The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-07-29
MONOPOLIES
CIVIC FEDERATION MAKES
REPORT.
Says Public Utilities Are Best Conducted
Under a System of Regulated Monop-
olies-0ther Conclusions.

NEW YORK, July 2s.-The final report
of the conclusion of the committee on in
vestigation of the National Civic Fedora
ton Commission on Public Ownership ana
Operation vas given to the public yester-
day. This committee, of which Melville f.
ingalls,, chairman of the board of directors
of the Big Four Railroad, as chairman,
made a thorough investigation OF munic-
ipal and private workings of gas, electrlc
light, water and street railway plants
both In the United States and England.
Thu report says:
1t Is difficult to give positive answers OF
universal application to the questions arts
ing as TO the success or failure OF munlc-
ipal ownership as compared with prlVdie
ownership. The local conditions afectinB
particular plants are in many cases SO pc
culiar as to make a satisfactory eomparl-
son impossible. and 1t is very dimcuit 70
estimate the allowance that should be
for these local conditions. For in
stance. IN making deductions from the
financial conditions Of Wheeling. as az
fected by its gas plant as p t 81
private plants, allow; nee must be mace
for the presence of natural. gas IN Wheei-
ing. Again. In comparing the pubic Mater
works of Syracuse with the private water
works Of indianapolis from the point OF
view Of the success or failure OF munlclpai
operation. geographical conditions musl DC
taken Into consideration. The situation az
Syracuse is extremely favorable 10 mo
establishment of an efficient plant Win
comparatively little effort on the part OF
its management. Al indianapolis the con
ditions are unfavorable. In Syracuse the
water flows to the city by gravity; IN In
dianayolis it must be pumped. 80 we
might go through the various cities mere
and abroad that have been visited ana
show that the results were affected IA
vorably or unfavorably by special conol-
lions applicable to each city.
Further. the dificulty of reaching salts
factory results by the comparative method
is not confined to special or local. condi-
lions. 1t is true, as well, of much broader
questions, Thus any attempt to compare
municipal with private electric light plants
In the United States would be Ruthless, II
allowance were not made for the fact that
in most cases such municipal plants are
confined to street lighting and may not do
commercial business. Allowance must be
made also for the fact that many munich
the face of unsympathic pubic opinion.
Again, in England consideration must be
given to the fact that the municipal cleo
trio light and street railway plants have
permanent rights, while the rights of the
private companies operating these particu-
lar utilities are limited as to the length of
their existence, many street railway fran
they were granted.
Finally. not only must 1t be borne in
mind that the social and political con-
ollAOilC WhtCu CididCltitL luc IWO
find expression in their private
and public systems. but we must consider
the difference in the nature of the two
peoples which causes them to adopt diff
ferent ideas and views as to the expedi-
ency of certain things. In other words.
a measure of success in the municipal
management of public utilities in England
should not be regarded as necessarily in
dicating that the municipal management
OF the same utilities IN this country would
be ollowed by a Ike measure OF success;
There are some general principles which
we wish to present as practically the
unanimous sentiment of our committee.
First, we wish to emphasize the fact that
the public utilities are so constituted that
i by Is co lmposfiole TT The sna% 70 they Us r muat Be
controlled and regulated by the govern
ment; or they must be left to do as they
please; or they must be operated by the
public. There is no other course. None
Of us Is in favor of leaving them to their
own will. and the question is whether 1t
is ql better .t to rel nsrtIcS Of to re ope5ate w,,v the
financial results from private or public
operation should be different II the condi-
tons are the same. In eaen case IT Is q
question of the proper man IL charge or
the business and Of local conditions;
We are of the opinion that II public util-
ity which concerns the health of the citi-
zens should not be left to individuals,
where the temptation of profit might pro-
dLce disastrous results, and. therefore,, 1t
is our Judgment that undertakings IN
which the sanitary motive largely enters
should be operated by the public.
We have come to the conclusion that
municipal ownership of public utilities
should not be extended to revenue-produc-
ing industries which do not involve the
public health, the public safety, public
transportation or the permanent ccupa
ton of public streets or grounds, and that
municipal operation should not be under
taken solely for profit.
The committee sums up its more import
ant conclusions as follows
Public utilities. whether in public or
private hands. are best conducted under a
system of legalized and regulated monop-
oily.
Public utilities in which the sanitary mo-
tive largely enters should be operated by
the public.
The success of municipal operation Of
public utilities depends upon the existence
In the city of a high capacity for municipal
government.
Franchise grants to private corporations
should be terminab1e after a 1xed period
and meanwhile subject to purchase at a
fair value.
Municipalities should have the power to
enter the field of municipal ownership upon
popular vote under regulations.
Private companies operating public utili-
ties should be subject to public regulation
and examination under a system of uni
form records and accounts and of full
publicity.