New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-26
OUR EXPERTS ABROAD.
II Surrey of the Economic Results Of
Municipal O5gHership.
London. March II

mission IS attracting much attention here NJ
NIaltbie. Mr.. Sullivan and their American as
sociates have been courteously received By mn.
nicipaI officials and the directors OF private COM
panies. and their work Of investigating the prao.
/ teal results Of what they describe as "ovnsr.
ship and operation OF public utilities" has bsa,
facilitated i'm many directions. They have taken
/ Offices in London, and this IS regarded as an
indication that their inquiry VIII not be sllpsr.
/ fetal. but thorough; and they are employing en-
| gineers and accountants TO assist them In A.
pertaining the actual results OF the best system,
/ OF management and control and to detarraf,.
under what conditions and TO what extent each
/ is most efficient and successful. The four ran.
| resentatives OF the commission now IN ENGLAND
two more are expected IN a fortnIght-hsva
| put themselves IN the right attitude toward TIA
partlsans and enemies OF municipal ownership.
They have shown. by quoting the names Of
American bankers. manufacturers. JInivsrsitv
! professors. engineers, editors and labor organ.
/ izers that they have a thoroughly resDonsibl.
! and representative body behind them; and thav
have discIaimed prejudice or bias. announced
that they have no thesis TO establish and are "a.
stricting their activities TO the collection OF Mai,
| facts regarding municipal and private opsratio,
OF public services. An investigation conductss
/ on these principles commands interest and "a.
| spect. English and Scottish municipal reform.
/
| consider local government in the United kim.
dom so efhcient and progressive as 20 rsquir,
! critical examination by trained experts Rep.
resentatives OF private corporations and rata
payers associations are equally interested IN
! processes OF investigation which NAV favor thsiy
| own conclusion that municipal affairs are uais-
| managed IN England and that money f. tasau
from taxpayers TO carry on unprOhtabla enter
/ prises.
It is not likely that the commission viii taxa
up the complex problems OF local governmsuA
and taxation in England. nor any OF the uaunioi.
pal fads which have interested sentimental r..
formers. Its work viii be closely restricted TO
the main policies OF municipal ownership and
| operation OF public services, One OF these, tia
water service will be passed over Lightly, as
American experience in nearly all the lsrga
towns has fully justified the English principle Of
public control and management II there wers
/ any controversy on this point a brief memoran-
/ dunn on the water supply OF London would SUI
ice to settle It. II the metropolis had taken ID
| this matter twenty-five or ffty years ago
| sources OF supply among the Welsh hills would
/ have been tapped, and dependence upon greedy
| private corporations, incapable OF keeping
| abreast with the requirements OF svarning
hives OF population. would have ceased. The
sorry experience OF London is q warning against
portant public interest as water supply Pub
lie control over this service ceased long ago 70
be controversial matter, either IN England or
America The gas. tranway. electric light and
power services are open to argument, and II Is
with the practical results Of public ownership
| and management IN these departments that the
commission Will be mainly concerned. The et-
feet on taxation may come IN incidentally.
With the exception Of London, Liverpool,
Newcastle Norwich and Dublin. an the large
cities Of the United Kingdom own and Manage
| the gas supply; and out OF no undertakings 258
are under the direct operation OF local authori-
ties. In only a few instances have gasworks
been built by the municipal or district councils.
| There have been many engagements OF plant
but the business Of gas supply was mainly IN
the hands OF private companies at the outset
| and has been purchased at a fair valuation o.
property and goodwill. There has been mora
adequate public control over gas companies in
the United Kingdom than there has bean N
America Dividends were originally limited to
10 per cent, and were subsequently reduced TO
6 and per cent on additional capitals and there
were various safeguards for securing public
tests and fixed Illuminating standards and max
ing it costly for companies to raise the price OF
gas and profitable for them TO reduce II FeI'
with all these arrangements for maintaining
strict supervision OF the business Il the interest,"
OF consumers, the local authorities have con-
sidered it ezpedient, II not necessary, 70 buy
out the companies and to take charge Of the
business themselves. With about t66.OOOOOO
invested in these local undertakings and ovsF
Ell 100000 in ordinary gas shares, it e now pos
sble TO compare the results OF municipal and Dri-
vate ownership The prices Of gas vary IN ths
different sections OF the kingdom, seldom falling
below Is. per thousand feet or rising above s.
ID; but the average IS Is. So. for municipal and
2s. lid. for company gas. Municipal gas costs
the consumer less than company gas; and the
price IS likely to be reduced when, through the
operation Of sinking funds, the debt Involved BY
purchase and enlargement OF plant Is gradually
wiped out Municipal ownership, moreover has
cheapened gas supplied by private companies,
which are easily convicted Of overcharglnE con-
sumers. It was the original intention q re-
formers not to have the business profitable, bus
to let consumers have the full benefit IN cheap
gas. With the increased burdens OF local taxa
ton it has been necessary 10 change this policy
and to divert the surplus earnings to the relief
OF the rates. The profits OF the gas business
now amount 70 $4,000 in Manchester and 70
100000 in Leeds: and the service IS moderately
profitable wherever IL is undertaken BY local Gu-
thorities. As the debt represented BY the caps-
tai outlay is reduced the surplus availabis fos
the relief OF taxpayers viii DO Increased.
The American commission ought not 70 and IL
difficult to ascertain the average results OF ths
gas service in towns large or small. where hs
industry has been municipalized for over fifteen
years and has passed out OF the experimental
stage. II VIII need 70 employ its most alert and
impartial experts when II takes I'D electricity
supplies for lighting or power; and English ulu~
nicipaI reformers and taxpayers viii have cause
for gratitude, II they are enabled 70 and ous
from the report Of the investigators approzi-
mately where they stand IN relation 20 this SER
ia licor-.- ,ha.L-.na -.-L--.A. aIao.