Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-18
A Socialistic Program.

The Progressive conference, called by
q handful Of United States Senator'S
last Spring, has drafted, through its
Committee on Public Utilities, far
reaching program-a program, indeed,
which would revolutionize the attitude
of the country toward public utilities.
The underlying theme Of this program,
which calls for much legislation, is
system of Government ccmratition with
privately owned and operated utilities.
The Progressives lay down the premise
that public control of all public bust
ness is essential to self-government."
They insist that such control is now
absent; that instead Of the Govern
ment's controlling the utilities the
utilities control the Government The
answer to such a situation. the Pro-
gressives say, is to place in operation
Government owned and operated rail-
roads, power companies and other public
utility agencies. Through competition
with the privately owned utilities the
problem of control would be solsed.
In all probability this program in the
end would bring Government ownership
and operation of all the public sstilities.
It is idle to talk of fair competition"
between the Government and private
citizens Such competition results
eventually in the Governments rum
ming the private concerns out of bust
ness, if the Government enters into
competition on a considerable scale. A
Government intent upon making as
good a record for itself as possible
could not afford to permit its own
utility agencies not to compete success
fully with the privately owned utilities.
Success in competition is step toward
elimination Of the opposing competitor.
Public utilities are clothed with q
public interest which has conS to be
more and more recognized in this coun-
try. Supervision and control Of public
utilities by Government has been
deemed necessary in the interest Of the
public. That is the system which the
Prosressives insist has not been eff
fective. Nevertheless. no people in the
world are better served in matters OF
transportation. of communication and
Of light and power than the American
people.
The United States tried for the period
of the World War Government opera
ton of one great public utility-the
railroads. The country rejoiced when
this period of Government operation
was at an end. The Government, with
its red-tape methods and its lack OF
initiative in instituting better and bet
ter service did not shine in this field
of endeavor. But of more moment to
the American people is the danger OF
the establishment offs huge political
and governmental machine If the Gov
eminent takes over the railroads and
other public utilities machine that
would threaten the political as well as
all other liberties of the whole people.
Certain public utilities have been at
fault in this country and the demand
for greater regulation is Justified.
Mainly their faults have been in financ-
ing. with huge issues of securities sold
TO the public that were not warranted.
Stock watering, however. has not been
confined to the public utility corpora
tions. It has made itself manifest IN
business of all kinds. The cure for this
kind of offense is drastic regulation.
drastically enforced. What the Progress
sives are proposing is, If carried through
TO its ultimate conclusion, state So
cialism. The jump from Government
competition and operation in the utility
field would unquestionably be followed
by demands for the entry of the Gov
eminent into other. kinds Of business.