Polk County observer. (Monmouth, Polk County, Or.) 1888-1927, 1909-05-18
FACTS VERSUS THEORY.

Dearly bought experience is teacl
ing many cities and towns that nun
eipal ownership OF public utilities
one thing in theory and quite anothe
thing in practice. One seldom pick
up a newspaper nowadays withou
reading that some city has tried mum
cipal ownership of lighting or wate
plants and found it undesirable. th
failure in most instances being accom-
panied BY disastrous fnancia
results. Municipal ownership is al
idealistic theory. 1t looks we'll OF
paper; it appeals to many taxpayers
on first thought, as the only correct
method of handling public utilities
But when it is put into actual practice,
the results are usually far short OF all
expectations Contributing to these
results are many causes. Politics and
fayoritism creep into the game; COM
petent men who do not happen to be
good fellows" as the term goes, are
discharged, only to be replaced by
incompetent managers or workmen
who have friendly or political pull"
with the powers that be. Salaries out
of all proportion to the service rem
dered are voted to these employees !;
the revenue derived from the plants is
squandered or lily managed, and the
plants themselves are neglected,
either through indifference or a lack
of money to make any necessary i'm
provements or extensions. There are
probably few instances in which all OF
these causes combine to produce dis
aster, but there is scarcely a single
failure in which one or more of them
is not found. 1t will be argued that
such state Of affairs should not be
permitted to exist In any city, but the
fact remains that it does exist In a
very large proportion of the municipal
tiles owning and operating their water
and lighting plants.
A few years ago the thriving town
of Newberg was pointed to by all
advocates of municipal ownership as
an example Of the success of their
theory. 1t was claimed that the water
plant was not only paying all running
expenses and interest charges, but
that it was also yielding an additional
revenue almost sufficient to pay all
running expenses of the city. Editor
Woodward, OF the Graphic, a loyal
friend to his town and a leader in
every movement for improvement,
was at that time apparently an advo-
cate OF municipal ownership, for his
paper contained many editorials tell
ng of the success Of the plan. 1t is
evident, however, that a change has
'ome about, and that the town, in
stead Of finding its water plant
'ource, OF profit, is beginning to fear
hat it will become a public burden.
IN agitation for the purchase OF the
electric light plant by the town is Just ,
low being vigorously opposed by the
iraphic, which cautions its people
against further tampering with public
10 recent article, Editor ,
Woodward points out that during the
years operation OF the gravity
water plant, the town has paid only ,
$4,000 on the water bonds, or less than ,
400 year. Pointing to the abandon. ,
nent OF municipal ownership by the ,
own OF Hillsboro, the Graphic says
"Anent the recent discussion of the !,
question Of municipal ownership and g
operation OF the lighting system, it
nay not be out of the way to state
hat our neighbors on the north side
II the Chehalem mountain at Hills ,
'oro have recently disposed of their
lighting plant after having an
unsatisfactory experience with it,
overing period OF five years.
THE city purchased the plant Of
V. Gates, the party who Installed
t, for $4,000, and after having
expended about $26,5OO more on the
liant, it has been sold for SIS, 500, or ,
otal loss to the city OF about S35, 900.
md this in the face Of the fact that .
lr. Gates made IA per cent on his :
Investment the last year he operated ;
+ while his rates were lower than the
ates charged after it was acquired
y the city.
Here is an instance where a private !
ldividual made good money by :
living close personal attention to the :
and operation Of his
ghting plant while the city sank a
ig wad in operating the same plant,
hile charging a higher rate than b
as charged by the individual owner. /
xperience is a dear teacher, but often C
othing else will satisfy" b
Of the sale Of the Hills is
30 plant, the Hillsbero Independent
Us the council chamber was well n
led with spectators when the deal y,
Is being closed and all appeared a,
II pleased with the sale. 1t further h,
rs: n,
There will be general satisfaction N
It the council has finally solved the "a
Iatious municipal plant problem. 81
, price agreed upon IL probably the as
{ that could have been obtained. q