The commercial. (Union City, Tenn.) 190?-193?, 1921-08-19
Failure of State Ownership,

Failure of State Ownership.
For some days there has been
gathered together at Williamstown,
Mass. large group of statesmen and
political economists from this coun-
| try and Europe for discussion of po-
litical questions both domestic and
international. 1t has been a seminary
of some of the best minds of the world
| directed by men who have had &C
tual and practical contact with the
| issues they have undertaken to dis
cuss. One of the speakers the other
day was Tomasso Tittoni,, president
of the Italian Senate. He took up
under the broad heading of "Econo-
mic Doctrines" the issue of municipal
and state ownership, and, speaking
out of an extended and practical ex-
perience, he condemned the policy as
being nothing short of economic fol-
| ly. Italy so we are informed, has
made 5000 or more experiments in
municipal and state ownership and of
these trials Signor Tittoni from his
intimate knowledge has this to say:
Municipal and especially state
ownership can never have for its OBJ
ject simply economic advantage. Peo-
pie generally expect from govern
ment-run industries the latest i'm
provement and the best commodities,
little caring whether the concern is
in a financial position to pay for
them, or whether it means going into
debt. Thus every public concern
must, in order to content the people,
tend toward the free distribution of
it's commodities.
Now this, coming from man who
speaks from knowledge and not from
theory, is in itself severe indict-
ment, but it tells but a small part of
the story of the failure of state own
ership. Not only do people expect
state-owned and operated utilities
and industries toSfurnish service at
the lowest possible figure, but also do
those who have business with such
industries and utilities expect the
highest prices for what they furnish
Even do the employees of state-oper-
ated concerns expect nothing less
than the highest scale of pay and, in
view of the politics that must enter
into State ownership, these sellers
and workers get just about what they
expect.
But the worst feature of govern
ment or state ownership is the poll
tics that must inevitably be associ-
ated Herewith. Men will be able to
secure executive appointments not so
much because of their peculiar and
distinctive qualifications, but because
of their political influence and power
They may or may not be competent
and if the influence behind them be
sufficiently strong they need have no
fear if they are not. Furthermore, |
there cannot be the same incentive
towards efficient and profitable serv-
ice under government or state own
ership that there is when any con-
Germ is conducted by private enter
prise. 1t is only natural that men
will be more careful in conducting |
any business when it means some
thing to their pocketbook to be so.
The United States, it is true, has
made no large-sized experiment in
ownership except during
the war when the country went into
the railroad and steamship business.
But with the result of these expert
ments the whole nation is familiar,
and it has been anything but fiatter-
ing as a criterion of benefits to come
from the scheme. The nations debt
has been added to very heavily from
our war efforts at government oper-
alton and we do not believe that the
people want return of the expert
ence
Under the Non-Partisan League,
Dakota has given an extensive trial
to state ownership, with the result
that large number of the banks Of
the state have been closed. The fail
ure in Dakota seems to have been
more marked even than our national
failure. Altogether we have seen
enough in our own. land to convince
us that Signor Tittoni is right in
what he says He merely adds to our
own convictions the convincing proof
Of more extended experience.-Mem-
Dhis Commercial Appeal.