Los Angeles herald., 1907-07-15
REPORT ON
UTILITIES
EXPERTS EXAMINE GAS
PLANTS
OPINIONS WIDELY DIVERGE AS
TO RESULTS
Practical Men Visit Public and Private
Institutions and Present Con-
cIusions for Benefit of
the People
By Associated Press.


pleted their reports, and a critical review
of the results of their examinations in
the United States was made public TO-DAY
by the commission. This review Is by
committee of four appointed by the COM
mission. Two of the writer's, Walton
Clark, vice president Of the United Gas
Improvement company of Philadelphia,
and Charles L. Edgar. president of the
Edison Electric and Illuminating COM
pany, of Boston, criticise severely the mu-
nicipal plants examined. while two other
writer's, Prof. Frank Parsons Of Boston,
president of the National Public owner
ship league. and Edward w. Bemis, su-
perintendent of the Cleveland, o., water
works, find much to favor in municipal
plants which were investigated.
Messrs. Clark and Edgar concur in the
statement that the inquiry of the COM
mittee, both from the standpoint Of Brit
ish and American experience, more espe-
cially the latter, has shown that where
municipal ownership has been removed
from the realm of philosophic discussion
and put to the test of actual experience
it has failed ingloriously." The belief
is expressed by these gentlemen that the
few enthusiasts who still advocate mu-
nicipal ownership will soon be convinced
by the logic of events, and turning their
energies to other things will through them
their fellows" Professor Parsons and
Mr.. Bemis, on the other hand, take
most hopeful view as to municipalization,
declaring that the failures of municipal
ownership are insignificant compared to
the failures of private ownership, either
in number or Importance. 1T is not pub
lie ownership, but private ownership"
Professor Parsons says, that is response
BILE for our periodic crises and the ruin OF
AlNa fVNno NJ
American cities to manage business af-
fairs, many of them, he says, have clearly
proved their fitness, and the rest can be
made fit "It is not impossible" he adds,
that the elimination of the public serv-
ice corporations through public owner
ship is one of the things that would do
more to help along the process of making
our cities fit"
Review by Edgar and Clark
Mr.. Edgar and Mr. Clark agree in set
ting forth numerous objections to munich
palization, a very important one being
that in several British cities which have
tried public ownership it has been found
that the organization of municipal work
men constitutes a serious threat against
the municipality itself, and as result
the disfranchisement of city employees is
being seriously considered in England.
to organize, under extended city control
of public utilities, the writer's declare the
remaining voters would find themselves
beneath "a tyranny of democracy which
is no less calling to the individual op-
pressed and no less detrimental to the
welfare of the state than is the tyranny
of a despot." The remedy proposed in
England disfranchisement is declared to
be "unthinkable" in the United States.
1,fV nf MI n
ties, it is declared, those in control of the
government are submitted to continuous
temptations; first through the opportunity
to build up political machine, with the
CITY employe as a basis, and second,
Through the opportunity to unduly favor
contractors, with the expectation of either
financial or political benefit to themselves.
Gas Undertakings
Three American gas plants were exam"
ined by the investigating committee and
experts. These were at Wheeling, where
the plant is operated by the city, and At
lanta and Norfolk, where there is private
ownership and operation. AS to the price
charged the consumers it was found to be
70 cents per 1000 feet net at Washington,
81 net at Atlanta and 81 net at Norfolk,
the municipal plant thus selling at the
lowest price To offset this, however,
Messrs. Edgar and Clark point out that In
Atlanta there is free installation of SER
vice, at Norfolk partially free installation,
while at Wheeling charge is made for the
service pipe from the curb to the meter
and for the setting of the meter.
American Electricity
Four of the best known American NUM-
cipal electric plants, those of Chicago, De-
troit, South Norwalk, Conn, and Allie
gheny, Pa. were examined by the com
mission and the experts. Of these South
Norwalk is the only one that does COM
mercial lighting. AS to the cost of opera
ton of these plants, the Chicago plant is
cited to show that including items for de-
probation, interest, taxes, proportion of
salary, insurance and water there is a
loss to the city, based on simple interest
on the amount paid, of $3.50 per lamp per
year, or a total of s2s4,202 annually, com
pared with what the cost would be if
service were taken from a private COM
pany. Computed with compound interest
on the amount paid, the loss is S11.07 per
lamp, or s469.H7 per year. These figures
are based on statements submitted by the
commissions expert accountants and do
not agree with the estimates of the city
electric department, which show a saving
to the city.
Various Municipal Plants
OF Chicago's four municipal electric
plants, three are declared to be of obso-
lete type, while the fourth is not properly
constructed for economical operation. The
stations are scattered through the city
without system and are very poorly To-
Gated. The plants use 1,400 100000 gallons
of city water (minimum) for which no
charge is made. OF the 600 lamps in use
also are of a type which has been gener-
ally discarded throughout the country.
On the subject of operating efficiency, it
is set forth that economical operation in
Allegheny is much hindered by the un-
necessary number of employees. Six or
eight of the force could be dismissed, re-
ducing the payroll 10 to is per cent, and
"the half dozen extra laborers often put
on for political purposes at election time
could be dispensed with changes which
would add to the efficiency of the service
as well as lowering its cost" In Chicago
the civil service rules are declared to be
a source of inefficiency Men who have
become inefficient are held in responsible
positions longer than they should be and
the best men are often prevented from be-
ing advanced in rank or chosen from the
outside because of lack of the special
knowledge required by the civil service
examiners.
In favoring municipal ownership Pro-