Evening star., 1914-01-25
QUESTIONS THE PROFIT
IN PUBLIC OWNERSHIP
Correspondent Thinks Taking Over
of Utilities of Doubtful
Benefit.

1
In view OF the fact that municipal
| ownership of the public utilities of Wash
lngton is now being agita;ed by certain
members of Congress and District of
ticials. it would not seem to be out of
place to inquire If such a proposition will
be of any real benefit to the citizens of
the city.
1t the utilities are taken over a large
revenue 70 the city will be lost by rea-
son of property worth millions being
withdrawn from taxation, and also there
will be the additional loss of the amounts
received from taxes on the earnings of
these corporations. Then TOO, the Dis
trict will have to pay the interest on the
i bonds which will have TO be issued to
purchase the utilities. and these bonds
would probably have to be issued at a
price to net purchasers from II. to AZ
per cent; that is, judged in the light of
what other cities are now paying
1t is pretty generally recognized that
the earnings of street railroads hang on
the fraction of a cent. Now, in view of
the government eight-hour law the force
Oh motormen and conductors employed
would at the outset have to be increased
about II per cent and .hen with govern
ment methods OF accounting super;ntend-
ence. etc. other forces would have to be
increased, all of which does not look
bright for profits with which to create n
sinking fund for the retirement OF the
purchase bonds.
Tower a Small Factor,
One of the District Commissioners is
credited with stating that by reason of
the cheap power that can be generated
by the river below Great Falls the street
railroads would be enabled to give
cheaper fares. Now. the fact of the
matter is that the cost of power is not
the controlling factor in the operation of
the local street railroads. the dominating
factor being wages. taxes. cost and MAIN
tenance of road, equipment and neccs-
Sary buildings
The official report of ;hc Capital
Traction Company for the year 1919
shows that the operating expenses
(Which did not include taxes or INTEREST,"
were s1.C9S.G.631. and this amount in
ciudes S11G.3S:'.Sf for fuel for power. 50
that the cost of the latter did not amo,u,
to one-ninth Of the operating expenses
Now, as is well known. hydro-eIectric
plants are expensive to build and main
tain. and especially SO where it is neces-
sary to dam up considerable volume of
water because of lack of pressure or
| head. for it is a law of hydraulics that
to secure a certain amount of power
there may be used. depending on which
is available. either a comparatively small
quantity of water at high pressure or
relatively large volume Of water with low
pressure.
Question of Water Pressure.
There are places in this country where
water descends from considerable ele-
upff
houses is several hundred pounds per
square inch, but no such ideal condition
exists here. and if it did it is safe to
say that it would have been harnessed
long before now. A close analogy to the
difference between high and low pressure
as regards water power is this: While
coal is generally purchased by the ton,
still! one ton of coal from one mine may
contain many heat units as three tons
from another mine, and. hence if the
coal with the greater number of heat
units is used the same result is obtained
with one ton with three of the poorer
coal, and there is the corresponding gain
in efficiency and economy by reason of
having to buy, handle and burn only one
third as much fuel.
The writer holds brief for the steam
plants or coal mines nor is he connected
| with any of the utilities and believes
| that the cheapest and best method should
be employed. but as it costs money to
| stcr. and handle wafer for power, pur-
| poses. the same as it does to buy fuel
| it is apparent that at the best a govern
ment hydro-electric plant could only re-
duce the amount expended for the gem
Grafton of electric power which is not
the controlling factor in rate-making for
| the street railways in this city.
| 1t is not altogether evident why the
public should be inspired with confidence
| in municipal ownership of public utili-
| ties, when it is well known that while
some utility rates have been lowered and
| the service improved, that taxes have
| been and are now increasing practically
everywhere. and still, in spite of their
increased revenues, some cities have
| found it necessary to borrow almot to
| the limit of their credit.
J. +. SMITH