a reasonable profit made on an actual investment. To accomplish this end he calls for a compulsory sale of the property, the power to place the management of the business in the hands of receivers if certain conditions are found, and he says they will be found in nearly every case. To liquidate the excess of corporation stock and bonds that may be outstanding over the valuation of the plant, he provides for the use of all net earnings unless these earnings are large enough to effect the liquidation completely before the expiration of the franchise, in which case shareholders may receive a dividend of not more than six per cent per annum. Under this ruling a majority of shareholders will go without dividends a long time.

No better public service can be rendered by any person than to analyze every provision in the Ohio measure and in Mr. Lane's proposals and show wherein one may be better than the other or draw a provision on any of the main points that will be better than either. We hope many persons will take up the discussion in this spirit and for this purpose.

HOW PARIS IS TO ACQUIRE ITS UNDERGROUND RAILROADS.

An underground system of transportation is in process of construction in the city of Paris. The tunnels and viaducts are being constructed for the account of the city at an estimated expense of $33,000,000. This construction carries the work up to the point of making a roadbed ready for the tracks. The city has leased this roadbed to an operating company for a period of thirty-five years, but it has reserved the right to purchase the interest of the leasing company at any time after it has been in operation seven years. The price of the purchase is to be determined on the basis of the net revenue of the company during -the preceding seven years. It is provided that from the net income of the seven years the net income of the two most unfavorable years shall be deducted and the average for the remaining five years shall constitute the amount of the annuity which shall be due and payable to the leasing company for each of the years still to run until the expiration of its lease. In no case, however, is this annuity to fall below the net income of the last year preceding the time of the purchase. In case of compulsory purchase the city shall take over the rolling stock at a price fixed upon by arbitration.

The roadbed covers forty miles. At least one hundred and thirty-five trains are to be operated daily.

The fares between any two stations are to be: First class, five cents; second class, one way, three cents, round trip, four cents; school children, conducted by a teacher, one cent. The city contracts a loan of $33,000,000, to be repaid in seventy-five years, the interest and sinking fund requirement being 3 per cent per annum. To provide this payment the city lays a tax of one cent on each second-class ticket, excepting the school tickets, and two cents on each first-class ticket. Under this arrangement the operating company receives three cents for each first-class ticket; two cents for each second-class ticket and the entire income from school tickets. These fares are based on an estimated traffic of 110,000,000 passengers per year. When the number exceeds 140,000,000 per year the city will be entitled to an additional one-fifth of a mill for each additional 10,000,000 passengers until 190,000,000 has been attained, at which point the share of the city becomes stationary. It is expected that the entire loan will be repaid out of the income derived by the city from the operation of the road under this contract.

At the end of thirty-five years the city will come into possession of the permanent structures owned by the leasing company in connection with the equipment and operation of the road, free of charge.

PROF. SPIERS ON STREET RAILWAY REGU

LATION.

We wish at this time to call attention to one point in Prof. Spiers' address on the "Regulation of Street Railways." In showing results of "unlimited franchises" the professor makes his statement in a way to lead the uncritical reader to the conclusion that the public have had the worst end of the bargain. Assuming all he says as to what corporations have received, or are receiving, to be true, is it not necessary that an equally clear statement be made showing what the public has received before any correct conclusion can be reached as to whether or not the public have the worst end of the bargain? Take the city of Philadelphia, to which reference has been made, as an illustration. What is the public gain from street railroad investments? Is not the service in that city to-day, the length, comfort and speed of the ride, increased over what it was twenty years ago, by a per cent fully as great as that of the earnings on the investment? Are not the streets of Philadelphia, which have been rebuilt and paved with asphalt from curb to curb, at the expense of the street railroad company, as many per cents better than were those streets twenty years ago, as the reported earnings on street railway investments? The city did not have the means of improving these streets and exacted their improvement by the street railroad company as a part of the consideration paid

for the "unlimited franchise." Take the valuation of all the real estate within the zone of influence of the street railway service, as it is rated to-day, either for taxable valuation or for private sale, deduct therefrom the value of the same property twenty years ago, and assign to the credit of the street railway service that portion of the increase justly due to the service, the improvements in the service and the improvement of the streets, and see if others than holders of street railway securities have not profited liberally from the results of street railway enterprise. When these elements are all properly valued and taken into the account, we think the people of Philadelphia, who are proud of their street railway service, would vote to keep what they have and let the railroad company do the same.

THE PUBLIC AND STREET RAILROADS.

The people of the county, and of Chicago in particular, have not forgotten the excitement that prevailed during the winter of 1898-99, over the street railroad question. We studied that episode closely. We found volumes of denunciation for every sentence of constructive work. Those who spoke for the people loudly proclaimed the evils of which they complained, but they either did not know, or they would not tell, how those evils could best be overcome.

After a period of rest, this street railroad question and questions relating to other public service utilities