Daily capital journal. (Salem, Oregon) 1903-1919, 1912-05-31
MANITOBA
HAS TRIALS
OF HER OWN
TRIES GOVERNMENT OWNERSHIP
AND REAPS A RICH HARVEST
OF SCANDAL, REGULATION AND
POLITICAL DISHONESTY.


ing.into Canada, whree they have been
led to believe governmental condi-
tions are SO much superior to those
in the United States are, upon their
arrival in Winnipeg, now being given
on insight into the manner in which
the Caadian government operates the
affairs of its state-owned utilities,
which does not, by any means, bear
out the claims of the superiority of
the government of the great northern
neighbor nor of its ability to operate
a government monopoly of public SER
vice concerns with anything like the
results credited to it,
Although the scandals now being
brought to light by royal commits
sion has shaken Manitoba business
and politics to the foundation, prac-
tlcally nothing of it has reached the
United States. The reason for this is
that local pride has succeeded in sup
pressing the condition from American
newspapers. One of the standard
subjects of Canadian attacks on the
United States has been alleged cor
ruption in municipal, state and gov
ernment matter, and to have a worse
state of affairs than anything charged
against American public officials
brought to light right at home was
anything but agreeable matter to
have spread in Yankee newspapers.
But so far as this instance is con-
cerned, all theoretical objections to
government ownership have by actual
facts been demonstrated to be sound.
Four years ago Manitoba went into
government ownership by installing a
line Of grain elevators and practical
ly forcing all privately owned tele
phone exchanges in the province to
sell to government system which
was being organized. The biggest Of
these plants, the Winnipeg company,
was American owned and operated.
The provincial government took
club, went after the Americans, and
threatened to parallel their lines If
they did not SELL The Americans
sold, but having to deal with gov
ernment agents handling other peo-
ple's money instead of their own, they
got a million dollars or so more than
any level headed business man would
have paid for the plant.
Then, having acquired a number of
ether exchanges throughout the prov
iDce, the state telephone company
started business with a flourish.
From time to time glowing reports
were made of the success of the sys-
tenn and all went we'll until some
months ago when the telephone COM
mission suddenly announced a tre-
mendous increase in rates.
howl" went up. Half the towns
in the province appointed commits
sions to see why the increase was
necessary. The tumult became so
great that Premier Robin appointed
a crown non-partisan commission to
investigate the whole question. It is
the many scandals brought out by
this royal commission which Is giving
Americans the chance to return to
Canadians the many glbes which this
country has for 80 long thrown at the
great republic to the south when the
question of the conduct of municipal
and state affairs were under discus
sion Although owned by the govern
ment for less than four years, the
disclosures before the commission
show the entire system to be perme-
J ated with graft, incompetence and
scandal AS soon as the announce
ment Of an investigation was made,
one Of the telephone commissioners
resigned, One employe has been ar
rested on a graft charge and other
arrests are TO follow. In every de-
partment was found scandal. The
purchasing department admitted hav-
ing bought at one time, 100000
worth Of supplies which we're not
needed The construction depart
ment told of running lines one day
and taking them down the following
day, One line II miles long was built
in order that one customer might be
served. Materials were wasted time
was KILLED" In the auditing depart
ment were found raised vouchers.
and vouchers which had been signed
in blank and afterwards filled in as
the holder wished. The accounting
department accepted without question
such sums as were RENTED for long
distance calls by branch managers
In all the three years there has been
no general checking up OF the sys-
TEN.
The scandal reached the Provincial
parliament and became the question
OF the hour Member Mcpherson,
from the floor, charged that the peo-
pie had been grossly deceived. They
were led. he said 10 believe there