South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-02-02
Int SOUTH BEND NEWSTIMEs
Street Railway Adjustment Problem

crossed the Rubicon Street railway is a
lie function. The only question left is this. Shall the
municipalities other public bodies perform this
function directly, shall they pri-
agencies? In the future city planning in the
broad Of the term the development municipal
democracy and the dictates Of public policy rather
than the desire for profit. control pri-
ownership and operation Of lines is con
tinued, the problem will be make private ownership
and operation If IL public ownership
operation. The fundamental motive that normally
actuates private ownership and operation is irecOn
cabe with the motive that dictates pubic policy Both
prevail. One must be held in check the
other controls the enterprise If the return upon pr
waite capital guaranteed is limited to a axel
annual percentage, then deprive the business OF
the ALLEGED benefit of private Incentive for economy
and efficiency, and these virtues of management will
long be developed only through the substi-
tuition of minute public control for the
centve of profit
It is TO he noted however that from the public point
of view not necessarily advantageous when
nterferes with service. In general. the public
be Interested in having good service than in ha
ing economy Of operation where that represents
taiment of service either D quantity quality.
Likewise. the pubc's interest in efficiency is likely
TO be more from the point Of view of service than
from the point of view OF low Economy and ELI
cheney, therefore, Of unquesoned importance TO
the public only TO the extent that they do inter-
fere with the desired quantity and quality of serv
ice while from the point of view CT private
economy and efficiency of importance to the
that they 10 not interfere with revenues. The Mon
treal tramways contract represents effort thus far
made to enlist the cooperation a private company
the provision of service upon the same basis as if
by public motives It Is an experiment
the outcome of which will be watched with great
terest
cannot escape the conviction however, that any
scheme Of public regulation and control which
quatey protects the public require greater
wisdom and persistent watchful1ess than would
be required by direct public ownership and operation
II seems TO that is easier politically and in every
other for the cities perform the which
they require than is for them to compel induce
private parties to perform it when those private par
ties necessarily actuated by motives in conflict
the fundamental motive of the public
perence with public service commissions during the
past eleven has not clearly demonstrated their
ability cope with the problems presented 10 them
in any better fashion than cities which oper
their utilities have COPIED and are coping with the
problems Of public utility administration do no.
5hat municipal administration of public utilities
has been unqualified success in this country: on
the other hand 1 that faults many AMI
grievous But inherently, It seems to me. the
problems of direct ownership and operation much
less subtle and battling than the problems Of adequate
public control under private management