Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-03-11
CONTROL OF CORPORATIONS.
Street Railways Not a Private Dusj
ness, but q Public Service


ness, but n Public Service.
From the Review Of Reviews.
A few months ago the Review of Reviews
presented as an object lesson for the towns
and cities Of the United States the exceed
ingly favorable terms upon which the To-
ronto authorities had disposed Of the street
railway franchises. The city government
OF Toronto, 1t was shown, has found it
entirely feasible in bargaining with the
street railway company to secure a great
variety Of advantages for the citizens; to
obtain satisfactory financial returns for
the privileges conferred; to protect specifi-
cally the wages and the hours of street
railway employees. and to retain for the
municipality a very large measure of su-
pervision and control. Contracts no less
favorable than Toronto's have in like man
ner been secured by most Of the large En-
glish and Scotch municipalities, in conse-
quence Of which the travelling public en-
joy low fares, school children and work.
ingmen may buy special tickets at half
provided. no crowding or hanging to straps
Is permitted, the wages Of conductors and
drivers are duly protected, and strikes are
practically unknown.
Street railways are not a private BUSH
ness, but public service. They should not
be allowed to issue any stocks or bonds
against the estimated value of their public
franchises nor should they be allowed to
Issue any securities in any form except as
represented by actual paid-in capital. Up
on this capital they should be allowed to
earn a prescribed dividend, and all earnings
in excess of tho dividend should be shared
with the public treasury. There Is no con-
ceivablS reason why. in return for the per-
Torrance of SO simple public service as
transit In the streets. the community should
be obliged to pay interest upon $4,000. 900
or s20.0O0O00 for every $1.00O.00O that has
actually been invested by the company
Almost nowhere else except in the United
States is this speculative stock jobbery per-
mitted in connection with municipal serv-
ice like that of street railways or gas sup
ply. The gentlemen who lobby these local
franchise measures through city councils,
and who obtain for nothing the privileges
lions, have singularly humorous habit
Of disposing Of every one who criticises
their methods by calling him an "anar-
chist." The American people do not seem
to take eagerly or naturally to the idea of
direct public management of such public
services as illumination and transit; and
they recognize the simple truth that thus
far our best business ability has been en-
ployed in private rather than government
tai capacities.
wise to allow private companies to under
take such public services as the gas SUD-
ply, the distribution Of electric power and
light, and the management Of transit facili-
ties. All that they care at present to de-
mand Is fair recognition of the pecuni-
airy value of the franchises which the pub
lie has at its disposal and the proper safe
guarding Of the rights OF the community
which claims cheap efficient and uninter-
rupted service. In other words the conf
munity as a public corporation, in making
a business contract with a money-making
private corporation, should have Its le-
gitimate interests honestly and intelligent
~ secured.