Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1914-07-22
MUNICIPAL
OWNERSHIP OF
ST. RAILWAYS
fF'rom The Municipal JovrnoD

'ffoM tHF HUHtctpdt JvHFHdtl
Washington. ID. e.. July 23-Unqual-
flied endorsement of municipal owner
ship Of street railways is voiced i'm the
formal report Of the district committee
ON the CrosScr street railway bill. which
has been filed with congress. The report
uncquivocally recommends the passage
If the bill which would authorize the
District 81 Columbia 10 condemn and
take over the street railways Of Wash
ing'on. M a valuation Ia he determined
by a board nf competent jurisdiction The
committee finds that the hearings on
the bill. despite the voluminouS tcSti
mont offered hy street railway and pub
lie u%tilitev interests. developed no fun
damental reasons WHY public util
titles should be- operated by private
companies for private profit. On the
other hand. the public nature of the
service rendered. the necessity for occu.
patton and use of the public streets. the
opposition or private ownership To reg
ulation which would produce service for
the public instead of only profits for the
company. and the corrupting influences
through which private owners Of public
utilities seek to protect and extend their
power. MI contribute 20 the reasons why
the public should own and operate it,
w utilities. il i held.
THE prime. and really the only
motive in private ownership" the
rnrAgFt 1safn- ~. w..Y.t- I'll. ....
az the profits the more successful
the business from the standpoint Of
the owners of the business.
The greatest profit j. derived BY
exacting the highest price the buy
or will pay for service and giving the
least service for which the purchas-
or will pay.
I'm all ordinary kinds Of business.
the buyer is protected against the nv
aricc of the seller bv competition.
This wholesome check. however. does
not exist i'm the ease of a street rail
way company.
The natural tendency Of persons
desiring to operate a street railway
j. 10 induce the municipality to
Eidh mn ~ ItEnt III TIT NlTFtA~
on such terms a. would enable them
70 procure the greatest possible
profit"
This tendency. the report states. has
led 20 the c%orrupting u Officers. the
election Of persons 90 office who would
be SuhScryicnt ID the corporations ne
mandS and has made private ownership
Of public utilities a far more dangerous
Influence ia politics than ever public
ownership could become. Over capitali
zation and false accounting are declared
10 be but two If the methods ~ which
private utility companies have sou ,
To obtain profits greater than allowed by
law. The fifty four Injunction suits filed
by the Cleveland Electric Railway Gem
pany 10 ObStruct the bnilding Vt the ori
ginal low fare line in Cleveland. nn.l the
fight put zap by that company 90 drcIar,
The whole city government Illegal. are
cited aS examples of the extremes q
which private ownership Of utilities will
30 against public welfare when the pro
fits Of the company are %icopnrlizYl Al
yantageS offered BY public OWNERSHIP
a. pointed out BY the report. include IN
removal Of the potential i%irflucn " ~
corruption. removal ~ the obstacle y
private profits from the path 81 Coos
and sufficient S%ervirr. the return
the public Of full control ~ a. streets
and the assurance with private profit.
and high overhead expenses eliminated
that. with the same amnnnt ~ traf
fc. the same %>crsirc can ~ rendered ai
lower cost or a better service IA The sam.
cost.