Frostburg mining journal. [volume] (Frostburg, Md.) 1871-1913, 1908-12-19

Private Operation the True Solution.
BY HU3ERT s. WYNKOOP, NJ. t.
The pendulum has swung from
npathy toward public utility corpora
tionS to an intense interest In curbing
them even to the extent of taking
over their functions to be admins
tered by the municipality During the
past few years Il mass of argument
and testimony on this question has
been contributed by publicistS, con
servative and otherwise. and by dcma-
gogucs, ignorant and othcrWi"c. TO
this | add my quota, having had thir-
teen years experience as Il municipal
engineer in close contact with the en-
ginccrs of the public utility corpora
tons
"PuDlic utilities" is Il delightfully."-
satisfying term on account of its
vagucncss, its definition depending
largely upon the state of mind of the
populacc. For this reason it appeals to
every one, be he interested in good
government or bad, and it includes
water gas and electric works, street
railways. tclcgraphS. telephones, fer
ries, push carts, markets, banks and
even lotteries according to the time
and place.
Whatever may be the verdict as to
the more doubtful activities, it seems
to be pretty well agreed that the sup
plying of water, gas and electricity,
street railway transportation and fer
riagc are public utilities and therefore
require public ''rcguation" or own
ership."
In this all of the people stand sub
stantially on one platform an ade-
quatc return for franchise privileges
and a good service for fair price.
But as to ways and means opinions
divcrgc widely.
Briefly as this platform may be stat
ed, its fulfilment requires an elaborate
knowledge of So, ial economies, en-
ginccring, finance, law and local con-
ditions. The solution of the problem
may develop along one of three lines:
|. Regulation.
II. Municipal ownership and private
operation.
III. Municipal ownership and muni-
cipal operation
l.-ReeuIation.
When community is the fortunate
poSSeSSor of regulating body com
posed of men of Il high honor and in
telligcnCc the problem is solved for all
those who are not seeking personal ag-
grandizemcnt In Massachusetts pub
lie utility stocks have become or are
becoming Il safe investment.
Theoretically regulation offers the
maximum of result with the minimum
of disturbance of existing conditions.
Under wise laws, therefore, and in the
hands of able men it holds itself less
open to adverse criticism than either
of the other methods
The corporations, too, are generally
In favor of some kind of regulation.
In the present distrust of all corpora
tionS the intiamcd mind gives no ere
dence to any statement that may cma-
nate from 4 corporation, although the
same mind will confidently accept an
identical statement if issued from the
office of Il regulating commission
which has proved itself trustworthy.
II.-MunicipaI Ownership and Private
Operation.
Next after regulation comes the plan
of serving the franchise rights by the
city itself, which undertakes its own
construction and rents out the right to
operate. The rentals provide an ade- .
to fnr Ln of thn nul,lip
domain, and the terms of the lease sup
ply the desired features of regulation
good service at Il fair price.
1t is claimed that this method rctardS
development by preventing speculative
construction, as the city must continc .
Its energies to the so called legitimate .
finance ON the other hand, it is ar /
gued, the city ought to be able to in
dulge in speculative construction when .
ever the public welfare demands it.
The rapid transit subway in New
York affords a good opportunity for
studying the practical working of this
plan.
llI.-MunicipaI Ownership and Munic,
pal Operation.
mere are tnOSe, however, VINO eau /
not rest content with halfway meas |.
ures. To these and to the politicians .
the idea of municipal operation is an .
appealing one. They point to the sue /.
cessful conduct of waterworks by the .
city and argue thcrefrom that Il mu- .
nicipal street railway, for instance, /
would be Just as successful. Perhaps .
It would be.
But success may be attained in Il va
riety of ways, and the best success is .
that gained through economy \ city .
might furnish the pureSt of water, am .
pie In quantity ana sufficient In pres
sure, and yet an adequately regulated .
corporation would probably do this .
very thing more successfully because |
at lower rates.
Admitting the payment of the pre-
vailing rate of wages ana accepting .
the eight hour law in both cases ard .
assuming adequate regulation of the .
corporation, 1t would seem to be .
mere matter of arithmetic to prove
why the municipality should not, as .
rule, undertake the operation Of its .
own utilities.
Suppose we consider the pros and
cons:
City Operation.
Methods embarrassed by law
Methods antiquated
Methods nOndirect; to Increase the /