: Our experience has heen that in some instanm the commission has served in a beneficial way to the citizens, but in most instances the utilities seem to have the strongest pull with the commission. The city attorney of Hammond states: I think all cities in Indiana are tired of the public service commission. We are for home rule. and we have made several attempts in the legislature to get .sway from the public service’ commission, but have always failed. The street car company, electric light companies and gas companies that have franchises with the city have all surrendered their franchises to the public service commission who fixes the rate and always fixes it high enough. and my advice to the Municipal League of Oklahoma would be to stay away from the public service commission as far as they can. The city attorney of Logansport states: Replying to your favor of the 10th instant, in relation to the indeterminate permit for utilities. the public utility commission law of our state forced upon us the indeterminate permit for utilities. This law was fostered and promoted by the public utilities. It does not inure to the benefit of the cities, towns or taxpayers. To make you a short reply, it has been our ex

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19251 THE INTERMEDIATE PEWT 743 perience that this is a good law for the utility, but a very poor law for all other parties concerned. This utility commission has given in OUT own town an indeterminate permit to the interurban and street car lines. We have had a great deal of difliculty with this feature of the proposition in the pavement of streets and the control of service in relation to these two particular lines. They have raised our telephone rates and in our privately omed public utilities of light and water, because our city light plant was making money out of which we were hoping to erect some buildings for the city, they cut our rates to such an extent that it will delay our plans, and the ideals we had hoped for cannot be reached. This is only another plan of depriving the people of the right of local self government. As city attorney, I find that this form of control tends to centralize the government of the state in the capital, offer jobs and appointments for lame ducks, and for lack of interest or finance the citizen and taxpayer usually gets the worst end of the bargain. Another city attorney states : It is a question whether the public service commission serves the public with the same fidelity that it serves the large utilities. The large utilities in thii state and other states have an organization, and they appropriate out of their net earnings of the various corporations a certain per cent which is used a3 propaganda, and this propaganda is used to maintain public sentiment in favor oC various bureaus and commiSSions, and particularly the public service commission. From this it might be argued with some degree of reason that the service corporations see in the public service commission some advantage or benefit to them which would not inure to them if they had to deal with the common council or other governing bodies of towns and cities, and had to dqKnd on their franchise rights and rights prescribed by the various statutes. There has been much political agitation in this State about doing away with so many bumus and commissions, and the public service commission has come in for its full share of criticism.. . . My own observation has been in matters which came before the public service commission in which our city was interested relative to electric light and power, gas and water and as good or better results could have been obtained without the aid or intervention of the public service commission. These letters indicate the general opinion of Indiana cities. They indicate that the city officials at least feel that the public service commission is less able to deal with municipal utilities than would be the cities themselves. They indicate a strong feeling for home rule. They indicate a belief that the utilities have managed to ingratiate themselves with the commissioners. They indicate a belief that a commissioner will be unquestionably swayed in his judgment by the fact that at the expiration of his term he may receive a good position with an increased salary with a utility. They indicate that the cities feel an inability to cope with the high powered attorneys who represent the corporations before the public service commission; These letters, of course, give no indication as to what the opinion on the indeterminate permit itself would be. Where a city has power to determine whether the permit may be revoked, the situation will be totally different. It is at least doubtful whether the utilities would be so strongly in favor of the system with municipal regulation. The chances are that it is not the indeterminate permit, but state regulation which is desired. It is interesting to note that the laws of Wisconsin, Indiana, Ohio, Oklahoma, Minnesota, and Arkansas either provide or provided for state control, with the indeterminate permit feature as secondary. ADEQUATE SAFEGUARDS NEEDED The indeterminate permit should be surrounded by adequate safeguards. Where municipal control is operating satisfactorily, it may well be adopted, but it should specifically provide for revocation by the city. In addition, the conditions under which it may be revoked should be thoroughly set down.

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744 NATIONAL MUNICIPAL REVIEW [December Otherwise, thanks to the 14th Amendment of the federal Constitution, it will unquestionably be the cause of litigation. Judicial squirmishness, where property rights are involved, is so intense that no danger should be run of discovering in the end that the utility has received not a revocable permit but a perpetual franchise. It should pmbably be laid down in the permit that the utility may be ejected from the city within a stipulated period, if the citizens at a general election have so determined. It should be provided that the citizens shall be the sole judge as to whether service has been adequate and rates fair. In order not to be unfair to the utility, an ahtive vote of 60 per cent of the citizens should be necessary for ejection. Probably, also the concern should be given five years to wind up its affairs. Where local regulation has failed, and state regulation is looked upon as desirable, the indeterminate permit may be adopted also. It should not be assumed, however, that because municipal regulation has proved unsatisfactory, it should be abandoned. The mere failure of municipal control is not in itself a guarantee of state success. It should not be forgotten that there are grave doubts as to the ability of a public service commission, sitting at the state capitol, however honest it may be, to regulate the rates in a number of growing cities. The administrative problem is almost Herculean. The desirability of overloading our central administrative systems is questionable. The ability of men to bear the burden which centralization throws upon them is extremely doubtful. Should the indeterminate permit be accepted where the state is the regulating body, the authority to revoke the permit should assuredly be vested in the public service commission. The Oklahoma plan of permitting the legislature to be the judge is vicious. The legislature is totally unfit to act in this capacity. It is already overburdened. An individual legislator already has more problems to think about than he can possibly handle. The many intricate questions involved in regulating utilities require expert judgment rather than the opinion of amateurs. In addition, the Oklahoma legislature is limited in its sessions to around seventy days out of every two years. It is difficult to understand how such a body can successfully determine whether utilities in several hundred cities are acting satisfactorily. Where the public service commission has power to control utilities, it should certainly be given complete power to fix both rates and services. It may seem strange that a public service commission can be created without adequate powers of this character, and yet such is the case. The sine qua m of state regulation is a regulatory body of adequate powers. In addition, the commission should be granted ample appropriations. The intricate task of controlling fifty or sixty utility companies cannot be done with insacient funds. Yet there are few commissions, at least in the Middle West, which are not hampered through lack of money. This is parsimony rather than economy. Our state regulating commissions are in a position to perform possibly the most valuable service which states render, but they cannot be successful if they are handicapped through lack of finances. The state of Oklahoma has an institution which is proving valuable. This is a special counsel to represent the cities before the corporation commission. A well qualified attorney now represents the cities before this organization. He is paid out of state funds, and performs a valuable function. The only defect of the scheme is that

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192.51 MUNICIPAL ADMINISTRATION 745 the agency is not sufficiently well provided for financially. In some months the counsel has the impossible task of preparing a brief a day. He has been in court for two weeks at a stretch. No lawyer should be compelled to work under such difEcultiea. With increased appropriations for this department and with increased powers for the corporation commission, state regulation in Oklahoma would have a real opportunity to prove its merits. As it is the cities cannot provide counsel equal in training and experience to the counsel of the utilities. Usually the counsel provided performs a labor of love as it is underpaid. It is only seldom that it can devote full time to cases before the commission. A better equipped counsel for cities in the corporation commission would tend to eliminate dissatisfaction. Another prerequisite of a satisfactory indeterminate permit system would be definite specifications in regard to the revocation of permits. In at least one state, Oklahoma, it is provided that the permit may not be revoked unless no injury is done to the owners of the utility and unless the citizens of the entire state are being harmed by a continuance of the permit. QuaMcations such as these may be interpreted by the courts so as to make revocation impossible. At best, vague limitations of this character can lead only to endless litigation and strife with accompanying increase in the work of the courts and decrease in popular regard for the institutions of government. It is diEcult to see how the indeterminate permit can be revoked without endless conflict over the clause forbidding impairment of obligations and the due process bug-a-boo. One excellent feature of almost all the laws is provision for municipal purchase. This is a blanket safeguard against the worst abuses. If conditions become unbearable, the city as a last resort can buy the utility and operate it. This would involve embarcation upon municipal ownership, which is at best hazardous. Still it is a last bulwark, and should never be omitted from an indeterminate permit law. MUNICIPAL ADMINISTRATION AND FEDERAL HEALTH ACTIVITIES BY JAMES A. TOBEY Znafifute for GoDansrJ Ruearch, Wwhington The federal gorrmment approptiales annually s;zty-$ue miuion dol.. .. .. .. .. .. .. .. .. lam for health and medical relief. :: .. WEEN a city official wishes to secure authoritative information on the various phases of public health he may get it from many different federal bureaus. If, for instance, he wishes data or assistance on school hygiene, the division of school hygiene of the bureau of education in the interior department, or the public health service in the treasury department can give it to him, while the bureau of home economics in the department of agriculture issues an excellent pamphlet on school lunches. If information on child hygiene is desired, the city official may get statistics from the division of vital statistics of

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746 NATIONAL MUNICIPAL REVIEW [Decembei the census bureau in the department of commerce, statistics and advice from the children’s bureau in the department of labor, still further material from the public health service, an outline for study on this topic from the federal board for vocational education, and information on foods and child feeding from the department of agriculture. There are also one or two other sources of federal help on this subject. Similar examples could be given for many other branches of public health. Rural hygiene, sanitary engineering, nutrition, industrial hygiene, and various other topics are investigated, and in a few instances, regulated by different bureaus of the federal government. In fact, there are at least thirty separate bureaus or other branches of the national government which are interested, directly or indirectly, in some phase of the public health, though, of course, with only about one-third of this number is public health the major and primary duty of the bureau. No wonder that the municipal official is sometimes a trifle perplexed as to where to turn for advice, data, standards, or laws. If he goes to Washington to confer, he must wander all over that city in order to locate the diffused offices from which public health is dispensed. Although so many disconnected bureaus of our government, scattered through the ten executive departments and the several independent establishments, are concerned with public health, duplication of effort is not as great as might be expected. The field is so broad and there is so much to be done, usually with limited funds, that actual overlapping is not prevalent, though there is considerable duplication of functions. Sanitarians, experts in political science, and state and municipal officials are agreed, however, that the now diversified health activities of the federal service should be effectively co-ordinated and, to a considerable extent, centralized. Such a step need not involve any expansion of existing work, nor necessarily the creation of a new department of health with a secretary, but merely a better re-allocation of the bureaus actually engaged in health duties, with a single executive, at least an assistant secretary, in charge. RESPONSIBILITY PRIMARILY THE STATES’ Under the American plan of government, the care of the public health is primarily a state responsibility. It forms a part of the police power, which was enjoyed by the states before the federal constitution was adopted, retained by them afterwards, and, in fact, specifkally reserved to them by the tenth amendment. The actual administration of the police power has been delegated in a large measure to local governments, as the agents of the state, a principle which is sound and has often been upheld by the courts. The federal government does, however, have certain legitimate public health functions. These include the prevention of the entry of disease from without, that is, foreign quarantine; the prevention of the interstate spread of disease; research into public health problems; and popular health instruction. The treaty making power and the authority to impose taxes may aha involve public health matters, and taxation is often used for regulatory as well as revenue raising purposes, The federal government may also be a central source of advice and information on health matters and may assist states or municipalities when invited to do so. It has frequently given such co-operative service on request.

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19%] MUNICIPAL ADMINISTRATION 747 THE FEDERAL AGENCIES The chief federal health agency is the public health service. Up to 1912 this bureau bore the title of marine hospital service. It was dekitely organized in 1870, though medical relief to seamen and others had been given by the service sigce 1798, when congress passed a law authorizing collectors of customs to collect twenty cents a month for each seaman of the American merchant marine in order to provide necessary medical aid. This service came under the treasury department and so, for historical reasons only, the public health service is to-day in that department. The scope and duties of the service have been expanded from time to time until to-day it receives about nine million dollars annually, has a personnel of over 4,000, and is organized into eight divisions, including (1) scientific research, (3) domestic quarantine, (3) foreign and insular quarantine and immigration, (4) sanitary reports and statistics, (5) marine hospitals and relief, (6) venereal diseases, (7) personnel and accounts, and (8) general inspection service. The children’s bureau in the department of labor is another important federal health agency. It was created in 1912 to investigate and report on all matters affecting child welfare, especially infant mortality, the birth rate, orphanage, juvenile courts, desertion, dangerous occupations, accidents and diseases of children, and employment. It administered the first federal child labor act, which was declared unconstitutional in 1918, and in 1921 was charged with the administration of the federal maternity and infancy act, by which federal subsidies are granted to the states. This bureau has a personnel of about 160 and is organized into divisions of: maternity and infancy, child hygiene, industrial, social service, statistics, and editorial. For 1935 it received $1,334,012, of which $1,007,092 was for maternity and infancy, to be spent by the states. The department of agriculture has a number of bureaus interested in public health. The bureau of chemistry, with an annual appropriation of well over a million dollars, does the analytical work under the pure food and drugs act of 1906, while the bureau of animal industry receives about four millions for the inspection of meat intended for shipment in interstate commerce. This bureau also attempts to eradicate tuberculosis in animals and does other work affecting human health. The bureau of home economics studies human nutrition, receiving annually over $100,000 for this and other home economics investigations. There is in the department a bureau of dairying, and the bureaus of entomology, public roads, agricultural economics, and the extension service all have some kind of a health interest. The latter service has over 900 home demonstration agents who do much health work in rural counties. The departments of interior and commerce likewise are concerned with national vitality. The office of Indian affairs in the former department has a medical division, and the bureau of education maintains a division of school hygiene and also looks after the health of the natives of Alaska. The bureau of mines is charged with investigations of improved methods of mining, particularly from the standpoint of health and safety. In commerce we find vital statistics collected by a division of the bureau of the census. REORGANIZATION NEEDED There are still other bureaus and independent establishments which might

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748 NATIONAL MUNICIPAL REVIEW be mentioned, but enough have been cited to indicate the dispersion of health functions in Washington. These various bureaus have gradually evolved over a long period of time. In fact, all the executive departments represent a hodge-podge of administrative duties. Every president from Roosevelt to Coolidge has recommended that they be reorganized, and attempts have been made from time to time to do so, but congress has not yet seen fit to pass the legislation needed. A new department of health has been advocated on a number of occasions and a serious, but unsuccessful attempt was made to secure such a department in 1910 and 1912, the movement having the indorsement of President Taft. More than fifteen million dollars is appropriated annually to the various public health agencies of the government, and another fifty million goes for medical relief. A centralization of the health functions would not only conduce to efficient operation, but undoubtedly could demonstrate an actual saving, thus satisfying those who are desirous of economy in government. Municipal and state officials and the public generally would be better off if they could deal directly with a central federal health authority. Pamphlets, of course, may now all be purchased from the superintendent of documents, but the various bulletins desired can be obtained free only by applying to many bureaus. Printed matter is not, however, the only basis for contact. A certain amount of advice and counsel and even of leadership is essential. Since we have 48 state sovereignties, the federal government, as a unit, must supply such scientsc guidance as is desired by the states. A study of all the federal health agencies is now under way under the auspices of the Institute for Government Research. Following this first step of assembling all the facts, the second will be to suggest a practical plan for co-ordination, and the thud to induce congress to adopt it. When the second and third stages are reached, the advice and support. of municipal officials will be needed and will be of great value. Correlation of federal health work means the enhancement of national vitality and that means not only health and happiness, but national progress and a contribution to the advancement of American civilization.

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CHIEF ELEMENTS OF CONTROVERSY IN PUBLIC UTILITY RATE MAKING N. REPRODUCTION COST AND CHANGING PRICE LEVEL BY JOHN BAUER Public Utility Consultant. Ntm York City “The only rational courae h to base ratcs dejinitely upon actual cost and placs rate making upon an ezact and scientific foundation.” .. -. h the preceding articles I discussed depreciation as an element of controversy in public utility rate making. The position taken was that depreciation represents costs of property chargeable to service, and that the whole matter is a question of cost apportionment. So far as the investment is concerned, under proper accounting the original cost of all units of plant and equipment used in operation is shown in the property accounts, the part of such original cost which properly belongs to past operation is stated in the depreciation reserve. The difference between such original cost and the depreciation reserve, is the cost that belongs to future operation and is the net monetary investment in the property. If these facts are not shown properly by the accounts, they may be established by appraisal. If the principle were definitely established in law that reasonable rates should be based consistently throughout upon the cost of service, then the net investment as reflected by the original cost of the properties less depreciation, would be the proper basis for rates. As to operating expenses and taxes, the actual reasonable cost has become accepted for rate making, but the return on the properties has not been placed upon a defhite cost basis. We have here the element of present controversy which has caused the great bulk of rate litigation and the deadlock in regulation. BMYTIX V. AMES “FORAITJIA” The difficulty is that the so-called rate base on which the owners of a utility are entitled to a return, was never exactly defined either by the legislative bodies providing for regulation or by the courts which have passed upon questioned validity of rates. Nearly thirty years ago the Supreme Court of the United States laid down a general rule for determining the necessary return on the properties. In the famous case of Smyth v. Ama, the Court held that a company is entitled to a fair return on the value of its properties, and in determining such value consideration must be given to . . . the original cost of construction, the amount expended in permanent improvements. the amount and market value of its bonds and stock, the present as compared with the original cost of construction, the probable earning capacity of the company under particular rates prescribed by statute. and the sum required to pay operating expenses . . . and are to be given such weight as may be just and right in each case. We do not say that there may not be other matters to be regarded in estimating the value of the property. What the company is entitled to ask is a fair return on the value of that which it employs for the public convenience. On the other hand, what the public is entitled to demand is that no more be ended from it for the use of 719

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NATIONA4L MUNICIPAL REVIEW [December 8 public highway than the services rendered by it are reasonably worth. At that time this statement was reasonably adequate. The decision was made in 1898, when there was no particular issue between original cost of the properties and reproduction cost. With the exception of land, for the following ten years, or even up to the World War, the reproduction cost of utility properties wm probably no greater in most instances than the original cost. Consequently, during that entire period, when the courts spoke of reproduction cost they had in mind no issue perceived as materially affected in contrast to actual cost of the properties. “Fair value” could be assumed to be determined equally well by reproduction cost or actual cost. But the actual-cost figures, prior to the more recent commission control, were seldom available; hence reproduction cost was a common method of valuation, without any thought of conflict with actual cost. “FORMULA” BECOMES INADEQUATE But this situation changed suddenly after 1914, with the sharp increases in prices and the much greater cost of all classes of construction. Then a great difference burst forth between reproduction cost and original cost, and the issue stood clearly drawn before the commissions and courts. The old statement of Smyth v. Am, which had done service for fifteen years, became inadequate under the new conditions when there were great differences in the elements mentioned. Previously “fair value” might be determined by either original cost or reproduction cost, if the amounts were properly ascertained, without affecting seriously the relative rights of the investors and the public. But afterwards it became important which method was used. The time had come when the loose statement was no longer workable, and when an exact definition or formula was necessary. But the old phrases had done service so long, and the elements of “fair value” detailed in Smyth v. Am, had been cited so often, that they could not readily be abandoned. Consequently we still have the same so-called “formula”, and are struggling with the uncertainty as to what it means. Each side in every case is practically free to make its own interpretation. We have an era of litigation instead of regulation. ATTITUDE IN RECENT DECISIONS Perhaps the situation is not quite so chaotic as the above description seems to imply. The Supreme Court has after all given some intimation of what it would deem “fair value” under present conditions and has indicated some reasonable limits to the claims madeby interested litigants. On theone extreme it has recently declared flatly that a company is not entitled to a return on the reproduction cost. In the Georgia Railway and Power Company case, -Judge Brandeis, speaking for the majority, stated that the refusal of the commission and of the lower court to hold that, for rate making purposes, the physical properties of a utility must be valued at replacement cost, less depreciation. was clearly correct (26% U. s. 635, 632). In this case the valuation fixed by the Railroad Commission of Georgia was based predominantly upon actual cost, or pre-war costs, except that $125,000 was allowed as appreciation of land. The total valuation approved was $5,450,000 compared with $9,500,000 claimed by the company on the basis of reproduction cost less depreciation. In sustaining the commission’s appraisal, Judge Brandeis said :

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19251 CONTROVERSY IN PUBLIC UTILITY RATE MAKING 751 Here the commission gave careful consideration to the cost of reproduction, but it refused to adopt reproduction mst as the measure of value. From this case it can be strongly argued that as an ultimate test of mn&cation, the Supreme Court will give preponderant consideration to actual cost, less depreciation; ie., judging the fairness of the return. on net investment in useful property. Moreover, a survey of all the rate cases passed upon by the Supreme Court does not reveal a single instance of rates declared confiscatory where they brought as much as 6 per cent or 7 per cent return on investment, but failed to bring such a return on reproduction cost less depreciation (or with a substantial allowance for reproduction cost) .l In spite of the decisions thus stated, it cannot be conclusively asserted that actual cost would be sustained if the rates brought a return of 6 per cent or 7 per cent on net investment. Even in the Georgia Railway and Power case, Judge Brandeis called attention to the fact that the commission had given consideration to reproduction cost and had allowed $125,000 as increment in land value. In two other cases, however, one decided on the same date with the Georgia Railway and Power case2 and the other three months earlier,3 the Court did emphasize the necessity of giving weight to reproduction cost, although in those cases the rates were inadequate even on the basis of actual cost.' In a case where See analysis of cases by Judge Brandeis in minority opinion Southwestern Bell Telephone case (262 V. S. 276). * Bluefield Water Works and Improvement Co. U. Public Service Commission of West Virginia, 262 U. S. 679. Southwestern Bell Tel. Co. t. Public Service Commission of Missouri, 262 V. S. 276. 'See minority opinion by Judge Brandeis in Southwestern Bell case and his statement in Bluefield Water Works case. the point is clearly the determining issue, the Court may refuse to uphold rates where no weight was given to reproduction cost but where an otherwise adequate return was realized on actual cost less depreciation. CLhRIFICATION NEEDED The situation is thus fraught with confusion. The issue is clear, but there has been no definite decision because the matter has not appeared before the Court in a sufficiently specific manner to require decision. In the public interest, it is highly essential that two things be done: (1) that cases with the facts and principles properly presented shall be brought to the Court for decision in such a way that the ultimate issue cannot be avoided, and (2) proceeding with constructive legislative action to place rate regulation on a.deihite and workable basis. There is no doubt that from a broad public standpoint, which includes not only the interest of municipalities and consumers, but in the long run also the investors in public utility securities, the desirable and necessary basis of rates is actual cost of the properties less depreciation; actual investment made for the public service. The outright acceptance of this fact would put rate making systematically upon a cost basis throughout, and the facts could be kept under definite accounting control. In the case of any one company, only a single appraisal would be necessary to fix the amount of the investment; then subsequently all additions and retirements of property would be shown by the accounts as definite facts beyond dispute. Rates would then be on a scientific basis, and could be raised or lowered without litigation. The rights of the investors and the public would be exactly defined and accurately shown. There would be an

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753 NATIONAL MUNICIPAL REVIEW [December end to the constant litigation with which rate making has been involved, which has been extremely costly, has produced serious irritation between public authorities and the companies, and has not produced satisfactory regulation for the public or investors. A definite basis of rates is a prerequisite to effective regulation. No body is benefited by indefinite principles and indeterminable facts. UNDISPUTED RATE BASE ESSENTIAL The whole matter rests upon the question of actual cost versus reproduction cost a the recognized rate base. If actual cost is accepted we are then in a position to deal with exact facts scientscally determined. The fundamental objection to reproduction cost is that it does not represent a definite quantity based upon actual facts and capable of constant and exact determination. The result is that there is no positive basis to show at any time whether rates are reasonable or not. With every attempted rate adjustment, a new valuation is required or at least sharp differences of opinion immediately appear as to the rate base. It is now fairly common knowledge that prices are constantly changing and do not maintain a fixed level for any long period of time. Consider the changes since the Civil War: first a long steadily declining curve down to 1897; then a rising curve till 1914; followed by upward soaring prices during and after the war till 1920; a sharp decline till 1921; an oscillating curve since 1941 ranging near 50 per cent above the 1913 average. But even during the past two years of comparatively stable prices, the range from the lowest to the highest is 47 per cent to 61 per cent above the 1913 average. To-day prices are approximately 230 as compared with the low point of 1897. What is to be expected for the future? We certainly have little reason to look for any greater stability in prices than we have had in the past. There will be downward and upward swings, with minor oscillations, and these constant changes make reproduction cost an unworkable basis for satisfactory rate control. It would involve repeated valuations with constant guessing and uncertainties. It would promote deadlock in regulation. SPECULATIVE ELEMENT IN UTILITIES There is, however, also another serious objection to reproduction cost from a broad public standpoint, including investors as weU as consumers; it would preserve and accentuate the speculative element in public utility finance. Consider that on the average about 75 per cent of the actual investments in public utility properties has been made through bond and preferred stock issues and only about 25 per cent through common stock. If this fact is kept in mind, also that bondholders and preferred stockholders are limited to a Gxed return on their actual investment, does-it not follow that during rising prices reproduction cost would bring to the common stock increasing returns far out of proportions to the increase in price level, and would stimulate speculation in the stock? Likewise, during long or sharply falling prices, reproduction cost would bring financial pressure upon the company because of fixed interest charges, and ultimately would not only take away all return from the common stock but would bring insolvency to the company. It simply would not prevail against long falling prices, like those following the Civil War, without producing financial chaos in the industry and greatly impairing service for the public.

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19251 COMPARATIVE TAX RATES OF 215 CITIES 753 AN ADJUSTMENT THAT DOES NOT ADJUST Reproduction cost is urged as a method of adjusting the return to the investors according to the shifting purchasing power of money during rising or falling prices. But, as a matter of fact, does it achieve. any such result, which, if it could be satisfactorily attained, would be highly desirable? First, is it not clear that the bond holders and preferred stock holders, the bulkof the investors, would be excluded from any such adjustments? As already indicated, during rising prices they would be held to their fixed monetary return, and during falling prices even their limited payment might be endangered. But, secondly, even the common stock would get no such direct adjustment as is inferred by the supporters of reproduction cost. During rising prices, the additional money returns would be all out of proportion to the decrease in the purchasing power of money, because the common stock holders would get the total benefit of the higher valuations allowed not only on their own investment but also on that of the bond holders and preferred stock. But during falling prices they would pay the full penalty for their undue advantage during rising prices; their return would decline in much greater proportion than the fall in prices, and might disappear altogether, with insolvency besides. This is an extremely critical issue that is not squarely faced by the supporters of reproduction cost. What would happen to common stock if we were to experience a long period of falling prices of 50 per cent during the next thirty years, as occurred after the Civil War? CONCLUSION The only rational course is to base rates definitely upon actual cost and place rate making upon an exact and scientSc foundation. This will require not only a proper presentation of the cases to the courts for consideration of the broad issues, but also legislative action to establish definite policies and methods for rate making. Otherwise, floundering and confusion will continue indefinitely. A more comprehensive discussion and presentation of a systematic plan, including an adjustment for the existing investment of the common stockholders, has been set forth by the writer in “Effective Regulation of Public Utilities,” Macmillan, July, 1995. THE COMPARATIVE TAX RATES OF 215 CITIES, 1925 BY C. E. RIGHTOR Detroir Bureau oj’ Qwmmenlal Remarch, Inc. The REVIEW again pUbliahR1 the cornparalive tax rh of munin’.. .. .. .. .. .. .. .. .. palities. Rqminh are available. .. What is the tax rate of your city, industries and business, to homeowners and public officials everywhere. On every hand we hear of citizen groups and official committees who are studying the problem of taxation, to learn whether taxes may be reducedand how. and how does it compare with that of other cities? These and other questions pertaining to the taxes on property are pertinent today, and are of growing interest to

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754 NATIONAL MUNICIPAL REVIEW [December To make available a current statement of the tax rates and the actual tax burden in cities having over 30,000 population, the Detroit Bureau of Governmental Research has compiled the accompanying tabulation, showing the actual tax rates for 1995, by purposes; the adjusted total tax rates upon a basis of a uniform assessed valuation of 100 per cent; and the tax burden in each city as estimated when consideration is given to the practical application of true value in assessing. 1945 POPULATION LISTED The cities are listed in the five census groups in order of population according to the estimates of the Census Bureau for July 1, 1925, except in a few instances where no official estimate was made; in these latter cases, the 1920 census was used unless a local estimate was furnished. For cities in Florida, Iowa, Kansas, Massachusetts, New York and Rhode Island, state census figures were used where available and adopted by the Census Bureau. It is obvious that the 1920 census figures result in placing such cities unduly low in the list, but as per capita figures are not used in the tax rate tables, such listing does no great harm. PROPERTY TAXES ONLY The tabulation is confined solely to tax rates on property, both real and personal. It serves as a gauge to the contribution to the local units of government from this source, but no indication is given of possible other sources of revenue toward the total operating budgets of the subdivisions. It is known, for example, that some cities receive a portion of a state income tax in lieu of a tax on personal property. The relative proportions of real and personal property are set forth, but that is all it is possible to do in this tabulation. The tabulation is simplied from that of previous years, the rates being listed only for the four main political subdivisions-city, school, county and state,-the levy for debt being included this year usually with the unit which issued the obligation. Further, the ranking of the cities according to the amount of readjusted tax rate is omitted, as injustice is done to some cities by such ranking owing to the difficulty of obtaining a satisfactory estimate of the practice of assessing as to full value. The total tax rate column should indicate, for any city, the aggregate amount of taxes per $1000 of assessed value paid for all purposes by the taxpayer. Owing to the varying legal bases of assessment in several states, however, this total does not afford an accurate basis for comparison of actual tax levy. To make possible such comparison between cities, the total rates have been adjusted to a uniform 100 per cent basis of assessment, as shown in the column “adjusted tax rate.” A range in the total rates is thus disclosed of from $63.85 per $1000 for Fresno to $16.50 for Winston-Salem, omitting Wmhington with a $14 rate. For Canadian cities, the range is from $46 for Edmonton to $42.80 for Winnipeg. The average for all cities is $31.85. TAX RATE VERSUS ThX BURDEN It is not to be assumed, however, that the present day basis of property taxation is at such high figure when the real value of the property is considered. It is recognized generally that all taxable property in our cities is not usually assessed at full value, as the assessing officials cannot keep pace with increasing values. The real tax burden in such event is lower than the actual rate, in proportion as the valuation is low. When attempt is made to determine

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19251 COMPARATIVE TAX RATES OF 215 CITIES 755 the actual burden, therefore, through further adjustment of the uniform rate according to the practically applied basis of assessment in each city, the average burden is found to be considerably reduced from the average rate. Using the best information available for all cities, the burden in 1925 was found to be $24.15 per $100 of full value,-or less than 2.5 per cent. This burden is shown in the column “readjusted tax rate,” Pueblo having the highest rate, $48.74, and Little Rock the lowest, $10.32. Of the Canadian cities, Edmonton remains high, with a rate of $36.80, and Ottawa is low, with $21.13. It is interesting to note, in passing, that the cities in the lower census groups show a higher average tax burden than those having a population of 100,000 and over. Milwaukee seems to be a good example of a city placing the average tax burden upon its citizens. It is believed that the average of $24.15, or approximately 2.5 per cent, is of much signscance ‘when consideration is given to the possibility of tax reduction. Can we eicpect our cities to continue their multiplicity of services (Detroit records show over 200 activities in 1925) at a smaller figure? Will it, rather, tend to increase; particularly for education? It seems probable, in the light of so many popular demands for more and better public services, that the downward trend in the cost of our federal government cannot be applied consistently and successfully to our local governments. THE TREND OF TAXES The figures for a single year do not permit of comparisons to determine the trend of the property tax in cities. Detailed analysis was made, however, for the years 1923 and 19% of the rates in 53 cities over 100,OOO population reporting each year. Of the 53 cities, 6 reported no change in rates in the three years. Of the remaining 47 cities, 27 reported an increase totaling $61.94 per.$lOOO, and 20 reported a decrease totaling $512.67. The net increase, therefore, in seven cities was $9.27. For all the cities included, the net increase in the tax rate in the two-year period was 16) cents per $1000. This appears to be a very low rate of increase, considering the many elements which may affect a tax rate. A careful analysis of 200 cities for which complete data are available shows that the tax dollar is distributed, as was suggested last year, very nearly 40 cents to the city, SO cents to schools, 20 cents to the county, and 10 cents to the state. A concluding observation might be made relative to the availability of fbancial information for citizens and others. Generally, the tax rates and similar information are available, but in some instances it is astounding to note the difficulty of obtaining same. No wonder the public is uninformed or indifferent about its government! One correspondent wrote: “Our city auditor is the only person who can give you the information you are seeking.” That auditor did not reply,-but worse, that city is in jeopardy. Requests were sent to 247 cities and 13 Canadian cities, having a population of 30,000 and over in 1930. The Census Bureau recently reported 1277 cities in the United States having that population on July 1,1935, but the list was received too late to address enquiries to the 42 new cities (two cities have dropped below 30,000 since 1920). Subsequent compilations will be upon the basis of the 1935 census estimates, and the continued co-operation of all public o5cials be sought.

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Croup I Population 5W.000 snd over 100 w 100 100 100 I00 1. New York. N. Y-'. . . . .__. ._. . . .. . . . 2. Chicago. 111.1.. . . . . ._. ..... . . . ...... 3. Philadelphia, Pa.'. . . . . . . . . . . . . . . . . . 4. Detroit, Mich.'.. . . .. . . . . . . . . . . .. . . . 5. ha Angela. Calif!. . . . . . . . . . . . . . . . . 6. Cleveland, Ohio.. . . . . . . . . . . . . . . . . . . 7. Bt. Louis, Mo.. . . . . . . . . . . . . . . . . . . . . 8. Baltimore. Md.'. . .. , .. . . . . . . . . . .... 9. Boston, Mpas... . . . . .. . . . . ._. . .. . .. . 10. Pittaburgb. Pa.' . . . . . . . . . . . . . . . . . . . 11. San Francisco. Calif.'. . . . . . . . . . . . . . . 12. Buffalo. N. Y.'. . . . . , . . . . . . . . . . . . . , 13. Milwaukee, Wia.. . , . , . .._. . .. . . . . . . $26.76 42.00 27.00 26.07 37.70 21.90 croup I1 Population 300,WO to 500.000 92.6 76 90 80 50 85 76 90 14. W.ahiugton, D. C.10 ....._.. .. .. ... .. 16. Newark. N. I... . . .._ _..... .... ..... 18. Minneapolie, Minn.". . . . . . . . . . . . . . . . 17. New Orleans, IA.. . . . . . .. . . . . . . . . . . . 18. Seattle. Wnsb." ... ... ... .. ... ... .... 19. Cincinnati, Ohio.. . . . . . . . . . . . . . . . . . . 20. Ksnsrrs City, M0.U.. . . . . . . . . . . . . . . . . 21. Indianapolis, 1nd.l'. . . . . . . . . . . . . . . . . . 22. Rocbeater. N. Y... . . . . . . . . . . . . . .. . . 23. Jemy City. N. J." ... . . . . . . . . . . . . . . . tr, 0 $24.16 z 31.68 24.30 18.86 18.62 18.63 c( 26.68 0 20.06 z COMPARATIVE TAX RATE3 FOR 216 CITIPB OVER 8O.OOO FOR 1926 COMPILED BI ~PL D~IT Brr~un 01 Corurnr~rrr~ F&mscs. hc. From Data hrnishsd by Msmbara d the OovarnmaaW R-h conlm, City 016ciali. and Chambsn of Commsns 100 100 100 &MU# July 1. 1925 84.70 a1.w as.65 8,103,384 2,888,239 1,979,364 1.242.044 1,195,344 938,485 821,543 796,298 781,629 831,583 657.630 638,016 bOUJ82 497,908 452.613 425.41 414.493 411.578 408.333 387,481 368.819 ~III,~IM ai6.280 88 76 100 100 86 100 98 80 74 86 80 100 h=+ valuation 23.77 24.00 9 14.00 22.29 30.81 33.86 17.03 21.88 21.93 27.34 9 37.80 8 34.a $12.140.856.083 1,788,276,486 3,828,466,711 2.757.W,010 1,374,760,665 2.149.3DO.230 1,036,197,670 1.643,oM.261 1.808.705098 888,830,120 684,089,920 802,203,610 751,229,861 1.28a,083.104 660,233,508 294.983.070 476,110,689 244,057,734 471,144,170 Q6,044,620 471.478,774 610,!409,606 884,789,400 100 100 38 86 60 100 100 100 100 100 Pa cant 14.00 37.80 26.22 30.81 36.27 18.92 29.m 26.80 84.18 34.35 =It! 98 77 77 7D 82 68 85 60 90 100 82 Do 78 80 82 82 68 80 68 fa 69 100 90 2 23 23 21 18 32 16 40 10 18 I 24 10 18 18 32 20 32 36 31 10 .. Jan. 1 Jan. 1. '24 Jan. I July 1 July 1, '24 Jan. 1 A~I. 8. '21 JM. 1 Feb. 1. '24 JM. 1 July 1. '24 Julr 1 Jan. 1 July 1, '24 JM. 1 J.n. 1 Jan. 1 JM. 1 Jan. 1 Apr. 18 Jan. 1 Jan. 1 Jan. 1 of lOlleatl0n of tua June I Dea. 1 Jan. 2. '26 Jan. 1 July 1 Dee. 1 Oct. 15, '24 Dee. 20, '24 June 20, '25 Nov. 1. '24 Jan. 1 Oct. 15. '24 Jan. 1 Oct. '24 Jan. '26 July I Dm. 16, '24 Nor. '24 May '26 Apr. 16 JM. 1 June 1 Mar. 1 Deo. 20, '24 June 20, '26 June 1 May I Nov. 1 May 1 Apr. 1 Dec. 1 City b19.17 41.40 17.50 14.27 17.00 10.80 16. 10 21.67 13.69 16.16 28.62 ao.22 16.32 14 .00 18.61 36.64 20.60 33.04 8.42 12.50 11 .00 22.23 la. 38 School 16.38 30.30 9.60 6.11 13.90 6.94 8.60 4.13 7.06 11 50 6.08 8.80 .... .... 9.00 20 70 7.00 14.28 6.60 11 .50 0.35 15.26 .... D.06 6.80 .... 2.m 6.80 2.26 _... .... 1.64 8.37 6.43 4.58 .... .... 6.40 7.02 12.60 3.66 4.30 2.65 3.86 7.34 .... Ebb 11.25 6.50 2.10 2.91 1 .OO 2.73 2.41 .... .... .... .... .... 1.92 .... 4.70 6.73 8.76 10.62 .26 2.w 1.69 4.18 1.00 TOW 126.76 84.00 27.00 25.07 37.70 21.90 24.70 28.63 24.70 33.02 34.70 35.65 31.60 14.00 37.80 88.09 36.25 70.54 18.92 29.30 26.80 34.18 34.36

PAGE 47

Qrou 111 Popvbtion 108.000 to 300.000 24. Toledo. Ohion.. ..................... 25. Portland, Oreson17 .................... 26. Denver, Colo.. ....................... 27. Columbus. Ohio.. .................... 3.22 7.80 4.20 5.05 4.00 10.00 15.34 11.00 3.30 4.14 11.50 8.00 7.60 1.25 8.24 .35 8.31 .... .... .... .... .35 2.89 9.00 6.72 .36 3.10 6.00 .93 3.80 9.51) 9.70 5.00 6.62 .88 4.09 4.60 7.60 28. Providence. R. I.".. .................. 29. Louisville, KY.". ..................... 30. Wd, Calif.*.. .................... .20 6.60 3.70 2.91 1.47 6.00 6.73 6.00 2.35 .26 6.50 8.00 7.70 1.65 2.60 .66 2.91 16.40 2.60 .82 .... .... .20 7.70 a.60 .87 2.47 .... 1.67 2.16 2.60 2.40 2.46 1.98 2.10 2.30 2.60 .... 31. St. Paul. Minn.n.. .................... 32. AtlUJb. hn.. ...................... 37. lhllu, Tew.. ........... 39. Richmond. Vr. ...................... 40. Byrscue. N. Y... ..................... 41. Nsr Haven, Cam... .................. 43. Daybm, Ohio. ....................... 44. Houston Teua.. ............. 46. Norfolk,'Vs.'~. .................... 46. Hartford. ConnP.. ................... 47. Y0ungatoan.0hi0.. ................... 48. Bridgeport. Conn.. . .......... 40. Fort Worth, Term.. ................. 60. Grand Rapids. Mich.. ................ Jan. 1 Jan. 1 Jan. 1, '26 July 1 62. &ranton, Pa.'. ..................... 63. Springiidd, Mu.. ................... 54. Paterm. N. I.. ...................... Jan. 1 Nnv. 1, '24 July 1 {k.: ................... ................ I 65. N.ahvilla, Tcnn.. 66. Oklabcau City. W.. 68. &It Me City. UU.. ............... 69. Flint, Mich.. ........................ 60. Fall River, Mum.. .................... 61. Camden. N. J.. ...................... 63. JfamCity Knn ..................... ,M. Wilmingion,'Del.. .................... 287,380 282.383 280,911 279.836 267,918 269.269 263,700 246,001 224.300 211.786 208,416 206,670 1W.im9 191.460 192,242 11.403 182,003 178,927 172.911 164.964 161.0oo 160,107 160.070 1bb.m lM.847 163,698 149.1I111 142.2M 142.224 141,695 136.220 13b.ooo 130,943 130,316 129,662 128.642 123.743 122.019 541,335,720 309.470.855 400.460.690 W.731.800 426.473.250 360,000.0M) 229,845,020 17l,lU,937 31,683,180 188:m: 180 a(7,171,702 31831,IW I78 202 426 224 617 275 287h22:bM m.mQm 26l,alN,568 290,741,613 aa,ni,m 2l4,oM).oOO 101,723,926 W3.120.279 M8.058.310 257.17a,ti89 162.431 ,Oa, 231,an.i~ 188,a23,eao 26l.al.aso 190,504,005 149.W.260 116,736,146 fl,763,676 169JOO.520 165.642,W 131,126,187 120,617,426 146,826,260 2~542260 10 a2 67 73 12 80 n ia a7 73 66 81 76 06 86 63 99 86 76 86 76 w) 71 78 76 70 76 100 87 76 80 79 77 60 81 79 100 m 30 18 33 27 23 28 40 28 27 36 19 26 35 16 37 1 15 26 16 26 10 29 22 26 30 26 13 25 20 21 23 40 16 21 is 2o .. Jan. 1 Jan. 1 JUJ. 1 JUJ. 1 Oct. 1. '24 June 1. '24 Jan. 1 h. 1, '24 Feb. 1 BEE POOTNOTW ON PAGE 188 0.46 17.20 10.02 6.70 16.16 14.30 24.60 30.10 8.40 8.86 11.60 17.20 15.08 18.35 13.W 10.09 14.00 0.24 18.76 27.60 13.83 7.30 19.19 16.40 10.93 12.97 21.00 18.30 26.58 16.90 15.03 11.30 13.63 17.07 10.87 11.90 16.60 9.80 8.06 10.80 11.98 5.04 6.37 0.20 18.20 10.73 6.W 12.00 10.74 6.50 8.50 9 62 8.25 7.50 10.00 6.34 10.00 6.79 9.85 6.98 10.00 13.03 16.81 18.00 11.70 2.88 1.80 16.52 13.60 13.29 7.67 lo.w 16.00 3.40 9.83 .... zl.w 41.00 29.90 20.30 23.00 29.60 63.80 67 .w 31.00 27.45 24 00 36.00 41.70 40.00 29.40 23.60 34.09 26.00 20.80 45.15 30.00 20.79 20.50 27.10 42.10 29.63 38.00 46.00 3a.60 35.22 27.00 42.75 32.30 S4.80 27.00 28.00 34.70 28.10 100 100 100 100 100 100 100 88 100 100 100 80 E4 50 100 100 100 100 100 60 100 100 100 100 60 100 100 100 100 100 100 100 100 100 100 100 100 100 aim 29.00 41.00 20.30 23.00 20.W 63.80 21.80 ai.00 27.46 24.00 21.60 20.86 20.00 29.40 23.50 84.09 26.00 m.80 a.68 80.00 20.79 2O.W 27.40 21.05 29.63 38.00 46.00 85.22 42.76 32.30 34.80 27.60 S4.70 3a.60 27.00 28.00 a9.10 76 60 80 80 67 90 66 80 66 80 70 07 76 67 86 07 70 100 80 XJ 67 80 70 100 80 m 76 75 100 76 76 46 100 70 100 80 60 100 c1 E 15.76 24.80 23.92 16.24 16.33 26.56 0 29.69 0 16.80 14.40 13.33 24.99 a 15.07 23.86 2 26.00 18.77 2 x 20.10 16.83 c3 14.36 z;f 0 27.10 16.84 q 23.62 28.M cn 26.42 4 20.u 2 :::: 0 :::: cn 24.36 27.60 22.40 17.1 20.10 4 cn 4

PAGE 48

05. New Bedlord. Mm.. ................ W. Cambridge. Mw.. .................. 67. &ie Pa. ......................... 68. Albany. N. Y. ..................... 69. Yonkers. N. Y.. ..................... 70. Reading. Pa.. ....................... 71. Lowell, Mua. ...................... 72. Dulutb, Mi. ..................... 73. BpoLne. Wsab.. .................... 74. ELirabtb. N. J.. .................... 75. Canton. Ohio. ......... 76. 9an Diego, Calif.. ................... 77. El Pw. Teua ..................... 78. TaCOmS. WMb.". ................... 79. LYM. Maaa.. ....................... 80. Utiu.N. Y.. ............ Group ZV 81. Bornerville. Mase.. ................... 82. Fort Wayne, Ind ..................... 83 Knoxville Tenn ...................... 85. Lnwreooe. Mua.. ................... Population 50.000 to 100.000 M: ~~lreo~*ijls, FL~.. ................... 89. Scbenectrdy. N. Y.. ............ 90. Allentown. Pa.. ................ 91. Waterbury, COM.. .................. 92. Long Bucb, Calif.. .................. 04. Harrisburg. Pa.. .................... 95. Manchatsr, N. H.. .................. 90. Euntnmck. Mich.. ................. 97. Pwia 98. south 120.494 120,053 120.000 117.820 113.647 112.707 110,642 110.w2 108,897 107.000 108.260 106,047 101,929 104,466 103,147 1Ol.W 99.208 97.846 95.464 95.450 95,136 93,601 93.134 92.786 92,151 91,715 91.182 83.422 83,097 81,731 81,684 80,091 COMPARATIVE TAX RATE8 FOR 218 CITIEB OVER 30,My) FOR 1916-conlinwd S217.627.400 158,452,100 120.7% 24 1 164,421.704 227,066,707 106.000.OOO 140.446.920 79,996,836 86,M9,924 128,617,696 159,12,700 121,537,414 101.658,870 60.070.847 115 891 075 120:382:768 99.8 11 ,OO0 200,211,100 103.840,466 76.781.680 129,116,058 129,OOO.OOO 74,262,!U8 177.IE4.lioa 72,629,354 163.730,310 1M.700.910 81,898,115 118,tM9,7IM 111,444,152 41,761,640 IM,EQ7,350 mlty 60 87 96 93 99 100 74 73 75 86 63 8a 80 77 I 100 91 73 80 82 73 80 70 100 100 78 87 100 62 05 69 67 'UEOnJQ 40 13 4 7 1 26 27 26 I4 37 I4 23 16 m 9 27 20 18 27 20 30 23 13 38 35 31 aa FlDd y!& Dee. 1. '24 Ap. 1.24 JM. 6 Jan. 1 Jan. 1 JM. 1 Jam. 1, '24 Jam. 1 JM. 1 JM. 1 JM. 1 JM. 1 Mu. I, '24 JM. 1 Jm. 1. '24 JM. 1 Jam. 1. '24 Jan. 1 Oct. 1. '24 Jan. 1 Jan. 1. '24 Jan. 1 Jan. 1 Jan. 1 JM. 1 Jan. 1 July 1, '24 Jan. 5 Apr. I July 1 JM. 1 Jan. 1 hta of oolleatim of turn Oct. 15, '24 &t. 16, '24 Mu. 1 Jan. 1 Mu. 10 Mu. 1 Oct. 15, '24 JM. 1 May 31 Nov. 30 June 25 June 1 Jm. 1. '26 Feb, 1 Oct. 15, '34 Aug. 1 Oot. 16, '24 July 1, '25 Dec. 1 Oct. 1. '24 { 2.: M.Y 1 June 1 M.u 1 {Nor. I Oor. 12, '24 Apr. 1 July 16 Jan. 1 M.T 4 {Nor. 2 {kill City 117.61 19.37 12.20 20.76 13.01 19.19 23.88 18.00 16.06 8.64 21 .00 25.w 26.73 18.11 17.10 1a.w 16.90 6.14 24.40 21.90 14.42 12.80 19.00 11.87 11.25 32.40 14.00 13.00 15.43 12.25 29.10 7.70 Bcbd 16.80 8.79 14.00 6.43 11.28 18.00 7.07 27.20 14.20 9.24 11.16 ..... ..... 14.50 9.47 7.87 7.59 9.00 22.50 8.90 9.10 5.00 9.79 16.00 16.20 6.87 27.60 .... .... i8.m 8.60 1o.m :out1 __ w).m 1 40 7.00 4.90 3.79 4.00 1.87 10.61 11.74 4.77 3.78 9.40 20.68 1.60 4.07 m.m 1.00 3.26 10.70 I9.60 2.29 2.70 12.50 6.68 am .... 7.60 6.00 2.63 2.43 8.50 4.20 Ebb B1.19 3.74 1.42 1.77 11.66 3.72 .26 .... i .4a 6.7a .... .... 7.50 a.a2 10.86 1.83 3.21 2.80 10.60 2.86 5.00 2.81 .... 2.a9 .... .... .... .... 8.67 2.03 6.60 2.80 TotJ W6.40 aa.30 29.60 30.00 29.40 67.20 56.60 32.80 24.80 46.30 72.10 31.77 sa.ao 33.60 4a.w 81.80 28.70 21.20 35.10 74.40 28.00 27.40 41.W 30.08 29.1s 32.40 36.70 37.60 28.60 71.60 26.00 2n.m 100 100 100 100 100 100 100 38 60 100 100 100 60 60 100 100 100 100 100 50 100 100 100 100 100 100 100 100 100 100 100 60 826.40 35.80 88.20 8a.m 29.60 80.00 29.40 26.M 27.80 82.80 u.80 46.10 21.76 31.77 30.08 a1 .so a8 .70 21.20 a5.10 a7.m 28.00 27.40 41.60 80.08 29.25 32.40 86.70 87.60 25.20 1.80 25.00 2n.m 100 100 80 79 87 60 100 80 84 100 60 60 100 100 100 6.9 100 75 68 80 100 100 60 93 80 80 60 @n 100 75 100 70 -l cn -OD P6.40 26.47 + 28.07 4 Z:E z 81.80 23.18 21.76 M.08 H s1.80 fi 2l.W c( cd i8.m W 28.70 u.00 27.07 23.40 u.ea a2.60 .~j 18.90 2 i3 -$ 18.35 28.60 CD 36.80 17.60

PAGE 49

99 . 8t . Jole h . Mo ...................... 100 . W&*l urs.Pa .................... 101 . Owy . Ind ........................... 102 . Rockford. Ill ........................ 104 . Little Rock. Ark ..................... 105 . Chuleston. 8 . C ..... 100 . Highland Park. Mich ................. 107 . Sawamenlo . Calif .................... 110 . Sapirua . Mich ...................... 111 . Binghwnton . N . Y ................... 112 . Jobnrbm. Pa ....................... 113 . Eut 8t . Louie . 111 ................... 116 . Tme Haute . Ld ..................... 110 . Law . Mich 118 . WinmtonSalem. N . C ................. 119 . P.se*a,N. J ........................ 120 . Spriu&cld. Ohio ..................... ................. ... 123 . New Brit+. Conn ................... 124 . Racine . Win ........................ 12e . Berkeley. Calif ..................... 127 . A!tooM . Pa ........................ 129 . BredLon . MJM .................... 131 . Huntmgton . W . Va ................. 133 . Bethlehem, Pa ...................... 130 . Bprinphld. Ill ...................... 184 . Cieero I11 .......................... 136 . Lincolb . Nebr ...................... 1% . hiyoke . Mu ..................... 137 . Qui~y . M.sl ...................... 138 . Eut Orange. N . J ................... 189 . Portsmouth, Va ..................... 140 . huno, Calif ........................ 142 . Macon . Ga.*. ...................... 143 . Roanoke . Va ........................ 144 . Wichita Falls . Tour ................. 14e . Bhreveport . La ...................... 78. 342 77m2 70.870 70.402 74.216 73.125 72.289 72. 260 72.217 72.100 71. 916 71.475 71. 425 71. 071 70. 753 69.031 68. 979 68. 725 68. 507 08.106 08.039 07. 707 ea. 200 66. 148 05. 731 63.923 83.486 62. 828 62. 23a 60. 941 60. 882 00.131 69.967 59. 029 58.485 58.237 68.203 58.020 67. 857 '19.280.wo 105.000. OOO 139,244. 070 44.017. 500 58.714. 847 25,165.097 197.923. 950 91.844. 280 116.382. 875 88,571.102 101.501. 192 80.223.000 108.625. 055 9l.wo.ooo 143.711.190 130.oM).ooO 84.819. 550 95.477. 460 83.898. 006 96.685. 104 98. 188.515 83.moB.4MI 73.198.075 e5,00(.837 ea.21e.200 29.531. 583 1a3.990,8e5 63.678. 758 13.003. 536 102.161.75C 110,077.2M 93.653. 975 95.518. 970 42.790. 359 40.684. WE 40.891.429 07.910. 580 34.097. 170 102.OOO.OOO . . 64 05 00 70 00 46 Be 79 77 93 93 80 76 75 45 oe 78 ea 100 91 73 79 93 100 83 71 80 96 68 70 78 87 88 83 78 79 70 71 W . 30 4 35 34 30 31 M 14 21 23 7 7 20 25 25 55 22 34 9 27 21 7 17 29 20 5 32 24 22 13 12 17 22 21 30 29 40 Aw . 20 Jan . 1 Jan . 1 Jan . 1. '24 Jan . 1 Jan . 1. '24 July 1 Jan . 1 July 1 Jan . 1 Jan . 1 Jan . 1 Jan . 1 My 1 J.0 . 1 . '24 June 1 Jan . 1 Jan . 1 Jan . 6 Jan . 1 Apr . 1 Jan . 1 July 1 . '24 Jan . 6 Deo . 1 '24 June 80, '24 Jan . 1 Jan . 1 Sept . L.24 rka . 1, 'I4 Jan . 1 . '24 Jan . 1 Jan . 1. '24 July 1. '24 J.a . 1 Jan . 1 . '24 Apr . 1, '44 Jan . 1. 'U MU . i. '24 May 5 A . 1 {Nor . 1 Jan . 1. '25 JM . 1 OOt . 1. '24 GY 1 Mar . 1 [EL. '24 June 20. '26 Jan . 5 { Aw . 1 Dec . 1 July 1 Jan . 1 Oet . 20 . '24 Mu . 1 Oct . 16 . '24 Jan . 1 '25 NOV . i . '24 Mu . 1 Oct 1 '24 Hepi . 46. '26 Oot . 16 . '24 h . '24 Oet . 19 . '24 Apr . 15 Nor . 1 . '24 Oat . 1 '24 Deo . i. '24 8eE FOOOTOTEB ON PAW 762 . . 11.60 13.00 10.46 20.50 5.17 46.00 9.40 17.40 8.50 14.88 17.04 13.90 43.30 10.20 11.34 7.00 20.35 0.70 23.05 12.03 8.50 12.30 7.50 26.95 33.40 6.00 11.50 53.40 7.75 16.48 14.87 11.00 21.55 15.00 22.50 24.00 10.50 9.00 ie.74 . . 12.25 14.00 13.20 27.40 12.00 14.75 7.60 20.37 14.00 11.44 8.14 14.60 33.00 14.30 9.89 4.00 .... 10.1 12.00 11.44 10.68 0.18 9.71 31.00 10.00 13.00 29.30 15.00 4.37 7.02 11.45 10.00 8.90 3.50 1a.m .... .... 10.00 1.00 ._ . 7.8s 6.80 6.40 11.70 8.50 33.00 3.00 13.63 3.49 4.91 6.50 6.00 7.60 7.9s 3.16 6.H 3.71 3.89 4.00 . 26 4.51 30.g 7.M: 1.71 7.M 3.3( 5.a 5.N 1.31 1.31 1.Of 5.4t 33.u 18.U 7 5( 0.M 7.6a .... ... . . 1.10 2.80 6.W 8.70 0.00 1.64 .... .... a.31 2.21 .... .... 0.60 2.80 2.07 4.78 . 26 4.m . 79 1.48 1.43 7.00 1.40 .... .... .... .... .... 0.60 2.1 1.81 1.12 2.50 6.00 2.50 7.50 5.26 2.1e .... . . 33.70 32.80 31.85 72.10 34.37 oB.76 z1.m 61.40 28.30 33.42 3o.a 34.40 00.30 35.25 2e . 45 16.50 34.90 21.70 25.00 47.50 23.76 23.73 40.40 27.00 39.80 79.60 19.70 29.50 95.00 23.00 27.00 32.90 23.50 63.85 38.00 25.00 49.00 28.25 2e.a . . 100 100 100 50 60 42 100 100 100 100 . 100 100 50 100 100 100 100 100 100 100 100 100 100 100 100 60 100 100 50 100 100 100 100 100 100 100 100 50 100 . . . 33.70 31.86 30.05 17.19 41.48 21.64 51.40 28.30 33.42 30.88 34.40 46.15 36.26 26.46 16.60 91.90 21.70 26.00 47.60 23.75 23.73 27.00 39.80 39.80 19.70 29.50 26.43 23.00 27 . 00 23.60 4.86 58.00 26.00 24.60 28.26 32.80 4e . 40 47.50 3a.w . . 80 80 60 00 75 80 72 70 80 76 80 100 76 80 75 100 66 70 76 81 74 ea 80 50 80 75 so 80 100 100 65 70 60 80 60 80 50 m eo . Y . . . 19.11 18.03 10.32 81.10 17.23 37.01 fi 23.01 27.62 45.16 2 21.10 14.32 17.60 % 35.g 19.w 2 ;;:z Cn 19.90 16.70 a 28.50 21.14 fi 22.15 E: g;:: 7 21.39 10.40 91.92 a2.80 19.60 14.15 12.60 -2 (0

PAGE 50

Pa mnt Totrl mb or coll&tton of tua b.lt> 100 88 78 73 89 61 72 05 83 85 87 73 79 74 100 84 88 82 78 76 06 92 86 76 8s 81 74 82 78 84 70 OB 73 0I.b .... P.28 1.40 2.31 6.00 2.10 2.11 6.76 4.37 6.M 1.39 7.60 6.W .... .... 1.43 1.40 2.03 .... .... .... a.10 1.70 2.m 2.67 1.88 .... .... .26 2.87 6.00 1.98 1.4) cewr July 1. 1916 hi u.84 2.91 7.w 6.W 4.67 8.W 6.01 8.97 13.66 1.a 9.w 6.70 6.80 a.72 7.63 1.26 8.00 4.30 6.33 9.94 .70 6.31 11.00 2.04 8.00 6.81 6.13 8.00 8.24 1.29 .... .... .... Arased dustion City I_ 810.23 6.77 12.80 1.66 10.87 18.00 11.00 16.01 27.00 18.M 14.10 42.70 a7.7e i4.m 11.60 18.1 10.00 6.16 14.67 17.80 16.06 22.10 22.06 20.19 16.00 18.79 13.8 16.43 7.60 1l.W 12.00 16.88 16.66 67.033 68.774 66.732 68,208 MA11 66.246 63.287 62.241 61.789 61.W 60.801 60,616 60.369 1w.6ia 49.087 4D,OBP 49,074 49.019 48.907 48.376 48359 47.627 47.m 47.466 47.287 47,241 47.083 46,895 46.717 46bw 44.w E% S113,661,1bO 146.W.910 114,023,088 1ae.sz8.790 ma.im w.mo.4m 73,663,846 208,887,101 65,m0,900 66.008.9M) 10,040,160 6B.166,540 19,926,080 19.104.ooo 12,690,190 85,069,740 47,260,836 106.676.738 47,934,240 56.271,WS U.678.686 60.441.m 81,788,300 46,714,OOB 62.14 1,874 44,866,710 47,271.890 8a,694,810 6B.Ml.wi 44,909,483 iia.aio.03( 69.498.826 re,or~,em 12 22 27 11 I 28 6 17 16 13 27 21 26 16 4 '? 22 26 5 8 16 24 16 16 26 18 22 16 27 Y JM. 1 JM. 1. '24 July 1. '24 July 1. '24 Jan. 1. '24 JM. 1 JM. I Jan. 1 Am. 1 JM. 1, '24 Mw 1. '24 JM. 1 July 1. '24 Mu 1. '24 Jan. 1 JM. 1, '24 Jan. 1 July 1.24 July 1 July 1 July 1 JM. 1. '24 Jan. 1, '24 Jan. 1 JM. 1 JIM. 1. '24 Jan. 1. '24 Jan 1 Ian. I apr. 1. '24 Ian. 1 Ian. 1 Dm. 1. '24 ll0.W 8.67 0.60 12.66 am ta.00 la. 27 4.61 30.10 10.67 68.70 11.78 8.80 38.60 16.60 7.m 14.00 10.80 14.14 4.00 12.88 8.80 9.47 17.48 7.4a 9.M 8.87 11.03 21.76 6.00 7.67 9.n 13.60 m.a7 ma0 20.00 41.20 It.46 44.00 82.88 81.60 76.60 36.00 116.70 04.40 ai.00 4o.m 36.63 29.20 32.00 22.06 36.07 21.30 38.77 M.20 45.73 a0.20 26.60 8a.m 30.60 31.80 31.m 24.00 42.26 28.20 29.20 100 100 100 100 100 I00 100 100 m im 60 do 100 100 100 100 100 I00 100 100 100 100 I00 100 100 100 100 100 100 100 100 100 im a.31 2o.m 41.24 28.41 a0.w 44.00 2.2.1 a1.w 38.U 35.00 68.36 40.70 47.70 ai 00 36.63 20.20 32.00 22.Y I.01 38.77 a3.m a4.m 4s.n 39.M) 80.20 26.00 81.80 24.00 42.1 11.00 28.m 24.20 21.80 100 100 1 70 m 60 80 100 06 100 60 68 76 67 76 100 60 70 100 76 80 Bo 100 76 70 80 60 60 80 60 M 100 W Nor. 1, 'a4 Dso. I w at. emh Nor. 1 '24 June ad. 'I July 1 &pt. 1 Oct. 16 '24 Jan. 1, '26 JM. 1 Nor. 1, '24 JM. 1. '26 147. Nim Falh, N. Y.. . . . . . . . . . . . . . . . . 148. Lkerd. Ohio.. . . . . . . . . . . . . . . . . . . . 161. Whdw, W. V. .. . . . . . . .. .. .. . ..... 149. MOM, cdf.. . . . . . . . . . . . . . . . . . . . 163. A@,&.. .. . . . . . . . . .. .. . . . . . . .. 164. IGLmwo, Mioh.. . . .. . . . . . . . . .. 167. Atlpntio aty, N. J.. . . . . . . . . . . . . . 164. Ihvsnport, Ion.. . . . . . . . . . . . . . . . . . . 159. Maldsn, Mw.. . . , . . . . . . . . .. . . . . .. .. 160. OSkPuk IU .___.__... .__.. .__...... 161. Kanab.. Wi.. , , . . . . . . . . . , , . . . . . . 162. Beaumont. T~IM. . . . . . . . . . . . . . . . . . . . 165. Decatur, 111.. . . . . . . . . . . . . . . . . . . . . . . . QmP v PopuLtion 30,000 to 60,OOO 168. McKeuport. Pa., . . . . . . . . . . . . . . . . . . . 169. Haverhill. Mrss. . . . . . . . . . . . . . . . . . . . . 170. York, Pa.. . . . . . . . . . . . . . . . . . . . . . . . . . 171. Charleabn, W. Va ... . . . . .. . . ... . . . . . . 172. Bay City, Mich.. . . . . . . . . . . . . . . . . 173. Ollvmlon. TRM . . . . . . . . . . . . . . . . . . . . 174. Elmira. N. Y.. . . . . . . . . . . . . . . . . . . . . . . 176. Medford. Mnm.. . . . . . . . . . . . .. . .... .. 178. Stockton. Calif. . . . . . . . . . . . . . . . . . . . . . 179. PitGeld, M.sr 181. Newport New, 169. Lexington, Ky ......... . .... ... ...... .............. .. .......... ........._.... 16.87 20.60 28.80 16.42 24.24 ?c3 22.00 8 m.14 '2: 81.8 g 36.00 g 24.86 29.18 81.80 c( 26.72 29.20 16.86 M 36.07 19.20 l.J 16.98 9 29.88 31.02 8 a4.20 34.m 27.65 24.16 16.36 15.90 26.86 8 -g 16.W Bept. 16, '24 June I Oet. 16. '24 Apr. 16, '26 Aug. 1 &tl Juk.1 Nov 1 '24 July 1 Feb. 9 ckt. 16, '24 Nov. 80. '24 June 1 1 E. Jm Jan. 1. '26 oct..ld, '24 '24 Aw. 1 Be@. 16, '26 Apr. 11

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193. Pueblo, Colo.. ....................... 195. Juoastoan. N. Y... ................... 198. Mde on, Mich.. ................... 200. Brwklina. h. ..................... 201. Muncia, Ind.. ........................ 203. Battle Creek, Mich .... 204. LorJne. Ohio.. ...................... 205. Springfield. Mo.. ..................... 207. Chicoopee, Mu.. .... .... 208. Columbia, 8. C.. .... 210. Joliat, Ill.. ......... ... 211. Aurm, IU.. ......................... 212. Roek Island. IU.. ..................... 213. Dubuque. Iowa.. .................... 214. Superior, Wia... ................... 216. Taunton, Mnas.. ..................... 217. New Brunawick. N. J.. ............... 220. Wilmington, N. C.. ................... 222. @den Uhb. ........................ 198. &lem,7bfm.. ..................... ... ._.. 226. Auburh, N. Y.. ...................... 230. Po+pia. N. 231. Orange. N. J.. ....................... 233. Lemton, Me.. .. .... 236. Green Bay, Wu.. .................... ua. An+e.rdun, N. Y ..................... ......................... .................... 237. Moline, Ill.. 238. Bbrboyp Wu.. NO. ws(srbm: N. Y.. ................... 241. Mwtogcm, Oh.. .................... 242 hcrous wu ........................ 243: Niabwgi~ N. Y.. .................... 244. Lyncbbur~, Va.. ..................... 246. Colondo Sprbw, Colo.. .............. 43.912 43.883 43,787 43.414 43.088 42,821 42.633 42.491 42.259 42,140 41.888 41,225 40.578 40.264 40.073 40.000 39.286 37.984 37,061 37.021 36,889 36.192 36.14a 35.712 35,670 35,379 35.260 34,932 34.290 33,910 33.535 32,836 32,175 30.421 30.419 30.395 30,108 42.31 39.e71 58.wO.000 25.727.718 35.246.146 3 1.899.374 55,248.305 62.391.880 127.427.100 80.4?0.&10 64,7flS,990 59.W1.145 38.958.832 18,556,8135 12.833.401 17.147.990 11.838.059 43,m5,848 46,031.803 99,833,210 34,638,425 43,699,119 13.3w.065 38,784,605 21,943,612 27,008,427 41,121,785 43,414.074 33,882,410 30,218,260 91,887,709 47,726,WJ 12,030,108 39,943,139 31,124,616 41,888,883 29,619,390 51,7W,61S 39,798,800 47.9ze.m 4~,016,mo 72 79 72 100 77 87 67 74 70 69 75 60 76 70 70 15 80 77 88 90 66 100 93 61 100 90 100 80 76 68 89 80 69 I00 92 Bs m 67 e7 28 21 28 23 20 13 45 30 31 25 40 24 30 30 2!l 20 23 12 10 34 33 7 39 28 10 20 24 32 33 1 20 31 8 17 oct. 1. '24 JM. I J.e 1 Hu. 1 JM. 1. '26 Apr. 1, '24 Jan. 1, '24 JM. 1 July 1 Jan. 1 July I Dee. 1. '23 Jan. 1, '24 Jm. 1 Jan. 1 Ap. 1 Aw. 1 JM. I Dee. 1. '24 Jan. 1 JUM 1. '24 My 1. '24 Jan. 1. '24 July 1 :$ ! Jan. 1 Jan. 1 Jan. 1 Mu. 1 Jao. 1 Apr. 1. '24 Jub 1 Jan. 1, '26 Jan. 1 Fob. 1 JM. I :3: Oot. 11. '24 JM. 1 Jan. I h. 1. '24 Oet. 16, '24 Oct. 15, '24 Mw 1 NO?. 1 July 13 Dao. 20, '24 June 20 &pt. 1 Oct. 16, '24 Oet. 16. '24 Feb. 1 Mu. 1 Feb. 1 JM. 1 Deo. 16. '24 Oct. 16. '24 Juns I h. 1 Oet. 1, '24 Jan. 1, '25 Oat. '24 July 1 Fob. 16 Aug. 15 June 1 h. 1 Aug. 1 Am. 20 Mar. 1 Dm. 16 Feb. '26 JM. 1 July I June 1 No?. 1 Dm. 1, '24 Jan. 1 AW. 20 Jan. 1 July 1 ;%I % : 10.40 s6.w 16.80 14.30 20. I6 10.93 20.40 10.00 10.87 9.60 15.78 28.00 33.80 30.90 26.70 14.13 7.38 18.613 18.30 10.00 29.10 11.00 17.48 11.00 15.00 18.20 19.81 10.69 18.00 29.10 16.81 15.40 16.61 16.76 25.20 11.00 a3.60 12.e~ i4.ao 6.60 59.30 14.60 23.23 11.23 9.85 4.78 I4.?0 8.05 11.60 55.00 30.70 LO.00 14.26 13.01 7.24 7.21 31.70 16.90 11.26 20.00 6.00 9.46 11.82 19.78 6.00 P.28 40.00 12.76 10.60 16.10 8.40 10.00 14.66 .... 9.04 .... 1a.w .... 5.60 6.80 0.60 8.03 7.65 1.36 3.40 4.60 2.87 5.30 1.00 LO. 60 7.50 10.00 12.00 6.25 LO. 05 9.W 6.29 7.30 5.1 11.81 13.01 7.31 5.40 10.62 2.00 7.07 4.65 7.61 8.96 4.81 8.70 8.47 1.62 . ee .... 12.00 .... 7.70 6.60 3.70 2.33 2.06 1.88 2.93 2.81 2.91 1.00 1.78 6.00 6.50 6.50 6.60 .87 1.36 1.84 4.80 a.80 8% 3.41 2.60 .... .... .... 4.77 7.00 6.50 1.80 1.69 2.50 1.03 2.50 3.70 .... .... .... 36.20 108.20 61.30 35.14 33.60 20.00 26.60 31.51 26.80 27.30 28.50 72.50 102.80 78.10 84.20 52.40 28.4 45.60 22.60 74.60 35.30 40.64 44.01 22.60 60.3~ a7.60 34.98 41.80 41.09 32.00 29.00 87.60 31.42 s6.20 42.16 30.00 31.90 23.60 41.21 100 60 100 100 100 100 100 100 1M) 100 I00 100 42 50 60 60 100 100 100 1w 100 60 100 100 100 100 100 100 100 100 100 60 100 100 100 100 100 100 loo 30.20 54.10 61.30 60.39 35.14 33.60 !20.00 31.51 25.80 27.30 28.60 30.45 51.40 39.05 42.10 37.60 32.40 28.60 45.60 22.60 37.30 36.30 40.64 (4.01 22.60 2e.60 34.m 41.80 41.00 32.00 29.00 43.80 34.42 42.16 31.90 41.22 35.20 30.00 23.w 60 50 95 60 90 100 100 100 76 50 70 100 60 50 40 50 76 81 100 60 86 66 76 70 71 80 80 MI 1M) 60 100 87 4 80 80 eo (17 m no c1 u 21.72 27.06 48.74 30.23 31 63 33:w 0 20.00 0 23.63 19.11 28.60 15.62 3 25.26 28.13 28.48 15.98 m 27.97 33.44 8 z:;: E al 29.00 30.62 26.30 3 26.62 u.m m 1i.m 32.98 3 r,

PAGE 52

001 L8.M 001 OB'OE 001 00'10 OB 00'91 001 09'82 LO oL're 001 W'Z9 28 09'8Z 001 O8'EZ 9L S8'6Z 001 00'vz$ -I00" OB'OE 00'18 00'82. OL'IP 09'ZE 09'8Z W'BZ W'OZ 00'Rs oow .... .... .... .... .... .... .... .... 89'21 .... .... W.18 .... Ol3. 00:w .... .... .... .... .... .... .... so 01 00'6 08'0 LL'IZ 09'6 06'01 1E ZI PB'B SPZI OL'6 00 OIf f OSL'RC WS'LP 9ZSO9 BLE'SB oO0'811 880'811 S6t'ZZl LtLL'9TI 811'9E1 BZi'6W LZP'IQR ...................... R'? ''8 '.!w!A '81 '"'8 " 'TT 'W :I1 USlV OO~UOmP 01 I ana aaaqang '1 ...................... Y 'N 'x9!lsH XI .................... ..................... ........................ ........................ r
PAGE 53

lying &-h-iiy h I( 1) Jersey Tdcdo, Cuv Th ___ ..., e city rateiocluda 25 cents for universit 1' PorUond. The city rate includes 12.30 dock rate u1dk.40 port rate. I. The ratca 'ven am for Cenk? Tormsbip, the city rats inah& a 45-1 rak for tomship. Them M five tu rates in five toroship which oompk the city, fau tomrhip (othu khan Cenkr) itbin the axfut largely outaide. Nmfdt e citv rite inclirda school.. 11 Providence. There 18 no county government in Rhode Island. In addition to the ra._.__. _. I_ __.___ . I*Louirnllc. 01 the total valuation. 1I9.M)O.OOO L .hama of .tack of lunlu and tnut mmp.oiee. t..d W per 11, .tr sivm u IIY SI nnn im usaed on an iotar,gible valuation of 1133,1U,820 not included in tha vslustion aiven. 000 for rbmL and $2 fur city. CD M clr L za Oa&nd. The county rate includes 11.20 utilily dhtrkt. :Id. Paul. See Note 11. Money8 and cmditr. W.858,540, not included in ,lhe valulinn reported. M tued 13 pa $1,000. Alhnfa. The school rate is eatimakd. SehootS receive 26 per cant of total city revenua Y Harfford. In addition to the tax repoh, the city raises, thou& levy and mllecticm hy the stab Lnunuer, a one per mt tax upon a corpMtion stock valuation of $192,653,058, which U the tusbla valualiond Tacoma. >The city rate includes 11.50 port and 11.50 part. ai Macon. The county rate includea school,. fa Monfrc,d. The population of the C.M&L.D citiw in the local eathka for 1924, wully made by s ocnma department. The dml rate given in the Pmtest.nt nte, theCatholic rate u U.00; and the Na~tnl (cornn fironlo. Realty valuation includea 8.7 per cent income and 10.3 per mnt bunin-. For dml levy, tba valuation ia increvlal $62.161.80s, the value of dwelling4 up toU.000 valuation amp1 for ganCr.1 PW c1 the uhk of certain corporationheld by midentu. prisio bumneaq'corporations) rate 18 $12. Posr*. P *a Winnipep. Land valued at $132 997 590, in -ed at 100 per cant' imprnvunmta M d at Mli per cent. the we I* Vaneouiw. hod, yalued at 112d,1$,610,,i~ -ed,at 100 per centf improvemmta am mewed at SO per cent; be r&d rate being 82 per curt. The wtualrata wu I31.67, but wm mportcd 128.60 becatlss 2 '0 Hnmilh Realty vsludion includa 6.3 per cent income md 9.1 per cant bass. 81 Wm. The total rate given u for publio (Roleatanl) .Obd nrp ft EdmonOr;h. hd. valued at 136.8~0.080. i; -ed at 100 par cant; imprnvamantd ue d at 60 pa Mot, the weighbd nkbeing 80 par mt. In addition to the rab given. thm u h?bS Wppb'dSW kd average beins 80 per cent. over 80 per cant WM paid before expiration of bunt perd. rkn: tha rats for bpnb dmh u W higher. Dwbrc The city rate include. U for rater and 80 ants for lodmprovdent Tab. H m revenue tax of 12 on land only. Y 81. John. Realty valuation includea 31.5 per cent inoome. 8 Vidoria. Population mtimate is for 1921. Land, valud at )29,107.858, ia sssrred at 100 psr mt; improvmentr M aesea~ed at 50 par mt, the rekhbd av-e bk 70 Pa caDL k E cn a t! M cn

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RECENT BOOKS REVIEWED 764 A ~IIT UPON TBE ADMIN~~TRATION OF DELarQULNT PERSONAL TAX COLLurnON M CUYU~OGA Corn, OHIO. Ohio: Municipal Resesrch Bureau of Cleveland, 1936. T7 pp. This report wad prepared at the request of the auditor of CuyAoga County and ia deei hat to describe the present law governing delinquent personal tax collections in that minty, the administrative organization and procedure thenunder, and the mulb achieved; and recJond tion with a view to making better leaUlt.9 pssible. The writer wema to have kept both objecta ckarly in mind and to have refrained from diswive flights into the temptiq field of the shortcomings of the tsx on personal property in general. In spite, however, of the rigidity with which the report adheres to its narrowly limited mmp, it containa material of interest not only to the officials at whose request it wm made but also to aIl o5cials who are confronted by the difEcult problems involved in the collection of pvsonal property tares. Furthermore, it should prove of interest to students of the survey method becaue of the manner in which it utilizes the poorly opganized material at hand in the official records into a auhtisl fact basis for its concluaiona and recommendations. Finally. students of public finance will 6nd in the report new ammunition for use in their attacks on the personal prop erty tax as a whole. No advocate of an adequate budget system, for instance, an fail to be impd by the fact that a balanced budget is impossible in connection with a tax system which compels financial offioers, every half decade or no, to write off as uncollectible an aggregate of delinquent taxes equivalent to one fourth of the amount levied for one year. -PM. to ru(tgest dl.nee~ in both I~w pnd adminttraPgILIP H. Comicx. * MUNI~AL h TO Muerc M ~CA. By Kenneth S. Clark. Published by the National Burenu for the Advancement of Music. New York. 1993. F‘p. 297. “Municipal Aid to Music in Amria” has made its appearance at a strategic time. There is an awakening interest in music as a community activity. There is a growing feeling that music can and should be more widely used an an educational medium. cultural force and recrutionrl activity. With the rapid adoption of muaic an a put of the community reenation program municipalitiaare appropriating money for bands. onhdmu, choral &tiea. mmmunity singing and concert#. Mr. Cluk‘r book will be an invdwbk aid to city officials giving thought to muaic. It is not II theory of what citiem ahodd do, but a report d what cities are do-hg. In the preliminary chapters. written in a very readable style, Mr. Clark briefly outliea the growth of the pnsent movement far municipal music. gives a picture of several sucassful city muaic departmenta and at the name time giver valuable Sugeeaions about how other citiea may go and do liiwiee. The chapter on permissive legislation is a stonhow of information for those who are faced with legal difEcultiea in & tu fundc for muric. The section giving repoh on work done by typical music system is wed selected testimony from local lederJ in citia where municipal munic is carried on successfully. The whole book is based upon a rtudy carrid on by questionnaire sent out to mayom of citia with a population of 6,000 or more. The replia are listed by st#es and citiu and the reader can resdily get the factr about municipal muaic in any given city reporting. “Municipal Aid to Music” furnishes facts idand methods about a movement to demooratize music in America and should be read by all to whom this idea commends itself. T. E. Rrvms, Playpround and Rsercation As&& of Amsriccr * Sow ~SOIILE~, OF TODAY. By Grove Samuel Dow and Edgar W. Wesley. New York: Thomas Y. Crowell Co., 19M. Pp. xvi, 537. A university professor and a high school teacher have cooperated in this book on ‘‘human aasociation, its origin, development, forma and functions.’’ It is intended for the last year of the high school and originated out of a feeling that the “problems” books written for that yeu and containing discussions of economics and

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RECENT BOOKS REVIEWED 766 government as well as sociology, are not well suited for the purposes in mind. The authors think that sociology alone should be treated in the text; or rather that at least half a year should be given to sociology done. One of the ditficulties with their position ie that many insist on including both government and emnomica in the lapt year of the high school. Connequently, there being generally only two terms in a year, three subjeds are demanding separate recognition when there is place for only two. From the atandpoint of those interested primarily in government, this is unfortunate, for it dts too often in economics and sociology being placed in the last year of the high school. and in government being tacked on to American history lower down in the system. This text is conveniently divided into 6fteen chapters of something like equal length; and. with a few exceptions. each treata of a separate social problem. Among these are the influence of geographical environment, heredity, increase in population, immigration (in two chapters). migration to the cities, the Negro. the family and divorce, industrial organization, women and children in industry, and poverty. At the end of each chapter is a list of questions to stimulate study, some topics for special reports, and a wellselected bibliography. The book is well illustrated from pictures made by Lewis W. Hine. The meaningless picture of public buildings and public men seems to be absent, its place being taken by pictures of action or of conditions. Such a book will stir the interest and stimulate the imagination of any well-meaning lay reader and his first disposition is to say, "This ought certainly to be put into the schmls.” The trained educator in likely to be more cold-blooded about it and to say, “This is interesting to you because you have been OM &a1 problems for many yearn. You approach the hook with a wide experience and some philosophy. To tea& it will not. however, be the best means of ap proech to social progress. It t better to teach the youngsters more definite. comtmctive things,-such as economics and government. This is pathology and will depress and devitalize the lives of the young citizens.” Of these two views no one knows which is true. Each is a subjective impression. The leading argument for teaching sociology in the schools is baaed on the supposition that information about tbe ills of society will result in an effort on the part of the cith to hd means of aolving them. In his search for means of solving them, he will study government and his study of it will result in his learnin gthe scientific principles of its organization and reorganization. The answer to this argument is that, as a matter of fact, the results do not follow the causes as the advocates of the teaching of mere problems claim. We have been brought face to fact with the problems for generations and those who see. them have not made a serious effort to learn the scientitic principlea of government. The state of New York ha9 confronted ita sad lack of adminktrcc tive organization long enough to provide for scientific reorganization if mere wing the prob lem would bring support for improvement. It was necessary to go through the back-breaking process of tenching grown people elementary scientific principles even to provide a hope that reorganization may result. The tencher of government claima that the last year of the high school is the place to teach the principles of politibefore the mind is hardened into prejudicer and superetitions. The citizen will then later be brought clearly enough to we the problem and abuses. When he seea them, he will remember hie nimple elementary principles of scientitic at tack on them and will apply theee principles. The argument for either position h wholly (I priari and theoretical. One must talre hia choice between two theories.

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ITEMS ON MUNICIPAL ENGINEERING BY W. A. BASSE’IT pkaaing Of W.tcr .04 -8 Dh&i~kSound advice in the matter of phmbg for water supply or sewerage improvements designed to serve a district rather than a single municipality is contained in the plan recommended by Mr. Ckmens Herschel to meet the water mpply problems of the New Jersey Metropolitan Die trict. The essential fatures of the plan as outlined in the Enpnuring Nmm-Rewrd of September 10 are: (1) To mate a “Metropolitan Water Supply District of the State of New Jersey,’’ to ansist “of all municipalities wholly or partly within” 0 miles of a named point on the Jersey City water front. and a co,ynk&on of “three skilled and competent men, to be appointed by the governor, with the approval of the Senate, the commission to be authorized to supply water at wholesale to municipalities or companies within the district, and to buiid works, condemn prop erty, buy out companies, etc.; and (2) to have the State of New Jemy, if the people of the state no vote, issue ~,OOO,OOO of state bonds. not over S~O,OOO,OOO in any one year, to finance the dw trict water-works, the capital charges and op erating expenses to be annually assessed by the state authorities against each community sup plied, according to the amount of water it has taken during the year. Existing supply works of communitiu entering into the new supply scheme would be taken over by the district, with proper compensation. Municipalities within the diatrict would be compelled to take water for domestic purposes from the district unless specifically exempted from doing so by the legislature. No town now supplied by a company owning the distribution system in the town could contract with the district until it had acquired the works of the company. There is nothing particularly new in this proposal but its soundness cannot be questioned. Moreover, it is equally applicable to either sewerage or water supply projects and does away with the cumbersome conditions which have arisen in connection with the administration of the Passaic Valley Sewer in New Jersey, particularly in the allocation of the cost of that work. * Construction of Philadelphia-Camden Bridge Suspended.-Disagreement over the matter of collecting tolls from traffic that will use the Philadelphia-Camden Bridge will probably redt in a suspension of work on that structure upon completion of conalready ensrded. This situation has been brought about as a result of action taken on September 1 by the New Jersey Interstate Bridge and Tunnel CommisaiOn refmiq to participate further in the Iruthoriution of work on that project until the tolls question hps been settled and New Jersey’s right to collect tons fully recognized. The latter state favors the collection of tolls to help defray the cost of its two joint undertakings--the Philadelphia-Camden Bridge and the Holland Vehicular Tunnel at New York. The Pennsylvania legislature. however, at its session this year went on record as in favor of a free bridge. This controversy is likely to result in a regrettable delay in the completion of this important project as the Pennsylvania legislature meets biennially which means that further action in the matter will have to be deferred until 1927 unless a special session is called. It would seem that the stand taken by the State of New Jersey in this matter is by all odds the more rational and defensible one. It simply means that the burden of hncing this great improvement would be met largely by those receiving the greatest benefit from its consummation. namely, the users. in place of meeting its cost out of general taxation. Certainly no one can question the equity of collecting tolls on a bridge that is bound to carry an extensive through, as well as local, traffic. * State Legislatures as RateMakers for Public Utility Enterprises-Unintelligent state legislstion is enacted all too frequently. Fortunately, the public laws of this character are rather more stupid than harmful. However, occasionally a mensure is enacted so inimical. to the public interest that subsequent legislative action is necessary to correct the mistake made. For that reason it behooves the public always to be on guard in this matter, and the good people of the state of Massachusetts should consider carefully the merits of a bill filed by Representative Martin Hays of Brighton, Massachusetts, for introduction at the next session of the state legislature, entitled: “An act to curtail the powers of the department of public utilities.” 766

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ITEMS ON MUNICIPAL ENGINEERING 767 This act if passed would make all orders of the state commission in respect of such matters ss rates or utility financing. subject to review and approval by both branches of the state legislature. It would be di6cult to conceive of a more unwise proposal. As commented on editorially in a recent number of the Enginemkg Newhard: The plan proposed is futile and unworkable; it breaks down by its own weight and weakness. Before adopting or rejecting the advice of the commission would each of the scores of members of the two houses review all the evidence in each of 135 or 150 cases acted on yearly by the commission? Otherwise how could the memben of the legislature vote intelligently at each of the 125 to 150 roll calls? And if the members of a smsll body of commissioners, appointed solely to administer the utility laws of the state, may be subject to “skillful manipulation of highpriced attorneys.” then how about the members of the legislature? Would the legislature set up and follow standards for capitalization and earnings applicable to the entire state? If not each case would have to be considered by the legislature on its individual merits, which would include traversing all the testimony taken by the commission and possibly the holding of legislative hearings, which would mean confusion worse confounded. There are still many vexatious problems of public utility regulation remaining to be solved. However, such progress as has been made in these matters during recent years has been due to the intelligent work of the various state public utility commissions. In the event that there is marked public disagreement with the findings of the Massachusetts department of public utilities there is always recourse to adjudication of such matters by the courts. It would seem preferable to trust the judgment of a public service commission on matters relating to the public interest. rat he^ than the collective wisdom of the average state legislature. * Recommended Legislation to Ensure Structural Safety in Building.-Requirements of legislation designed to safeguard building operations and ensure structural safety, while simplifying the governmental problem of controlling these activities are outlined in a report of the Joint Committee on Structural Safety, representing architectural and engineering societies of the New York Metropolitan District. The conclusions of the committee, submitted for consideration and discussion, recommend the preparation of legislation governing the granting of building permits and regulating their use, embodying substantially the following requirements: I. The owner shall be the applicant for the building or construction permit and shall be required to acmm ny hh application for such a permit wigthe following: 1. Adequate plans and specifications pre @ and signed by a competent regurtered architect or a licensed professional engineer experienced in structural deaign, hereinafter called the designer. e. A definite undertaking executed in legal form stipulating that, if the permit is issued to the applicant, he will have all working or shop drawings covering parts and details essential to the stabdity of the building and required to sup plement the plans which accompanied hisapplication, fully checked, approved and signed by the designer; that he will place the execution of the work under the direct supervision and continuous control of the designer; and that he will further undertake, with the cooperation of the designer and by employing only competent contractore and workmen to perform faithfully the work proposed in strict accordance with the plans and specifications. in compliance with all requirements of law, and with due regard to public safety. II. Before a certilicate of occupancy is issued by a bureau of buildings, or by state or local authorities having jurisdiction, the owner shall furnish to such authorities a duly executed certificate, signed by the designer, stating that he has faithfully supervised the entire work of construction, that it has heen executed in accordance with the plans, rpecifications and working drawings duly signed by him, and that to the beat of his knowledge and belief the finished work complies with all the requirements of law and t structurally safe for the use specified. III. Failure on the part of the owner to comply with any of the above specified requirements shall be regarded ss pnsumptin evidence of a violation of law, constituting a penal offense, and shall be punishable as such. IV. If at any time after the certificate of the designer has been fled. conclusive evidence is furnished to the state licensing authorities that any statement in such certificate waa false and intended to deceive, these authorities shall immediately take the necessary legal steps to have the signer put on trial for perjury, shall forthwith have his name stricken from the list of registered architects or licensed professional engineers, and shall give their action effective publicity.

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NOTES AND EVENTS BY A. E. BUCK The Kuurra City Election.-We are informed by Not Spenxr, rwetary of the Citiins’ League of Kansas City, that former Mayor Albert I. Beach, Republican, has teen re4xt.d over Ben Joudon; hoe& and present city tressurer. The vote WM very dore; Mayor Beach’s majority being only 648. Although party names were not often referred to dwhg the camp.ign, the ken& kind of putisan spirit wu manifeat. The opposing parties became known as the “Beach group” and the “Joudon group.” The Beach group had the advantage of a fairly sudul adminiatration. It appears that this group el4 the mayor and four councilmen, while the other group elected five councilmen. The Joudon group, it seems. will have control of the council of nine, although thja is not yet certain, since the election of one wlmcilman of this group is being contested by the other group. It is repartcd that the newly elected officials are as a whole high-grade citizens. although more or less aninuted by partisanship. Prsc tidy all of them ue pledged to give the new chvter a full and fair trial. If the campaign pledges are adherred to, it is assumed that the city will have a good council regardless of wbether it is dominated by one or the other group. * Westchester and Nassau County Charters Rejected-The proposed charters for both Westchester and Nassau counties (N. Y.) were rejected at the recent election. The Westcheater charter was defeated by only about 5,000 vote& while the Nassau charter was defeated by a P to 1 vote. The rejected county charters were drafted by non-partisan commissions and were submitted to the people under an amendment to the state constitution approved in 19P1. Both Westchester and Nassau have specid problems in county government because of their large populations, their wealth and their proximity to New York City. MMY people believe that unless a more &cient government than any which an be erpected under the supervisor system is installed the two counties will some day be incorporated in the larger city. But apparently the majority of the voters had grave doubts about the type of government that would result under the proposed charters and refused to vote for them. In Westchester there was a prolonged mud heated campaign over the adoption of the proposed charter. * Ohio Amendments Ddeated.4h November S the voters of Ohio defeated the three propod amendments to the state constitution. One of these was the debt limitation amendment which sought to write into the constitution the restrictions already imposed under the Grinwold law. The amendment embodied two propsitioM: “No borrowing for current expenses” and “no bonds running longer than the life of the assetr acquired.” This amendment was criticised as being nonessential uder the existing laws. Another amendment provided for four-yeat term of oftin for elective state and munty oftids. The main argument for this antedment was that it would enable the administtive ofticerr to become more familiar with their duties and therefore to render better aervice during at least put of their term. The oppontion claimed that a four-yw term for the governor and a tw-year term for the legidstwould incresse the probability that the two branches of government would Mer politidy. with detrimental effect upon legislative action. Governor Donahey vigorously attacked thir amendment as an “office grab,” engineered by politicians for their own benefit. Generally. the amendment seems to have been regarded as *‘a makeshift proposition which did not go to the bottom of the difficulties it sought to correct.” The third amendment proposed to remove intangible property from the application of “the uniform rule”; it was generally referred to as the “classifiartion amendment.” Sine for many years this property had not been reached under the unif0.m rule. it was proposed to give the legislature power to try other methods. The ClCaJand Plain Dealer. which supportsd this amendment, says: Nothing is clearer than that modification of the old uniform rule of the 1851 constitution U necemary before anything like a soud propm

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NOTES AND EVENTS 769 of tu reviaion can be undertaken in this state. This archaic rule, designed when Ohio wm almost exclusively an agricultural state, completely blocks any program of tar reform. It is thought that the classification amendment would have been adopted if it had not been for Governor Donahey's hortiIity to it. It ran 8t~014pSt of the three rubmitted. The vote defeating all three of the amendments is interpreted as a repudiation of the Republican assembly which submitted them. * Manager Charter of Boulder, Colo., Sustained. -A recall election was held on the Boulder city manager charter on November 5, which resulted in sustaining the charter by 4U votes. The opponent8 of the charter cast about 56 votes less than they did at the previous special election, and the proponents of the charter about 1,oOO voter less. This was due to the fact that the people did not get out and vote in the election. The fight was mainly on personalities rather than on the charter. Many people lost interest in the election on this account. The Fhe system of voting seems to have been one of the main points of attack. '4 Report on Municipal Policy of Brookline, -.-A special committee, constituted early in 1W4, has completed and published a report on the municipal policy of the town of Brookline, MSM. Thir committee consisted of the modtor, the town clerk, the selectmen, and five citizens appointed by the moderator. Special mention is made of the work of Albert I?. Bigelow, executive chairman of the committee, in shaping up the final report. Thir report is devoted largely to a &tistid study of the finances of Brookline. The expenditures of the town are compared with those of other cities and towns in the United States and in Massachusetts. In the country as 8 whole, Brookline stands second in per capita cost of operating expenses, Atlantic City being 6rst. The report presents a brief snalysis of the revenues and expenditures of the town. This is fdy supported by statistical tables and charts. Many suggestions are made for increasing the working eaciency and for decreasing the opersting costs of the various departments of the town government. The recommendations are summarized in an orderly and clear-cut manner. An interesting rCsumC of the town's history is given in the early part of the report. From this we note that Brookline is almost three centuries old, The report ir concise and readable. It consists of 69 pages. supported by 57 pages of statirtid matter, 8 total of 116 pages. Municipal naearch orgunhations over the country ahodd have P copy of this report in their 6les for reference. Executive and finand officern of citia wmpueble in population and conditions to Bmokline would do well to study this report. 9 hospect Union Educational Excbange.-The Prospect C'nion Association of Cambridge. Mass.. has undertaken the operation of the first known educational clearing houae. An office is nuintained through which educational advice and vocational guidance are offered to working men and women in Greater Boston. An annual catalog is published in which are listed the evening and part-time courses of a large pup of carefully investigated schools. The catalog, just published, lists 2,300 classes and contains 147 pges. It is distributed among educators, teachers. ministers, social workers and other interested individuals. as well as to working men and women directly and through public libraries, factories, stores and offices. It is reported that many thousands of working people have already availed themselves of this service. It is finrrnced solely by its endowment, no fees being charged for its services. Its prime purpose is to bring each citizen in touch with the educational opportunity that he most needs. The result8 already attained indicate that it is a success. having been founded in 1w. The Exchange is now in its third year. '4 City Mariagens Hold Tnelfth Annul Convention.-"he city,mansgers of the United States and Canada held their twelfth annul convention at Grand Bapida. Mch., on November 17-19. C. Wellington Koiner, president of the City Managers' Association, included in his annd address a report on a recent tour of European cities. Mr. Koiner attended the third Internsr tional Congress of Cities which wan held at Paris the end of September. Round tables were conducted during two days of the convention on a number of interesting subjects. such as budget control and accountingsystems. trafficregulation. problems of the city manager in a small city, employment of outside experts by the city manager, training for the city manager profession. and units costs for measuring the efficiency of city administration. Several topics of interest

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770 NATIONAL MUNICIPAL REVIEW wen discussed at the general sessions. John N. Edy, city manager of Berkeley, Calif.. spoke on the managerial functions of the manager. The civil service in manager cities was discussed by H. W. Marsh, secretary of the h’ational Civil Service Reform League. Emily Kneubuhl, director of the City Manngcr League of Rochet ter, N. Y ., spoke on selling the city manager plan to the peopk. Sunuel C. May of the University of California outlined the progress of adminim tion in European citier. Professor May has recently returned from Europe. Power Commission of Thne States Appointed. -.4 joint power commission has been appointed by the governors of New York, New Jersey and Pennsylvania to study the trannmisaion and control of electric power in the three states and to report to the thra governors. The New York membera are: Willirm A. Rendergast of New York, chairman of the public service COID mission; George R. Lunn. commisnioner. of Wenect.dy; and Charles R. Vanneman of Albany, chief engineer of the commission. The lycw Jersey governor appointed Charles Brome of Princeton, member of the public utility commission of New Jersey; Isaac Alpern of Perth Amboy, president of the Perth Amboy Trust Company; and Robert F. Ingle of Beach Ehven, former member of the .tde board of commerce and navigation. The Pennsylvcmia members are: Philip P. Wells, deputy attorney general and chairman of the Pennsylvania giant power board; Clyde L. King, secretary of the common4th; and Morris L. Cooke. consulting en& neer and director of the Pennsylvanie giant power survey. This commission recently held an organization meeting at which Charles Browne wan chosen chairman. William A. Prendergsst. vicechairman. and Philip P. Wells. secretary. It wan decided at this meeting to ask the governors of Delaware, Maryland, Virginia. West Virginia. Connecticut and Massachusetts to appoint nqreemt~tivea to nit with the commission u observers and advisors on the attitude their states would be likely to take. development. tranmnission and regulation in these three states and to recommend legislation so that the states will be able to decide their course of action under the compact clause of the Constitution which gives the individd stater the right to enter into compacts as to tranap0rt.tion among thcmselvea, making it unnecethrt the question should come before the Interstate Commerce Commission. Suppower and itr distribution in the three states is one of the main questions that is to receive attention by the commission. The Municipll OfIlchl.-“Man that hath to do with the public business is of few days and full of trouble. “‘He cometh forth in the morning with high hopes and ere the setting of the sun of that day he hath met with many reverses and continueth not. “Yet. 0 Lord. have comparrion on the chi& dren of Thy creation that have to do with the public business. Be present and administer them comfort in time of trouble. for they pre in trouble most 6f the time.” It would be wise for every person to clip out this little bit of wisdom and luve it. It is 8 good-natured rebuke for the many critics of municipal offids who know not whereof they spe&.-Emporio acuctts. The w&&n plan8 to study the power