The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1894-12-18

natural monopolles, by their very
nature, and as such should be taken
over by the local or national govern
ments, and the accrueing benefits put
in the general fund for the common
benefit. 1t would thus reduce taxa
ton, and reduced taxation is alike
beneficial to the rich and the poor, to
the employers of labor and to the la.
borers themselves.
1t is out of tho economic surplus
that many of the colossal fortunes of
modern times have been amassed-in-
deed, out of which, without exaggera-
ton, itmay be said that most of them
have been amassed.
If there be any unit of production;
if the production of those things which
all men deem have any scientific ba-
sis, then it is impossible, from any
economic point Of view, and morally
indefensible, that any one individual
should become possessed of one hun
dred, fifty, ten, or even five millions
of dollars in few brief years.
Nearly all the vast fortunes that
have so suddenly arisen in the United
States in recent years, leaving out for
tunate mining enterprises, have de-
pended upon Government protection,
franchises, etc.; in fact, they have
been amassed out of the economic
surplus, properly belonging to the
people at large, or to the various po-
1itical units.
Since the German Government has
taken over the railways, the fixed
charges have decreased, passenger and
freight fares have been lowered, and
yet the revenue turned over to the
me, been equal to the interest upon
the national debt. It is the
same with the telegraph: All
European countries, with the ex-
ception of Russia and Turkey, own
their own telegraphs. England's ex-
perience, in this respect, is most in
structlve. In all other countries in
which Government own the tele-
graphic service, it is carried on in con-
nection with, and as an auxiliary to,
the postal service, and is plain, expe-
dit;ous and cheap.
Berlin also owns it's own gas works
and street railway system. Gas is fur
nished at o very low figure, and yet it
gets sufficient revenue from this source
to pay about Is per cent. of her entire
municipal expenditure.
Baltimore owns its own gas works,
owing to the agitation incident to
some articles in the Sun upon NUM-
cipal corruption and mismanagement,
written by "them literary fellows
of John Hopkins University. Since
municipal ownership, gas is furnished
to consumers at less than one-haf the
price under corporation management,
besides turning a large amount into
the city treasury.
Philadelphia has lad a similar ex-
perience. New Orleans makes out its
own franchises for both gas works and
fc
them as to price and other matters, and
then disposes of them to the highest
bidder-thus turning over to the city
treasury large per cent. of municipal
expenses.
Since collecting the facts for this
paper, my attention was called to an
article in the Review of Reviews, en-
titled Toronto as a Municipal Object
Lesson" It appears that in 1861 a
franchise was granted to company
to build and operate street railways
for thirty years, upon the expiration
of which time the municipality, if it
so desired, could, upon an appraised
valuation, take over the entire plant,
which it did in 1892, at the cost of
S1,500,000.
In six weeks after the completion
of a most eXacting franchise, notwith-
standing the prediction of the croak-
ers, it was taken up, much of the cap
ital too being from the United States.
Toronto also sold one telephone fran
chise, limiting the price for dwelling
houses to S25 year, and for stores to
a maximum of $45, while in New
York city, under the benign owner
ship of a private corporation, offices
pay $40 per annum and dwelling
houses are mulcted in the sum of
$50.
But it is needless to multiply exam
pies to enforce the conviction that
municipal ownership or control in
natural monOpolies is more econo-
mical than private. Wherever it has
been honestly tried, it has given en-
tire satisfaction both in Europe and in
America. The people get better SER
vice and vastly cheaper service than
under private or corporation owner
ship. In twenty cities in the United
States which have municipal control
of electric lighting, 20O0 candle power
arc lights have been reduced in price
from an average of 65 cents per night
under private ownership to an aver
age of IS cents. A like reduction is a
notable fact in city water supply.
Does any one suppose for a moment
under private ownership the water
rate in Honolulu would not be dou-
bled or thrilled, and yet, at present
rates, the water works turned into the
treasury the large sum of $4,000 for
the last biennial period. Under the
philanthropic ownership OF a bene-
ficent corporation, the people OF San
Francisco pay more than five times
the water rate charged in Honolulu
under government control, yet the
source of the former city's supply Is
Lake Honda, within stones throw
of the city.
1t has been affirmed by the high
est authority in economic science,
that, honestly and efficiently man
aged, municipal franchises could be
sold for enough to pay all municipal
expenses in the chief cities of the
United States, at any rate, cheap
service with large revenue would,
without doubt, result.
Most of the political corruption, SO
much regretted by patriotic Ameri-
cans, is in some way or other con-