Frostburg mining journal. [volume] (Frostburg, Md.) 1871-1913, 1907-01-12
A MENACE TO CITIES
Professor FeSSenden Sounds a
Note of Warning.
Cities Not Adapted to Operate Busi.
ness Enterprlscs-Loss of Capital
Through New Developments - The
Danger a Real One.

ness Enterprlscs-Loss of Capital
Through New Developments The
Danger a Real One.
1t is becoming more and more gen
orally recognized that undertakings
founded on the great public needs of
the highly organized society of modern
times should be controlled 10y society
Whether, having the power, il is ad
viSable that municipalities should uc-
tually engage in such undertakings or
whether they should merely maintain
their control as it has been APPLY put
through their powers as a landlord. is
a matter which will he determined by
the municipalities from political, social
and economic as well as engineering
considerations
Considering the question from its en-
ginccring side alone, it is found that
from the very essential nature of the
matter only Il certain class of engineer
ing undertakings can he efficiently and
properly operated Ivy states or mumici
paliticS. 1t is very important that this
limitation should he recognized rs
where the limitation has been over
stepped it has resulted in heavy tinHm-
cial losses To the governing bodies i'm
mcdiately concerned, it has seriously
checked development in engineering
lines, and these results have in ConSe-
qucncc afforded Il strong argument to
those opposed to municipal operation
of public utilities.
trln tbnt uutlnI Stuta ar InIniri-
pal operation some minor and sporadic
developments may be expected. but
nothing of general or important char
aCtCr. Important developments gen
orally come only from the hands OF in
diyidualS or bodies responsible only t.
themselves and provided with the iii
Centivc of IL large profit. The climina-
tion of self responsibility and incentive
would inevitably produce Il condition
in Industrial and scientific develop
ment analoS Sous to the dark ages
1t is to be noted that this conclusion
is derived from engineering cDnsidcra-
touS alone and does not include any
consideration from the political, social
or economic side There may it is
coucrivnblr, hc POLITICAL social and
economic considerations which tend to
affect this limitation. Considered, how
ever, from the engineering standpoint
alone there can be no question but
that the field of state and municipal
operation should be limited to under
takingS in which there is no immediate
prospect of or need for improved
method.
\ danger which is always aSSoCiat-
ed with the ownership of industrial
undertakings is that the capital invest
ed may | &" lost through the develop
ment of new and cheaper methods and
processes The extent to which indus
trial machinery of certain types is rem
dercd obsolete by new improvements
is not always realized. The writer is
personally acquainted with one street
car railroad plant in which the entire
electrical equipment of the power
house was thrown out and replaced
with improved machinery four times
within period of ten years. The Car
negic company is reported, correctly. it
is believed, to have SCrappcd ON one
occasion more than Sl.OOO.OOO worth
of new machinery which had never
been used.
This has already become Il serious
matter for many municipalities which
have engaged in undertakings lying
outside of the engineering limits de
fined above. Many of these municipal
tiles installed plants for the produc-
ton OF electric light at Il time prior to
=
In generating and distributing electric
ity. and rs these municipalities in com
mon with most municipalities made no
proper allowance for depreciation the
capital Invested has been practically
triC light to the consumer is much
higher than it is in other places equip
ped with later and more economical
types of machinery In addition heavy
and expensive repairs have been neccS-
sary and the taxes cOrrcSpOndmGly in
creased. This has reacted upon the
municipalities, since the heavy rates
have caused manufacturers to move
away to other towns, and this again
has still further increased the burden
upon those remaining. There are al
ready Indications that considerable
number of these municipalities which
have engaged in improper undertakings
are entering upon a period of financial
ditiiculty,--k. \. FeSscnden.