The San Francisco call., 1903-09-26
PUBLIC UTILITY BONDS.

Geary-street Railroad bonds lien upon the city, 10
be paid by the taxpayers, instead of lien upon the
road itself, to be paid by those who need the Of
AS far as the latter are concerned they have the
road and enjoy its at the same fare they
would pay were it owned by the city, and the pri
stockholders have stand the losses incurred
in its operation, if there be any
The Call has voiced the sentiments of the wise ad-
vocates OF public ownership who desire that honesty
and business principles shall be enforced in the ad-
ministration OF business plants under such
ship by insisting thatsno bonds therefor be made
lien the city, but that they shall be made lien
the plant alone. 1t is so plain business proposition
that has attempted to answer it. The Ex-
amner gows with descriptions of the plant the city
will put in which is to furnish all the luxures Of
travel and many of the comforts of home but it has
not venured to say that the city cannot do all these
things equally as well if the bonds are lien the
road only
Supporting our contention we have the experience
of every city and of every country in the world
that has experimental with public ownership.
Whether the Government be strongly bureaucratic,
like Germany; autocratic like Russia, or a repre-
sentative democracy, like our American cities, OF
self-governing colony Of Great Britain, like Australia
and New Zealand, the result has been the same.
In 1888 the colony of New South Wales in Aus
tralia into the railroad business The Minister
OF Railways soon began complaining OF the ineffi-
cheney and disloyalty OF the employees and the public
OF the decreased efficiency and the increased cost
OF the service An attempt made to have the
administration OF the public railways non-politcal,
under civil service This policy though required by
law was frustrated by the influence Of the employees
upon members n Parliament, who required their
votes Mr. Shiels Minister of Railways, said that an
IL
railroads of Victoria disorganzed the administration
torn by internal jealousies and finally com
PEELED to abandon hope of making things better and
resigned and went home.
In the Victorian Parliament the employees pro-
NOTED measure to greatly increase their wages,
and during the debate a member Mr.. Bennett said:
Il know there are thousands OF men who are far
off than those whose pay we are asked to in
crease, and know the country cannot stand the
penditure, but still am not going to be fool and
if this raise go to a division | will vote for it
This that he desired to retain his seat in
Parliament and his place in politics, and to do
must seek votes by supporting a measure that he
admitted nimical to the interests OF the coun-
tryl The colony bonds bought built the roads,
and the loss in running them charged off to the
taxpayers, that the thousands of men who were
worse off than the employees whose wages were raised
by legislation had stand further burdens in in
creased taxation BY 1899 the railroad deficit
amounted to $I7,83oooo. Yet the service was poor
and its cost, to those who used it, higher than on
the railroads OF the United States
In New South Wales the railroad administration
reported surplus of $4,000 for the year 18o7-o8
But an expert examination showed deficit for the
year OF $o4o,ooo which had been charged off to the
taxpayers. The effect OF such management Of the
Australian roads has been largely increase wages
in the less skilled departments, where the voting
employees are numerous, and to reduce the pay OF
the skilled and especially OF the expert managers.
The result is poor service at a high cost First
class in administration cannot be had in the
positions that tell in management and those that do
hold them are permitted to conceal their failures by
putting deficits the shoulders of the taxpayers
Now it is Prevent this that we demand that it be
made impossible to put any burden incident to the
business OF street raroading in this city upon the
taxpayers. if the city is to go into that business
compel it to do just 5 a private owner would by
making the plant support the cost of its acquisition
and administration. 1t is the only guarantee the
people can have that the business will be properly
administered The Examiner admits that the cost
OF public administration will be greater than under
private corporate management OF the same busi-
ness. II this admitted increase in cost cause de-
icit it should not be put upon the taxpayers of the
whole city, but should be borne by the road and met
either by increasing fares or economizing expenses.
or by the issue of bonds just as private owner
would meet it.
1t is cold business proposition. The city pro-
poses to go into business and the taxpayers should
compel it to do so in purely business way All of
the fervd talk about the good example it will set to
the private roads has application to the matter
after all. II it set such example it will be only
by starting right and making the cy's railroad busi-
ness carry its own cost without putting any upon
the taxpayers.
Venturesome promoters have on hand scheme to