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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: Odum, Howard Washington Title: Attainable standards in municipal programs Place: Chapel Hill Date: 1921 . 'i MASTER NEGATIVE « COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD IfT*** mm - - ■ • ■••-*'. an>*^^^^^-A - ^^ jPvir o AUG 8 WJWt \AA RESTRICTIONS ON USE: FILM SIZE: '2)lo(K^ TECHNICAL MICROFORM DATA REDUCTION RATIO: an IMAGE PLACEMENT: lA (U^ IB IIB DATE FILMED: ^li^hs INITIALS: W.v>) TRACKING # : omt FILMED BY PRESERVATION RESOURCES, BETHLEHEM, PA. A^' '^ S'i/A -v? %f4f > O a m -n CD O ■D lo CO X rsi en 3 3 Q) > O ^2 o m CD O O^D -z. ^ o o X < N X M a »^ .x^>>" A^ ^^^. 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N. 0. «3^'-%' )iQ>70 ^^Q Cdnmbta (Hnibmftp LIBRARY School of Business UNIVERSITY EXTENSION DIVISION University OF North Carolina Extension Bulletin LIBRARY SCHOOL OF BUSINESS ATTAINABLE STANDARDS IN MUNICIPAL PROGRAMS A Partial Report of the First Regional Conference OF Town and County Administration Held at Chapel Hill, September 19, 20, 21, 1921 Prepared by HOWARD W. ODUM, Ph. D. Kenan Professor of Sociology and Director of the School of Public Welfare PUBLISHED BY THE UNIVERSITY Entered as Second-class Matter, Sept. 1, 1921 CHAPEL HILL, N. C. Administration Appropriations-May 1.1920 TO May3I,I92I •18.728.00 Distribution of Estimated Expenditures For 13 Months Distribution of estimated expenditures for a ITortli Carolina small city. See pages 73-81. ir TABLE OF CONTENTS INTRODUCTION PAGE Purposes op the First Regional Conference on Town and County Adbanistration 5 President Harry WooDBURN Chase TO THE Conference 10 Professor E. C. Branson to the Conference 11 CHAPTER I Attainable Standards of Active CiTizENsmp and Study. Messages from President Harding, Mr. Hoover, Mr. Daniels, Mr. Baker and others 12 Greetings from the League of Minnesota Municipalities .... 14 Editorials from the Greensboro News, the Raleigh News and Observer and the AshevUle Citizen 14 Address: Attainable Standards of Public Welfare by President W. L. Poteat of Wake Forest College 17 The University Series in Training for Citizenship 20 CHAPTER II Attainable standards of Mutwcipal Social Services. Area, Situation, General Administration, Financial Organization, Town Planning, Sanitation and Housing, Public Health. Public Welfare, PubUc Safety, PubUc Works and Utilities, PudHc Re- creation, Public Education, Voluntary and Civic Services, Ser- vices to the Rural Community 23 CHAPTER III Forms of Municipal Government. Progress in Municipal Government in the United States: H. W. Dodds, Secretary, The National Municipal League 28 The Commission Form of Government and others: T, B. Eldridge, Mayor of Raleigh 31 City Manager Government in Durham: R. W. Rigsby, City Man- ager 33 TheCity Manager Plan in Hickory: R. G.Henry, City Manager . . 35 r Progress in Goldsboro under the City Manager Plan: W. M. Rich, P* City Manager 37 Elizabeth City and the Outlook: J. B. Fereebee, City Manager . . 41 Westerville, Ohio; Report: R. W. Orebaugh, City Manager . . . .41 CHAPTER IV PAGE Attainable Stajtoards in Finance. Introductory Statement: D. D. Carroll, Dean of the School of Com- merce, University of North Carolina 45 The 1921 Special Session 45 The North Carolina Municipal Finance Act— An Interpretation: A. C. Mcintosh, Professor of Law, University of North Carolina . . 46 A Critical Review of the North Carolina Finance Act: Arthur N. Pier- son, Member General Assembly, New Jersey 54 Problems of Municipal Finance in North Carolina: Gallatin Rob- erts, President of the North Carolina Municipal Association, May- or of AsheviUe ^1 State Supervision of Local Accounts: T. H. Waddell, Director of Ac- coimts, Massachusetts State Department 66 Budget-making and the Citizen's Interest: Lionel Weil, Chairman Finance Committee, Goldsboro 73 Interpretation of Local Government in Terms of Accoimting: Bax- ter Durham, State Auditor, North Carohna 84 The 1921 Bonding Act 91 CHAPTER V Attainable Standards in General Social Services. Aspects of City Planning: Morris Knowles, City Planning Engineer, Pittsburgh 94 Attainable Standards for Commercial Organizations: C. W. Roberts, President of the North Carolina Commercial Secretaries .... 97 The Community Council: J. F. Steiner, Professor of Social Tcehnology University of North Carolina 108 Attainable Standards in Commimity Recreation: E. C. Lindeman, Professor of Sociology and Economics, Greensboro College for Women HI Attainable Standards for the Schools: N. W. Walker, Director of the University Summer School 113 PubHc Health, PubUc Welfare, Libraries: (See County Relation- ships) CHAPTER VI County and Municipality. County Government and Public Education: E. C. Brooks, State Superintendent of Public Instruction 114 Attainable Standards in Public Welfare: Mrs. Clarence A. Johnson, Commissioner of Public WeKare 118 Standards of Pubhc Health Work: W. S. Rankin, State Health Offi- cer 122 Attainable Standards of County Schools: Edgar W. Knight, Pro- fessor of Rural Education, University of North Carolina . . . 122 Attainable Standards of Library Work, for Town and County: L. R. Wilson, Kenan Professor of Library Administration, University of North Carolina 126 li MUNICIPAL PROGRAMS INTRODUCTION Perhaps there is available no more appropriate introduction to this partial statement of the proceedings of the First Regional Conference on Town and County Administration than the follow- ing letter received by the University Extension Division. Gentlemen: I like the motto of the University: "Come to the University when you need help." I need help. What are the duties of the mayor of a small town? Yours truly. If this inquiry be revised to read, "What are the duties of the mayor, or commissioner, or city manager, and how may he perform these duties faithfully, keeping in mind the justice and welfare of the people and at the same time the progress and efficiency of his town?" it will become typical of scores of situa- tions constantly developing and obtaining in North Carolina Municipal Administration. Here is another mayor. His town is in debt. It has little money to pay its teachers and certain other honorable obligations. Some bonds are about to mature and there is no money in sight. Its streets are bad. Its public works and utilities are undeveloped or inefficient. Its children bave out- grown its schoolhouse as does the small boy bis clothes. The people are not interested for the most part. Those who are interested do not know. Can anyone help? For still another official the problem is stated differently. The people are interested, deeply interested, and eager to authorize the necessary progressive measures. Tbey demand that their municipality rank with the best in its municipal social services and its progressive appeal to all aspects of life. They want the city to be a "better place in which to live." But how is it to be done? What is the price necessary to pay for the increase in taxes? Wbat are the possibilities of raising revenue for permanent improvements? What are the limiting laws and economic condi- tions? What is the best form of government to utilize in the newer plans of progress? How utilize the citizen interest and V 6 ■ I Attabstable Standards in Municipal Pbogsams combine all efforts in the development of a greater municipality? How avoid the mistakes made by other municipalities ? Still others reflect the complaint of the people that taxes must be reduced. What then is the price to be paid for reducing the taxes? How can streets and utilities and health and the public good be conserved and developed without money? How can the town make progress without the conservation and promotion of the public good ? How can all these things be done on the present financial basis? How can any additional finances be obtained? How interest the people in services more than taxes? How direct government into business methods? How so introduce business methods as to save the needed money? How bring additional wealth into the community for more taxes? How influence community organization, through its chamber of commerce or other possible groups, to bring about the desired ends? How make taxes profitable and appear so to the people? Other queries are no less difficult, specific or comprehensive. How shall administrative officers without pay devote sufficient time and attention to municipal problems to insure success? How can executives, without pay, become informed on the fundamentals of administration ? As phrased by one : "How am I to carry on my own business, maintain the town in prosperity and safety, and attend conferences on methods of town administration ?" How can the offices be magnified so as to attract the best men? How can those in authority, naturally inexperienced and without tech- mcal knowledge, attain efficient methods? How avoid tremendous waste of money because of efforts, honest and industrious, but undirected? How, finally, direct the community into plans and methods executed by trained officials ? And how find the trained officials after all? How and when can they be trained? Other individuals and other groups make still further inquiries. Has the state n^lected its municipalities? Has it devoted less attention and oversight to the cities than it has to the country side? Or does it over-supervise when it does legislate? Does the state give sufficient freedom to local governing bodies? Is there a tendency to centralize and limit self government? Does the state allow municipalities sufficient leeway in planning the future revenues, both for current expense and permanent improvements? Does the state tax the larger corporations adequately but refuse to allow the local municipality to levy adequate taxes? Does the state allow municipalities sufficient lee-way in planning the future of their development ? Has the state, in its progressive programs i " University of !N"obth Carolina 7 for education, health, public welfare, and roads, done well by its towns and cities? Thus arise inquiries from individuals and groups, both in and out of the fifty-five cities of census size in I^orth Carolina, and from the 413 incorporated smaller towns. The problems stated apply alike, in varying degrees, to the half-dozen cities with more than 20,000 population; to the fourteen cities with more than 10,000 population; to the forty with between 2500 and 10,000 population ; and to the more than four hundred that are but towns and villages. And because IN'orth Carolina is becoming also a state of increasing urban life the challenge to make ITorth Caro- lina towns typical of the best social and economic life of the state is marked. What are some of the available means? Are all working together? Is there conscious and organized effort to bring about the best possible results? Is the editorial statement that this field has been neglected true? Have national and re- gional conferences been too technical and specialized? Are dis- cussions too "academic" to be helpful? Other considerations, looking toward the need of such a con- ference and of continuing efforts, are important. The !N'orth Carolina Municipal Association, banded together, partly formally and partly with informal meetings, has done substantial work. Members suggest that there is need for more work and for larger affiliation. It is suggested by them that the University offer more definite programs and means of cooperating with towns and cities and their officials. There is need for a beginning in this work. Others look to iN'orth Carolina to help. The League of Minne- sota Municipalities, for instance, has a membership of 183 towns. They say, "The League looks to the leadership of N'orth Carolina to give information and to lend experience." This, North Caro- lina may offer, if she will. The l^ational Municipal League joined heartily in the cooperative plan for a regional conference, and Mr. H. W. Dodds, Executive Secretary, has expressed the belief that such a conference might be a noteworthy milepost in the development of better municipal administration. The widespread interest in the subject of the conference was further evidence of its timeliness. The press, not only in I^orth Carolina, but in many states, reported prominently the plans of the conference and commented editorially. From the front page story of the New York Times to the small-town Florida news- paper; from the associated press items in the eastern dailies to the comments of the middle western editor, there was ample evi- dence of the keen interest now manifest in the problems of local 8 Attainable Standards in Municipal Fbogbams . I administration. The editorials in the Carolina papers were of special help and indicative of the opportunity which the Univer- sity is called upon to meet — an opportunity which must be recog- nized at once as too large to meet, except by gradual steps and with the cooperation of all those involved. Perhaps the comment of the Greensboro News was typical of the possibilities ahead: If the conferees at Chapel Hill can get our people in the habit of taking thought about their governments, so that the work started by the conference can be kept up; if it can inculcate in us some re- spect for knowledge and training in government ofBcials, it will have done a wonderful thing for the towns and counties of the state. At any rate, the hopes of all the people are necessarily with it. Its success means much to all of us. There was, finally, the plan of the University Extension Divi- sion, in the organization of its Bureau of Municipal Information and Research, to offer certain services to the municipalities of the state. The first efforts of this Bureau, worked out through the School of Public Welfare, were the plans for a first Regional Conference on Town and County Administration. The emphasis upon county administration was limited to the important aspects of correlation with towns; to the continuation of certain move- ments begun years ago by Dr. Branson; to the planning for a great conference next year when the N'orth Carolina Association of County Commissioners meet at Chapel Hill; and to the emphasis upon all local administration, such as was given by Hon. E. C. Brooks, Commissioner Johnson, Dr. Rankin and President Poteat. The purpose of the conference was stated "to make concrete, definite and substantial contributions to present-day critical problems in the development of American democracy and to make usable to the people the important facts of local government." This report does not purport to be any sort of complete story of the problems of local administration and their solution. In accordance with the considerations mentioned above it is a be- ginning, and with the emphasis upon the social aspects of our towns and cities, and their county affiliations. It can include only so much as was available at the conference and certain other items of interpretation. Its emphasis is upon "attainable stan- dards" and it should be followed by other reports of other confer- ences much more important in the future. The report is offered in the same spirit in which Mayor W. S. Roberson welcomed the delegates to Chapel Hill. "We often affirm," the Mayor said, "that people have the sort of government they want. This is n Univeesity of ITokth Carolina • full of truth and full of error. For how can the people all the while know what sort of government they want? How can they attain to those indefinite and unexpressed ideals without the knowledge and experience necessary? That all the people may know what sort of government they want and how greater services may be rendered, groups of experts and groups of practical ex- perience gather together. May they not help to direct? May not Chapel Hill welcome them in this spirit?" In the same in- trepretation of "welcome" and in the spirit and purposes indicated in the address of President Harry Woodburn Chase which follows, this report is passed on to all who may find it usable. At the first general session of the conference E. C. Branson, Kenan Professor of Rural Social Economics in the University, presided and opened the sessions with a brief statement or two ap- propriate to the purposes of the conference. Said he: "Ten years ago in an address in Raleigh, President Alderman of the University of Virginia raised the question of whether or not democracies could ever be organized for etiiciency. His answer was. Yes — if public intelligence and publio concern about public matters can be raised to the level of competent, re- sponsible citizenship. A fairly accurate barometer of competent democratic citizenship, in my opinion, is the level of competency and honesty in levying taxes, in collecting and expending public revenues with minimum waste and maximum efficiency, in a pro- per system of public account-keeping and reporting to the tax- payer. The hope for efficient democracies lies largely in efficient public finance, and in the growing demand for efficiency in the business end of government. There is no hope for efficient public finance until the business affairs of government, local, state, and national, can be wisely removed from partisan politics and at the same time kept responsive to the public opinion of democratic constituencies. !N"o business rises above the level of its bookkeep- ing, and the bookkeeping of democracies is everywhere a standing reproach to public intelligence." The first Regional Conference in N'orth Carolina on Town and County Administration was largely a direct outgrowth of the State and County Conference held at the University in the fall of 1919. Mr. Branson presented President Chase, whose address follows; Hon. E. C. Brooks, State Superintendent of Public Instruction, whose address is printed on page 114; and Hon. Arthur N. Pier- son of 'New Jersey, whose prepared substitute paper is printed on page 64. !t I • I II PKESIBEISTT HARRY WOODBURN CHASE TO THE COKFEREI^CE It is my liappy privil^e, on behalf of the University, to bid this conference the heartiest sort of welcome tonight. I feel very deeply, and I am sure you will agree with me, that in one very real sense any welcome to you from us here is superfluous. Some one has said that every man nowadays has two countries : his own and France. That is a fine saying. But I like to think that it is true, that it is even more true, that every citizen of !N^orth Carolina has two homes — ^his own and the University. And so tonight it is just as home-staying members of the family, the great family of !N^orth Carolina, that we open wide the doors and bid you enter in, not to that which is ours, but to that which is yours. It was, I believe, just that feeling, that the University is the state's, an instrument of service for its welfare, that led the people of the state a few months ago so generously and adequately to strengthen its arms. We are, I assure you, sensible of the responsibilities thus imposed on us ; and I pledge you, as T^epresentative citizens of the state, that, so far as vision shall be with us, we will strive to be worthy of our trust. It seems to me that there is great significance in a gathering of this sort — a gathering of people who are intimately and respon- sibly concerned with vital problems of conmiunity administration — to work out and formulate through common counsel a forward- looking program in a field so complex and puzzling as yours. The final test of the success of popular government is not the strength of its swords, the stretch of its territories, or the number of its fortunes. Its test is the simple and yet searching one of the happi- ness and welfare of its citizens. Democracy must advance the common good or it fails. Problems of self-government, like all other problems, get more difficult as the elements that one must work with get more numerous and more complex. To make popular government really morh is a more difficult task in the twentieth century than a hundred years ago, just because twen- tieth century life and twentieth century civilization are so compli- cated, so difficult to grasp as wholes. And it seems to me that if self-government really is to maintain itself and to perfect itself, it will be because responsible men everywhere, just as you are do- ing here, set themselves to a serious study of its problems, to a Univebsity of !N'okth Caeolina 11 b search for facts and for real remedies for whatever may need correction. And, further, popular government works and will work in state and nation just in proportion as it works in local communities effective and wise. Local self-government is the foundation on which the whole structure of democracy must always rest. Local problems are state and national problems writ small; a man must first of all be a good citizen of his home-town. It is with this sense of the importance of your mission that the University bids you welcome tonight. What you are about here is, in the best sense of the term, University work — the search for truth. We have much to learn from you, active workers in the fields you will discuss. The deliberations of the "State and County Council" here two years ago were in no small measure responsible for the establishment here of the school of Public Welfare, under whose auspices, you, in a very real sense a part of that council, have come together here. We ask of you just this question: What will you have us to do? To the extent of our resources and our capacities, all that we have is yours. 1 1 , » ■ , CHAPTER I ATTAINABLE STANDARDS OF ACTIVE CITIZENSHIP In the newer discussions of local administration there is an increasing emphasis being placed upon active citizenship, along- side the standard technical problems of function, organization, and local areas. Perhaps this is the basic point from which the goals of efficient function and organization must be reached. Certain it is that no matter what the form of local government or what its facilities for expression may be, there can come complete community development "only if the government will so speak to the people that they gain the impression of a thinking, feeling, acting entity, continually immersed in plans for the wel- fare of the whole community." And so one of the objectives of the Regional Conference was a clearer interpretation of the prob- lems of citizenship, of the need for study and active participation in local government and for the renewal of the ideals of American democracy as expressed in the fundamental relations between community and government. It is, therefore, with pleasure that the following interpretations of the conference, some of which may well constitute permanent contributions to the literature of local government, are presented. The eager response which President Harding's message to the conference met gave evidence of the timeliness and force with which he presented the subject. His message follows : "My attention has been called to the Regional Conference on Local Government, which you are about to hold for a broad consideration of the social, industrial and technical problems of local government. "It is a pleasure to record my hearty endorsement of the effort you are making, and to emphasize the need which I believe exists for an earnest, continuing presentation of those subjects to the people throughout the country. The problems are manifold and difficult, accentuated by the complexity of conditions which have arisen during and following the war. There has been an inevitable tendency, be- cause of the overwhelmingly important work which confronted the National Government, to rely unduly upon it for performance of many functions which can only be discharged properly by local administra- tive entities. This, together with the further fact that our country's UinVEKSITY OF !N'0BTH CaBOLINA 13 rapid growth, and the consequent difficulty of adequately planning local governmental machineries, has resulted in a certain inefficiency of the minor administrative organisms which greatly needs to be corrected. It will be corrected whenever the attention of the people is fully aroused and the national genius for adminstration is effec- tively applied. I have no doubt that such conferences as the one you are about holding will be of much value in accomplishing these ends, and there- fore I want you to know that you have my best wishes. Of great significance is the interpretation given by Hon. ITewton D. Baker when he affirms that the schedules of subjects to be dis- cussed are "particularly wise, as it seems to me, in identifying the commercial and social aspects of municipal administration with the financial considerations, all of them being tied together in the mind of any really constructive municipal executive." And Hon. Josephus Daniels strikes a sympathetic Carolina chord when he says: We are learning in these days that government does not all revolve around the courthouse and the jail, but that it touches every concern of the home, the health, the education and the welfare of the people. We need to emphasize and re-emphasize that government is not some- thing set up by somebody somewhere that imposes regulations and rules upon us, but that government is ourselves. It can be no better and more efficient than the average of the units which make up our population. If the people who desire only the common weal are in- different, those who wish to work selfish ends through the agencies of government, will pervert the agencies to their own ends. Eternal vigilance by all the people is the price to be paid for real democracy. Mr. Hoover sends a typical interpretation of public service : The greatest public service today is devotion to the upbuilding of our community institutions, our town governments, our town and country improvements, our schools, and all that multitude of volun- teer institutions in promotion of education, recreation, and commerce. The war created a great lot of people who wish to lean on federal and state governments. Our country was built by pushers, not leaners. Progress of the nation is simply the sum total of local progress. We go backwards the moment we destroy the initiative of our people by constant extension of federal authority. / I II' I u 14 Attainable Standards in Municipal Pbogeams From the League of Minnesota Municipalities : The League of Minnesota Municipalities extends its greetings to the Conference on Small Town and County Adiminlstration, which is meeting at the University of North Carolina September 19-20-21. The Conference is a new and important one. It is entering upon fields for study that are fertile in their opportunity for usefulness — fields that have escaped heretofore the continuing and concentrated interest, not because they are less important, but because they have been hidden from the general view. If the Conference can but make a mere beginning into an extensive study of county administration, its success is fully assured. The League of Minnesota Municipalities, containing 183 cities and villages, is also interested in the small community. Minnesota, com- pared with North Carolina, is a very new state. Its recorded history scarcely covers the span of a lifetime. In 1850, when the territory of Minnesota contained its present boundaries and in addition more than half the territory of North and South Dakota, its population numbered 6077. In 1920, it numbered 2,387,124, scattered about in 692 cities, villages and boroughs, of which 655 contain less than 5000 inhabitants. The League's problem, therefore, is largely the problem of the small town. The League looks to the leadership of North Caro- lina to give information and to lend experience. We trust that your Conference will be reported in detail, that it will be an annual affair hereafter, and that the pioneer work of North Carolina will attract the notice of its sister states in making new steps of civic progress. From the Greensboro Daily News: The mayor of Greensboro and the city manager are, or were yester- day, at Chapel Hill, we are informed. We hope that the information is correct, for we believe that that is where they belonged. The first National Regional Conference on Town and County Administration is in progress there, and it behooves every man connected with munici- pal or county affairs to be on hand if possible. For town and county administration have suffered infinitely in this state as the profession of teaching has suffered from a curious delusion that anybody is competent. As a matter of fact, no business is more diflScult to administer successfully, no business has greater need of the experience and special knowledge of specially trained men. The business of this conference, according to the program is "to make concrete, definite and substantial contributions to present-day criti- cal problems in the development of American democracy and to make Univeesity of !N^obth Caeolina 15 usable to the people the important facts of local government." It is an ambitious project, but surely not an unattainable goal. The conference has a number of speakers listed on its program who are able to give to the visiting delegates much concrete information on various local problems. That, in itself, will make the meeting worth while. But we are impressed with the belief that it may ac- complish a greater work if it is only able to give an impetus to consideration from a scientific viewpoint of the affairs of towns and counties in North Carolina. We have had entirely too much hap- hazard government. We have been far too easy-going, too much inclined to agree literally with the Scriptural pronouncement that sufficient to the day is the evil thereof, and consequently too little inclined to provide against the evils of the future. How many towns in North Carolina have any definite, well-thought- out plan for material, let alone any other, development? Greensboro has a city plan, indeed, but can this city be said to have a genuine policy? Time after time the suggestions in the city plan have been blithely ignored by the city government. Indeed, we know of no case where the expediency of the moment has been waived in favor of the development of the future. That sort of thing is opportunism of the worst variety. It is not carrying out any policy, not even a bad one. How could it be expected, then, that the affairs of our cities and towns should ever be in anjrthing but a chaotic condition? We invite chaos. We play for it. We deliberately make it inevitable, and then cus« the government. If the conferees at Chapel Hill can get our people in the habit of taking thought about their governments, so that the work started by the conference can be kept up, if it can inculcate in us some respect for knowledge and training in government officials, it will have done a wonderful thing for the towns and counties of the state. At any rate, the hopes of all the people are necessarily with it. Its success means much to all of us. From the News and Observer: The University, the National Municipal League, the North Carolina Municipal Association, the North Carolina Commercial Secretaries and the North Carolina Association of County Commissioners will partici- pate in the Town-County Conference to be held at Chapel Hill, Sep- tember, 19-21. Undoubtedly every community in the state which pretends to have a government of any sort can get valuable information by having a representative at this conference. In the multitude of counsel there 16 Attainable Standards in Municipal Pkogeams is wisdom. The last word has not been spoken on any subject, and from the talks of the experts and others, community developers and pro- moters will acquire much that will be helpful and stimulating. Example is a wonderfully inspiring thing. Local authorities who attend the coming meeting and learn there about the aggressive work that is being done in other communities will go back home with a new zeal for achievement. And with the zeal there will be the practical information which will have been gained. The conferences of various kinds which are being held at the Uni- versity are having a gratifying result. They are knitting the various parts of the state closer together and aiding in bringing about a sjrm- metrical and harmonious development. The Town-County Conference next month should have a large attendance. From the Asheville Citizen: If there is any keen interest left in the preservation of local self- government it should show itself in the attendance of the Conference on Town and County Administration to be held at the University of North Carolina. In his letter of regret that he cannot be present, Secretary Hoover remarks that the war left us with an increased num- ber of those who wish to lean on the Federal Government; but says Mr. Hoover, 'Our country was built by pushers, not leaners.' It grows increasingly difficult for most people to say where the line is which separates state and county functions, or state and federal activities. But instead of debating so much over that boundary line, why not focus some energy on strengthening the local units? When these units are more robust they will naturally find more to do and not some way to avoid doing it. Reports on county and city administration reveal an amount of ignorance and general inefficiency in many sections that make it re- markable that local governments have survived at all. There is no better way to begin the work of rejuvenation than by the conferences conducted every year at Chapel Hill. '\ « r ATTAINABLE STANDARDS OF INDITIDUAL PUBLIC SERVICE Abstract of Address by President Wm. Louis Poteat ITotice first the terms of the topic. "Attainable Standards" shows an admirable caution, ^o refinement of ideals without limitation of actual conditions is permitted. The standards must not be too high; they must be within reach. Human nature is still human nature. One may believe in its perfectibility while one doubts its present perfection. Selfishness is still here. It has been too long the survival instinct of all existence to be very much mitigated as yet. On the other hand, I decline to accept the doctrine, "Every man for himself." Undoubtedly there is now as a result of our recent experience a new sense of our social solidarity. We are seeing as never before that the welfare of each is a condition of the safety of all. Besides, we cannot doubt what Kuskin insists upon, that social action is often the result of the play of the personal and social affections. "The Public Service" — what is comprehended here? A syn- optical view is presented, and your attention is called to the enormous extension of the functions of government represented in this synopsi* as compared with the early nineteenth century theory. ^ 1. Protection of person and property. a. Legislation. b. Interpretation and application of law to particular cases. c. Administration of law. 2. Provision for the dependent. a. Employment and pay for the unemployed. b. Maintenance for the aged and infirm. c. Education and opportunity for the children. 3. Promotion of the public welfare. a. Internal improvements; public works. b. Transportation and communication. c. Public sanitation; quarantine. d. Social betterment. 4. Imposition and collection of taxes to meet the expenses of this varied public service. i '■> y 18 Attainable Standards in Municipal Programs The topic suggests two general questions. First, what may be reasonably expected of the individual citizen in private life? Second, what may be reasonably expected of the individual citizen in public life? The individual citizen in private life may be reasonably expected to support by influence and money (taxes) the society of which he is a member and whose benefits he enjoys. It would be dishonor- able to accept the advantages of ordered society and to decline its obligations. That would be too much like the attitude of the United States Senate to the Treaty of Versailles, indefensible because immoral. In the second place, the private citizen may be reasonably expected to exercise the right and duty of the suffrage in all good conscience. That will involve information about men and meas- ures. There is great need to break the political machine, to defeat the boss by multiplying bosses. The private citizen may be expected to maintain the * law of the land. If he does not like the law of the land, he has the privilege of moving to a land which has the law he likes. There is not a little of uninformed talk about "personal liberty." It would seem to be perfectly obvious, and yet it needs to be repeated, that law is the expression of the intelligence and morality of the majority of the community for the guidance and control of the minority, whether the community unit be the school district, the municipality, the county, the state, or the nation. All law is a limitation of personal liberty. Any type of society is possible only on condition of its supremacy, and the interest of the group must determine the extent of the limitation of the personal free- dom of its members. The stage of progress of a community may be measured by the limitations which it imposes upon its members for the common advantage. If the average citizen is intelligent and social-minded, the group may be trusted with the largest degree of democracy; if ignorant, self-seeking, or debauched, nothing can save democracy from disintegrating into anarchy. But good men not rarely dis- regard their civic obligations. Indeed, among the most dangerous enemies of the social order are the respectable, the moral, and the intelligent. They are preoccupied. They say it doesn^t pay. In other cases, they are superior. They say that political life is an offensive scramble in which one gets mud, if not worse. Their theory is, stay out and avoid trouble, reminding one of Lord Melbourne's advice to Victoria, "Try to do no good, and then you will get into no scrapes." V ^> 'i ^ University of KTorth Carolina 19 The individual citizen in public life ought to be amenable to the reasonable standard of character and efficiency. He must be patriotic and reliable, otherwise he is not to be trusted. He must have the particular type and grade of capacity which his official position demands, otherwise he is incompetent. I am afraid our public servants suffer in comparison with those of other countries — England, for example. One reason is that so often irrelevant considerations control their appointment to office. You are famil- iar with the considerations commonly urged in support of any given candidate: "Availability; fought in France; large gifts to public enterprises; long and favorable service to the party; sup- ported me in my campaign; out of a job (put a man in charge of the public business who has failed in his own) ; the young lawyer seeks publicity. I have heard of a IN'orth Carolina man who stood for the Legislature in his county for the purpose, as he said of getting "a new date for his stories." Another reason for the relative inferiority of our public officials is the fact that with us, politics is a profession, rather than a service. And then fit men stand aloof. The results in the administration and conduct of the public business are disastrous. In the first place, there is a free field for the parasite, the favorite, and the demagogue. Things are delivered over too often to the ignorant, to the cunning and energy of the closely organized enemies of society. In the second place, there is an interminable mass of legislation, overlapping, local, superfluous — in general, monumental incompetence. Some insist that we need to strengthen and train the police force against the multiplied crime which now afflicts us. Enlarge the forces of suppression. Call on the K. K. K. to aid constituted authority. There is no hope in this direction. The K. K. K. with its fe-fau-fum, mumbo-jumbo, thirteenth century mummery is an insult to the intelligence of the time, and an out-and-out slap at the existing apparatus of justice. Our only hope lies in educa- tion of the right sort, education which supplies the social motive in a quickened sense of social obligation, while it enhances intel- lectual capacity and range of interests. Ruskin says: "Let us reform our schools and we shall find little reform needed in our prisons." I have read of an old English schoolmaster retired in his later life to the dignity of constable. He wondered at the respect which the community seemed to pay to his constable's club. He forgot that these men and women once as boys and girls sat on the school benches before him. THE UlNTIVERSITY OF NORTH CAROLINA SERIES IN CITIZENSHIP AND COMMUNITY GOVERNMENT 1. The North Carolina Year Books, edited by E. C. Branson, Kenan Professor of Rural Social Science. A series rich in content and methods of community study and control. a North Carolina Wealth and Welfare, 1916. b. County Government and County Affairs, 1918. c. The State and County Council, 1919. d. State Reconstruction Studies, 1920. e. North Carolina, Industrial and Urhan, 1921. 2. Patriotism and the Schools, by Edward K. Graham, then President of the University. An address before the State Teachers' Assembly. 12pp. 3. The American University and the New Nationalism, by the late President Edward K. Graham. Reprinted by the Extension Bureau from the Johns Hopkins Uni- versity circular. 12pp. 4. Comparative Government and National Ideals, by W. W. Pierson, Professor of History in the University of North Carolina. A syllabus for the study of government. 54pp. 5. Reconstruction and Citizenship, arranged by L. R. Wilson, Kenan Professor of Library Administration. An after-the-war series. 14pp. 6. American Ideals, by Norman Foerster, Professor of English. A syllabus for the use of Extension centers. 14pp. 7. Citizenship for Women, by D. D. Carroll, Dean of the School of Commerce. A manual of instruction for Women's Clubs. 55pp. 8. The American's Creed and Our National Flag, by L. A. Williams, Professor of School Administration. A manual for Teachers, in the After-war series. 16pp. 9. Our Heritage, by Edwin Greenlaw, Dean of the Graduate School, and J. H. Hanford, Professor of English. A manual of American Ideals; for use of Women's Clubs. 50pp. ^ I % University of Noeth Carolina 21 10. Constructive Ventures in Government, by Howard W. Odum, Kenan Professor of Sociology and Director of the School of Public Welfare. A manual of Discussion and Study of Woman's newer Part in Government. 98pp. 11. Problems in Citizenship, by Mise Nellie Robeson, Chief of the Ex- tension Bureau of Public Discussion. Based on No. 10 and additional material. 31pp. 12. Community and Government, by Howard W. Odum. A special edition of No. 10 for use in Schools. 106pp. 13. Training for Citizenship, by J. G. DeR. Hamilton, Professor of History and Government, and E. W. Knight, Professor of Rural Education. Report of studies of War Education, published by the War De- partment. 30pp. 14. The Making of Citizens, by J. G. DeR. Hamilton and E. W. Knight. Now in Press. 15. Social Service and Public Welfare, prepared by The School of Pub- lic Welfare. A manual in co-operation with the Chairman of Social Service of the State Federation of Women's Clubs. 14pp. 16. Attainable Standards in Municipal Programs by Howard W. Odum. Report of the first Regional Conference on Town and County Administration. 137pp. 17. See also the Bulletins on Community Drama and other com- munity studies and the University News Letter, which goes to 20,000 homes weekly the year through. I. COURSES FOR MUNICIPAL OFFICIALS The Univereity of North Carolina is prepared to give special training for municipal officials. The following four year course, prepared by the School of Commerce will be given with the cooperation of the Depart- ments of Engineering, Rural Social Science, Political Science, and the School of Public Welfare in the University. Other special courses may be elected if desired. Fbeshman V English 1 History 1 History 2 Mathematics 1 Modern Language Mathematics 2 Modern Language Geology 5 Geology 6 Drawing 1 Drawing 2 Sophomore Drawing 3 Economics 1 Economics 2 English 4 English 3 Modern Language Psychology 1 Modern Language Physics 2 Surveying 1 Physics 1 or Economics 15 or Chemistry 2 Chemistry 1 or or Zoology 2 Zoology 1 JUNIOB Accounting 1 Accounting 2 Accounting 3 Engineering Engineering Engineering Principles 1 Principles 2 Principles 3 (Streets, Highways, (Lights and Power) ("Water and Sanitation) and City Planning) Government 2 Principles of Statistics Government 1 Social Psychology Government 3 Sociology 2 Sociology 7 (The Small Town) Senior Employment Management Municipal Government Municipal Government Municipal Accounting Sociology 10 Puhlic Finance Public Finance (Municipal Administra- Sociology 8 Economics 16 tion and Sanitation) (Community Organi- (Theories of Reform) Business Law zation) Business Law Law of Municipal Business Law Corporation Finance Corporations Industrial Management Business Organization PubUe Utilities «' CHAPTER II ATTAIANABLE STANDARDS IN AREAS, FUNCTIONS ORGANIZATION AND CITIZENSHIP Howard W. Odum, Director of the School of Public Welfare The classification given below may serve as a sort of table of contents for this volume, although necessarily there will be many items in the standard classification of duties and functions not treated in this report. Wherever the subject is discussed, the page number is given opposite the item in this chart. The chart may also be used, if desired, as a measuring scale by which the status or progress of any given municipality may be gauged. It may be used as a standard indicating the scope of municipal social services in a well developed town or city. The extent to which all services listed here may be attempted will be determined by local and practical considerations — the size of the munici- pality, the cooperating agencies, private and public, the wish of the people, the financial condition of the town, and other factors. This chart, together with President Poteat's "Attainable Stand- ards in Civic Endeavor" may well constitute an admirable pre- liminary course in civics for towns. Other features may be added by those who find opportunities, or who believe that the list is incomplete. Others may be subtracted where necessary. Still other features, listed but not discussed at this conference, may well be set aside for special discussion and treatment at the next annual Town and County Conference in August 1922. From this chart should arise, not only consideration of the immediate pro- gram of the work for the town and city, but the beginnings of the next program of municipal officials. The items listed in the chart are not arranged logically according to function and organization, but are somewhat intermingled with the idea of scope and func- tions most emphasized. When it comes to private and voluntary services to the municipality or services to the rural community, some may question the regularity of including such items in any technical classifications of organization and function. And yet the need for civic cooperation and active citizen interest would never be questioned as a large contributing factor in the develop- ment of municipal conmiunities that are healthy, wealthy and wise. !N'or will the fact be questioned that the modern munici- I 24 Attainable Standards in Municipal Pboobams I « pality must not only be "city building" but it must also be "country-serving" as it relates to its rural constituency. This is true not only for its own development and growth but for the sake of the surrounding fields from which come its resources and its new population. How does each municipality measure up according to the standards listed? How many will score forty or fifty of the total sixty points enumerated, omitting the items of situation and size? Or how many municipalities are planning to bring about a continuing progressive growth of town and services? How does each municipality compare with its neighbor? Or how do North Carolina cities and towns compare with those of other states ? For general discussions of the individual conditions of !N'orth Carolina towns see the forth-coming Bulletin on "ITorth Carolina, Urban and Industrial," prepared by Dr. E. C. Branson from the year's work of the I^orth Carolina Club. f' \ •J it i I i i I K\ * \ ATTAINABLE STANDARDS IN MUNICIPAL SOCIAL SERVICES CLASSIFICATION DETAILS PAGE 1. Large enough and small enough to support a good govern- ment with civic interest and cooperation 114 2. Not necessarily the census size city of 2500 population of which there are 55 in North Carolina, nor the average for this country of between 2000 and 5000 population 94 3. The small town of which there are more than 400 in North Carolina— the very bulwark of state and national power ... Ill 4. Increase in size according to ability to maintain standards ... 97 LOCATION AND POSITION 122 1. Health, accessibility, economic prosperity— conditions upon which to base municipal program _ __ 2. Location made more healthy by municipal programs 3. Better accessibility through development of roads and high- ways 4. Better economic bases through development of commerce and rural areas GENERAL ADMINISTRATION.. 28 1. A charter adequate to the social and economic needs 37 2. A plan of government which will bring out civic cooperation . . 17 3. Preferably the City-manager plan 33 4. Commission or Mayor-council plan 31 5. A judicial system, adequate for social justice 6. An election system, good in plan, good in tradition FINANCL^ ORGANIZATION AND METHODS 45 1. A system of scientific budget-making 73 2. A system of accounting, cost, operation, records 73 3. A safe plan for financing public improvements 61 4. A soimd method of assessing and collecting revenues 114 5. A system of auditing satisfactory to local and state authori- ties 66 6. Business methodsin government 45 TOWN PLANNING 94 1. A fair look-ahead for health, happiness and prosperity 97 2. A plan for recreational facilities, parks, spaces, playgrounds . . Ill 3. A plan for the extension of streets, transportation facilities, terminals 94 4. A plan for industrial development and for more or less zoning 95 6. A plan for the development of new residence sections, hous- ing for workmen and for increasing population 96 6. A plaii for civic and cultural centers, residence and industry . . 108 SANITATION AND HOUSING _. 1. Insi)ection of congested and ne^ected areas 2. Sanitary inspection of housing and factories 3. Disposal of garbage and sewage 4. The supervision of building and construction 5. Town wide plans for cleanHness and filth prevention 6. Others ^ ji.^ :il u 26 Attainable Standards in Municipal Pbogbamb PAQB PUBLIC HEALTH 1. A 83rstein of medical inspection services 122 2. Adequate hospital services, either in or near the town 3. A S3r8tem of food, milk, meat inspection services 4. A 83^tem of child welfare services 118 5. A system of laboratory services : • • • : 6. A statistical service, for publicity and direction PUBLIC WELFARE — 1. A plan for correlating all relief and assistance 108 2. Systematic outdoor relief on a constructive basis 3. A good system of institutional reUef 118 4. The supervision of prisons, reformatories and other in- stitutions 5. Juvenile court work in accordance with the best standards . . 122 6. Constructive and preventive work and publicity PUBLIC SAFETY 1. A good organization of the Police system 2. The regulation and control of traffic, transportation 3. A good system of apprehending and correcting the offender .. 4. An adequate system of fire protection 5. Substantial plans for fire prevention 6. Adequate plans for protection from vice and harmful in- fluences PUBLIC WORKS AND UTILITIES. 1 . A good system of street construction and maintenance 2. Construction of sewers; disposal plants, city buildings, farms or other city properties 94 3. The maintenance of a city market and other city owned pub- Uc service agencies 4. Ownership or supervision of water works 41 5. Ownership or supervision of light and heat plants ......... 41 6. Ownership or supervision of transportation, communication or other public utilities PUBLIC RECREATION 1. The supervision of commercialized recreation Ill 2. The promotion of play and recreation and the profitable use of leisure time 3. A system of parks, playgrounds and open spaces 112 4. A system of organized and directed play and recreation .... 112 5. A plan for a civic and social center 6. Others PUBLIC EDUCATION 1. Effective organization and administration 114 2. Careful selection, equipment and supervision of teaching. . . 113 3. An adequate curriculum, classification and grading of pupils . 4. Good school hygiene in groimds, buildings and methods 122 5. The school serving the whole community 6. A civic interest back of the school 4 •I t ^ University of N'orth Carolina VOLUNTARY AND CIVIC SERVICES 1. Cooperation between officials and private agencies in pub- lic service, libraries, weights and measures and other ser- vices 2. A community council or clearing house for all voluntary agencies 3. A live chamber of commerce 4. A good atmosphere in which the other needed voluntary agencies may work ^ 5. Cooperation with the churches and denominational edu- cational institutions 6. Others SERVICES TO THE RURAL COMMUNITY. . 1. A "coimtry-serving" as well as "city-building" municipa- pality 2. The promotion of economic welfare in the country 3. The improvement of communication and transportation 4. The promotion of better organization and cooperation 5. The improvement of social and school conditions 6. An all-county chamber of conunerce 2T PAGE 108 9d 108 IT 97 At the second evening and general meeting Mr. H. W. Deeds, Sec- retary of the National Municipal League, presided and emphasized the importance ef the general social services of local gevemment. He introduced Dr. W. S. Rankin, State Health officer; Mrs. Clarence A. Johnson, Commissioner of Public Welfare; and President W. L. Poteat, whose addresses are printed in this bulletin. «' \ CHAPTER III FORM OF MUNICIPAL GOVERNMENT PB0GBES8 TS MUNICIPAL GOVERlVMEirT IN THE UNITED STATES H. W. DODDS, Secretary National Municipal League The curse of our municipal government in the past, as with our state government, has been its puzzling complexity. Early in the last century our cities followed the federal plan of two chambered councils and an elected executive. At this point, how- ever, they diverted from the model for fear of a strong mayor. They made the mayor weak as an executive giving him little control over his subordinates, many of whom were elected inde- pendently. By such a system of checks and balances it was supposed that the various departments of government would be set over against each other in a condition of perfect equili- brium. The liberty of the citizen would thus be protected against autocratic officials who would otherwise selfishly gather power to themselves to the disadvantage of the people. This complicated system, difficult to administer at best, was further darkened by the adoption of the spoils system. "To the victor belong the spoils" sounded like a good sporting proposition and the American people accepted it in an uncritical spirit. IN'aturally municipal elections followed national party lines since the strength of the party rested upon its local units. The theory of democracy seemed to demand that all public offices be elective no matter how small or obscure they were. Thus local elections formed the battle ground for contending political organizations and it was to be expected that when one party got control of the elective offices they would not stop until they had extended their control to all appointive offices and employees as well. This situation was indeed a dark background for the develop- ment of effective municipal government capable of fulfilling the manifold important duties now performed by our cities. Of course the unwieldy structure was not so costly while the objects of municipal administration remained simple. When our cities *The session on Municipal Government was presided over by Professor J. G. deR Hamilton, Head of the Department of History and Government of the University. •V f' University of !N"orth Carolina 29 spent only a fraction of what they spend today, when there was no need of a sanitary engineer or a street railway expert, when tax assessments were easily made and when the engineering problems of the city were practically nil, a confused, purposeless, political administration could be endured; but when the affairs of our cities came to involve millions of dollars in wealth and highly technical problems of management and engineering, the older form of legislative and administrative organization broke down completely. The shame of our cities became a by-word and something had to be done. The National Municipal League was the first national organi- zation in the field. In 1898 it drafted a model municipal charter which reflected the best thought of the time. The principles outlined in that document pointed the way along which we have been proceeding ever since. This charter has, of course, been kept up-to-date by subsequent modifications. It now provides for the city manager form of government and has been followed in hundreds of cities and towns throughout the country. The keynote of government today is not complexity and checks and balances but simplicity and responsibility. For the execution of policy we require a closely knit organization under a single head, with clear lines of responsibilty focussing at the head. Instead of electing eighteen or twenty officials, as the "New Eng- land town meeting used to do, we are learning that experienced administrators and technical men cannot be secured by popular election. We have further learned that when a long list of officials are elected on co-ordinate terms there is no real co-ordi- nation in practice. Each pulls and hauls in his own direction and there is no supervising plan to bring order out of chaos. So we have provided for the city manager plan, the city man- ager chosen not by popular election but by a small body of elected representatives who are able to study intensely the quali- fications and experience of candidates and to act accordingly. The city manager is given the power to appoint his subordinates and to remove them. He thus becomes completely and inescap- ably responsible for their conduct individually as well as for the results of the administration as a whole. IN^ote that the city manager is chosen as an executive and is not a political choice. This means that broad questions of policy have not entered into his selection. It is not the city manager's job to decide questions of policy. That is the council's job. It is the city manager's job to carry out the policy handed down by the council. Attainable Standards in Municipal Programs !N"ote that the city manager has not been chosen at a political election. Therefore, he has not had to make political pledges or to kiss a baby to land his job. The .council are chosen repre- sentatives of the people. With them rests the determination of policy. The people as a rule are perfectly able and willing to choose their l^slative agents because they are chosen on the basis of honesty and policy. We trust them with the law making power. For the execution of the law we rely upon a specially designated agent. The city manager form of government is simply the culmi- nation of a process which has been going on for over a generation. Its purpose is simplification of organization and the removal of the spoils system. Most of our cities have abolished the old two chambered council. A great many cities have adopted the commission government plan which centralizes in five commis- sioners all legislative and executive functions. Most of our large cities have adopted the so-called strong mayor. Unlike the old fashioned mayor the new mayor is given the power of appoint- ment and removal of his associates. He is thus compelled to accept more responsibility for city administration than he used to. ^Nevertheless the mayor is yet a politically elected official who is bound to reward by political office those who helped him to be elected. The same criticism applies to the commission form of government where we have both the appropriating and spend- ing power in the same hands. The commissioners are elected for political purposes without respect to pledges, experience or attainments. Thus a harness maker becomes chief of police or a barber commissioner of public utilities. This is no reflection on such men as members of a legislative body but it does mean that they have not the equipment necessary to administer the technical details of a great department. The most hopeful thing about political life today is the deter- mination on the part of the people to secure a simplified govern- ment so organized that responsibility can be clearly located, and in so doing to remove from the administration the political spoilsman. We are beginning to accent service in public-service. And ser- vice to a political party no longer suffices to make an acceptable public servant. 1 I ^ * I t i THE COJIOaSSION FORM OF GOYEBNMENT AND OTHERS J. Mayor T. B. Eldbidoe, of Raleigh Prior to the municipal conference lately held at the University the writer accepted a place on the program for discussion of municipal government as it exists and functions in N^orth Caro- lina; but time and opportunity were not found for discussion of the subject, and a request was received later for an expression of his views in writing, to which this is his response. Being mayor of a city operating under the commission form of government, it was expected of the writer that his opinions would be favorably prejudiced toward the type of city govern- ment which he represents. This assumption, however, is correct only within certain limitations. If there were only two hard- and-fast forms of municipal government — aldermanic and com- mission — it is hardly open to doubt that he would choose the latter; but the question is bigger than that. When the writer came into office it was his impression that the mayor was an official with real executive authority, but his mind was soon relieved of that delusion. It early appeared that the office was little more than head of a municipal depart- ment. The situation might not be so bad if the limitations on his powers were understood by the public; but there has hardly been a day in the two years of his administration that he has not been reminded that the people look to him to bring things to pass, to give municipal service, and to correct conditions that give rise to complaint. He is painfully conscious that citizens suspect him of passing the buck when he represents that he is without authority or control over the police or fire depart- ments; that he cannot regulate sewer or sanitary service; that street cleaning, market regulation, automobile traffic, and abate- ment of nuisances are as far from his sphere of influence as the east is from the west. Early in his administration, feeling hampered by the restric- tions on the mayor^s powers, the writer consulted local lawyers and wrote to sources of municipal information to obtain a sym- posium on the status of the mayor of a commission government city. The replies were all to the same general effect that outside of his department (which in Raleigh embraces municipal records \ I r 32 Attainable Standards in Municipal Programs Univeesity of ]N"orth Carolina 33 • and accounting, taxation and revenue) he was only a ceremonial representative of the city— a figure-head, so to speak. One of the out-of-state authorities consulted, it is true, said that on occasions of insurrection or public calamity the mayor would be in supreme authority. But nothing has been found in the laws of North Carolina to bear out this statement. The general power of supervision given in the chartier, the lawyers say, means nothing more than that the mayor may examine the books and papers of all departments and may offer advice to the other commissioners. Quoting one of the commissioners of the City of Kaleigh, "it means nothing at all." It is clear, therefore, that the mayor of a commission govern- ment city comes far short of being a real executive officer, such authority as he has being restricted within very narrow limita- tions. Commission government as it functions in Raleigh may be likened to an industrial plant operated imder three superin- tendents who are supreme in their respective departments and responsible only to the stockholders without the intervening authority of a president, or to a bank in which the president, the cashier, and the teller act independently of one another. Imag- ine, if you please, a school without a principal or a school system without a superintendent. In the opinion of the writer, government without executive authority is essentially weak and lacking in efficiency; a govern- ment with three executives, each supreme in his own department, is for all practical purposes a government without an executive head. Three commissioners, each with a sphere of authority in which another cannot interfere, and responsible only to the people in elections held biennially unless, perchance, the right of recall is exercised, cannot in reason be expected to afford the best results in municipal service. The theory underlying commission government is that the system will call to the public service commissioners of the sev- eral departments who are especially fitted for their respective duties. It IS not for the writer to pass in judgment on the results usually obtained, but it is common observation that aptitude fw- politics goes further in municipal elections than fitness for office minus the other qualification. l^aturally, the question arises. What are you going to do about it? Candidly, it is easier to point out the weakness of the system than to discover a remedy. The situation is beset with difficulties which are apparent from a consideration of the basic principle on which the commission form of government is V i constructed. The writer has given a great deal of earnest thought to consideration of ways by which the hands of the mayor might be strengthened without impairment to the dignity of the other commissionerships ; and, frankly, he does not see how it can be done. Iti is plain, therefore, that where a change is desired a radical departure from the system is advisable. Three plans are here suggested : 1. Ketain the three commissionerships and elect a mayor with authority to direct their administrative activities and hold them respponsible for the manner in which their duties are discharged. 2. Abolish all the commissionerships and put a city manager in control of all municipal departments, with appointive officials answerable to him and subject to removal for failure to render the service the public has a right to expect. 3. Elect a mayor with full powers of administration, making the heads of all municipal departments directly responsible to him, holding their offices by his appointment and subject to removal by him ; with a city council or board of aldermen having powers of legislation, tax levying and budget making; and, per- haps, with authority to review the official administration of the mayor. CITY MANAGEB GOVEKNMEITT IN DURHAM City Manager R. W, Rigsby The invitation to talk before this gathering of earnest students and seekers after information carried with it the admonition to be brief. The word "brief" ordinarily is pleasing to the city manager and in the case carries with it absolution from the necessity of making a speech. I shall therefore talk briefly of a few matters within the scope of the city manager field. To summarize without making a few general remarks might seem abrupt and lack the proper connection with the purposes of this convention. We are here I take it to exchange informa- tion along the line of governmental betterment and efficiency. By a process of analysis and synthesis we may be enabled to gain a more effective method as regards the operation of our govern- ment in the town, county and state units. Effective government as affecting the city unit has occupied most of my time but I have not been and am not unmindful of the necessity of extending < i* n 34 Attainable Standards in Municipal Peograms this effectiveness to the other units. We will succeed as we demonstrate the benefits to be derived from effective operation and administration of city units. The city manager, if he is not a pioneer, is a scout who brings back tidings from the front line trench. He may carry some theories out to his activities but he brings back facts. He realizes that though science may be applied to the perfection of govern- mental machinery the dealing with his council and the people is an art and always will be. Though he may have thoroughly grasped the rules that apply to the general problems in hand he must be able to adjust them to meet varying conditions. He must not be so obsessed with the letter of the rule as was the young recruit who upon challenging his second lieutenant for the second time was sharply asked if he knew the rules. He immediately replied — "Of course I know the rules — The rules prescribe that one shall say ^Who goes there?' three times and then shoot." The program intimates that we are to talk on progress in North Carolina cities. For me to confine myself to this state would leave out the best part of my experience as I have been here only about two months. You will pardon me if I speak briefly of my experience in Bristol, Ya. Some two years ago I came to Bristol, Va., in the role of City Manager. I assumed the administrative duties of this city which is separated from a twin city just across the state line in Tennessee. The state line runs along the center line of Main Street and divides the city in nearly equal parts. It may seem beside the point to give prominence to a state line but in this case it had a remarkable effect. The opposition to the city man- ager form of government was not at all sure that the change represented a majority of opinion. They were very bitter and determined to make a failure of the whole proposition. What was more natural than to cause friction between the two cities on all points which cities so joined together are bound to have in comm.on. We started in immediately to perfect the governmental machin- ery. This consisted of reorganization of departments, depart- mental reports, a modern municipal accounting system, a complete city budget, and purchasing division where all city purchasing was handled. These things seemed unusual and uncalled for to the people who did not understand and formed the basis for the politician to raise the cry of an Utopian procedure. Particularly were we subjected to criticism when we had made a complete ->-i ' Univebsity of J^orth Carolina 85 contour map of the city preliminary to laying out a compre- hensive city plan. We finished the map and the city manager form of government came very near being completed at the same time. If the laws of Virginia would have permitted a vote on this plan of government at the end of the first year I doubt seriously if it would have held its own. At the end of the second year the whole sentiment had changed and it is gratifying to those who backed this form of government to know it is now firmly established with a confident and enthusiastic backing. And now turning to Durham I must say the past two months have brought before me a mass of information and many problems. The problems include perfecting an accounting system, putting in a modern city budget, and centralizing purchasing. We are now perfecting the governmental machinery and working out a system of reports and classifying the duties to be performed by each office. We feel that without an effective organization work- ing under definite rules we shall not be able to handle efficiently the big things to be done in Durham. The matter of organization and smooth operation are not all the problems. Others consist of the carrying out of a grade separation plan, extended street improvement, a comprehensive city plan, a market problem, enlargement of the cemetery, exten- sive water works development and many others. We hope our efforts in Durham may add greatly to the prog- ress of cities in iN'orth Carolina and we believe they will. It is my wish that the various cities set up some standards of com- parison so that we can compare notes and I believe we should come together often to discuss our problems. This convention will surely give a real impetus to the cause of good government in this state and I hope it is a fore-runner of many more. The officials who have in hand the affairs of government should meet often to compare experiences and prepare legislation to meet their various needs in properly handling the business for which they are responsible. THE CITY MAXAGEB PLAN Hf HICKOBY City Manager R. G. Hknbt The success of thd City Manager Plan in Hickory is a good example of how this plan works in a city of from 5000 to 10,000 people. The City of Hickory was the second city in the United States to have this plan, and although this plan has been in I < 36 Attainable Standards in Municipal Pboobamb effect eight and one-half years it is still thouglit very well of by the people. One of the present aldermen who fought the plan when it was voted on said lately, "We could never go back to the old way." Whether the City Government functions is square up to the City Manager and if it does not function the City Council know where to place the blame. When the present City Manager took over his position he found the City affairs were in as good shape as any well regulated business. All of the bills were paid, a good set of books were kept up to date and all of the departments were functioning properly. During the Summer of 1920 the City did two miles of main sewer and one and three-quarter miles of sidewalks. Bids were asked from contractors for both kinds of work but the bids were too high. The City went ahead and did their own work and saved $2100 on the sewers and forty cents per square yard on the sidewalks. Owing to the cost of materials this was all the work that was done during the summer but late in the Fall employment conditions got bad and on I^ovember 1st the City started work on their $125,000 Municipal Building. The best bid we could get from a contractor was $11£',000 which only left $7000 for land which cost $9300, seating for the Auditorium which cost $4100 and the furnishing of the offices, jail, and Fire Department. In other words we would have been in the hole before we started so we decided to do the building ourselves. This building is just finished and we have saved $29,104 of the taxpayers' money besides giving employment to citizens who needed work. By January 1, 1921 employment conditions were worse than in the Fall of 1920 and as property owners had put in numerous petitions for street paving we decided to do 40,000 square yards of paving. By starting our bond ordinances etc., at this time we believe we were the first City in ^orth Carolina to open bids for paving in the Spring. The contractors were short of work and we believed we would get a good price. We were not disappointed as we got a very low price. After we got started with the paving the demand for paving was so great that we con- tracted an additional 30,000 yards and then had more paving pe- titioned than we could do. In paving we only paved the main ar- teries, and by doing this there is no part of the city that our fire trucks can't get to in three minutes. University of !N"orth Carolina 37 We also did all of our own water and sewer extensions that was found necessary by the street paving. $2000 was at least saved in this work. Hickory has a "Model Charter," a Council of four aldermen and the mayor, all of them elected at large. Everyone of them are business men and not politicians. The City is run on business lines all the way through by hiring the best men and not the cheapest. On the construction work done by the City in the past one and one-half years the taxpayers have been saved $49,000 by using good business judgment as to when and how to do the work that the City had to have done. The City Manager is also in position to carry on the work similar to a Chamber of Commerce if the City is too small to support a Chamber of Commerce. There are lots of things that arise in every community but they have no one to place at the head and put it through. After working and writing for eight months the City Manager was successful in getting the mercantile fire insurance rates reduced in Hickory thus saving $4000 per year to the mercantile establishments of the City. The residential rate was already the lowest rate possible. From the above facts one will see that the City Manager form has been very successful in Hickory. Some of ^ese things might not have been possible in a larger City but it was possible here. Here we work on Ben Franklin's saying "Taxes wisely expended can not hurt any people. Only waste can bring bankruptcy." PROGRESS IN 60LDSB0R0 UNDER CITY MANAGER PLAN OF GOVERNMENT City Manaqeb W. M. Rich In the year 1916 several far seeing business men in the City of Goldsboro, realizing that the municipal government in effect at that time was not functioning properly, proceeded to set about the task of providing the city with a new charter which would provide for a coordination of the work of all departments of the city, thereby giving the people of this city the service to which they were entitled. A charter commission was appointed, and after much time and study it was decided to prepare a city manager amendment to the present charter. This course was ill 38 Attainable Standabds in Municipal Pboobams considered necessary on account of the strong opposition which developed against the commision-manager plan. The city manager amendment was passed by the 1917 Session of the General Assembly and was voted on by the citizens of Goldsboro at the regular municipal election held in May, 1917. The charter amendment carried by a very small majority, which indicated that the movement was not endorsed sufficiently to insure its popularity. The greatest error made in the adoption of the charter amend- ment was the retention of the old ward system of elections, together with the old Board of Aldermen and the sectional representation thus obtained. With a large unwieldy board, consisting of members representing their various wards, it is hard to inject the spirit of the manager plan into them and prevent them from appointing committees to investigate every trivial matter that comes up. The charter amendment as a whole is a very good instrument; but as I said before, the great- est handicap is the election of aldermen by wards and the seemingly difficult task of implanting in the various members a full realization and conception of the true workings of the city manager plan of government. In selecting the first city manager for Goldsboro, no effort was spared in attempting to obtain the services of an expert. Over five hundred applications were received by the committee appointed to make the selection. From the applicants for the position, Mr. E. A. Beck, manager at Edgeworth-Sewickly, Pa., was chosen. Mr. Beck came to Goldsboro during the summer of 1917 and remained until the fall of 1918, at which time he resigned to go into the army. During Mr. Beck's administration Goldsboro came to the sudden realization that it was no longer a small conservative city, but was rapidly growing into a pro- gressive and prosperous community. This rapid growth brought about the need for public improvements in the way of pavements, sewers and water main extensions. This much needed improve- ment work was begun in a small way in 1916, but the results obtained that year were an added impetus to the extensive pro- gram which was adopted later. Dr. I. M. Cashell was appointed city manager to succeed Mr. Beck. TJnde'r Dr. Cashelf s administration an exitensive program was commenced, in which approximately $700,000 was expended in asphalt pavements, $200,000 in sewers, and $100,000 in water main extensions. This work was commenced in 1919 and completed during the summer of 1921. The City of Golds- / t Univebsity of N'orth Carolina 39 boro now has over ten miles of asphalt, bitulithic and brick pavements. In addition to this the new sewers and water mains have made it possible for nearly every house in the city to install bath and toilet facilities. However, during this period of progress in public improve- ments, the city has been seriously handicapped in general opera- tion and maintenance, owing to the action of the 1919 General Assembly in passing the Revaluation Act and limiting the cities to a tax for general fund purposes in 1920 of only 10% more than was levied in 1919. Goldsboro was particularly unfortunate in this respect because the 1919 tax levy was very low and, as it turned out, was inadequate for the year. The consequence was that funding bonds had to be issued to carry on the city's business for the fiscal year ending May 31, 1921. At the 1921 Session of the General Assembly the Municipal Finance Act was revised in order to give the cities of N'orth Carolina the power to raise sufficient money by taxation to give the people service. This act was later found to be invalid and the City of Goldsboro, as well as other cities in the state, are placed in the same position they were in during 1920. This could have been remedied by calling a special session of the General Assembly in August, 1921 ; but for some reason the Governor could not see the necessity of this and refused to call it at that time, thereby making it necessary for Groldsboro as well as other cities throughout the state, to issue more funding bonds for the present fiscal year. It is a poor business principle for any city to have to issue funding bonds to pay for current expenses, and no city should be placed in that position by any state legislature. Is it fair then that progress be halted and the credit of the entire state impaired by the action of those we elect to represent us at Raleigh? I am sure if the people as a whole were more conversant with the government of our cities we would not be so terribly handicapped. However, in spite of everything, the City of Goldsboro has made rapid strides since the manager plan was adopted in 1917. The extensiveness of program for public improvements has already been shown. While handicapped in the general main- tenance and operation of the city on account of lack of funds, we have attempted to give the people of this community one hundred cents worth of service for each dollar invested by them. Realizing the importance of carrying out measures providing for the public health and safety of the community, we have tried to keep these departments intact, even to the extent of sacrificing work in other departments. After experimenting with an inef- I ! 40 Attainable Standards in Municipal Fbogbams Univebsity OF N'orth Carolina 41 fioient and inadequate health department, we finally decided to go in with the county on a combined city and county health department. This combination is giving entire satisfaction and is producing wonderful results. Under this scheme, in addition to the health officer and sanitary inspector who do work both in the city and county, we have a special sanitary officer for duty in the city alone. The food, dairy and sanitation inspection work is giving entire satisfaction and we are obtaining results. The mosquito control work, which comes under this department, has given excellent results during the two years it has been tried out. Our fire department has been equipped with a new 1000 gallon American LaFrance pumper and the number of paid men increased, which gives the city a very efficient department. The efficiency of the police department has been increased by the addition of a motorcycle policeman, which is a great help in enforcing the traffic regulations. A department of engineering has been authorized and a city engineer employed. This department will be organized to the fullest extent as soon as the funds are available. The street department has been reorganized and is doing good work in spite of the fact that very little money is available for this work. The street cleaning department has also been revamped and is now producing excellent results. Authority has been granted for the purchase of a steam roller and a motor-driven flusher and sprink- ler, the money having been provided by bond issue. These will be purchased as soon as the funds for operation are available. Ford cars have also been provided for the use of the street super- intendent and the water superintendent, thereby enabling them to give better and more efficient service. As to the general administration, a modern system of budget- making has been adopted and the budget appropriations are strictly adhered to. A new system of distribution of expendi- tures has been installed which will provide a more comprehensive report on the year's activities. To make a success of any city government the people must take an interest in it and cooperate to the fullest extent possible. In order to bring the government to the people, it was decided last winter to issue a bulletin to be distributed gratis throughout the city. The object of the bulletin was to keep the citizens informed as to the workings of the city government and to foster the spirit of cooperation. Several numbers of this bulletin were * I -r.-^k-*^ * \ t \ « 4 issued, but at the beginning of this fiscal year it was found neces- sary to abandon the scheme on account of the lack of funds. How- ever, in spite of all handicaps, the City of Goldsboro has made wonderful advancements since the manager plan was adopted, and even though those opposed to the plan try hard at times to disrupt the present organization, the people are beginning more and more to see the advantage of the system. Once the confidence of the people is established, the old time politicians will find that their efforts are in vain, and they will be forced to abandon all plans for changing back to the old time political regime. / \ ELIZABETH CITY AND THE OUTLOOK J. B. Ferebee, City Manager Having just assumed the managership of our city, it is natural that my knowledge of the vast amount of things needed is limited. I will say, however, that the problem of sanitation, which has given some trouble with respect to a number of surface toilets, is about to be remedied by having sewer connection for all places, and it is my hope that eventually the city will own its sewer system, which will make compulsory sewerage much easier to handle. Our paved streets have been allowed to depreciate by reason of the constant digging by the different utilities companies and not putting them back in shape. I shall certainly try to remedy this and advise all sister cities to carefully guard against promis- cuous tearing up of paved streets. Our crowded schools are about to be enlarged so that we may be able to take care of all the pupils for years to come, and a bond issue of about $400,000 is to be floated for that purpose. A well equipped fire department, an excellent police force and a competent clerical organization and fine coordination all around make the prospects for Elizabeth City's .present form of govern- ment highly promising. THE CITY MANAGER PLAN IN WESTEEVILLE, OHIO R. W. Obebaugh, City Manager Westebville, Ohio. Population 3000. Commission Manager Charter effective January, 1916. R. W. Orebaugh, the second manager, was appointed September, 1917; present salary $2700. X I 42 Attainable Standabds in Municipal Pbogbams The City Manager's office during 1920 passed through a busy year via street improvements and repairs, new water works im- provements, sewer and water extensions and renewing, extending and enlarging the electric light and power-distributing lines. By the way of street repairs. There were 250 separate and distinct patches made throughout our 12 miles of brick streets. These patches averaged approximately 5.6 square yards each and cost approximately $5.55 per patch. The results of this repair work were more than gratifying to the general public, and the cost of same was paid from the Village's share of the Automobile- license fund. By the way of Water Works Improvement. The first big step towards carrying out the new water-works program was completed, namely, constructing a 20 foot diameter reinforced concrete well, 31 feet in depth, laying about one mile of 6 inch C. I. force main and erecting a 200,000 gallon steel water tank and tower. This class of waterworks improvements was paid for from a bond issue, authorized by the voters in I^ovember, 1919. The policy of the present administration has been to make as many improvements to our utilities as possible from the earnings of the same. This proposition did not look very encouraging back in 1916 when the City Manager Administration took office, as they inherited several thousand dollars indebtedness in the water and light departments alone, which had to be cleaned up before much, if any, new work or policies could be inaugurated. How- ever, the close of the year of 1920 — or after £.Ye years of opera- tion — shows that we have made and paid for, from the earnings of our water and light plants, approximately $^5,000 worth of improvements, enlargements and repairs, and have operated strictly within the income of these utilities as well as every other department. Although the population of Westerville has only increased by several hundreds during the past ^Ye years, we have (by rendering good service) more than doubled the number of light and power consumers, all of which has necessitated considerable expense, (which has been taken care of by the departments income) to provide for this growth. We also claim that our rate of charge for light and power is cheaper to the consumer than the average municipality which operates this utility or pays direct to a pri- vate corporation. Sinking Fund. As far back as 1912 the amount received per year from taxation for general sinking fund purposes was ap- proximately $7000, from which the yearly interest charges on ^ \ « 4 / \ Univeesity op I^oeth Caeolina 43 general bonded debts of $4700 had to be paid. The tax duplicate has grown steadily since then, and the bonded indebtedness moder- ately, so that for the year 1920 (without increasing the rate) we received approximately $10,000 from which a yearly interest charge on general bonded debt of approximately $6500 had to be paid. Thus, in order not to increase but rather decrease our tax rate, the growth of our sinking fund has been somewhat handi- capped; however, the sinking fund to date has about $35,000 to its credit, which is practically all invested in Westerville Munici- pal Bonds. The present administration has increased the fund from $26,000 in 1916 to $35,000 in 1920, without increasing the tax rate. The following is a comparative statement of the tax rate per $1000 of valuation from 1915 to 1920 inclusive. 1915 1916 1917 1918 1919 19tO ueneral Health, Safety and Service Funds 13.15 $2.86 $2.65 $2.31 $2.26 $1.05 General Sinking Fund 2.80 3.46 3.60 3.06 3.57 3.85 Total Corporation Rate $5.95 $6.32 $6.25 $5.37 $5.83 $4.90 The bonded debt of the village is as follows : General (Street, Sewer, Water and Light) Bonds $178,301.00 Special Assessment Street Construction Bonds 43,878.00 Grand Total Bonded Indebtedness $222,179 00 On Jan. 1, 1916, the present form of government inherited among other things, $140,000 general bonds and $37,690 Special Assessment Street Construction bonds, or a total of $117,690. Therefore it is plain to be seen why the greatest portion of our corporation tax rate must be applied to create a sinking fund, and pay interest and amortize the Tillage bonded debt. I am heartily in favor of the municipality owned water, light, gas, sewage and other utilities, provided they are properly man- aged, and proper management of these utilities provides a source of revenue from which the municipality may make a great many improvements and betterments they otherwise would have to be deprived of or acquire through a prohibitive tax rate. Some of the advantages are cheaper street lights, cheaper light and power to all public buildings, cheaper and better fire protection, tax- payers or shareholders in the Corporation Utilities can draw divi- dends via lower rates of charge which should prevail for the product of the municipally owned public utility. Any municipal- ity should be able to employ an expert manager, and pay at least three-fourths of his salary and aJl the salaries of his assistants ^ if I- 44 Attainable Standards in Municipal Peogeams from the earnings of their utilities, besides having the benefit of this executive's time and experience for other departments of the Corporation. For the year 1921 we are planning to expend over and above fixed charges about $10,000 on new water and light improvement, all of which we are going to pay for from the earnings of these utilities. One of the fixed charges of our water and light department for the year 1921, under general administration, amounts to $5200 divided as follows: Three fourths of City Manager's salary $2025.00 Assistant to City Manager or Electrician .... 1620.00 Clerk Hire 720.00 Miscellaneous expense 835.00 Total $5200.00 Westerville is one municipality that could not employ a City Manager and keep within a fair tax rate without a paying water and light utility. I believe the people here are satisfied with the new form of government and are banning to realize that they are getting more and better service for their money than under the old plan, and I think a good City Manager can make the city government worth the price we have been accustomed to paying and also earn a fair salary for himself. Mr. P. C. Painter, City Manager of Greensboro was present and made one of the most helpful and interesting talks of the Confer- •ence. !N'o formal paper, however, was prepared for this Bulletin. CHAPTER IV PROBLEMS IN MUNICIPAL FINANCES THE WOBK OF THE 1921 SPECIAL SESSIOIT The special session of the ITorth Carolina General Assembly held in December of 1921 made no important changes in the North Carolina Municipal Finance Act. The only important aspect seems to be the exception of Madison County from the operation of the act. It will be well for anyone who is specially interested to order copies from the office of the Secretary of State. The dis- cussions which follow, however, are based on the Act as it now stands in all of its fundamentals and will therefore give the current interpretations desired. A city-planning bill was introduced but was finally amended so as to include only Buncombe and Hanover counties. Both Wil- mington and Asheville have undertaken plans for city-planning. A later bill extended this privilege also to Wake County, and Mayor Eldridge and others of Raleigh are very much interested in the working out of certain comprehensive plans. This bill and others may be had also from the Secretary of State; the summa- ries may be found at the end of this report. An important act was that which requires state supervision of municipal loan and bond issues which passed with few amend- ments. This bill is also appended at the end of this report and is of considerable importance to those who are working out pro- gressive municipal programs. Many bills relating to local munici- palities were passed, but no others that have to do with state-wide policies or principles. A careful study of the present legislation, together wdth the critical analyses herewith given, will enable the Conference to prepare further revisions or new acts such as may be necessary next year. DEAN CABBOLL'S INTBODUCTION TO THE SUBJECT Dean D. D. Carroll of the University School of Commerce presided at the meetings devoted primarily to finances and opened the discussion with the timely keynote of "cooperative finance." ^1 46 Attainable Standabds in Municipal Pbograms There is unity of interest and agony here, centering around two outstanding problems: First, failure on the part of citizens to recognize that municipal finance is just another form of cooperative expenditure, and co- operative expenditure in the most vital and intimate phase of every day life. The saving to the individual effected by joining with his neighbors in providing such safeguards as fire and police protection over individual provision for needs is obvious. The same bargain appears in cooperative provision for schools, good, clean highways, sanitary agencies, etc. But the average citizen fails to recognize such saving, and the correction of his attitude offers the greatest problem connected with this subject. Second, failure on the part of municipal officials to recognize the importance of taking the utmost care in administering such co- operative enterprises with the same efficiency as private enterprises. Means to this end may be found in the employment of the munici- pal budget, definite and effective application of funds, adequate and unerring accounting, and frequent and popular statements of stewardship in such a clear manner that the wayfaring man can not fail to recognize value received. THE irOBTH CABOLDTA ITUiriCIPAL FDTANCE ACT A, C. MolNTOSH, Professor of Law, University of North Carolina The power of a municipal corporation to incur debts, levy taxes, and appropriate money depends upon authority derived from the legislature. This authority was formerly contained in special charters, or in the general law, where the special charters made no provision therefor; but since the amendment to the Constitution requiring municipal corporations to be created under general laws and prohibiting special legislation with reference to such corpora- tions, this has been regulated by a general statute. The finances of a municipal corporation are applied to the pay- ment of necessary expenses, which may be divided into the ordi- nary current expenses of the government and the extraordinary ejqpenses, such as constructing and maintaining waterworks, elec- tric light plants, etc., and to expenses other than necessary. The Constitution, Art. 7, s. 7, (C. S. 2691) provides that no municipal corporation shall contract any debt, pledge its faith, or loan its credit, nor shall any tax be levied or collected by any officer of the same, except for the necessary expenses thereof, unless by a vote of a majority of the qualified voters therein. The munici- pal government may, therefore, contract debts for necessary ex- .>- TJniveesity of N'oeth Caeolina 47 penses without asking the consent of the people, either through the l^islature or by popular vote. What is included under the head of necessary expense is a question of law to be decided by the courts, but whether or not such expense will be incurred is within the discretion of the municipal government, subject to the control of the courts only in case of abuse of such discretion. Since all municipal power is derived from the legislature, re- strictions may be imposed upon the exercise of x)ower even for necessary expense, so as to require the popular vote or to limit the amount involved. In such case, however, it is not necessary that the popular vote should be a majority of the registered vote, but only a majority of those voting. For other than necessary expense and for the purpose of levy- ing a tax, Constitution, Art. 2, s. 14, provides that the legislative authority is to be given by an act which has passed its three sepa- rate readings on three several days in each house, and upon the second and third readings the ayes and noes must be entered upon the journal. In addition, for other than necessary expense, there must be a majority of the qualified voters in favor of the proposi- tion at an election held for that purpose. By C. S. 2693, which is the act of 1889, c. 486, the amount of the indebtedness for any city or town, for a special purpose, cannot exceed ten per cent of the assessed valuation of property therein for taxation. This was held, however, not to apply to debts for necessary expenses. Whrn^ton v. Greensboro, 146-356. As to municipal taxation, unless otherwise provided in the charter, the levy could not exceed fifty cents on the hundred dollars, and one dollar and fifty cents on the poll. (C. S. 2677.) This tax is required to be uniform and ad valorem on all property within the corporation. (C. S. 2678.) Since the constitutional equation between the property and poll tax did not apply to municipal corporations, to observe this equation, when the levy was increased by special authority, frequently made the poll tax burdensome. To prevent this, C. S. 2679, provides that the poll tax shall not exceed $2, but this does not apply to all cases nor to all towns. Under the recent amendment to the Constitution, the poll tax in cities and towns may not exceed $1.00. The levy of 50 cents on the $100 was held to apply only to ordinary run- ning expenses of the municipal government. Underwood v. Ashe- loro, 152-641. Instead of waiting to raise money by the ordinary means of taxation before it could be used, the municipal corporation may wish to borrow or to incur a debt to be paid in the future. This \ ~>v> 4S Attainable Standards in Municipal Pboobams could be done by issuing notes for temporary short time loans^ or by issuing bonds having a longer time to run. By the act of 1915, c. 66, cities and towns were authorized to issue bonds and levy assessments for local improvements, in which a part of the expense is to be paid by the municipality and a part by the property owners specially benefited. This is now the law as contained in C. S. 2703-2728, modified in some respects by subsequent statutes as to procedure in issuing bonds. For the purpose of regulating the issuing of bonds by munici- pal corporations generally, the act of 1915, c. 131, wtas enacted, which was intended to be in addition to, and not to supersede, other statutes authorizing the issue of municipal bonds. This was repealed, and the next act, known as the Municipal Finance Act of 1917, was adopted. (Acts of 1917, c. 138.) The preamble to this act states that it is intended to carry out the purpose of the amendment to the Constitution, providing for general laws for cities and towns, "to restrict their power of taxation, assess- ment, borrowing money, contracting debts, and loaning their credit, so as to prevent abuses in assessment and in contracting debts by such municipal corporations." This statute was reenacted, with some modifications, in the acts of 1919, c. 178, which is the form of the statute contained in the Consolidated Statutes, beginning with section 2918. Certain amendments to this statute were made at special session of 1920, c. 3. The whole municipal finance statute was re-written and re- enacted in the acts of 1921, c. 8, with various changes, containing somewhat more liberal powers than in the original act. When this statute came before the Supreme Court, in the recent case of Allen V. City of Raleigh, decided in June 1921, it was held to be void for the reason that it had not been enacted in accordance with the provisions of the Const., Art. 2, s. 14. This was held especially with reference to the power to contract debts, issue bonds and levy a tax, which are the most important parts of the statute. Whether other provisions regulating the procedure in passing a bond ordinance, holding elections, and the sale of bonds, are also invalid, does not clearly appear; but since these changes only reduce, instead of adding to, the requirements of the original statute, except perhaps in one respect to be noticed later, a com- pliance with the original statute would seem to be sufficient. The amending statute of 1920, c. 3", is expressly repealed, except as to three sections, two of which are minor modifications of the origi- nal act, and one referring only to counties. From the intimation of the Supreme Court it would seem that the present Municipal i A» "^ ..' ^ ^' LIBRARY 49 Finance Act is that contained in the Consolidated Statutes, until the legislature meets again and clears up the confusion which now exists. The Municipal Finance Act applies to all municipal corpora- tions. The main features of it are, fixing the beginning of the fiscal year; preparing a budget and an appropriation ordinance; providing for temporary loans; providing for permanent loans or investments" by passing a bond ordinance ; the issuing and sale of bonds ; limitation of indebtedness ; and fixing the limit of taxation. Fiscal Year. The fiscal year shall begin on the first day of June or the first day of September, as the governing body may determine. Budget. Within one month before or after the banning of the fiscal year the governing body shall prepare a budget based upon estimates furnished by the different departments of the gov- ernment. The budget shall show an itemized estimate of the appropriations necessary to be made for the year, including cur- rent expenses, permanent improvements, payment of principal and interest on debts before incurred, any deficit for the previous year, and a comparative statement of the two preceding years ; an itemized estimate of the revenues to be derived from taxes and from all other sources for the year ; and a statement of the finan- cial condition of the municipality. A copy of the budget ^all be filed with the clerk for public inspection, and a public hearing had thereon after due notica Bond ordinance. Within one month after the beginning of the fiscal year the governing body shall pass the annual appropria- tion ordinance, based upon the budget. Appropriations may be made before the adoption of this ordinance, to be included in those made by the ordinance; and the ordinance may be amended so as to transfer revenue to some other purpose or to apply avail- able revenue. Any unexpended balances at the end of the fiscal year shall revert to the original fund for future appropriation. Kevenues provided by statute to be applied to a special purpose must be included in the budget, but cannot be applied to any other purpose. Temporary loans. A municipality may borrow money to meet the current appropriations, in anticipation of the collection of the taxes and other revenues for the year, such loans to be paid not later than the 10th day of October, in the next fiscal year. Money may also be borrowed to pay the principal and interest of any judgment rendered against the municipality; and also to antici- kl 50 Attainable Standards in Municipal Peograms pate the sale of bonds authorized to he issued. Such loans are to he evidenced by notes to he executed in the manner, and to mature at the times, specified in the statute. Permanent financing, A municipality may issue honds for any purpose for which it may raise or appropriate money, except for current expenses. It may issue honds to fund or refund a debt payable at the time of the ordinance or to become payable within a year. Before issuing the bonds, the governing body shall pass a bond ordinance showing the purpose for which they are to be issued; the aggregate amount; that a tax is to be levied to pay the prin- cipal and interest ; that a statement of the municipal indebtedness has been filed for public inspection ; the average assessed value of property subject to taxation for the three preceding years ; the net debt outstanding. The bond ordinance shall take effect as specified therein, either at once, or upon a popular vote; or within thirty days unless a popular vote is asked for. If the bonds to be issued are for funding or refunding a debt, or for local improvements in which special assessments are to be levied, no popular vote shall be required. If the bonds are for other than necessary expenses, the popular vote is required; or the governing body may, in other cases, have the popular vote taken ; or it may be provided that the ordinance shall take effect thirty days after publication, unless a petition is filed asking for the popular vote. The statute provides for the manner of filing the petition and of holding the bond election. See the case of Comrs. V. M alone, 179-694.) In the bond ordinances or by subsequent resolution, the govern- ing body shall determine the periods for which the bonds are to run. This will depend upon the purpose for which the bonds are to be issued, and the maximum period for different purposes, running from five to forty years, is specified in the statute. Unre- lated purposes shall not be included in the same ordinance. Before the final adoption of the bond ordinance, there shall te filed by the proper offi'cer a sworn statement showing the gross dehi of the municipality, including outstanding debts not evidenced by bonds ; outstanding bonds, and the debt to be incurred under the bond ordinance. It shall also show the net debt, to be ascertained by deducting from the gross debt certain available funds, as unissued bonds, sinking funds, and unpaid assessments. It shall also show the assessed valuation of property for the preceding three years, and the percentage which the net debt bears to such i> u^^ i-r -3 .^ TJniveesity of N'oeth Carolina 51 valuation. The ordinance shall not be passed unless it appears that the net debt does not exceed ten per cent of the assessed valua- tion, or twelve and one-half per cent where the assessed valuation is not more than four millions, unless the bonds are for funding or refunding. The act of 1921 made the general limit eight per cent. This statement shall remain on file with clerk for public inspection. This limitation is discussed in the case of Crayton v. Charlotte, 175—17. A bond ordinance shall be published once a week for four weeks (act of 1921 has it two weeks) after its final passage, with a notice that any action or proceeding to question its validity must be commenced within thirty days after its first publication. After the expiration of such period no action or proceeding to question the validity of the ordinance can be maintained. After the bond ordinance takes effect, bonds may be issued at any time within three years, and the governing body may deter- mine by resolution the amount to be issued, the rate of interest not exceeding six per cent, payable semi-annually, the time and place of payment, the bonds to mature in installments or series. The statute provides for the formal method of issuing the bonds, with or without coupons, and also for their registration. The municipal bonds shall be sold at not less than par, upon sealed bids or at public auction after due advertisement, unless the sale is made to a sinking fund, or within thirty days after failure to receive a legally acceptable bid. The notice of sale shall be published in a newspaper published within the munici- pality, or in one published in the county and circulating within the municipality, or if no such paper, then notice shall be posted at the door of the building in which the governing body meets and at three other public places within the municipality. The notice shall be published at least once, containing a description of the bonds, the time and place of sale, the time for bids to be received not less than ten days after the first publication. In addition to the above manner of publication, the act of 1921 provides that a notice shall be published at least ten days before the time for receiving bids, in a "financial paper or trade journal published within the state, which publishes from time to time notices of the sale of municipal bonds." Whether this provision falls within the act in which it is contained is not clear, but it would be safer to comply with it; and the Supreme Court has held in Komegay v. Goldshoro, 180-440, that the News and Oh- server was a paper coming within the class designated as a "finan- cial paper or trade journal" in which the notice of sale could 52 Attainable Standards in Municipal Pkogbams be published; but in Comrs. v. Pruden, 180-496, it was held that publication in a local paper which did not usually publish notices of the sale of municipal bonds was insufficient. Bonds reciting that they are issued in pursuance of this act shall be incontestable unless an action or proceeding is begun before the delivery of the bonds. While the act provides that all municipal bonds shall be sold at not less than par, there is an exception that bonds sold out of a sinking fund may be sold for less than par. In Kornegay v. Goldsboro, 180-440, it was held that the legislature could authorize a particular municipality to sell its bonds below par, without violating the constitutional provision against special legislation. There are certain general restrictions imposed. ITo munici- pality shall make an appropriation of money except as provided in this act; nor borrow money nor issue bonds or notes except as herein provided; nor make any expenditure of money unless the money shall have been appropriated as provided in this act, unless it shall be in payment of a judgment or in payment of the principal or interest of a bond or note; nor enter into any contract involving the expenditure of money unless a sufficient appropriation shall have been made therefor, except for a continu- ing contract extending beyond the fiscal year. Taxation. The municipality is authorized to levy and collect a tax ad valorem upon all taxable property, sufficient to pay the principal and interest and to provide a sinking fund for the pay- ment of all bonds and notes issued for its indebtedness ; and such power to tax shall not be subject to any limitation prescribed by law upon the amount or rate of taxes which a municipality may levy. A general tax limitation was provided as follows: In the act of 1917 it was provided that for the purpose of raising revenue to pay the expenses incident to the proper government of the municipality a tax not exceeding $1.25 on the $100 valuation should be levied, "and a poll tax in accordance with the limita- tions of the Constitution." The act of 1919 fixes the same limitation, but says nothing about a poll tax. By the act of 1920 it was provided that for purposes other than the payment of the principal and interest on bonds and notes the tax rate should not exceed 50 cents on the $100. The act of 1921 provides that for the purpose of defraying the expenses incident to the proper government the municipality may levy a tax not exceeding $1 on the $100, with the sweeping provision "notwithstanding r V 'jrrL.^ ^f^' »* TTniveesitt of N'oeth Caeolina 53 any other law, general or special, heretofore or hereafter enacted, except a law hereafter enacted expressly repealing or amending this section." The act of 1921 came up for consideration in the case of Allen V. City of Raleigh, heretofore referred to. The City of Raleigh levied a tax of $1 on the $100 for the years 1921 and 1922 for current and general purposes, and also enacted a bond ordinance to issue bonds to the amount of $1,400,000 for the purpose of constructing sewers. An action was brought to restrain the collec- tion of the tax and the enforcement of the bond ordinance, on the ground that the act under which the city was operating was void, in that it had not been passed according to the requirements of the Constitution. The Court sustained this contention and declared the act void, at least as to those parts controlling the contracting debts and levying taxes. This act having been declared void, the law previously in existence (the act of 1920) would apply; but it appeared to be the intention of the l^slature to repeal this expressly, and it there- fore left the act of 1919 in force. Under this act the tax limit was $1.25 on the $100, and the levy in question was within this limit. But the Revaluation Act of 1919, c. 84, s. 3, provided that under such revaluation the amount of taxation should not exceed ten per cent increase over that previously levied until the legis- lature should provide for such increase. It appeared that in the case of the City of Raleigh, the levy of $1 on the $100 would increase the amount more than ten per cent, and therefore the levy was void. From this decision it would appear that the Municipal Finance Act, as now contained in the Consolidated Statutes, is the law now in force, certainly as to taxation and contracting debts; that under this act there may be a tax levy of $1.25 on the $100, provided this does not increase the amount of taxation more than ten per cent over that for the year 1919. Since this limita- tion, in the view of the governing body of many municipal corporations, will prevent their raising sufficient revenue to meet their expenses, a special session of the legislature has been asked for to remedy the defect. At such special session the whole subject of municipal finance will, no doubt, be again considered, and either the provisions of the present law placed beyond question or some new plan devised. The repealing clauses in the acts of 1917 and 1919 are not as clear as they might be, and considerable difficulty was expressed / ■I 54 Attainable Standards in Municipal Pboorams in compiling the statutes, with not a very satisfactory result. The repealing section of the act of 1921 is more satisfactory and something of that kind should be adopted in a future act so as to prevent any misunderstanding as to the meaning of the law, A CRITICAL REVIEW OF THE NORTH CAROLINA FINANCE ACT Abthub N. Piebson, Member General Assembly, New Jersey For the purpose of this paper, the 1921 Revision of the Munici- pal Finance Act is assumed to be the law. In general, the act is excellent and contains well recognized principles of public finance. With such an act in full operation, relieved of compli- cations arising from bad financing in the past, it must be evident that much good will result from its operation. There are a few suggestions that I am prompted to present in connection with some of its provisions, which have been emphasized by !N'ew Jersey's experience. The first is that the budget provisions, including the financing in anticipation of receipt of current revenue, should be entirely separated from the bond provisions, paticularly the temporary financing for capital expenditures, which only relates to the issuance of bonds. The act has universal application and the budget provision must be read and interpreted by many inexpe- rienced officials who would not be apt to keep up with procedures. The constant changing of officials has taught us in New Jersey that the two kinds of financing should be made very distinct and identified by different classes or kinds of instruments, so that the financing in anticipation of bond sales and that which is supported by tax revenues may be identified at sight. As I understand N'orth Carolina's provisions for collecting delinquent taxes by sale of property, it would seem that the time limit for placing the unpaid balance of obligations issued against tax revenues in the tax budget, should be extended two or three years. TJjider the present provisions, the obligations issued against tax revenues would be forced into the budget before the tax sales could take place. In this connection, it is suggested that the best budget policy would be to make an appropriation in each budget to cover uncoUectables, but as a definite safeguard, to avoid the piling up of floating indebtedness, a mandatory pro- vision such as above must be included in any well balanced budget act. H' ^'> TJnivebsity of l^oBTH Casouna 55 If Section 2924, referring to permanent improvements, refers to such permanent improvements as may be paid for out of the current revenues or taxes, in which case qualifying language should be used, this section is in order. It is asssumed, however, that the permanent improvements here mentioned might be inter- preted as those to be financed by bond issue. If the assumption is correct, such an item in the budget makes it unnecessarily complicated. It is recognized that only projects that are paid for from current revenues have a place in the budget. At the same time, it is accepted as certain that all outlays that are to be made from current funds during the year, must have a budget appro- priation for their support. The provisions of Section 2925 might be considered in connec- tion with the suggestion that the budget be printed in the news- papers or in pamphlet form and mailed to taxpayers. The theory in support of such a suggestion is that it is the people's business, concerning which they should have every information, and an informed public is the best pleased and most loyal. The provisions of Section 2929, allowing for the amendment of the budget to make available revenues not included in the original budget as anticipated, destroys the best purpose of a budget. If the proviso contained in the second paragraph of this section were moved up and attached to the first paragraph, after the word "purpose" in the fourth line, striking out all the interme- diate matter, North Carolina would then have a real and con- trolling budget. This would restrict all expenditures to the original budget revenues. It cannot be argued that this is not good practice, nor impracticable in operation. N'ew Jersey's municipalities and counties have made four annual budgets under such r^ulation and it proves a very wholesome check. This appears to me to be the most serious fault of North Caro- lina's budget act. Adequate control so vitally necessary in an effective budget, must be preserved by foreclosing any opportunity of supplementing the original budget. This point is so essential that it must be pressed for consideration. This section and the above suggestions have a bearing upon the principle involved. The following section and comments deal with the manner of preserving such control. The provisions of Section 2930 are not practicable. Appropria- tions are supported by taxes, fines, fees and numerous items of miscellaneous revenue. It would be difficult to determine which appropriation was supported by taxes, or what portion of a given 1)^ 56 Attainable Standards in Municipal Pkograms Univeesity of iN'oETH Carolina ST m appropriation was taxes and which came from miscellaneous reve- nues. If some revenues are definitely dedicated to a specific pur- pose, the identification can be preserved in the surplus revenues account as well as anywhere, and reappropriated from surplus revenues to the specific purpose. At the end of each budget period, unexpended balances of appropriations should balance into a surplus revenues account. All revenues received during the year, not stated in the budget as anticipated, should also be placed in this account immediately upon their receipt. Any miscellaneous revenues received in excess of the sum total as stated as anticipated in the budget, should also be placed into the surplus revenues account. By such provisions, control of the budget is maintained, and when the books are closed at the end of the fiscal year, the only open account is the surplus account, which should be treated for the new budget as revenues available for the new budget period. Such an account is similar to the P & L account in commercial bookkeeping. The above feature is that which makes N'ew Jersey's budget plan a controlling budget, as against the numerous other budgets which are not under control and which seriously fail for that reason. While New Jersey's act is much more restrictive in many particulars than the N"orth Carolina act, this one feature must be preserved, or any budget plan will fail in its most important function. Under Section 2932, the basis for borrowing is fixed as the amount of the appropriations. This is an unusual basis and would, it may be feared, lead to many unsatisfactory conclusions, as such borrowing would be upon unexpended balances of appro- priations, as well as upon the amount expended, and if carried to a final conclusion, would roll up indebtedness for which there was no support. A better practice would be to make the basis for borrowing upon the revenues anticipated for the support of the appropriations. The present language, if employed in commer- cial practice, would be like a merchant asking a bank to loan him to the amount of his indebtedness, whereas the banker would, no doubt, insist that the basis should be upon the merchant's receivables. An added complication would arise in determining the proper amount to be placed in the budget to retire obligations at the end of the following year. Section 2933 is necessary for any program of financing to preserve the credit of the municipality in marketing bonds, and * 4 'V"*****^^^ % * * * 1^- 4^ a\ I- 4 is indispensable in states that have tax limits. Tax limits of any nature injure the market standing of bonds at all times, and in stramed money markets often foreclose any bid for the offering. Procedure for Borrowing for Capital Purposes The provisions for issuing bonds are most excellent. The direct language sets up a very clear procedure, far better than the ISTew Jersey act. One or two features, however, suggest themselves for consideration; namely: Section 2952, The range of amounts due in the several years of the series The two and a half times range was evidently made to provide for a practically fixed amount of principal and in- terest falling due each year, or, foUowing the annuity practice. 11 this IS the purpose of the range, I would suggest inserting after the word issue" on the third from last line, the following "to the end that the interest, together with the principal payments lalling due m each year, shall be substantially of equal amounts.'' As the section now stands, it would, undoubtedly, be used aU too frequently to make the first half of the maturities, say $10,000 and the second half, $25,000, which can only be analyzed as plac- ing too great a portion of the burden too far from the best value of the improvement. If such a possibility should materialize it would throw out of control any debt limit. A consideration which should have weight when the annuity feature is employed, is that the replacements and upkeep factor €^hould also enter into the cal- culations. This, for the early life of the improvement, is not great, but as the improvement ages, experience has shown that a substantial overhead must be provided each year to keep the im- provement at par of efficiency. Consequently, there is substantial reason why this factor should also enter into the consideration, and if this is done, the range of maturities should be somewhat shortened, possibly to about double rather than two and a half times, and a qualifying clause added to the section so that the pay- ment of interest and principal shall be at its peak at the beginning of the series and gradually decrease as the series matures. Section 2957. The provision of Section 2957 in the next to the last line, is open to serious question. Keference is made to the use of funds from bond issues for marketing bonds. If this is in- tended to cover legal expenses, engraving and printing the bonds, It should be stated in such terms. "Marketing bonds" would ad- mit of the payment of commissions for selling bonds, which is exceedingly dangerous and is an all too handy way of defeating a public sale. For example, if the board in charge of the sale ^j i> f^ij V 58 Attainable Standabds in Municipal Peograms should agree with a bond house or hank to pay a 2% commission for marketing the bonds, the commission payment would be equivalent to giving such a party something that it did not earn. This is a very dangerous practice and one that could be used to destroy the 'best purposes of any sale provision. For instance under the present 6% money market, should 51/2% bonds be offered, no bids would be received. Then, no doubt, some parties would come forward offering to find a market for the bonds if a 6% sales commission were offered. This would possibly be equiva- lent to a 6% sales basis. Bidders of good faith would, thereby, be foreclosed m the competition and faithless issuing officers and unprincipled buyers would find a way of defeating the clear purposes of honest government. Tax Limits I am personally not an advocate of tax limits. In my survey of this means of controlling expenditures, covering some 15 or 20 years, the sum total of results has been anything but assuring. A budget policy that will absolutely force every expenditure properly chargeable to current expenses, through the controlling budget, is the best means of controlling extravagances. The budget, 'to- gether with the accompanying tax rate, would then express the true cost of government for the full budget period, bringing to the ^payer the knowledge he should have of governmental costs. This is the only means by which extravagance and unwarranted expenditures can be checked without at the same time hampering much good purpose. The means employed in the past for rolling back the costs of government enjoyed by that generation to some future generation, has deprived the taxpayer of a knowledge of what the sort of government he demands, really costs. Conse- quently, he has gone far in demanding better and more refined service without fully appreciating that such demand finds its reflection in increased taxes. Some communities demand, and are willing to pay for, greater and more refined service than others, and I believe they should be allowed to have it so long as the taxpayers of that budget period pay for the service they demand. Debt Limit North Carolina is to be congratulated upon its effort to have a uniform bond procedure, that has universal application, and under a fixed limit. Much embarrassment will be saved for the future by such legislation for municipal and county financing for capital purposes. K ■r. aN >. Univebsity of N'oeth Carolina If the assumption is correct that the cost of erecting schools is carried by the county, excepting special school districts which include a few cities, and this law does not include a program for financing county needs, then careful consideration should be given to the debt limit as set forth in Sub-section 2 of Section 2943, where 8% of the assessed valuation as last recorded, is fixed as the limit. This seems dangerously high when the liberal schedules of deductions are taken into consideration, and on the assumption that under a recent revaluation, property is now assessed between 70% and 80% of true value, a ^\% or six per cent limit is as high as can be carried mth safety. To prescribe a limit that mil produce an equitable control in connection with the special school districts, an exemption should be made for school indebtedness, say 3%. This would result in more equitable control. ^ It would be a part of wisdom to carefully analyze the limita- tion to ascertain what proportion of the annual tax levy would be absorbed by a debt service that was at its limit, as, regardless of limits fixed by law, there is an economic limit to the amount of taxes that can be placed upon property without destroying its value. An accepted theory is that 20% of the total revenues levied can be comfortably allotted to debt service and that 25% is the limit that property can carry with safety. Anything above this becomes dangerous, if not, in reality, confiscatory. This should be inter- preted to mean that a debt service burden of over 25% destroys faster than the benefits derived from the debt incurred, can create. It is a serious question whether exemptions of indebtedness for public enterprises should be made unless such enterprises are self-sustaining. Without this safeguard, this invitation is given for experiments and unwarranted adventure which may be most disastrous. It is observed that the average of the last three assessed valua- tions was employed in the original law, but omitted in the 1921 enactment, but the reason for omission is not apparent, as it is understood that the valuations were increased by the revaluation act from two to three times, which increased the borrowing power practically in the same proportion. Under the present rate, if two years of the old valuation and one year of the new valuation had been employed, the increase at a fixed limit rate would have been one-third, by another year, two-thirds, and in the third year, doubled. The cotnclusion would be that if municipalities ^functioned under the original act, no hardship would have been found in \ > IV I I : I ! 60 Attaiwable Standards m Municipal Peoorams keeping the average basis, the merits of which must appear to reason; namely that it lessens temptation to arbitrarily increase valuations for the purpose of obtaining borrowing power, thereby placing this important factor of control on a nataral Valuation Comments As I have been able to grasp North Carolina's financial problems, it would seem that two or three policies must be adopted in connection with the present finance act in order that Its provisions may have a fair opportunity to serve their purpose. Floating Indebtedness A grand accounting of all indebtedness that is not evidenced by pemanent bonds, and on the other side, a listing of all the receivables, such as uncollected taxes, uncollected assessments, moneys due, etc Set apart such portion of the indebtedness as may be carried under the law by these several items of asset and reissue m the fom of such instruments as are contemplated by the municipal finance act, classifying all other indebtedness as floating indebtedness, and provide for permanently financing this by a serial bond issue In this way, no added debt obligation 8 created, but the slate is cleared and the future conduct of fte finances of the community wiU then be unhampered and without complications. w Jm \^"T "^^ • P"'''^?^ ''^ ^^^ ^^"^y' aad it is felt that it would have been impossible to have made effective the financial program without such housecleaning. nnanoiai Sinking Fond Undoubtedly, there are large items of bonded indebtedness for which no adequate provisions for amortization have been made. These are burdens inherited from the past, but this does not justify passing them on to successors as they were passed on to the P'efnt generation. It seems clear that a complete valuation tL^l ^ A indebtedness and its sinking fund requirements should be made, based upon a fixed standard, and from such a time on, each community should keep at par its annual sinking ™^^/TT*^°l """^ "^ "l'^'*'*"'' contribute something each year to the deficit account, where same shall be found neeessarv as a result of the above valuation. necessary In this way a policy is ^tablished which, at some time, will amortize the present funded debt obligations. This plan was adopted m New Jersey, and the Commissioner reports that onty ♦ « 4> »» University of !N'oeth Carolina 61 a very small percentage of tlie communities will be obliged to refund any of their issues and he looks forward to the time when all New Jersey municipalities will have sinking funds that are at par with their obligations. If some such plan is not adopted, it must be evident that all hope to work out from under a bad financial program of the past must be abandoned, which will tend to discourage public officials and they will assume the policy of passing the obligations on to the future, as they were passed on to them by their predecessors. Snperyislon and Control This is a vital factor in any forward-looking program of this nature. A duly constituted state department with adequate pow- ers would prove a most beneficial and helpful agency. Such a department would greatly assist public officials by suggestion and advice, and would protect the taxpayers' interests by its audits and supervision. At first, public officials in New Jersey did not receive this feature of the financial program with confidence, but now view the department as an indispensable adviser and coofficial, appealing to it for direction and help in every conceiv- able problem. The auditors are now invited to visit cities for conference and assistance, whereas, at first, they were viewed as spies or detectives. When one reflects that an honest official, as well as an honest citizen, does not fear the officers of the law, no matter how much in error he has been in interpreting the law or conducting his business, it is clear that the quality of the purpose makes the difference in the attitude toward the official It is not the purpose of this suggestion to advocate a control over the forms for bond procedure, but more for supervision over budgets, sinking funds, uniform accounting and audits. MUNICIPAL FINANCE PROBLEMS IN NOKTH CAROLINA Gallatin Robbets, President of the North Carolina Municipal Association ; Mayor of Asheville The Legislature of l^orth Carolina, Session 1915, submitted to the people certain amendments to the State Constitution which prohibited the enactment of special legislation amending the charter of municipal and other corporations, and made it the duty of the General Assembly to provide by general laws for the organization of cities, towns, etc., and to restrict their power of taxation, assessment, borrowing money, contracting debts, loaning their credit, so as to prevent abuses in assessment by municipal corporations. )i 62 Attainable Standaeds in Municipal Pboorams At the general election held in iN'ovemher, 1916, the said amend- ments were adopted by a vote of the people of the State, and when the Legislature assembled in January, 1917, a law was passed known as the "Municipal Finance Act." This act was a new departure in financial legislation in Worth Carolina, and in many respects the measure is a good one. The budget system is strongly recognized in this act, and no one who has ever given the subject any thought at all will gainsay this provision of the law ; counties, cities, states, and nations will all ultimately adopt the budget system. An itemized estimate of the appropriations necessary to be made for current expenses and also for permanent improve- ments for each department of the municipal government, and also an itemized estimate of the taxes required from all sources, is absolutely necessary for an intelligent and comprehensive under- standing of the financial affairs of any town or city. Another wise provision of the act provides that a copy of the budget shall be filed in the office of the clerk of the town or city for inspection by any interested citizen not later than ten days before its adop- tion by the governing body, and a public hearing shall be given before the budget is finally adopted. This is a splendid provision, and should be retained in the law by all means. By an examination of section 37 of this act it will be found that the Legislature at least attempted to carry out what was in the minds of the members of the Legislature in 1915 when chapter 99 was enacted, which provided that the Legislature should restrict the power of taxation. Section 37 provides that an annual ad valorem tax on all taxable property in the municipality of and at the rate of not exceeding $1.25 on the $100 valuation of property. These are only a few of the many valuable provisions of the Municipal Finance Act as originally drafted and passed in 1917. In 1919, the Legislature passed chapter 84, known as the "Revaluation Act," which contained a very unwise and unfortu- nate provision, and in my opinion, cost the various cities and towns of IN^orth Carolina many millions of dollars. The provision reads as follows : "The assessment made under the provisions of this Act shall not be used as the basis for computation of taxes unless and until the same has been approved by the General Assembly, and until the tax rates levied by the State have been revised by the General Assembly, and the tax rate levied by the counties, cities, towns, and special tax districts of the State have been revised under rules to be laid down by the General Assembly, and such Univebsity of I^obth Carolina ea rates shall in all cases be so adjusted that an increase in revenue from the general property tax of not more than ten per cent shall he levied and collected in the year 1920 than was levied and col- lected in the year 1919. This provision is what "broke the camePs back." Long before the extra session of the Legislature in the summer of 1920, the various cities and towns of the State realized the financial situation confronting them, by reason of this ten per cent provision. The N'orth Carolina Municipal Association met in the City of Raleigh in a three days' session and passed strong resolutions requesting the members of the Legislature, soon to assemble in extraordinary session, to grant some relief, and also appointed a strong committee to go before the Finance Committee of both houses of the Assembly and present to said committee the pitiful plight in which the cities and towns had been thrown. It was generally admitted that the Legislature of 1919 had made a great mistake in limiting the taxing powers of the cities and towns to the niggardly ten per cent limitations, when it was a well known and undisputed fact that the price of everything the cities had to buy was 50 to 100 per cent higher than in former years; that every city in the State had to raise the salaries of its employees from twenty to forty per cent. The Finance Committee of the extra session of 1920 heard the representatives of the cities of the State patiently and seemed to appreciate the situation, and finally Chapter 3, Public Laws, Extra Session 1920, was passed, which provided that municipali- ties in compiling their budgets might include therein an item to be known as "Estimated deficit for 1920," not to exceed 40 per cent of the estimated amount of property taxes for the fiscal year, beginning in the year 1920. The Municipal Association of IN'orth Carolina, composed of men who had given the financial situation of the cities of the State most careful consideration, not only convinced the members of the Legislature that some relief was imperative, but the people generally and the press of the State conceded that if the cities and towns of the State were to continue to function, financial relief must be forthcoming. The special session of the Legislature of 1920 passed another act which was very unfortunate for the municipalities of the State. Chapter 3, Public Laws 1920, Extra Session, provides in section 8 thereof that the cities can only levy and collect an annual 64 Attainable Standards in Municipal Programs ad valorem tax on all taxable property of 50 cents on each one hundred dollars valuation. This provision, coupled with the 10 per cent limitation, was a death blow to the towns and cities of the State in so far as future progress was concerned, unless these limitations should be Hfted. To make the situation even more embarrassing, the act further provided that even before any town or city could avail itself of the 10 per cent increase in revenue, the approval of the Municipal Board of Control must be obtained, and I am informed that but very few municipalities made any effort to get the approval of said board even though every city and town in the State levied the 10 per cent increase. The city officials of the State were looking anxiously for relief when the Legislature should assemble in 1921. Again the Municipal Association met in Raleigh and unanimously made certain recommendations to the members of the Legislature which would give the necessary relief. A bill was drawn to amend and reinact the Municipal Finance Act. This act provided that for the purpose of raising revenue for defraying the expenses incident to the proper government of any city or town in the State, the government body was authorized to levy and collect an ad valorem tax on all taxable property of one dollar on the hundred dollars valuation, and a net debt limit of 8 per cent was authorized. This act was speedily enacted by the Legisla- ture, and the city officials of the State felt that their troubles were, at least, partially over, but like a "thunder clap from a clear sky," came the information over the wires that an error had been made by a clerk in the Senate and that the act was null and void. The case went to the Supreme Court at the instigation of the Municipal Association, and the Court promptly declared the act invalid, Justice Hoke writing the opinion. At the earnest request of tjie Municipal Association, His Excellency, the Governor, has issued a call for an extra session of Legislature to convene in Raleigh in December, to relieve cities and towns of the serious financial difficulties confronting them. Since this law was declared of no effect there has been nothing but confusion, doubt and uncertainty as to our financial status over the entire country. The situation, as it now exists, is most serious; everything is at a standstill. The people of my home city voted $550,000, school bonds, at the same election when this program was approved > * 1 » TJnivebsity of !N'oeth Caeolina 65 iJ> by the people, the governing body was authorized to levy and collect an additional special tax of 10 cents on the hundred dollars valuation for the operating expenses of our school system ; but since the act of 1921 was declared void, there is grave doubt whether or not even this tax can be legally levied and collected until the Legislature passes a validating statute. This authority was undoubtedly provided in Chapter 1 of the Public Laws, 1920, Extra Session, but the Supreme Court in the decision above referred to says: "We have not adverted to the statute on the subject passed at the Special Session, 1920, Chapter 1 and 3, for the reason that the former ouly professes to apply to the year 1919 and 1920, and the latter, on matters relevant to this inquiry, is expressly repealed by the law of 1921, and in terms that clearly show that an absolute repeal was intended." It was contended by some people that the cities of IPTorth Carolina could borrow money to tide the situation over without a Special Session of the Legislature, but a careful examination of the statutes will dispel this contention. The statute says: "A municipality may borrow money for the purpose of meeting ap- propriations made for the current fi&cal year, in anticipation of the collection of the taxes and revenues of such fiscal year and within the amount of such appropriations. In the face of this statute the argument that the cities could borrow funds to take care of the deficit for the years 1921-22 in anticipation of the collection of taxes for any other succeeding year is dispelled. The cities of the State, as the law now stands, are left with no legal power to secure funds to permit them to properly function, and they will, unless the legislature grants relief, be compelled to cut operating expenses to the quick. I feel that a spirit of optimism pervades the country, and soon the financial skies will clear and the embarrassment through which the cities and towns of ^NTorth Carolina have passed will soon be forgotten. Theie is another matter I feel sure city officials of North Carolina would like to see understood and determined, namely, whether or not a municipality can pledge its faith or loan its credit to purchase city parks and playgrounds without going to the expense of holding an election for said purpose. I am of the opinion that the Supreme Court would instantly decide that such important things as public parks and playgrounds are neces- sary expenses. A test case should be made at an early date. 1/ 66 Attainable Standards in Municipal Fboobams Univeesity of !N'orth Cabolina 67 In many of the cities and towns of !N'orth Carolina little importance has been attached to municipal accounting. I am persuaded to believe that a uniform system of bookkeeping or accounting is desirable. In many- towns the records are so meager that it is impossible for the taxpayers, who are the stockholders, to understand but little about the financial condition of their town or city. A system of uniform accounting would enable taxpayers to easily compare the financial affairs in his home town or city with the administration of affairs in other towns and cities of the State. The accounting system of the City of Asheville is based on the most modern business methods. The minutes of the board of city commissioners who meet in daily session, are typewritten, a loose-leaf binder being used. All cash receipts are turned into the tax collector daily by the various departments, 'together with an itemized statement in duplicate. He files a copy of such rejwrt in his office, and deposits the original with the cash in the office of the secretary-treasurer, and he, in turn, makes daily deposits in the banks. This not only establishes a check on the treasurer but enables the city to receive interest from the banks on every cent of its revenue. Under the city charter the banks are required to pay 4% on the city's daily balances. STATE SUPERVISIOIV OF COUNTI AND MUNICIPAL ACCOUNTS Theodore N. Waddkll, Director of Accounts, Department of Corporations and Taxation, Massachusetts The extent to which there should be state supervision of county and municipal finances is capable of a most interesting discussion. Many arguments can be advanced both for and against such supervision. From the very beginning of organized government, the need of a strong central government was recognized, and this central unit, from the beginning of the history of this great country of ours, has been known as the State. In Massachusetts, town gov- ernments have possessed certain inalienable rights, and the mo- ment an attempt is made to enact legislation which permits a representative of a jstat^ department to exercise certain authority without the express approval of the town in meeting assembled, we hear the cry of state interference with home rule. The fact that, after all, the subdivisions of a State are creatures of the * ■ • t ■ « A State and that rights and privileges enjoyed by them are granted by the State, is generally overlooked. How then should we proceed? In answer to this question, I will give you a brief outline of what has been done in Massachusetts. In 1887 the office of con- troller of county accounts was established, and in 1906 an act was^ passed authorizing the gathering and publication of financial statistics of cities and towns. The latter act was, I think, largely the result of the activities of the body here assembled, and if other sections of the country have ^benefited correspondingly with Massachusetts, you surely have reason to be proud of the work performed. As a result of the 1906 legislation, the municipal division of the^ bureau of statistics was established. Two distinct organi- zations were continued until the general consolidation of state departments in 1919, when the work of the controller of county accounts was merged with the municipal division of the bureau of statistics, which is now the division of accounts in the depart- ment of corporations and taxation. The county work includes a complete audit of the various accounts of county officers annually, as well as the submitting to the Legislature of county budgets, which must be approved by it. Much progress has been made in bringing about uniformity in the accounting, but there remains certain work which must be done in order to show more definitely function and activity costs, but this problem can be solved easily, as there is a spirit of cordial cooperation between our office and the several county officials. At the time the work of collecting statistics of the financial transactions of cities and towns was undertaken, it proved to be a serious task, since there were 353 cities and towns with almost as many plans of accounting. In laying out the work, a simple yet comprehensive schedule, with supporting supplemental, was prepared on which municipal officials were to make returns to our offiice. In endeavoring to make these returns, however, many of our municipalities found that their methods of accounting were Sfuch that it was next to impossible to properly fill the schedules, and immediate requests for assistance in revising their systems were made. As the returns of financial transactions were received and special examinations were made, it was found that methods of financing of long standing needed to be changed. This was particularly true regarding the handling of trust funds, the issu- ance of demand notes, the refunding of loans in order to tempo- I r 68 Attainable Standards in Municipal Peoqbams TJniveesity of N'oeth Cabolina 69 rarily relieve the taxpayer, and the failure to properly provide for sinking funds v^hich had been established for the retirement of certain debts incurred. We began the work of reconstructing municipal accounting methods by installing systems which any one with ordinary in- telligence could operate, and at the same time we obtained, through the systems installed, facts relative to revenues and ex- penditures and concerning the true financial condition of the municipalities. In prescribing a system of accounts for any city or town, proper consideration should be given to its particular needs; therefore the system devised by the division of accounts has been planned so that it is capable of adjustment to varying local conditions without sacrifice of principle, and it gives, as a result, comparable figures which can be used in forming deduc- tions as to the efficiency or inefficiency of officials. It would be foolish to contend that the system prescribed will of itself auto- matically reduce expenditures, but we do claim that it will point out the facts in regard to expenditures and the financial condi- tion of the municipality, so that there will not be any excuse for a continuation of careless methods of financiering. It has been our policy to operate under permissive legislation until it can be thoroughly demonstrated that compulsory legisla- tion is necessary, and I find that almost invariably the citizens as a whole need only to be shown the benefits to be derived from a change in methods, to be ready and willing to join in the work, so that the task is more than half finished when the work is begun. In 1910 an act was passed authorizing cities and towns to pe- tition for an audit of their accounts and also for the installation of an accounting system. In the same year it was provided that on and after January 1, 1911, all town notes should be issued on a form prescribed by the state bureau, and that they should be certified by us before becoming a valid obligation. During the first year of the operation of the act notes were issued to the amount of more than $9,000,000, and during the first eight months of the current year the notes issued aggregated more than $23,000,000. This increase is due to two causes: first, that more money is needed by the municipalities, and second, that many of our towns issue notes to the exclusion of bonds, regardless of the period of the loan. AJs one of the men in charge of the bond department of one of our largest banks expressed it: "There was a time when interest rates on town securities were as much as one-half of one per cent above the rates for cities, but with the present supervision, town notes are now on a par with city * m ■* bonds." We feel certain that the field for town securities has been materially broadened, which naturally operates to the advantage of our towns. In 1912 a special report was made to the Legislature r^ard- ing methods employed and the condition of the finances of the several cities and towns. This report was submitted to a special committee, which made an exhaustive study of the subject and recommended many changes in the statutes affecting cities and towns. Included in the legislation passed in 1913 will be found the following acts resulting from this investigation : An Act relative to Municipal Indebtedness. Chapter 719. An Act to provide for the Payment of Outstanding Demand Notes and the Restoration of Trust Funds by Cities and Towns. Chapter 634. An Act relative to Petitions for Legislation authorizing Cities and Towns to Borrow Money Outside the Statutory Limit of Indebtedness. Chapter 677. An Act relative to the Certification of Town Notes by the Director of the Bureau of Statistics. Chapter 416. An Act relative to the Issuing of Notes by Fire, Water, Watch, Light and Improvement Districts. Chapter 727. An Act relative to the Establishment of a Reserve Fund by Towns. Chapter 645. An Act relative to the Approval of Bills against Cities and Towns. Chapter 669. An Act to provide that all Fay-rolls, Bills, and Accounts for Com- pensation of Persons in the Service of any City other than Boston shall be Verified by Oath. Chapter 825. An Act to establish the Financial Year of Towns. Chapter 692. An Act relative to the Auditing by the Director of the Bureau of Statistics of Municipal Accounts. Chapter 706. An Act relative to the Collection of Poll Taxes. Chapter 679. An Act relative to the Overlay of Taxes. Chapter 649. An Act to Facilitate the Prompt Payment of Taxes. Chapter 824. An Act requiring Towns to Vote on the Question of an Audit by the Bureau of Statistics. Chapter 706. The first of the acts above referred to — the municipal in- de^btedness act — ^was extremely broad in scope. It specified the D A 7^ Attainah^ Standasdb tn Municipal Pboqrams purposes for wMch cities and towns could borrow money as well as the maximum period the loans could run; it prohibited the establishment of future sinking funds, compelling all future loans to be issued by the serial method, so-called; it required the first payment on a loan to be made not later than one year from the date of issue, and further provided that no payment on account of any loan in any year should be greater than the payment on such loan in any preceding year; it provided for a budget sys- tem and prohibited overdrafts; and it established trust funds on a permanent basis, so that they would be of real benefit to a municipality rather than more or less of a liability, as they had been in the past. As specified by this act the purposes for which cities and towns may borrow inside the debt limit, together with the period such debts may run, are as follows : (1). For the construction of sewers for sanitary and surface drainage purposes and for sewage disposal, thirty years. (2). For acquiring land for public parks or public domain under chapter forty-five, thirty years; but no indebtedness incurred for public domain shall exceed one half of one per cent of the last preceding assessed valuation of the city or town. (3). For acquiring land for any purpose for which a city or town is or may hereafter be authorized to acquire land, not other- wise herein sDecified, and for the construction of buildings which cities and towns are or may hereafter be authorized to construct, including the cost of original equipment and furnishing, twenty years. (4). For the construction of additions to schoolhouses or build- ings to be used for any municipal purpose, including the cost of original equipment and furnishings, where such additions increase the floor space of said buildings, twenty years. (5). For the construction of bridges of stone or concrete, or of iron superstructure, twenty years. (6). For the original construction of public ways or the ex- tension or widening thereof, including land damages and the cost of pavement and sidewalks laid at the time of said construction, ten years. (7). For the construction of stone, block, brick or other per- manent pavement of similar lasting character, ten years. (8). For macadam pavement or other road material under speci- fications approved by the division of highways, five years. Universitt of Nobth Cabolina 71 4l * ■ -* i (9). For the construction of walls or dikes for the protection of highways or property, ten years. (10). For the purchase of land for cemetery purposes, ten years. (11). For such part of the cost of additional departmental equipment as exceeds twenty-five cents per thousand dollars of the preceding year's valuation, five years. (12). For the construction of sidewalks of brick, stone, con- crete or other material of similar lasting character, five years. (13). For connecting dwellings or other buildings with common sewers, when the cost is to be assessed in whole or in part on the abutting property owners, five years. (14). For the abatement of nuisances in order to conserve the public health, five years. (15). For extreme emergency appropriations involving the health or safety of the people or their property, five years. (16). For the payment of final judgments rendered after the fixing of the tax rate for the current year, one year. (17). For such other emergency appropriations as shall be ap- proved by a board composed of the attorney general, the state treasurer and the director, one year. The act relative to the borrowing of money outside the debt limit provided that a report of the financial condition of the municipality should be made to the legislative committee having for consideration bills involving the finances of that municipality. "We do not attempt to control legislation, but by placing facts be- fore the Legislature, we are able to obtain uniformity in the treatment of our cities and towns. The necessity for the foregoing l^slation was the result of careless financing on the part of many of our towns over a period of many years, insufficient study having been given by them to the needs of the future. The demand for service at public expense was increasing at an alarming rate, luxuries of yesterday became necessities of today, with the result that our debt was, in many cases, becoming an actual burden. Formerly every opportunity was given to the government in power to perpetuate itself by maintaining a relatively low tax rate, and whenever additional money was needed, it was obtained by means of a loan. Under our present laws, every municipality must meet its maintenance and operating costs by revenue. The use of loan money is restricted to certain purposes. The tempta- tion to inadequately meet the sinking fund requirements no longer exists. If we are desirous of having service at public expense, ip m fl li> 72 Attainable Standards in Municipal Pbogbams we know that it will be reflected in the tax rate, and in my opinion there will be far better governement when the people themselves realize that whatever they demand in a given year by way of service automatically comes back to them in the tax bill of that year. Since the 1913 legislation became effective, we find that the ratio of funded or fixed debt to assessed valuation has constantly decreased, the actual net funded or fixed debt for all municipali- ties in the commonwealth on December 31, 1920, being more than $5,500,000 less than it was on December 31, 1916. This is not due wholly to war conditions, since the increased cost of new work in a way offsets the postponed work which would normally have been done during the war period; in other words, the policy adopted some eight years ago has placed all of our municipalities in a far better position to cope with the serious financial con- dition following the World War. The Legislature in 1920 added to our duties somewhat by pass- ing an act which requires the auditing of the accounts of all cities and towns hj the division of accounts, or by accountants ap- proved by them, as often as once in three years. Many desired this law to be extended so as to cover the installation of an ac- counting system as well, but I could not favor such a provision at the present time. It seems fair enough to make the audit compulsory, but if the accounts are to be kept on certain definite lines, it will be necessary to have local support. You cannot mold municipal accountants, but you can educate them. In time we expect to have every city and town keeping the same general system of accounts, but if such uniform system is to be successful, we must first convince the citizens of its value and make clear why three hundred years of tradition must be abandoned. As soon as a majority of the citizens appreciate the real value of a proper system of accounts, I feel confident that requests will be received for the installation of such systems and, moreover, that they will be received quite as fast as we are able to do the work. The methods adopted by us in carrying on the work in Massa- chusetts have met with the approval of a majority of our citizens, and officials of the several municipalities find that they can ob- tain assistance from a central office which has experience in solv- ing many of their problems. The results cybtained in our State have proved so eminently satisfactory that I would recommend state supervision of accounts, such as Massachusetts has, to other states — ^if not for adoption in its entirety, at least for a trial in part. V* University of N'obth Carolina 73 BUDGET MAKING AND THE CITIZENS' INTEREST IN NOETH CABOLINA JMTJNICIPALITIES Lionel Weil, Chairman JTinance Committee, Goldsboro* In order that the various administrations of the cities and towns throughout I^orth Carolina may attain their fullest meas- ure of success, three important factors are necessary — ^good men, good laws and a continuing interest by the people. The value of public interest is not only important, but, to a large extent, determines whether we shall have good men and ^ood laws. An indifferent electorate invariably begets a medi- ocre administration. The best results have always come when our people are keenly aroused to a proper appreciation of our civic problems. In the range of municipal problems, there is no event more important, nor one that should engage public attention to a greater degree than a consideration of the budget. What the Budget is and Wbat it Does Simply stated, the city budget is the financial plan and guide for the yearly conduct of its business. It embodies the detailed estimate of expense and revenue necessary for the jjroper opera- tion of its government, systematically arranged according to its various departments, with a comparative statement of the previous year's transactions. It enables the city to accurately determine its financial pro- gram and shape its policies a year in advance, thereby giving the public a deeper insight and a better understanding of what services are planned and what financial burdens they are expected to share. Experience has shown, by thus planning ahead and taking into consideration the various requirements of each department according to its relative importance, that money has not only been saved, but that a higher standard of service has been secured. In the light of the above statement, as a proper safeguard and good business, the budget becomes of equal importance to the small town and larger city. ^Special thanks are extended to Mr. Weil, not only for this pai>er with its valuable illustrations, but for his special co^peraticm in maldng the Conference possible. 74 Attainable Standards in Municipal Pkoqrams Who Should Prepare the Budget The first step necessary to the preparation of a successful budget is executive authority. In the city manager form of govemmeni;, this duty naturally falls on the City Manager, assisted by the chief financial officer. In the commissioner form, and federal plan of government, where the commission or mayor appoints all department heads, who are directly responsible to the commission or mayor, it should be their duty to secure the proper estimates from the various departments. In towns or cities where government by committees continues to flourish, and such centralization does not exist, it is desirable that the mayor or municipality call together the various representatives of the several departments, and lay before them the city's current revenues and ascertain what the requirements for their respec- tive departments would be for the current year. Here, by a committee of the whole, the public need could be correlated and the absolute necessities approved. The entire estimates, with supporting data, could thus be prepared for presentation to the board of alderman or council. The preparation of the budget estimates, outside the Council itself, and their final approval or disapproval would place the responsibility of government where it actually belongs. Determining Belative Tallies In the making of a budget, one of the real problems is to ascertain the relative amounts needed for each department. Since the fundamental prerequisite to the existence of society in any form is the preservation of law and order and the protection of life and property, it would seem that the first care of the city would be adequate provision for public safety. This would include the work of the police, fire and public health depart- ments and they should therefore be the first to be put on an adequate basis. The necessary condition to accomplish this end would be the provision of such public improvements as the above — lighted streets, water and sewerage and the machinery for fire-fighting. After these elemental needs are taken care of, the undertaking of most consequence is public education, since popular govern- ment is dependent for its continuance on an educated citizenship. In view of the fact that our city schools are taken care of, in most of our communities, by a separate and distinct corporation this subject will not constitute part of the present discussion. In University of I^obth Cabolina 76 this connection, however, the support and encouragement of the municipality should be given to its Public Library. Next in order, come the numerous and various activities of social welfare, relief of the poor, places of recreation and play- ground facilities. Expenditures It is a prevailing practice for a city to first estimate the essen- tial expenditures for the year and then provide revenue for meeting them. The expenditures of the average municipality in North Carolina may be reasonably classified under the follow- ing departments: 1. Administration; 2. Police; 3. Fire; 4. Health and Sanitation; 5. Streets; 6. Sewerage; 7. Water; £•. Lighting; 9. Education schools and library; 10. Parks and playgrounds; 11. General expense and contingencies; 12. Sinking fund and interest. In order that any change in the assets of the city may be properly reflected in its financial statement, and that the actual operating expenses may be known, it is necessary to separate the expenditures of these various departments into two classifica- tions, Expense and Capital Outlay. Expense comprises all items of expenditure necessarily incurred for current administration. Capital outlay comprises expenditures of every character made from the general fund which increases the assets of the corpo- ration, same >being popularly called "permanent improvements." Sonrces of Bevenne For clearness and convenience, revenue is divided into two classifications: 1st. Revenue for the general fund, which includes current revenue, and 2nd. Revenue for the sinking fund, which includes revenue for interest and the payment of the principal of bonds at maturity. The principal sources of revenue for the general fund are the taxes on real estate and personal property, including poll taxes, special licenses and fees, water rentals, electric light receipts and costs from the City Recorder's or Mayor's Court. In many of our towns in North Carolina, the sources of revenue for the general fund had to be supplemented last year by the proceeds of a funding bond issue, necessitated by the Revaluation Act, which limited the increases in our revenue — that could be raised by taxation — to 10% of the previous year's revenue, whereas, as an actual fact, considerable more revenue was needed, duq to the excessively increased cost of labor and material. Our recent Legislature of 1921, seeing the financial >- 76 Attainable Standards in Municipal Pbograms Univeesity op ITobth Carolina 77 "i burden imposed on our various cities and towns, endeavored to come to their rescue by amending the Municipal Finance Act, so as to give the suffering municipalities a sufficient rate under which to operate. The sad story of how the Senate engrossing clerk failed to record in the Journal the passage of this act, and its consequent invalidation is all too familiar and distressing to many of us. Once again, a great number of our municipal- ities are subject to severe financial strain, and, in order to protect their credit, forced to adopt the pernicious practice of issuing funding bonds for current expenses — passing on to next year's tax-payer the cost of benefits which are already used up and gone. The recent low sale of such securities, compared with the cities of other states unfortunately reflect our standing in the financial world. This belated and urgently needed relief will finally come when the Governor, in his wisdom, decides the right moment is at hand for calling the Legislature together. The principal sources of revenue for the sinking fund are the taxes on real and personal property, including poll taxes, improvement assessments levied on abutting property, and inter- est from the investment of the sinking fund. Appropriation Ordinance In order to make effective the various proposals in the budget, an appropriation ordinance should be drafted and passed by the council. The budget then becomes operative as the admin- istrations guide for the current year. To insure its effectiveness and to make it thoroughly binding, every contract for the (purchase of supplies, material and equipment should become valid only when the city auditor or comptroller certifies that funds are available and the contract signed by the chief execu- tive officer under authority of the governing body, and further, that no expenditures for salary and labor should be made by the chief executive officer until the city auditor certifies that funds are available. A monthly balance sheet should be presented to the council so that a proper check as to its operations can be had, and, at all times the unexpended balance may be shown in each department. Some Basic Cliarter Proyisions A few of the more important provisions of the State Municipal Finance Act and the Model City Charter are herewith sub- mitted. These should form a correct guide for budget procedure. The fiscal year of the city shall be from June 1st to May 31st, or from September 1st to August 31st, inclusive; and not earlier than U^ one month before, nor later than one month after the beginning of each fiscal year, the chief executive of the municipality shaU prepare and submit to the council, an annual budget far the ensuing fiscal year based upon detailed estimates furnished by the several departments and other divisions of the city govern- ment, according to a classification as nearly uniform as possible. The budget shall present the following information: (a) An itemized statement of the appropriations recom- mended by the chief executive of the municipality for current expenses and for permanent improvements for each department and each division thereof for the ensuing fiscal year, with com- parative statements, in parallel columns, of the appropriations and expenditures for the current and next preceding fiscal year, and the increases or decreases in the appropriations recommended. (b) An itemized statement of the taxes required and of the estimated revenues of the city for all other sources for the ensuing fiscal year, with comparative statements, in parallel columns, of the taxes and other revenues for the current and next preceding fiscal year, and of the increases or decreases estimated or proposed. (c) A statement of the financial condition of the municipality. (d) A copy of the budget shall be filed in the office of the City Clerk for public inspection not later than ten days before its adoption by the governing body, and a public hearing shall be given thereon by the governing body before the adoption of the budget, notice of which hearing shall be published. (e) Such other information as may be required by the City Council. Such budgets, when adopted by the Council cannot be changed except at a regular meeting, and upon a two-thirds vote of the whole Council. The foregoing sections relating to budget procedure are in accordance with the best modern thought and practice on the subject, but no instrument, however well conceived and executed, can be thoroughly successful unless it is understood and approved by an enlightened public. Beaching the Public The budget can, and should, be one of the chief means of arousing public interest and extending public knowledge. Figures are cold facts to the majority of people — ordinarily, they are i 7S Attainable Standards in Municipal Pbograms as dry as dust. Every legitimate effort, therefore, should be made to present the proposed appropriations, with their support- ing data, so as to attract the average citizen by a joint appeal to his common sense and imagination, first gaining his under- standing and then securing his confidence. Copies of the proposed budget should be printed in circular form and distributed. Sub- divided circles, graphically showing the relative expenditures and the comparative percentages for each department, also sources of revenue, their amounts and the comparative percentages of these sources, will secure a greater clearness and better understanding. The budget should also be printed in story form for the local newspapers showing, by departments, what additional service can be accomplished by each appropriation. A suggested caption might be : What it Costs to Run City Hall— Here are the Figures to Show Just What Your Money Does. axJ^f following items will serve as a helpful illustration : Under Health and Sanitation," "This year's budget contains $10,000 increase for the eradication of the mosquito. It is confidently predicted that, with the disappearance of the mosquito, malaria will be arrested and the health and economic efficiency of 500 individuals will be restored to their normal well-being, and returned to their usual avocations." Motorization of the Fire Department. "The proposed purchase of a motor truck for $6500 not only improves the efficiency of our Fire Department in enabling it to extinguish fires in their incipiency, but will secure 5% reduction in our insurance rates, and, in two years, our citizens will save enough to offset the original cost of this truck ! And, finally, under the headline. Service vs. Cost, the following argument might be justified in any well-governed and rapidly developing municipality in [NTorth Carolina. Service vs. Cost These various improvements have necessarily been added with an increase m the tax rate. But if one can in any way interpret the desire of the average citizen, we believe he would be unwilling to revert to the old condition, poor service and low taxes. A low tax rate, accompanied by very little resulting benefit, is seldom appreciated. The following thought should illustrate this idea: The recol- lection of a low price for a cheap article is soon forgotten, but the poor service it has rendered is long remembered. Our concep- Univeesitt of North Carolina 79 ?.^. tion of city government is rapidly undergoing a change. In by- gone years, the prevailing policy of some administrations has been to see how cheaply the government could be administered. The standard of living has so greatly changed that the luxuries of yesterday have become the necessities of today. So our people have come to give first consideration to the character of service and efficiency rendered rather than low cost operations. The budget, outlining the city's plan of action for the entire year, carries with it a most vital message. An earnest endeavor should therefore be made to secure the fullest publicity in its consideration. The public should be invited to participate in a full discussion of its provisions at a meeting of the Council called for this purpose, to the end that when the budget is finally adopted, the administration will have the sympathetic understanding and the harmonious cooperation of an interested citizenship. The subdivided circles shown in the four diagrams graphically illustrate relative amounts and percentages as adopted in a budget of a ITorth Carolina town for thirteen months, ending May dl, 1921. These include the following: MAYOR ELDBIDGE OX EMERGENCY FUNDS At the first meeting devoted to municipal finance Mayor Eld- ridge presented a very forceful and convincing address on the subject : "Is it safe to take liberties with laws relating to municipal taxation in anticipation of curative legislation?" Mr. Eldridge reviewed the state emergencies of 1921, presented specific evidence of his argument, and concluded that cities should not go beyond the actual present regulations. Without censuring any city which felt it necessary to take steps for which it would then ask legisla- tive approval Mr. Eldridge thought that the wisest plan, both for the good of the city in question and for the safety of municipal finance in ITorth Carolina would be to suffer limitations rather than take the liberties described. > 80 Attainable Standabds ur Municipal Pboobams Total Estimated Expenditures I^AY 1.1920 TO May3I.I92I Grand Total Appropriation *303.52&.38 (1) Total estimated expenditures May 1, 1920, to May 31, 1921, (13 months instead of twelve months on account of change in fiscal year). Univebsity of IN'orth Carolina 81 » $ .^ Health and Sanitation Department Appropriation-May I.I920toMay 31.1921 •36,30500 Distribution of Estimated Expenditures For 13 Months (2) Total estimated revenue, Health 1920. 6 82 Attainable Standards in Municipal Pkogeams University of JN'orth Carolina 83 Total Estimated Revenuc Taxable Year \920 ^ to\ Grand Total •303,528.98 (4) Distribution estimated expenditures, Administration (13 months). INTERPBETATIOIC OF LOCAL GOYEKNMENT IN TEKMS OF ACCOUNTING Baxter Durham, State Auditor, North Carolina **To be helpful, criticism must be constructive," and in the spirit of this quotation I approach the subject assigned to me. "Approach" is the correct word, for no man can hope to cover this subject in an hour, or a day. We must come to it as students, reason together, dig in, and the "pay dirt" that we throw out will be facts upon which we can intelligently build. The County is the unit of self-government, and the Board of County Commissioners is the governing body. It would, therefore, seem that the general law directing the Commissioners to employ accountants for an audit of their County, and the installation of an accounting system, would be a correct "interpretation of local government in terms of the County." But when we remember that there are one hundred counties in INTorth Carolina, that each county has problems of its own, that they are all bonded together by various state agencies, that they are all dependent upon each other, then we must conclude that the local government we think of, in terms of accounting, is the State. This view was taken by agreement of the representatives from every county in ITorth Carolina in the 1921 Session of the Legislature, when after careful consideration they wrote into the laws of the State, Chapter 236, Public Laws of 1921. The first section of that Chapter reads as follows : "Section 1. That it shall be the duty of the State Auditor to cause to be examined at least once a year, and oftener if in the judgment of the State Auditor conditions require, all counties and county officers receiving or dis- bursing public funds, and that such State Auditor be and he is hereby given full power to examine all accounts and all official affairs of every county office and officer receiving or disbursing public funds." This law provides two things : That every county in the State shall be audited, and a proper system of accounting insstalled; That this work shall be done by a central agency — the State Auditor. In both propositions I most heartily concur. i\ i i \ I * \i 84 Attainable Standards in Municipal Programs Why an audit? Have not we builded a brave and beautiful state through all these years of struggle without an audit ? We have. Then let's have an audit, and quit struggling. If we are to get a correct vision of this, we must look upon the State as a great corporation, established for the purpose of conducting the business of the people— the counties as branch corporations, established for the purpose of more conveniently conducting this business. Let me give you a picture of the establishment of one of these branch corporations : A petition is presented to the parent corporation, which is the State, setting forth the fact that there are in a certain community three or four thousand people, that by reason of their location, are greatly inconvenienced in handling and attending to the business of the people. A bill is introduced and made a law, estab- lishing the named corporation, and the law usually provides that the President of the parent corporation— the Governor of the State— shall name the President and the balance of the Board of Directors and the officers of the new corporation, and they serve until the next general election. Then by selection the stockholders elect a Board of Directors and the officers. The total capital stock of the parent corporation, stated in taxable values, is approximately three billion dollars, which gives an average capital stock to the one hundred branch corporations, stated in taxable values, of thirty million dollars. When I tell you that this average capital stock of a county is larger than the capital stock of any private corporation, incorpo- rated under the laws of [N'orth Carolina, and exceeded by only three or four foreign corporations doing business within the State, then you have some idea of the bigness of this business that we call government. How do we conduct this business? First, we elect a Board of County Commissioners, command them to be present at the courthouse on the first Monday in December and June, allow them to adjourn from day to day until they have transacted all business brought before them, and for this we pay them the mag- nificent per diem of three or four or ^Ye dollars, and mileage. We allow them to meet without pay, whenever they call a meeting and two or four years later, without thought of their success or failure, turn them out, because we cannot violate what to some IS the sacred principle of "rotation in office." If the business is not conducted properly, is the fault theirs? Must the blame be placed on their shoulders? Certainly not Ours is the fault, and we must carry the blame. University of ITorth Carolina 85 > V • ■«' < ■• i Do the stockholders treat our directors as they should? A new board is elected, and they come into office without knowledge of the financial affairs of the county, but after a careful study of the situation they call us together and mention this item : "We find, gentlemen, that we have a county treasurer, and we are paying him $1200, $1800, or $2000 a year, as the case may be. We also find that there are one or two Banks at the county seat that are willing to act as Treasurer for the privilege of having the county's funds on deposit. What will you do about this, gentlemen?" One stockholder moves that the suggestion of the directors be adopted, the office of the treasurer abolished, and a bank allowed to act as treasurer. The motion meets with a second, and the storm breaks. Friends of the treasurer rush to his defense, taking the motion and suggestion as a personal attack. They declare that he is one of the best men in the county, has been a faithful and efficient officer, and therefore, the office should not be abolished. The facts they state about him may all be true, but this does not mean that the other fact is false; namely, that the directors are right, that the office should be abolished and the county saved $1£00 or $2000 a year. Suppose the motion is carried, and the office abolished, at the next general election the directors are not reelected. Or, suppose the motion is lost, the directors may meet with the same fate; the reason assigned in both cases is the same, that they had it "in" for the County Treasurer, and made a personal attack on him, the stockholders losing sight of the fact that the Commis- sioners, or directors, are trying their best to advise the stock- holders to conduct their business on business principles. As to the selection of officers : Are they selected with an idea of their qualifications for the job in mind? Do they elect a Register of Deeds because he is a good clerical man, trained in the work he is to do? Do they elect a sheriff because he is a big, strong man, able to execute the law, protect the public, and collect the tax? Do they elect a Clerk of Court because he is familiar with the laws of the State, a good business man, and trained in his duties? In a great majority of the cases we must answer "!N'o." Are there private corporations, whose business is conducted as IS the public business? Yes, indeed, but their names are carved deep in the records of the bankruptcy courts and some of their directors and officers are "doing time." n .\ 86 Attainable Standards in Municipal Fboobams University of N'orth Carolina 87 |1 I say to you very frankly that there are few counties in this State that know their true financial condition. A great many do not know their bonded indebtedness; who holds the bonds, nor when they are due; when the interest is due, when they are to be paid, or how. Few counties know the number of acres of land within their borders, nor the valuation of the same, neither do they know the number of town lots. I know that this is true, for the reports coming into my office every year vary, and in some instances greatly, as to the number of acres and number of town lots. Few counties have a control set of books, through which all financial items pass. Few know what it costs them to conduct the business, or whether the price is high or low. Few know whether they buy at the right price when they purchase. Let me tell you an incident: A certain institution was going to install a heating plant, and they asked for bids. A day was set for opening the bids. On the afternoon before, there were ten bidders on the field. Late in the afternoon a representative of the State, trained in his profession, came in town and offered his services to the Board of Directors. The next morning only three bids were submitted, and the successful bid was cut $3,000. This could easily have happened in a county, and illustrates what I have to say in regard to buying. These are good and sufficient reasons for an audit, but to more clearly put it before you, let me give you some more facts. In 1919, after several years of intense persuasion, the Legis- lature allowed the State Auditor to spend $5000 annually, to employ a Traveling Auditor, and pay his expenses. The work fell to me, and I went to about twenty counties and collected about $20,000 that in all probability would never have found its way into the State Treasury. Did this indicate that there was any dishonesty with the county officials? I^ot at all. Let me say in this connection that I have not seen in any of the audits that have been made, any evidence whatever of dishonesty. An audit is not made for the purpose of disclosing dishonesty; it will be disclosed if there, but the basic principle of the audit is to find the facts, and so present them that they can be understood and their meaning made clear. Another case: We made an audit of a certain county, being told when we went there that the Sheriff was short about $15,000. The facts in this case were that the Register of Deeds had died, and there was not a man in the county that knew the condition of the county. They were building a new courthouse, and the va- '• M# rious county offices were located at different places in the county. We found a box of county records in an old barn with vines growing through the box. We found a bonded indebtedness, and a tax levy to take care of the bonds, but as the tax was collected, it was put in the general county fund and used to pay any expenses of the county. We found that instead of the sheriff being short, the various county funds were short, and the money had never come into the hands of the sheriff, nor did he know that he was even charged with certain items. That county today has a good accounting system, and it is being well kept. In another county we audited, we had to make this statement to the board of commissioners : The sheriff of your county, who, prior to a certain date, acted in the capacity of both sheriff and treasurer, was able to furnish us with no records showing receipts and disbursements, except the recorded sheriff's settlements for the years 1917 and 1918, which purported to account for the tax collections for these years only. The receipts from other sources and the disposition of same for county purposes had not been recorded, or if recorded, the records were not available. We found in this same county that the Commissioners had allowed the sheriff commission on the gross charge against him, before any errors, insolvents, or land sales were deducted, and even before the state tax was deducted, and of course the State had allowed the sheriff {commission on the amount he paid the State. We found in another county that the sheriff was behind $10,000 in the 1919 settlement, and an agreement between the mayor of the town in which the county seat is located and the county superintendent of public instruction to divide the fines collected between the school fund and the town — an agreement that the State Legislature does not have the power to make, because the Constitution distinctly says that all such funds shall be placed to the credit of the school fund. In another county we found that the sheriff had collected about $2000 in taxes, that was put on the books after the reports had been sent to the State Auditor's office. He had paid all the State had demanded, and yet he was due the State $2000 and did not know it. The register of deeds in this case had failed to send us a charge against the sheriff for this amount. 88. Attainable Standards in Municipal Programs University of North Carolina 119 I % In a great many counties we find that the tax levied to take care of bond issues is not set aside, as the law directs, into a sinking fund, but is put into the general fund and spent for any expenses of the county. We found in another county that for four years the county commissioners had not had a settlement with the sheriff. Oh, yes, he has paid so far as they could tell, all that he has collected, but the tax receipts were left with him, and of course he could collect as much tax as he wanted to and never account for it. A tax receipt is a cash charge against a tax collector, and should be so regarded. From another county I get this statement : The tax collected after the books were closed, and the errors and insolvents just about balance, so we make no record of these. From a member of the House of Representatives, I get this question: "What do the state auditors do when the Legislature is not in session?" Another county in N"orth Carolina had its docket so full that a new case could hardly be reached within a year, or a year and a half. A special term of court was needed and wanted, but the information was that a "special term of court cost too much, and the county couldn't afford it." A study of the situa- tion was made by Mr. A. B. Andrews, Jr., and he found that the cost of caring for the prisoners in the jail, if kept until the regular term of court, would far exceed the cost of the special term. The new term was ordered, the jail cleared, and the county saved money. Is an audit necessary? Well, what is an audit anyhow? The general idea is that an audit is to check up a set of books and declare the result, to draw up and present an account. I like to think of an audit as a general survey, that officially takes into consideration every element that enters into the insti- tution, the county, or the state under consideration, and this I believe is the true meaning of an audit. Why should the work be done by the State? Well, the law says so, but the law says so because the State can do 'the work cheaper than the counties. In 1919 we made an audit of a county, covering a period of nine years, installed an accounting system, and collected over $7000 in additional tax for the county. This work cost the county $3000. About the same time another county in the State employed some certified public accountants to make an audit •^ and install a system. They covered a period of three years, and it cost the county about $22,000, and so far as I know they did not collect an extra cent. The State has at its command, men to do this work, trained in the science of accounting, also in the laws governing the collection of county funds, iboth taxes and fees. They can, therefore, make a true and accurate audit. We do not confine our audit to what did happen, but to what ought to have happened. I have on my desk a report of an audit of a county made by one of the largest accounting firms in the State, a firm that enjoys a large practice all over this State. After careful consideration, they reached the conclu- sion that the State was due the county $7800. I sent a man there from my office, and he made an examination and reached the conclusion, which is correct, that the county was due the State $1800. Further, when the State makes an audit of a county it places the official stamp of I^orth Carolina on the records of the county, and to that extent protects the county and county officers. The State can bring to every county the accumulated knowledge gathered from all other counties. The State can reach out into all the States of the Union, and gather from their experi- ences the best methods of their accounting. The State comes to the county as its own, not as a detective to find fault and prosecute, but as a big brother, conscious of his duty, offering the strong right arm of its superb and virile manhood. Will an audit cure all of our troubles? Certainly not; it will simply diagnose the case, and brave and patriotic men and women all over the State will apply remedial measures. There- fore, we must come to this service as constructive engineers, clear away the rubbish of uncertainty, and doubt, and ignorance, which have held us in bondage; plant our structure on a solid foundation of facts; know the strength of our base of supplies, and that connection will be uninterrupted, and order a charge all along the line. This, ladies and gentlemen, is my interpre- tation of local government in terms of accounting. Thus far have we come on faith, and I do not suggest that we fail to exercise faith now. I bring you no new doctrine, but the plain and simple application of business principles to governmental affairs. We are just beginning the largest and most beautiful program ever undertaken in our history. Today dawns bright and glorious, because of the toil and sacrifice of those that i ► Ill i 90 Attainable Standards in Municipal Peograms have gone before. We must not go into a new day without summoning to our aid trained and efficient men, who will bring to this service the consecration of devoted patriots, who will lead us out of the wilderness of uncertainty and ignorance, into the perfect day of truth, so that we may enjoy that freedom which we crave, and for which we plead. The Bond Act [Extra Session 1921] AN ACT TO PROVIDE FOR MAKING EFFECTUAL THE MEANS OF PAYMENT PROVIDED FOR BONDS AND NOTES OF COUNTIES TOWNSHIPS, SCHOOL DISTRICTS, AND MUNICIPAL CORPORA- TIONS, AND TO PROVIDE FOR SUPERVISION OF SUCH MEANS BY THE STATE AUDITOR, AND MAKING NONCOMPLIANCE WITH ITS TERMS A MISDEMEANOR AND FIXING A PENALTY. Whereas, the default in payment for a single day of the interest or principal of bonds or notes issued by any county, township, school dis- trict, or municipal corporation results not only in discredit to the obligor, but seriously affects the credit of the State itself and all of its political subdivisions; and whereas, in order to protect the credit of the State and all of its subdivisions, it is imperative to provide State super- vision of the means and methods for payment of such principal and interest promptly as the same falls due: Now, therefore. The General Assembly of North Carolina do enact: Sectiox 1. That on or before March first, one thousand nine hundred and twenty-two, it shall be the duty of the clerk or secretary or other recording officer of each board in the State of North Carolina which ha^ heretofore authorized the issuance of county, township, school dis- trict, or municipal bonds or notes having a fixed maturity of one year or more from the date thereof, to file with the State Auditor a state- ment giving the amount of such bonds or notes then outstanding, their date, the time or times of maturity thereof and of the interest payable thereon, the rate of interest borne, the place or places at which the principal and interest are payable, the denomination of the bonds or notes, and the purpose of issuance. The statement shall also contain the name of the board in which is vested the authority and power to levy the taxes for the payment of the principal and interest of said bonds or notes, and a reference to the law under which said bonds or notes are issued. Sec 2. That within thirty days after any bond or note having a fixed maturity at lea^t one year after date thereof shall hereafter be i University of IN'orth Carolina 91 issued by any county, township, school district, or municipal corpora- tion, the recording officers of its governing body, or of the board thereof which has authorized such bonds or notes, shall file wtih the State iiuditor a like statement a& to such bonds or notes. Seo. 3. That it shall be the duty of the State Auditor to prepare and furnish to all counties, townships, school districts, and municipal corporations throughout the State blank forms upon which such state- ments may be made, and to keep the statements made pursuant to this act in proper file, properly indexed, or to record the same in books to be kept by the State Auditor. Sec. 4. It shall be the further duty of the State Auditor to mail to the recording officer of each board having the power to levy taxes for the payment of the principal or interest of such obligations, as to which statements have been so filed, at least thirty days before the time for the levy of taxes in each year, a statement of the amount to be provided by taxation or otherwise for the payment of the interest accruing upon such bonds or notes within the following year, and for the payment of the bonds then maturing, if serial bonds, or for a sink- ing fund if such bonds do not mature serially. Sec 5. If any board whose duty it shall be to provide for the pay- ment by taxation, or otherwise, of the principal or interest of any such bonds or notes mentioned in sections one and two of this act shall will- fully fail or refuse to make provision for such payment by the levy of such taxes as are authorized to be levied therefor, or otherwise, at or before the time provided for such tax levy, any member thereof who shall be present at the time for such levy who shall not have voted in favor thereof, or who shall not have caused his request that such pro- vision be made to be recorded in the minutes of the meeting, shall be subject to a penalty of two hundred dollars ($200), which he shall for- feit and pay to any taxpayer or to any holder of such obligations or interest coupon who sues for the same. Sec 6. Any member of any board voting for any appropriation of money raised by taxation, or otherwise, for the payment of the interest and principal of any such bonds or notes to any other purpose until all of such principal and interest have been paid, and any disbursing officer who pays out any of such funds to any other purpose than the payment of such prinjipal and interest until all of such interest and. principal have been paid, whether or not such pajnnent shall have been ordered by any board, shall be guilty of a misdemeanor. Sec 7. If any officer whose duty it shall be to pay any of such principal or interest, or to remit funds for such payment to an agreed place for the payment thereof, shall fail or refuse to do so in sufficient I V I 92 Attainable Standards in Municipal Programs time for such payment, funds for such payment being in his hands, whether or not such payment or remission of payment shall have been crdered by any board or officer, the officer so failing or refusing shall be deemed guilty of a misdemeanor. Sec. 8. It shall be the duty of the State Auditor to report to the solicitors of the respective districts for investigation and action there- on any violation of this act which may come to his attention. The State Auditor shall publish as a part of his annual report a statement of the bonded indebtedness of all the subdivisions mentioned in the bill in substance as herein required. That this act shall be immediately published, and a copy of same be sent forthwith by the secretary of State to the clerk, secretary, or recording officer of each corporation included herein. Sec. 9. All laws or parts of laws in conflict herewith are hereby repealed. Sec. 10. That this act shall be in force from and after its ratification. Ratified this the 19th day of December, A. D. 1921. The Beal Test After all, it is what the taxpayer gets for the taxes he pays that counts. If he gets as much for each dollar of taxes as the city can possibly give him, after employing every proper device to render justice and efficient, intelligent, worth-while service at the lowest possible cost, the question of the tax rate is of secondary importance. But, if justice is not meted out alike to all, if service is limited and perfunctory, if waste and inefficiency are tolerated, if, in other words, the city government falls down on its job, any tax rate, no matter how much less than the previous one, is too high. Philadelphia Bureau of Municipal Research CHAPTER V ATTAINABLE STANDARDS IN GENERAL SOCIAL SERVICES ASPECTS OF CITY PLANNING Morris Knowles, Pittsburg, Pa. Mr. Knowles said in part : City planning is so valua;ble to communities as to be almost essential. Some cities can grow and prosper without any plan; most modern cities have done so, and have gotten along without realizing how much better the result might have been. Most of our present communities have not had any advantage over each other given by a good plan. But a new era is now beginning. Our most progressive cities realize that skill and economy of effort count in gaining and pre- serving the lead. Therefore planning and forethought have re- sulted, so that no rational advantage is neglected and handicaps are overcome and turned into advantages. When no city had a plan all were equally wasteful of resources. Now, such cities as get good plans will soon out-step their rivals, because with the saved expenditure of public money they will secure greater results. A plan for a city is of as practical value in building that city as a plan for a great manufacturing establishment or for a hotel or public building. A few years hence no civic group will plan to develop its city unless it has a definite plan to serve as a guide. It will know where new factories will not only be best served by transportation facilities, for raw material and finished product, but where they will get at the least expense such municipal serv- ices as sewer, water, lights, power, and where they will be most convenient of access from well designed home districts for the workers. It will know what areas are best adapted to retail trade and most convenient to shoppers, and it will place its parks so that they serve the greatest number of people, and add most to the attractiveness of the community without stopping the de- velopment of business areas. f 11 r 94 Attainable Standards in Municipal Pbograms Univebsity of iN'oRTH Carolina 95 But citj planning does not consist merely in getting a good plan on paper The best paper plan may not be foUowed unless It 18 really sold to the citizens. And it won't be sold to them unless they can be made to see its value to themselves. And they won t see its value unless they work on it. The City Planning Commission is more than a group of men authorized to hire a protessional city planner, accept what he gives them and pay his bill. JNo city plan can be imposed upon a community by some one from the outside. ^ ^ The Commission should learn at least the purposes and some- thing of the principles of city planning; it should study local problems and seek solutions of them; it should open its eyes to the natural advantages of its city and try to devise ways of mak- ing the most of them. j ^r. The complete definition of town planning is the coordination ot comprehensive programs for the betterment or creation of the facilities for every municipal and public activity; makes possible the development of a city along predetermined and logical lines, instead leaving to casual whims and fancies of individuals. Objects of town planning are to control and promote order development and growth, and by results secured make the city a good place m which to live and work, in which to live comfort- ably, enjoyably and healthfully and to do business economically indudT"'^" a«^f or the communzty. ^CHOOL OF BUSINESS Who is Responsible for a Community Organization The citizens are responsible for the organization, and the organization is rsponsible to them. The president elected by the membership is the official head and the Secretary employed by the board of directors is the executive head. The organization and the secretary must be fearless. Where something worth while is accomplished there wiU be criticism. If you don't want to be criticised don't do anything. How are Community Organisationg Financed They should be put on a membership basis of $25 per year per membership. Memberships to be held by all citizens and corporations. What Can a Community Organization Do. What is an Attainable Program? This depends on the commu-' nity needs. I would not attempt to outline a definite program which would be appropriate for any or every conmiunity. That would not be at all practical. I shall try to mention a number of basic activities. !N'ot all of them, or the same number of any others, should be included in a one-year program. A prepared program for a community organization activities should be short, definite and practical. An attainable program for the commu- nity organization would be one that could be carried out, and care should be exercised in selecting a program that can be carried out. Cities differ in the amount of progress they have made, and in their short comings. ]N*o one can lay out a standard program. In making an outline of the basic activities I shall classify my remarks under the following headings: Civic Affairs, Pub- licity, Commercial, Industrial, Transportation, Agriculture. ) M il^ l» [i I 100 Attainable Standards m Municipal Pbogbams ClTie Affairs The greatest number of activities possibly would come under the head of civic affairs. In this department there is much to be done in every community, r^ardless of size. Cooperate With City and County Governments. The Com- munity organization does not attempt to usurp the functions of the city or county government, but cooperates with and assists them. Personality and Hospitality. The American city through its leaders has come more and more to appreciate that a community has a reputation and a character, as has an individual. Just as a man has a name for being clean and enterprising and courteous, so a town is known as clean, enterprising and cour- teous. Just as a man is slovenly, selfish and boorish, so a town may be slovenly, selfish and boorish. One gets into trouble trying to put a finger on the qualities that give character to a town, or to a person either, for that matter. So is the combination, the result, indefinable. You will find as a rule that communities made up of citizens with a personality and a people who are hospitable, are happy, prosperous contented communities. What is more disgusting than to have a fellow give you the dishrag handshake. A handshake may seem insignificanii to you, but it is, in my opinion, a symptom of character and personality. Some towns remind me of a dishrag handshake. In such a greeting there is a lack of hospitality; it does not seem to come from the heart. Civic Pride and Civic Spirit. Civic pride and civic spirit is something you notice and feel the moment you arrive in a community. You either see and feel it, or the lack of it. Where there is civic pride and a civic spirit there is unself- ishness, happiness, progi-ess and an ambitious citizenship, and an ambitious community. Create a civic pride and civic spirit and you have made the first great step towards building a progressive, prosperous, healthful and happy citizenship. A very good illustration I think is made by this story: "I see," remarked a gentleman as he paid a small newsboy for his paper, "that you are putting up a good many nice buildings in your town." "That is the only kind we put up here, sir," replied the little fellow with a touch of civic pride. £> Univeesity op IToETH Cabolina 101 The community can never rise higher than the source of its ideals. Form of Government. To grow commercially, intellectually and morally there must be a foundation to build on, and this foundation in our community is our municipal government. Unforunately our municipal governments, or most of them, are in the hands of politicians instead of business men. This is, in my opinion, as it should not be. It should be one of the principal functions of a community organization (and this is not a politi- cal question) to secure a good form of government and good men to run it. In my judgment the ideal form is the council- manager form. Education and Training for Citizenship Educational work is one of foremost importance in every community. See that you have good schools, that your taxes are enough to produce sufficient revenue to have best teachers and every educational facility. A function every community might give much attention is that of training its boys and girls for citizenship. Its amazing how little many people know about the obligations and duties of citizenship. Some of the schools are doing a great work along this line, and some are not. The boys and girls of today are the citizens of tomorrow, and the welfare and prosperity of our community, our State and our nation lies in their hands. They should be given the advantage of every possible training that they might be able to effectively and creditably assume their obligations of life. The greatest service we can do a human being is to give him a right education, physical, intellectual, moral and religious. If it is our duty to do good to all, as far as in us lies, it is our duty to labor for the education of all, that no child of God may live with an enfeebled body, or a darkened mind, or a callous heart, or a perverted conscience. Health and Sanitation of the Community. An unhealthy community cannot and should not grow. Where the health of a community is endangered there is no possibility for substantial growth of a satisfied citizenship. Health and sanitation will call for the elimination of the breeding places of the fly and mosquito; regulation for disposal of garbage and trash; inspec- 102 Attainable Standards in Municipal Programs University op J^Torth Carolina 103 tioa 01 all school children, the employment of a visiting nurse and a county and community physician. Annual clean-up weeks are good, but why should they be? Make the community clean and keep it clean all the time. We would not think of taking only one annual bath, then why so treat the community in which we live. Fire Prevention, Possibly there is not a community in the State without a number of fire hazards. Any amount of effort is worth while in this direction. Volunteer inspection is desirable where the community is too small to provide inspection by fire department officers. Town Planning and Beautification. Practically every town has a reason to believe it will develop and grow; and a definite plan of development of the physical town should be adopted as early as possible and strictly adhered to. Town plans are desirable when they are executed, but entirely too many are made, printed and put upon the shelves. Environment has a great deal to do with the happiness and success of a community. Effective work can be accomplished in making unsightly places attractive, especially around the pas- senger stations; in encouraging attractive lawns, flower, and vege- table gardens. The appearance of a town has the same effect as the appearance of an individual. Charitable Ajfairs. Every community has a great many chari- table organizations to support. I would most strongly recommend a community budget in every instance. By this I mean a budget commission representing all organizations raising funds from volunteer subscriptions for charitable work. Each organi- zation participating would hold its identity. There would simply be one campaign a year to raise funds for all. Such a plan coordi- nates the work of all, eliminates the duplication of energy and ex- pense, furnishes a close check on all work and makes all organiza- tion more effective in the special phase of the work for which they are best fitted. The budget plan is operating successfully in many places in this country. A Recreation Facilities. The future of your boy and girl depends on their physical development as well as their mental training. We make Plenty of room for shops and stores — Mammon must have the best; Plenty of room for dives and dens That rot on the city's breast. Plenty of room for the lures that lead The hearts of our youths astray, But never a cent on playground spent; No, never a place to play. Plenty of room for schools and halls, Plenty of room for art; Plenty of room for teas and balls. Platform, stage and mart. Proud is the city — she finds a place For many a fad today. But she'b more than blind if she fails to find A place for the boys to play. Give them a chance for innocent sport, Give them a chance for fun; Better a playground plot than a court And a jail when the harm is done! Give them a chance — ^if you stint them now, Tomorrow you'll have to pay A larger bill for darker ill. So give them a chance to play. — Dennis A, McCarthy. It is false economy for a community not to provide a place for its grown people, as well as the children, to play. The entire citizenship can take part in such community affairs as municipal Christmas trees, municipal Hallowe'en parties, swim- ming pools, community singing, dancing, and various games. Transportation and Commnnieatlon Transportation and communication facilities are essential to the growth of every community. Communication. The mail, telephone and telegraph provide your means of communication and often these services can be ma- terially improved where there is cooperation on the part of the citizenship. T^ 14)4 Attainable Standards in Municipal Pbogeams highways. Transi>ortation over highways is the great oppor- tunity of the day. See that your community is provided with highways leading to the important centers, and from the trading district to your community. Work for the construction of good roads, and then see that they are maintained. So many com- munities are entirely too negligent in marking the roads, cross- ings, and in the smaller place, even the community. The tourist driving through never recognizes your community unless he passes the depot and there sees the name of the place. Put up a sign with the name of your town on it. It will he good advertising. Railroads. A long time ago it was the chief function of com- mercial organizations to fight the railroads. IS'ow, instead, there is an attitude of cooperation, and hotter results are accomplished. There is much to do in this line. Study your community, see if you are discriminated against; join a good traffic association. Consult your shippers and learn if they are heing discriminated against. Have your freight bills audited by a mutual traffic association. Water. If there are possibilities for water transportation in the community use every means to develop it, but be sensible. Air. Aerial transportation will possibly be on a commercial basis in a few years, and it would therefore be well to look ahead for suitable landing fields. Commercial The first thing in your mind is to preach trade at home. Eight you are, but make trading at home possible and practical. Mer- chants cannot expect to hold the trade of a community unless they give service, offer choice, and make the prices right. We hear lots about trading at home and not enough about service and price at home. To develop trade at home, places an equal re- sponsibility on the merchant and the citizen. Our communities of average size can well afford a retail credit bureau for the retail merchants. Such a bureau is a benefit to the customers as well as the merchant. It protects the merchant and prevents over-buying and extravagance of the customer. Dollar-days, pay-up weeks, retail trade excursions are good things. Wholesale Trade. There is opportunity in every centrally lo- cated community for developing a worth-while wholesale and jobbing trade. To develop this feature of commerce you possibly need to give special attention to transportation facilities and rates. * Univeesitt of Koeth Carolina Industrial 105 For years, and thank goodness those years are gone, it was the belief of citizens of commercial organizations and secretaries that the chief activities of commercial organizations was to go factory grabbing, and then to offer them everything under the sun, free sites, bonuses, free taxes, free water, etc. It is all wrong, it was all wrong. I wish to most emphatically denounce the giving of free sites or bonuses of any character. When you seek an in- dustry seek one that can succeed in your community, one that can operate to an advantage in your community, and one that can make a profit. You don't want an industry that is on the charity list. An industry that is worth while wants to go to the right location regardless of the saving of a few dollars. Free sites, etc., encour- age undesirable industrial development in most every case. The factory you want is the one that can operate in your community economically. It isn't the job of Commercial organization to sell stock in foreign concerns. There are instances, however, where it is the place of the organization to sell stock in a locally developed enter- prise for the good of the city. I would discourage the industry that will locate in your community provided you come to their financial assistance. Learn the kind of industry that will succeed. Study your natural resources, know what your raw materials are, and your near-by markets. Do not work blindly. Fubllelty and AdTertising He was the best secretary many years ago, or rather he thought he was, who could exaggerate the most. He was wrong. The commercial organization is a business institution on a business basis and the publicity and advertising should be done on that basis. But to this day you can pick up literature from certain towns and find that they claim to be the healthiest place on earth, have the purest water in the country, where you can live the cheapest of any place, where the climate is better all year round than anywhere else. The modern secretary and the modern or- ganization expresses disapproval of such practice. It is unethical, undignified, untruthful, and bad business. Almost every community, matters not how small, can afford to spend a few dollars and have printed a large supply of 3 1^ by 5 folders briefly describing the town, to be sent out in every mail. This I think to be one of the best forms of community advertising. An annual postcard day is a good stunt. The real news about ,your town sent the leading papers, is splendid publicity. Every n. 106 Attainable Standasds in Municipal Pboosams town ahould have a good newspaper; if not large enough for a daily, it should support the nearest and best, and have a good weekly of its own. iNTewspaper and magazine advertising are good where the money is available to purchase the space to advertise definitely. Of course it is necessary for resort towns to do exten- sive advertising, and it p^s. For the community that is prepared to handle them, conven- tions are good advertising and produce good business. I do not favor and do not think it right for a community to spend much money on entertaining conventions. The day will soon be here when all conventions will establish a registration fee which will pay all cost of handling each convention. Agriculture Last but not least in importance, I call your attention to work to be done in connection with your rural development. Agrculture is the basis of all prosperity. Every good farm is worth just as much to a community as a small size factory. See that you have a good county farm agent, home demonstration agent. The employment of these is, I believe, one of the best in- vestments a county can make. These workers will increase the productive ability of the farm lands; they will cause the lands to enhance in value. Visit the farmers, entertain them annually. Hold a farmers' congress, establish a curb market. See that he is treated fairly when he comes to town, make him comfortable, provide a rest room for him and his family. Although I believe the outline of activities which I have men- tioned are attainable, the organization that can attain them in any short space of time will have accomplished much. In planning every community activity the citizenship should be far-sighted and look into the future. For, "When we build, let us think that we build forever. Let it not be for the present delight, nor for present use alone. Let it be such work as our descendants will thank us for, land let us think, as we lay stone on stone, that a time is to come when those stones will be sacred be- cause our hands have touched them, and that men will say as they look upon the labor and wrought substance of them, See ! This our fathers did for us." — John Ruskin. ^f University of ITobth Carolina ATTAINABLE STANDARDS IN COMMUNITY COUNCILS 107 J. p. Stbinbe, Professor of Social Technology, UniversUv of NoHh Carolina One of the problems confronted by any city, whether large or small, is the proper coordination of its social welfare activi- ties. Even in cities where to the ordinary observer social agen- cies seem to occupy a very subordinate place, it is surprising to find how many different organizations are touching upon some phase of welfare work. Within recent years there has been a rapid development of private social agencies, each sponsored by a group of people whose chief interest is centered upon a definite social problem. Along with this growth of private agencies there has been a tendency for the government to accept increasing responsibility for the welfare of its citizens, a move- ment which in this State has culminated in provision for certain governmental activities carried on in each county under the direc- tion of the department of public welfare. In addition to these formally organized public and private social agencies, there is a large number of other organizations — civic, fraternal, religious, educational, and economic — that place considerable emphasis on social aspects of their work and thereby take their place among the multitude of agencies at work in the field of social betterment. As a result of these extremely varied and frequently unrelated attacks on social problems, it has become almost impossible in many instances for a city to measure accurately what its citi- zens are accomplishing in the field of social welfare. Whether or not there is duplication of effort or neglect of important activities is not readily apparent. In too many cities social welfare work has developed in a hit-and-miss fashion and not as a part of a well thought out plan of community betterment. Certain problems, because of their nature, attract public attention, and agencies to deal with them are promptly organized. Other problems may be less spectacular and consequently tend to be overlooked or at least fail to receive adequate attention. The difficulty is that no group of people has been charged with respon- sibility for looking at the entire city or community and working out a comprehensive welfare program designed to meet the whole situation. As one step toward a more unified and better correlated attack on social problems, there is being organized in many cities what is usually called a community council or council of social agencies. This is not an attempt to foist upon the community 1i I II I 108 Attainable Standards in Municipal Pboobams an additional agency with its demands for the support of the people. iN'either is it an effort to centralize social welfare work by doing away with individual agencies. On the contrary it is simply a device for gathering the specialized agencies into a cooperative movement that will conserve their necessary freedom and at the same time make joint action possible. . A community council is made up of the official represen- tatives of all local agencies engaged in any phase of social welfare work. Usually it is made even more widely representative of all the interests in the city by adding to its membership several members at large who represent the community as a whole. Executive heads of certain city and county departments, such as the health officer, public health nurse, county superintendent of public welfare, farm and home demonstration agents, and superintendent of schools are ex officio members of the Council. It is obvious that such an organization provides in the most effective way the machinery needed for general oversight of the entire welfare work of the community. Its membership is com- posed of those best qualified for leadership in this field. Every individual agency is officially represented and has the opportunity of interpreting its work to other members of the council. There is no need to fear that the council will get into the hands of an outstanding group desirous of dictating social policies, for its mem- bership is made up of officially designated representatives of the different agencies. The community council thus becomes the organization to which the people can look for leadership in their wider plans for community betterment. If there is any question about the duplication of work among agencies, as for instance among those engaged in relief work, the community council is qualified to study the situation and pass judgment upon it. If the city needs better recreational facilities, the community council can take steps to bring about the organization of an agency interested in recreation or ask existing agencies to enlarge their program to meet this need. The important thing is that the community council provides a group of influential and well qualified people whose first thought is not the promotion of any particular agency but rather the welfare of the whole city. Their duty is to see the city with all its needs and resources and then work out a comprehensive program in which each agency will find its appropriate part. A large part of the work of the community council is carried on through its special and standing committees whose member- Univeesity op ITobth Caeolina 109 ship is made up of those actively interested in the different problems that need consideration. Through this plan of com- mittee organization there is at once brought together the people working in similar fields who need the opportunity for an inter- change of opinions and plans in oider to avoid misunderstanding and friction. Suppose, for instance, the problem of juvenile delinquency is made the subject of investigation by the commu- nity council. A conmiittee to study this subject is appointed and its membership will consist of represemtatives from the department of public welfare, the juvenile court, the schools, the churches, the recreational agencies, rotary club, and any other organization whose program gives them a definite interest in this field. The simple meeting together of such a group as this, means a step forward in a mutual understanding of what is being done and cannot help but further the coordination of their varied activities. When their report is made to the community council, opportunity is afforded this larger group to estimate this work from the viewpoint of the whole community and to recommend whatever adjustments or enlargements of the pro- grams of individual agencies may seem to be advisable. Any formal action of the community council in such a matter as this, is of course purely advisory and is not binding upon the individual agencies until formally approved by their boards of directors. There is thus no danger of the community council becoming a super-agency with power to exert arbitrary authority. Its decisions will, however, have great influence and rightly so, for the community council when properly organized, is repre- sentative of the best social thought of the city. The community council as thus outlined is not an adminis- trative body. Its chief task is the formulation of a comprehensive program for the whole conununity and the coordination of the activities of the different agencies so that all parts of the pro- gram may be carried forward most smoothly and effectively. This work, except in the largest cities, does not require the services of a paid executive. The council, therefore, does not need financial support. Through its committees a large share of its work is done and any clerical or executive help they need can readily be supplied by the different agencies. In some places the community council goes a step beyond its customary coordinating function and accepts responsibility for financing those agencies within the council that desire to coop- operate in a joint budget plan. When this is done, the council is generally known as a financial federation, a type of organi- ( II f 110 Attaiwabm Stamdabds in MuNioiPAi, Pboobams zation that has proved very successful in many of the lanrest tZJ^^ '^T^ ^""^ ^"'"'''^''» federation^ lels co3n A tT^T ?T' ^f T ^^'^ ^«" ^ "'J'^Pted to their needs. f1;J kV ^!* **"■ "" *''^ *««""'«« tliat solicit support from fZni"'' ""^^ooncerted annual drive for funds u^ally mX t;„n n?^ weal to the business man who welcomes the applica! ™u "'"'^f'' ^'''i"T "'^*l""ls *o the administration of social ilSrrthr/unds^:/°f ^''^'^^^^ ^"'^''''^^ <=--" that ad" £ overtW ^"°^V ?^ ^*« constituent agencies has greater control to the work of f *H- " r""' *^ •""^'"'" *''''' '™it« its efforts ^o^tflT of coordination alone. In the minds of many ^Pnlti ^T°* *^°'**''"'y '"^""^ fi^'^^eial federations of social agencies marks a new era in social welfare work and will do rd^nt^rLTuencl^'" *" ^''^"^*''^'' ^^^^ -^--»-- -^ wprnruM becbeatiojtal requirements OF SMALL TOWNS AND VILLAGES E. C. LiiojEMAN, Professor of Economics and Sociology. North Carolina State College for Women cwSfiftv ?r"-}- '""^^ "f /"•''««« i-^l^-le population Clusters of fifty families or five hundred people and all the inter- AilV*"^',"P '^" P^P"'"''*"' "^ »^« ^^d families or five ?oZ« ?1,^'°P u. ^"^ °'''°-^ '"^^ ^'*1'« tl'is elassification will possess the wealth necessary to maintain a separate civic depart- ment devoted to the promotion of recreation. The following recommendations are based upon the above considerations ^ I. £qiilpment Every village and towii should have at least one playground for younger children. This space should have an aref of a minimum of one-eighth of an acre. Playgrounds for smaller S r^'^" ? ^ri^'. '^'^' '''^ '^' sun; if trees are Lt"S able, artificially shaded spots should be provided. An eighth of an acre playground should have at least four sand-boxef each capable of accommodating six to ten children. The sand VonM uJj'T^ f ^f if^r ""^^^^^ '^^"^^ P^^^^« ^^ atretic park suit- able for baseball, football, field hockey, basket-ball and volley woLn «1^ '^!r '' *^ ^//tili^ed by boys and girls and men and women above the age of fourteen. K. Univbesity of North Cabolika 111 Each village and town should provide an indoor place for the following types of recreation : indoor baseball, basketball, voUey ball, group games, and gymnastics. The minimum floor space should be 40 by 60 feet. The flooring should be of hard wood. Such room or hall should provide bathing facilities for persons taking part in games. II. Sapenrision The responsibility of promoting a constructive recreation pro- gram for the younger children of a smaU town sliould r^t with the school authorities. One teacher of each school should be employed with the thought in mind of utilizing a portion of her or his time in play and recreation supervision. Such persons should be selected because of their training and interest m recreation. The school authorities will be greatly helped in their recreational efforts, if the town supports them by means of a voluntary play- ground and recreational association. This association may assist in creating sentiment favorable for organized play, may assist in financing the program, may assist in securing leadership for sum- mer work, and may assist in training local, resident leadership. Small towns should avail themselves of all advice and assist- ance from such agencies as the county Y. M. C. A., Y. W. C. A., Boy Scouts, Girl Scouts, etc., in supplying the recreational needs of their various age groups. These agencies should also be enlisted in the program of training local leaders. Competitive teams in baseball, basket-ball, and football should not be organized unless there is some trained person m the com- munity qualified to train the players. The supervision of the playgrounds for younger children should be in the hands of persons who have been carefully selected for their ability and for their understanding of child life. Best results from a recreation program are realized when the supervisors are paid for their work. Volunteer leadership should be used as frequently as possible, but the steady, year-round program needs the attention of persons who take professional as well as sympathetic interest in the task. The assistance of national and state agencies should be fully utilized. Such agencies as the Playground and Recreation Asso- ciation of America, the North Carolina Community bervice ±Ju- reau, etc., should be enlisted. n i_ ■ 112 Attainable Standards in Municipal Pbogbams III. Finances Small towns should finance their recreational programs from three sources : the public school hoard, the town or city govern- ment, and by private subscriptions. After permanent equipment has been provided the minimum amount necessary for promoting an adequate recreation program should ibe $500 per y^ar for a village of 500 population and $2000 per year for a town of 5,000 population. About three-fourths of these amounts should be expended for supervision and one-fourth for renewing equipment and paraphernalia. MDTIMUlf ATTAINABLE STANDARDS IN HIGH SCHOOL EDUCA- TION FOB SMALL TOWNS AND VILLAGES N. W. Wai^kbb, Acting Dean of the School of Education There is no valid reason why every small town and village of from ^Ye hundred to twenty-five hundred inhabitants should not have good high school facilities for its younger people. There are obstacles in the way, to be sure, and I do not discount their in- fluence in retarding high school progress, but they can be over- come under capable leadership. To be capable, leadership must be intelligent and sympathetic, and possessed of vision, patience, and determination. As a practical working definition of "good high school facili- ties," which for the purpose of this paper may be implied in "mini- mum attainable standards," let us consider the following things as necessary: 1. A Four Year Curriculum. I mean four years of good in- struction of from 32 to 36 weeks to the year, based upon a seven- year elementary school curriculum. (Personally I should greatly prefer the 6-3-3 plan of organization, but I am taking the 7-4 2. Teaching Force: Qualifications and Pay. There should be a teaching force of, say, six teachers, all well educated (graduates of standard colleges), specially trained for the particular work they are expected to do, and paid salaries sufficient to enable them to live somewhat above the "pain economy" level. 3. The School Plant. (1) Building. There should be a good building planned and constructed in accordance with the demands of modem school architecture and in accordance with local needs and purposes. Its heating, lighting, ventilation, and sanitary i% University of ITobth Carolina 113 arrangements should conform to scientific standards. There must be classrooms sufficient for the number of pupils to be educated ; laboratories for home economics, natural science and agriculture, all equipped for the specific uses to which they are to be put ; an auditorium of capacity sufficient to accommodate the school and half the community; a library and reading room in which there should be from 1000 to 2500 volumes of good literature and refer- ence books, and some of the standard magazines; teachers' rest room; and gymnasium. (2) Playground and athletic field. Therj should be ample space for playgrounds and athletic field, and those should be equipped with such apparatus as is necessary for the different games and sports usually participated in by high s^Jiool boys and girls. 3. The Program of Studies. This should be determined by the interests, aptitudes, and abilities of the pupils themselves, and the demands of the social order in which they are soon to become more active participants. These may be subsumed under three groups of fundamental aims of secondary education. (1) The "Social- Civic-Aim," meaning the preparation of the individual as a pros- pective citizen and cooperating member of society; (2) the "Eco- nomic-Vocational Aim," meaning the preparation of the individual as a prospective worker and producer; (3) the "Individualistic- Avocational Aim," meaning the preparation of the individual for those activities which, though involving individual action, the utilization of leisure, and the development of personality, are of supreme importance to the welfare of society. The six teachers should be chosen for their ability to give sound instruction in the following branches : one for English ; one for social studies (including history, community civics, elementary economics, and elementary social problems) ; one for natural science and mathematics; one for home economics including do- mestic science and domestic art) ; one for agriculture,and one for foreign language. There are other subjects that should not be overlooked, to be sure, such as music and physical education, for example. If additional teachers can not be provided for them, provision should certainly be made for them in the organization of the program of studies and in the selection of the teaching force. !N"ow, it will be objected by some that to support the sort of high school that I have in mind would put too great a burden on the small town or village. True it might, and would in those small towns and villages so selfishly inclined that they cannot see their relation to the surrounding country. Such places will con- 8 114 Attainable Standaeds in Municipal Peoorams tinue to struggle along, until they are shocked out of their com- placency, with the most meagre sort of high school facilities — denying to their own boys and girls good high school advantages because of the fact that they cannot appreciate the vital social and civic relationships their educational interests bear to those of the surrounding country and to those of the county. This means that if small towns and villages are to have good high school facilities for their own children, they must lose their educational identity in order to find it. That is to say, the county is the logical unit of organization, supervision, control, and finan- cial support. The greatest of these, for most places, is financial support. In order to have financial support sufficient to do the things I have indicated, there must be students enough enrolled to require such a teaching force as I have indicated When the small towns and villages see their high school problems in this light and are willing to cooperate in the manner implied, these standards, under proper educational direction of the capable super- intendent of schools, will become attainable, and no smaU town or village that is civic minded and progressive should be satisfied with anything less. Two new Bulletins relating to community activities have just been issued by the University. They are: "The Rural Play- ground" and "The Parent-Teacher Association," both by Pro- fessor Harold D. Meyer of The School of Public Welfare. "Community Progress" published bi-monthly by the N'orth Carolina College for Women and edited by Professor E. C. Linde- man is a standard of excellence in its field and is proving of great value to many readers. i4- ^ < CHAPTER VI THE COUNTY AND MUNICIPALITY COUNTY GOVERNMENT AND PUBLIC EDUCATION Hon. E. C. Brooks, State Superintendent of Public Instruction The continued growth of our public school system depends upon efficient county government. It is a fact easily demonstrated that in those counties which have had the benefits of good, progressive government for several years the public school system, as a rule, is better organized and more efficiently administered than in counties poorly governed. The cause is not hard to discover. The county is the unit of self government. The relation of the State to it is one of supervision and assistance. The county is likewise the unit of educational administration and the relation of the State to the public school system is one of supervision and assistance. The board of county commissioners is the governing body of the county and to this body the public schools must like- wise look for support. Therefore, since the unit of government and of educational administration are one and the same whatever affects general county government will also affect the public school system, and frequently defects in the latter are easily traceable to the same defects that run through the whole county government. The counties are not able to govern themselves and promote the progress of the people without State supervision and assistance. However, the State through a failure to exercise proper super- vision encourages carelessness and waste in the collection and ex- penditure of public funds. Such defects inevitably breed discon- tent and suspicion among the people. This is true whether this neglect relates to the administration of justice, the building of roads, the development of our natural resources or the education of the youth. It is my purpose to specify wherein county government is de- fective and suggest certain remedies. The State Department of Education has made a study of county government in several counties with special reference to collect- i ' r 116 Attainable Standards in Municipal Programs ing and expending public funds. We were led to this study by ob- serving certain facts while administering the State Public School Fund for the year 1919-20. One county reported that all but about 2% of the gross amount of the taxes were collected. It was easy to see that the law was observed strictly in the expenditure o' the funds. This county is well governed. Another county not many miles away showed a loss of about 15% and it was difficult to tell whether the public schools had to their credit a surplus or a deficit. However, it was certain that this county was each year running behind, and many of its accounts were unpaid. If these two counties re- ceive support from the State according to their apparent needs, the county that is least efficient in government would be bene- fited most from State support. You will please keep in mind that this study was made not at the close of the school year 1920-21, but at the close of the year 1919-20, the most prosperous year in our history, and a year in which it was comparatively easy to collect taxes. "We examined the records of a number of counties for the pur- pose of discovering the cause of this difference in the number of delinquent tax payers. While making this study we discovered defects, almost wholly the result of ignorance and carelessness, that ought to be corrected. Therefore, what I shall report here is not said in a spirit of general criticism and fault fiinding, but for the purpose of calling the attention of patriotic citizens to glaring defects that can be corrected in every county, and must be corrected if we expect to secure the greatest benefits ^rom the ex- penditure of large and still larger sums for public improvement, and hold the confidence and support of the people in the pro- gressive program that is now remaking the State. These defects are — 1. The county officials in many counties do not know the cost of county government. They do not know the size of the bonded indebtedness nor the cost of the several departments. As a result, they do not know what tax rates to levy to meet the full legitimate expenses of the county. As a rule, they are pledged to keep taxes down. Therefore, the authorities try to curtail expenses without really knowing the financial condition of the county or how to economize. 2. The number of delinquent tax payers in many counties is entirely too large. The leakage here is great, and it is almost entirely attributable to poor government. As a result, it becomes University op ITorth Carolina 117 necessary for the officials to increase the tax rates in order to provide for a shortage that is partly inexcusable. Good govern- ment in this respect would result in a saving of public funds, and at the same time it would increase the rate of progress. 3. The fines imposed by magistrates and the fines, forfeitures and penalties of the towns and counties are not always properly accounted for and applied in accordance with law. 4. The funds collected are not segregated in accordance with law. Some departments, as a result, run far short of their Inti- mate needs, while others receive more than their share of the funds. Therefore, it becomes necessary to borrow for some de- partments because of extravagance or liberal expenditure in other departments. Such unbusiness like methods will cause an in- crease in the bonded indebtedness or the taxes for the succeeding year must be raised to meet the deficit. 5. The special local taxes in many counties are not properly levied, collected and disbursed. The people have a fine enthu- siasm for voting local taxes for the improvement of roads and schools. This enthusiasm should not be destroyed because of care- lessness and inefficiency in handling local funds. In some counties it was impossible for us to find any record of the local taxes levied, the amount of money collected and how it was expended. Moreover, we have positive evidence that some of the larger tax payers escaped this tax altogether. For example; in one local tax district the Postal Telegraph Company, the Pullman Car Company, the American Telephone Company, The Southern Bell Telephone Company and the Western Union Telegraph Company, all were entitled to pay taxes but neither had paid a cent of taxes in some years. They were not even on the tax books. This, of course, was pure carelessness. But the rate of taxes had to be increased because of this carelessness. 6. Finally it is very evident that in most counties there is not enough unity of management to fix responsibility and insure effi- ciency. In certain counties the officials begged us to show them how to organize the business so that the people^s money might be safeguarded. This is an example of ignorance pathetically call- ing for expert State supervision. In pointing out these defects we are not giving many people of the State anything new or sensational. The number of letters received and the newspaper comments since I first called attention publicly to them are sufficient evidence that these defects have been known for some time by numbers of people in counties where K ■ik 118 Attainable Standabds in Municipal Fboobams they exist. Therefore, we sheuld be considering seriously effective remedies and should act vigorously and promptly. The first step to take, it seems to me, is to arouse the public conscience through publicity that will cause the people to demand better government. What do you suppose would be the effect on the people of many counties if the exact condition of the business were published in detail in this week's papers and in terms that the people could understand? Perhaps it would be better not to go into details until the officials have had time to get their af- fairs straight. But they must be made straight or the people will become disgusted and cease to support the progressive measures that are now registering a new era in the State. The people should know who are excused from paying taxes and how every dollar of the money has been spent. The best government is now found in those counties whose accounts are well audited and pub- lished periodically. County auditors have given business-like methods to many counties and saved the people thousands of dollars, and given them confidence in the business management. In the second place. State supervision should be sufficient to protect the public, and to unify county management so as to avoid the multiplication of independent officials. The State bank examiner closes a bank as soon as it reaches the danger line. County officials should be required to meet a similar standard of safety. A system of audits that will exhibit these defects should be uniform and made under some responsible head like the State Auditor. Moreover, whenever it is made to appear that county officials are incompetent and are failing to meet a given standard of efficiency, they should be removed and temporary ap- pointments should be made by some responsible county authority until the people have a chance again to elect their successors. "New and inexperienced officials should be given a reasonable time in which to qualify for their duties and the State should give them all the help possible. But they should qualify. It is unfair to a sheriff, for example, for the commissioners to allow his books to run from year to year without a complete settlement, as is sometimes the case, and then after he becomes hopelessly involved due to a failure to settle annually, his whole career is destroyed and his personal fortunes wrecked as a result. In one county a sheriff, owing to poor book-keeping, overpaid his accounts by more than a thousand dollars and he was wholly ignorant of the mis- take until his attention was called to it. He had settled for the dog tax twice. The State owes it to the individual and to the public to see that both are protected from incompetent officials. r A 1 Univeksity of North Carolina 119 Finally our high schools, colleges and university, should give specific instruction in local self-government. They do teach the history and the forms of government, but students receive too little instruction in local self-government. There will be perhaps 40,000 pupils enrolled in the high schools and 15,000 enrolled in our higher institutions this year. These within a few years will be the State's lenders, and yet they receive too little instruc- tion in the greatest lesson that an individual or a group of individuals ever learned — namely, how to govern properly. What is good government among students, and how can they be taught to govern themselves properly? How can they be led to detect weaknesses and defects in government? What is a well governed town or county and where can it be found? Is the county or city government in which the institu- tion is located well governed? What are its defects? Are the public funds safeguarded and wisely spent? If our colleges and university would give special attention to local government and fifteen thousand students were taught annually to know what i* good county or city government, they would be, within a few years, the strongest factors in preserving local self-government and in checking the drift toward centralization of power in the state and the nation. The very first word in education should be government — self-government, respect for law and order, and how to cooperate in producing a self-governing people. We have groups of people organizing into quasi governmental bodies — manufacturers, com- mercial institutions, laborers, farmers, professional men and women. This tendency to organize for local self-government is a natural social instinct. But the inclination of some is to elevate the rule of their organization above the law of the county or the State. This is perilously near sovietism. The county and the State should rise above all, and all should cooperate to this end. The spirit of democracy can not thrive in any other way. ATTAMTABLE STAKDABDS IN PUBLIC WELFABE Mrs Clabbncb A. Johnson, State Commissioner of Public Welfare "That all men are created equal" is fallacious theory that has influenced and permeated government to the detriment of human ;progre98. Transmissible disease exists and is handed J I r I 120 Attainable Standards in Municipal Programs down from generation to generation; the mentally unfit continue to reproduce their kind with the result that a large per cent of our population is born with fundamental inequalities which make a vast difference between children who come into the world with tainted blood or lack of mental ability, and clean-blooded, normal individuals. Moreover, the facilities for life equipment in the way of educational advantages, protection from child labor, opportunities for health, etc., for every individual have been obviously unequal. Recognition of these facts has resulted in Korth Carolina's making an honest effort to give to all citizens more equal oppor- tunities by incorporating into government certain necessary pro- visions for the protection and care of the weak and handicapped, and which will also provide for normal people an increased capacity for a more abundant life. Hereafter the State is to make her chief objective a human one rather than a mechanical one, and acknowledge her obligation to be pitiful and kind. Legislation has been shot through with philanthropy, and into the warp and woof of democracy has been woven the golden thread of a great experiment in justice to all regardless of race or creed, the North Carolina Plan of Public Welfare— a standard service of democracy to the people. For the interpretation of this plan of pioneer governmental social service into terms of public understanding, and for the actual adjusting of philanthropic legislation to human needs certain machinery is necessary, and this is found in the State Board of Charities and Public Welfare with the various rami- fications of county boards and county welfare officers affiliated with the juvenile courts and institutions for defectives, delin- quents and dependents. The legal authority for this machinery having been found fairly adequate, our present great concern is for the quality of the human material in the way of officials whose duty it becomes to carry out the law. It's probably easier to get good laws than it is to put such laws into operation for the benefit of society, and this becomes an individual problem of personality and standards of morality. At a conference of county superintendents of public welfare held at the State University in the summer of '21, a tentative k I University of !N'orth Carolina 121 « « basis for standards for county superintendents was proposed as follows : (The Zero point represents a sort of minimum for carrying the work with satisfaction to the cause, the country, and the state. Above and below the minimum or norm are standards to be reached on the one hand, and from which we want to depart on the other.) ABOVE 4. Continued experience, participation in cooperative efforts, and outstanding service to county and state. 3. Continued experience, participation in cooperative efforts, and outstanding service to county. 2. Continued experience with at least one year of special training. 1. Continued experience with at least two summer sessions of special training. MINIMUM 0. Full time; unqualified belief in the work; some special training and experience for the work. BELOW 1. Part time; unqualified belief in the work; some training and experience. 2. Full time, political appointment, no experience or training. 3. Part time, expediency appointment; no experience or training. 4. No ofilcer whatsoever. Governing bodies with electives power (boards of education and county commissioners) should carefully consider these standards in the selection of officers. Dissatisfaction with welfare work so far has usually resulted from the failure of officials, not because the law is inadequate nor because there is any outstand- ing weakness in the plan of public welfare. The State Board of Charities and Public Welfare cooperat- ing with the University through the School of Public Welfare is charged with the responsibility, (1) to establish uniform methods of doing social work, and (2) to supply a minimum fund of common I i I s 122 Attainable Standards in Municipal Fboosams knowledge as the equipment of the social worker. It is not the purpose of either agency to demand of the worker more than he is able to accomplish or more than the community is prepared to receive, but if we are ever to be able to collect accurate statistics of the welfare work or to get definite informa- tion concerning the problems affecting the work — such as, for instance, the nimiber of children who come into the juvenile courts and the causes which brought them into the courts, children found working illegally and the number of permits issued and for what reason, amounts the counties are spending on outside poor relief (or poor funds) and how effective such relief is, etc., — it must be through an uniform and systematic system of record keeping and reporting. As to a minimum fund of com- mon knowledge, this is essential if we are to avoid experimenting upon human beings, and should include certain recognized standards of child welfare, satisfactory methods of social inves- tigation, knowledge of juvenile court ideals and procedure, and probation work, relief giving as incidental to constructive social work, etc. There is one oflScial in this State who by virtue of his office plays an important part in the child welfare program — i.e., the clerk of the Superior Court who is ex officio judge of the county juvenile court. Clerks of the court in ITorth Carolina have always had certain responsibilities regarding minor and depend- ent children, and these powers and responsibilities have been increased and enlarged by the Juvenile Court Act and now include delinquents. Clerks of the court in North Carolina as a whole are rendering effective service as judges of the juvenile court. This work has been added to the already rather arduous duties of the clerk of the court without consulting him as to his desire to do the work or considering his qualifications, but it is doubtful if there is any other set of officials in the State who without training or experience in this line of work would render better service. In future, however, clerks of the court in North Carolina should be elected to office on an equal basis of their ability to act as judges of the juvenile court with that ability to carry on the business and clerical work of the clerk's office. North Carolina is a rural state stretching from the mountains to the coast composed of one hundred counties that cover a large, and in some instances almost inaccessible, territory. Several of Univeesity of Noeth Carolina 123 these counties have no railroad and no newspaper. To put over a state-wide movement like the plan of public welfare with such conditions to confront requires ceaseless energy, infinite patience, and an unflagging determination to succeed in the face of many discouragements. But with the moral and understanding support of many good citizens, it can and will be done. ATTAINABLE 8TANDABDS IN PUBLIC HEALTH • Dr. W. S. Rankin, the State Health Officer, discussed with the Conference the policies of the North Carolina State Board of Health for placing the county health work, in which the State cooperated and financially assisted, upon a cost basis. Dr. Ran- kin pointed out that the two main values of such a system were '(1) that it gave a standard of measurement of the efficiency of local health officers, which operated regardless of the variations in the size of budgets employed, or the character of the work pur- sued; and (2) it afforded a basis of State subsidy to counties where the condition of the subsidy was actual service rendered, and not office holding. To those who may be interested in ascer- taining the details of the plan, as outlined by Dr. Rankin, it is suggested that they communicate direct with the State Board of Health for their literature dealing with the general idea. The complete set of values, through which Dr. Rankin sets forth his attainable standards in Public Health work, may be had from his office. It makes an epoch in the measurement of social work of any sort. MINIMUM STANDARDS FOB COUNTY SCHOOL WOBK Edgar W. Knight, Professor of Rural Education, University of North Carolina The minimum standards for effective educational work of the county seem to be : 1. A larger unit of support and direction than now exists in actual practice. For purposes of business administration N'orth Carolina is divided into counties. The county is also the natural unit for the successful administration of public schools. In theory at least the county is the educational unit now in use in ITorth Carolina, but the form of organization and administration actually practiced in the State is generally that of the local district. This unit of educational work is under the ■tef f) 124 Attainable Standards m Municipal Progeams control of a local board of trustees and loosely knit together in the county organization. Too often the work of the local schtwl is carried on with no concern or interest beyond the district lines, often with little unity of purpose or conception of broad educa- tional policies. As a result, the rural school often suffers with ineffective teachers, poor equipment, and a lack of helpful super- vision and direction. Under the practice of the local district unit a uniform system of schools can not be made to extend over the entire county. The organization and administration of the school work are largely by locality which must necessarily remain one- sided in development. Such a system is wasteful and antiquated. It needs to be replaced by the county as the unit of support, organization, administration, and supervision. All public elemen- tary and secondary schools and all educational agencies outside a very few of our larger cities should be consolidated and coordi- nated into one system with sound and adequate financial support and expert business and professional direction, if the rural child of T^orth Carolina is to be guaranteed the educational opportunity now afforded the child of the city. Outside the cities it seems desirable that the smallest legally allowable unit for local taxa- tion for schools should be the county. Local taxation in arbitra- rily formed districts, often weak and small, should be discouraged, if not prohibited by legislation. Such a practice can not longer promote public educational progress or wholesome educational sentiment, nor can it longer be justified as a temporary expedient. It encourages selfishness and provincialism. 2. A stronger county board of educational control. Such a board should have powers and duties not unlike those of the city school board and the members should be selected from the citi- zens at large, for reasonably long terms, and for their recognized ability to direct safely and adequately the important work of the rural schools. It would be helpful if the State could prescribe definite educational and business qualifications for membership on the county board of education. 3. A better type of county superintendent. It can not be emphasized too often or too strongly that the county superintend- ent of schools is strategically the most important of all the county officers. Potentially he is the most influential. He bears to the county a relationship similar to that of the state superintendent to the State. He is the central figure of all public educational agencies of the county and his principal functions are to initiate, establish, and maintain proper relationships among such agen- cies. He should, therefore, be a well trained educational leader University of North Carolina 125 •~^'4 v« and executive and chosen for administrative and professional fitness. The difficult task he is called to do requires a high degree of skill which, can be acquired by special training only or by long experience. And for this reason, county boards of educa- tional control should be encouraged to use a wider field than the county for the selection of this official and should be given freedom to seek anywhere for leadership and competency for this impor- tant position, without reference to residence, politics or sex. The tenure of office should be longer than two years; and after a reasonable period to prove the superintendent's ability, that officer should be appointed perhaps for an indefinite term, certainly for a term of four or ^\e years, and at a salary in keeping with the importance of the work. By these means the office could in time be removed from the deadening influence of politics — an ill from which it has too long suffered in N"orth Carolina. Interest should therefore center not so much in the officer as in the office, not in the superintendent but in the superintendency. The office of county superintendent needs to be given a ne^v meaning and a new life, for without it the county superintendent of schools will continue to be the clerk and the political appendage which tradition and an archaic system have made of him. The office can become more effective if the routine of it can be sys- tematized and reduced to a minimum. This can be done by giving the superintendent sufficient clerical and supervisory assistance to relieve him of the tedious and lifeless details of the work. Proper business principles and methods should be employed if the work of directing the schools is ever to be regarded with the same importance as that which attaches to successful business organization. Nothing destroys public confidence so thoroughly and so readily as haphazard, careless, or unsystematic methods of doing business, and nothing so inspires public confidence as the use of sound business principles. In addition to the use of business-like principles, there is urgent need for keeping the public informed thoroughly and hon- estly of the school work. The schools are public in character. They are established and should be administered for the public good. The public is entitled to intelligible acquaintance with their operation. Correct and wholesome information should be made available to the public through the press, bulletins, circular letters, etc. It is better to take time to inform the public in safe ways than to allow misinformation to work disaster at the time a well informed public is needed. Expert financial and uniform accounting assistance is greatly needed in the work of the county superintendency of schools. 126 Attainable Standards in Municipal Pbograms 1' 4. Closer and more effective supervision. One large secret of better educational work in urban communities is due to better supervision of the urban schools. The compactness of organiza- tion aids coordination and directness and promotes cooperation of teachers, school officials and the public generally. Here is another argument for the consolidation of the smaller schools into larger schools. The rural teacher of N'orth Carolina suffers from lack of frequent personal contact with other teachers and is deprived of the stimulation and enthusiasm that come from professional assistance. Provision should be made for super- visory assistance for the superintendent whose professional work IS now necessarily incidental, accidental, or haphazard inspec- tion. The state should make legal and adequate provision for such assistance in every county and require the county board to provide a special supervisor for every seventy-five or one hundred teachers in the county. 5. Kational plans of rural school consolidation and transporta- tion. Most of the inequalities that now exist in public education m mrth Carolina can be removed by the consolidation of the small, weak, poorly graded and poorly taught schools into large, strong, well graded schools, properly located, adequately equipped, effectively taught by competent, well trained teachers. The pur- pose of the consolidated school is to give larger and better edu- cational service to the community. Intelligent consolidation means a larger taxable area, better buildings and equipment, better teachers, more nearly complete courses of study, better grading and classification of pupils, closer and more intelligent super- vision, more wholesome and attractive community spirit, richer and stronger community life. The minimum standard for rural school consolidation and transportation requires the school au- thorities to consider the needs of the county at large rather than the desires of special localities. The county should be viewed as a whole instead of by parts or local districts. Given an intelligent, well trained, progressive county superin- tendent of vision, tact, resourcefulness, who is the minimum essential of a progressive county school system, most of these other minimum standards will be attained in time. < University of I^orth Carolina 127 AN ATTAINABLE STANDARD OF MUNICIPAL AND COUNTY LIBBABT SERTICE L. R. Wilson, Kenan Professor of Library Administration, University of North Carolina Massachusetts, with a library in every town within its borders except one, has long been cited as furnishing the best example of library service for the entire population of a state. Recently, however, Massachusetts has ceased to be considered as furnishing the most appropriate example of library service for country dwellers in sparsely settled, agricultural areas such as iN'orth Carolina where the county rather than the town is the unit of government. California, with its county library located at the county seat or prominent town, and organized and admin- istered on a county basis, with numerous county substations, has taken Massachusetts' place, with the result that its plan is now receiving general recognition in the rural South, and particularly in IN^orth Carolina. Although no library in I^orth Carolina has been organized on strictly county library lines, a beginning in successful county library work has already been made in the State. In Guilford, Durham, and Forsyth counties, the county commissioners or the county boards of education, singly or jointly, have supplemented the appropriations made by the cities for library purposes. In return the libraries have been thrown open to all the residents of the counties either through direct service at the county seat, or through school or branch libraries located in all sections of the counties and served either by parcels post or by automobiles or wagons. While practice has in no wise been standardized, several facts concerning county libraries have been definitely established. First of all, the characteristics of the county library have become well known. They are: 1. It serves the citizenship of an entire county rather than of a town or city. 2. It is supported by a direct tax (usually not less than one and one-fourth cents nor more than five cents on the $100) on the total assessed property of the county, or an appropriation is made by the county commissioners to a library already established by a town within it, in return for which books are made available to town and county citizens alike. \\ r J 28 Attainable Standards in Municipal Pbogbams 3. It is administered by a special library board similar to the county board of education, which may receive lands, buildings, gifts, books, etc for the use of the library, choose the librarian and assistants, determine the number and location of branch libra- ries or loan stations throughout the county, or contract with a library already in the county for services to the entire citizenship. Again, by reason of its centralization, its distinctive advantages nave been clarified : ^ 1. It has financial support sufficient to provide books of a varv- ing character and in sufficient quantity to meet the requirements or all classes of citizens. 2. It can estabHsh a unified system of service to isolated settle- ments, schools, and villages, thereby reaching at regular intervals every section of the county. A book wagon or automobile can be run on a regular fortnightly schedule, and can serve every local station. "^ 9 It can employ an efficient librarian and assistants in suffi- cient number to administer the work effectively. tl^V^""^^ ^iT^^*? *^^ "ses of other county organizations, such as the board of health and the board of education. 5. It promotes unity of interest and cooperation in all under- takings having as their object the betterment of the county. Furthermore, its support lays no special burden upon any par- ticular group, but distributes it over the whole county. In promoting county library work in the average N"orth Caro- hna county, whether on a strict county basis or in cooperation mth a municipal library^ the following minimum requirements should be met to insure efficient, adequate service: 1. A total annual income of at least $7500 should be provided, be^enf lo^ed ^'^''^™''' ^'^'^ assistant librarians, and janitor should 3. From $1200 to $2000 should be set aside annually as a book and magazine fund. 4. A definitely planned system of delivery, either through par- cels post or by passing automobile, reaching all the schools and other special local groups, should be organized \ f Univeksity of ITobth Carolina SPECIAL FEATURES OF THE CONFEBENCE 129 r\ The reports on the county aspects of the conference, it should 'be remembered, are not intended to be complete. Rather, only the few that tend to link up town and county are utilized. The very excellent plan, presented by Commissioner Fatten, Chairman of the Buncombe County Commissioners, and president of the !N'orth Carolina Association of County Commissioners to have each county provide one or more paid commissioners, will be dis- cussed and presented full at the next year's meetings of the Com- missioners. Likewise the discussions of Mr. Henry Dwire. Pro- fessor Branson, Mr. Burke Hobgood, Mr. Roy Brown, Mr. H. W. Dodds, and others, are reserved for the special consideration of county problems of administration. It was the wish of the conference, and of the University, after the County Commissioners had voted to have their annual meet at Chapel Hill, to await that meeting for the special emphasis on county administration, and thus to turn over to them in their own program and their own methods, the discussion of county affairs. In this way, the first conference tended to turn its em- phasis to town problems and their relation to county administra- tion. The University will offer its facilities in August of this year to the county commissioners in such ways as they may desire. Two special observations should be made concerning the con- ference. While it was a very successful conference from every viewpoint, there were two deficiencies, among others, that may be pertinent to this report. The first was that not enough officials were present. The registration of out-of-town officials of some seventy-five, should have been at least one hundred and fifty. It is a very real part of the opportunity of an official to perform adequate services to learn how to perform them through exchange of ideas and acquisition of information. The second point was similar: The officials left too hurriedly; groups were leavinsr just as Mr. Knowles was giving his lecture on city-planning, and some of those who left, later found it necessary to have Mr. Knowles take up matters again with them. It is a difficult matter for busy officials to find time for all things, but it is hoped that the next conference can be guaranteed of sufficient practical value to enable all officials to remain at lecst one full day and evening. The Local Committees The work done by the two committees was adequate for a larger attendance, and deserved the suitable commendation which the \ 130 Attainable Standards in Municipal Pboqrams results of the conference seem to justify. Of special importance was the little reception given at five o'clock to the visiting dele- gates hy the members of the Community Club of Chapel Hill. The committees follow. « COMMITTEE ON PROGRAM AJSTD MEETi:NrGS E. C. Branson, Chapel Hill C. W. Roberts, Greensboro H. W. Dodds, New York D. D. Carroll, Chapel Hill Gallatin Roberts, Asheville L. R. Wilson, Chapel Hill Howard W. Odum, Chapel Hill. COMMITTEE OlST LOCAL ARRAISTGEMENTS Howard W. Odum, Chapel Hill Miss Hattie Berry, Chapel Hill S. H. Hobbs, Chapel Hill Harold D. Meyer, Chapel HiU Mrs. I. H. Manning, Chapel Hill Mrs. T. J. Wilson, Chapel Hill Burke Hobgood, Durham Mrs. Moody Durham, Chapel Hill TWO MORE ATTAIl^ABLE STAJ^DARDS A Maximum Membership of North Carolina Towns and Cities in the North Carolina Municipal Association, with active Par- ticipation and Benefits. A One Hundred Percent Membership of Counties in the North Carolina Association of County Commissioners, with Interested Agencies and Individuals as Honorary Members. S^^ \ x r / \ I 4 Upon application the following publications of the Uniyersity Ex- tension Division will be sent you free or for the price listed: UNIVERSITY OP NORTH CAROLINA EXTENSION BULLETIN Vol. I, No. 1. University Extension Service, Free. Vol. Vol. Vol. Vol. Vol. I, No. 2. Extension Lecture Service. 1921-1922. Free. I, No. 3. Correspondence Courses. 1921-1922. Free. I, No. 4. Bureau of Puhlic Discussion. I, No. 5. Social Service and Public Welfare. Free. I, No. 6. The Rural Playground. Price 10c. . THE UNIVERSITY OF NORTH CAROLINA' RECORD EXTENSION SERIES 8. Cooperative Institutions Among the Farmers of Catawba County. Price 25c. 9. Syllabus of Home-County Club Studies. Price 25©. 12. The Teaching of County Geography. Price 25c. 21. Measurement of Achievement in the Fundamental Elementary School Subjects. Price 25c. 22. Public Discussion and Debate. (Revised.) Price 25c. 23. The North Carolina Club Year Book— Wealth and Welfare In North Carolina. Price 25c. 25. Local Study Clubs. Price 25c. 27. Standard Educational Tests and Measurements as a Basis for a Cooperative Plan. Price 25c. 29. Comparative Results of a State-wide Use of Standard Tests and Measurements. Price 25c. 30. The North Carolina Club Year Book — County Government and County Affairs in North Carolina. Cloth. Price $1.25. 31. Compulsory Military Training. Price 25c. 32. A Study of the Public School in Orange County, North Carolina. Price 25c. 33. The State and County Council. Price 25c 36. Plays for Amateurs. Price 50c. 37. Further Use of Standard Tests and Scales as a Basis for a Co- operative Research Plan. Price 25c. 38. The Construction of Schoolhouses. Price 50c. 39. The Teaching of Geometry. Price 50c. 41. N. C. Club Year Book — State Reconstruction Studies. Price 75c. 1. (Special Series.) Design and Improvement of School Grounds. Price 75c. STAMPS, CHECK, OR MONEY ORDER ACCEPTED ADDRESS: UNIVETISITY EXTENSION DIVISION, Chapel Hitx, N. C. t^ — y^ \ % <. <^- il 0041420578 ^0 Regional conference ... . ^, programs Attaxnable standards^ in munic: / NOV 031994 /-7/fl 0