The Washington herald., 1914-06-05
Practical View Of Crosser Bill

The advocates of municipal ownership who have
appeared before the House District Committee have
presented series of mental convictions, personal i'm
pressions and vague theories which, while doubtless
interesting have ignored entirely any practical con-
sideration of the measure. There has been an
apparently deliberate avoidance of a discus.
sion of how the Crosser bill for the municipal own
ership of the District street railways would operate
should it ever be enacted into law. 1t may be worth
while, therefore, to consider briefly some of the
provisions of the bill and thus demonstrate that they
have been incorporated without knowledge of actual
conditions.
The bill provides that the money to purchase the
railroads shall be raised by the sale Of 3o5 thirty
year bonds and that sinking fund shall be set aside
sufficiently large to redeem the bonds at their maturity
1t is distinctly asserted that the good faith of the
United States shall not be pledged for the securities
nor shall any money appropriated by the government
for the, District be applied to the principal or in
terest of the bonds 1t is absolutely certain that
at least s5o,oooooo will be required, for no court
would allow the government to acquire the roads at
less than the market value of the outstanding bonds
and stocks This an annual interest charge
of $IS7Sooo In addition this average of 81 ooo
600 year must be put aside for the sinking fund.
The operating expenses will aggregate at least $25oo
year. and these three equal the revenues
of the roads, allowing nothing for depreciation bet
terment.
1t is extremely doubtful whether the bonds, being
based only upon the franchises and properties of a
corporation about to pass into the hands of inexpert
municipal officials who are liable to be changed every
three years. would sell par If they should be sold
at discount thus requiring larger issue than S5o
oooooo the interest charge would be correspondngy
increased. There is also a serious question as to
the fairness and equity of imposing upon the peo-
pie of the District debt of S5o.oooooo when they
have opportunity of deciding for themselves wheth-
er they will accept the liability. The result will
be, notwithstanding the declaration in the bill, that if
the experiment should prove failure the holders of
the bonds will look to Congress for their money. The
taxpayers of the District could hardly be held liable
for debt which they did not contract. The history
of the present existing 365 bonds would undoubtedly
be repeated. ~
Another provision of the bill, to which no atten-
ton whatever has been given, makes it incumbent
upon the District Commissioners to operate the rail-
roads without violating any of the laws of the United
States The author of the bill is undoubtedly gnor-
ant of the nnumerabe statutes which bind the Com
missoners with official red tape. The laws re-
specting the purchase and disposal of public prop
erty are of the most rigid character and de-
signed for governmental operation For instance the
District Commissioners have freedom of action in
purchases amounting to SIS, and all the supplies
obtained are subject bids and contracts approved
by the general supply board created BY law, at the
head of which are officials of the Treasury, In
terror and Postofhce Departments. Materials pur-
chased for the railroads would have to be obtained
through the slow and devious channels of Official
routine which would be ruinous in progressive
private business corporation Under the law, also
no public property unfit for can be disposed OF
except at public auction which is all right for old
furniture cast out of the department buildings but
which would be distinctly disadvantageous when it
came to desiring to exchange old and machinery
for new.
There is law, too, which gives District employees
thirty days annual leave and thirty days sick leave
with pay This could not be violated and would ma
teray add to the expenses of railroad operation Then
the eight-hour law would have to be observed which
would also increase the item of cost. Then Labor
Day. according to the law, all employees paid by the
day would be entitled to their pay, whether they
worked or not The Commissioners, to go step
further, are prohibited from nsuring any District
property. The Western High School, recently de-
stroyed by fire, was not insured and will remain a
wreck until Congress appropriaes the money for re-
building The property of the street railroad COM
panies is now insured for about S6oooooo but there
is no provision in the Crosser bill for continuing
this insurance. 1t would be sad commentary upon
legislative wisdom if barn power house should
be destroyed during recess of Congress and the
people have to wait until Congress reassembled in
order to get the cars started again. The complaint
now existing because more than 1000 children de-
prived of school facilities would be as gentle
zephyr compared with the indignation which would
then arise
The fact is that the Crosser bill is theoretical
measure full of impracticalities and absurdtes. 1t
seems impossible to believe that it will be reported
favorably merely as compliment to its author. Such
action would be serious reflection upon the wisdom
of the committee.