The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-07-31

proved successful in some cases IN
England with reference to gas, and
has been adopted in Boston. BY
this plan the authorized capitali-
cation is settled by official inyes-
tgation, and a standard rate Of diyi-
dend is fixed, which may be increased |
only when the price of gas has been
reduced, The subway contracts and
their operation in Boston and New
York are also entitled to full consid-
Grafton.
an case the management of public
utilities is left with private companies,
the public should retain in all cases |
an interest in the growth and profits
of the future, either by share of the
profits or a reduction of the charges, !
the latter being preferable as it insures
to the benefit of those who use the
utilities, While a share of the profits
benefits the taxpayers.
Our investigations teach us that no
municipal operation is likely to be
highly successful that does not pro-
vide for:
"First-An executive manager with
full responsibility, holding his posi-
ton during good behavior
Second Exclusion of political infiu-
| ence and personal favoritism from the
management of the undertaking.
"Thrd-separato Of the finances Of
the undertaking from those Of the rest
Of the city.
Fourth Exemption from the debt
| 1i1,oiF ~ An. papaccorxy I,o,,d for,
revenue producing utilities, which shall
be first charge upon the property
and revenues of such undertaking.
eve wish to bring to your consider
alton the danger here in the United
States of turning over these public
utilities to the present government of
some of our cities. Some, we know,
are well governed and the situation
on the whole seems to be improving,
but they are not up TO the government
of British cities, We found in England
and Scotland a high type of municipal
government, which is the result of
many years Of struggle and improve
ment. Business men seem to take a
pride in serving as city councillors or
aldermen, and the government of such
cities as Glasgow, Manchester, Bir-
mingham and others includes many of
the best citizens of the city These
conditions are distinctly favorable to
municipal operation.
In the United States, as is well
known, there are many cities not in
such a favorable condition. 1t is
charged that the political activity of
public service corporations has in many
instances been responsible for the I'M
willingness or inability of American
cities to secure higher type of public
service This charge we believe to be
true. However, there seems to be an
idea with many people that the mere
taking by the city government through
the very necessity of putting honest
and competent citizens in charge. While
an increase in the number and import
ance of municipal functions may have
) a tendency to induce men Of higher
type to become public officials, we dc
MOI believe that this Of itself will ae-
complish municipal reform. We are un.
able to recommend municipal owner
ship as political panacea
In many cases in the United States
the people have heedlessly given away
their rights and reserved no sufficient
power of control or regulation, and
we believe that corruption of public
servants has sprung, in large meas
ure, from this condition of things
: With the regulations that we have ad-
vised, with the publication of accounts
t and records and systematic control
thu danger of the corruption of public
officials Is very much reduced"
i The committee sums up its more i'm
i portant conclusions as follows.
public utilities whether In public OIL
T private hands, are best conducted un.
: de- system of legalized and regulat.
S ed monopoly.
r Public utilities in which the SAM
T tsry motive largely enters should bt
OK Grated by the public.
y "The success Of municipal operation
r of public utilities depends upon the ex
J istence in the city Of a high capacit,
p fol- municipal government.
= franchise grants to private corpor
Y atlons should be termnabe after a fix
ed period and meanwhile subject t
c purchase at a fair value.
u municipalities should have the pow
/ err to enter the field of municipal own
: ership upon popular vote under rea
s. sonable regulation.
" private companies operating publ
y utilities should be subject to publ
regulation and examination under
system of uniform records and &C
tt counts and of full publicity
3 On the general broad subject of mu
} nicipalization, the committee report
&c that the general expediency of eithe
" private or public ownership is a ques
= ton that must be determined by eac
IT municipality in the light of local con
II ditions. what may be possible in on
y locality may not be in another. 1
some cities the companies may so serv
u the public as to create no dlssatisfac
- ton, and nothing might be gained b.
= experimenting with municipal owner
q ship. Again, the government of on
: city may be good and capable of talk
- ing charge of Athese public utilities
NJ while in another it may be the reverse
In either case the people must remem
- be- that it requires a large class O
u able men as city officials to look afte
~ these matters They must also remem
Il Der that municipal ownership will ere
= ate a large class of employees who ma