The news in this publi cation is released for the press on receipt. THE UNIVERSITY OF NORTH CAROLINA NEWS LETTER Published Weekly by the University of North Caro lina for the University Ex tension Division. JULY 2,1924 CHAPEL HILL, N. C. THE UNIVEKSITT OF NORTH CAROLINA PRESS VOL. X, NO. 33 Bdlfozlal Boardt B, G. Branaon, S. H. Hobbs, Jr., L. R. WIIsod, B. W. Knight, D. D. Carroll, J, B.BalUtt, H. W. Odom. Entored aa aecond-elaBa matter Novambor 14, 1914. at thoPostofficoat Chapel EUH. N. C., ander the actef Aagnat 24, 1111 MUNICIPAL GOVERNMENT IN N. C. XXIX-DANISH STATE-OWNED RAILWAYS Danmark owns and operates its own railroads, or at least the main line sys tem, some 2,000 miles pf trackage all cold. Seventy-live million dollars are invested in the road beds, rolling stock, terminal facilities and accessories of all sorts in the state system. The state also owns and operates the thorough fare telephone and telegraph lines. Every first-class post office is a tele phone and telegraph station. The state also owns and operates the steam ferries that bridge the water gaps in trunk line*travel and traffic, so that swift freights can go from one end of the state to the other without trans-ship ment. Express trains move without any considerable delay from Copen hagen across two straits to Espberg for the English markets, or south across twenty-six miles of sea into Germany. A sleeping-car passenger goes to bed in Copenhagen and wakes up in Ham burg or Berlin. The steam ferries, or moving railroads as the Danes call them, have solved all the difficulties of de luxe travel in Denmark. The Danes have around one hundred million dol lars invested in these state-owned and state-operated transportation and com munication facilities. It is a tremen dous enterprise for a little state one- third the size of North Carolina and with only 600,000 more inhabitants. For thirty years this brave little kingdom has been operating its own railway, telegraph and telephone lines for two distinct purposes:(l) to reduce passenger rates, freight charges, and communication costs to the lowest pos sible figure, in the interest of farmers, manufacturers, merchants, and con sumers alike; and to render these ser vices as a fundamental contribution to common prosperity in Denmark, and (2) to develop the remote and less pros perous territories of the state. The developmental purpose is as pronounced and emphatic as the commercial purpose. Left to private enterprise the remote regions of north and west Jutland, for instance, would have been dreary, sparsely inhabited wastes for long years to come. The state pene trated these regions with railroads long before there was any profit-pro ducing business in passengers and freights. For lack of such rail facili ties our Lost Colonies have languished in both life and business, and the Al bemarle counties have become tribu tary trade areas for Norfolk. While the state does not own the lines that branch out into the marginal territories of Denmark, it does own as a rule from one-half to one-fourth of their capital stock, and these subordi nate lines are operated as a part of the state system in schedules, freight charges, and passenger rates. The trains are slower on these secondary lines, the equipment is not so good as on the main lines and the rates are higher, because the volume of traffic and travel is less. But the dwellers in these remote regions are satisfied be cause they realize that without rail road facilities life and enterprise in these lonely places would be impossible. The Danes long ago realized the funda mental contribution that railways make to private enterprise on the one hand and to commonwealth development on the other. A State Service Agency Almost the only cheap thing in Den mark is freight and passenger service. The charges for both were from one- third to one-half of the charges on the German railways in 1913, and they are still distinctly less than they are today m Germany. It goes without saying that the rates are less than they are in America. The de luxe trains of Den mark, what we call through Pullman car service, are just as good as we have in America and the charges are not a great deal less. The express freight trains are another story. No kind of freight traffic is as’expensive in Denmark as it is in,,^America. And this statement applies to short-haul freights in particular. Another matter of interest is the fact that the conductors on the de luxe tr^ns are the whole show. They in spect your tickets, make down your beds, answer the call bells and gener ally serve as porters as well as conduc tors. They do not consider it beneath their dignity to serve in these multifar ious capacities. The same thing is true on the sleeping cars of Germany and France. Another thing of significance is the fact that the Danish railways were never planned to be money-making en terprises; they are and have always been service enterprises on part of the state regardless of dividends. How ever these dividends have commonly ranged from one percent to two percent annually. Danish railway dividends have twice dwindled to nothing or less in the last twenty years. But all rates have been raised of late to cover losses and insure reserves for extension, re pairs, equipments and replacements. I frequently see the statement in A- merican papers that the Danish rail ways are a failure, that the cars and road-beds are ill-conditioned and the waste enormous. True the local trains and the combination freight and pas senger trains are slow especially on the private lines, but the same thing is true on our cross-country lines at home. Otherwise I did not discover the charges against the Danish rail ways to be true. Somebody has been misinformed or is indulging in propa ganda against the state ownership of railways. Business, not Politics The railroad employees of Denmark wear uniforms, they are public offi cials, and they are on the civil service pension list. Their jobs are secure so long as they are efficient and courteous to travelers and shippers. They are in positions of honor, and manifestly the men respect themselves and the public they serve. The railway employees neither expect nor accept tips, and an attempt to bribe a Danish customs of ficer would promptly land the green horn in jail. The same thing is true in France. It is another story in Ger many of late years. Just as in the state promotion of home and farm ownership, the railway business of Denmark is business. It has nothing to do with partisan poli tics, because the Danes are firmly con vinced that politicians and politics play the very deuce with any business en terprise of the state. 1 may add that at present the direc torate of the Danish railway system shares moderately in the annual divi dends of the railroads, in New Year bonuses ranging all the way from five to fifty percent of the profits according to the rate of dividends declared. The directors receive no bonus checks if the system declares dividends of two percent or less. Where Business is Politics I am not arguing the state ownership and operation of railways. I am not saying that what is possible in Den mark and Germany succeeds in France or Italy. As a matter of fact the state ownership and operation of railways does not succeed in either of these countries. Both countries have tried it and they know that it does not suc ceed. A portion of the French sys tem is operated directly by the state. The state railway service is fairly good in northwest France under govern ment operation but it is distinctly less efficient and less profitable than in the other French railway systems that are operated by leasing companies. The state operation of railroads in America is not a hopeful proposition in my opinion, and it never can succeed in a great country like ours unless (1) our railroad business can^be taken out of,politics and immeasurably removed from the influence of party^politicians, and (2) unless railway employees from the director general down to the track gangs can feel themselves to be trusted business men conducting in a business like way a business enterprise of the government—unless rail way ^employees can esteem themselves as business men honored and rewarded in life-long jobs that depend solely on their efficiency, their faithfulness, and their courtesy. All these things are true of the pub lic servants involved in the Danish sys tem of transportation and communica BANKERS CAN HELP While the bulk of the money that the farmer borrows necessarily comes from the large reservoirs of wealth controlled by the city banks, the country banks are in more inti mate touch with the farmer and are in a position to do things for him that no city bank can do. In a small publication called The Rural Market, an editor of The Bankers’ Magazine declares that these coun try banks are doing more than their share in promoting better methods of production in their respective communities. He notes a few of the activities of some of the pro gressive country banks which be lieve that by helping their commun ities they will also be helping them selves: Financing the importation and distribution of pure-bred cattle. Promoting and encouraging local fairs and exhibitions. Developing the interest of boys and girls in better farming by or ganizing pig, sheep, calf, poultry, and garden clubs. Encouraging the keeping of some live stock on every farm and pro moting greater crop diversification. Promoting local dairying by keep ing dairy records, financing local creameries, establishing cow-testing associations, teaching better feed ing methods. Urging and financing the construc tion of silos. Arranging for regular banker- farmer conferences to discuss mu tual problems. One bank by financing the impor tation and seeding of alfalfa, in creased the number of alfalfa acres in its community from 10,000 to 13,- 000, resulting in an increased pro duction of nearly 12,000 tons, which at prevailing prices amounted to $180,000 in new wealth. The in crease in land values was estimated at $30 per acre and amounted to $120,000. The increased quantity of fded made it possible to winter some 60,000 additional sheep in the valley. And the banks, we are told, are not losing, as a result of this sort of activity; one bank in Pennsylvania as a result of two years’ community agricultural development increased its deposits 48 percent.—The Liter ary Digest. of farm enterprise in Denmark. The farmer found in his fields an extensive deposit of very rich marl. Instead of operating it himself for private profit, he took his neighbors into a good thing and the combined capital of the coop erating group was sufficient to erect the buildings to house the miners, and to buy the necessary plows, teams and carts, drags, picks, shovels and wheel barrows. With their enterprise proper ly organized and equipped, they peti tioned the prison authorities of the state for fifty able-bodied convicts, the necessary guards, and a domestic force for the prison house-keeping at the mine. Then they petitioned the state railway authorities for a spur track a mile or so in length, a shift engine, dump cars and railway employees suf ficient to serve an active mine. The state authorities lost no time in com plying with the requests of the farmer group. I found the convicts wearing no stripes, balls or chains. And I have never seen men work harder and more cheerfully. Their mine quarters were clean, their food was abundant and ex cellent, and the prison guards, as I re member it, were only four in number. If any one of them had a gun I did not see it. My comment was. This is the first time I ever saw farmers bunch up and beat the lumber and coal mine companies in this sort of game. And by the way, the guards were state prison officials of a manifestly superior type. No company of any sort is per mitted. in Denmark to have its own cheap guards and to stand between the law and its penalties, as in more than one state of the American Union. The aim of these farmers, said the Danes who accompanied me, is first of all to get a rich quality of lime for their own I fields at the lowest possible cost, and I then with the help of the railroads to i sell it over a wide area at a minimum • price to outside purchasers. The lim- ■ ing of fields is a universal practice in ' Denmark. Our marl deposits in East- i ern North Carolina although quite as I rich as those of Denmark have prac- 1 tically no commercial value. ! It is an extremely rare thing in Den- ■ mark, for a farmer to surround an ad- I vantage and to squeeze his neighbors j to the limit.—E. C. Branson, Copen hagen. tion. If they cannot become true in America we shall be wise to leave these service agencies to private capi tal and its employees, no matter what it costs the public in the recurring damages of repeated wars between railway managers and railway em ployees. Stifling Agriculture Meanwhile no matter how rapidly American farmers multiply their vol ume of farm wealth year by year, by cooperative effort or otherwise, they are likely to be ground to powder be tween the upper and nether mill stones or railway dividends on the one hand and unionized labor on the other. Farm cooperation succeeds in Denmark becau.se the state owns and operates the railway, telegraph and telephone lines, and extends these services to business in general at the lowest possi ble rates. Cooperative enterprise and private business alike would have had a dog’s chance in little Denmark under any other conditions. An Illuminating Experience One morning in a motor car ride in North Jutland we came within sight of a mine, the first mine I had seen in Denmark. What is it? I asked. It is a marl mine, was the answer. As we walked across the field toward it my host told me the story—the usual story j MUNICIPAL GOVERNMENT i The unprecedented urban growth in ; North Carolina due to expansion along ; industrial lines has been the means of focussing attention on the antiquities in the forms of municipal government now in practice in this state, says a treatise on Municipal Government writ- j ten by T. Glenn Henderson, Greens boro, and I^uxton Midyette, Jackson, for the Department of Rural Social Economics. I When Washington was inaugurated, ' only about one-thirtieth of the popula- ; tion lived in cities of over eight thous- ' and. In a little more than one hundred years more than half of the population ' of the United States have become city- j dwellers. In North Carolina at the 1 present time, more than thirty percent I of the population live in urban or in- j corporated areas. Only, recently has I any effort been made to bring munici pal government into conformance with the expansion of the cities, i There are four principal types of city government in the United States: (1) the decentralized plan; (2) the com mission plan; (3) the centralized may- ' or-council plan, and (4) the t ity-man- ' ager plan. Three of these types are ; to be found, in the main, in North Ca- . rolina—the decentralized plan, the commission plan, and the city-manager ' plan. An examination of the funda- : mentals of each of these systems is ' necessary to a correct understanding j of the various problems which are oc- I cupying the thought and effort of polit ical reformers. Mayor-Alderman Plan In the decentralized plan or mayor- alderman plan, the mayor is elected on a partisan ticket among numerous oth er officers, and a city council made up from representatives of the various wards. Its supporters claim that the large council, elected by wards, assures representation to every section of the city; and that autocratic rule is elimi nated because the mayor must share the appointive power with his council. On the other hand, ward lines are pure ly arbitrary divisions of the city and I as such start log-rolling among the various wards for special favors. Fur ther, the voter is confusedjbyjthe large number of officials to be voted upon; administrative responsibility is diffused because of the confusion as to whether the official is responsible to the mayor or the council, and there is no minority representation. Commission Plan In the commission plan, the people elect a number of commissioners, usu ally three to five, who are responsible both for legislation and for administra tion. One is named mayor. Sitting together they pass ordinances and de termine administrative policies while the work of the city is.^divided into from three to five departments with one commissioner heading,'each. Pro ponents of this plan argue that all of the affairs of the city are , centralized in the hands of a single commission which can easily be watched by the voters while the election-at-large se cures minority representation and a high type of official. On the other hand, commission government is a three- to five-headed administration, and administrative policy, therefore, is liable to be a series of compromises. It would not be unusual for the head of a department to find himself constantly over-ruled by the vote of other mem bers. One of two results therefore nat urally follows: either friction develops among the members, or each commis sioner is permitted to follow his own course without consideration of other departments of the city as a whole. In further support of their stand, opponents of this plan mention the possibility of departmental bar gaining; the impossibility of se curing the best citizens for the salary usually paid, and the mistake in plac ing the spending and taxing functions in the same body, a policy which they contend is conducive of extravagance. Mayor-Council Plan In the centralized mayor-council plan the mayor is elected by the people; no other administrative officials being elected except perhaps the auditor or comptroller. Here confirmation of ad ministrative appointments by the coun cil is not required. The administrative services are organized into five or more departments, each headed by a director appointed by and responsible to the mayor. The advantage of this plan is the.mayor’s inability to pass the buck. The opposition advances that the mayor is usually a politician, elected because of personal popularity or because he stands for certain general policies or plans of public improvement. Rarely is he a good administrator. Usually as soon as he learns something about his job his term expires and another man new to the job is.elected. City-Manager Plan In the city-manager plan a small council is elected whose functions are confined to legislation. It appoints the city-manager who can be removed at any time. The city-manager is a full-time executive head, chosen upon a basis of experience and ability and I not because of political considerations, j The contention most often met in ob jection to this plan is that it places too much power in the city-manager. Its ^ supporters point to the fact that under ; it there is no division of-‘function or re- ; sponsibility; that competent men are I secured for the council since only part- j time service is required; that it cannot be argued with justice that too much power is placed in the hands of the city- manager because his duties are purely of an administrative nature; that each manager’s success and hope of promo tion to a higher salary or larger city depends upon his results, and not upon political favors or political service, thus placing a premium on efficiency, j The f(»llowing North {Carolina cities I have placed this plan in “operation; [ Chapel Hill, Durham, Elizabeth City, ' Gastonia, Goldsboro, Greensboro, Hen- ; dersonville. Hickory, High-JPoint, Mor- j ganton, Reidsville, and Thomasville. t In conclusion the authors say that I the city-manager plan is not perfect. They do say with assurance, however, that it is the best plan of Municipal Government so far devised.

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