New-York tribune., 1907-12-07
TON yOHysOY's VICTORY.

The exnactation of the Cleveland voters that
the Cleveland Electric Company Would suLteh-
der to Mayor Johnson. which was unoouoleuiy
most important factor in his election seeinS ho"
certain to be verified The hve-cent rare COLI
many has agreed TO be taken over by the holding
company which controls the fhree-cenl i"ie
corporation. Only the valuation OF certain prop
erty and franchises remains TO be agreed upoh'
and the same powerful motives that lmpei the
company TO accept Mayor Johnsons offer III gen
eraI will preyent its resisting very strongly his
terms in detail This result was to be expected
when the Cleveland Mayor won his recent VIC
torv at the Dols Several times within the last
wear or two the Cleveland Electric Company
seemed 10 be on the point of surrenderlng. ana
il was apparent that its sole hope lay III MS
defeat With a Mayor in office determined to
force a three-cent fare and frankly ready 10
use his authority far as he legally could 10
help the threecent company against its riVai,
and with the people of Cleveland plainly IN
mood TO continue him in office until he accom-
plshed his purpose, there was obviously noth-
ing for the traction managers 10 do but 10 ac-
cept the inevitable.
Now that this great victory for the people
has been won ii is only fair TO consider what
il cost The shares of the Cleveland Electric
Company have dropped from nearly par two or
three years ago TO 32. tremendous loss TO the
stockholders whose rights it is now perhaps no
longer the fashion to consider. If victories OF
this sort for the people become common IL is
obvious that the cities generally viii pay for
them in an unreadiness of investors to put their
savings N municipal utilities. Moreover. III
these DAYS when we read good deal about the
unscrupulous management of public service cor
porations. it is not by any means reasSuring to
know that the greatest municipal victory over
Il. -Y,nnf hnH
which the Ohio courts condemned in the sever
est terms. The double danger of being exploited
bv outsiders as well as insiders may well make
investors cautious Many of these franchises
which are 10 pass over to the holding company
have several years TO run. and there was no
particular complaint that their owners had not
done their part, furnishing a reasonable service
at the price agreed upon. Zeal in the pur-
suit of corporations may be carried TOO lar.
Absolute fairness on the part of cities and states
in the treatment of utilities companies is neces-
sarv in order to give investors confidence as
absolute honesty on the part Of corporation
managers and confidence on the part of invest
ors are necessary to municipal development.
Whether Cleveland will really profit by the
change will depend upon the good faith of those
in control of the holding corporation. 1t looks
like superhumanly virtuOus concern. We have
often referred TO it as the true believers com
nanv" because no one was admitted 10 it who
did not profess the true faith of municipal own
ership 1t is an ascetic body which merely toll
crates the sins of private ownership until 1t Is
legal for the city TO enter into the heaven or
nuhlic control 1t is solemnly pledged to serve
the public No profits will stain the fingers of
these good men. but they will be devoted TO i'm
proving the service by building additional lines
as they are needed, and we believe TO forming
n sinking fund so that the roads Will some day
be owned clear and may be made present to
the city when this sanity cOmpan.' is In legal
position TO lay down the earthly cares Of private
ownership. All in all, it seems as if Tom john
son had called into being the first corporation
with soul. and that is why the world may be
pardoned for standing by little increduous.