The Boise citizen. (Boise, Idaho) 1906-1910, 1907-05-17
MUNICIPAL OWNERSHIP
PROBLEMS AS TO METHODS OF CONDUCTING
PUBLIC UTILITIES.

The Outlook publishes dissertation nlnclpa ownership
which of general interest defining the problem although the
application solely conditions in New York city fol-
lows
The problem of municipal ownership may be stated thus:
What should be the relation of modern municipal corporation
those public utilities which the life OF the corporation de-
pends? 1t is complex problem and any simple to be
upon with suspicion There least four possible rea
ons and all four relations contemporaneous main
tanned in the municipality.
The public utility may be owned and operated exclusively
private enterprise public may depend either compe
upon government regulation just rates and eff
service The plants for lighting New York City thus
privately operated and competition having failed
either fair prices good service regulation now being
attempted by the legislature and the company has appealed the
courts prevent such legislative regulation.
The public utility may privately owned and operated under
franchise be renewed periodically for example twenty
five years Under this system the real estate of the public utility
caon may be said to be practically by the municipality
but leased under permanent lease the corporation Thus the
Pennsylvania railroad has obtained permanent franchise to enter
the city New York through tunnel under the North River
1t pays what equivalent rental for this privilege but this
rental by the terms of the franchise modified from time
by agreement between the parties they cannot agree by
arbitration somewhat similar large blocks of real
estate in New City owned by and leased
long leases with provision for renewal and adjustment OF the
rental
The city may absolutely the real estate required for the pub
lie utility for of to corporation for pur
poses administration Thus the city of New York owns the
Subway and leases the marlborough Rapid Transit company
AT the end of fifty years this expires and the will be free
either to operate Subway itself lease the Subway to some
other corporation the lease to the nterborough Rapid
Transit company.
Finally the municipality may both and operate Thus New
York C is building at the present great aqueduct bring
water into the city neigborhood of the Cas This
aq1educt belong to the city, they are managed
by the city, and the city charges by water tax every mousse
holder for the water which he uses
Thus there are recognized relationships between the m1
ncpat and the public utility. They may be respectively deg
private ownership permanent lease temporary lease pub
lie ownership and operation The real problem of municipal own
ersp this Is public ownership and operation desrabe
IF So what The general principle has been laid down
it is quoted with approval by Mr. Porter in his recent book on
"The Dangers Municipal Ownershpthat as an abstract prop
oton we believe that government either national state or
municipal should embark business than be well conducted
b private enterprise We may accompany this with another gen
era principle The people through their whether ma
tona state municipal have right to embark any business
n,b in its nature and which the welfare of the COM
% is depending provided that they do better and cheaper
for themselves than they can hire private corporation do it.
Bt no such general statements throw much light the general
prbe The question remains What business be better
conducted public ends by private enterprise and what business
can better be conducted by public officials?
We are attempting here answer this question we desire
make it clear readers that is really several questions
and that no categorical will suffice 1t IS for example
clear that the municipality could not build the tunnel under the
North River the great station for the Pennsylvania
railroad and that it adanageous operate that railway
from Jersey CITY to the Manhattan Island 1t could not at
ford spend money for it could not recop itself out OF the
local traffic the expense of such construction will be distributed
over and paid the profits of the entire railway running across
third of the continent equally evident that the Pennsylvania
Railroad company could afford invest hundred millions
dollars and surrender its property at the END
of fifty wears Such an enterprise this impossible basis
of municipal ownership and operations impossible on basis
Of temporary lease franchise possible only the basis
of permanent franchise and the only protection of the rights
Of the people possible provision for periodical revauaton Of the
franchise consequent rental to be paid for to the city
1t that the method which has been mt upon 1or
Continued Page A.