New Bedford, Mass.

It has always been my policy during my service as Mayor of the City of New Bedford to carry on, weather permitting, all construction work on the streets for which sufficient money could be obtained. This policy will be maintained, war or no war.

I appreciate your suggestion that during the stressful times incident to the European war it is desirable, if the money can be raised without additional burden to the public, to carry on as much public work as possible, and I am in sympathy with this view of the situation.

CHARLES S. ASHLEY, Mavor.

Utica, N. Y.

The cities of America can perform no greater service to their people than to keep construction work going and to go ahead with contemplated new work. The only real reason that a city can give for not going forward with municipal improvements is the fact that it may not be able to market the bonds necessary to carry on the work because of the present European conflict. If this condition should prevail, it seems to me that a city would be justified in raising the interest rate, so the bonds would be attractive to investors. If this were done, I feel confident that no difficulty would be experienced in disposing of municipal bonds and municipal work could be carried on without interruption.

As you have aptly stated in your August issue, "Let the armies of construction go forward." And let this be the battle-cry of every American city. JAMES D. SMITH, Mayor.

Norfolk, Va.

Public improvements in all cities are made upon the basis of the issue of bonds. I think no prudent person will advise the placing of municipal bonds on the market at the present time, unless an exigency demands it; that is, unless it be necessary to raise funds at an exorbitant cost to meet maturing obligations. Certainly there is a condition existing in the money market which makes it difficult to make loans, even to meet current expenditures. Financial institutions, I take it, are looking very critically into all propositions to borrow, but are taking care of their customers willingly, when these customers show a disposition to appreciate that there is a financial crisis, and are not blindly rushing ahead making new business and assuming new obligations under existing conditions.

Then, there is another feature which, it strikes me, is worthy of consideration under the present conditions: The prosperity of a city is directly consequent upon the prosperity of the citizens; money which the city may borrow comes from, and is a part of, that general fund which is offering itself for hire in the shape of loans. Every borrower, to a greater or lesser extent, taxes the capacity of this general fund, and each is a direct competitor of the other for a portion of such fund. If from any cause that general fund is con

stricted or restricted, the greater the number of borrowers the greater the difficulty of getting accommodations; and so the possibility of carrying on business of any sort is made more difficult.

Now, this being so, just to the extent that the number of borrowers may be lessened just to that extent is there a greater amount of money left for the others. Therefore, I think it logical that the city should not be a competitor with the citizen in the money market under the present condition, because it restricts the citizen's ability to hold on to his own prosperity, upon which the city's prosperity is absolutely dependent; and, hence, the city should withdraw from the money market as a borrower, in every way, except where it may be essential to maintain its credit or health. WYNDHAM R. MAYO, Mayor.

Reading, Pa.

The idea that you advance is one that should be heartily advocated by every municipality in the country, and is one that will afford employment on public construction work to thousands of men who have been rendered idle because the firms that regularly employed them have been compelled to suspend operations owing to the depressing effect that the European war and other local conditions have had on the several lines of industry of this country.

That the City of Reading does not intend to contribute to this general business depression is evidenced by the fact that since May, 1914, contracts have been awarded that call for a greater expenditure of money for construction work than has been spent along this line in any of the past five years. There is also now pending in the City Council legislation for additional construction work, contracts for which will be let at an early date. None of this work will be retarded or stopped, but instead it will be pushed rapidly to completion so as to alleviate the industrial condition as much as possible. The construction work that has been contracted for is as follows:

$200,000.00 for permanent street improvements.
70,000.00 for repairs to streets.
95,000.00 for storm water sewers.
8,000.00 for installation of a garbage incin-

New Orleans, La.

I am in complete accord with your attitude in the matter of the importance of going ahead with municipal construction work in this country, irrespective of the great European upheaval. There are many reasons why work of this character should be prosecuted with the utmost vigor, especially at this time, the most appealing of which is that it will afford continuous and profitable employment to a large number of our people, a considerable proportion of whom might otherwise become a charge upon the communities in which they live. Be

sides, healthy, substantial occupation will have a tranquilizing effect upon the workers, operating as a discouraging element to that spirit of restlessness so apt to make its appearance among the people in times like these, and which is more or less attended by injurious consequences.

Just now New Orleans has a large amount of public work in progress-sewerage, drainage, street paving, etc., and I am glad to say we have no thought of a suspension of activities in this direction.

MARTIN BEHRMAN. Mayor.

Atlanta, Ga.

Municipal bonds have grown in popularity for some months past, on account of the fact that the income received from them is not taxed, nor is it necessary to be shown in the Federal income tax returns, and the payment of the principal and interest of such bonds being provided by taxation and not depending strictly upon commercial or manufacturing prosperity, we believe that a large part of such funds as offer for investment will be inclined to go into municipal securities.

While bonds now in the hands of dealers are not being offered at any great recession from prices existing prior to the European war, bargains may be had, and we doubt if municipalities in this section will be willing to sell such bonds as have been authorized at a price which would justify a bond house to buy them with the prevailing high rate of interest and the uncertainty of the outlook.

ROBINSON-HUMPHREY-WARDLAW Co.

Baltimore, Md.

Prior to the declaration of war in Europe we felt sanguine and optimistic, particularly as to municipals. We handled many issues of such bonds during the present year at continually rising prices, and certain desirable municipals were hard to obtain. In our judgment, the war in Europe changes this situation in the same respect as it does all others.

The extracts which you sent us from letters from different American mayors fail, in our judgment, to realize that this is a time for economy, not only because it is difficult to sell securities, but because it may be difficult for taxpayers to pay their taxes, and in times of stress and great financial uncertainty the municipalities should postpone improvements not absolutely vital to public health and necessity.

We have not the least doubt that when the various stock exchanges throughout the country again see fit to authorize a resumption of business, municipal bonds will be in decided inquiry if they may be obtained at bar

to the

gain counter prices. For ourselves we would not accept new commitments during the present uncertainty, and we should strongly urge that wherever possible municipalities give up their plans for improvements, at least until it becomes more definitely determined upon what basis they can negotiate their necessities.

As a matter of fact, many of our counties, cities and towns have been entirely too eager to build roads, create smooth streets and indulge in many other municipal improvements, some of which have been more a matter of local pride than of necessity. Although it may not be widely known, Europe has been a big market for American municipal bonds, and this market, of course, will be withdrawn for a time of indefinite duration. The theory of municipal improvement and expenditure to give work to unemployed is apparently reasonable, but it is neither sound economics nor wise finance.

We feel that a city should be administered with the same regard to the taxpayer that a business man extends to his business affairs. NELSON, COOK & Co.

Cincinnati, Ohio

It is a little too early for us to express any decided opinion on the subject of the future demand for municipal investments, other than to say that in such disturbed conditions, where all lines of business are possibly affected, the investing public will in great probability be unduly conservative, and therefore turn to the safest and most conservative form of investment, viz.: municipal bonds. In this connection we also wish to point out the fact that the demand for investments will necessarily be limited, in a relative sense, as applying to conditions prevailing prior to the outbreak of the With this thought in view, we can unhesitatingly express the opinion that municipalities should take these facts into consideration, and only offer such bonds for sale as are really necessary to finish urgent and important municipal improvements.

war.

SEASON GOOD & MAYER.

A

FTER our remarkably interesting visit to Munich it seemed impossible that we should so soon be able to outdo ourselves, but such was the case at Ulm, where we have had by far the most profitable stay of our entire trip.

Under the hospitable direction of Oberbürgermeister von Wagner, Stadtbaurat Wilhelm Holch, and Engineer Schröder, we have gotten under the skin and have seen the real workings of a German city in a way which is permitted to very few Americans. At 9.15 Herr Holch was at our hotel, and from that time until we parted at 7 o'clock in the evening we were continuously on the go. We visited the city hall, the workmen's houses, the parks, the new streets, schoolhouses, the Münster and many other places of equal interest, but too numerous to mention.

Ulm is without doubt one of the foremost German cities in matters of city planning, housing and other municipal activities. But Ulm is also an old and distinguished town, with a history of which any city might well be proud, and replete with monuments which far surpass those of many a better advertised foreign city.

Ulm-on-the-Danube, for that is the full name of the city, is first mentioned in official documents of 854. It was once an Imperial Free Town, and with the trade and industry thus stimulated became a center of commerce. The city was early a stronghold of great power. It was fortified with high walls which extended around the

city, and of which large stretches are still in existence. It was further fortified in 1842-1850, and recently the fortifications have been pushed out still further. The two most famous buildings of the city are the Münster and the town hall. The former, an imposing and beautiful Gothic structure with the highest ecclesiastical spire in the world, was built between 1377 and 1500. No small part of the beauty of the building is due to the surroundings, which harmonize in a remarkable way with the architecture of the great Münster. The Rathaus (City Hall) was built during the sixteenth century and is an example of the construction typical of that time.

But let us hurry on to the important things in the modern city. Like so many other institutions in German cities, the beginning and end of the story of Ulm is the character of the men at the helm and behind them the efficient organization, and, better still, the right spirit of municipal government. Oberbürgermeister von Wagner is just completing his twenty-seventh year in office and has the position for life. Now a man well on toward sixty, he is giving the ripest judgment and experience to the city of Ulm. He is just as keen now to introduce new methods and solve old problems as ever, and is even at the moment engaged in working out a new plan of employment insurance. He is ably supported by men like Holch and Schröder, the city architect and the city engineer, who also hold their position during good behavior—and in Germany that means until they retire on a goodly pension.

The city of Ulm, like many other cities, has had for a long time a land policy. But until about 1890 the city was selling rather than acquiring land. The city, in fact, was really reducing her patrimony.

Oberbürgermeister von Wagner, however, proposed that the city reverse its policy and acquire as much land as possible.

Under his guidance the city in 1892 purchased a large tract of land to be used to build cheap and sanitary dwellings for workers. The plan was successful, and the city has gone on purchasing land and building almost every year additional homes for workers.

The essential point, however, in the housing policy of Ulm, and where it differs materially from that of other cities, is that the City of Ulm believes in building small houses, one family each, to be owned, not rented, by the occupants. It is difficult, therefore, to compare the housing problem in Ulm with those elsewhere, because in Ulm each worker pays an initial deposit, interest on the balance of the investment, and a sinking fund installment. The city

owns the land, the worker owns his house and lives in it as long as he pleases. If, however, he wishes to sell or sublet, the city reserves the right to purchase at the price which was originally paid. Thus speculation in these small houses is forever prevented.

The city has also promoted good housing by selling land at low prices to provident and coöperative building organizations, and even to private manufacturers who wish to erect model dwellings.

Not only have dwellings been erected for the low-paid wage-earners, but for the middle classes, clerks, city officials, teachers and others who demand a better type of house, but who are often unable to get what they desire and should have at prices which

would be possible for their limited incomes. The city has, therefore, built on its own land very roomy and good-looking houses, some of which have cost as much as 20,000 marks a sum which builds a much better house in Germany than $5,000 would in almost any city of the United States.

The city planning, or the larger city building of Ulm, is equally interesting and likewise distinctive.

At the end of the nineteenth century there was no space left within the walls for the necessary expansion of the city. Like other German cities, Ulm has been increasing in population, although not at a very rapid rate. Accordingly the walls which had been built in 1850 were sold to the city of Ulm. This was in 1902. The general plan of development since that time has centered on the following main points:

1. The making of direct roads from the gates of the old wall to the main roads leading to all parts of the country.

2. The effecting of proper connections by new direct main streets with the suburb Söflingen, which was joined to Ulm in 1905.

3. The making of main roads, avenues and boulevards within the walls.

4. The laying out of a freight yard and depot to the west of Ulm and effecting the proper connections with the main portion of the city. These four objects define the general geography of the city. There were, however, in addition to this, several zones for various purposes set aside in different sections of the city. These were as follows:

(a) The district between Ulm and Söflingen was to be used for all kinds of trades, small industries and houses for the general population. In this district houses were to be built in rows.

(b) Two special districts, one to the east of Söflingen, and the other to the east of Ulm, were reserved for large industries.

(c) The suburb of Söflingen and the land to the northwest of it is designed for workpeople, and the houses are to be 17 feet apart.

(d) For still better houses the land south of Söflingen has been reserved, and here the houses must be 23 feet apart.

(e) A high hill to the west of Ulm has been reserved for villas and more expensive houses, where the intervening distances must be 33 feet.

(f) For the still wealthier the hill to the north of Ulm has been reserved with an intervening distance of 47 feet.

(g) Another section has been reserved for recreation and sports.

(h) Still another section, near the Danube, has been set aside as a future harbor.

Thus the city of Ulm is planned out for years to come and its future development is safeguarded and determined.

This table shows clearly that the city has acquired a net total of over 420 hectares (a hectare equals 2.471 acres) at an outlay of 1,432,298 marks. The city of Ulm to-day possesses more than 80 per cent of the freehold land within the actual boundaries of the city, and owns in addition much land beyond its own borders.

In spite of the fact that the city sells land, it does so only after attaching a good strong string which will enable the municipality to pull it back whenever it feels so inclined. The land sold must be built upon within a definitely stated time. If the owner does not do so or wishes to transfer it, the city has the option of buying it back at the original price plus an addition of 3 per cent interest.

The details of activities of the city might be greatly added to, but these facts suffice to show what the city is doing.

In general the houses which have been built by the city are attractive architecturally and most conveniently arranged. Many of them are two-family houses and there are some rows, but the tendency is to build separate and detached dwellings.

The little city of Ulm, under the direction of Oberbürgermeister von Wagner, is a shining example of what a city can do and should do. The city of Ulm has in a very real sense found itself and is creating for itself and for its inhabitants a better and a bigger city.

E. E. PRATT.