Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-03-20
WEDNESDAY. MARCH 20. 1889.
tlas-Workg. &c, as Monopoles.

We have IN tiDes past uIcu'ioh'o "'Oio
than once Professor r. r. ELY. Of the Johns
HOPKINS University, Baltimore. lie Is
student. lie IS also recognized authority
In many matters He has toe courage OF his
convictions. We hsve sometimes thought
that be leaned towards a mild form OF social
ism. Indeed, be seems 10 be aware that be
has sometimes been looked upon with sus-
picion; but he is no socialist. lie GAYS that
the people srs coming up to the support oil
his theories so fast that he begins 70 fear that
he may ere long be called "sn old iogy."
Professor Ely has we say, his own no
.ions. Here is one OF bus axioms: " Mo-
nopoiies are the field for public activity;
competitive pursuits are the field for private
activity" lie says he fiuds himself sur
rounded by socialists when he is among
economists. Why says he thisl Because
they favor combinations and trusts; "and
II IL OF course only necessary for combins-
tons TO 90 forward to bring us to pure So
cslsm." These are all hints, let us say
here. that Professor Ely holds that every
city ought TO own its own passwords, its own
yvater-works. and its own street-railways.
lie has thoroughly studied the matter, and
has reached this conclusion.
He's Is another Of Professor ELr's pithy
remarks: SOCIALISM means a universal
trust"
Professor ELY says our social and Indus
trial order is OF but yesterday. Free labor
f. new; free sale OF land Is new; so are
telegraphs. telephones. railroads, street-ear
lines, great manufacturing corporations, DC.
Read and ponder the following:
cit has been recognized that competition
Is in many places good thing aud has sc>
complshed marvels. The conclusion is
drawn that it must everywhere snd at all
times be good thing. Bot this Is great
mistake. IL Is not everywhere possible, aud
an attempt TO apply IL in quarters where 1t
Is not possible results only in disaster. We
observe these phenomena: While compete
tion is increasing in intensity in some parts
OF the economic field It il decreasing steadily
IN Others, and as the pressure OF competition
steadily increases an eyef-iacreasing num-
Der withdraw themselves from Its innu-
enee."
Competition is good where It is possible,
ssys the Professor, but there are certain pur-
suits which are by nature monopQlies.
These must be carried on by the people
fhemselves-tbat T., by the cities themselves.
lie names as such natural mOnopOhes only
gas supply, water supply. and electric light
lug, street railroads OF all kinds, steam rail-
roads, telegrsphs, telephones all public
roads, and the express business; and even
these are more than the public are resdy and
willing 10 place under municipal control.
We quote:
"Clties should pursue policy looking TO
the ultimate ownership and management Of
sll local monopolies." Those named above
" These businesses never can he
conducted except az mOnopolies, and any
phenomena which appear like competition
are temporary and iliusory. TIE gas BUSH
ness serves well as an illustration. ! sup
pose competition has been tried over
thousand times, and II never has yet been
permanent and IL can be demonstrated ST.
most mathemstically thst 1t never can be
permaDent During the gas war
in Baltimore, while we we're receiving gas
for City cents thousand, | told INV classes
repeatedly that It could not last many wears,
and that all the agreements OF the companies
not 10 consolidate, Of whatever nature they
might be, were not worth the paper on
which they were written. In the same way on
strictly scientific principles, when nobody
in baltimore believed 1t, ! predicted the
consolidation OF the Baltimore and OHIO
telegraph sud the Western luton, and even
yenturcd 90 print nv prediction. | was
willing 10 stake my reputation as political
economist on its accuracy. Well, you all
know what happened.
$50 now am ready TO predict that I'm
most places we sbsll witness 0 consolidation
% private electric hghii5g and gas compa-
MES in few years. Indeed, this has already
begun. Certain monopoies ave local in theic
nature. O.. street-cars, electric lights, gas
supply, water supply, and for these | favor
tue principle OF municipal self-help, rs Op.
posed TO the perpetual interference with pri-
waite Corporations which render these SER
wees"
Professor Ely refers to Richmond as the
owner OF her own gss-works, which are
Soperated successfully"
Competition in natural monopohes is never
successful. In Baltimore they have had six
OF seven attempts at competition in gas. We
quote:
"Our streets are fun OF gss-maius. Now.
ali these different plants and OUTLAWS must he
paid for, and every time a consolidation
takes place fixed charges aud capital stock
have both been increased. The result IL that
IL does not now appear TO be a very p7otta-
bic business 10 supply gas at Sl.zj thou
sand"
"Natural monopolies, Passwords aud wa.
ter.works,) owned and controlled by cities
always work well, and you may search the
world over for an exception" says Profess
sor ELY.
We make up this article from an address
recently delivered by Professor ELY before
the Boston Merch,nts' Association.