The Washington times., 1894-03-25
A TOPIC OR TWO
TO THINK ABOUT.

There are various undertakings, says Prof.
| R. 7. Ely in the North American Review for
March, which are monopolies by virtue Of
their own inherent properties. Recent discus
i sions have made these businesses well known.
They are railways, telegraphs, telephones,
canals, irrigation works, harbors, gas works,
street-car lines, and the like. Experience and
deductive argument alike show that in busi-
ness OF this kind there can be no competition,
and that all appearances which resemble
competition are simply temporary and illu-
sory The policy which in the United States
has heretofore been pursued with respect to
these businesses has been to turn them over
to private corporations and to encourage at
tempts at competition. There are exceptions
which provr the rule. The post office has,
from the ste t, been a government undertak-
ing, and in the East waterworks have gen.
orally belonged to cities. A few cities have
owned gasworks, and there may be some
200 cities in the United States owning
eIectric-lighting plants.
The results of the policy are now clearly
manifest. First, we observe vast waste. As
these businesses are non-competitiye, every
attempt to force competition upon them means
a waste OF n great amount of labor and capi-
tai. second result is the enormous and un-
precedented inequality in fortunes in the
United States. A large proportion of our
mammoth fortunes can be traced to this false
policy. A third result of the policy mentioned
Is growth of artificial monopolies. Busi-
nesses which are not in themselves natural
monopolies have, through favoritism, shown
by railways and other natural monopoles,
themselves become monopolies. fourth re-
suit is seen in the dependence of the rest of
the community upon those who furnish serv-
ices or commodities of the kind which fall
unC er the designation natural monopoly"
As these services and commodities are indis-
pensable, those who furnish them can too
often dictate their own terms.
Non-competitive businesses should be owned
and managed by the government either ma
tional, state, or local, and competitive busi-
nesses are the domain of private industry.
The history of the world teaches US that pri-
vate monopoly is 4 menace to the public. One
OF the principal aims in industrial reform
must be the elimination of unearned incomes,
or rather their reduction to a minimum and
a nearer approximation than at present TO
equality in opportunities. Suppose l buy
lot in a city and without putting any la
Dor upon it sell it at the expiration of
period for twice what 1t cost me. The differ
ence between what paid and what receive
Is uuedrueu income. y lurtuef ann WHICH, II
is claimed, the reform advocated would pro-
mote is the elevation and publication of pub
lie life. The greater proportion of corrup-
tion in public life is connected directly or in
directly with natural monopolies. Govern
ment ownership and administration of these
businesses would tend to the simpliflcation
and therefore to the Improvement of govern
ment. Private ownership necesstates end
less Legislation. How brief and simple is the
legislation con cerned with our post office
compared with that which deals with rail-
ways, Tor example,
These are general grounds for the change
from private to public ownership. ana the
workingman is affected, inasnuch as he be-
longs to the social body. But we must con-
slider the subject in its more immediate rela-
tons to the worklngman, the receiver of wages.
The monopolist is not likely to be good en-
ployer OF labor. Even when the employees of
monopolists unite in labor organizations their
power IS not great enough so that they can
enter upon labor contracts upon an equal
footing with their employers. If government
is the employer. then the employed have rep
resentation in the controlling body ample to
protect their interests. 1t is claimed that the
policy advocated would tend to steadiness Of
industrial development. At present times of
great prosperity are followed by times of
stagnation. and during the latter hundreds of
and even millions seek laborin vain.
Government could make far-reaching plans for
the development of those industries which we
call natural monopolies and execute them
II is TO be noticed also. that
time which is unfavorable for private indus
try is often time most favorable for the pub
lie undertakings because labor is cheap and
capital also. as rule. Moreover, govern
ment credit does not break down as that of
the vast private corporations with which we
are dealing Cheaper and better transpcrta-
ia py q "a N Il lt1G tgp
to promote genera! and continuous prosper /
ity.
The private monopolist fails conspieuously |
In protection to life and limb. whereas gov !
ernment in this respect maniiests decided |
Government is peculiarly sensj- |
tive in regard to human life. 1t is claimed /
that there is greater freedom in the service OF |
government than in the service Of the vast
which manage natural monopo-
lies. And the freedom of the employed may
be still further increased by better civil serv-
Ice regulations. The nobility Of public serv-
Ice is OF importance to the wage-earner of
every grade. The uniform Of government is
m honor, while the livery OF private service
IS considered badge of inferiority. Ii is
public service which has developed the great
lenders of our civilization. Private service
could never give US a Washington or
4 Lincoln. Government ownership i'm
plies use for general social purposes.
and not merely, exploitation for divi-
ienis. In determining railway fares
lnder government ownership the question
las TO be asked. not merely what will be the
let financial returns, but what will be the
otgl social effect. In Australia school chill
,ren are carried free on the state railways
Under municipal ownership ofstreet-car lines
he weary working-woman can receive con-
and the difference between Scent
md Scent iare need not be considered
merely in the light OF dividends. The price
,f gas. electric lights. etc., can under such
be similarly regarded from broad
ocia! standpoint. The purchase OF the rail-
Ways would involve large issues OF govern
nent.bonds. ald these bonds would serve Us
'asis for postal savings banks.
The mode of accomplishment. of course is
ometing which requires very careful consid-
ration: but only few suggestions can be
brown out at present. One OF the most i'm
,ortant is that fair but never an excessive
'alue should be Paid for the property ae-
iuired, and Il fair value does not mean sim
,iy the cost of duplication of plant. II is
rsisicd that q property should be purchased
t the COS, OF duplication. it makes one part
II the community bear the loss due TO Il false
ocial policy. The Importance OF civil service
efc-m in this connection canno. be too
trongly emphasized.