The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-07-30
Public Uttlities Regulation.

The committee Of the National Civic
Federation which has been investigating
the question Of municipal ownership Of
public utilities has made a report which
ought 10 satisfy the public demand for
some conclusions of tangible value from
that body. This report is signed by
every member Of the committee except
one and represents matured convictions
worthy Of general acceptance. The COM
mittee finds that the question OF munich
pal ownership is one that each city must
settle for itself, the conditions being so
different in different municipalities
that a general rule is difficult 10
lay down. No sweeping condemnation
Of municipal ownership therefore, is
10 be found In the report, the
committee agreeing that municipal
ownership is not an impossible thing.
provided that politics be kept out OF the
management Of public plants. and that
such plants be placed in control OF COM
petent and responsible persons and be
operated on business principles.
The committee. however. appears TO in
cline TO the belief that under condi-
lions as existing in this country. pri-
vate management with public regulation
is preferable 20 public ownership; but a
distinction Is drawn between public util-
tiles which concern the public health
and those which do not affect public
health. public safety. public transporta-
ton. or the permanent occupation Of
streets or grounds The former should
be operated by the public; the latter
may be intrusted to private enterprise
under public supervision. The more i'm
pOrtant conclusions Of the committee
may be summarized as follows:
Public utilities. whether in public or private
hands. best conducted under q system Of legal
lied and regulated monopoly.
Public utilities IN which the sanitary motive
largely enters should be operated by the public
The snccess Of municipal operation Of public
utilities depends upon the existence IN the city Of
high capacity for municipal government.
Franchise grants to private corporations should
be termnabe after a fixed period. and meanwhile
subject 20 purchase az fair value.
Municipalities should have the power to enter
the field Ct municipal ownership upon popular vote
under reasonable regulation.
11Halc NuHlldLta fiNIdtlhg pnDlc utllDcs
should be subject 10 public regulation and examina-
ton under system Of uniform records and accounts
and Of fun publicity"
The committee recommends that the
regulation Of public utility companies
should be intrusted to some competent
public authority, presumably a util-
tiles commission. which should have
power TO approve or disapprove the is
sue Of stocks and bonds of such COM
panies. With respect to gas companies
the committee recommends consideration
Of the sliding scale under which the
rate OF dividend may be increased only
when the price Of gas has been reduced
We note with interest that this fair
minded and impartial report is signed by
the eloquent and accomplished president
Of the District Board of Commissioner
the Hon. H. B. F. mcfarland May We
not assume. then. that his official infu-
ence Will be lent to carrying into prac-
teal effect certain of the foregoing rec
concentrations. of especial importance 10
the people Of Washington. TO which he
has given theoretical assent?