The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-09-13

A few American cities have essayed TO
furnish their own lights for streets and
public buildings Some of the municipal
governments that have assumed this func-
ton have reserved monopoly Of the light
ing privileges within their territory; that is
to say, all householders must obtain their
lights from the municipal plant, WIN
very few exceptions only small cities in the
United States have municipal electric plants,
and scarcely any have attempted to manage
municipal gasworks. The success Of such
undertakings in the smaller cities, however,
indicates that municipal ownership will he
more common in the future, especially as 1t
has been observed that separate private
gas and electric companies in given locality
are apt to be consolidated after each has
acquired valuable privileges from the city
and thus to establish monopoly in private
hands.
With the development of better means Of
urban transportation, the suburbs OF Ameri-
can cities have been brought 80 near the
business centres that congestion of popula-
ton In the central wards is less inevitable
than it used to be- This is obviously
distinct gain from almost every
point Of view, but il renders the prob
lem of transportation a momentous one.
Especially is this the case in those cities
where the control OF all the street rail-
ways has been acquired by single corpora
tons. Mr.. Ashley points out that most OF
the street railways now In operation i'll the
United States have been built and are man
aged under franchises granted by City Coun-
IL, 70
years. The privilege OF laying one or two
tracks upon specified streets is conceded for
a certain term, on condition that cars shall
be run every five, ten, fifteen or thirty min
utes. as the City Council shall consider neces-
sary When the privileges were granted,
the street railway companies might not
have been able to carry out their part OF the
contracts and, at the same time, make
great profits; but very often in the course of
few years franchise has become worth
an immense sum, no part of which has found
its way into the city treasury. If, in addl-
ton, there has been a union of different
companies which has averted competition
the cities may be obliged to suffer the incon-
veniences Of poor service as we'll as to lose
the income that might have been theirs.
Two ways of avoiding these evils have been
suggested. The first is that the cities should
own and manage their street railways; the
second is that franchises should be granted
for short term Of years, on conditions that
would give municipal governments control
over the private companies and a percentage
of the profits. Most persons who have given
any attention to the subject will concur
with Mr.. Ashley in holding that three rules
may be laid down with regard to public
utilities" First, streets are public property,
and should be used solely for the good OF
the community: it follows that if permits
sion is given to individuals or corporations
10 lay tracks or water pipes, or to erect poles
that carry electric wiles. the benefits accru-
ing to the citizens should be in proportion to
the value Of the privileges granted. Sec
ondly, a city should receive net income
from the use Of its streets for such purposes,
whether the business is conducted by the
municipal government or by private parties
Thirdly, the citizens should have the benefit
of good service at reasonable rates. Whether
these desirable results can be best obtained
by private or municipal ownership, the
author of the book before us does not pre-
tend to say. He thinks, indeed, that, if
any Of these business undertakings are
naturally monopolies, or become monop-
olies, the need of adequate municipal con-
troll. if not municipal ownership, has been
proved by experience. Then, again. when
the original cost of the undertaking is large
in proportion to the annual expense of oper-
alton as in the case of waterw orks the ad
vantages Of public ownership are unmistak-
able On the other hand. any business of a
semi-public nature in which the employ
ment of large numbers Of men is necessary
has been, as matter of expediency, gener-
ally left to private parties. except where
continuance of private ownership has
proved a menace to the welfare of a city.
Even then. private management under
public ownership has usually been advo-
Gated
The most creditabe and valuable work
embodied in the present book will be found
| in the chapters dealing with the Articles
of Confederation, superseded in 1880; with