The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-12-02
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Municipal Ownership

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BOUT - YEARS AGO the most exhaustive inquiry ever
made OF municipal ownership in the United States and
Europe conducted by large body of experts for the
THESE EXPERTS WERE EVENLY DIVIDED as
Tor ana against public ownership They published their findings
ncns IN favor of municipal ownership
merts against it. reader could take his choice.
--,zzu-. FROM THE LARGE MASS OF EVIDENCE COL
LECTED few definite may be deduced Cd That
autocratc or bureaucratic form Of government ( That while
there usually good practice there are
invariably certain bad features CD That the general benefits
to the public not nearly great generally represented in
favorable and not present at all in many a. That
the true cost of the service often concealed
ership ~ .7s....~.
WHEN A CITY GOES INTO municipal ownership
taxes longer paid by the property The taxes not paid
this in Fargo may be judged from the fact that
all kinds paid by this Company aggregate about $1,000
month.
THE ABOVE FIGURE includes the go gross earnings
tax paid directly to the city of Fargo and amounting to
about $4,000 year.
CITIES HEAVILY INTERESTED in municipal own
ersp usually have large interest bearing public debts They
usually have high taxes So far know the existence of
municipal plant attracted industry contributed
effectively to undertaking toward city development and the
. public welfare, l# "tn
y NO UTILITY, publicly or privately owned, can pay
of the service the
enough retire its bonds UNLESS the city has stopped growing
srucon each year for the demands the UNDER
management about $4,000 By the time
sinking fund had retired the original bonds debt for add
ona construction would be created probably larger than the
wiped out.
IN ORDER TO CREATE A SINKING FUND to retire
the original bonded debt of municipality owned plants within say
20 years would be charge rates considerably high
than the wartime rates in effect Either this totally
neglect the vital Of depreciation 1t depreciation
elected the whole value Of the nvemnt would disappear less
than twenty years The property for which the bonds is
sued would be gone.
a." " NORTHERN STATES POWER COMPANY does have
sinking fund and does retire certain proportion of bonds
rapidly possible But it cannot hope to retire its whole
bonded debt would be treating fair it tried
to do
NORTHERN STATES POWER COMPANY has never
stock dividend 1t has accumulated large
distributed the to the result Of exhorb
tant rates. rl
STORIES REGARDING what municipal ownership
claims to have accomplished be obtained from number Of
cities Stories Of what municipal ownership failed to accomplish
NAV be obtained from the and other sources.
THE INEFFICIENT, LAX AND MISLEADING
bookkeeping methods of municipal ownership be proven by
the files and opinions OF State Utilities Commits
The ordinary municipal plant does not keep its books
way that citizen tell whether the plant is making
or losing do the books always reveal that proportion OF
pense concealed in taxes.
UPWARDS OF 100 EMPLOYEES are required to oper-
the utilities managed by this Company IN Fargo They
employed their fitness for the work and they vote
they please They hold their jobs long they
care to- provided they render efficient service
IF MUNICIPAL OWNERSHIP CAN RENDER PUB
Lie SERVICE satisfactorily and with greater economy
citizens than able and honest corporate management it deserves
to succeed-in fact is bound to succeed
IN CONSIDERING THE subject, HOWEVER, all
factors should be taken into consideration and comparison
should include all elements of cost whether borne by the
charged service by by other departments city gov
eminent, or passed along to the next generation
Union Light Heat & Power Company