Arizona republican., 1907-07-19
OWNERSHIP
IN ENGLAND
The National Civic Fedora.
(. tiOn'S Investigation
Two ideas Presented by
Different Groups of the
Investigators.

New York, July 1S.-Municipal op-
Grafton of public utilities in Great
as observed by a committee
of experts sent abroad last year by the
National Civic Federation, is treated
at length in a series of reviews by
members of the committee, which were
made public today. These reviews of
the experts reports. written by Milo
r. Maltbie, Walton Clark. vice presi-
dent Of the United Gas Improvement
company Of Philadelphia, and Charles
L. Edgar, president of the Edison
Electric and Illuminating company Of
Boston, are divided in opinion as to
the success of the undertakings as a
whole. Mr.. Maltbie is one of the
members of the newly created public
service commission for Greater New
York This body has the widest pow
ers and the greatest responsibilities OF
anv commission to which the regula-
tion Of corporations has been entrust-
ed, up to this time. In the United
States. Mr.. Maltbie spent six months
in Great Britain supervising the work
Of the expert accountants and engin-
eers. He says that municipal opera
tion of public utilities in Great Brit
ain has passed the experimental stage.
He declares that the gas and electric
plants operated by municipalities,
give a superior service at
a relatively lower cost, as compared
with the privately owned companies.
This condition he finds to be due
to the higher rate of in
terest and profit and the greater
amount of liabilities Of the private
BY far the most interest
ing part of Mr.. Maltbie's conclusion
however is that actual ownership and
operation is not necessary for the sue
cess of the municipal ownership idea
He says that the power TO operate. II
necessary or desirable. in many in
stances, has been as effective as ac-
tual operation-that the mere fact that
a city has the power to step in and
operate an undertaking itself often
makes the exercise Of this power un-
necessary. TT has been found in
Great Britain that no system OF con-
troll or regulation is complete without
the power in the hands Of the NUM-
cipa,ities to purchase; and operate.
saws Mr. Maitbfe. "ff one company
NAV be succeeded only by another or
only hedged about by restrictions.
there come times when action. not re-
preston. is wanted. and then no rem
edy is adequate unless 1t be the power
of the city to step in and operate the
itself But the mere fact
that it has the power often makes
its exercise unnecessary. and what the
Britisher desires is not the universal
adoption of some method of produc-
ing results, but the results themselves.
IN the following analysis of the re-
suits Of public and private manage
ment il should be borne in mind that
such a comparison is not compari-
son of municipal with private opera
tion subject to no restraining force,
but with private operation under sys-
TENS of regulation which are claimed
to be the best which have yet been
devised in Great Britain and with
private management that has been
chastened and bettered by the fear OF
public condemnation. by the restraint
of government regulation and the pos
sibility of municipalization. Thus the
low price at which gas is supplied oy
the Sheffield company is largely the
result of the avowed determination OF
the men in control to head off munlc-
II municipal operation mad
not been a possible alternative loom
ing above the horizon, it is likely that
even now the consumers would be
paying very much higher rates ana
the present low rates so far as tney
are due to the desire to prevent mu-
nicipal operation should be counted as
one of its indirect results.
Messrs. Edgar and Clark In closing
their review summarize their opinions
as follows:
THE efforts of the National CIVIC
Federation have resulted in a commits
sion of Americans. whose first inter-
est in this investigation, as in all else,
is to do what they may to preserve
and continue the American idea ana
American institutions, believing that
the high state of civilization and OF
in America justify the
American idea and the American
method. and place the borden OF proof
heavily upon those who would say an
other idea and another method would
result in improvement in the condi-
tion of the people.
"Our investigation has determined
with certainty many heretofore mooted
questions. 1t indicates the probably
correct answers to other mooted ques-
tions. Where the facts are clear and
the conclusion evident our task has
been to summarize and indicate.
where there is remaining uncertainty
as to facts. and conclusions are not
evident, we have made an effort 10