Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-13
PUBLIC OWNERSHIP
THEME AT HEARING


show that the municipality owned util-
ties in that state require just as much
regulation 90 the private corpora
tions. while il is more difficult to get
satisfactory financial statements from
the public than from the private utilities.
Before you recommend taking over
any more public utility properties, l
suggest that you first ascertain if the
one YOU have is satisfactorily operated
said Mr.. King.
Mr.. King was questioned by the COM
mittee to the cost of reproducing
the present system, but Mr.. King said
1t was an impossible proposition to I'M
dertake such an estimate without TAX
ing all elements into consideration. be-
ginning with the horse cars and COM
ing down to the present day.
Mr.. McCarter's Word of Warning.
Thomas n. McCarter. president of the
Public Service corporation of New Jer-
sey. said he did not own share of
stock in any District of Columbia street
railway corporation. but he was pres
ent because he conceived it his duty to
utter a word of warning against the
danger of the experiment which the
Crosser bill proposes. As a good citi-
zen. with the welfare of the whole
country at heart. he felt bound to
speak
You didn't think it was unpatriotic
to take over the parcel post?' asked
Mr.. Igoe.
Il am not sure that il wasn't unpa-
triotic,' said Mr.. McCarter. .if it results
in the ruin of the express companies"
The whole scheme of municipal owner
ship he declared to be un-American and
not in sympathy with the ideas of the
fathers. 1t means bureaucracy on a va st
scale and an army of municipal officials.
IT this plan were adopted throughout the
country It would add an army of from
10000 to 100000 municipal employees to
the present rolls.
1T must in the long run work for
evil. said Mr.. McCarter.
You mean they would get into poll
tics?" asked Mr.. Thomas
Il mean that. for one thing. :
Private Ownership Preferable.
II do not think the government at
Washington should start such a prece-
dent. said Mr. McCarter. "A continue
ton of private ownership under modern
regulation is far preferable am sure
that exploitation of public utilities is not
going on now and cannot go OH under the
system of state commissions
He said the street railway business is
not yet standa rdized. the art is not COM
plete.
Mr.. McCarter said that tho correct
principles for rate-makinS or condemnins
public utilities. as laid down by the
United States Supreme Court would
auire physical valuation of the prop
erty: to take into account the develop
ment of the art: to include the discarded
equipment necessitated by the marvel
lousy swift development of the art
Then must be added the overhead
charges which are now recognized by the
courts. They add approximately 20 per
cent to the cost
Development Cost Next.
The next step is the development
cost which is the money which was
not earned during the lean years of
the enterprise.
In New Jersey. this was estimated at
30 per cent, which was added to the
capital cost. Also it must be taken into
consideration that completed railroad
in d going condition is worth more than
the integral parts.
The committee at noon took n recess
until o'clock. when MIR. McCarter con-
tinued his argument