Morning journal and courier., 1891-01-26
SARGENT on moNoPoLIEs.

SARGENT ON mONOPOLIEs.
rhe Mayor PrOpounds Some Strong
Ideas Before a Large Gathering at
Trades Council Han-Purchase OF
the Water Company's Plant First.
Mayor Sargent addressed a gathering of
about 200 of the members of trades coun-
ell at their hall on Chapel street, yester-
day afternoon. The subject of the mayors
address was the municipal ownership Of
the various city monopolies, gas, electric
light, water and street railroad plants.
He was introduced by Morris Ruther of
the Cigarmakers' union.
In his address the mayor confined him
self largely to the question of the water
monopoly, as the simplest and easiest one
to begin with. He strongly favored the
entire control of the city's water supply by
the municipal corporation. He thought
the city should obtain control of the Wa
ter company's plant first of all, as this re-
quires the least science and skill
for it's management. In case the
plant is owned by private water
company, said the mayor, the profits
of course, 60 to income on capital invested.
The value of the stock of the New Haven
Water company, reckoned at the actual
value of the company's material property,
or at its cost, I think, is not over $50
share. But by virtue of it's being private
monopoly, having the sole and exclusive
right to open the streets of the city to lay
water mains, and there being no limit on
sfc fo, y,
limited contract as the company chooses or
is willing to make, the company keeps it's
water rates at point where the net cash
profits to divide are at least 8 per cent. on
the par value, and actual material value
of the stock. But as capitalists are willing
to take 4 per cent. only for the use
of their capital when it is as secure, and
sure of profitable income, as in water
company, they buy the shares that are
really worth not over $50 per share and
will give 500 and more, because by means
of the monopoly they receive 81 per year
income on the share and they are satisfied
with that. AS remarked in my recent
message, GA new corporation invariably
joins with the old one and the thumb
screws Of the double monopoly are turned
porations will sell out to the other, put
their capital stock together, dilute with
plenty of water and advance prices. The
business of supplying water, gas and cleo
trio light and steam heat through the
streets to municipality and its people,
and the running of any means of transpor-
tation, OF doing any other business requir-
ing such rights of eminent domain as
are necessary to open the ground
of the streets and take or use the
streets or private property at will
can be better carried on by a monopoly.
The price of the product delivered to citi-
zens should be regulated within righteous
limits by the authority of law. But in the
case of private monopolies the truly just
rate is never known to the authorities, and
critical cupidity of partisan leaders. It
would not be good business policy to abol-
ish the present monopoly, said he, but the
people should obtain this monopoly and
control it themselves. People talk Of vest
ed rights, All of the private monopolies
of New Haven hold their rights on " at
the pleasure of the people. The control
of all of these can be obtained by the peo-
pie as soon as they express a wish to
do so through the legislature. The
rights of the New Haven Water company
can be taken by the people at any time as
soon as they desire to take them. This is
especially provided for by the charter Civ
en- the company. It is further stipulated
in the contract between the people and the
water company in 1881 that the company
shall help the city to procure such legisla-
ton as will bring this end about as soon as
the city is willing to pay for the franchise.
If there is difficulty about the price it is
further provided that the superior court
shall decide between the parties.
The franchise itself is not to be placed at
a higher price than it could honestly be OBJ
tanned at first from the legislature To
make the people buy back the franchise
which they have given by any other terms
would be robbery. If the city takes any
private monopoly it is just that it pay the
value of it as it is, without paying any
amount Of extortion. To say that the city
could not raise bonds to buy this monopo
ly would be indirectly means of raising
the taxes of the company, but this means
of warfare hope would not be resorted
to. To say that the city could not find
competent men to manage these monopo-
lies, to turn on or off the water, to string
the wires, to drive the horse cars, is futile.
If competent and honest officials can be
found by the present capitalists, why not
when under the eyes of eighty six thou
sand owners?
AS soon as paid for the water rates would
be very low. The statistics show a great
prependerance of evidence in fovor of pub
Lie ownership.
The mayor here read number of sta
tistics bearing upon the subject: In 1881
questions were sent to about 100 water
companies and ia replies were received
to the various questions. In 10 of these
cities the water company is owned by the
people and in "a by private individuals OF
hn oT1c
"a of these were for public ownership.
The electric lighting monopoly was next
assailed. He advocated public ownership
and the supplying Of gas and electricity at
cost to produce. He gave numbers of
statistics to illustrate the gain to the peo-
pie by municipal ownership of the electric
light plant. New Haven now is forced to
pay the electric light company "a cents
apiece for 1900 candle-power lights. The
following list of municipal corporations
owning their own plants and the amount
each light of 2, 900 candle-power costs them
was given as follows:
10 cents; Bay City, Mich, 16 cents; Cham,
paign, ILL.,, 12 $40 cents; Chicago, Ill, Is
cents; Decatur, Ill, 10 no cents ;Dunkirk,
N. Y, 10 $40 cents; Grand Ledge,
Mich, 18 cents; Huntington, Ind,
10 7-10 cents; Little Rock, Ark, 13 cents;
Lewiston, Me-, IA cents; Lyons, Iowa,
8 210 cents; Madison, 16 cents; Michigan
City, Ind, 10 cents; gainesville, O.,
10 6-10; Paris, ILL.,, 10 40 cents; Topeka,
Kan, 20 cents. The average of all these
figures Is 40 cents. Another list of sta
tistics was read showing the gain in the
cost of each light to cities changing from
private to municipal ownership It was:
Private Public
Ownership. Ownership.
cents s7s cents
Aurora, III ..:.::.. $3.50 1870
The electric light companies tell us, he
continued, that it is a very difficult thing
to climb the poles and manage the plant,
but think the same men that do it now
could do it just as well if they were joint
stockholders in the monopoly AS to gas,
some Virginia cities are supplying gas to
the people at seventy-fve cents a thousand
feet and are making money. The business
of gas making does not require more sci
ence and care than ordinary manufactur-
ing
The contract with the New Haven Water
company expires next year, said he, and
L.