The Washington times., 1914-05-31
.Ol THE POOR INVESTOR

Congressman Winslow of Massa'
husetts, who is a member of the
House District Committee, and an
rncompromising opponent of munich
,al ownership of public utilities, pre-
ented some unique ideas on that
question during yesterdays hearing
m the Crosser measure. This is
he bill which is intended to provide
or the District taking over, as pub
ic properties, the street railways of
his city.
Mr.. Winslow was fearful that if
he public should take over the rail-
Dads, and if other communities
hould therefrom get the municipal
wnership idea, and if at last all the
owns should buy up their public
Utilities, why, then there wouldn't
e any public utility bonds for in
estors to buy! And with good deal
f severity he demanded to know of
Commissioner Siddons in what the
nrestor would invest, if the public
tilities were all taken over by the
governments!
To make his point good, Mr.. Wins
Nv pointed out that people with de-
ire to save something for-a rainy
ay put their money in savings
auks, and then the banks invested
n these securities. Ii the cities
hculd take over the properties, in
.kat would the banks invest? And
+ the banks could find nothing in
,hich to invest, how could they re-
Give the deposits of the thrifty citi-
en-? In short, how was man to
o On saving if there was nothing to
o with the savings?
We trust that no more serious OBJ
ectioE will be raisei against public
wnership than this one. Of course,
he public utilities are going to con-
inue to be property, even when
wned by the cities. There will be
ncre substitution of the city's obi
-ations for those of the private cor
roration.
II the street railways in Washing
on shall be found worth 10000, 900
yhen the valuation of them is COM
,leted, that S20,000.000 will be rep
esented by bonds and stocks in the
,ands of investors. The city will not
onjure up S20,000,000 out of the air
nth which to pay for them. 1t will
ssue its own securities, and eX-
hange them for the stocks and
onds of the private company. The
'eople who now have stocks and
onds of long list of little railroad
nmpanies, would get the bonds Of
he District of Columbia
These bonds Of the District of Co.
umbia would be subject to invest
nent. The savings banks in New
ingland could buy them We ven-
ure even to opine that these New
,ngland savings banks would be
cry well pleased, right now, if
,hen they bought securities of the
Iew Haven railroad, they had got |
onething with the credit of great |
nd rich community behind it, in
tead of something that looked good |
Then they bought it and that after
ward proved to be the promise-to-
'ay of railroad in process of be-
ng looted by its management.
Surely Mr.. Winslow could not have
sked his question seriously. Per-
APPS he didn't, but merely wanted to
.scertain whether Commissioner Sid
ons could answer such a simple one.
ie found out.
One'of the fundamental reasons in |
avor of public ownership of public
Utilities is that the credit of the
ommunity as whole is better than
hat of any section of the commun-
ty. The most valuable bonds issued
n this country are the bonds of 1he !
ountry. They have sold as low as |
per cent. and if no currency privi-
eye attached to them would easily |