CHAPTER VII.

SEMI-MUNICIPAL ENTERPRISE--LOCAL OPTION--TEMPERANCE REFORM.

In the last chapter we saw that no line could be sharply drawn between

municipal and individual enterprise, so that one could definitely say

of one or the other, “Hitherto shalt thou come, but no further”; and

this ever-changing character of the problem can be usefully illustrated

in our examination of the industrial life of Garden City by reference

to a form of enterprise there carried on which is neither distinctly

municipal nor distinctly individualistic, but partaking, as it does, of

the character of both, may be termed “semi-municipal.”

Among the most reliable sources of revenue possessed by many of our

existing municipalities are their so-called “public markets.” But

it is important to notice that these markets are by no means public

in the same full sense as are our public parks, libraries, water

undertakings, or those numerous other branches of municipal work which

are carried on upon public property, by public officials, at the

public expense, and solely with a view to the public advantage. On

the contrary, our so-called “public markets” are, for the most part,

carried on by private individuals, who pay tolls for the parts of the

buildings which they occupy, but who are not, except on a few points,

controlled by the municipality, and whose profits are personally

enjoyed by the various dealers. Markets may, therefore, be fitly termed

_semi-municipal_ enterprises.

It would, however, have been scarcely necessary to touch on this

question, but that it naturally leads up to the consideration of a

form of semi-municipal enterprise which is one of the characteristic

features of Garden City. This is to be found in the Crystal Palace,

which, it will be remembered, is a wide arcade, skirting the

Central Park, in which the most attractive wares on sale in Garden

City are exhibited, and, this being a winter garden as well as the

great shopping centre, is one of the most favourite resorts of the

townspeople. The business at the shops is carried on, not by the

municipality, but by various individuals and societies, the number of

traders being, however, limited by the principle of local option.

The considerations which have led to this system arise out of the

distinction between the cases on the one hand of the manufacturers,

and on the other of the distributive societies and shopkeepers who

are invited to the town. Thus, for example:--In the case of the

manufacturer, say, of boots, though he may be glad of the custom of the

people of the town, he is by no means dependent on it; his products go

all over the world; and he would scarcely wish that the number of boot

manufacturers within the area should be specially limited. He would,

in fact, lose more than he would gain by restrictions of this kind. A

manufacturer frequently prefers to have others carrying on the same

trade in his vicinity; for this gives him a larger choice of skilled

workmen or workwomen, who themselves desire it also, because it gives

them a larger range of employers.

But in the case of shops and stores the case is entirely different. An

individual or a society proposing to open in Garden City, say a drapery

store, would be most anxious to know what, if any, arrangements were to

be made for limiting the number of his competitors, for he would depend

almost entirely on the trade of the town or neighbourhood. Indeed it

frequently happens that a private landlord, when laying out a building

estate, makes arrangements with his shopkeeping tenants designed to

prevent them from being swamped by others in the same trade starting on

his estate.

The problem, therefore, seems to be how to make such suitable

arrangements as will at once--

(1) Induce tenants of the shopkeeping class to come and start in

business, offering to the community adequate rate-rents.

(2) Prevent the absurd and wasteful multiplication of shops referred

to in the note at the foot of page 81.

(3) Secure the advantages usually gained (or supposed to be) by

competition--such as low prices, wide range of choice, fair dealing,

civility, etc.

(4) Avoid the evils attending monopoly.

All these results may be secured by a simple expedient, which will have

the effect of converting competition from an active into a latent force

to be brought into play or held in reserve. It is, as we have said,

an application of the principle of local option. To explain:--Garden

City is the sole landlord, and it can grant to a proposed tenant--we

will suppose a co-operative society or an individual trader in drapery

or fancy goods--a long lease of a certain amount of space in the Grand

Arcade (Crystal Palace), at a certain annual rate-rent; and it can

say, in effect, to its tenant, “That site is the only space in that

ward which we for the present intend to let to any tenant engaged in

your trade. The Arcade is, however, designed to be not only the great

shopping centre of the town and district, and the permanent exhibition

in which the manufacturers of the town display their wares, but a

summer and winter garden. The space this Arcade covers will, therefore,

be considerably greater than is actually required for the purposes

of shops or stores, if these are kept within reasonable limits. Now,

so long as you give satisfaction to the people of the town, none of

the space devoted to these recreative purposes will be let to anyone

engaged in your calling. It is necessary, however, to guard against

monopoly. If, therefore, the people become dissatisfied with your

methods of trading, and desire that the force of competition shall be

actively brought into play against you, then, on the requisition of a

certain number, the necessary space in the Arcade will be allotted by

the municipality to some one desirous of starting an opposition store.”

Under this arrangement it will be seen the trader will depend upon

the good-will of his customers. If he charges prices which are too

high; if he misrepresents the quality of his goods; if he does not

treat his employees with proper consideration in regard to hours of

labour, wages, or other matters, he will run a great risk of losing

the good-will of his customers, and the people of the town will have

a method of expressing their sentiments regarding him which will

be extremely powerful; they will simply invite a new competitor to

enter the field. But, on the other hand, as long as he perform his

functions wisely and well, his good-will resting on the solid basis of

the good-will of his customers, he will be protected. His advantages

are, therefore, enormous. In other towns a competitor might enter the

field against him at any moment without warning, perhaps at the very

time when he had purchased some expensive goods, which, unless sold

during the season, could only be realised at an enormous sacrifice. In

Garden City, on the other hand, he has full notice of his danger--time

to prepare for it and even to avert it. Besides, the members of the

community, except for the purpose of bringing a trader to reason, will

not only have no interest in bringing a competitor into the field,

but their interests will be best served by keeping competition in the

background as long as possible. If the fire of competition is brought

to bear upon a trader, they must suffer with him. They will lose space

they would far rather see devoted to some other purpose--they will

be bound to pay higher prices than those at which the first trader

could supply them if he would, and they will have to render municipal

services to two traders instead of to one, while the two competitors

could not afford to pay so large a sum in rate-rent as could the

original trader. For in many cases the effect of competition is to

make a rise in price absolutely necessary. Thus, A. has a trade of 100

gallons of milk a day, and can, we will suppose, pay his expenses, earn

a bare living, and supply his customers with milk, say, at 4d. a quart.

But if a competitor enters the field, then A. can only sell _milk

and water_ at 4d. a quart if he is to continue to pay his way. Thus

the competition of shopkeepers absolutely tends not only to ruin the

competitors, but to maintain and even to raise prices, and so to lower

real wages.[15]

Under this system of local option it will be seen that the tradesmen

of the town--be they co-operative societies or individuals--would

become, if not strictly or technically so, yet in a very real sense,

municipal servants. But they would not be bound up in the red-tape

of officialism, and would have the fullest rights and powers of

initiation. It would not be by any literal conformity to cast-iron and

inflexible rules, but by their skill and judgment in forecasting the

wishes and in anticipating the tastes of their constituents, as well

as by their integrity and courtesy as business men and women, that

they would win and maintain their good-will. They would run certain

risks, as all tradesmen must, and in return they would be paid, not of

course in the form of salary, but in profits. But the risks they would

run would be far less than they must be where competition is unchecked

and uncontrolled, while their annual profits in proportion to capital

invested might also be greater. They might even sell considerably below

the ordinary rate prevailing elsewhere, but yet, having an assured

trade and being able very accurately to gauge demand, they might turn

their money over with remarkable frequency. Their working expenses,

too, would be absurdly small. They would not have to advertise for

customers, though they would doubtless make announcements to them of

any novelties; but all that waste of effort and of money which is so

frequently expended by tradesmen in order to secure customers or to

prevent their going elsewhere, would be quite unnecessary.

And not only would each trader be in a sense a municipal servant, but

those in his employ would be also. It is true such a trader would have

the fullest right to engage and dismiss his servants; but if he acted

arbitrarily or harshly, if he paid insufficient wages, or treated his

employees inconsiderately, he would certainly run the risk of losing

the good-will of the majority of his customers, even although in other

respects he might prove himself an admirable public servant. On the

other hand, if the example were set of profit-sharing, this might grow

into a custom, and the distinction between master and servant would be

gradually lost in the simple process of all becoming co-operators.[16]

This system of local option as applied to shopkeeping is not only

business-like, but it affords an opportunity for the expression of

that public conscience against the sweater which is now being stirred,

but which scarcely knows how to effectually respond to the new impulse.

Thus there was established in London some years ago the Consumers’

League, the object of which was not, as its name might lead one to

suspect, to protect the consuming public against the unscrupulous

producer, but it was to protect the sweated, over-driven producer

against a consuming public over-clamorous for cheapness. Its aim was

to assist such of the public as hate and detest the sweating system

to avail themselves of the League’s carefully compiled information,

so that they might be able to studiously avoid the products which had

passed through sweaters’ hands. But such a movement as the Consumers’

League advocated could make but little headway without the support of

the shopkeeper. That consumer must be an uncommonly earnest opponent of

sweating who insists upon knowing the source whence every article he

purchases has come, and a shopkeeper under ordinary circumstances would

scarcely be disposed either to give such information or to guarantee

that the goods he sold were produced under “fair” conditions; while

to establish shops in large cities, which are already overcrowded

with distributive agencies, and to do this with the special object

of putting down sweating, is to court failure. Here in Garden City,

however, there will be a splendid opportunity for the public conscience

to express itself in this regard, and no shopkeeper will, I hope,

venture to sell “sweated goods.”

There is another question with which the term “local option” is most

closely associated which may be dealt with here. I refer to the

temperance question. Now it will be noticed that the municipality,

in its position of sole landlord, has the _power_ of dealing in the

most drastic manner possible with the liquor traffic. There are, as is

well known, many landlords who will not permit a public-house to be

opened on their estate, and the landlord of Garden City--the people

themselves--_could_ adopt this course. But would this be wise? I think

not. First, such a restriction would keep away the very large and

increasing class of moderate drinkers, and would also keep away many

of those who are scarcely moderate in their use of alcohol, but as to

whom reformers would be most anxious that they should be brought under

the healthful influences which would surround them in Garden City.

The public-house, or its equivalent, would, in such a community, have

many competitors for the favour of the people; while, in large cities,

with few opportunities of cheap and rational enjoyment, it has its own

way. The experiment, as one in the direction of temperance reform,

would, therefore, be more valuable if the traffic were permitted under

reasonable regulations than if it were stopped; because, while, in

the former case, the effects in the direction of temperance would be

clearly traceable to the more natural and healthy form of life, if the

latter course were adopted it could only prove, what no one now denies,

that it may be possible, by restrictive measures, to entirely keep away

the traffic from one small area while intensifying the evils elsewhere.

But the community would certainly take care to prevent the undue

multiplication of licensed houses, and it would be free to adopt any

one of the various methods which the more moderate of temperance

reformers suggest. The municipal authorities might conduct the liquor

traffic themselves, and employ the profits in relief of rates. There

is, however, much force in the objection that it is not desirable that

the revenue of a community should be so derived, and, therefore, it

might be better that the profits should be entirely applied to purposes

which would compete with the traffic, or in minimising its evil effects

by establishing asylums for those affected with alcoholism.[17] On this

subject, as on all points involved, I earnestly invite correspondence

from those who have practical suggestions to offer; and, although the

town is but a small one, it would perhaps not be impracticable to test

various promising suggestions in the different wards.

FOOTNOTES:

[15] “It has been calculated by Mr. Neale” (“Economics of

Co-operation”) “that there are 41,735 separate establishments for 22

of the principal retail trades in London. If for each of these trades

there were 648 shops--that is 9 to the square mile, no one would have

to go more than a quarter of a mile to the nearest shop. There would

be 14,256 shops in all. Assuming that this supply would be sufficient,

there are in London 251 shops for every hundred that are really wanted.

The general prosperity of the country will be much increased when the

capital and labour that are now wastefully employed in the retail trade

are set free for other work.”--“Economics of Industry,” A. and M. P.

Marshall, Chap. ix., sec. 10.

[16] This principle of local option, which is chiefly applicable to

distributive callings, is perhaps applicable to production in some of

its branches. Thus bakeries and laundries, which would largely depend

upon the trade of the locality, seem to present instances where it

might with some caution be applied. Few businesses seem to require

more thorough supervision and control than these, and few have a more

direct relation to health. Indeed, a very strong case might be made out

for municipal bakeries and municipal laundries, and it is evident that

the control of an industry by the community is a half-way house to its

assumption of it, should this prove desirable and practicable.

[17] Since “To-Morrow” was published, various Companies have been

formed by the Public House Trust Association, 116 Victoria Street,

Westminster, S.W., with the object of carrying on the trade on

principles advocated by the Bishop of Chester. A limited dividend of 5

per cent. is fixed; all profits beyond are expended in useful public

enterprises, and the Managers have no interest whatever in pushing the

trade in intoxicating liquors. It may be interesting also to observe

that Mr. George Cadbury, in the Deed of Foundation of the Bourneville

Trust, provides for the complete restriction of the traffic at the

outset. But as a practical man, he sees that as the Trust grows (and

its power of growth is among its most admirable features) it may be

necessary to remove such complete restrictions. And he provides that in

that event “all the net profits arising from the sale and co-operative

distribution of intoxicating liquors shall be devoted to securing

recreation and counter attractions to the liquor trade as ordinarily

conducted.”

Garden Cities of To-Morrow Being the Second Edition of "To-Morrow: a Peaceful Path to Real Reform" · 第 7 / 13 章