The Washington times., 1921-07-30
NEWMAN IS
To-
FARE FIGHT
Competitive Traction" Plan
Would Cut Suburban Throats,
Writer Points Out.

Formerly President, Board Of Conmi.-
sioners. District Of Columbia.
Competition should regulate
prices"
That's an old, old slogan. 1t has
been used by people in positions
Of vantage since the first step was
taken by the first Government
to regulate any business which
used It's strength to gonge the
public. m
Reviews Ten Plans.
1t is one Of the ten plans suggested
for solving Washington's traction
problem, beng number six on my list,
and scheduled for discu ssion today
Before considering II. let's get fixed
In our minds again what the ten plans
are, SO that wen see each in relation
to all the others.
Devil-take- -hindmost.
The very foundation OF public utility
regulation fs reached when II Is pro-
posed that the street railway COM
panies be turned loose. to fight out
their own destinies on their own hook
hoSh nho hcSh, NEUTRALITY-SUSPICIOUS.
most.
That foundation is Just this:
First, public utility provides Some
thing which Is absolutely essential to
the life of a community-somethi
which people could not live without
Second, a public utility, in providing
this necessity, must use public spaces
streets, alleys, parking spaces. etc,
In an exclusive sense. 1t could not
furnish its service unless 1t were per.
mitted to use such spaces.
Third, public utility is usually a
MONOPOLY. As rule, there is but
one OF each kind in each town-one
car company, one gas company, one
telephone company, etc.
Fourth. the fact that each Is usually
monopoly removes the possibility OF
charges to patrons or consumers being
regulated by competition.
Now. let's keep firmly in mind those
four principles. The existence of all
Of them in one case is what makes a
public utility different from a bakery,
or other private enterprise.
Bread is a necessity, but the baker
does not need to use public spaces in
an exclusive manner. He uses the
public street for his wagons, but
EVERYBODY may use the public
streets. In the case Of street car
company, however, its use Of track
space is EXCLUSIVE. Nobody else
can lay tracks.
The baker. please remember also,
has no monopoly. Other bakers COM
pete with him, and, IL you want to, you
IAN have your own bakery in your
but you can't run your own
street car. COMPETITION, therefore,
regulates the price Of bread.
Theory OF Regulation.
Because of the existence of the four
principles noted above, there has
grown up In the United States gen.
srally accepted theory that electric
light and gas companies, telephone
street railways, taxicab
etc, may properly and le-
yally be regulated in their operation.
and charges, by what
sver government they live under.
Only the densest ana most ignorant
public utility officials now dispute
hat right on the part of governments
, right which, by the way, has been
sustained time and time again by the
Supreme Court of the United States.
In the District Of Columbia Congress
undertook to exercise that right In
definite. systematic, comprehensive
'orm in 1918, when 1t created the Pub
ic Utilities Commission and delegated
o II the Congressional perogative to
ell the Washington utilities how much
,apital they could have, what kind of
service they must provide and what
,harges they could make.
Now. the proponents of tho com
petition plan" for settling the Dis.
riots street car difficulties say:
"The rules Of government regula-
ion do not necessarily apply to street
,ar companies here because, rs n mat
er OF fact, we HAVE competition"
What they have In the back of their
minds is the fact pointed out fire.
Iuently in these columns-the great
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