The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1906-09-18
CRAFT, RED-TAPE,
INCOMpE pETENCY
these Are Regarded As
Among the Chief Reasons
Why Municipal Ownership
Fails
SAYS MR.. HoYT MILWAUKEE

MANAGEMENT OF PUBLIC
UTILITIES IS BETTER THAN
OWNERSHIP BY MUNICIPALI-
TIES
NEW YORK, Sept. 19-Frank NJ.
Hoyt a leading attorney and banker CT
Milwaukee whose address on "Municip-
al Ownership at the Wisconsin State
Bankers convention a short time ago cre-
ated much comment throughout the coun-
try was asked TO give the principal rea-
sons why municipal ownership in the
United States in such a general failure.
He said:-
''The municipality can neither con-
struct nor operate a public utility plant
as cheap as private corporation because
it pays more for material and it gets less
work from its employees.
The private corporation moving With
out red tape and having the utmost
liberty of action, can avail itself of con-
ditions and opportunities, market and
otherwise, which are not open to the mu-
.nieipalits, and can thus procure eonstruc-
ton and material at much more favor
able price than the municipality which
must followed prescribed forms, adertis-
ing for bids, voting on questions of pur-
chase and observing provisions of law. all
of which cause costly delays.
THE employees of the private corpor-
alton are selected solely on the basis CT
thir fitnss for tn work thy are employed
to do. The employees of the municipali-
ty except where civil service rules are en-
forcd, are chosen largely for political
well applied-are an inadequate substi-
tute for the work of selection done by
the individual master.
.'The heads of city's administration,
''its brains,' cannot be chosen by civil
service rules. These officials must be
elected by popular vote or appointed by
officers so elected.
Conceeding to these officers lisposi-
ton to select the most competent men,
this desire can with difficulty be fulfil
led: not only because the pay offered IS
usually inadequate for the service but
where a reasonable compensation is pro-
yided, the great majority of men best
qualified to successfully manage large
public utility plant are averse to entering
upon an employment where the tenure is
as uncertain as that Of political Office.
'Again-incompeten or failure of du-
ty in the employee of the private corpor-
alton is met with prompt discharge.
sThe public official. elected to office,
though incompetent or neglectfui is un-
til the end of his term practically beyond
danger of removal from office.
THE employee appointed under civil
service rules can safely indulge in a GER
tain amount of remissness of duty
For these reasons the employees of a
municipality will not as a class equal
those of a private corporation either in
ability or the amount of work performed.
'The private corporation moves more
quickly than the municipality in meet
ing the constantly recurring demands of
the public for increased and better ser
vice.
By the private corporation the situa-
ton is met with alert business sense of
men prompt to recognize the opportunity
for increased business, eager to make
the gains, which such business brings and
with capital easily commanded whenever
a fair return upon the investment is rea-
sonably apparent.
s'When the municipality is called upon
to act the speed obtained by the stimulus
of private interest is wanting The slow
action of political bodies following pre-
scribed and limited courses is substitu-
ted for the unhampered action of a board
Of directors.
Political consideration and jealous.es
of localities delay and sometimes entire
defeat needed action. Lack of funds and
inability to exceed a constitutional deb
limit, often prevents the making improy.
mems by the municipality until long after
public demand therefore has become i'm
peratiye.
Notwithstanding all efforts at reform
it will be long time, if ever, before
graft is enierely eliminated from tn,
administration of municipal affairs.
The increase in the number of muni
cipal office holders and municipal en-
ployees would build up and intrench il
power a political machine detrimental t,
good government
.sThe dangers of the state from ttiI
source would more than eounterbalanc'
all the god that could possibly be de
rived from municipal ownership.