The Cairo bulletin., 1907-07-29

meanwhile cities should have the
right to purchase the. property for
operation lease or sale, paying its
fair value.
In case the management Of pub
lie utilities is left with private COM
panies. the public should retain in all
cases an interest In the growth and
profits of the future, either by a share
of the profits or a reduction Of the
charges. the latter being preferable
IS ii inures to the benefit OF those
who use the Utilities, while a share of
the profits benefits the taxpayers.
Our investigations teach us thai
no municipal operation is likely to be
highly successful that does not pro
vide for
@F'irst--An executive manager with
full responsibility, holding his posi-
ton during good behavior.
Second Exclusion Of political in
fsuence and personal favoritism from
the management Of the undertaking.
Third Separation OF the fnahces
Of the undertaking from those Of the
rst Of the city.
Fourth Exemption from the debt
limit OF the necessary bond issues for
revenue producing utilities. which
shall be first charge upon the prop,
erty and revenues of such undertake
ing,
We wish to bling to your consid-
Grafton the danger here in the United
States Of turning over these public
utilities to the present government
of some of our cities. Some. we know
are well governed and the situation
on the whole seems to be improve
ing. bui they are not up to the gov
eminent of British cities. In the
United States. as is well known there
are many cities not in such favor
able condition. II is charged that
the political activity of public ser
vice corporations has in many in
stances been responsible for the UNI
willingness or inability of American
cities 70 secure a higher type OF pub
lie service. This charge we believe
10 be true. However. there seems 20
be an idea with many people that the
mere taking by the city of all its pub
lie utilities for municipal operation
will al once result in ideal municipal
government through the very neces-
sity OF putting honest and competent
citizens in charge. While an increase
IN the number and Importance OF mu-
nicipal functions may have tendency
to induce men Of higher type to be
come public officials. We do not be-
iieye that this of itself will accom-
plish municipal reform. We are IN
able 10 recommend municipal owner
ship as a political panacea.
In many cases in The United States
the people have heedlessly given
away their rights and reserved no SUI.
ficient power of control or regulation.
and We believe that corruption Of pub
JIG servants has sprung. in large
measure. from this condition of
things. With the regulations that we
have advised. with the publication Of
accounts and records and systematic
control. the danger OF the corruption
OF public officials is very much re-
duced."
The committee sums up Us more
important conclusions as follows:
Public utilities. whether in public
or private hands. are best conducted
under 2 system Of legalized and reg
ulated monopoly.
Public utilities IN which the sani |
iary motive largely enters should be |
operated by the public.
The success Of municipal opera
ton Of public utilities depends upon
the existence in the city Of high I
capacity for municipal government.
Franchise grants to private cor
Dorations should be ierminable after
a fixed period and meanwhile subject |
to purchase At a fair value.
municipalities should have the
power 80 enter the field OF municipal
ownership upon popular vote under
regulations.
Ffifzie onmpanlss operating pub