Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-06-02
Ownership in Washington

Municipal Ownership in Washington
In 1915 the editor Of The Star visited
New Zealand. and in the course OF cor
respondence concerning this trip he dis
cussed the government ownership in New
Zealand of steam railroads and street
railways. and deduced from his observa
tons at the antipodes hints for the
benefit of the United States and of
Washington. Elsewhere in The Star this
letter concerning government ownership
IS reprinted as of some interest i'll its
bearing upon the pending discuseion of
municipal ownership for Washington
street railways.
One conclusion OF this correspondence
Ia as follows:
Administration of railroads and tram
ways for the benefit of the people with
out unjust discrimination and without
being used to build up or MAINTAIN
monopolistic trusts or combines must be
secured in the United States, if not by
government ownership then by strong
government control, using the interstate
commerce commission and all laws on
the statute book for this purpose.
strengthened by amendment if neces-
sary. Thus either by government own
ership with improvement and purllica-
ton of the government or by stringent
governmental regulation of railways
steam and electric, the sound doctrine
must be enforced that franchises to pub
lie utilities corporations are not gifts
but grants for which compensation must
be made to the public. The grant OF
temporary use OF the streets should be
accompanied by compensation TO the pun
Tic for such use and by retention OK
power by the government to regulate
such use in the public interest. Inc
corporations have ciamored that owner
ship and control are inseparabie. that
the government should not exercise con
troll unless il acquires ownership But
this argument has been properly dlsre-
garded. 1t has been held that the rights,
powers and privileges given to common
carrier corporation by the public furnish
the necessary consideration for the reten-
ton by the public OF certain control
of the corporations which II has created
and in effect endowed. This conclusion
applies both to steam railways and TO
tramways and to national, state and nlu-
nicipal control. The interstate commerce
commission regulates common carriers
between the states with wholesome re-
suits beneficial to everybody 1t checks
nlonopoIistic favoritism and discrimina-
ton On side and drastic granger anti
railroad legislation on the other. So in
municipalities and states in legislative
action on street railway franchises the
same sound principle has been recognized
and applied.
The Improvement of street railway con-
ditions in Washington in the last fifteen
years. through government regulation. IS
summarized in this correspondence as fol-
lows:
THE street railways have developed
from projecting. understanding Trails
to grooved rails: from horses to under
ground electric motive power OF the
Budapest type with improvements. with
out passing through the intermediate
stage of use of the ugly and dangerous
overhead trolley in the urban section:
from division into many weak and lmpoV-
erished lines TO consolidation into two
great systems. from So-aS-you- please
management of tramways by Congress
with unlimited free franchises for the
asking to appreciation ny both puoiic ana
railroad that these franchises represent
substantial grants by the public OF valils-
Bile privileges for which consideration
must i. rendered To the public. either
directly or indirectly in cheaper fares and
in improved service: from almost TIL
checked control by private interests OF
these inloortaut seun-public functions to
stringent. wholesome regulation by the
people. first through the national inter
stat commerce commission and low
through an indepe ndent local public utiE
ties commission with enlarged powers
The latest evidence that Congress.
thoagh discouragingiy sluggish aud hard
TO move as Washngton's local legislature,
may be relied upon to meet wisely in the
end the crises and emergencies of the
nations city $ The recent enactment III
response to the popular demand OF the
well considered law above referred to.
creating a public utilities commission foT
the District TO regulate in the public in
terest the local public service corpora
TONS. The evils which might drive an
American community or the nation 10
government ownership Of railways are no
longer conspicuoEslr in evidence in the
nation city.
After a long. hard struggle this com
rnunity has secured independent pub
lie utilities commission. with large pow
ers of control over the rates. service,
equipment and earnings of the public
service corporations. Through this com
mission if its powers are diligently
and vigorously utilized in the public in
terest, the public exercises practically
vital powers of ownership in matters
which touch it closely, like rates of fare
and character of service, without being
embarrassed or injured by the necessity
of also bearing the burdens, responsible
tiles and possible losses of ownership. If
the street railways are paying too high
salaries or too large dividends the com
mission can in effect reduce these dis
bursements by compelling the expendi-
ture of more of the earnings than here
tofore in Improvement of the equipment
ana service or bN tnt earnings
by decrease of fares. Our public utili-
ties commission composed OF men whose
sympathies all with the travelling
public. should. in fulfllment of the pur-
pose for which il was created proceed to
demonstrate that it can equitably regulate
these corporations so that the community's
rights will be amply safeguarded without
compelling the municipality to go into the
street railway business, to suffer possible
losses from the experiment and to incur
the abuse either of the travelling COM
munity or of the taxpayers municipal
stockholders of both. The utilities
commission ought not to confess inability
to regulate in the public interest a few
vital isues of railway management and
in the same breath demand as commits
sioners that the full burden of railway
management, in all its ramifications OF
complicated detail. be placed on Their
shoulders under municipal ownership. In
the parable it was the servant faithful in
the handling of few things to whom
the management of many things was ap
propriately Entrusted, and not the sery
ant who did nothing with his talent