The labor world. [volume] (Duluth, Minn.) 1896-current, 1906-02-24

But 1t is the buyer Of privilege
rather than the seller who corrupts our
city politics. 1t is not politics that
soils and pollutes business, but busi-
ness that prostitutes politics.
The second requisite for NUM-
cipality-owned enterprise is that it is
"of such a nature that competition
cannot enter with benefit to the pub
lic;" in other words, the function
must be monopoly.
1t must be something that large
majority of city jewellers must use, an
enterprise that the natural tendency
to consolidate, in private hands, is
greater than the tendency to compete.
There would be distinct loss in oper-
ating expense, efficiency and good SER
vice if there were two postoffice sys-
TENS, two water works or two garbage
plants.
Why Corporations Merge.
This is why, in every city, the tend
ency for street railways is to CONSOLE
date with each other, and then to con-
solidate with power and light COM
panies. Whenever the people require
an indispensable service to be rend-
performance Of that service in private
hands unless" it is possible, by future
grants, to create, or threaten to create,
a competing interest in what will COM
pei proper service at fair cost.
The third and fourth requisites
namely, service 'involving large out
lay for plant and equipment and con-
templating continued service"-are
coupled. No private interest can af-
ford great outlay unless it is assured
g. franchise long enough to pay back
its initial expenditures and a fair re-
turn on the investment. This means
that the public must not pay for ser
vice rendered, but must also pay out
right for the plant itself. The shorter
the franchise, the poorer the service
must be in private hands, and the
longer the franchise the less the pub
lie can safeguard itself as time goes
on.
Peoples Franchise.
No franchise can be granted on terms
that are fair at the time Of the grant
without in the end, by reason of the
growth Of population and progress of
invention, working a hardship to the
public which grants the franchise.
The public itself, on the contrary,
has a perpetual franchise, and with the
growth Of population and the installa-
ton OF improved methods the cost of
service must be constantly reduced, in
which case the public reaps all the
benefit.
The people Of the city Of Cleveland,
for instance, are paying dividends Of
Is per cent on the actual money in
vested by private interests in it's street
railways; indeed. the Street Railway
company is actually earning. net. 20
per cent of its money investment and
paying 15 per cent dividends. This is
concealed by the fact that securities
have been issued In such volume that
the apparent dividend return is only
Is per cent, but it is admitted that the
physical property of the company could
be reproduced for one-third Of the
money represented by the securities
issued.
Means Retirement.
The worst feature of private owner
ship Of public utilities, after all. Is the
creation of a hostile interest which is
directly at variance with the best pub
lie administration OF the city's at
fairs. The water works system Of
Cleveland would, In private hands, be
easily worth $2o,ooo,ooo. vet the plant
has largely been paid for out OF earn
inEs; and rates are constantly reduced
and service bettered. no s@
Using Cleveland AZ an 81 examplss
again We md that under i singular;
Ely honest policy. the street ilwa "a