Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1936-06-26

seems TO lie IN the simple question
Does municipal or private ownership
bring the cheapest rate and the best
service? Reams have been written on
the subject,-prO and con. This all
seems unnecessary for there are
enough municipal and private systems
operating in the country to give de-
finite decision on the point. Why can
not an impartial comparison of rates
and taxes be made? The result should
then show definitely whether NUM-
cipal or private operation is the more
efficient providing, of course, that the
public plants pay taxes and keep their
books on the same basis as the pri-
vate operating companies.
The Federal Trade Commission has
made just such a study. The results
show small residential customers of
municipal plants have a lower bill, on
the average, than those served by pri-
vate companies But taxes paid by the
municipal plants were much less than
those paid by the privately-owned
concerns. When this fact enters into
the computation, the advantage of
municipal ownership is questionable.
Moreover, when the customer of a.
municipal plant uses above a certain
amount, his bill is more per kilowatt-
hour than if it were a privately own
ed plant, regardless of taxation. The
gap between the two charge steadily
pany as the amount Of juice consumed
increases.
Why Private Rates Lower
The results of this study were not
startling. The experience of most ma
tons has been that the private opera
ton of business seems to be more eff
ficient than municipal or state man
agement. Why? The answer is poll
tics" l have not the least doubt that
public operation of great industries
such as the railways, power, dairy,
gasoline, restaurants, and the like
would be far more efficient and eco
nomical than private operation-If
politics could be eliminated. Unfor-
tunately, experience clearly shows
that, bad and inefficient as private
management in many cases is, public
operation is worse. Only more religion
and education can bring honest and
efficient operation of public enter
prises.
The utility industry as whole has
a wonderful operating record EN-
ployment is SO per cent of the 1929
level, while average weekly earnings
Of employees are $31.45-the fourth
highest figure for all industries. The
average cost of electricity has steadily
declined from 25 cents per XVIII in
1882 to only 475 cents today. While
the general price level has jumped so
per cent since the bank holiday, cleo
trio rates have come down Is per
cent. Meanwhile. power consumption
has set new all-time records, even
though the Babsonchart is still five
per cent below normal. This increase
is due partly to declining rates but
primarily to lower prices and easier
credit-terms on household appliances
Furthermore, we have scarcely tapped
the potential market for certain ap-
plianceS.
What of the Future?
Take water-heating and cooking, for
example. The average customer of the
publicly-owned Ontario Hydro-Electric
uses LOO kwhs per year, compared
consumers. In both countries the con-
sumption for lights and minor appli-
canoe is about the same-6O0 kwhs.
The Ontario householder, however,
uses 1 100 kwhS for cooking and water
heating against very rare use for that
purpose in the United States. While
rates may be a minor consideration
consideration in the purchase of re-
frigerator or a radio, they are a very
important factor when considering
the purchase of water-heater or elc-
trio range. If rates for these latter
uses are cut, weekly power sales Of
about two billion kwhs could double.
With the politicians, inability to
keep popular resentment against the
dustry at whitehead, security holders
are again taking. The total value of
all utility stocks has more than dou-
bled in a year. Earnings are steadily
picking up despite the 1920 per cent
tax increase since 1892. Most power
stocks are selling around fifteen times
earnings, while the more popular in
dustrials are priced at twenty or more
times current net income. With this