Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-02-20
FRIDAY .FEBRUARY 20. l89l.
Natural Mnnonolies.


The questions are not new which Ito OF
the bottom OF tho discussions which have
over and again taken place in this city on
the subject of the ownership Of our gas
works. On the contrary. they have claimed
the attention OF the people of many mu-
inequalities both in this country and Eng
land. and upon them has been bestowed
the best thought Of the ablest OF writer's
We gave about year ago o list OF cities IN
England which had found 1t necessary 70
buy gas-works.
We suppose that We might safely say
that Professor Ely. of Johns Hopkins
University, Baltimore, has studied municl-
nal problems more thoroughly than any
other man In this country. He Is an su-
thority on such subjects, having discussed
them In lectures, in pamphlets, IN the
newspapers, and even in books. lie was
one of the three members OF the Maryland
Tax Commission which made few years
AGO long. able, and searching report to
the Legislature on taxation problems.
Professor Ely lays down general princi-
pies. Colonel CUTsHAw could furnish to
our people no greater treat than by in
ducing the Professor 10 deliver a course OF
lectures IN this city on the subjects which
we have Just mentioned. All Of us would
derive great benefit from them, and when
they were ended we should feel as If we
knew something which we did not know
before. Ask him whether the city ought
70 own its gas-works or not. and he Will re-
ply that in a city sll natural monopolies
ought to be under the control of the city
government.
What are natural monopolies, and why
Gss-works, water-works, and electric
plants or electric-works are natural mo-
nopolies. Why are they natural monopo-
lies Because in the nature OF things
there can be no real competition.
First, as to gas.works. You can lay
down but one set of gas-pipes in any one
street Therefore, there can be no real
competition. But suppose we should AL
low our streets TO be torn up to lay two or
more sets of gas-pipes. and should permit
them TO be kept torn up day after day TO
repair them. what would resultI Isn't 1t
as plain as day that the two companies
using the same street would be consoli-
dated? Then the public would be COM
PEELED 10 pay for two plants instead OF
one. There would be no means OF avoid
ing such a result. But suppose we admit
that two companies would continue to oc-
cupy the same street The objection IS
the same. The public would necessarily
have 70 pay for both plants.
So as to water-works. Either the city
must own her water-works or else they
will become huge natural monopoly.
SO as TO electric plants. These must be
under municipal control and ownership, OF
else the public will suffer.
Not only ought natural monopolies to
belong to the city. but they should pay
portion of her expenses. Valuable fran
chises ought never to be given away, one
of Professor ELY's opinions.
Why does any person or company desire
10 purchase the gas-works Of Richmond +?
There is but one answer; they wish 20
make money by the purchase. In order TO
accomplish this end they must charge the
consumers such prices as will enable the
purchasers to pay for the plant and also
for making the gas, or else they must
make cheaper gas Can any company under
these circumstances furnish as good a SER
vice as the cityf BE sure, then, of one thing.
No matter what company buys the gas
works, the people of Richmond will have
TO pay for them.
At present every voter in Richmond has
a claim upon the gas-works officials and en-
ployes of every grade. These know that
their tenure of Office or employment is
"during good behavior" A company
owning the gas-works would be as indie
pendent of public opinion and public CON-
plants rs the Gear of Russia is of the opin.
ions and complaints of his Jewish ubiects.
Far better Is it for us to own our gas-works
than for our gas-works to own us. One OF
the other Is to be our tate.
We ask our people TO study the subjects
involved, directly or indirectly, in this dis
oussion of the proposition 10 sell the gas
works. Let us not sell our valuable gas
works and water-works just as the world il
coming over TO our side. and Just as such
men as Professor Elk are formulating the
measures which demand Of oil cities that
they shall own all the natural monopoliOi
within their limits.
Finally, do not lose sight of the fact that
II is one thing to sell the gas-works and
another thing to reduce the price of gas
The city can afford TO sell gas at love-
price than any company can afford to sell
II after paying her what she would demand
for her plant. So also the city can at any
time make water-gas if the people shall
call for its use.