Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1906-11-23
A MENACE TO CITIES
Professor Fessenden Sounds &
Note OF Warning.
Cities Not Adapted 10 Operate 3usi-
ness Enterprises-Loss Of CsPiss
Through New Developments - Tnn
Danger . Real One.


ness Enterprisss-loss Of Csp,ts
Through New Developments - Tine
Danger . Real One.
Ii is becoming more and more gen.
orally recOgnizcd that undertakings
founded on the great public needs oi
the highly organized soci-ly of mu.ieru
times should lie controlled by society.
Whether. having the power. il i al
visable that municipalities should uc-
tually engage I'm such undertakings or
whether they should merely maintain
their control. as il has been APPLY put,
through their powers a. ii landlord. i
a matter which will he determined 10y
the municipalities from political, social
and economic as well as engineering
considerations.
Considering the question from its en-
gineering side alone. ii is found that
from the very essential nature of the
matter only n certain class of engineer
ing undertakings can be efficiently and
properly operated 10y states or munich
palities. Ii is very important that this
Limitation should he recognized, as
where the Limitation has been over
stepped il has resulted in heavy tinan-
cial losses TO the governing bodies I'M
mediately concerned, Ii has seriously
checked development in engineering
lines, and these results have in conse-
uuence afforded strong argument TO
those opposed to municipal operation
of public utilities.
1t is true that under state or munich
pal operation some minor and sporadic
Developments may be expected, but
nothing of general or important char
acter Important developments gen
orally come only from the hands of in
diyiduals or bodies responsible only to
themselves and provided with the i'll
centive of a large profit. The elimina'
ton of self responsibility and incentive
would inevitably produce condition
in industrial and scientific develop,
ment analogous to the dark ages.
1t Is to be noted that this conclusion
Is derived from engineering considera-
tons alone and does not include any
consideration from the political, social
or economic side. There may, 1t is
conceivable, be political, social and
economic considerations which tend to
affect this limitation. Considered, how
ever, from the engineering standpoint
alone there can be no question but
that the field of state and municipal
operation should be limited TO under
takngs in which there is no immediate
prospect of or need for improved
method.
A danger which Is always associat-
ed with the ownership of industrial
undertakings Is that the capital invest
ed may lie lost through the develop
ment of new and cheaper methods and
processes. The extent to which indus
trial machinery of certain types is rem
dered obsolete by new improvements
Is not always realized. The writer is
personally acquainted with one street
car railroad plant in which the entire
electrical equipment of the power
house was thrown out and replaced
with improved machinery four times
within period Of ten years. The Car
negic company is reported, correctly, 1t
Is believed, TO have scrapped on one
occasion more than S1,0NOO0 worth
of new machinery which had never
been used.
This has already become a serious
matter for many municipalities which
have engaged in undertakings lying
outside Of the engineering limits de-
fined above. Many of these municipal
tiles installed plants for the produc-
ton of electric light at time prior to
the advent of important improvements
in generating and distributing electric,
ity, and as these municipalities in COM
mon with most municipalities made no
proper allowance for depreciation the
capital invested has been practically
lost, and in addition the cost of cleo
trio light to the consumer is much
higher than it Is in other places equip
ped with later and more economical
types Of machinery. In addition, heavy
and expensive repairs have been ncces-
sary and the taxes correspondence in.
creased. This has reacted upon the
municipalities, since the heavy rates
have caused manufacturers to move
away to other towns, and this again
has still further increased the burden
upon those remaining. There are al.
ready indications that considerable
number of these municlpal.,ie les which
have engaged in improper undertakings
are entering upon period of financial
ditticulty.-R. A. Fessenden.