ship was limited by the bylaws to one hundred, but the rapid growth of the city made this a hardship on deserving applicants and the limit was dropped. The initiation fees and the annual dues were much larger in the early days of the Exchange than in later years.

The benefits derived from organization were so great that it was determined to purchase a lot and erect a building for the use of the association. . This enterprise, in later years, became a burden on the organization and finally was abandoned. In dull times following the collapse of values, it became difficult to sustain a live interest in the Exchange, which was an incorporated company with a capital stock of $10,000. The building finally passed out of the hands of the organization because of the depreciation in values and decrease in business of the members.

In the first year of the Exchange, certain other agents who were excluded from membership, formed an organiaztion with a similar title. The Secretary of State refused to grant a charter on representations made by the original body and the case was taken to the Suppreme court of Missouri, which upheld the Secretary of State in his refusal to grant a charter. The preliminary organization was concluded on May 17, 1886, and on July 22, 1886, the formal opening took place. The officers for the first year were: Theodore S. Case, president; E. M. Wright, vice president; A. A. Whipple, treasurer; W. V. Lippincott, Jr., secretary; and S. E. Swanson, assistant secretary. Some of the objects of the Exchange, announced at that time, were as follows: To secure uniform rates of brokerage on real estate transactions; to maintain principles of honesty and fair dealing in the operations of licensed real estate brokers; to establish and maintain the calling of the real estate agent in a position of dignity and responsibility; to devise, encourage and foster schemes of public improvement and benefit to the city at large.

These men who were charter members of the Exchange were members in 1908: John Bayha, T. T. Crittenden, Jr., John F. Downing, T. J. Green, J. Scott Harrison, George Hoffman, P. H. Madden, George Law, W. H. Royer, Simpson & Groves, R. L. Winter, C. W. Whitehead, B. T. Whipple, A. A. Whipple, W. S. Woods.

The proper conduct of the real estate business is a potent factor in determining the future of the city. The investment of outside capital in purchases of real property, in loans on such security, and in the erection of buildings of all sorts, is largely governed by the treatment of outside investors by the real estate agent. In 1901, when it became evident that the real estate association could work to better advantage under new organization, application was made to the Secretary of State for a charter and the new association was formed. The purposes of the association, as stated before, were to promote knowledge of municipapl affairs and of taxation, with special reference to real estate;

to collect information and data; to increase acquaintanceship among the members of the association and to maintain suitable rooms or quarters for meetings of the members and for study, discussion and social intercourse; to aid at all times in the development and improvement of the city.

As an indication of the conservatism of leading members of this body, a resolution was introduced at a directors' meeting in February, 1901, providing that the Board of Park commissioners be petitioned not to make any further expenditures in the way of acquisition of new parks and boulevards in the west, north and south districts. It does not appear that the general body approved the resolution, however. In January, 1902, a motion was passed excluding newspaper reporters from the monthly dinners. There was a general protest against this policy, and all times since invitations have regularly been issued to newspaper men, who have made public all important actions of the Exchange, and in this way increased its influence. A determined effort was made by the Exchange members in 1903 to secure the adoption by the Legislature of a law, establishing the Torrens system of real estate transfers. Attorneys were employed, committees visited Jefferson City and much time and money was spent in the effort to place in the Statutes of Missouri this necessary enactment. The opposition of abstracters of real estate titles, and of many attorneys throughout the state, defeated the bill. A committee was appointed in 1903 to oppose the arbitrary actions of the State Factory inspector who attempted to arrest and impose fines upon property owners by putting his own construction on the law, regulating fire escapes. A committee of the Exchange working with the city officials had a new fire escape bill passed which was fairly satisfactory as a compromise, but not as it should be. In the same year, the Exchange took up the question of open specifications and competition on city contracts as a check on the system which had prevailed, favoring certain bidders. A special meeting was called in March, 1903, to discuss the question of issuing bonds to improve the water works, parks, and for building a new city hospital. George M. Shelley and D. J. Haff addressed the Exchange on these subjects. There was a full attendance and resolutions were adopted favoring not less than one million dollars for parks, one million dollars for water works and $400,000 for the hospital. The agitation for a bond issue induced Mayor J. A. Reed to form a Bond commission to consider fully the necessities in the matter and to act in an advisory capacity with the City council The real estate dealers were fully represented on this commission and materially influenced its final action, favoring improvements in the water works and park system and a new city hospital.

A few days before the crest of the 1903 flood reached Kansas City, the Exchange went on record at a called meeting with the following resolution : Resolved that the Honorable Mayor and Common Council of the city be urged

to take such steps as may be necessary and with the utmost expedition to hold an election for the amendment of the charter at the earliest possible day in the future; that in view of the great disaster to the Water Works System and the necessity for placing the plant beyond any possibility of similar injuries in the future, a large increase in the amount of bonds is necessary but the immediate action required, is the forwarding of the proposed election for amendment of the charter, empowering the city to issue the necessary bonds.

In October, 1903, at the largest meeting ever held by the Exchange up to time, strong resolutions again were adopted, demanding flood protection. At this meeting the guests and speakers were: Colonel C. F. Morse, S. Waters Fox, United States Engineer; Congressman W. S. Cowherd; O. V. Dodge, President of Manufacturers' and Merchants' association; E. J. Roe, vice-president of the Commercial club; J. S. Silvey, secretary of the Mercantile club of Kansas City, Kas.; George M. Shelley; H. S. Boice, president of Live Stock exchange; W. C. Goffe, vice-president of the Board of Trade.

The Exchange in October, 1903, took up the work of raising $15,000 to make a practical representation of Kansas City at the World's Fair in St. Louis. The money was expended on the Casino, one of the most attractive small buildings at the fair. The regulation of the smoke nuisance; the offering of rewards for the apprehension of plumbing thieves; for the conviction of persons destroying the "For Sale" signs; the proper regulation of fire escapes; the proper construction and care of apartment houses and tenement houses; and other reforms were urged by the real estate Exchange. The Exchange in 1904 urged appropriations from Congress for the improvement of the Missouri river, and in 1905, made subscriptions for the capital stock of a boat line.

The morals of the City Hall were not overlooked, and in 1904, resolutions were put through, urging on the City Treasurer and City Auditor that they should employ none but efficient honest men in their respective offices, regardless of politics. The real estate dealers in 1904 took up the movement. to encourage the establishment of cotton mills in Kansas City and the members were largely responsible for the establishment of the large cotton mill in Kansas City, Kas., two of them traveling through the South, collecting information for the benefit of the public. It was in 1904 that the Real Estate exchange began insisting that a new city charter be adopted and it continued. to urge this matter, in spite of a defeat at the polls, until the charter of 1908 was adopted. The members of the Exchange took a prominent part in framing the new charter. The Real Estate exchange members assisted in the fight for cheap gas and only discontinued their work when cheap gas was obtained.

When it was suggested that a $20,000 fund be raised to advertise Kansas

City seventeen subscriptions were made by the real estate dealers at the first meeting and nearly 50 per cent of the amount was subscribed by them.

When the proposed Constitutional amendments prepared for consideration at the election of November, 1908, were made public, the Real Estate exchange called for a public discussion and invited the Honorable F. N. Judson, the Chairman of the Tax commission, to come to Kansas City, to address the Exchange and invited guests. A delegation of real estate dealers from Kansas City attended the national convention of real estate dealers in Chicago in 1908, and assisted in the organization of a National association.

These are the names of the presidents of the old Real Estate exchange: C. W. Whitehead, P. H. Madden, C. D. Parker, J. Scott Harrison, V. F. Boor, E. H. Phelps. Colonel Phelps always was an active member and it was largely to his efforts that the continuous existence of the Exchange is due. He served as president several terms when the interest was at a low tide.

Following are the names of the presidents of the new Real Estate exchange of Kansas City with the date of their service: C. J. Hubbard, 1901; P. H. Phelps, 1902; John A. Moore, 1903; A. A. Whipple, 1904; E. F. Allen, 1905; A. C. Cowan, 1906; B. T. Whipple, 1907; E. R. Crutcher, 1908.

The headquarters of the Exchange have been at various times in the Natatorium building on Eighth street, near Central; Armour building, Fifth and Delaware streets; Real Estate building, Wall street between Seventh and Eighth streets; and the New York Life building. Since the reorganization of the Exchange in 1901, the office of the president has been considered the headquarters, no regular meeting place being provided.

CHAPTER XIII.

THE PUBLIC UTILITIES.

Kansas City owns and operates (in 1908) one of its public utilities. This is the water service. Its other utilities depending upon public franchisesstreet railways, electric lighting, gas, telephone, refrigerating and heat and power service-are under private ownership and operation. A variety of conditions affect the regulation of these privately owned public utilities, according to the terms of their franchises and the state of the laws at the time these rights accrued.

Only those services which are purely municipal or at most municipal and suburban in their scope are here considered. Steam railways, with their terminal facilities, are for the most part under state jurisdiction, and, besides,

the usual nomenclature of such things does not include as municipal public utilities the railways whose entrance here makes Kansas City the second most important railway center in America.

The Water Works was purchased by Kansas City from its private owner, the National Water Company, in 1895. The purchase was the result of much discussion and litigation, the city finally gaining possession by the payment of $3,175,000. Of this sum $3,100,000 was paid for the general water works and $75,000 for the Westport pipe line. In the period since that time the service has been greatly extended, the plant very largely made over and reequipped. A conservative estimate of its value in 1908 was ings of the service, the bonds issued for the purpose, in addition to the origin the sinking fund for their further reduction.

inal purchase issue, being $1,100,000. In the same period bonds were retired. The bonded debt in 1908 was $3,492,000 with about $250,000

The plant thus shows a profit of approximately five million dollars in the value of the existing physical property. But this is not all, the city receiving free water service for fire hydrants, street cleaning, sewer flushing and public building uses that would have cost the city at the prevailing water rates, $210,300 a year. The city has not saved this sum each year since the municipalization of the plant because the average amount used has not been so great as for the year 1907, but the total actual saving in these departments for the thirteen years has been more than one and onehalf million dollars.

In this period, too, the rates to customers of all classes were reduced on an average of nearly 25 per cent from those in force under private ownership. The first reduction was of 15 per cent, the second was of 10 per cent under the first reduced scale of prices. It would be conjectural to state whether these reductions are greater or less than might have been expected had a water franchise remained in private control. Without attempting any comparison with a supposititious private ownership it yet has been a subject of much interest whether it would not be more equitable to reduce the rates to consumers to cover the cost of services to them than to hold the rates at a level when the actual users of water pay not only for what $8,500,000. The improvements have been chiefly paid for from the earnthey get, but for the service through the public hydrants and, as well, for the extension and maintenance of a property that virtually belongs to the land and in which the water users, as such, can have no permanent interest.

The water supply is drawn from the Missouri river, four miles above. Kansas City, Kansas. This is near the site of the old town of Quindaro and the pumping station at this point is called the Quindaro station. It is equipped with six pumps of a total daily capacity of one hundred and seven