Major Darwin's School Lecture

Major Leonard Darwin, of London, delivered the second of his series of four lectures on "Municipal Ownership" in Emerson Hall last night, on the subject, "English Municipal Statistics. The Probability of Profit-Making by Municipal Ownership. Municipal Management."

In regard to municipal statistics, Major Darwin said that the interest on municipally governed enterprises in England rises only to about four per cent of the original value, and that municipal owners put aside only about one-fifth of the gain, which is not enough. Cities which manage their own street railways, get a lower return on their money than if the railways were rented out, the profit being eight-tenths per cent, in the former case and two per cent. in the latter.

When a city buys over a railway or gas works from a private concern, all the money placed in the sinking fund is made up by taxation. If it happens that private gas works charge more than municipal gas works, the reason is generally because they are in less densely populated districts, where the cost of maintaining mains is greater, and the profit less. The profit of private corporations is spent in remunerating the capitalists and as management expenses. When buying their plants, the city has to raise a loan, and in so doing pledges not only its own money, but also the money of its citizens. A private company pledges only its own money.

Major Darwin summed up these advantages of private over municipal management by saying that private industries are likely to produce a larger return on a given capital than municipal industries, and that a city is more likely to lose than gain in its municipal ventures.

The third lecture in the series will be given in Emerson Hall on Monday evening at 8 o'clock.