1931-09-09 — Page 7

WEDNESDAY, SEPTEMBER 9, 1931.

HANDLING

PUBLIC UTILITIES

How Municipalities Get Along.

HONG KONG'S POSITION.

Facts Placed Before Rotarians.

The respective virtues and shortcomings of public and private enterprise as applied to the management of public utilities were dis- cussed by Mr. L. C. F. Bellamy' in the course of an address to Rotar- lans at the weekly tiffin yesterday.

Mr. Bellamy touched upon the question of a Municipality for Kowloon, and in this connection gave examples of the results of municipal enterprise in other parts of the world,

The Hon. Mr. Shenton, in reply, referred to the excellent work He done by the present system of Government in Hong Kong. urged that full provision had been made for the recurrent needs of the Colony, and gave it as his opinion that the existent form of Government could not well be bettered. Mr. Shenton also referred to the excellent work done by private utility companies in Hong Kong.

CASE FOR AND AGAINST.

Mier quoting excerpts from and a British Municipal transport leading articles in the local news, official, who all had to read papers papers in connection with the lack pro-Municipal working and were of public bathing facilities in the followed by papers by the propon Colony, and the proposal to provide ents of private ownership of these open air bathing pools, to be filled; three businesses. Mr. Bellamy pro- from the sea, ceeded:---

I have a further title to address you the subject I have chosen for the reason that have spent, about twelve years in Municipal service. As a chief offieint for the, majority of that period I saw a lot, from the inside, of what I will.call

My late father was the British munidad transport representative and he kindly took me with him.

Although I was very young at the time I listened attentively to the arguments both for and against public ownership.

Two Points of View, Both points of view—as express the political working of the Munit by the various delegates-struck cipal machine and it is upon that me as tantalisingly convincing, with feature that I want chielly to speak, the result that ever since that New York Convention of 1903 1 have been keenly interested in the pros and cons of Municipal Socialism.

Municipal Musings.

So far as America is concerned we all know that municipal trading has made little or no headway.

the

THE

concerns

CHINA SMA

Case of Bournemouth. To show that Mr. Morrison's

treal Sitings or apparatus for Britain the munisipality adminis- lighting, heating or motive power. trates such departments as water, Thla chusé was, of course, rejected | drainage, education, baths, purks views on public ownership of urban in the interests of the private and gardens, haulth, highways, mar-passenger transport are shared by trader, who will not be prepared to kets, fire, sewage farms and abut constantly Ricreasing sumber of et on hire-say, an electric oven-toirs etc. and the majority of people people in Britain I need only re- as cheaply as the Bellas: Corpora- consider that this is as it should be port a signifkanc. incident relating tion would have been prepared to When, however, it comes to trading co Bournemouth. On February 3 do.

like transport, gas and last at a meeting of the Bourne- Just as Ulster has its own House electricity there is a sharp confict month Town Council a letter was of Commona, so has the Tale of or opinion. These enterprises are read from the Hants. &Dorset Man, but in the latter place it is trading concerns, and I can think Motor Services Ltd.. in which that called the House of Keys. This of no better topic of discussion in Company expressed its willingness. very live body recently rejected a a debating society than that of to negotiate with the Town Council Bill which aimed at giving a private whether these urban public utilities with a view to the acquisition by Company the

operated by the rate the company of the whole, of the electricity supply should be rights for the whole island. The payers for the ratepayers or by transport services operated by the House of Keys not only rejected the private, enterprise. To what ex Bournemouth Corporation on terms Bill but went so far as to threaten tent are municipalities justified in intented in an accompanying letter. the discussion, the Mayor to pask taxation until the pledging the credit of their rate Darag

no Governor of the Island had intro- payers in embarking on trading said: duced a Government B providing schemes which may be hazardous for electricity supply to the entirely and which could be left to private in the hands of the Government, companies?

How is that in Liverpool and Sheffield the gas undertakings are

"Do you wish to hear

the terms of the offer, or will you settle it as a matter of principle?" To this there was an overwhelm- When I was at Home last year I had the pleasure of meeting Mring chorus of "Principle" and by Council re- in the hands of private enterprise, Herbert Morrison, the then Minis large majority the whilst in the equally large cities offer of Transport, who is regarded fused to have the terms read. The Manchester and Leeds these under- in Parliamentary circles as the one Bournemouth municipal transport takings are run by the Municipali-outstanding success of the recent undertaking is, therefore, not for tice?

Labour Government. In a speech suis on any terms.

on October 10 last What advantages are enjoyed by at Landudno

Much as some of us may deplore of the citizens Enstbourne and Mr. Horrison said:

this uncompromising attitude on Torquay, where, the electricity un- "I am convinced that if Social- the part of the Bournemouth Town dertaking is in the hands of the istic proposals are put forward in Coutell it is as well for us to re- Manicipalities, over the citizens of the way that they are sound on eognise that Mr. Morrison's philo- Bournemouth and Falkestone, where business grounds, that they are sophy regarding municipal owner- the electricity worka pre owned by common sense, that they represent ship of tracing undertakings has a. Companies?

obviously the pubile interest, then huge number of adherents in the thoge proposals are 80 obviously old country to-day. the right thing to do that It Local Government System. would be impossible for them to| The late Sir Henry Campbell- be opposed without opponents Bannerman once said "Good govern- minning the risk of making them ment is no substitute for self- selves ridiculous.

government" and Mr. P. A. Harris, "Collectivist policy for a huge M. A., M.P, in his book "London and area would not be of metropolitan its Government" saya!-- interest only; it would be of nullonal interest, as it would es tablish a new und successful; machinery for the management of collectivist undertakings."

Is the urban passenger transport business in Bristol and Norwich- where it is in the hands of com- panies-inferior to the Municipal system of Cardiff and Hall?

Productive Industry,

'Thick-Skinned Councillors, Town Councillors require to be fairly thick-skinned. There are times when a party in general and a few of the individual Councillors. in particular are the objects of the most severe criticism, not to say anfair abuse. The result is that men of too refined. as upbringing

Mr. Morrison then referred to shiink from the publicity which

ublic life incurs, and it follows the Road Traffic Act of 1930 and that there are a large number of said that it was, in reality, a mea men in almost every town at home sure of economic and industrial who would make excellent town reconstruction and that it incor councillors but who refuse to em- porated an important instalment of bark on a life of useful service to Municipal Socialism. Mr. Morri the community because of the in-son's peroration was as follows:- evitable publicity of. Town Council work.

It is said that the Marquis of Ripon when Secretary of State for the Colonies-was in favour of Hong Kong having a Municipal Council but that his successor in office Mr. Joseph Chamberlain-

There are, for instance, at least would not hear of it, and the then 75 transport undertakings in Great Governor, Sir William Robinson, re- Britain which are operated by ceived from. Mr. Chamberlain municipalities, whereas I know of "rap over the knuckles" because he only three-Detroit, San Francisco U.S.A. In had sought popular, opinion by and Seattle-in means of a plebiscite as to whether Detroit the revenue barely meets there should or should not be an the, cost of operation, in San Fran Untfficial majority on the Sanitary cisco the voters recently turned down a proposal to extend, further municipal ownership and operation.

In Wigan the municipality con- In Seattle the fares are as high, as

trols, all three undertakings: As a anywhere in the country, yet service Lancashire man I hesitate to aug- is said to be unsatisfactory, and taxpayers are confinated with thest that perhaps the average Wigon tradesman in better qualified, for the administration of trading con- ecrna than, councillors versed In Greek and Roman literature."

Toard.

Since that time residents of lung Kong have probably came to the conclusion that a Municipal Council for Island matters is quite unneces sary There are, however, many who consider that a representative body of men constituting a Kowloon Municipal Council would be a good thing, and would be a great help to the Government by relieving il of certain domestie and parochial Kowloon mutters. One of the great dangers, however, would be the temptation to a zealous and enter prising Council of embarking on Municipal trading which might prave unremunerative.

In 1903 there was hold in New York a National Convention on Public Ownership of essential urban

utilities like water, electricity, gas and transport, ete. Amongst those who attended that Convention were a British Municipal electricity offi- cial, a British Municipal gas official

necessity of paying for a substan tial deficit.

going

of which

America. js. however, ahead rapidly on Municipal air- ports, Up to January 1 last, 1,113 airports had been established in 549 were the U.S.A.. Municipal and 564 Commercial.

Recent Legislation.. Let me quote two recent itens of legislation-one case for the pro tection of private enterprise and the other in favour of bureaucratie control.

The Ulster House of Commons

This may explain the extraordin- ary municipal position of Oxford In 'Oxford the vis-a-vis Wigan. trading concerns, gas, electricity. and Transport are monopolies the hands of private enterprise.

in

Ubiquitous Town Clerks. The chief person in a British town' is the Mayor. Those gentle-

who aspire to be men, however.. Mayers of Kowloon must not trangime that they in turn-are going to rule the Kowloon roost if and when a municipal council in Kowloon becomes an accomplished

fact.

"The industries of the country must be made effective instru ments of production. They must be socialised where that wal economically and socially possible, and where i was not pos sible the machinery must

I

up, not

it

is

to

"The English system of local boen built government has

necessarily because. always the best way discharge public services. but because on balance, it is best for people to assume responsibility through their re- presentatives for the manage- ment of their own affairs" In a recent address before the Institute of Transport Sir Lynden Macassey, K., said:--

"All services of public utility, ag, the supply of gas, water, dectricity and transport must, for

of Europe this conclusion

the sake of efficiency, 'be monopolies and, further, for the protection of the public, con- trolled or regulated monopolies.": Sir Lynden Macassey then pro-) be prepared so that a Labour ceeds to point out that on the Con- Government of the future tinent could Anish the work that was arrived at many years ago, but. had been begun. The nation had thut Continental opinion found to get its living, and its indus itself irresistibly driven to the tries must be efficient and well further conclusion that both the organised. Gulded as they were ownership and operation of these. by Socialist principles and in public utilities should be in public spired by socialist idens, they hands-those of the state or the must make sure that what they municipality.

did was economically sound and Only where there appears to be. in the interests of the nation at considerable financial risk attaching a whole."

to the operation of gas, transport Those are not the theories of or electricity undertakings do our dreamer or a visionary philosopher. Continental friends approve of pri- They are the convictions of a man vate enterprise stepping in. who, until a few weeks ago was ori

The British Viewpoint. in Britain it is different-in fact with seats in both the Cabinet and a generation go we were of much of His Majesty's Ministers of State the Privy Council. He is also at the same opinion us America still that these points-namely, energetic, forcefal and exceedingly is on able man of affairs, and one feels individual initiative and Personal his push should be given free rein und bound to carefully consider views and to try to detect the de- that this is possible only through fects (if any) in his arguments private enterprise. before rejecting them;

Arguments Criticised.

From a transport point of view

The man upon whose advice every recently passed their Electricity Committee of the Corporation must, Supply Bill, but by a large majority to a large extent rely, is the Town rejected the clause which would Clerk. My close association with have empowered local nuthorities to two very able Town Clerks has, provide, sell or let on hire any eler- perhaps, given me too high an opin- ion of Town Clerks generally, but my experience has been that the

I put this generalisation, last year, Mr. Morrison's opponents declaro to the test. I visited New York, Town Clerk is always aloof from politics, never makes

a public that economic soundness and social where all the urban transport is in speech but nevertheless, runs theism are incompatible and irreconcit the hands of companies, and Berlin, Municipality after the manner of a able. Mr. Morrison, however if where it is all in the hands of the captain running his ship. Although, you told him this-would smile a Municipality. Although the best nominally, the chief servant of the very engaging amile and reply that motor buses I saw on my tour were Corporation he is, In fact, the Cor he only advocated the socialisation operated by private enterprise, the

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Wis best tramcats were run by a muni There are, however, exceptions,

cipality. But not in either New I will give you # and most Yorkshiremen know the

con York or Berlin. Both classes of is example. There story of the late Sir Charles Wilson, crote

vehicle were in London. town in Bedfordshire leader of the Leeds City Council, on small

Municipal Councils--like indivi- the occasion of Leeds promoting a named Luton in which there duals often do unwise things, but Bill Parliament, for the purpose is a very small and unprofit it is on very rare occasions that of extending the City boundaries.

able tramway. This was until they do disgraceful things, and only Sir Charles was in the witness about 1920-operated by a company, one such case has come within my chair in a Committee room of the when it was bought out by the experience. This happened in a House of Commons, and he kept municipality. After ten yea corporation which I was serving, anying Leeds wanted this and Leeda operation, however, the mun and concerned the Chief Constable, considered that and Leads demand-cipality rightly came to the co who was improperly dumissed by ed so and so. Sir Charles was n clusion that the place was too small, the Watch Committee. very partly gentleman, and suddenly for trams, and they entered into

There followed a Home Office en eminent counsel who was cross-negotiations

Pilsener, German, “Flying Zebra" brand per East quity which resulted in the Home examining said:" "Tell me Sir ern National Omnibus Com Secretary ordering the Municipality, Charles, who is Leads?" To which pany, who made quite to reinstate the Chief Constable.

under- cama the startling reply "I am good offer for the

Council Personnel. Liceds" "Then let us hope," aald taking on condition that the muni A tremendous lot depends on the counsel: "that the Leeds boundaries cipality entered into an agreement personnel of a town council. In will NOT be extended." But they not to institute competitive transcorea; of towne, and particularly in were agament

port for 21 years.

cities ke Birmingham, Manchester Whether in the misty futures the Luton Corporation, and Glasgow etc., in addition to a there will ever arise in the Kowloon possess only theer, tram number of ignorant and Inexperi Town Council a man who will say cars, and the track mon enced people, the city council je with conviction and confidence. "Fly single line with passing privileged to count amongst its am Kowloon, one cannot say, but plates, the offer was accepted members a considerable proportion should this, ever come to pass it will subject to the consent of the Mi of firat-class business man who can be a red-letter day for Kowloon. Isten of Transport-Mr. Morrison be relied upon to do all in their The next best thing, however, would his however, refused his consant power to ensure that sound business be a strong, and capable Town Is this in the interests of the Luten economics are observed in all muni- Clerk

cipál transactions,

Conflict of Opinion.

In most large towns in Great

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One cannot say, without further particulars and details.

(Continued on Page 11.)

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