New-York tribune., 1919-02-03
Special Committee Reports
Government Control Has
Proved a Costly Failure
Politics Chief Objection
Private Management, With
Proper Regulation. Said
TO Promise Best Results


ownership of public utilities is to be
continued as the policy of the Mer-
chants Association of New York The
hoard of directors of the association
has adopted and made public report
submitted by special committee ap-
polnted some time ago to examine the
relative merits of public and private
ownership
The report states the controlling
consideration is that political control,
operating through political methods, is
destructive of economic efficiency and
therefore should not be applied to m
dertakings of an essentially business
nature Wastefulness and inefficiency
have been the results of government
ownership wherever tried, the report
says
These are the members Of the special
committee which submitted the report:
Frank F. Chambers, chairman; James
G. White, Otto II Kahn, Francis H
Sisson, IL H- Porter and Professor
Joseph French Johnson They were
appointed by William Fellowes Morgan,
president of the association, for a
discrimination of the question of gov
eminent ownership and operation be-
cause of the prominence that policy
has assumed since the beginning of
the war.
Extent of Policy Reviewed
ment by virtue of war powers dele
gated by Congress to the President
has taken possession of and is now
operating all steam railroads, all ex-
press service, many coastwise steam
ships, the Cape Cod Canal, the Erie
Canal and all other canals in New
York and New Jersey, all telegraph
service, all telephone service, except
farmers lines, and the ocean cable
service.
1t asserts there is now pending in
Congress a resolution that purposes
the permanent retention and operation
by the Federal government of these
utilities and also practical domination
OF American ships in the ocean carry
ing trade, and further purposes gov
coal and oil.
Except under war conditions the
sole plea that can be advanced to
justify the operation by governments
Of public utilities is that governments
can provide better service at less cost
to the public than can private opera
tors-that is to say, the assumption
that government operation is more eff
cient and less costly than private op-
Grafton" says the report.
1--WE do not believe this contention
can be sustained. On the contrary, we
contend the operations of governments
in the economic feld-and particularly
under American conditions-are gen
orally characterized by inefficient man
agement and excessive cost; so under
government operation the public would
get poorer service and pay more for it
than under private operation suitably
regulated by public authority"
Causes of Waste Discussed
Discussing the causes Of waste and
lneficlency under government opera
ton, the report says: 'All the activ-
sarily carried on by political machin-
cry, and that machinery is wholly un-
suited to the economic field. A
brief comparison of the machinery of
business with that of political action
will show clearly why political ma
chinery does not and cannot work
effectively in the field Of economies.
The success OF any economic under
taking depends in very large degree
upon the ability and skill, the zeal and
energy, and the soundness Of judg-
ment Of the human agents employed
therein.
"These requisites are always lacking
in a considerable degree. and often
entirely, in an organization created by
political methods to perform an eco
nornic function
"No business, whether public or pri-
vate, can be operated efficiently and
without great waste under the con
slant injection az the top Of new, un-
tried and often unfit executives and
managers; nor with the rank and file
deprived, by laci. Of opportunity for
advancement, of the incentive. to zeal
ard cnoro-y