The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1935-01-16
YardStickS
Chicago Tribune)

Tho administration juStifies the
construction Of government public
service facilities to duplicate private
plants-the Tennessee Valley project
as an outstanding example-on the
theory that they will serve as yard
sticks to measure the efficiency and
service charges Of the privately own
ed institutions. The politician arg
ues, I'VE are satisfied that the power
interests are gouging the public, so
We, the people, will build modern
experimental plant of our own to be
operated as yardstick. Then We
shall know all about power costs"
TO the citizen the argument seems
very much like having the govern
ment build him q second home to
prove that the original contractor
was dishonest. He doesn't want two
homes and he knows that he cannot
assume the taxes to build another.
Further, he may be just trifle sus-
picious that the yardstick may prove
nothing. The federal barge line and
railway projects certainly did not, and
the country Is strewn with municipal
undertakings frequently regarded as
white elephants. He might well re-
mark, "All this interest In my family
budget Il very flattering, but can't
you think Of some less expensive way
Of proving that my bill for electricity
i too high? After all. it is q rela-
lively unimportant ITEM"
The administration certainly can
find . wealth Of information on the
subject II 1t will take the trouble to
look around . bit. Other countries
have been experimenting with public
utility yardsticks for years and it is
not necessary to 60 very far to find
them. As an instance we might Sug-
gest trip over Canada's railway sys-
tenn to its capital at Ottawa, Ontar-
10, then to proceed through a pala-
tial government station and a gov
eminent owned subway to a govern
ment owned hotel within block Of
the seat of government. There is an
abundance Of yardsticks here avail
able for study.
Canada has two principal railways,
one government owned and one pri-
vately owned. There Is no substan-
tial difference between the operated
mileage OF the two systems-both ex-
tend from coast to coast. No matter
where one may be riding on the gov
eminent road. the private road is not
far away. Every city Of any colse-
queuce in the entire breadth OF the
land Is served by both lines. II any
advantage Of location exists. it favors
the national road, which being the
older IS better entrenched in the
thickly settled eastern provinces than
It's privately operated competitor.
The national also has more profita-
bic connections to points in the Unit
ed States, notably its line through
Detroit and across the state Of Mich
isan to Chicago.
Here Is one yardstick. The nation
81 road has anassed q public indebt-
edness Of three billion dollars and in
the last nine years has failed by
&l66, 900 900 to pay interest on the
private capital originally invested in
1t. Operating under the same rates
ana fares, the privately operated
Canadian Pacific has paid interest
and dividends Of $40l ,00o. 900 in the
same period, Ill Of which has been
added to the wealth Of the nation,
and Of course subjected to income
taxes. & any better yardstick need
ed to show that the politicians al
legged exploitation Of tho people for
profit" cannot be cured or even DEM
onstrated BY public construction and
lonerntiom9