172 Kansas Academy of Science. 



changing the character of the service. Under private ownership, 

 whenever any change is desired the owners generally wish to make 

 it appear that at the old rate they were just barely naaking interest 

 on the investment, and consequently the rates must always be 

 raised every time any changes are suggested which involve any 

 outlay of money; hence there is generally a period of friction 

 between the members of the city councils and the owners of the 

 utilities. Under municipal ownership the people own the plants, 

 and consequently there is not, or at least should not be, any clash- 

 ing of interests, but the proposed change can be investigated as to 

 its cost and desirability, and either adopted or rejected as seems 

 best to the majority of those interested. 



Now let us consider the objections of municipal ownership. 

 First, the superintendents and managers are generally better men 

 under private ownership, since their tenure of office does not de- 

 pend upon the outcome of political elections. Consequently better 

 men can be secured for these positions when the tenure of office 

 is more certain. Also, in private ownership the managers usually 

 own stock in the plant, and this fact makes such officers take a 

 more vital interest in the welfare of the plant. 



For the same reason the managing boards are better for a private 

 plant than for a municipal one. In municipal ownership there is 

 no direct investment in the plant, and the interest and attention of 

 those who are in the responsible position of managers or directors 

 is not so strong as when the investment feature is involved. 



The last reason against municipal ownership which will be con- 

 sidered is that of securing additional capital for extensive im- 

 provements or r,epairs. After the people have once voted an issue 

 of bonds to build or buy a water or light plant, it is a very difficult 

 thing to get their consent to an additional issue of bonds for the 

 purposes mentioned. Consequently such improvements and re- 

 pairs must be made out of the earnings of the plants, and as long 

 as there are bonds outstanding it is impossible to lay by money for 

 future use without incurring the censure of many of the citizens. 



They say it is not good business to have funds in the banks 

 drawing only three per cent, while at the same time five per cent 

 is being paid on bonds. In that one particular they are right, but 

 they forget the impossibility of getting a new bond issue when the 

 money is needed, even though much more in bonds has been paid. 

 Small items of repairs or improvements can easily be allowed, but 

 the author has not yet seen any town where the citizens have al- 

 lowed a general overhauling of a plant. 



