The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1922-03-31

Publicity Association, through its
president, Hon. Jonathan Bourne, Jr.,
takes occasion to remark that, "There
is much good reason in support of this
| suggestion" The Association then
says:
"It is common belief, if not common
knowledge, that government business
is more expensive than similar under
takings conducted by private enter
prise. Managers of government bust
ness have not the same incentive to
economy and efficiency which deter
mine the methods and policies of pri-
vate enterprise whose profits and con-
tinued existence depend upon success
full management. 1t is also common
belief that when a governmental
agency undertakes construction work
it does not charge, as part of the ex-
penses, many overhead costs, interest
on investment, depreciation of prop
erty and other i%ncidentals. Because
of this, government work is frequent
ly represented as being less expensive,
whereas the actual cost imposed upon
the taxpayer is greater than would
be the case if the work had been done
by private enterprise.
"There is another fact in connection
with the relative merits of government
and private operation which is worthy
of consideration. 1t is the custom of
a government bureau to make esti-
mates of the cost of conducting a
piece of construction work, but eXper-
fence shows that in almost every in
stance the estimates are exceeded
from 25 to so per cent, and even more.
A government bureau may estimate
it's ability to conduct the work for less
than a private contractor would stip-
ulate as his price and thus the pub
lie be induced to believe that the gov
eminent work is the cheaper, but
when the work is finally completed
the figures will usually show that the
private construction cost would have
been less. The private contractor is
obligated to do the work for a stipu-
lated sum, whereas the government
bureau is practically unlimited in the
amount it may spend.
"There is another viewpoint that
is favorable to the contention of the
contractors in the Pacific Northwest,
They are maintaining equipment to
enable them to undertake large con-
srtuction enterprises on short notice.
Their supervisory forces are well or
maintained. While they are maintain
ing this organization and equipment
for their own private gain, they are
also doing it for the benefit of the
entire commonwealth or community
Since it is to the interest of the ma
ton, the state, the county and the
municipality that these large private
construction enterprises be continued
it is we'll that they be given every en-
enlargement consistent with the pub
lie welfare. That being true, they
should be given an opportunity to bic
on public work in competition with
any governmental agency which con
templates doing the work. Moreover
when a governmental agency bids OF
public construction work it should
make it's bid on exactly the same basi:
that a private concern must adopt, fig
uring in it's costs all Of the overhead
and supervisory expenses, rental OF
buildings, depreciation of equipment
interest on the investment, etc.
"When competitive bids are taker
on this basis the taxpayers, who ulti'
mately pay the costs, may rest assur'
ed that they are getting the work
done at the least practicable expense
to themselves"