The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-04-23

Austtn's Disastrous Experiment With
Municipal Ownersnip.


Tho city OF Austin, Tex. owns its own
water works There is. however. an oil
water company which also supplies water
TO customers, 40 that there Is a competition
between the two, a very unusual cond. 10,
or things and one that i, would appear
ought not 10 exist. Usually the old " ter
eenpany is bought out and the city takes
eNs lsive charge. AS part of the new
water works system Of Austin there Is a
larss and expensive dam, which has de-
Neloped both siiting-up and leakage, and
this tact Is used as an argument nsafast
municipal ownership II is declared that
II the water system had been owned Nv a
private company the city would not have
been laid to the expense Of correcting
hlrnders OF construction or making repairs.
and that city ownership naturally tends
to more careless system OF engineering
thaa would be allowed by a private cora
psny which depends upon It's receipts and
economy,
The argument takes This form: II Il
said that better and ADLER engineers would
be employed by private owners. who are
going 10 pay the hills ana be responsible
for The losses, than will he employed by
municipal councils whom the taxpavs~s
pay the Hills and the majority OF the con-
slitaents OF the councils cav no moro than
the poll tax. II IS also saI that cven n
municipal councils employ the ehlest en-
rineers there h vet always the possibility
% accidents with heavy losses. and that
these losses must In the case Of munici-
pal ownership. be paid By the muuiclpaii-
", willis IN the case " private ownership
the municipality IS free ~ expunse In
the case Of Austin Il Is reported that sha
municipal plant has proved a failure. spd
II - asserted thai the average cost Of
mualripal ownership TO tire taxpayers S
greater than the average cost Of private
ownership
u "a true tina, there are failures under
municipal ownership. due 20 carstessness
or dishonesty. bnt there Is a multitude Of
such failures Of private companies. II
Is FAR from clear that private companies
employ better engineers than municipal
itlss In fact, this IL = Kind 81 work IN
which the cities feel Obliged. no mattor
how badly they are governed. 90 secure
the best expert direction. Statistics show
that municipal ownership has been both
safe and economical
but there ts more serious moral side
20 this Austin case. The city issued bonds
for the construction og rs water works
and y has fctaulted upon the interest
et those bonds The real trouble IL not
with the engineers bat with tie council
/ men. competent engineer was sent
down BY the holders 81 the bonds In Aus
tin 20 make careful Investigation Ito re-
ports that the dam is 81 good condition
that there are two siight defects that
could easily be remedisd. bat are not at
present dangerous; that tho gross receipts
would he double What they are bat Tor the
! the rGinOGs competition between the
/ cityS plant and the OLD water company:
that extensive improvements which
should have been charged 90 capi;si
have been charged go Income and that
! THIS has produced the deficit which has
been the excuse Tor the default TIE
( herds bear per cent Interest aud the
real purpose of the default Is 70 corn-
pei the holders OF the bonds 70 accent a
reduction OF the interest To per cent
[ But the best people 81 Austin. under the
I leadership ~ Mavor Mccall. are violent
( ~ opposed to the action ~ the city eaun-
ell and Ia favor Of paying the bonds In
terest and principal or course the old
water company Is doing everything II