The Birmingham age-herald., 1914-08-14
GADSDEN MAN SAYS' STEER CLEAR OF| MUNICIPAL WATER
Declares Municipal Owner ship Is Proving Unsatis- factory Where It Is
 Being Tried

fhat municipal ownership of water works was "humbug'' and that every city In the country operating it's own plant Is losing or would lose money. was an Interesting statment yesterday or colonel R. A. Mitchell. of Gadsden. The city of Gadsden is operating it's own plant and has, 1t is asserted. in- creased the rates Colonel Mitchell yes eeruay said that he did not hesitate to taik about Gadsden. for that was his nome town, but that he did not want ms statmens misunderstood here. that IS. he did not want anyone to think he was "butting in" on Birmingham prob iems just at this time
 have studied the waterworks prob lem many years" said Colonel Mitchell. When it was started in Gadsden I sought information from every source and I invariably found that it proved l would suggest, if l may be pardoned, that the city officials here investigate before they buy or construct municipal plant.
 Tn Gadsden it has proved a humbug To begin with, We had to increase our tax rate 33 1-3 per cent before we could sell the municipal bonds to buy the plant. The politicians promised the tax payers free water and everything free almost, in order to carry the issue I admit that municipal ownership sounds good to the average man, but econom- lcaily 1t Is false proposition. After Increasing the tax rate we finally bought the plant and instead of free water We are paying an increased rate or o5 Is per cent, just as some of our bolder spirits told the politicians.
 In addition to those two increases the fellow on the outskirts gets noth- Ing. He was promised water, and I as sert that in Gadsden there is not a plug within one mile and a half of many of the taxpayers who are right now pay ing that increased levy for the munic- ipai waterworks. They are paying, but they get nothing
 In Gadsden the other day I had oc- casion to call the city engineers atten- ton to this and he confessed that he did not know about such an oversight, and l was compelled to tell him that it was better that he inform himself on such details before combating asser- tons of men who had seen the delin- quency.
 II Ills Hiuuiclpdl WdlefWOfkS prOpO- s1tlon Is all right when it comes from the lips of the politician who wants votes. But when it comes to actual service, 1t Is rotten. The cities that own their plants never charge depre- citation. They never take into consid- eration the taxes and franchises lost by the city owning the plant and on top of all this. most of them nave a higher rate. l have been told that in pitiac are compelled to appropriate certain amount of money to cover the water plant losses and in that way make it appear that the plant is paying prop osition. Nothing could be further from the actual truth.
 T have no desire to butt into the waterworks fight in Birmingham about which have read so much But I would not hesitate to advise any com munity not to try such an experiment. A water plant is a natural monopoly When any big concern gets into the hands of politicians or men seeking preferment at the hands of the people, it will surely not be managed as an efficient business concern Again. when community like Birmingham. for in- stance, uses up it's bonded rights to buy plant that certainly means that the limit for the time has been reached and there surely follows stagnation in other lines of business.
 From what l can gather, the Bir- mingham Water company is furnishing pure and wholesome water. The prices, 1t is said, are now being paid under orders of the courts. If that is true, the only thing for the Birmingham people to do is to await final adjudi- cation of the problem in the courts and then regulate the companies. It is sim ply matter of regulation and as a city, I would not dare touch a munic- ipal waterworks operation
 "It will surely prove a white ele- phant in time. As I said, the theory is very attractive and votes can be won upon that theory on the stump, but my honest opinion, based upon an exhaus- tive study of the question, has con vinced me that cities had best manage purely municipal affairs and let the utility corporations do their work under certain regulations"