Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-07-15

~tention is given to the purely financial
side of the question. Dollars n
cents are not to be neglected" he says
but life. liberty, justice, virtue and
intelligence-the whole character
product and social product of our in
stitutions-are Of greater moment than
their money product" Taking up finan-
ciai results, Professor Parsons gives IT.
as his view that the m~unieipalized
plants are more economical. Broadly
speaking he says. recognizing that
there are exceptions to all rules. the
facts show that municipal plants tend
to make lower prices to ordinary con-
sumcrs than private plants in the same
country working under similar condi-
tiOnS, and they do not grant electric
rebates or other favors by secret
agreement with large users, as is not
infrequently the case with the larger
companies. In the comparatively few
cases where municipal systems do not
make low charges the public still gees
the benefit that under private opera
ton go to the stockholders, for the
profits Of the public plants are used
to improve the service, pay off thu
capital. relieve taxation or accomplish
some other public purpose. Municipal
plants are found as a rule to have
a lower capitalization tina private
plants, both in relation to output and
in relation to assets"
The Review by Mr.. Bemis.
Mr.. Bemis declares that the over
capitalization and high earnings
thereon of private companies and the
demoralizing relations often existing
between private companies and city
governments are the two great eason
for the municipal movement.
Mr.. Bemis opens his detailed review
Of the experts reports with an analy-
sis of the charges for water. he finding
the rates to be more favorable to the
consumer In the municipal plants, with
especial commentator for the low me-
ter rates at Cleveland. He also de-
clares that In spite of great reductions
Of rates in Syracuse going from private
to municipal ownership, and the phe-
nomenally low charges for all resi-
dence consumers under the present
meter system in Cleveland, and the
moderate charges also in. Chicago. the
financial results Of municipal owner
ship, from the standpoint Of the COM
munity M the taxpayer, are far bet
ter In :he three municipal plants than
IN the case Of the W private compan-
les studied.
Syracuse Is found to have the great
est mileage of water mains per 100
miles of streets and Indianapolis and
Chicago the smallest. The private
companies, he points out also. have
the smaller fire protection, Indianapo-
lis having but forty-nine fire hydrants
per mile of street, New Haven fifty,
while Chicago. the lowest I'm this re.
spect of the municipal plants exam
med. has seven and three-tenths.
Cleveland eleven and eight-tenths, AMI
Syracuse. eleven and two-tenths.
Syracuse is the only one of three
municipal water works studied where
the spells system prevails.
The general popularity and success
of municipal ownership In Syracuse
have doubtless been somewhat les
sened. but not seriously impaired, by
the spells system. In Chicago and
Cleveland there Is practically none OF
the spells system, n in Cleveland the
head Of the department has ever
greater power than in most OF the
British plants. This Cleveland plant.
consciously borrowed from English ex-
amples which have been personally in
Vestigated by the mayor aud the head
Of the water department, shows the
possibility Of profting in America from
the fruits of European experience
This is an apparently self-evldent
proposition, but n which some deny.
Gas Works.
Richmond, Va. is cited by Mr..
Bcmis as a city where a municipal gas
plant has not only reduced prices, but
has also turned a profit into the city
treasury. nIhe city authorities de
Clined, howl YER to permit a fun in
~NostigatiOn 10 be made, saying that a
recent Investigation had been very I'M
fair. Enough has been learned o.
show that the Richmond plant was
free from the spOils system and from
graft. and that the workmen were
white men who were paid nearly twice
as high wages as were the negro labor
ers In the privately owned plants at
Atlanta.
Mr.. Bcmis' evlew of the PhiladeI-
phia gas situation Is in marked con-
trast 10 that of Mcssrs. Edgar apd
Z lAaNa NIa Aaaa. ANaA L.H-H-. N
Rowe as authority on the subject 60
show that when direct municipal op-
Grafton began. December 81, 1856. the
plant had been entirely paid for out
of profits. with the exception of ST..
500. 94S. After including the expenses
81 collection. maintenance Of street
lamps. etc, borne by other city de-
partments, the not cash turned into the
city treasury during the years 1855
1897 inclusive was 81. g37.719.56. To
this should be added the amount spent
for extensions Of the works. mains and
services. which Is easily computed
from Professor Rowe's data at So
3f4.3i692.. This would make n total
Of apparent profit during the eleven
years Of municipal operation Of 81
2S.036.iS. Since this profit was COM
putcd after the operating expenses.
and the expenditures for repairs OF s
cents TO 10 cents per 1000 feet a year.
the depreciation could not have eaten
up any large part of this apparent
proht.
The price OF gas was reduced from
$50 90 81 at the close of 1898. At
first there were deficits. but these rap
idly declined. According TO Professor
Rowe. there was a net profit during
the eleven months of city operation In
1897 OF Sl23.915. 06. after paying the
expenses incurred on account of gas
in other lily departments.
by reason OF municipal ownership.
Philadelphia was able TO lease TO tho
United Gas Improvement company
most valuable street mains. land and
holders, tn say nothing Of surh por-
tions of lfs other plant as with mod
crate repairs could be put In good
shape. By asking for no entail o.
taNcs on his plant which had been
paid for out OF the profits Of city own
crShip. Philadelphia was able to Sc
cure q lease under which 10 received
10 cents per 1000 cubic feet Of an gas
sold 90 private during the
first ten wears % the lease. IS cents I
during The next i've years beginning
next January. 20 cents from January
1. 1913 Coz January I. 1918. and IS
cents Tor The remaining ten years. The
city also receives free OF charge 400.-
00O. 0e0 feet of gas yearly for street
lamps and public buildings. and tha
maintenance of those street lamps 10y