The labor world. [volume] (Duluth, Minn.) 1896-current, 1906-09-29
low who has no powerful influences In

tire community.
Compared with the other public uttl-
tiles the gas and water plant ia On a
firmer financial basis than any 'pri-
vately owned public service institution
in the city.
Our gas and water plant Is bonded
at its actual value only. It pays the
iurgest dividends of any institution In
the city. Each stakeholder who uses
gas OF water gets Is cents on each
1000 feet he may use, and on every
$500 worth of water he receives a
profit Of $1.0o, and these dividends are
raid every month. When private
Plant sold gas In Duluth they received
more than 800, now the people get
it Tor IS cents, water is sold fer less
than one-half charged by a private
company. This difference goes direct
to the consumer
The interest rate on the bonds Of the
public water and gas system Is lower
than that paid by private companies,
being but per cent. Out Of the an
nual earnings much new construction
work Is being done. A private COM
pany does not do this, but pretends
to charge it up to depreciation, but it
truly goes into the pockets of the
stockholders and money is usually bor-
ro~ed to not only do the new con-
struction work, but much of the recon-
struction.
OF course the city is borrowings
money to make extensive improve
ments, but this in the future will be
Tor the arterial portion Of the system.
The minor extensions will be made out
ct the earnings Of the plant.
In the beginning many mistakes
were made. 1t could not be otherwise.
Private corporations make blunders al
So but we are getting municipal own
ership down to a science in Duluth.
Errors in the future will be less fire.
quent, and nothing can possibly occur
to mar the success Of the cause.
Our publicly owned plant, we have
sa1d' Is In better financial condition
than any public service utility in Du-
'oth. The street railway company, for
instance, has bonded Indebtedness OF
*2'6ee,666.67, drawing and S per cent
and preferred stock to the extent Of
100000 with a guaranteed earning Of
I per cent, and few know how rnuch
common stock is in circulation. Yet
this plant can be duplicated for 81
$780, 900.
The Duluth Edison Electric COM
pany is indebted to something over
$2,000,000. We have forgotten the fig
rres in detail, but we are satisfied that
the plant can be duplicated for less
than 100000.
The city paid $1,25o,ooo for the plant
and franchise Of the old gas and water
company. This was much more than
!! was worth, but the balance of it's
water and light indebtedness was put
into actual construction, and the value
13 still there. This is why our city
plant is in better shape than any other
public service institution.
In the News Tribune's article the
writer refers to public ferry in Bos-
ton, We do not have to go to Boston.
Duluth suits US first rate. Until the
aerial bridge was completed we paid
more than $4,000 a year for ferry SER
vice across our ship canal. We are
now running our own ferry at cost
of operation not exceeding $4,000. In
terest on bonds amount to $4,000, and
VIC have $4,000 left for depreciation.
But the service Is ideal. It is another
triumph for municipal ownership.
But the real benefit from municipal
ownership is good government Good
government means economical govern
nnent. When there are no private cor
porations to influence public officials
the best results for the people are Sc
cured. Following municipal owner
snip Will come an economic and I'M
nolested administration of city gov
eminent affairs. This will result In
low taxes, healthy political conditions
end the best economic returns.
There is no politics in municipal
ownership in Duluth. It is the ideal
principle in local government, Hail it.
Encourage 1t. Fight for it. Eternal
activity is it's price. Let us get it COM
p.etely.
The losses Of truth are more profit