New-York tribune., 1907-07-07
MUNICIPAL OWNERSHIP FAILURES.
Many Indiana Cities Have Found the Ex-
pertinent q Mighty Costly One

Indianapolis. June - (Specan-Twelve Indiana
cities, roclcred among the progressive in the
state. have been wrestling with municipal owner
ship for periods ranging from five to ten years.
and The cumulative result as finally SUMMARIZED
shows thar they may be divided into three classes
in respect TO causes that have operated to make
the experiments obnoxious TO many Of the tax
payers.
The first of these causes IS. possibly incidental
10 the form Of municipal government under which
the cities operate, for the Plants have been made
the prey OF the political spokesman In both parties.
and inccnpcteTcy OF management has brought
about waste and generally increased burden OF
taxation.
The second and most humlllatlng cause. which.
however. hns been the exception and not the rule
In the government of the cities. is grating in
small things taking rakeons for favors. permit
ting bills OF men who have pulls" to run in
that could not possibly burn, selling or giving
away bye-products of the plants and not account
ing 20 the cities, and keeping the books in such
a buugling and unbusinessl!ke way. either pur-
posely or through ignorance. to make It impos-
sbe 10 trace errors TO the persons responsible for
The third and most discouraging factor is in
competency ana a seeming inability 10 adopt the
methods In the management OF municipal utilities
that the prudent man would require in his own
BUSINESS. Frequent changes OF employees account
for this 4 limited extent but the main reason
seems lie IN the fact that the jor!ty Of per
sons employed IN such industries secure employ
ment through some man OF influence. with the
powers that be- and looks to that source. rather
than to a record OF efficiency for pernlan nency
his job.
abuses where they have been found 70 exist. but in
the main the refoTmers have fallen into some other
error Of management when iutrusted with power,
and il has come TO lie regarded accompany
ing necessary evl! or municipal ownership tnnt
some persons must profit personally the expense
Of the city Three cities have recently permanently
abandoned the effort 10 their plants two
others have leased their municipal utilities for d
term OF years because unable TO raise money for
repairs, and throughout the state there - n grow
ing autagOnism TO such ventures.
The constitution cf Indiana fixes a limit Of . per
cent TO the Indebtedness Of municipal corporations
and beyond this they cannot 60. When tho rush
for municipal plants began nearly all the cities
Were dangerously this limit and some, having
passed Il, purchased plants the instalment plan
came due. As a rule these plants down
and from the first repairs had to be made. as at
Washington and Peru. Then, again, those economic
devices that private capital is always quick 10
take advantage Of out OF reach of these cities
because Of the scarcity Of money, and the service
by comparison poor and tho patrons constantly
becoming dissatisfied.
Some of the Developments IN connection with
municipal ownership in Indiana would he very
amusing II not for the serious consequences
that flow from them 20 that already overbtTdened
individual-the taxpayer. For instance, when the
new administration installed Anderson the
discovery was made that the city carrying