It is pertinent to ask whether any general cleavage of classes of labor here indicated will continue. Probably the thoughtful will be inclined to doubt it. Except in the South, the native farmer is everywhere showing unusual signs of restlessness. With the same capacity and Anglo-Saxon spirit of enterprise so marvelously displayed by his fellows who have not followed agriculture, he desires larger returns for his life. In consequence, the census shows that the trend of the more energetic from farm to city is increasing. Clearly such a movement will tend to decrease native supremacy even over the soil. On the other hand, the greatly increased volume of immigration (often stimulated artificially by the transportation companies) and the racial characteristics and quality of the newer immigrants create new problems, in the solution of which the past offers little assistance. The experience of the native white element of the nation may once more illustrate the historic fact that through the ages men have often set in motion events which, once started, they could not control. Furthermore, it is possible that the religious convictions of an increasing foreign element may create problems not before en

countered in the United States. At the outset the population of the Republic was distinctly Christian and mostly Protestant: moreover, prior to 1880 immigration (except from Ireland) tended to increase the Protestant element. Since 1880, however, immigrants (who have arrived in rapidly increasing numbers), have been principally Roman Catholics or non-Christian (Hebrew). Religious freedom is so universally regarded as the corner stone of American liberty that no attention whatever is paid to the religious beliefs of those who seek citizenship in the United States. The fact should not be ignored, however, that the habit of thought and public policy differ decidedly in the Roman Catholic countries of Europe, compared with the Protestant countries, and it is to be expected that a large accession of Roman Catholics and Hebrews will exert an increasing influence in the United States.

From this excursion into national mighthave-beens two facts of vast significance have developed: Immigration is imperatively needed to perpetuate the population of the United States; immigration contributes the distinctively industrial element of the nation, and has brought supremacy in all the arts of peace.

THE student of municipal affairs knows that the German cities, as a rule, are well governed, and he also knows that their so-called public utilities are, on the whole, successfully managed under municipal control. In making this statement I am fully mindful of the fact that many American newspapers and a large section of the American public, through the entirely misleading reports published by certain representatives of corporations, residing in London, have been made to believe that municipal ownership in Europe is a failure. But, on the contrary, as I shall endeavor to show in this article, municipal ownership of street railroads, at least, so far as Germany is concerned, is a decided success, on the whole. Then, again, there are some people in the United States, who, while admitting that European cities are faring well under municipal ownership, nevertheless maintain that conditions in the United States are so entirely different as to prevent equally efficient management here. The only answer that can be made to this assertion is the statement that before municipal ownership was possible German cities had to face, and are still facing, difficulties which no American city has had to meet. To cite only one instance, -as many of the German cities were walled and have narrow streets, the introduction of rapid transit was not an easy matter. So far as the establishment of electric light, water, and gas plants is concerned, the conditions which had to be met in Germany did not differ materially from those which confronted American cities. This is particularly true of Berlin, which is more like an American city than any other municipality in Europe.

Moreover, as in America, German cities have been greatly handicapped by extended franchises which they granted to private companies for a long term of years, and this is particularly true of Berlin. To note only one instance, the plan of Berlin to build its own street-car lines was hindered by the Grosse Berliner Street-Car Company, which succeeded in obtaining from the Prussian Government an extension of its concession,

thermore, as in America, there has been made

an attempt to obtain extension of franchises by influencing members of municipal councils. While there is no proof that, for example, in Berlin certain members of the city council have been bribed, it is significant that recently some prominent aldermen connected with banks holding stocks in the street-car company have declared in favor of private operation, and in opposition to municipal ownership.

PRIVATE AND MUNICIPAL OPERATION OF STREET CARS IN GERMANY.

The necessity for better service became apparent when street-car companies asked permission to change from horse to electric traction. While originally most of the German cities were content to grant franchises to private companies without a question of municipal management, later on they decided to operate the lines themselves. The greatest difficulty, however, which confronted these cities was how to meet the heavy indemnities demanded by private companies for their property under unexpired franchises. But, in spite of this fact, and while it must be admitted that in some of the German cities public utilities either do not yield an income or are operated at a loss, on the whole it can be maintained that they are successfully conducted under municipal operation. A careful investigation also does not show that the service given both by the city. and private street-car companies is so much worse than that given in American cities. If rapid transit in the sense in which it is used in America is unknown in Germany, it is due more to the fact that things are done more deliberately in Europe than they are in the United States. In Germany, as in other countries, the question has also received consideration whether municipalization will increase the number of employees of a city, whether the cities will be compelled to pay higher wages, or to contribute more to the support of the institutions for workmen's welfare, an important phase of German industrial life. It has, however, been

According to the latest reports the following German cities own all or a part of their street-car lines: Königsberg, Graudenz, Berlin, Breslau, Nauemburg on the Saale, Schleswig, Münster, Bielefeld, Frankfurt on the Main, Erfurt, Düsseldorf, Barmen, Mülheim on the Ruhr, Solingen, MunichGladbach, Cologne, Nüremberg, Bonn, Trier, Munich, Weimar, Schweinfurt, Freiberg in Saxony, Darmstadt, Freiburg in Breisgau, Mannheim, etc.

BERLIN'S CONTRACT WITH A PRIVATE COMPANY.

The chief street-car line of Berlin is known as the "Grosser Berliner Strassenbahn-Gesellschaft," and practically controls the street-car traffic of the German capital. This company was originally formed by an American citizen, Mr. Hermann Kreismann, a former American Consul-General, who introduced the first horse cars into the city. While I am free to admit that the service of the Berlin street-car company is as good as that of any similar concern in Germany, its system is by no means perfect. The seats on its main lines are not comfortable, cars are not run as frequently as they should be, and the connection from certain parts of the city, particularly to the west, is often inadequate. No transfers are given. It is, how ever, only fair to say that the company is somewhat hampered in its work by unreasonable police restrictions. For example, the restriction whereby only a certain number of people are allowed to be in a car is certainly a good one, but becomes absurd when there are not enough cars running to meet the demands of the traffic.

The contract agreed upon between the city of Berlin and the street-car company, in 1897, and renewed in 1900, was, in the main, as follows: Its most im

any year in which the net proceeds exceeded those of the year when the contract was made. The municipality reserved for itself the right to regulate the fares, the company not being permitted to charge more than 10 pfennigs (21⁄2 cents) for each trip. The pavement adjoining the rails must be kept in repair by the company. For the welfare of the employees a provision in the agreement was inserted requiring that pensions must be paid to them when they become incapable of earning their daily bread. The municipality is also entitled to enter into any contracts made by the company with third persons and to profit by the patents and licenses acquired by them. This contract between the city and the street-car company expires in the year 1919.

MUNICIPALIZATION OF RAPID TRANSIT IN BERLIN.

While the city of Berlin was originally not inclined toward municipalization, it was moved to adopt this policy by the action of the Grosse Berliner Street-Car Company. For even soon after the above-mentioned agreement was made the company had bought up the stocks of the small tramway companies running to the suburbs, and virtually absorbed them. Therefore, in order to circumvent the influence of the company it was decided to buy up the greater part of the shares of the private tram-line running between Berlin and Treptow, hoping thereby to gain some experience in the line of municipal operation. It was also resolved, in 1900, that in future all new street-car lines should be built by the municipality. In making this decision the city council was well aware that under municipal management it would not obtain greater profits. Financial considerations, however, were subordinated to the public welfare. Soon afterward, much to the surprise of the inhabitants of the German capital, the Prussian Minister of the Interior, without consulting the city authorities, extended the franchise of the Grosse Berliner Strassenbahn Company until 1949. He was moved to take this action on the ground that, according to the Prussian Small-Railroad law (Kleinbahn-Gesetz) the right of extending a franchise was the exclusive prerogative of the state. The Reichsgericht, the highest court of Germany, however, sustained the city of Berlin, so that it now has the right to build its own lines.

Apparently unmoved by this rebuff, the Grosse Berliner Strassenbahn Company presented another proposition to the city of Berlin. On condition that its franchise was extended, it expressed its willingness to build a subway, costing millions, to run through Leipzigerstrasse and to the Spittelmarkt, two chief streets where its street cars are now running. The magistrate and city council, however, declined to accept the proposition, for it was maintained that it was submitted only to increase the value of the stocks of the street-car company on the Bourse, and, what is more, to compete with the project of the Siemens subway, which has since obtained a franchise from the city to extend its line from the Potsdamer Platz to the Spittelmarkt. But since this controversy was precipitated the Grosse Berliner Strassenbahn Company has made strenuous efforts to win the favor of the suburbs. It recently offered the suburb of Pankow to extend to that place one of its lines, and to pay the cost of paving between the tracks. It also agreed after sixteen years to turn over to the community 10 per cent. of its net profits. For a term of twelve years the company, which heretofore has always demanded guaranties for the street-car extensions, is willing to pay 2 marks (48. cents) for the running meter (39.37 inches) of single track, and 4 marks for the double track. In return for this the company desires a franchise until 1949.

BERLIN'S SUBWAY RAILROAD.

In 1895 the city made a contract with the firm of Siemens & Halske to build the first underground railroad. Into the municipal treasury was to be paid a sum much less than that imposed on the tramway companies, but the city authorities reserved for themselves the right of purchasing the concern at a price twenty times the amount of the net profits after thirty, forty, or fifty years. Since then, as has already been stated, the city has granted Siemens & Halske a franchise to extend its line from Potsdamer Platz to Spittelmarkt, Alexander Platz, and Schönhauser Allee. This contract will last as long as the original line continues, that is, until the year 1987, although the city is entitled to buy the line at the end of every thirty years. That is, it will have this right for the first time in 1927. The city has reserved the same right for the new extensions which the underground company will build. It is also agreed that if Berlin buys the line before

added to the capitalization. As the whole enterprise in 1987 is left to the city, the price of purchase from 1947 is reduced proportionately. The Berlin underground also agreed to pay 2 per cent. on a yearly net income of $240,000 to the city, and an increased percentage on a larger income. Moreover, the company agrees to pay to the city in the years in which its income is above 6 per cent. of the invested capital 50 per cent. of the surplus. The company is required to run its trains every five minutes and during the hours of the heaviest traffic at the rate of three trains every ten minutes up to midnight.

THE OLD BERLIN ELEVATED.

The Prussian state is now seriously considering the electrification of the Stadtbahn, the elevated belt-line running around Berlin. The system to be used has not yet been chosen, as the state is now closely following the building of a similar line which is now being laid between Hamburg and Altona, to be opened next year. The traffic on the Stadtbahn, which in the first years of its installation was very remarkable, since the building of the surface line and the underground has decreased somewhat. But lately it has again been engaged to its fullest capacity. The electrification of the Stadtbahn will cost about $12,000,000, or about $1,920,000 per kilometer.

A HANGING RAILROAD.

A private company has asked Berlin for a franchise to build a hanging railroad (Schwebebahn) to the suburb Rixdorf. A similar line is now in operation for a distance of about thirteen kilometers at Elberfeld, running across the River Wupper. The company claims that the construction of such a line will be much cheaper than other systems. It is proposed to run these trains every five minutes, and in the early morning and evening hours every ten minutes. It is believed that such a line would do much to prevent the streets being torn up and defaced, and it is proposed to build the depots and viaducts in such a way as to conduce to an artistic appearance.

MUNICIPAL OWNERSHIP OF STREET CARS IN OTHER GERMAN CITIES.

Probably more than any other German municipality the beautiful city of Breisgau, Baden, in southern Germany, believes in the principle that public utilities belong to the

dition of the personnel need not invariably reduce the income of a municipal enterprise, or limit the usefulness of an undertaking, economically considered. On the contrary, it has been found that by increasing the wages of the employees the money spent for this purpose is not lost, but is again expended in local business transactions, thereby benefiting the business men of the city. The private undertaking, on the other hand, receives no equivalent for the reduction of its surplus, which it may even send to foreign countries, and thus withdraw from communal life the money which should be consumed at home.

According to the latest reports the following German cities own all or a part of their street-car lines: Königsberg, Graudenz, Berlin, Breslau, Nauemburg on the Saale, Schleswig, Münster, Bielefeld, Frankfurt on the Main, Erfurt, Düsseldorf, Barmen, Mülheim on the Ruhr, Solingen, MunichGladbach, Cologne, Nüremberg, Bonn, Trier, Munich, Weimar, Schweinfurt, Freiberg in Saxony, Darmstadt, Freiburg in Breisgau, Mannheim, etc.

BERLIN'S CONTRACT WITH A PRIVATE COMPANY.

The chief street-car line of Berlin is known as the "Grosser Berliner Strassenbahn-Gesellschaft," and practically controls the street-car traffic of the German capital. This company was originally formed by an American citizen, Mr. Hermann Kreismann, a former American Consul-General, who introduced the first horse cars into the city. While I am free to admit that the service of the Berlin street-car company is as good as that of any similar concern in Germany, its system is by no means perfect. The seats on its main lines are not comfortable, cars are not run as frequently as they should be, and the connection from certain parts of the city, particularly to the west, is often inadequate. No transfers are given. It is, however, only fair to say that the company is somewhat hampered in its work by unreasonable police restrictions. For example, the restriction whereby only a certain number of people are allowed to be in a car is certainly a good one, but becomes absurd when there are not enough cars running to meet the demands of the traffic.

The contract agreed upon between the city of Berlin and the street-car com1897, and renewed in 1900, pany, in was, in the main, as follows: Its most im

portant clause guaranteed to the community the sum of 8 per cent. on the gross receipts for any year in which the net proceeds exceeded those of the year when the contract was made. The municipality reserved for itself the right to regulate the fares, the company not being permitted to charge more than 10 pfennigs (21⁄2 cents) for each trip. The pavement adjoining the rails must be kept in repair by the company. For the welfare of the employees a provision in the agreement was inserted requiring that pensions must be paid to them when they become incapable of earning their daily bread. The municipality is also entitled to enter into any contracts made by the company with third persons and to profit by the patents and licenses acquired by them. This contract between the city and the street-car company expires in the year 1919.

MUNICIPALIZATION OF RAPID TRANSIT IN BERLIN.

While the city of Berlin was originally not inclined toward municipalization, it was moved to adopt this policy by the action of the Grosse Berliner Street-Car Company. For even soon after the above-mentioned agreement was made the company had bought up the stocks of the small tramway companies running to the suburbs, and virtually absorbed them. Therefore, in order to circumvent the influence of the company it was decided to buy up the greater part of the shares of the private tram-line running between Berlin and Treptow, hoping thereby to gain some experience in the line of municipal operation. It was also resolved, in 1900, that in future all new street-car lines should be built by the municipality. In making this decision the city council was well aware that under municipal management it would not obtain greater profits. Financial considerations, however, were subordinated to the public welfare. Soon afterward, much to the surprise of the inhabitants of the German capital, the Prussian Minister of the Interior, without consulting the city authorities, extended the franchise of the Grosse Berliner Strassenbahn Company until 1949. He was moved to take this action on the ground that, according to the Prussian "Small-Railroad law (Kleinbahn-Gesetz) the right of extending a franchise was the exclusive prerogative of the state. The Reichsgericht, the highest court of Germany, however, sustained the city of Berlin, so that it now has the right to build its own lines.