The San Francisco call., 1903-09-09
PUBLIC UTILITY BONDS.

public utility bonds be a lien on the plants
~ which they create and not upon the taxpayers
OF the city. By such plan only there be secured
an approach 10 honest and proper management OF
business investment by the city. Take water sys-
TEN as an example II the bonds that acquire it and
the cost OF its administration and extension be
charged the raepayers in the cost to them OF the
supply, they have not only the ready means Of COM
pairing it with system under corporate management,
but also OF judging whether it IS honestly and
nomioally administered Every year the balance
sheet OF the cs water system is put before the rate
payers; if income and outgo be equal they know it;
If there be surplus they in it a for less
rate; If there be deficit they in 1t reason for
a larger water rate. -
This applies especially to Oakland where the prop
oston to acquire public water system is somewhat
more advanced than in San Francisco. II in that
city bond interest and sinking fund is charged off
10 the general fund.- and annual deficits are put upon
the taxpayer instead Of the ratepayer these items are
concealed in the tax receipt and knowledge is kept
from the ratepayer who may think that he is getting
his water cheaper because part OF its is unknown
to him. and he may be paying a higher rate than
before without knowing it. Again, as the payment
OF the OF water supply is imperative that part
OF that IS concealed in the general levy will have
TO be provided for and the result will be the scaling
down Of the levy for the essential purposes OF gov
ernment, such schools, police, fire and proper
maintenance of streets and similar things that go to
the protection sanitation and just government of the
city
Mayor Schmitz' platform in this city demands a
general system Of public utilities. The industries
which It proposes to include in scheme of business
carried by the city viii involve capital but little
less than SIoooooooo which it is proposed to COM
pei the taxpayers 10 supply by taxation, and which
IS become lien upon the city instead of upon the
plants which It creates It is admitted that the ad-
ministraton OF these vast business systems by the
city will be more costly than under private owner
ship The Examiner in attempting to justify making
the Geary-sreet Railroad bonds lien upon the city
instead OF upon the road, says: The traffic will grow
immensely There would be a substantial
sum which the city could dispose of as it saw fit. This
sum would 60 in part to the employees in meeting
the extra expense OF the eig1thour day required by
the charter"
The industries which the Mayors platform pro-
poses to public utilities have now about 5000
employees. Who doubts that their influence in
politics will be Immediately enlisted in removing their
wages from the influence Of supply and demand and
making them subject TO legislation by the city gov
ernment? Does any one expect soon to see a CITY
government here that viii not seek and hold power
by granting every demand OF that kind? The result
viii be that all this extra expense will be egislated
out OF the pockets Of the taxpayers instead of
ing out OF the income Of the vast and varied busi-
nesses which It IS proposed the city shall manage.
What may be expected to happen has already hap.
pened in Kansas City in the municipal ownership and
administration OF the water supply. The rate re-
mains the that charged by the private water
company the income has increased only I3 per cent
and the expense has increased over 90 per cent Now
when that increase, which is an actual deficit is
charged of to the general fund the ratepayer is left
in ignorance of the of his water supply caused
by the increase in wages paid
There is only right way in business either pub
lie private and that way dictates the putting OF
al bonds, and their interest, and the cost of admin
istration, upon the plant which they create