New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-12-16
MUNICIPAL OWNERSHIP.
VIEWS OF PROFESSOR BENns on CoMPE-
Triton AND PUBLIC UTILITIES.
[Br TELEGRAPH TO THE TRIBUNE.l


Washington. Dec l5.-The testimony of Professor
T. w Bemis before the Industrial Commission the
other day municipal ownership OF public uthi-
ties has attracted interest in many quarters Inc
witness prefaced his remarks with the statement
that as a result of Industrial and economic eVo-
lution competition had practically broken down as
a regulating force in the case Of street railways
water gas and electric light companies ana 10
some extent in telephone systems. THESE lnous-
tries excluding telephones. represent investments
and capitalization OF than sS.O0O0OOO0O In the
United States. Economical administration favors
combination not only of different companies IN the
same field. but also Of companies in different neios
as OF electric light and traction companies-on &C
count of the mechanical economies thus erected
and of electric and gas companies to prevent
competition in lighting. Not only do such combi-
nations occur in single cities. as in New-fork'
where a union OF gas electric light and electric
traction companies is rapidly taking place but the
same interests control similar enterprises In num-
Der OF different cities. single company was cited
that controlled the production and price OF gas IN
forty cities and towns. including places Of such i'm
portance as Philadelphia. Jersey City, Kansas CITY
ana Atlanta AT the present time over 30 per cent
OF the waterworks % per cent of the electric light
plants and all but one-third of 1 per cent OF the
gas plants of the country. estimated upon a basis
Of capitalization, were In the hands OF private
corporations. Systematic regulation of these by
the State has been attempted only in Massachu-
sets II was suggested that public regulation
or municipal ownership imperative I'm order
10 protect the interests Of the public in the face
OF such conditions.
Professor Bemis thought. however. that either
OF these conditions could be introduced but gradu-
ally and that intelligent legislation would neces-
sariy preceded by long and careful study of the
questions involved Preliminary to further remedial
measures il would be necessary to secure such de-
gree of publicity OF the accounts of the corpo-
rations involved to inform the public where and
how such measures should be applied.
EVILS OF Observation-Disclosures:
sneaking OF overcapitalization as OF the prin-
cipal objections TO private ownership, Professor
Benis said that IN Massachusetts. where this Is
forbidden by law the average capitalization per
mile of street railway track was less than $4,000.
while in other States. with identical operating con-
ditions II was ss1 oOe Gas companies capitalize, as
a rule at about 50 per thousand feet annual sale,
upon an actual investment Of less than half that
amount. Despite the fact that they under little
or no expense for roadbed the street railways of
the country capitalized at so per cent per
track than the steam railways. at $4,000 and
$50 e00 respectively.
In suggesting remedies the dicussion was con-
fined largely 10 private ownership. subject to pub
ownership Of tracks mains in conjunction with
operation by private companies had been tried in
usually into complete ownership and operation by
regulation by State Commissions acting largely as
judicial bodies, hearing complaints presented by
companies holding public franchises examining
books. requiring reports and regulating capitalize
a step in the right direction The English sys-
tenn of retaining more or less control such
Parliamentary charters was also mentioned. Pro
fessor Bemis thought that the great superiority in
the English system was the means taken TO Sc
cure publicity and public auditing Of accounts.
counts OF electric light companies, and similar pro-
visions exist in case OF many other companies en-
.oying public franchises
PUBLIC OWNERSHIP IN ENGLAND
The effect OF public ownership in England, where
about so per cent OF the electrical energy supplied
for city traction and lighting and private lighting
and a large part OF the gas used furnished by
municipal plants said to exert a beneficial in
huence: even in places where private. companies
try was further said TO have demonstrated three
positive advantages from ownership by the munich
panty; decreased cost 10 the public, due 10 the
fact that stock dividends paid and interest
aLiu use me actual cost OF pro
auction was Iessened for the reason just 10 be
ministratio5 On account Of better mem heinz sI
tracted TO municipal offices by the greater inpor-
lance and responsibilities attached TO such posi-
tons.
Municipal ownership I'm the United States was
said to be increasing slowly, though this did not
ency howexer WAS being eounteracted to some ex
such laws that in Massachusetts which worked
TO compel municipalities desiring own their
by private corporations a valuation not based
on the actual Investment represented, but the
power was dependent upon the prevailing high
charges-which could not be maintained, especially
by the Observation-Disclosures Bemis thought il
ought not to create a permanent asset Another
encouragement to municipal ownership the
prohibition often placed upon public plants fur
nish light to commercial circuits.
In conclusion some figures were given as 20 the
relative cost Of public and private street lighting
In Chicago which has the largest municipal plant
in the world. the annual cost for each arc lamp
including interest depreciation OF plant and an al
Tate company was SIS IS for public and Sc e P for
private service Making the same allowances the
relative cost in Allegheny (public) and Pittsburg
(private) 81 and s97 a lamp.