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ment stations in the several states to promote industrial and engineering
research; and the enactment of federal reclamation legislation.

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Cooperative Associations. In an effort to encourage the producer
and the consumer of economic utilities to organize for mutual benefit,
five state legislatures enacted in 1919 laws authorizing the oi^ganization
of cooperative associations. Kentucky did likewise in 1918. Various
names are included in the caption "Cooperative Association," namely:
Cooperative Corporation, Society, Company, Exchange, Union. Penn-
sylvania requires the use of the word "Cooperation" in the name of
the association and forbids all partnerships and corporations from so
using the word "Cooperative" or any derivative thereof, unless such
organization has been formed as a cooperative association according
to the provisions of the act. Kentucky and Oklahoma provide similar

These cooperative associations may be organized in Wisconsin for
the purpose of conducting any agricultural, dairy, mercantile, mining,
manufacturing or mechanical business on the cooperative plan, and
of acting as a selling agency for its members or patrons.^

Nebraska includes in cooperative associations organizations organ-
ized by producers or consumeis, or jointly by producers and consumers,
for the purpose of collective bargaining, marketing and purchasing,
or other cooperative business activity, where the net profits of the
association, after paying the cost of operation and capital charge, shall
be distributed to the membership, not on a basis of capital investment,
but on a basis of patronage.^ Nebraska also authorizes the distribution
of its earnings in part or wholly on the basis of, or in proportion to,
the amount of property bought from or sold to members, or members
and the other patrons, or if labor be performed or other services rendered
to the corporation. Kentucky's authorized cooperative plan is a
business concern that distributes the net profit of its business by:
First, the pajmaent of a fixed dividend upon its stock; Second, the
remainder of its profits are prorated to its several stockholders or
customers, or both, as provided by by-laws, upon their purchases from
or sales to said concern or both such purchases and sales.'

Missouri allows the cooperative plan to have all the incidents, powers,
and privileges of corporations, for the purpose of conducting any
agricultural or mercantile business on the cooperative plan, including
the bu3ring, selling, manufacturing, storage, transportation, or other
handling, by associations, of agricultural, dairy, or similar products,

1 Wisoonsin, Session Laws, 1919, ch. 371.
* Nebraska, Session Laws^ 1919, p. 161.
» Kentucky, Session Laws^ 1918, p. 662.

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and including the transportation of such articles and their manufacture
into products derived therefrom, and for the purpose of purchasing
of or selling merchandise to all shareholders and others.*

Pennsylvania authorizes only cooperative agricultural associations
instituted for the purposes of mutual help and not having a capital
stock and not conducted for profit. In such associations are included
dairying, livestock raising, poultry raising, bee keeping, and horticulture.*

Oklahoma includes Uvestock and irrigation. Pennsylvania provides
that any member shall forfeit his membership upon proof being made
to the association that he has ceased to be engaged in agriculture,
dairying or horticulture.

In order to incorporate as a cooperative association under the Mis-
souri laws it is required that there shall be paid into the state treasury
a fee of fifty dollars for the first fifty thousand doUars or less, of capital
stock, and the further sum of five dollars for each additional ten thou-
sand doUars of its capital stock.

No shareholder in any cooperative association in Missouri may own
shares of a greater aggregate par value than ten per cent of the aggregate
par value of all shares of stock of such associations. In Oklahoma
coop)erative association stock must not be sold at less than its par
value. Twenty per cent of the par value of the stock subscribed for
must be paid in before the corporation commences business.*

The mi n imum number of persons who may incorporate as a coopera-
tive association in Kentucky is three; in Pennsylvania and Wisconsin,
five; in Missouri, twelve; and' in Nebraska, twenty-five. Kentucky
requires that the association shall be managed by not less than three
directors, while Pennsylvania and Missouri requires at least five such

Nebraska also authorizes the organization of. cooperative credit
associations, to be conducted upon the same general principle as the
ordinary cooperative associations.

Milton Conover.

Harvard University,

State Legislation, 1Q20. A special issue of the BvlUtin of the Public
Affairs Information Service, for September 25, 1920, contains an index
of state legislation passed during the present year. This includes the

* Missouri, Session Law8j 1919, p. 116.

* Pennsylvania, Session Laws, 1919, p. 466.

* Oklahoma, Session Laws, 1919, p. 211.

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laws passed in nine states (Greorgia, Kentucky, Maryland, Massa-
chusetts, New Jersey, New York, Rhode Island, South Carolina and
Virginia), of eleven in which regular sessions were held, and in four
states (Idaho, Kansas, Washington and Wyoming) of the eighteen in
which special sessions were held. Little legislation of importance
resulted from the special sessions, many of which were called to act
on the woman suffrage amendment to the Constitution of the United

Among the subjects of important legislation may be noted: intoxi-
cating liquors (in Kentucky, New Jersey, New York and Rhode Island) ;
rents (in Georgia, Massachusetts, New Jersey and New York); state
aid to returned soldiers (in Massachusetts, New Jersey, New York,
Rhode Island, Washington and Wyoming); and syndicalism (in Kansas
and Kentucky).

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Ohio State University

Charter Reyisions and Home Rule. Perhaps the most important
proposed charter amendment to come before city voters at the Novem-
ber election of this year is that contained in the measm^ submitted
by the Massachusetts legislature providing for the amendment of the
charter of Boston. The act changes the composition of the city coimcil,
composed at present of nine members elected at large, by providing
for a council of fifteen members to be elected by districts, the entire
coimcil to be chosen every two years. The measure is opposed by
the leading civic organizations of the city, such as the Good Govern-
ment Association, Boston Charter Association, and the chamber of
commerce. It has the support of both the Democratic and Republican
organizations, who anticipate that a restoration of party-machine con-
trol will be facilitated both by the renewal of the entire council with
the election of the mayor every four years and by the district system
of electing coimcilmen.

The charter of Galveston, the oldest "commission charter," was
radically amended at a recent election at which twenty-six amendments
were adopted. The more important amendments make the following
additions and changes in the charter: establishing the recall for all
elective offices, the initiative, and the referendum; empowering the city
commission to regulate rates, fares and services of public utilities, and
to compel interchange of services by the various utilities; authorizing
the commission to increase salaries of municipal employees, to establish
the eight-hour shift in the police department and the two-platoon
system in the fire department, and to install a system of workmen's
compensation for municipal employees generally; changing the office
of assessor and collector of taxes from an appointive to an elective

Under the constitutional amendment adopted in Maryland in 1915,
authorizing any county to frame and adopt its own charter, a com-
mission was elected in November, 1919, to draft a charter for Baltimore

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county. The county of Baltimore does not include within its bound-
aries the city of Baltimore; but it embraces many xinincorporated urban
communities within which all local functions — including such distinctly
municipal services as fire and police protection, sewage disposal, public
health administration — are administered by the county government.
In May of this year the charter commission reported a county-manager
charter, substantially similar to the city-manager plan. Powers of
local discretion, in defining the general scope of powers and determining
the niunber and type of county officials, are somewhat restricted under
the home rule amendment, which perpetuates all officers (with the
exception of the coimty conmussioners) created by the constitution
or general laws, and confers upon the legislature the authority to
define the powers of coimties which frame their own charters. This
preserves independent of the local charter the sherifiF, state's attorney,
treasiu-er, surveyor, clerk of court, register of wills, and, of course, the
judicial officers; but the sheriff (by a recent act of the legislature) has
been deprived of many of his former administrative powers. The
legislature in 1918 passed a law which confers upon counties which
:adopt their own charters a broad grant of legislative and administra-
tive powers with respect to most affairs of local concern. The proposed
•charter for Baltimore coimty provides for: (1) a council of fifteen
members chosen by districts, with nonpartisan nomination and election
and with a term of three years, one-third of the members to retire
each year; (2) a county manager chosen by the council for an indefinite
term, with a salary of S5000 which the council may raise to $6500; (3)
three administrative departments, the heads to be elected by the
council upon nomination by the manager, for a term of four years;
(4) removal of the manager or heads of departments at any time by
two-thirds vote of the members of the council. The charter, if adopted,
will introduce the first county-manager system in the country. It is
opposed by the stronger local party organizations.^

The committee of fifteen, appointed in 1916 by action of twenty
representative civic organizations of Cleveland to investigate and
report upon the city-manager plan for Cleveland, presented majority
and minority reports in November, 1919. The majority report, signed
by ten members, recommends, in main essentials, the model charter
of the National Municipal League providing for a city manager and a
council elected by proportional representation. The council would

1 Cf. H. W. Dodds, "A County Manager Charter in Maryland," in Naiionai
Municipal Review^ August, 1920, pp. 504-513.

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consist of from fifteen to twenty members chosen from a few large
districts from each of which would be elected, by a system of pro-
portional representation, from five to nine comicUmen; the city manager
would be chosen by, and serve at the pleasure of, the coimcil, and would
have the power of appointing all department heads, except the law
director and the city auditor. The minority report, signed by five
members of the conmiittee, preserves the independent mayor of the
present charter, makes him ineligible to succeed himself, and confers
upon him power to choose the city manager, who would serve during
the mayor's pleasure; the manager would have direction of the several
administrative departments, except the offices of city solicitor and
auditor, who would be appointed directly by the mayor. The reports
contain interesting arguments in support of their respective plans.
Apparently no further progress has been made recently in the move-
ment for a new charter for Cleveland.

Discussion of the borough system of organization has recently been
taken up in Cleveland. For some years past intermittent efforts have
been made in some manner to consolidate with the parent city the
cities and villages contiguous to Cleveland. Agitation in the past
has shown two separate trends: one, the simple annexation of these
suburban communities, making of them new city wards, or portions
of existing wards; the other, a plan of city-county consolidation con-
templating rather sweeping changes and effecting a complete unification
and centralization of government for all existing local units. Neither
movement has gone much beyond the introduction of enabling legis-
lation in the proper legislative bodies. With the coming into office
on May 1, 1920, of the present mayor, Hon. W. S. Fitz Gerald (succeed-
ing Mayor Davis, who resigned to enter the race for governor), has
come the proposal of the borough idea as a solution of the problem.
In the past the outlying corporations could not be interested in the
proposition of coming into Cleveland imder any plan that would cause
them to lose their identity in the greater Cleveland. The borough
plan has been tentatively advanced by the mayor as affording a way
of preserving their local identity and yet making these communities
a part of Cleveland so far as the general functions of government are
concerned. The matter of the actual division of powers between the
proposed borough governments and the general city government has
not been discussed in detail as yet. The mayor has arranged confer-
ences with the executives of the principal suburban corporations at
which the views of each have been expressed. The fact that these

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suburban executives are willing to confer is deemed hopeful by many
friends of a greater Cleveland. The mayor is said not to favor the
New York borough plan, deeming it too complicated. The suburbs
on >their part will oppose strenuously the surrender of any large body
of powers to the central government. These apparently divergent
positions will require skillful adjusting if the plan in any form is to be
brought to fruition.*

A circuit court in Michigan has recently declared imconstitutional
the provision of the charter of Kalamazoo establishing the Hare system
of proportional representation in the election of city commissioners.
The decision was rendered in a qiw warranto suit brought by a man
who had been an unsuccessful candidate for election imder the system.
The groimd for the decision was the opinion of the judge that the
section Of the state constitution (ui. 1) declaring that every person
possessing the designated qualifications ''shall be an elector and entitled
to vote" implies that each such person is entitled to vote for every
officer for which he is qualified to vote, whereas under the charter
provision in question the ballot of any voter is counted for one candidate
only, although seven candidates are to be elected; and another section
of the constitution (vni. 8) provides expressly that "no city or village
shall "have power to abridge the right of elective franchise."

The cities of Vancouver and Victoria, British Columbia, have adopted
the Hare system of proportional representation for the election of their
councils. Vancouver (with a population of about 100,000) is the
largest city in America using this system. In January of this year the
Hare system was used for the first time generally in Irish municipal

Among larger cities which have recently adopted the city-manager
form of government are the following: Lynchburg, Petersburg, Newport
News, and Hampton, Virginia; Tallahassee, Florida; Dubuque, Iowa;
Moskogee, Oklahoma; Watertown New York; Beaumont, Texas; Colo-
rado Springs; Pontiac, Michigan. Under the new census figures,
Akron, Ohio, where the city-manager form went into operation on
January of this year, is now, with a population of 208,000, the largest
city-manager city. The secretary of the city-managers' association
reported in April of this year that the total number of cities having
the city-manager system in some form was 180. Of this number, 115
have '^standard commission-manager charters," the others having

* This paragraph was supplied by Mr. L. E. Carter, director of the Cleveland
Bureau of Municipal Research.

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introduced the office of manager without adopting the commission-
manager system in all its typical features. Interesting data^on these
cities, relating to population, type of city-manager form, etc., is given
by the secretary in the April and May issues of the Naiional Municipal

. In Sacramento, which has operated under the commission form for
eight years, a charter providing for the city-manager form is voted on
at the election this month. If approved by the voters and ratified
by the state legislature which meets in January it will go into effect
on July 1,1921.

Among the amendments submitted by the N^ebraska constitutional
convention which adjourned in March (and adopted in September) is one
which simplifies the process whereby cities of 100,000 (including Omaha
alone) may acquire a ''home-rule" status as to scope of powers and
future change of charter. The amendment makes it possible for Omaha
to acquire that status by a simple vote on the question, without the
necessity of resorting to the machinery for adopting a new charter.

In Minneapolis the electors are voting at the election this month
upon the question of assmning home rule. A charter commission,
appointed by the district court, has decided not to frame a new charter,
but merely to bring together the charter enacted by the state legislature
thirty years ago, with the later amending laws, rearrange these in syste-
matic form, and submit the whole to the voters. The voters can thus,
by approving this docimient, acquire the power to amend their charter
in the future without depending upon legislative action.

The city of Detroit has recently established an important innovation
in its judicial machinery. In place of the two former more or less
independent courts — ^the police court, of three judges, having jurisdic-
tion of misdemeanors, and the recorder's court, of two judges, having
jurisdiction of felony and city ordinance cases — there now exists a
single crimin&l court, to be known as the recorder's court, which pos-
sesses all kinds of criminal jurisdiction. This change is expected
materially to reduce the delays and imcertainties inherent in the former
system, which secured for professional criminals comfortable respites;
this protection, under the old system, came, in felony cases, from the
provision for preliminary hearing in the police court and trial in the
recorder's court; in misdemeanor cases, from the provision for trial
in the former coiwt with right of appeal and new trial in the recorder's
court. The bill was bitterly fought in the 1919 session of the state
legislature, and the opponents seciu'ed some modifications of the original

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bill, one of them requiring reference of the bill to the voters of Detroit.
Following a keenly contested popular campaign, the act was approved
at the election held April 5 of this year by a vote of 106,132 to 30,617.
It is expected that with the unified criminal court there will be to some
extent a functional division of jurisdiction whereby the different judges
win specialize in certain classes of cases, such as domestic relations or
traffic cases. A psychopathic clinic is to be conducted in connection
with the co\irt. The Citizens' League of Detroit, which has taken
the lead in other recent civic movements in the city, was the chief factor
in securing the success of the movement for this court. In devising
its plan for the unified \;ourt it obtained the assistance of the American
Judicature Society.

Street-railway Problems. One of the most perplexing problems
now confronting city authorities in all parts of the coimtry is that
created by the condition of the street-railway industry. In the numer-
ous conflicts in connection with urban transportation troubles all sides
usually agree that the electric railway industry is not at present per-
forming the public function assigned to it. The difficulties are well
known: many systems, in large urban centers, in the hands of receivers,
others on the verge of insolvency; shrinkage in the values of street-
railway securities, and impairment of credit; labor troubles; neglect of
needed extensions; inadequate service. These conditions have been
evolving during several years, have developed numerous critical issues
among owners, employees, city authorities, and city electorates, and
have given occasion to various investigations, plans and reports. Some
of the more t3i)ical or significant recent developments in connection
with transit problems in various localities are noted in the following

Unusually interesting features are presented by the recent course
of events in Toledo, Ohio. During the past decade the city and the
Toledo Railways and Light Company have been engaged in frequent
disputes in connection with negotiations as to fares and renewal of
franchise grants. The company has been operating without a franchise
since the final expiration of its franchises in March, 1914. The develop-
ment of events since that date has been marked by many bitter issues
and some freakish tmns. For a period in 1914 some passengers paid
the five-cent fare demanded by the company, while others, by offering
the three cents ordered by city ordinance, rode free because of the
refusal of conductors, obeying orders of the company, to accept the

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latter amount. Following decisions by the United States district court
that the three-cent fare ordinance was confiscatory and that as long
as the company had no franchise the city lacked authority to fix fares,
the company was able to collect fares fixed by itself. After the company
had raised fares several times the city decided to deny to the company
the use of its streets. An ouster ordinance was passed in 1919 to go
into eflfect July 31. The ordinance was prevented from going into
effect on that date by a referendiun petition requiring submission of
the ordinance to popular vote at the November, 1919, election. At
that election the ordinance was sustained by the narrow majority of
slightly over 800 in a total vote of about 40,000. A few days later,
before any action had been taken or threatened by city officials to
enforce the ordinance (in fact, according to the statement of city
officials, following their assurance to the company that no immediate
steps would be taken), the company startled the administration and
the public by withdrawing its cars from the city and the state during
the night, explaining that they regarded the ouster ordinance as self-
enforcing. Then, following a statement from the court that it could
not order the company to restore its cars until the council should take
8(nne action to permit the use of the streets by the company, the council,
early in December, amended the ouster ordinance by postponing its
operation imtil April 1, 1920, provided that the company should im-
mediately resume operation at the rate of fare in effect at the time of
the withdrawal. Thereupon the company, upon order of the court,
resumed service under those conditions. Next, the council, at the
suggestion of the court, authorized the court to appoint a commission
to consider the whole situation and work upon drafts of alternative
ordinances for submission to popular vote, one to provide for mimicipal
ownership and operation and one for a new franchise based upon the
service-at-cost principle; the commission to be divided equally in
composition between those favoring the two respective policies. The
latter branch of the commission, after several months work in frequent
conference with the president of the company, failed to produce any
ordinance, because of inability to reach any agreement with the company
upon the issue of valuation, and upon some other points.

The mimicipal ownership branch of the commission, in order to
determine the powers of the city, instituted a suit in the state courts
to test the authority of a city to issue bonds for the purchase of a
street-railway or other transportation system, the issue being whether,

Online LibraryWestel Woodbury WilloughbyThe American political science review → online text (page 68 of 77)