The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-02-14
MUNICIPAL MONOPOLIES.
Discussed by Tom Johnson at the
Chicago Convention.

--~C~tE7O
Chicago, Feb 14--Discussing munich
pal monopolfes before the antitrust
convention Mr.. Tom L. Johnson of
Cleveland said:
"They consist of rights and special
privileges in the public streets and
highways which, in the nature OF the
case, cannot be possessed by all the
people, and can only be enjoyed by
few. A constant struggle goes on to OBJ
tain such privileges, with the result or
checking and retarding for long time
necessary public improvements. Rival
claimants not strong enough to obtain
what they want often succeed in check
mating each other at the expense of de-
nying to the public needed advantages
Only very slight observation of, and
reflection upon the needs Of people
crowded together in a city, as to facili-
~ of moving about as to cOmmunica-
tiOn as to supply of water, as to supply
of artificial light, is needed to satisfy
any candid man that such businesses
are in their nature mOnOpOlistic. In
other words, they can be best carried
on, with the best results to the public,
under a single management and with
single consistent policy. Where COM
petition prevails in such businesses, al
most invariably the public service is in
efficient and defective. Wherever there
is unity, the condition of things is much
better. My proposition on this subject
is to enlarge the functions of munich
palities so that the means of transpor-
tatiOn, and communication. and the
supply Of water and light, shall be fur
nished by public authority and not by
private enterprise. and extend this prin-
ciple to its logical result of taking UNI
der public administration all businesses
which require the grant Of any special
right or privilege.
we have already started on this
road, and made considerable progress.
In many cities the water supply is
public business; in some cities gas and
1frrtNH Il
furnished by public authority; in many
cities of Europe and Australia street
railroads are owned and operated by
the public. Why not go on in this dl-
recuOn till there shall be no more pri-
vate property in special grants or fran
chises, and till all business requiring
such grants shall be carried on by the
municipalities Under present condi-
tions the adoption of this policy would
require the taking over by the public
only Of the water, gas, electric light and
power supply, the telephone and street
railroads.
THE evils which great many timid
people fear, as likely to arise from en-
larging the scope of the functions of
municipalities. are trivial in comparison
with the evils which are inseparable
from the present system. AS long as the
great rewards which these monOpOlies
offer to private enterprise are possible,
your industries will be hampered, your
politics viii be corrupted by bribery
anu 4Iduu, anu your people VIII nave 10
pay unnecessarily high prices for these
kinds of service, and they will be sub
Jected to daily and hourly incOnveni-
enee and vexation, owing to the poor
quality of the service I would not ad-
VOcate any disregard of existing rights
or any confscatiOn of existing property
It would be no violation of existing
rights for cities to erect their own
plants and to compete for the business
as they could readily and successfully
DO with the present private owners. 1t
would be no violation of existing rights
Tor cities to use their tax powers so as
to compel the present private owners to
bear the same proportion of public bur
dens, according to the value of their
property, including franchises, which
owners of other kinds of private pro-
perty have to bear. 1t would be no vio-
lation of existing rights, where the
power has not been bartered away. for
the cities or the states to regulate fares
and rates of compensation so as to
make them yield only fair return on
the actual investment made rather than
upon a fictitious capitalization based
mainly upon franchises or special privi-
lege values In short municipalities
ought not to hesitate to do what pri-
Vate persons in business do as matter
Of course. They should respect the
grants which they have made accord
ing to their true limits, but doing this
they should take ADVANTAGE of every
right that is left to themselves to get
rid of the present system and substitute
therefor a regime of public ownership
and operation"