The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-11-22
ON PUBLIC OWNERSHIP
Dickinson, N. D.
Nov, 16, 1893

TO Editor Tribune:
Your Editorial In issue of 18th. 1T
Takes Some Thinking" In reference
to a heavy majority vote at jones'
town in favor of a municipal electric
plant. If one traces through the de-
velopment and history Of public util-
tiles for the last forty years. you will
find at first independent utility plants,
by some individual owner, who start
ed in small way and gradually ex-
banded, until he had well estab-
iished business. Rates were fairly
high, If not high, but on the whole
generally good service was given. Still
at that time there was considerable
wire pulling to advance his interests,
and he made money and in time be-
came the towns wealthy man.
Then the promoters started the idea
that through a connection of utilities
of different cities and towns power
and light could be furnished cheaper
and more efficiently, and the corpora
ton then began to get control Of util-
tiles, independent owners selling out
at inflated prices, and the corpora
tons putting out stock issues for a
capitalization further inflated by null
tiples from two to six In modest in
stances, and few know how much
more except the promoters.
To then talk municipal owned
plants, or even suggest that anything
was wrong with utility, was sacrilege
Of the worst kind. The reason for
such utility prestige was the fact that
in each town some stock of the newly
created corporation was offered and
sold to local people and owners Of such
stock were converted into loyal sup
porters of their newly-acquired in
vestments, not knowing that when
high pressure statesmen induced them
to buy stock in the local industry that
instead of getting stocks in the basic
corporation owning their towns plant,
they got stock of some holding COM
pany, a first, second or third cousin,
or perhaps farther removed as to
ownership.
All the investors have in the last
few years realized they were the VIC
tins of high-power propaganda
scheme for acquiring control Of utili-
ties as evidenced by the intricate
and flimsy insult structure, and only
a duplicate of all the others, except
in size, and that the investors were
left here and there with almost worth
less stock.
There are of course sound and hon
est utilities and the FoShays and In
sulls are extreme cases of fraudulent
advantages, but it cannot be denied
that public utilities in hands of hold
ing companies has caused a righteous
protest against them, by reason of SO
much dishonesty in capitalization,
and the unapproachable and newt
able bosses controlling them, and then
the unsatisfactory and Wearisome at
tempts to get rate adjustments through
NE State Railroad and Warehouse
Commission, whose authority is con-
fined to rate adjustments and based
on earnings on bond and stock issues
over which they had no part.
In cities of the size of Jamestown
and Dickinson there has been lost in
investments in utility corporations,
by a few who have saved money,
enough to pay half If not all of new
municipal plant, and as to 1t being
a hardship on the present Investors,
such is not the case. They are already
willing to acknowledge their mistake
and that is the reason why they now
favor municipal-owned electric plants.
The municipal electric plants have
shown that a town can own its plant,
and pay for it and give rates based on
actual investments and fair to con-
sumers, and that when you have a
kick coming, you don't have to take
it up through a lot Of legal procedure
that would tire the patience of
Job.
It is better for the people OF any
town or city to have an interest in
their municipal-owned electric plant
than have a share of stock in hold
ing company, and the public utility
people can blame no one but them
selves.
think It Oyer.''