The labor world. [volume] (Duluth, Minn.) 1896-current, 1906-09-29
PUBLIC OWNERSHIP IS.
SUCCESS IN DETROIT
Former ( resident Of that City's
Electric Lighting Commits
sion Says Things.
Say No City Can Have Good
Government With Utilities
in Private Hands.

At recent meeting of the National
League at Atlantic City, Mr..
Frederick F. Ingram, ex-president of
the public lighting commission at De-
troit delivered a splendid speech on the
success Of municipal ownership in that
city. Here are a few extracts which
ought to be Of benefit to Duluth citi-
zens who believe that the city should
own its electric lighting plant:
''The, story of Detroit's public light
ing plant may be told in a few words:
Under public ownership actual cost
of service is covered by operating ex-
penses, depreciation, betterment and
sinking fund. Under private ownership
the charge. must cover these, and in
addition % A fair dividend on the
actual capital invested; (2) Dividends
on any securities in excess Of the actual
investment; go To pay back within the
life of the franchise not only the cap
ital invested, but the fictitious capit-
afization on watered stock; (4) Legal
expenses" a polite term that covers
blackmail by politicians and promoters
and the cost of privileges and exemp-
tions secured from legislative and other
officials.
"One fundamental fact that should
not be lost sight Of when comparing
public with private ownership. In both
cases any saving that .impairs the ser
vice goes to the benefit Of the owners
and is always at the expense of the pub
lie.
Under public ownership the people
pay only. for what they, get.
Under private ownership they pay
the price named in the franchise, and
the private corporations get the saving
made by impaired service or lessened
cost.
For instance, a street car franchise
will call for a SC fare, speed of -
miles an hour, a 2 minute service, COM
Portable cars and enough cars to pre-
vent crowding. Operating expenses and
equipment cost is reduced by speeding g
to 20 miles an hour with minute SER
vice and worn out cars that seat so but
carry 100. The private company furn-
ishes less cars, less crews, less capital
and gives less service than IT contract
ed to give, but the public must still
give the &c fare. .. ..--.....:~y .-..~:.~-
Under public own ership if the speed
crews, the passenger gets the saving
because the fare is the cost Of service.
If passengers would willingly submit
to bad and crowded cars and long
waits, they would also pay less, be-
cause such sehvice costs less.
"Eliminate the dividends and you
eliminate the - hanging straps, it is
merely a. question of cars and crews.
'rhe management of a public utility
runs the service to please the owners
"The private owner is most pleased
with poor service and increased divi-
dends, so as poor service as will be
tolerated is the usual result.
THE public owner is most pleased
with good service, as consequence
good service Is given.
my personal views are that cities
should own and operate all public util-
tiles within their boundaries, without
any qualifications or exceptions what
ever. Without reference to a city's in
abality to acquire or exercise owner
ship, there should be in such city no
farther franchise grants whatever.
"A well governed city must be a self
governed city. self-government is i'm
possible If the peoples control is
weakened and made ineffective through
grants of government functions to cor
porations. The, private corporations
under such circumstances of necessity
must be weakened and made ineffective
through grants of government, in 80
far as a government is reflection of
the wishes or aspirations or average
morality of the citizens.
There cannot be efficient city gov
ernment with public utilities in private
hands. The first consideration should
be to get them out Of private hands,
when other reforms will be possible.
AS in European cities under such i'm
proved conditions, city governments
here will become more efficient and less
corrupt. Fighting inefriciency and cor
ruption will be a losing battle so long
as the governmental functions OF num-
icipalities are divided between the
municipality and private corporations u
Mr.. Union Man:-Notify your Cigar