The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-10-01
Shotguns--, \

Il
Works" He said in part: "In 1888 It was
reported that there were In the United
States bs4 municipal water works, s mu- 4
nicipal gas works. no municipal electric
lighting works and no municipal street
railways. II is estimated that In 1897 there
Are 1850 municipal water works, ~ mt-
nicipal gas worka. $40 municipal electric
lighting works and no municipal street
railways.
mo question pertaining to municipal
policy or to tho efficiency OF municipal
government has caused so much Discus
sion or is OF greater economic importance
for the welfare Of every municipality. and
OF all the people than the question OF the
ownership and proper regulation Of mu-
nicipal public service industries. While
ownership and operation may be intrusted
to private corporations. regulation must al
ways be governmental function
There has been ten years OF discussion.
Investigations and studies without num-
Der by teachers OF political economy, CONF
mittees OF economic associations and mu-
niclpal reform associations for the purpose
OF fitting theory to practice, and by COM
mittces or municipal councils for the prac-
tical purpose OF determining Just price
TO DO paid for water. gas or electric light
Ing service, or to determine whether II
would be wise for the municipality 10 IA
! sumo tho ownership and operation of the
'h"unliy vi iS own account. ING VIAL
question, How can the power Of concen-
trated organizations be utilized to Ia full.
est extent. without risk or suffering from
its real or imaginary tyranny" is still un-
solved
In attempting to solve this question II
must be clearly seen that the interest Of
one consumer whether an individual or
| a municipality. SIS identical with the In
terest OF all the people. and that the dis
trust with which monopolles are universal
ly regarded H. developed by the fact that
tho people have been taught TO rely upon
the regulatiyc force OF free competition
| to guarantee that services will he rendered
at the lowest possible cost, These natura,
monopolics are industrial organizations,
superior TO the regulating influence OF
competition. Society will not render hui
mainly Its Best services until II discovers
some principle for the guidance of logls-
lotion In controlling these industries from
which all clements of competition are
eliminated.
In every case, whether y service Is
rendered by u private corporation or bv u
municipality. the private user is inter- /.
ested directly only In the price charged
for 1t. In tho case OF municipal partner
ship and operation, however he Is also
Interested In tho coat Of production. Tho
confederation offered for his vote In favor
OF municipal ownership Is that the cost
OF tho service will thereby DO reduced.
and that this reduction will Come effcctuel-
| ~ In the price hc Is required to pay for
what he gets. Tho struggle for municipal
ownership and operation 10 struggle TO
| depross tho cost OF rendering services. not
| to raise prices for services rendered. This
| IL the meaning OF tho agitation for the
| municipal ownership and operation OF pub
lie service Industries that has taken place
| in a'mest every city and town IN the Unit
| cd stades within the last ton years. and
is now RAPIDLY reaching an acute stage
| Of development through being made II
| political issue,
In tho case of services rendered nv
private corporations, price is cost to users
and Taxpayers In tho case OF services
rendered by municipalities cost Is price 10
taxpayers, and price II cost OF private users.
| To determine the relative economic advan-
tagcs derived from private or municipal
ownership and operation OF public service
industries. cost OF service to users aud tax
payers Nv the only correct basis for COM
parisons.
'It the investigation OF tho Unite States
department OF labor will show TINT the
price cost 10 users and taxpayers charged
by private corporations Is unreasonably
higher than the cost price under municipal
ownership and operation. private corpora
tons viii have no choice but to reduce
their prices or to sell to the municipalities
In which they are located. To this final
crucial test private corporations must sub
NIT. This test will bring the struggle TO
ceprcss the cost Of rendering municipal
Industrial services To an acute stage OF de-
velopnent. II eubstltutcs competition be-
tween private corporations and municI-
ralItics for competition between corpora
lions within municipalities.
"Onc can not make an exhaustive exam
nation OF this subject without reaching the
conclusion that the mistakes OF tho past
and the antagonism to private corporations
engepdcred by them grow ont OF the Mt
tempt TO regulate prices by forcc--the force
OF competition--instead OF basine them ON
the cost OF production. The experience
gained demonstrates the fact that the prIn-
clples and methods OF competition can not
be applied to public service INDUSTRIES.
They must be protected and regulated AZ
nonopoiies. The evils complained OF With
NO much justice on the part OF the people
ana OF private corporations result from The
existing system. They can not be eradl-
Gated IN the best way without changing the
system" 40
~ the close OF Mr. Foote's address tho
conference adjourned.