MUNICIPAL OWNERSHIP 



4005 



MUNICIPAL OWNERSHIP 



ing systems, street railways, telephone systems, 

 and the like, as opposed to private control of 

 those same utilities. There are instances in 

 which ownership and operation are not com- 

 bined; the city, as owner, may lease operating 

 privileges to private companies, under such 

 rentals and restrictions as may be agreed upon. 



The economic principle of publicly-owned 

 utilities has been debated for many years. It 

 is conceded that a city government is obligated 

 to provide in some way the public facilities re- 

 quired for the conduct of business and for some 

 of the universal demands of the homes of the 

 people. Streets belong to the public ; they must 

 be used in part, on the surface and above and 

 below, for means of transportation, for water- 

 supply equipment, lighting and sewer systems, 

 and for that newest modern necessity, the tele- 

 phone. Either the city must fully control the 

 streets by control of the public utilities placed 

 in them, or it must relinquish a measure of its 

 rights to private corporations. 



One street-car system; one lighting plant; 

 one telephone system; one system for supply- 

 ing water a single organization to control each 

 of these necessities has come to be the rule in 

 most cities. Service to the whole public in any 

 line is regarded as a natural monopoly; there 

 should not be competing companies. As an 

 illustration, one telephone system in a city is 

 a necessity; two competing companies invite 

 confusion, are vexatious, and neither can fully 

 serve the public. These things which are natu- 

 ral monopolies, if left under private ownership 

 are sometimes difficult to control in the inter- 

 ests of all the people; service cannot be com- 

 manded of a grade to meet demands; not al- 

 ways can prices be controlled. Ownership and 

 operation by the city place the public in com- 

 mand of its utilities; the vote of the people or 

 their representatives determines the extent of 

 service, its quality, the cost. The latter item, 

 are wisely conducted, may be less 

 than under private ownership, for the city does 

 not aim at returns larger than necessary to 

 ; n -nation. If politics can be kept out 

 of the management, the quality of the service 

 will depend solely upon the zeal of the city's 

 servants. 



In moat communities those who object to 

 municipally-owned utilities have valid T< asons 

 for their opposition. A city corporation is a 

 business ra UM same 



careful m<l moor -n-nt 



that characterises successful ; rises. 



The men chosen to manage a city's affairs are 



sometimes of poor ability ; some of them could 

 not safely be placed in command of any large, 

 private business, and should not be given con- 

 trol of a city's operating department. Too fre- 

 quently there is the thought in the minds of a 

 certain class of officeholders that a city is their 

 legitimate prey, that the people are careless and 

 will not hold them to careful account, with the 

 result that public business suffers, while taxes 

 mount high. Municipal ownership adds very 

 largely to the number of a city's employees, 

 measurably increases the responsibility of those 

 in power, and demands the highest ability and 

 strictest integrity in official places. 



The people of the United States are not yet 

 fully persuaded that their city governments 

 should undertake any service except the pro- 

 tection of the life, property and health of its 

 citizens. Water is supplied by the municipality 

 in most of the large cities of the United States, 

 as well as in many smaller ones. Of 175 cities 

 with over 25,000 population, 133 own their 

 waterworks. Electric-lighting plants are gener- 

 ally owned and operated by private companies; 

 about 800 cities own electric-lighting plants as 

 compared with 3,000 plants under private own- 

 ership. Municipal control of other public utili- 

 ties has made even less headway. It would be 

 difficult in most cities to establish with success 

 municipal telephone systems ; one gigantic com- 

 pany has a grasp on this natural monopoly 

 Jrpm coast to coast. Local independent com- 

 panies are numerous, but on their own ground 

 they compete with their powerful national rival. 

 and both emphasize the economic waste result- 

 ing from competition of this nature. 



By far the greater number of water systems 

 of Canada are owned by the people, and in 

 both Canada and Great Britain the theory of 

 municipal ownership has wider acceptance than 

 in the United States. Some countries cam' the 

 theory farther; if a city may control a neces- 

 sity, why may not the state do the same? 

 Therefore nearly every country of continental 

 Kurope. particularly (lermany and France, owns 

 one or more railroads, as well as telegraph and 

 telephone systems. The vrovernment's relation 

 to such an enterprise is the same as the posi- 

 tion of the United States with respect to its 

 postal system. The most advanced communi- 

 ties in the world in the direction of municipal 

 ownership of public utilities are the cities of 

 New Zealand. W.B.Q. 



Consult Porter's The Danger* of 

 Ownership; Towler'a Socialism in 

 Government. 



