The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-11-05
MAKING TT PRACTICABLE.

principle of municipal ownership Of pub
lie utilities is regarded with much favor
by large element of society The con-
dltion of public sentiment in several of
our large cities warrants the belief that
the general adoption of the principle, with
reference at least to limited number of
such utilities. Is now a mere question of
time. The successful operation of mu-
picipal ownership III many European
cities places it beyond doubt that the ex-
ample is not likely TO be lost on the
American people
Thus far the great difficulty in the path
of the friends Of municipal ownership has
consisted in the financial inability of
cities to secure the necessary money
available for the purpose of the under
takings now conducted by private enter
prise, AMI in the constitutional inhibi-
ton against increased taxation. These
difficulties have, at least In one instance,
been successfully overcome.
For some time after the discovery OF
natural gas in Indianapolis the supply
was in the control of private interests.
The Standard Oh concern was the first
to get possession of the public easement
involved, which, for some reason, it
transferred to another corporation. The
law required that the natural gas should
be supplied at very low rates. These
rates the company refused to accept and
insisted upon their being doubled. This
involved a difference of about 81, 00a 600
year in the gross receipts which the
controlling company would receive. The
people of Indianapolis took the matter
in hand 1t was realized at the outset
that any opposition company that might
be started would be likely to sell out.
This led to the adoption OF a plan by
which the subscriber to the stock in the
rev concern agreed to place that stock
an irrevocable proxy to vote for directors.
1t also provided that any surplus above
8 per cent interest should be returnei 20
the stockholders until they had received
the full amount Of their investment,
after which gas was to be furnished to
the citizens of INDIANAPOLIS at cost
A wise choice of trustees was made.
The legislature made valid the plan
adopted, and within few months after
the stock had been subscribed the people
of Indianapolis were receiving their nat
oil
the price of coal. Pumping stations had
to be built al an enormous cost. and yet,
with Increased expenses from year to
year. amounting to s., 100000, the trustees
have succeeded in paying off bonded n
debtetlness of $1,50000o. ard have reduced
the amount due to stockholders until at
this time less than 100000 of the total
issue of sos, 90G Of stock remains unpaid.
All of which has been accomplished while
saving to the citizens of Indianapolis
$1,0000O0 a year. Within Il few years. if
the gas supply holds cut, fuel gas will
be sold to the people of Indianapolis. at
cost. The expense Of the undertaking
will have been met and the people will
be in absolute control of their own gas
supply. This, too, will have been accom-
plished substantially without the ex-
penditure OF a single dollar of public
funds.
1t is not difficult to see that the plan
thus adopted in Indianapolis for popular
control of the natural gas supply con-
tains the germ of the means whereby
those public utilities which it is aimed to
make the object of public ownership may
in time be controlled by the people. This
cannot, Of course, be accomplished with
out an exhibition of genuine public spirit
and loyalty on the part of individuals,
or without the bitter opposition of those
VINO now control those utilities. But, if
ever public sentiment natures SO as to
make the demand for public ownership
imperative, it will probably be found
that the means Of overcoming existing
financial difficulties and of securing the
complete success of such an undertaking
will be found in the principle of conduct
adopted by the city of Indianapolis in
securing control of its supply OF natural
gas.