The general public takes little interest in local elections. Most citizens abstain from voting. Therefore the numerous corporation employees often have the decisive vote in local elections, and they will support only a candidate who promises shorter hours or higher pay. Municipal employees sitting in the public galleries will even dominate the council chamber, intimidate councillors, and shout down those of whom they disapprove. Besides, they may strike and disorganise the public services, and make the Socialistic authorities look ridiculous. Therefore it is better to humour and to obey them than to oppose them. The Fabian Society demands for municipal servants "full liberty of combination," because "the servants of the public may often need protection against the public, as in the Post Office."[702] The results of Socialist teachings are to be seen in many municipalities. "The servants of the public" are already, and will in an increasing degree become, the masters of the public.
Under municipal Socialism the wages of tramway-men have increased as follows: "In Sheffield, where the private company paid _100l._ for labour, the Corporation pay _165l._ for the same amount of work. In Bolton, where the private company paid _100l._, the Corporation pay _137l._ In Wallasey, where the private company paid _100l._, the District Council pay _185l._ In Northampton, where the private company paid _100l._, the Corporation pay _120l._ In Birkenhead, where the private company paid _100l._, the Corporation pay _315l._ In Portsmouth, where the private company paid _100l._, the Corporation pay _130l._ In Sunderland, where the private company paid _100l._, the Corporation pay _145l._ When the Manchester Corporation took over the trams they paid increased wages amounting to _60,000l._ a year."[703]
The foregoing information is given by a Socialist. Some of the advances may be justified, but others, and probably the majority, have been made with that fine disregard of economy which is commonly found among men who can afford to be generous at other people's expense. Municipal Socialism is an ever-growing cancer which is rapidly exhausting the country.
"Half the municipal debt is of a nature which can never yield a profit."[704] The other half is invested in enterprises many of which are run regardless of economy and of expense, regardless of profit and loss, in accordance with the Socialistic principles stated in this Chapter. The policy of deliberate waste and of constant increase of debt, the principles of "launching out into something new" and "levelling up their districts," perhaps also the fear of eventual bankruptcy and repudiation, have at last frightened the investor. Corporation stocks can no longer be considered as safe first-class securities. Besides, the banks have begun to refuse to accommodate Socialistic municipalities with the necessary funds by overdrafts, short loans, &c. Socialists have therefore begun to complain when they saw that the unlimited supply of other peoples' money was diminishing. They consider it a grievance that they can no longer arbitrarily squander on fantastic undertakings what is not their own. "The hostility of the banking interest to municipal borrowing, and the threat to 'cut off supplies' has at length taken practical form. Disappointed in their attempt to secure sufficiently favourable treatment from their bankers (Parr's), the Chester Corporation applied to four other banks in the city, viz. Lloyds, North and South Wales, National Provincial, and Liverpool Banks. All refused to tender for the account. The banks are not run for the public, the public are run for the bankers."[705] Also, the banks, instead of lending their funds gratis to Socialist corporations, are heartless enough to demand interest "usury" on their loans. "Unfortunately at present public bodies must pay heavy tribute as interest on borrowed money."[706] "Our embryo Socialistic enterprises are even now suffering from the toll of interest which a restricted credit and currency permit the money lords to exact."[707]